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Stockton council approves five-year ASM Global extension over objections, 4–3
Summary
The Stockton City Council voted 4–3 on Dec. 10 to exercise a five-year extension option with ASM Global for management of five city venues; council members debating timing, vendor threats and continuity before approving the extension and a $500,000 payment to the city fund balance.
The Stockton City Council on Dec. 10 approved a five-year extension option for its management contract with ASM Global, the company that operates multiple city venues, in a 4–3 vote.
The motion to exercise the extension was made by Council member Lehi and seconded by Vice Mayor Kimberly Warmsley. The council passed the extension after extended debate about whether to defer the decision until the incoming council could review the contract. Council members Padilla, Via Pudwa and Mayor Kevin Lincoln voted against the extension.
City staff described the action as an exercise of an option already built into the 2018 agreement rather than a renegotiation. "This is a very complex contract. It oversees five properties in three different industries," Tina McCarty, directing managing director of events and parking, told the council, listing facilities that include the Oak Park Ice Rink, the Banner Island ballpark, the Bob Hope Theater, the arena and the downtown marina. McCarty said using the option is meant to preserve operational continuity and avoid the extensive work of reprocurement and transition.
City Manager Harry Black said stability was a key factor and raised concerns about threats to the vendor. "If this vendor has been threatened," Black said in explanation to the dais, "you are aware. . . . Do you want all of these venues to come tumbling down? Or do we want to stick to being strategic from a business standpoint?"
Opponents argued the decision should wait for the newly seated council. Council member Padilla said she favored giving incoming council members a chance to review the contract before extending it and recommended tabling the matter until after the council transition: "I am just recommending that we table this until the new council is in place," she said.
Staff stated that the extension triggers a $500,000 payment to the city that will be placed into the city's fund balance and later programmed through the budget process; suggested near-term uses include roof and water-infiltration repairs at the Bob Hope Theater and arena maintenance.
The council cast the formal vote after public comment and staff presentations. The extension will be executed as an option under the existing agreement; the council did not approve a renegotiated contract on the dais. City staff said procurement and operational transitions for the venues would be complex if the city chose to replace the operator.
