REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of the City Manager
BY: RUTH F. QUINTO, CPA, Assistant City Manager
Office of the City Manager
JENNIFER A. RUIZ, Deputy City Manager
Office of the City Manager
SUBJECT
Title
Actions Pertaining to the Fresno Convention and Entertainment Center Management Services Contract:
1. Approve a three-year contract with two optional one-year extensions for Management Services of the Fresno Convention and Entertainment Center with VenuWorks of Fresno LLC., for an annual Base Management Fee of $180,000, subject to annual CPI increases not-to-exceed 2.8%, plus a Variable Management Fee of 3% of Net Revenues estimated annually at $137,324, subject to a limited financial performance guarantee, for total annual estimated contract value of $317,324 (Bid File 12600327) (Council District 3)
2. Approve the Third Amendment to the 2020 Convention Center Management Agreement between the City and ASM Global Fresno, LLC., now known as Legends Global Merchandise LLC., extending the contract term to January 31, 2026.
3. Authorize the City Manager, or designee, to Sign the Contracts on Behalf of the City of Fresno (City)
Body
RECOMMENDATION
Staff recommends that Council approve a three-year contract with two optional one-year extensions for Management Services of the Fresno Convention and Entertainment Center with VenuWorks of Fresno LLC., (“VenuWorks”) for an annual Base Management Fee of $180,000, subject to annual CPI increases not-to-exceed 2.8%, plus a Variable Management Fee of 3% of Net Revenues estimated annually at $137,324, subject to a limited financial performance guarantee, for total annual estimated contract value of $317,324; and authorize the City Manager, or designee, to Sign the Contract on Behalf of the City
Staff also recommends that Council approve the Third Amendment to the 2020 Convention Center Management Agreement between the City and ASM Global Fresno, LLC., now known as Legends Global Merchandise LLC., extending the contract term to January 31, 2026.
EXECUTIVE SUMMARY
The City of Fresno owns the Fresno Convention and Entertainment Center (FCEC), which is comprised of four venues. For over 20 years City of Fresno (City) has outsourced the management and operation of the Fresno Convention and Entertainment Center (FCEC). This includes a private management firm overseeing all aspects of the FCEC including operations/engineering, booking/programming, merchandising, ticketing, technology, security, parking, maintenance, sales, marketing, promotions, advertising. Catering and Concessions are under a separate contract with the City as of June 2025. The City’s existing contract for management services of the FCEC expired in June 2025 and was recently extended to December 31, 2025 to allow additional time for the new bidding process.
A Request for Qualifications (RFQ) was published on August 20, 2025 and proposals were due on September 16, 2025. The RFQ communicated the City’s intent was to find a firm that could deliver a broad array event bookings for the facility, while maximizing the event mix to optimize revenues available for reinvestment in the facility.
A committee was formed to review the proposals and conduct interviews with qualified proposers. The committee included staff from the City Manager’s Office, General Services Department, Airports Department, and a Community Member. The RFQ required proposers to have at least five years of experience managing public convention centers or large event venues of similar size and scope as the FCEC.
Four proposals were submitted in response to the RFQ. All proposing companies represented they have the qualifications and experience required by the RFQ. However, the committee unanimously recommended that the contract be awarded to VenuWorks of Fresno LLC., because the committee felt they best demonstrated their willingness to prioritize Fresno. They demonstrated creative and innovative models of doing business in the other venues they manage and provided specific well-researched examples of events they would look to bring to FCEC. The committee concluded that VenuWorks established their knowledge and understanding of Fresno and the FCEC’s four venues and clearly demonstrated their interest in this market and community.
Staff recommends approving the contract with VenuWorks beginning February 1st, 2026, and extending the current contract with ASM Global Fresno, LLC, now known as Legends Global Merchandise LLC, term to January 31, 2026, to allow time for proper notification and transition of staff and ensure consistency for the holiday events booked at the facility.
BACKGROUND
The City of Fresno owns the FCEC, which is comprised of four venues. The Selland Arena is a multi-purpose arena that boasts one of the largest general admission floors in the region, allowing for a capacity of 9,200 guests. The 2,351 seat Saroyan Theatre acts as a venue for the region’s performing arts. Valdez Hall, a versatile 32,000 square foot hall with attached kitchen can seat up to 2,500 guests. And finally, the Exhibit Hall features three separate halls that can be combined to form a 66,000 square foot column free hall, nineteen meeting rooms and a full-service kitchen. Additionally, two parking facilities consisting of a 300-space lot and 1,000 space parking garage are located adjacent to the four venues and are co-managed by the current operator and the City of Fresno.
For over 20 years City of Fresno (City) has outsourced the management and operation of the Fresno Convention and Entertainment Center (FCEC). This includes a private management firm overseeing all aspects of the FCEC including operations/engineering, booking/programming, merchandising, ticketing, technology, security, parking, maintenance, sales, marketing, promotions, and advertising. Catering and Concessions are under a separate contract with the City as of June 2025. During this time, the same business entity, now known as Legends Global, held the contract which was awarded in prior bidding processes. The company went through several mergers/name changes and were formerly known as both SMG and ASM. The City’s existing contract for management services of the FCEC expired in June 2025 and was recently extended to December 31, 2025, to allow additional time for the new bidding process.
A Request for Qualifications (RFQ) was published on August 20, 2025, and proposals were due on September 16, 2025. The RFQ communicated the City’s intent was to find a firm that could deliver a broad array of event bookings for the facility, while maximizing the event mix to optimize revenues available for reinvestment in the facility.
A committee was formed to review the proposals and conduct interviews with qualified proposers. The committee included staff from the City Manager’s Office, General Services Department, Airports Department, and a Community Member. The RFQ required proposers to have at least five years of experience managing public convention centers or large event venues of similar size and scope as the FCEC.
The committee evaluated each proposal by reviewing all material presented. In addition, the proposers provided a presentation to the committee during the interview process. The committee based its evaluations on the following criteria: (i) Qualifications (ii) City Objectives (iii) Demonstrated Experience and Understanding of Local Demographics (iv) Community Expectations (v) Regional Tourism Dynamics (vi) Financial Capacity and Soundness (vii) Timeframe of the Development Response (viii) Capacity to Perform the Proposed Services; and (viiii) Other Factors.
Selection Committee Findings and Recommendations
Four proposals were submitted in response to the RFQ. All proposing companies represented to have the qualifications and experience required by the RFQ. However, the committee unanimously recommended that the contract be awarded to VenuWorks of Fresno LLC., because the committee felt they best demonstrated their willingness to prioritize Fresno. They demonstrated creative and innovative models of doing business in the other venues they manage and provided specific well-researched examples of events they would look to bring to FCEC. The committee concluded that VenuWorks established their knowledge and understanding of Fresno and the FCEC’s four venues and clearly demonstrated their interest in this market and community.
Contract Terms
The commencement date of the contract will be February 1, 2026. The Service Provider has confirmed that it is confident that it will be able to make a quick transition and has experience doing so for other venues. The contract will be for three years and may be extended with mutual written consent of both parties for two additional one-year increments.
The estimated annual contract cost is $317,324 which includes the following:
1. Monthly Base Management Fee of $15,000, annualized at $180,000, subject to annual CPI increases not-to-exceed 2.8%
2. Variable Management Fee of 3% of Net Revenues estimated annually at $137,324, subject to a limited financial performance guarantee
Service Provider Limited Financial Performance Guarantee
Service Provider will share in the financial performance risk of the Facility and provide a limited guarantee for the annual budgeted Gross Operating Profit. Under this arrangement, up to 30% of the Variable Management Fee paid to the Service Provider shall be refunded to FCEC to cover the shortfall in Gross Operating Profit. Should the shortfall in the Gross Operating Profit exceed 30% of the Variable Management Fee, the City shall cover the shortfall.
Staff recommends approving the contract with VenuWorks beginning February 1st, 2026, and extended the current contract with ASM Global Fresno, LLC., now known as Legends Global Merchandise LLC., term to January 31, 2026, to allow time for proper notification and transition of staff and ensure consistency for the holiday events booked at the facility.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not implemented because no local firms responded to the RFP.
FISCAL IMPACT
The recommended contract with VenuWorks of Fresno LLC., is a three-year contractual agreement. The base cost for FY 2026 is estimated to be $155,770, with an estimated annualized cost thereafter of $317,324. Sufficient appropriations are available in the FY 2026 Convention Center adopted budget.
Attachments:
Procurement Evaluation and Committee Report
2025 Management Agreement
Third Amendment to 2020 Management Agreement