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Council presses staff over ASM Global contract extension amid questions about timing and transparency

Stockton City Council · January 21, 2025
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Summary

Economic development staff defended recommending an early extension of ASM Global's venue-management agreement while council members pressed for details about the process, alleged political motives and whether any threats to the vendor had been reported. The exchange produced no formal finding of misconduct but renewed calls for clearer procurement and disclosure.

Economic development staff defended a recommendation to extend ASM Global's management agreement for the city's arenas and venues as council members demanded more details about how the option was advanced before the new council took office.

Carrie Wright, the city's director of economic development, told the council the current operator had nearly doubled venue revenue since 2018, procured naming-rights sponsorships and helped secure long-term bookings. Wright said staff recommended exercising an option because the city would otherwise risk higher costs from procurement, lose $500,000 in agreed capital improvements and face difficulty scheduling future shows.

Vice Mayor Jason Lee repeatedly pressed Wright and ASM Global's Jason Perry for documentation and the timeline of staff discussions. Lee told Wright, "If I don't know details or if I don't understand things, I don't know how to govern," and pressed whether staff perceived a "threat" that justified extending the contract 18 months before its expiration.

Wright and other staff including the city attorney and police chief said they had not seen a report of a violent threat to the vendor. Wright characterized the language about a "threat" in internal emails as a reference to "uncertainty" about bookings if the contract lapsed. "The threat, if you want to call it that, in my email'was the threat of uncertainty in terms of the future," she said.

Jason Perry, ASM Global's local representative, sent staff a message of thanks after the extension was placed on the prior council agenda; he wrote that the decision helped settle "political uncertainty" and secure future bookings. Perry told the council he had chosen Stockton because the company saw a market for family and community events and that his firm planned to invest in capital improvements and community programming.

Council members said the exchange highlighted a broader problem: residents want more transparent documentation and clearer performance metrics attached to large vendor agreements. Several members said they plan to ask staff to provide more detailed procurement timelines, copies of emails and the evaluation materials that led to the recommendation.

The city attorney summarized the municipal procurement rules in the discussion and staff noted that option agreements written into original contracts are typically exercised rather than renegotiated. Council members also raised the possible need for clearer written policies about when staff brings a contract extension forward close to an election or council transition.

The conversation concluded without a formal vote on the ASM Global option at this meeting, but it prompted a public pledge from members of the new council to press for greater transparency on major contracts and to request more detailed, auditable records for future proposals.