REPORT TO THE CITY COUNCIL
December 5, 2019
FROM: WILMA QUAN, City Manager
Mayor and & City Manager's Office
JANE SUMPTER, Assistant City Manager
Mayor and & City Manager's Office
SUBJECT
Title
Approval of the 2019 Management Agreement between the City of Fresno and ASM Global for the management of the Fresno Convention and Entertainment Center
Body
RECOMMENDATION
Staff recommends that the City Council approve the proposed 2019 Management Agreement with ASM Global (ASM) for a period of five years with a contract termination date of December 31, 2025 (the Management Agreement). The Management Agreement also provides for one additional five-year extension upon approval by the City Manager.
EXECUTIVE SUMMARY
ASM currently manages the Fresno Convention and Entertainment Center (FCEC) under the Management Agreement dated December 5, 2013, entered into between the City and SMG. The 2013 Agreement was originally set to expire on June 30, 2019. Through a Request for Qualifications (RFQ) process issued for management services in January 2019, the City received one response from SMG. Staff returned to Council recommending six-month extension of the 2013 Agreement to allow adequate time to conduct negotiations with SMG on a new management agreement. The Council approved the extension and the 2013 Agreement was amended to expire on December 31, 2019. In October 2019, during the time of the six-month extension, SMG and AEG Facilities merged and became ASM. Staff has completed negotiations of a new management agreement with ASM and recommends approval.
BACKGROUND
In January 2019, contemplating the expiration of its current management agreement with SMG for management of the FCEC, the City engaged in a competitive process for management of the facility, with one respondent (SMG) to the City's RFQ. The City and ASM have negotiated the attached proposed 2019 Management Agreement, which takes into account input and feedback from the Co...
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