8.1 - Agreement with Estolano
Advisors for Economic Studies for
the Berryessa Flea Market
August 30, 2022
San Jose City Council Meeting
Office of Economic Development and Cultural Affairs
Nanci Klein, Director
Lori Severino, Assistant to the City Manager
Adolfo Ruelas, Business Development Officer
Background
June 29, 2021: Council approved the Flea Market Southside Rezoning Project, including various provisions intended to support the vendors 2 City Council Direction - June 2021
Vendor Transition Fund
Flea Market Advisory Group
5-acre, on-site Urban Market
Economic/feasibility studies
Support Berryessa
Flea Market vendors
through the
redevelopment of
the site
Vendor outreach and resources
3 Why are we here today?
1. Authorize CMO to negotiate and execute a consultant agreement with Estolano Advisors for $350,000
2. Approve budget actions:
a) Carry over unspent funds in the Flea Market appropriation from last fiscal year to this fiscal year - enabling execution of consultant agreements
b) Allocate $100,000 from the $2.5M reserved for the Flea Market Vendor Transition Fund for outreach and language access services
4 Work to Date
5 Flea Market Budget
Category Amount Notes
Economic studies $350,000 4.7% of budget
Advisory Group set-up $125,000 1.7% of budget
Language access and other outreach costs $125,000 1.7% of budget Flea Market Reserve $2,400,000
Future funds from property owner $4,500,000
TOTAL $7,500,000
6 Economic and Cultural Impact, Market Operations,
and Site Assessment Contract
• RFP posted: April 25 - May 27
• Selected consultant: Estolano Advisors
• Scope:
Economic and Cultural Impact Study
Public Market Operations and Models
Alternative Site Assessment
• Budget: $350,000
7 Advisory Group Contract
• RFP posted: May 31 - June 27
• Selected consultant: Baird + Driskell Community Planning • Scope: Work with stakeholders to draft the Advisory Group Charter; assist with the member selection process; conduct public outreach • Budget: $125,000 with option to extend
8 Language Access Needs
9 Priority Next Steps
Develop the Advisory Group Charter for City
Council approval, select members, and start
meetings
Complete Economic Studies to inform
decisions/opportunities
Continue vendor outreach, engagement, and
support
10 Staff Recommendations
1. Adopt a resolution authorizing the City Manager or designee to negotiate and execute a consultant agreement with Estolano Advisors to conduct economic studies related to the Berryessa Flea Market for a total compensation not-to- exceed $350,000 for an initial term of 12 months with an option to extend the agreement for one additional year under the same terms and conditions.
2. Adopt the following Funding Sources Resolution and Appropriation Ordinance Amendments in the General Fund:
a) Increase the estimate for Beginning Fund Balance by $475,000; b) Increase the Berryessa Flea Market Vendor Business Transition Fund City-Wide Expenses appropriation by $575,000; and
c) Decrease the Berryessa Flea Market Vendor Business Transition Fund Reserve by $100,000.
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