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HomeMy WebLinkAboutWolffhaus - 2026-04-07 f�pN�iiNGt� 2000 Main Street, �F 17;';We Huntington Beach,CA City of Huntington Beach 9264$ _j ��,,,,,-,A Y;: oI ITEM PULLED COUNTY tP�/ File#: 26-324 MEETING DATE: 4/7/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Travis Hopkins, City Manager PREPARED BY: Marissa Sur, Assistant City Manager Subject: Presentation of Professional Services Contract Between the City of Huntington Beach and Wolffhaus for Brand, Media, Press and Digital Ecosystem Comprehensive Audit, Marketing, and Assessment Services for City Council Consideration Statement of Issue: City staff is in receipt of a proposal from Wolffhaus to provide the City with a brand, media, press and digital ecosystem comprehensive audit, marketing, and assessment services. It is presented for City Council consideration. Financial Impact: Procurement of this proposed service has been budgeted and there are sufficient unencumbered appropriated funds available. Recommended Action: Review and consider the attached Professional Services Contract and attachments and direct staff accordingly. If City Council votes to approve the attached Professional Services Contract, authorize the City Manager to execute the Contract. Alternative Action(s): Provide alternative direction to staff. Analysis: Following a 30-day brand and systems audit performed by Wolffhaus, the City received an audit report which is included with this Request for Council Action as Attachment 1. The City also received a proposed scope of work from Wolffhaus to provide the City with brand, media, press and digital ecosystem comprehensive audit, marketing, and assessment services. Staff is bringing forward the information for City Council review and consideration: The proposed Professional Services Contract and Scope of Work, Exhibit A to the proposed Contract, are included as attachments to this Request for Council Action as Attachments 2 and 3. City of Huntington Beach Page 1 of 2 Printed on 4/3/2026 TAKEN powered by LegistarT"' NO ACTION A E1r1 381 • File#: 26-324 MEETING DATE: 4/7/2026 Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Non Applicable -Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. Wolffhaus Huntington Beach Brand & Systems Audit and Report 2. Proposed Professional Services Contract between the City of Huntington Beach and Wolffhaus 3. Proposed Exhibit A, Scope of Work 4. Presentation City of Huntington Beach Page 2 of 2 Printed on 4/3/2026 powered by LegistarTM 382 WOLFFHAUS HUNTINGTON BEACH BRAND & SYSTEMS AUDIT & REPORT Draft V4. I Presented for: Travis Hopkins, City Manager, Huntington Beach, CA 383 An Introduction to Wolffhaus. Wolffhaus is not a traditional agency, and this report was not built through a conventional compliance-only lens. Our work comes from operating daily at the intersection of brand strategy, creative direction, media, business development, public perception, product development, and systems building for major brands, public-facing organizations, celebrities and public figures. Our approach is not conventional, and the economics of a place like Huntington Beach are not conventional. In a tourism city and identity-driven world, value is not created only through contracts and line items. It is also created through perception, visibility, cultural relevance, desirability, and third-party amplification. Those factors influence tourism demand, visitor spending, sponsorship pricing, media value, business attraction, and overall brand strength. When they are ignored simply because they are harder to quantify, cities can miss major economic opportunities hiding in plain sight. While traditional audits often focus on what is formally documented, financially reported, or procedurally required, our work is built around identifying the gaps between what an organization has, what it communicates, what it controls, and what it fails to capture. We are brought into complex environments to diagnose overlooked problems, connect disconnected issues, and find opportunities that others miss. We look for structural weaknesses, hidden inefficiencies, underused assets, outdated systems, fragmented ownership, missed revenue, and reputational blind spots — then work backward to identify what should and can be corrected, built, modernized, or brought under stronger control. Wolffhaus is a hybrid agency with capabilities that extend beyond any single traditional discipline. We do not operate like a narrow agency confined to one category. We work across creative direction, branding, communications, media, manufacturing, experiential, strategy, and operational problem-solving. That cross-functional experience allows us to evaluate situations more holistically and identify patterns that may be invisible when viewed through a single departmental or technical lens. This report reflects that perspective. It is not simply a review of isolated line items or contracts. It is a broader examination of how value is created, protected, lost, and left uncaptured across the City's brand, assets, partnerships, systems, and public-facing infrastructure. 2 384 Huntington Beach Is Operating Without Systems to Protect or Capture the Value of One of the Most Recognizable Coastal Brands in the World Huntington Beach is not suffering from a revenue problem. It is suffering from a systems problem. Over the past several weeks, this detailed audit was conducted examining the City's: • Licensing agreements • Branding and IP controls • Outsourced marketing structures • Revenue-sharing models • Contract oversight • Reporting and audit enforcement processes • City owned assets & IP tied to brand value This report reveals a consistent pattern: The City has repeatedly undervalued its most powerful assets —its brand, its intellectual property, its physical locations, and its leverage. Across multiple departments and agreements, the City: •Accepts below-market royalty rates • Locks into long-term concession structures with weak performance triggers • Relies on self-reported revenue without mandatory deep auditing cycles • Failed to modernize expired intellectual property protections • Outsources high-margin revenue channels This report identifies: • Immediate revenue recovery opportunities • Mid-term contract restructuring pathways • Long-term institutional infrastructure improvements If properly implemented, these corrections could conservatively recover and generate: $2M—$5M+ annually across corrected systems The gap between asset value and revenue capture is substantial. This report exists to highlight that gap. 3 385 Huntington Beach possesses an asset most cities will never have: a globally recognized coastal brand. Rooted in decades of surf heritage, beach culture, recreation, and the classic Southern California lifestyle, this identity has shaped perceptions in media, tourism, and popular culture for generations. The California Dream. This identity carries real economic power. Many residents may not fully recognize the true economic value of this identity. A strong city brand is a form of intellectual property: it influences how people view the destination, drives visitor decisions, supports local commerce, generates tax revenue, creates employment, and contributes to overall community prosperity—all without requiring new taxes or major infrastructure projects. Cities with strong global identities routinely convert that recognition into tourism revenue, media exposure, cultural influence, and long-term economic development. When managed strategically, a city's brand functions much like intellectual property — an asset capable of generating sustained public value. Yet despite possessing one of the most recognizable coastal identities in the world, Huntington Beach currently operates without a coordinated system designed to manage, protect, or monetize that asset. Instead, the economic value associated with the Huntington Beach identity is dispersed across fragmented initiatives, outside organizations, private operators, and media platforms that capture portions of the value without a unified strategy that benefits the city itself. Since Covid, Huntington Beach has received growing national and regional media attention centered on political debates and divisions, rather than the surf culture, suburban beach lifestyle, and community traditions/values that have long defined its worldwide appeal as Surf City USA. While no city can dictate every story written about it, when external narratives become the dominant lens through which a place is viewed, the deeper qualities that residents and visitors cherish can become less visible. Over time, this kind of shift in public perception can carry real implications for the community's image, tourism, local pride, and overall sense of unity. Reputation affects tourism behavior, media partnerships, event attraction, investment decisions, and civic pride. When a city's narrative drifts away from the qualities that created its global appeal, the resulting damage is not merely reputational—it becomes economic. The purpose of this audit is to examine the structural systems behind Huntington Beach's brand, its IP and assets, and identify where value is currently being lost. 4 386 The findings that follow document a series of gaps in how the city manages media, events, cultural programming, communications infrastructure, and brand stewardship. Taken together, these gaps represent a fundamental issue: Huntington Beach possesses extraordinary brand power, but it does not currently operate with the systems required to protect that power or convert it into sustained economic value for the community. TABLE OF CONTENTS 1. Core Audit Concerns 2. Immediate Corrective Opportunities 3. Core Diagnosis 4. Core Recommendations 5. Audit Methodology 6. Core Issue: Brand & Brand Voice 7. Core Issue: Merchandising & Revenue Loss 8. Missed Opportunities & Revenue: Film Commission 9. Mismanaged & Underutilized Asset: Art Center 10. Undervalued: Fourth of July Celebration 11. Overburdened & Reactive 12. Missed Opportunities—Civic Pathways 5 387 1. CORE CONCERNS Huntington Beach is currently operating under increasing fiscal pressure while simultaneously managing several public-facing assets that generate economic activity tied directly to the city's global identity. This audit evaluates whether the City is effectively capturing the value generated by those assets and whether existing systems are structured to protect the City's long-term economic interests. The review was driven.by five core concerns: Loss of Intellectual Property (IP) Control and use as a revenue generator. Huntington Beach possesses one of the most recognizable coastal identities in the world, yet the City lacks systems designed to manage and monetize that identity as a strategic asset. Budget Deficit Pressure The City faces increasing pressure to identify sustainable revenue sources and reduce structural inefficiencies. Vendor Dependency Risk The Huntington Beach brand relies heavily on outside vendors, consultants, or organizations, creating long-term dependency, reduced internal control and inflated expenses. Revenue Leakage Multiple revenue-generating activities tied to tourism, events, media, and licensing operate without systems or oversight that ensure the City captures a proportional financial return. Fragmented Ownership Responsibility for brand-adjacent economic activity is dispersed across departments, partnerships, and outside operators without centralized coordination. 2. IMMEDIATE CORRECTIVE OPPORTUNITIES Huntington Beach already possesses the core asset many cities spend decades trying to build: a globally recognized identity with proven tourism, cultural, and commercial value. The issue is not whether value exists. The issue is whether the City has the systems required to capture, protect, and grow that value. 6 388 This audit identified several opportunities where stronger oversight, modernized agreements, , clearer ownership, and better internal coordination could begin producing measurable returns. These opportunities do not depend on creating a new identity. They depend on managing existing assets with greater structure, accountability, and intent. The most immediate opportunities appear in merchandising and licensing, film and media activity, event and sponsorship monetization, and the reduction of inefficiencies tied to fragmented communications and outdated operating structures. Together, these areas represent the clearest starting points for revenue recovery, cost savings, and long-term institutional improvement. FINANCIAL SNAPSHOT Preliminary analysis indicates that several areas tied to the Huntington Beach brand are severely underperforming due to outdated agreements, fragmented ownership, limited internal systems, and weak revenue capture. Based on currently available records, benchmark comparisons, and observed structural gaps, the following ranges reflect conservative estimates of annual lost value, cost savings opportunity, and longer-term recoverable impact if corrected through modernized systems and agreements. Category Estimated Annual Estimated 5-Year Opportunity , Opportunity Merchandising & Licensing $500,000—$1,000,000+ $3,000,000—$5,000,000+ Film & Media Production $100,000—$300,000+ direct $10,000,000+ in related revenue potential economic activity Events&Sponsorships $500,000+ $3,000,000+ Media &Communications $250,000—$500,000 Multi-year operational savings capacity gains, earned media Total 5-Year Direct+ Indirect Impact Projection: $18,000,000+ in combined direct revenue opportunity, cost savings, and related economic 7 389 activity through improved asset management, stronger revenue capture, and system modernization. These figures are estimates based on the information currently available and are intended to illustrate the scale of the opportunity, not a guaranteed financial outcome. More precise values would require deeper financial review, contract analysis, vendor reporting validation, and implementation-stage analysis. 3. CORE DIAGNOSIS The central issue identified in this audit is not a lack of opportunity. Huntington Beach possesses valuable economic assets. What it lacks are the systems required to manage them effectively. The current structure produces five recurring conditions: Fragmented Ownership Economic drivers connected to the Huntington Beach brand operate across multiple departments and external partnerships without a unified management framework. Under-Captured Revenue Tourism activity, media exposure, events, sponsorships, and licensing opportunities generate economic value that is not consistently converted into direct revenue for the City. Limited Internal Control Over Public-Facing Brand Representation External organizations and media outlets frequently shape the public perception surrounding Huntington Beach. The City does not currently appear to operate with the level of media infrastructure, production consistency, or distribution reach needed to regularly showcase the full breadth of community activity, assets, and positive developments taking place across Huntington Beach. No Integrated Systems Huntington Beach currently lacks an integrated framework that connects tourism, media, film production, events, licensing, and cultural programming into a coordinated economic system. Overburdened &Short Handed Staff Huntington Beach currently operates with a severely limited number of staff in the creative department. In many organizations, the strategic value of creative leadership, media 8 390 infrastructure, and relationship-driven brand development is often underestimated, particularly when those functions are not viewed as direct contributors to revenue generation. This report also makes clear that many City staff are operating under real strain. Too much is being carried by too few people, often without the systems, staffing structure, internal coordination, or specialized support required to manage a city with assets of this scale and public visibility. In several areas, the City does not simply appear overextended. It appears structurally underbuilt. Certain roles commonly found in modern cities — including centralized creative leadership, media support, content development, and coordinated brand and communications personnel — appear limited, fragmented, or absent altogether. As a result, existing staff are left carrying responsibilities that extend well beyond what curreht structures are designed to support. Any recommendations in this report are intended not to add to that burden, but to reduce it. By improving revenue capture, modernizing workflows, and building durable internal systems, the City can create new capacity rather than continuing to overextend the teams already in place. Over time, the funding generated through these corrections could help support expanded staffing, internship and workforce pipelines, stronger creative and media infrastructure, and the tools needed to make City operations more effective and sustainable. 4. CORE RECOMMENDATIONS The City does not need to create new identity assets. It already possesses them. What is required is the implementation of systems that allow Huntington Beach to own, manage, and benefit from the economic value these assets produce. The recommended framework focuses on five priorities: 1. Build Internal Ownership Establish internal systems responsible for managing the Huntington Beach brand ecosystem rather than relying on fragmented external control. 2. Standardize Systems Create coordinated operational structures connecting tourism, media, events, film production, sponsorships, and licensing. 3. Capture Intellectual Property Treat the Huntington Beach identity as a strategic municipal asset with defined licensing, merchandising, and partnership frameworks. 9 391 4. Train and Transfer Institutional Knowledge Develop internal city capabilities related to brand IP that reduce reliance on outside consultants and vendors. 5. Eliminate Long-Term Dependency Design systems that allow Huntington Beach to operate more independently rather than relying on external organizations to manage core economic drivers. If implemented, these structural changes would allow Huntington Beach to transition from a city that just hosts economic activity tied to its identity to a city that actively manages and captures the value that identity produces. As these programs grow, they can generate enough revenue to expand internal capacity and reduce pressure on the teams currently carrying these responsibilities. 5. AUDIT METHODOLOGY The findings in this report were developed through a multi-step review process designed to evaluate both the operational structure and financial implications of programs tied to the Huntington Beach brand ecosystem. Methods used during this audit include: Public Records Review Examination of publicly available agreements, reports, contracts, and program documentation related to tourism, events, media, and other city-affiliated activities. Department Interviews Discussions with relevant city personnel and stakeholders involved in programs connected to tourism, communications, cultural programming, and economic activity tied to Huntington Beach's public identity. Revenue Analysis Review of available financial information to identify potential gaps between economic activity occurring within the Huntington Beach ecosystem and the direct revenue captured by the City. Benchmark City Comparison Reference to structural models used by comparable municipalities to manage tourism, media, film production, events, and brand-related economic assets. Comparative Fee Structures Evaluation of how Huntington Beach's fees, agreements, and revenue structures compare to similar cities and programs. Workflow Observation Assessment of operational workflows and departmental coordination to identify fragmentation, redundancy, or system gaps. Limitations of Available Public Data 10 392 This report relies in part on publicly available records,reported figures,interviews,and benchmark comparisons.Because complete financial,contractual,and operational data was not available in all areas at the time of review,certain findings and projections are best understood as conservative estimates based on the information currently accessible,and may require further validation through deeper internal review. THE HUNTINGTON BEACH BRAND ECOSYSTEM The Huntington Beach brand ecosystem functions best when film, tourism, events, licensing, merchandising, media, sponsorship, cultural programming, and city-owned venues are treated as connected parts of one larger system rather than separate activities operating in silos. Each area feeds the others. Film and media drive attention. Tourism converts attention into visits, spending, and broader recognition. Events create moments that generate attendance, press, sponsorship value, and merchandising opportunities. Licensing and merchandising capture revenue from the City's identity and extend its presence into everyday life. Cultural programming strengthens authenticity, community pride, and local participation. City-owned venues and public assets serve as the stages where these experiences are activated. When aligned under a unified strategy, these categories build momentum for one another, increasing public value, strengthening the City's identity, and creating more sustainable long-term economic return. Includes: • Film • Tourism • Events • Licensing • Merchandising • Media • Sponsorship • Cultural programming • City owned venues &Assets 6. CORE ISSUE: BRAND & BRAND VOICE 11 393 1. Discovery Huntington Beach possesses one of the strongest municipal identities in California. The pier, surf culture, major events, coastline, and "Surf City" association generate significant national and international recognition. Third-party voices — including national media, influencers, event promoters, and independent organizations—play an outsized role in shaping public perception of the brand. However, brand management remains fragmented across tourism promotion, city communications, department-level outreach, event marketing, and media production. There is no centralized authority responsible for integrating these efforts into a unified, strategic system or effectively managing third-party portrayals. Upon interviews with department heads, current creative and public information staff is severely overburdened, limiting capacity for proactive, high-quality content production and brand stewardship. Additionally, media storage does not currently meet modern archive standards and lacks a digital asset management (DAM) system, hindering ease of access for press, internal teams, partners, and content repurposing. The City also lacks a robust network of strong, positive third-party voices in the influencer and creator economy. There are few sustained, authentic relationships with lifestyle, surf, family-travel, or coastal influencers who could consistently amplify the welcoming, fun Surf City culture to wider audiences. What exists: • Miles of beaches, 350+ acres of parks, hundreds of events annually • Major events drawing hundreds of thousands of visitors • A thriving business community and restaurant scene • Cultural institutions and historic landmarks • Daily moments of community pride, achievement, and beauty What doesn't exist: • A unified creative and communication vision across departments • A professional media archive and asset management system • Modern video production that competes with what residents see elsewhere • A content strategy that proactively tells the city's story • Systems to capture, organize, and distribute high-quality media • Coordination between tourism, parks, business services, and city communications • A YouTube channel or social media presence with large meaningful impact 2. Current Structure Tourism marketing is primarily executed through an external nonprofit entity focused on hotel performance, while City communications operate separately with limited scope, infrastructure, and distribution reach. Across departments, content is produced independently without a shared brand framework, unified messaging architecture, or centralized asset system. The result is a fragmented public-facing identity where major parts of the Huntington Beach story are being told in silos rather than through a coordinated citywide strategy. 12 394 In recent years, there appears to be limited collaboration and few high-impact joint initiatives between the current DMO (Destination Marketing Organization - Visit Huntington Beach) and the City that meaningfully advance broader brand objectives beyond core hotel and tourism metrics. This structural separation reduces the City's ability to align campaigns, amplify key moments, and fully leverage the Surf City identity across tourism, culture, community, and civic pride. Without greater unification, Huntington Beach risks continuing to operate with disconnected voices, duplicated effort, and underleveraged brand assets. For that reason, the City must take a more active role in building alignment across stakeholders and owning the systems that shape its authentic voice, so the welcoming, fun, family-friendly coastal culture of Huntington Beach is consistently represented, reinforced, and protected. 3. Financial Data (Indirect Impact) While brand infrastructure does not generate direct revenue line-items, it materially impacts tourism spend, event participation, business attraction, sponsorship pricing power, merchandising performance, and film location desirability. Modern destination marketing studies consistently show that perception and digital visibility heavily influence visitor spending patterns, length of stay, and willingness to purchase branded products. The power,of third-party voices amplifies both positive and negative messaging, directly affecting economic outcomes. 4. Benchmark Comparison Comparable cities with strong tourism economies maintain centralized brand governance, in-house creative direction or integrated oversight, unified digital strategies, proactive media outreach, and coordinated tourism + city messaging. These systems allow them to better harness third-party voices while protecting core brand value and aligning public perception with economic goals. Huntington Beach currently operates without this level of integration, leaving its brand identity vulnerable to external forces. 5. Structural Risk The lack of centralized brand oversight creates several critical vulnerabilities: • Loss of control over brand identity during periods of negative attention, particularly as national media sometimes frames Huntington Beach in ways that overshadow its actual culture • Negative or controversy-focused third-party coverage can amplify narrow or incomplete portrayals of the City, reducing visibility for the broader coastal identity, family appeal, and community strengths that support tourism, events, and civic pride. • Limited positive amplification from influencers and creators due to few established, mutually beneficial relationships • Missed amplification of positive community developments • Reduced tourism yield per visitor 13 395 • Weak sponsorship leverage • Inefficient cross-department communication • Underperformance in digital engagement • Severe overburdening of creative staff, constraining proactive storytelling and response capabilities • Inadequate modern media archiving and access, slowing content reuse, press support, and overall efficiency • Businesses and investors deterred by persistent negative brand narrative, perceiving higher risk or reputational concerns when deciding where to open, expand, or host events—despite the City's world-class location and infrastructure • Potential long-term economic chilling effect, as negative or polarized media coverage discourages corporate partnerships, film productions, retail development, and tourism-related investment that would otherwise flow to a strong, positive brand like Huntington Beach. For a city with Huntington Beach's level of public visibility, fragmented communications and brand systems create avoidable risk. In a fast-moving media environment, perception can shift quickly, and without coordinated infrastructure the City is less equipped to reinforce the identity that supports tourism, investment, partnerships, and long-term economic value. 6. Revenue Gap Brand fragmentation, weak control over brand identity, and heavy reliance on third-party voices contribute to measurable economic losses. Without a more professional and coordinated media, content, and storytelling strategy, the City is unlikely to convert the full strength of its identity into its highest potential economic return across tourism, sponsorships, film activity, merchandising, and related categories. This results in lower per-visitor spending, under-monetized opportunities in merchandising and licensing, reduced film and event sponsorship pricing power, and missed ancillary revenue from cultural assets and branded experiences and fewer new businesses opening in the city. Conservative annual lost opportunity due to ineffective brand and media execution: $1.1 million — $2.25 million in direct, quantifiable revenue (merchandising, film, parade sponsorships, Art Center commissions, etc.) —with the true economic and community impact far larger and largely immeasurable, as it compounds through reduced tourism yield, deterred business investment, diminished national perception, and lost cultural relevance that erodes the Surf City brand's long-term value every year we fail to act. Brand infrastructure and content quality directly influence revenue conversion rates across multiple categories. When third parties dominate the voice and the City lacks professional, engaging media capabilities, it captures significantly less value than the underlying asset justifies. 7. Corrective Path 14 396 Immediate: • Establish centralized brand oversight authority with clear responsibility for brand identity strategy and third-party engagement • Conduct full communication infrastructure audit • Define unified messaging architecture that protects core Surf City identity Mid-Term: • Implement modern media archive and digital asset management (DAM) system for secure, searchable storage and easy access • Create collaborative cross-department creative content calendar&execution • Align tourism and city messaging through structured coordination, including proactive media response protocols • Launch staff training program focused on effective, engaging content creation, digital storytelling, video production, and brand-aligned messaging • Develop internship structure to support overburdened creative teams, provide fresh capacity, and build talent pipeline • Initiate targeted influencer and creator outreach program to build authentic, positive third-party relationships and opportunities for collaboration Long-Term: • Develop in-house creative direction capacity with professional media planning and execution • Build proactive press engagement framework and third-party amplification strategy • Establish performance metrics tied to economic impact, brand sentiment, content engagement rates, and revenue capture • Leverage current brand assets (e.g., merchandising, licensing, film, events) to generate additional revenue streams, directly bolstering staffing and resources in communications and creative departments Additional Context: DMO Reliance &Scope Over the past decade, Visit Huntington Beach (VHB) has gradually positioned itself as the default point of contact for much of the City's broader destination brand, marketing narrative, visitor experience strategy, and creative initiatives —responsibilities that extend well beyond its core mandate of lodging-focused promotion. VHB's mission statements, annual reports, and public materials consistently claim ownership over "inspirational destination marketing," "brand management," and "economic vitality" and even public relations and crisis communication. Based on our research and interviews, the City appears to have relied heavily on VHB for event amplification, media coordination, content creation, and broader brand-related functions, areas outside the scope,of the city's arrangement and whose board composition appears to remain heavily weighted toward hotel industry interests. 15 397 This drift has created an unintended over-reliance. People and partners now automatically turn to VHB when they want to do anything creative or marketing-related with the City. While this may have seemed convenient, or even standard based on how some DMO's operate, VHB's performance in visitor marketing and broader destination promotion has been largely standard rather than standout, with recent campaigns for hotels and events often feeling outdated and out of touch with current industry trends. More importantly, the City has no proactive relationships with key promoters, event producers, film commissioners, and other partners of its own, because those connections have quietly shifted to VHB over the past several years — an organization not technically responsible or structured to manage them for the city. The result is fragmented strategy, weaker accountability, and missed opportunities across the board. The Surf City brand deserves clearer governance, stronger city-led direction, and balanced stakeholder input rather than defaulting to a model that has expanded beyond its original scope. Suggested Solutions If the City chooses to continue outsourcing some of these functions, several structural improvements could restore alignment and accountability: • Stronger, clearly defined ownership roles and lines of responsibility in the management agreement. • A more collaborative board structure with meaningful council oversight and regular reporting requirements. • Inclusion of internal city stakeholders on the board to ensure broader community and departmental representation. • Adoption of an operational model closer to Visit Newport Beach's, where the DMO is responsible for the larger marketing of the entire city — not just lodging — through a formal city contract with integrated public-private governance, shared priorities, direct accountability to the full city organization, and built-in collaboration across stakeholders. This structure could also ease burdens and responsibility on internal city staff but comes with its own set of risks as well. Structure of the Visit Newport Beach Model and Potential Benefits Visit Newport Beach operates as a city-contracted DMO within the broader Newport Beach & Company framework, funded primarily through TOT but governed under a formal agreement with the City of Newport Beach. This structure gives the DMO clear responsibility for overall city-wide destination marketing, brand management, visitor experience development, event promotion, and economic vitality initiatives — not just hotel performance. Governance includes a TBID board, an executive committee, and direct city oversight through ordinances and shared priorities, ensuring collaboration with the full range of stakeholders (residents, businesses, cultural organizations, and city departments) rather than a narrow lodging focus. 16 398 • For Huntington Beach, adopting a similar model would allow the DMO to focus on comprehensive brand marketing and city-wide destination promotion with strong built-in accountability and stakeholder collaboration. This structure would clearly define roles, maintain proactive city relationships with promoters and partners, and align marketing efforts more closely with the entire community's needs — delivering better results for the Surf City brand while keeping governance transparent and balanced. Additional Context: Recent Press and Media Patterns In recent yealls, Huntington Beach has received a growing volume of national and regional media attention centered on political conflict and controversy rather than the broader coastal lifestyle, surf heritage, community traditions, and quality of life that have long shaped its public identity. While no city can control every headline, sustained imbalance in external coverage can distort public perception over time and reduce visibility for the attributes that have historically driven tourism, civic pride, and broader brand appeal. In a media environment where controversy often receives disproportionate attention, cities with strong public identities must work more intentionally to ensure their broader strengths remain visible. For Huntington Beach, that means a more proactive and coordinated approach to communications, third-party engagement, and brand storytelling so that public perception is not shaped disproportionately by isolated controversies. As part of this audit, a representative sample of more than 100 relevant news articles and reports from Google News, major California outlets, and local sources was reviewed to better understand the dominant themes shaping public perception of Huntington Beach. No independent third-party media monitoring study specific to Huntington Beach was identified during this review. Based on this sample, the majority of higher-visibility coverage appeared to be political or controversy-oriented, while positive or lifestyle-driven coverage was present but materially less prominent in overall volume and reach. • Political coverage: Approximately 75-85% of all press mentions are political or controversy-focused. • Negative or critical tone: Approximately 60-70% of stories carry a negative or critical tone. Even neutral local stories are often overshadowed by controversy. Positive or neutral coverage makes up only 20-30% and rarely goes national. Positive coverage relating to Huntington Beach's businesses, beach culture, community events, and everyday quality of life exists, but appears materially less prominent than controversy-driven coverage in overall visibility and distribution. How This Affects the City Brand 17 399 This heavy political tilt has shifted national and regional perception of Huntington Beach away from "Surf City USA" — the fun, welcoming, family-friendly coastal icon — and toward a polarized political flashpoint. When controversy becomes the dominant frame through which a city is seen, it can overshadow the qualities that historically attracted visitors, businesses, families, event partners, and broader cultural interest. The constant focus on controversy creates a feedback loop: it drives more political coverage while crowding out stories about life here in HB and community strengths that actually reflect the vast majority of residents' experience. The result is diminished tourism appeal, weaker third-party advocacy, and missed opportunities to showcase the full value of the Huntington Beach identity. What We Need Moving Forward The City would benefit from a more intentional and coordinated communications strategy that increases the visibility of authentic, positive, and community-centered stories. The goal is not to manufacture perception, but to better represent the full reality of Huntington Beach by amplifying the people, places, traditions, and everyday experiences that continue to define its long-term appeal. Stronger coordination, better media infrastructure, and more proactive third-party engagement would help restore balance and improve the City's ability to shape how its identity is understood. 7. CORE ISSUE: MERCHANDISING & REVENUE LOSS 1. Discovery Huntington Beach possesses one of the most powerful and valuable municipal brands in the world through its pier, surf culture, major events, coastline, and decades of national and international recognition. The global surfing apparel and accessories market is currently valued at $10.37 billion and is projected to exceed $15 billion by 2033. Individual major surf brands generate hundreds of millions in annual revenue. Quiksilver, Hurley, Billabong, Volcom, Roxy, Ripcurl, RVCA, and Reef are the major players in the market and Huntington Beach should rightfully have a seat at that table. Huntington Beach captures virtually none of the economic value its name and reputation should generate through retail sales, licensing and partnerships. We have the visibility, authenticity, heritage, and audience to claim a meaningful share, yet the category remains almost entirely untapped. By way of scale only, even a very small share of a multi-billion-dollar surf and coastal lifestyle market would translate into substantial retail volume. For example, 0.25% of that broader market would equate to approximately $27.5 million in gross annual retail sales. That figure is not presented as a short-term municipal revenue 18 400 • forecast, but as an illustration of how large the surrounding market is relative to the City's current level of participation. 2. Current Structure Merchandising and licensing are currently locked into a single outdated third-party agreement tied to the Surf City Store on the Pier, featuring a severely undervalued 5% royalty rate on branded merchandise, well below common industry standards, extremely low pier lease rent of $950 per month for a high-traffic prime location, no minimum royalty guarantees, and limited audit and verification protections. The referenced servicemark ("Surf City, Huntington Beach") is dead/cancelled (USPTO Reg. No. 74/350/258, lapsed 2005), weakening enforceability. The website for direct consumer orders is hard to find, has a very limited selection, little to no active marketing or promotion, and product designs that have remained largely stagnant for years. Seasonal collections are not iregularly introduced, and the overall program appears commercially underdeveloped and largely invisible relative to the millions of visitors who come to Huntington Beach each year. Beyond the pier store, our research indicates widespread sales of Huntington Beach-branded apparel and products across the city, from liquor stores and small shops to major retail outlets, some openly selling HB-branded apparel with no licensing agreement and zero revenue return to the City. All of this unauthorized activity likely accounts for millions of dollars in annual sales that are completely lost to the city. 3. Financial Data (Indirect Impact) The current program generates very limited direct revenue for the City relative to the strength of the Huntington Beach brand. Financial evidence from 2024-2025 Surf City Store reports shows total reported sales of$1,515,215.94, with the City receiving only $75,760.81 in royalties under the current 5% structure. Average monthly sales were approximately$63,134, while the average monthly return to the City was approximately$3,157. This gap is significant because the value behind Huntington Beach-branded merchandise was built over decades through the identity, reputation, and cultural contributions of the community itself. Yet under the current structure, much of that value does not appear to be returning to the City in a meaningful way. From July through December 2025, more than $400,000 in reported sales appears,to have generated only approximately$18,000 in revenue to the City. 4. Benchmark Comparison Other major coastal cities manage their brands far more aggressively. The iconic "I NY" is reported to generate $30 million annually in revenue. Comparable coastal destinations with active, professionally managed licensing programs (including Santa Monica, San Diego, Los Angeles, and Miami Beach) generate $1 million to over$5 million per year in direct licensing and merchandise revenue through modern e-commerce platforms, regularly updated product lines, aggressive digital marketing, and reasonable royalty structures. 19 401 These cities capture a meaningful share through official branded merchandise. Huntington Beach, with stronger global surf and coastal recognition than most peers, receives virtually nothing in comparison. 5. Structural Risk The current third-party deal — combined with rampant unlicensed sales — is a raw, one-sided arrangement that is actively costing taxpayers hundreds of thousands (likely millions) of dollars every single year: • A 5% royalty rate that hands the vast majority of profits to outside operators while the City gets almost nothing • Revenue that belongs to the generations of Huntington Beach residents who built this brand is instead being pocketed by third parties • Complete absence of any marketing or promotion — consumers who want official Huntington Beach merchandise literally cannot find it • The absence of an official website, online store, or meaningful direct-to-consumer pathway is a major structural gap for a destination brand of this caliber. • Weak audit rights, weak oversight, limited minimum protections, and reliance on outside reporting create avoidable exposure and potential for underreporting where the City should be demanding greater transparency and accountability. • Severely undermarket pier space lease-A prime high traffic retail location appears to be operating under terms that do not reflect the value of the site or the traffic associated with it. • Product execution appears stagnant, with limited evidence of the kind of ongoing design development, seasonal refreshes, and quality control expected in the $10+ billion surf market • Widespread unlicensed sales at 50+ locations across the city, including major retailers here in the city, generating large amounts in unauthorized (and in some cases un-taxed) revenue with zero return to residents • Missed retail partnerships, sponsorships, and brand extensions that other major destination cities are actively cashing in on That combination of weak economics, weak oversight, weak enforcement, and weak modern retail infrastructure does not reflect the standard that should apply to an asset of this magnitude. 6. Revenue Gap With $580 million (per VHB) in annual direct visitor spending, shopping and souvenirs typically account for 12-18% — representing a massive revenue opportunity. A professionally managed merchandising program should capture a meaningful share through official branded products. Instead, due to the outdated third-party agreement, complete lack of marketing, absence of any substantial online sales platform, stagnant product designs, rock-bottom terms, and the 20 402 explosion of unlicensed sales across multiple locations, the City is failing to capture even a fraction of this opportunity. Conservative annual lost opportunity due to ineffective merchandising and licensing: $500,000 — $1 million (with potential for$750,000 — $2 million net annually under internalized operations on $1 M+ sales, plus millions more once unlicensed sales are brought under control and the program is built and structured. When outsiders control licensing under terrible terms and the City allows widespread unauthorized sales, it captures a tiny fraction of the value its brand actually justifies —value built by local generations and now being handed away for almost nothing. 7. Corrective Path Existing unlicensed sales should not be treated as a reason to avoid correction. They should be treated as proof that real demand exists and that the City has waited too long to bring this category under proper control. Rather than leading with immediate enforcement, the City should offer a short structured transition period for businesses that currently sell unlicensed HB merchandise and want to begin selling authentic merchandise through legitimate channels, including wholesale pricing, collaboration opportunities, and access to stronger official product collections. This approach allows the City to reestablish control, capture appropriate value, and bring willing retailers into a better system moving forward. Immediate • Establish clear centralized authority for merchandising and licensing strategy • Conduct a full audit of the existing third-party structure, including royalty terms, lease economics, sales history, audit rights. • Finalize current trademark and IP protection work and define stronger product and licensing standards • Identify the full scope of unauthorized, unlicensed, or weakly controlled retail activity tied to Huntington Beach branding Mid-Term • Renegotiate, restructure, or replace the current underperforming arrangement where legally and operationally appropriate • Launch an official City-controlled or City-governed e-commerce platform and direct-to-consumer sales system • Develop stronger product lines aligned with current surf, coastal, and lifestyle demand • Implement active marketing, authentication, and retail partnership strategies • Establish a practical enforcement pathway for unauthorized or uncompensated commercial use of City brand assets Long-Term 21 403 • Build internal licensing, merchandising:and creative capability sufficient to manage the category professionally • Implement royalty and partnership structures with meaningful accountability, audit rights, and performance standards • Create measurable performance benchmarks tied to direct revenue, sales growth, distribution reach, and brand protection • Reinvest a portion of new merchandising revenue into the communications, creative, and operational infrastructure required to sustain and protect the broader Huntington Beach brand Key U.S. Tourism Expenditure Data (Shopping/Souvenirs): • Overseas Tourists (2024): 18% of total spending, amounting to about$325 per trip. • North American Tourists (2024): 12.8% of total spending, about$152 per trip. • General Travelers: 25% of travelers list purchasing souvenirs as a financial priority. • Spending Amount: Vacationers often spend between $50 and $200+ on merchandise and gifts per trip. Context on Spending Habits: • Top Categories: Shopping is consistently ranked behind accommodation (30-35%) and food/beverage (20-21%). • Buyer Behavior: Roughly 65% of Americans bring back souvenirs, with 44% gifting to family and 39%for themselves. Progress Already Underway: Strengthening Trademark and IP Protections At the forefront of Huntington Beach's globally recognized coastal identity are its logos and core visual marks—the instantly recognizable symbols that represent the city in merchandise, events, partnerships, and media worldwide. For years, our main city logo has remained unprotected or inadequately registered, leaving it vulnerable to unauthorized use, dilution, and lost licensing opportunities. This long standing gap has allowed value to slip away quietly, even as the city's brand continues to carry significant cultural and economic weight. During the audit, we conducted a deep review of all of the city's trademarks and intellectual property. We found that the city's original iconic HB logo mark was not properly registered or protected. Staff explained that past attempts years ago were abandoned after being told registration might not be possible due to widespread use by others. The matter was left unresolved. We took a fresh approach: identified the specific lapses (expired filings, incomplete applications, missed opportunities), the original curation process, and worked directly with the city's legal and 22 404 IP team. We gathered documentation, addressed the issues, and successfully restarted the protection process. Steps are now actively in progress to secure stronger registrations for these core brand elements—helping prevent unauthorized use, reduce dilution, and enable better enforcement and monetization. This is a clear example of what focused effort can accomplish: uncovering long-standing gaps and closing them through internal collaboration—no major obstacles,just persistence. This early progress shows that many audit findings are fixable with similar diligence. Securing foundational IP like logos is a critical first step toward reclaiming control over the city's brand value and stopping leakage in licensing and merchandising. Building on this momentum will help shift from a reactive to a proactive approach, delivering lasting benefits for the community. Additional opportunities: Beyond just apparel: The City is overlooking an easy, low-overhead revenue channel inside facilities it already owns and operates. The Art Center, libraries, and other public-facing spaces should function not just as civic amenities, but as retail touchpoints for Huntington Beach's brand and creative identity. A kiosk-based merchandising system would allow visitors to purchase City-branded goods, art prints, photography, and other curated products onsite and have them shipped directly to their homes. That approach dramatically reduces risk,storage, staffing, and operational friction while expanding what the City can monetize. Huntington Beach has no shortage of talented local artists and world-class surf and lifestyle photographers whose work could be featured through this system. Under a revenue-share model, the City would participate in each sale while artists retain the balance, creating a program that supports both municipal revenue and the local creative economy. With minimal setup and management costs, these kiosks could become a meaningful tourism revenue tool while reinforcing the culture and visual identity that make Huntington Beach valuable in the first place. 8. MISSED OPPORTUNITIES & REVENUE: FILM COMMISSION 1. Discovery 23 405 Huntington Beach stands out as one of Southern California's most versatile and underutilized filming destinations. Its iconic pier, expansive beaches, modern Civic Center, Equestrian Center, and Sports Complex, Pacific City, and variety of community housing styles give production companies a rare mix of coastal beauty and diverse inland locations that few competitors can match. Beyond direct revenue, successful film and television production delivers powerful cultural relevance, high-value earned media, authentic third-party voice amplification, and increased off-season tourism that can extend visitor stays and spending throughout the year. 2. Current Structure Film permitting is currently managed through a basic, decentralized process with modest fees and limited dedicated support that producers are used to. The program lacks proactive marketing, a streamlined one-stop shop experience, and a professional location library. While basic beach and pier permitting exists, the City currently does not actively promote its full range of unique assets or position itself as a competitive filming destination near Los Angeles. 3. Financial Data (Indirect Impact) Direct permit and location fees represent the most tangible and reliable form of revenue from film activity. Currently, these direct returns remain modest. At the same time, the broader economic impact of film production is enormous and can reach hundreds of millions of dollars for cities that actively pursue it. Industry data shows the average location shoot day generates $50,000-$670,000 in local spending and supports hundreds of jobs, while major productions can exceed $1.3 million per day in direct local economic activity. These dollars flow into hotels, restaurants, transportation, retail, and local suppliers — especially valuable during off-season months — while also creating lasting cultural relevance, earned media exposure, and positive third-party amplification that drives future tourism and visitation. 4. Benchmark Comparison Several peer cities have built professional film commissions that generate both meaningful direct revenue and massive economic impact. San Francisco's Film SF collected $127,000 in direct permit fees (This does not include staffing, or location use or any other fees) in FY 2024-25 while driving $17.5 million in estimated direct production spending. Fort Worth's Film Commission has generated over$800 million in cumulative economic impact since 2016 through focused outreach. Nashville's broader arts, culture, and creativity economy has been reported by Metro planning materials at approximately $13 billion annually, and a single major production — '9-1-1: Nashville' —is expected to generate more than $50 million in local economic impact. Comparable coastal destinations like Long Beach, Los Angeles, and Miami Beach maintain dedicated offices with competitive fees, active marketing, and 24 406 streamlined processes that attract productions and deliver both direct fees and hundreds of millions in broader economic benefits. 5. Structural Gaps The current structure presents several opportunities for improvement that would help the City fully realize its potential: • Absence of a dedicated Film Commission or centralized one-stop permitting office • Limited relationships, marketing and outreach to productions and location scouts • Under-promotion of the City's diverse non-beach assets (Civic Center, Equestrian Center, Pacific City, Sports Complex, etc) • Multi-department coordination that can slow response times (including the current requirement that applicants obtain a separate business license before even submitting a film permit application—a step that is not typical in peer cities and production process) • No proactive strategy to highlight speed, efficiency, and location diversity that could undercut larger jurisdictions These gaps mean Huntington Beach is not yet fully capitalizing on productions that could deliver direct revenue, economic value and valuable earned media exposure. 6. Revenue Gap Huntington Beach has the locations and proximity to Los Angeles to compete effectively — particularly by offering faster permitting turnaround and greater location diversity than many parts of LA. Professional programs in comparable destinations routinely generate $125,000 to several million in annual direct revenue, while driving tens to hundreds of millions in broader economic impact (e.g., Fort Worth's —$800M cumulative since 2016, San Francisco's $17.5M direct spending in one year). Currently, due to the absence of a dedicated Film Commission, limited marketing, outdated processes, and lack of streamlined permitting, the City is not capturing its full potential in either direct revenue or indirect benefits, or economic impact. Conservative annual lost opportunity due to under-developed film permitting: $100,000— $1 million + in direct revenue (plus multi-million-dollar economic impact, earned media value, and off-season tourism lift once the program scales). 7. Corrective Path Immediate: • Establish a centralized Film Commission with clear responsibility for permitting, marketing, and revenue strategy • Conduct a full review of current fees, processes, and past production inquiries • Develop streamlined one-stop permitting guidelines 25 407 Mid-Term: • Launch a dedicated Film Commission with fast-track permitting designed to undercut Los Angeles on speed and ease (target 48-72 hour turnaround) • Create a professional location library and comprehensive production resource book for producers, including local workforce talent, hotels, parking, and other production resources • Update fees to competitive levels with improved tracking • Initiate active outreach to location managers and production companies (leveraging current staff to grow the program with minimal additional stress until revenue supports dedicated staffing) Long-Term: • Build professional in-house location management and creative partnership capabilities • Establish a high-performance permitting framework focused on both direct revenue and earned media outcomes • Set measurable goals tied to permit revenue, production days, and off-season tourism impact • Direct new film revenue into communications, creative departments, and public asset maintenance Source Data • City of Huntington Beach Film,Video and Still Photography Permit Fees(2024) • Film SF Annual Impact Report FY 2024-25($127,000 permit fees,$17.5M direct spending) • California Production Coalition:average location shoot adds$670,000/day and 1,500 jobs • Fort Worth Film Commission economic impact reports(2016-2025 data showing nearly$800 million cumulative impact,recent annual—$1 B) • Tennessee Entertainment Commission 2025 Economic Impact Report($8.2 billion in entertainment production clusters for 2024,including film/TV) • FilmLA&peer city reports(2024-2025) • Film Santa Monica,Long Beach,Miami Beach,Fort Worth,and Nashville Film Commission data(public documents,2025-2026) • UNWTO and industry analyses on direct film revenue vs.earned media,tourism,and economic multipliers • Internal City tracking of production activity(2023-2025) 9. MISMANAGED & UNDERUTILIZED ASSET: ART CENTER 1. Discovery Huntington Beach owns and operates a dedicated Art Center in a high-visibility location, supported by decades of community investment, public support, and taxpayer funding. On paper, it offers classes, camps, events, exhibitions, and artist programs that should contribute to the City's creative life and welcoming coastal identity. In practice, however, the Center appears to remain relatively unknown not only regionally and nationally, but within Huntington Beach itself. Public awareness, foot traffic, participation, and overall utilization appear limited. Much of the programming feels more insular than open and inviting, and does not clearly reinforce Huntington Beach's identity as a fun, welcoming, family-friendly coastal destination. 26 408 The issue is not that the Art Center lacks value opportunity. The issue is that much of that value is not fully reaching the community. There appears to be limited general awareness among residents about what is happening there, who it serves, and why it matters. Its programs, exhibitions, and activities do not appear to generate the level of participation, excitement, cultural relevance, or civic benefit that comparable city-run arts facilities often provide. As a result, an asset that should be helping elevate local artists, expand community engagement, and strengthen Huntington Beach's creative identity is operating below its potential. The opportunity is not simply financial, but civic and cultural: to make the Art Center more visible, more welcoming, more connected to residents, and more valuable to the artists and audiences it should be serving. Many exhibitions also appear to receive little meaningful press attention or lasting public documentation. In many cases, once a show closes, there is little to no accessible visual archive, photo gallery, or digital record that allows residents, visitors, collectors, or supporters to see what was exhibited. That limits the public reach of the work, reduces long-tail exposure for participating artists, and reflects a broader weakness in the City's PR, content capture, and cultural documentation efforts. A city-run gallery should not only host exhibitions well in the moment, but also preserve and extend their value through visibility, promotion, and accessible online archives for those who could not attend in person or wish to revisit the work after the exhibition has ended. In addition, many exhibitions appear to lack supporting print, merchandise, or take-home purchase opportunities tied to the show itself. That creates a missed opportunity both for participating artists, who lose additional exposure and sales potential, and for the City, which loses a practical and low-friction revenue capture channel connected directly to its own cultural programming. 2. Current Structure The Art Center seems to operate with little to no integrated revenue strategy beyond the offered community art classes. Programming focuses almost exclusively on small shows and regional artists. There is no gallery sales commission program, no on-site or online retail/merchandise operation, no market-rate facility rentals, and no formal sponsorship or branded partnership framework. Oversight is split between City departments and external nonprofit/Foundation support, with limited coordination or performance accountability tied to financial return or community impact and engagement. 3. Financial Data (Indirect Impact) The City fully subsidizes operations. FY 25-26 Revised Expenditures • Admin (Personnel + Operating): $437,399 • Classes (Personnel + Operating): $97,856 • Total City Cost: $535,255 27 409 Revenues (Full-Year Projection Based on YTD) • Class/Camp fees: —$83,451—$107,708 (explicitly covers only instructor/program costs) • Memberships: —$2,725 • Artist Council fees: —$6,407 • Rentals &Special Events: —$5,240 • Total Revenue: —$97,823—$114,178 Net Annual Subsidy to the Art Center: $421,000—$437,000 in taxpayer dollars. The revenue generated by activities at this City-owned facility rightfully belongs, at least in part, to the residents who built and maintain the brand and infrastructure—yet virtually none returns to the General Fund. 4. Benchmark Comparison Comparable coastal-city cultural facilities treat their centers as revenue-generating assets that actively elevate both the institution and local artists. Laguna Art Museum generated $3.27 million in total revenue in 2024 through gallery/exhibition sales and commissions. Long Beach Museum of Art Foundation reported $2.17 million in revenue in 2024. These and other peer institutions routinely feature nationally and internationally renowned artists alongside local talent, capturing 20-50% commissions while dramatically increasing the market value of regional artists through association and exposure. Huntington Beach does not participate in or compete with major regional events such as Newport Beach's art festivals or Laguna Beach's Festival of the Arts, missing out on shared tourism and cross-promotion that other cities actively leverage. 5. Structural Gaps The current model creates clear vulnerabilities: • Heavy General Fund subsidy with no requirement for break-even or revenue-sharing • Programming that feels exclusionary and insular, focusing almost exclusively on small shows and regional artists, rendering the Center incapable of curating exhibitions with nationally or internationally renowned artists • Complete absence of gallery sales commissions, on-site city branded retail, or branded art merchandise • Minimal facility rental income and no corporate/private event strategy • No collaboration with hotels or other local partners to build community experiences around major festivals, and no participation in or alongside Newport or Laguna events • Missed opportunities to elevate local artists' value by placing their work beside major names —an approach proven to deliver immeasurable uplift in artist prestige, sales, and tourism draw 28 410 These gaps mean the City is subsidizing cultural programming while capturing almost none of the economic upside created by its own brand and location and the majority of the community never participates in the value it generates. 6. Revenue Gap With hundreds of thousands of annual visitors and a globally recognized coastal identity, the Art Center should at minimum break even and ideally generate net revenue. Comparable facilities routinely produce $200,000 — $600,000+ in direct annual revenue (and in stronger cases millions) through commissions, rentals, events, and retail. Instead, Huntington Beach is subsidizing the operation to the tune of$421,000—$437,000 (this number not including maintenance or utilities cost) per year with virtually no return. This represents a clear structural failure to monetize a public asset tied to the City's brand and to compete for the tourism and cultural value flowing to neighboring cities' festivals. Conservative annual lost opportunity /subsidy reduction potential: $400,000 — $750,000 (through commissions, rentals, retail/merch, major-artist exhibitions, festival collaboration, and broader community outreach — turning the current subsidy into breakeven or positive contribution within 2-3 years). 7. Corrective Path The Art Center is a meaningful civic asset. The challenge is making sure its value is more visible, more accessible, and more fully delivered to the artists, residents and visitors it should be serving. That begins with increasing public awareness, improving the accessibility and visibility of programming, and more intentionally positioning the Center as a community-serving and regionally / nationally recognized cultural hub rather than a facility known only to a narrow audience. The goal should be to create a stronger bridge between the Art Center, local artists, residents, and tourists. With the right structure and attention, the Art Center can at least break even on its operating costs as well as become a more visible source of community pride, a stronger platform for Huntington Beach artists, and a more valuable cultural asset for the residents. Immediate: • Establish centralized oversight with clear revenue targets, performance metrics, and community-engagement goals • Conduct a full audit of operations, agreements, revenue opportunities, and current public awareness/perception • Define brand standards for any future partnerships, programs or shows. Mid-Term: 29 411 4 • Implement a professional gallery/exhibition commission program and actively curate shows featuring nationally/internationally renowned artists alongside local talent • implement a consistent system for professionally photographing, cataloging, and archiving every exhibition, ensuring that each show remains accessible online as a lasting public resource and an ongoing source of visibility for participating artists. • Launch on-site and online retail/merchandise tied to the Huntington Beach brand • Introduce and promote market-rate facility rentals and corporate/private event packages • Develop sponsorship and Artist Council revenue-sharing framework • Audit& Performance overhaul of how the HBAC oversight currently functions • Begin collaboration with hotels and participation alongside Newport and Laguna festivals to build joint community experiences • Mentorship programs and classes between renowned artists and local artists. Long-Term: • Build integrated creative and merchandising capacity (leveraging existing staff and internships) • Establish performance metrics tied to direct revenue, subsidy reduction, artist elevation, tourism impact, and community utilization/awareness • Direct all new Art Center revenue back into cultural programming and General Fund support so residents finally benefit from the asset they fund Sources - City of Huntington Beach—General Fund Art Center Accounts(FY 24/25 Actuals&FY 25-26 Revised/YTD, provided March 2026) - Laguna Art Museum—ProPublica Nonprofit Explorer(FY 2024 revenue$3.27M) - Long Beach Museum of Art Foundation—ProPublica/CauselQ(FY 2024 revenue$2.17M) - Santa Monica FY 2025-27 Adopted Biennial Budget(Recreation&Arts Department context) - Industry benchmarks:Licensing International(LIMA)and American Alliance of Museums reports on gallery commission rates (20-50%)and cultural facility earned revenue models - Laguna Beach Pageant of the Masters and Newport Beach arts festival public attendance/economic reports(2024-2025) 10. UNDERVALUED: FOURTH OF JULY CELEBRATION 1. Discovery Huntington Beach has built one of the largest Independence Day celebrations in the country, consistently drawing 300,000-500,000 attendees and earning a regional television partner and coverage during the parade event. We've done an excellent job attracting that scale of crowd and showcasing our patriotic, family-friendly Surf City identity. What we haven't done as well is capitalize on the opportunity this creates. The focus of this section is not to be a profit generator for the city, but to secure more funding that elevates the parade's production quality and delivers a richer, more memorable experience for residents, families, and visitors, this in turn, will grow our earned media, and event prestige. 30 412 Right now the event lacks many of the high-impact elements that would make it truly special: elaborate floats, celebrity appearances, large helium balloons, live drone streaming of our fireworks show for those who can't attend and larger community activation zones and other events that could bridge the morning parade and evening fireworks into a full-day celebration. While we draw the crowds, we currently lack a strong third-party voice, sustained social media presence, and meaningful post-event media coverage—clear evidence that we are missing the kind of engaging, memorable moments that people naturally want to share and talk about long after the day ends. National brands with patriotic, family-oriented values cannot replicate access to our unique audience size and demographic. With a professional sponsorship approach, we could partner with them to fund those missing pieces and turn the parade into something even more extraordinary for the entire community. 2. Current Structure The parade is organized primarily through a contract event production with limited City oversight. Sponsorship packages exist (tiers from $1,000 to $6,000+ for banners, bleachers, announcing, etc.), but there is no evidence of a dedicated sponsorship sales team, no professional outreach to large national brands, and no strategy for premium corporate partnerships or branded integrations. The City provides the prime route, public safety, infrastructure, and brand prestige, while the contractor manages production. There is no centralized city-led effort or sales team to maximize sponsorship revenue for better floats, helium balloons, staging, or other elements that enhance family appeal and overall quality. 3. Financial Data (Indirect Impact) Direct City revenue from the parade remains minimal, with the event relying almost entirely on private fundraising rather than taxpayer dollars. Revenue streams include sponsorships, parade entry fees (e.g., $1,200+ for business/group entries), VIP/bleacher tickets, general donations, and ancillary on-site sales—all managed through the professional contractor, PSQ Productions (hired under a multi-year Professional Services Contract approved by the City Council in 2024). The contractor reports an annual production budget need of approximately$500,000+, covering high-cost items like the fireworks display over the ocean (a major expense), parade logistics (barricades, sound systems, staging, insurance, permits), the Surf City 5K, marketing and earned media (including TV coverage on KABC), entertainment, safety, cleanup, and more. The City contributes in-kind support (police/fire/public works overtime, permits), but the bulk is privately raised. While PSQ Productions provides professional management to handle the event's massive scale the dollars—or lack thereof—highlight a clear shortfall in sales and sponsorship pursuit. 31 413 Despite all of the high-value promotional opportunities and a dedicated sponsorship contact/channel, insufficient or inconsistent sponsorship and donation revenue persists—suggesting a lack of proactive, high-effort sales outreach (e.g., targeted corporate pitches, leveraging attendee demographics for premium activations, or expanding beyond basic tiers). This leaves the city forcing compromises on production quality—such as smaller-scale fireworks, fewer high-impact entries, reduced media, or limited "wow factor" elements—which diminishes long-term event prestige, community excitement, and growth potential. The true return is indirect: earned media amplification, boosted family tourism, and reinforced brand value for Huntington Beach. However, with stronger, more aggressive sponsorship sales aligned to the event's unmatched assets, revenue could more reliably meet or exceed needs—unlocking higher production standards, greater sustainability under professional management, and even expanded programming without relying so heavily on donations or cutting corners. 4. Benchmark Comparison Comparable large-scale parades and events treat sponsorship as a professional revenue engine to fund premium production and visibility. • Rose Parade (Pasadena) generates $1 M—$5M+ in direct sponsorships to support elaborate floats and broadcast quality. • Regional events like the Surf City Marathon (Huntington Beach, —18,000-22,000 participants) secure a title sponsor that brings in over $200,000 alone, funding a beautiful, high-quality event despite much smaller attendance. • Brands like Carnival Cruiseline regularly commit$100,000+just to sponsor the fireworks portion of San Diego's Big Bay Boom 4th of July celebration. These examples show that even smaller-scale events monetize sponsorships effectively through professional sales. Huntington Beach's parade —with 15-25x the crowd and televised exposure—severely under-prices and under-sells its opportunity. 5. Structural Gaps The current model creates clear vulnerabilities: • No dedicated sponsorship sales team or professional outreach to large national brands, resulting in low pricing and limited premium partnerships • Sponsorship tiers capped at $6,000 despite massive attendance and TV coverage—far below market rates for comparable visibility • Insufficient revenue to fund high-quality production (e.g., elaborate floats, helium balloons, professional staging), lowering appeal and reducing overall impact • Missed opportunities for premium branding, corporate integrations, or merchandise tie-ins that could amplify earned media and third-party voice 32 414 • No formal collaboration with hotels, tourism partners, or national brands to package experiences around the event • Limited City oversight or strategy to maximize sponsorship revenue while keeping the parade free and community-focused These gaps mean the parade under-delivers on production quality and brand amplification despite its massive scale. Missed Merchandising Opportunity—Americas 250 Huntington Beach's three-day Fourth of July celebration creates a massive short-term captive audience — especially with America's 250th birthday in 2026 driving huge demand for patriotic souvenirs and commemorative items. A third-party deal with a local surf shop currently gives them 70% of official parade merchandise sales, leaving only 30% for parade organizers. There is no valid reason to hand the majority of this one-weekend windfall to an outside entity when the crowd, the event, and the historic milestone belong to Huntington Beach residents and taxpayers. A city-controlled merchandising program — on-site booths, pre-sale, limited-edition 250th anniversary t-shirts, hats, flags, beach towels, and collectibles — could realistically generate $250,000 or more in revenue over the three-day weekend (conservative estimate based on high-attendance holiday event benchmarks and the expected semiquincentennial surge). Missed Opportunity: America 250 Exhibition at the Huntington Beach Art Center With America's 250th birthday this year, Huntington Beach has a prime chance to host a highly curated "Americana" gallery exhibition at the Art Center—featuring patriotic themes, historical reinterpretations, Veteran artists and works from both established and emerging artists that celebrate our nation's journey. This show timed to coincide with the Fourth of July weekend could draw significant regional and national tourism and media. This would create a major cultural draw, generate earned media; boost third-party voice, and position the HBAC as a meaningful tourism destination in the city. It could also produce direct revenue through commissions on featured works, and limited-edition prints/merchandise — all while elevating the facility's national recognition and giving local artists exposure alongside bigger names. Instead, the opportunity remains untapped, leaving the HBAC disconnected from one of the most significant cultural moments of the century and missing both tourism and prestige gains that neighboring cities would aggressively pursue. 6. Revenue Gap 33 415 Our Independence day celebration attracts 300,000-500,000 attendees and significant TV coverage, yet sponsorship revenue remains low due to under-pricing and lack of professional sales. Comparable events (e.g., Surf City Marathon with —22,000 participants securing >$200K from a single title sponsor) demonstrate that a dedicated sales approach can generate substantial funding for quality. Huntington Beach struggles to cover enhanced production costs, limiting floats, helium, and other family-friendly elements. Conservative annual lost sponsorship opportunity: $200,000 — $1,000,000 (through higher-tier pricing, national brand partnerships, and premium integrations — enough to dramatically improve parade quality, increase earned media value, and strengthen community pride without charging admission). 7. Corrective Path Immediate: • Establish more integrated City oversight for creative,event functions and sponsorship strategy with clear revenue and production-quality targets • Conduct a full review of current sponsorship agreements, pricing, and production costs • Define unified premium sponsorship guidelines tied to the Huntington Beach brand Mid-Term: • Launch a professional sponsorship sales effort (dedicated team or contractor) targeting national brands for higher-tier packages (leveraging televised exposure and crowd size) • Introduce premium branding opportunities (e.g., title sponsorships, branded floats, helium integrations)to fund production upgrades • Strengthen coordination with hotels and tourism partners for packaged family experiences • Develop proactive media outreach to boost national coverage and third-party amplification Long-Term: • Expend Event&Celebrity Activations • Build professional sponsorship capacity (leveraging existing staff and internships) • Establish performance metrics tied to sponsorship revenue, production quality, earned media value, and tourism lift • Direct all new sponsorship revenue back into parade production, public safety, and community programs so residents benefit from a higher-quality event Sources • City-provided parade sponsorship and cost estimates(internal documents,2024-2025) • Public attendance estimates and economic Impact reports for Huntington Beach 4th of July Parade(local media and tourism authority data,2023-2025) • Surf City Marathon attendance and sponsorship reports(Running USA,local news,2025-2026:—18,000-22,000 participants;title sponsor c$200K) • Macy's Thanksgiving Day Parade sponsorship revenue benchmarks(Licensing International and event Industry reports) 34 416 • Rose Parade and regional 4th of July event financial summaries(Pasadena Tournament of Rases,coastal city festival reports) • Laguna Beach,Newport Beach,Long Beach 4th of July event public budgets and sponsorship data(2024-2025) 11. Overburdened & Reactive In many areas, Huntington Beach operates in a reactive mode rather than a proactive one, in part, because our creative staff is severely overburdened. Creative teams across departments are stretched thin or don't exist, responding to immediate demands instead of actively identifying and pursuing high-value opportunities. Without dedicated creative leadership, brand infrastructure, and modern systems to coordinate efforts, the City lacks the capacity to bridge departments, meaningfully collaborate with key stakeholders across the city, or drive strategic initiatives that turn our Surf City identity into real economic and community value. All the issues we've examined — merchandising, film permitting, the Art Center, the Fourth of July parade, and others — may seem separate, but they are deeply symbiotic. Together they form a powerful ecosystem: better brand management fuels stronger tourism, stronger events drive higher merchandising and sponsorship revenue, improved cultural assets elevate third-party voice and earned media, and proactive collaboration across these areas creates richer community experiences while generating sustainable returns. Growth doesn't happen through reactive fixes — it comes from intentional communication, coordination, and creative direction focused on harnessing these interconnected opportunities. We've barely scratched the surface of identifying opportunities with just a few short weeks of research. The potential we've uncovered so far is only the beginning — there are likely dozens more levers waiting to be pulled. These opportunities aren't just about revenue; they can generate funding to help ease the burden on our overburdened staff, allowing them to shift from constant firefighting to strategic, proactive work that benefits the entire community. Our brand is one of the City's most valuable and overlooked assets: globally recognized, built over generations by residents, and capable of delivering millions in revenue and enhanced quality of life if managed proactively. Until we address staff overburdening, invest in creative leadership, and build the infrastructure and systems needed to operate strategically, we will continue missing significant revenue, tourism lift, and community value. Our brand deserves proactive care—not just reactive maintenance. 12. MISSED OPPORTUNITIES -CIVIC PATHWAYS 35 417 During our research we noticed a lack of internship programs throughout many areas of the city. A developed program can ease burden on city staff and provide youth with meaningful opportunities to help shape their futures. From Volunteering to Viable Futures—Building Local Talent That Stays Huntington Beach is rich in talent, pride, and civic culture—but we are losing our youth to other cities. Not because they don't love this place, but because we haven't given them a clear, visible path to build a future here. We already run some of the best youth programs in the country: the world-class Junior Lifeguard program builds discipline, leadership, and physical excellence; the Police Explorers program delivers real exposure to public safety and civic responsibility. These prove Huntington Beach knows how to create elite, structured opportunities for young people. The problem is scope: these programs are exceptional but narrow — focused on specific careers and not available to every student. Broader volunteer opportunities across departments are valuable, but they are mostly adult-oriented, short-term, service-based, and not tied to skill-building, certifications, or employment pipelines. They answer "How can I help?" — not "What can I become here?" The Gap Huntington Beach currently lacks: • A city-wide youth career pipeline • Internships embedded in departments • Clear pathways from high school —training —> local employment or industry careers As a result: • Our most capable students leave for cities with better opportunities • Trades, creative fields, and technical roles struggle to recruit locally • Civic careers remain invisible to the next generation The Solution: CivicOathways Initiative A structured, city-wide internship and apprenticeship system for high-school students — paid and non-paid — spanning every department and industry: libraries, parks, media, design, public works, skilled trades, administration, and more. This complements (does not replace) existing volunteer, Junior Lifeguard, and Police Explorers programs—it's the natural evolution. Program Structure • Tier 1: Civic Exploration (Ages 15-16) — Short rotations (6-8 weeks) for discovery and exposure 36 418 • Tier 2: Civic Internships (Ages 16-18) —Non-paid, semester/summer programs/roles with real deliverables and skill-building • Tier 3: Civic Apprenticeships (18+)— Direct workforce tracks with unions, contractors, and priority city hiring Department-Specific Pathways (Examples) • Library & Cultural Services —* Digital archiving, event programming, community storytelling • Parks, Recreation & Beaches -> Environmental stewardship, facilities operations • Media, Film & Communications — Video production, social media, event documentation (major strategic advantage for in-house capacity) • Design &Creative Services -* Graphic design, branding support • Public Works & Skilled Trades -+ Electrical/plumbing/HVAC shadowing, safety certifications, union pipelines • City Administration -* Policy research, budgeting, operations Integration • Partner with HB Union High School District for Career Technical Education alignment, work-study credit, and merit-based applications • Each participant gets a mentor, clear goals, evaluations, work samples, certifications, and recommendation letters Funding &Sustainability Low-risk model: • Workforce development grants • Business/union partnerships • Long-term savings from reduced outsourcing, faster recruitment, and local talent retention Why This Matters This initiative: • Keeps talent local and builds generational ownership • Strengthens the workforce across departments • Creates debt-free career paths in high-demand fields • Turns youth engagement into long-term civic and economic value The city already knows how to run elite youth programs —They've proven it on our beaches and in public safety. Now it's time to bring that same excellence to libraries, trades, media, design, and civic leadership. When young people can see a real future here, they'll stop looking elsewhere. 37 419 Other cities recruit talent. Huntington Beach can grow it—and keep it. MOVING FORWARD What comes next is an opportunity to fix broken systems and rebuild the city's revenue engines. The opportunities outlined in this report represent only the initial layer of what may be possible. After only a few weeks of research, this research has already identified several areas where improved coordination, modernized agreements, and stronger infrastructure could generate millions in additional value while improving the experience of residents, visitors, and businesses alike. There are likely many more opportunities still waiting to be uncovered. With the right systems in place—and with the collaboration of City leadership, staff, community stakeholders, and industry partners —Huntington Beach has the potential not only to protect its identity, but to turn that identity into a powerful engine for sustainable economic growth, cultural relevance, and community pride. The goal moving forward is not simply to identify problems, but to help build the infrastructure, partnerships; and institutional knowledge that allow the city to operate independently, confidently, and strategically in managing the Surf City brand. Report Basis and Limitations This report reflects the good-faith analysis,observations,and opinions of Wolffhaus based on the information available at the time of review, including public records, materials provided, interviews, and direct observations.Any evaluative statements,findings,or conclusions are presented as professional opinions based on that information and are not intended as allegations of unlawful conduct.This report is intended to support operational, policy,and strategic review,and its conclusions may change if additional information becomes available. 38 420 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND WOLFFHAUS. FOR BRAND,MEDIA,PRESS AND DIGITAL ECOSYSTEM COMPREHENSIVE AUDIT, MARKETING AND ASSESSMENT SERVICES THIS AGREEMENT("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY,"and WOLFFHAUS,hereinafter referred to as "CONSULTANT." WHEREAS,CITY desires to engage the services of a CONSULTANT to provide, in part, brand, media, press and digital ecosystem comprehensive audit, marketing and assessment services; and In addition to comprehensive skill set and unique familiarity of City services, CONSULTANT has been selected pursuant to Huntington Beach Municipal Code, Chapter 3.03.100 relating to budget procurement of professional service contracts. NOW,THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates Tyler Wolff who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. Page 1 of 17 NO ACTION TAKEN 421 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on ,20 (the"Commencement Date"). All tasks specified in Exhibit "A" shall be completed as provided in the schedule identified in Exhibit A. The schedule for performance of the tasks identified in Exhibit "A" are milestones for payment purposes. This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT.The City agrees to cooperate in good faith and provide reasonable access to personnel, information, records, facilities, in the City's control and/or possession and decisions necessary for the CONSULTANT to perform the services contemplated under this Agreement. The CONSULTANT'S performance and project timelines are dependent upon the timely cooperation of the City and its departments. If the City fails to provide requested information, approvals, access, or cooperation within a reasonable time (Delays), any resulting delay by CONSULTANT shall automatically extend the applicable project schedules,milestones, and deliverable dates by a period equal to the delay. Any delay reasonably caused, in whole or in part, by the City shall be documented in writing by CONSULTANT and provided to the City Manager within five (5)business days after such delay becomes reasonably identifiable. Any determination of City-caused delay shall be based on objective facts and supporting records, If the City caused or contributed to the delay, applicable project schedules, milestones, and deliverable dates shall be extended by the period reasonably impacted. If the City materially interferes with, delays, blocks, or refuses access necessary for performance, and does not cure after notice, Consultant may suspend services and/or terminate,with payment due for work performed plus termination fee as described in Section 4. Page 2 of 17 422 4. COMPENSATION In consideration of the Services to be performed under this Agreement and Exhibit A, City shall pay Consultant a fixed monthly retainer in the amount of Thirty Thousand Dollars ($30,000.00) payable in twenty-four (24) monthly installments. In no event shall the total compensation paid to Consultant exceed Seven Hundred Twenty Thousand Dollars ($720,000.00.). The first payment will be due 5 days after City's receipt of the initial Monthly Progress Deliverable, and following payments will be due the first Friday of every month thereafter. Consultant shall submit, on or before the 21st of each month, (i) an invoice for the applicable billing period, and(ii) a Monthly Progress Deliverable, and City shall pay the applicable monthly installment on the first Friday of every month thereafter. "Monthly Progress Deliverable" means a monthly submission evidencing substantive advancement of the Scope of Services, which may include progress summaries, strategic plans, recommendations, draft or final materials,implementation updates,milestone tracking, issue logs, requested City actions or approvals, and other documentation showing material progress across the contracted programs. The parties acknowledge that the.Services under this Agreement consist.of an ongoing professional engagement across multiple concurrent initiatives, including strategy, development, implementation, coordination, system design, operational buildout, creative direction, program development, oversight, and milestone advancement. Accordingly, monthly payment shall not require the completion of a final end-product or fully completed milestone in any individual month, provided that Consultant has materially advanced the Services and submitted the required invoice and Monthly Progress Deliverable. Page 3of17 423 City review of each Monthly Progress Deliverable shall be limited to confirming that Consultant has materially performed and advanced the contracted Services during the applicable billing period. City may not withhold payment based on subjective preference, discretionary dissatisfaction,or the absence of a fully completed long-term milestone where measurable progress has been made within the Scope of Services. Unless City provides written notice within five(5)business days after receipt of the invoice and Monthly Progress Deliverable identifying with reasonable specificity a material deficiency in Consultant's performance for the applicable billing period,the.Monthly Progress Deliverable shall be deemed accepted for payment purposes, and receipt of such invoice and Monthly Progress Deliverable shall automatically trigger payment of the applicable monthly installment on the first Friday of the immediately following month. Any objection to a Monthly Progress Deliverable must be made in writing and must describe with reasonable specificity the alleged deficiency. City may withhold only the specific portion of payment reasonably related to a properly noticed and substantiated deficiency,and City shall timely pay all undisputed amounts when due. All City-specific deliverables produced under this agreement shall become the property of the City upon payment for services rendered. Certain initiatives,programs, or operational improvements recommended or developed by the CONSULTANT under this agreement may require additional funding, budget allocations, or expenditures by the City in order to implement at the City's sole discretion. The Consultant can achieve milestones without major city financial expenditure. In addition, the performance of services under this agreement may require reasonable project-related expenses, including but not limited to specialty travel,production costs,materials, Page 4 of 17 424 third-party services, or other costs necessary to support the execution of approved initiatives. The CONSULTANT shall not incur any of these expenses on behalf of the City without prior written authorization from the City Manager. Any approved project-related expenses shall be reimbursed by the City if pre-approved by the City Manager. If implementation of a program requires City funding approval,procurement processes,or third-party contracting,the associated project timelines and deliverable schedules shall be adjusted to reflect the City's approval and funding process. Any additional funding, other than set forth in Compensation section, shall be subject to approval by the City Manager. 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms set forth herein and Exhibit 7. DISPOSITION OF PLANS,ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY Page 5 of 17 425 upon expiration or termination of this Agreement or upon PROJECT completion,whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONSULTANT agrees to defend, indemnify and hold harmless CITY, its officers,elected or appointed officials, employees, agents and volunteers from and against any and all third-party claims,damages,losses,expenses,demands and defense costs,including costs and attorney's fees, but only to the extent arising out of the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, agents, employees, or approved subcontractors in the performance of this Agreement. CONSULTANT shall have no obligation under this Section to the extent any such claim arises from the negligence, willful misconduct, directions, approvals, content, or independent acts or omissions of CITY or third parties not under CONSULTANT'S direction or control. CONSULTANT'S obligations under this Section shall be limited to matters within the scope of services under this Agreement and shall not extend to final governmental decisions, legal compliance determinations reserved to CITY, procurement decisions, budget approvals, permitting decisions, or operational acts undertaken exclusively by CITY. LIMITATION OF LIABILITY.Notwithstanding any other provision of this Agreement,the total cumulative liability of CONSULTANT to CITY arising out of or relating to this Agreement,whether in contract,tort, or otherwise, shall not exceed the lesser of: (i)the total compensation actually paid by CITY to CONSULTANT under this Agreement; or(ii)the proceeds actually available under any insurance required to be maintained by CONSULTANT under this Agreement. This limitation shall not apply to damages arising from CONSULTANT'S fraud or willful misconduct, or to the extent such limitation is prohibited by applicable law. Page 6 of 17 426 CONSULTANT shall have no claim against the City for third-party claims, damages, losses, expenses, demands and defense costs, including costs and attorney's fees, in law or equity, regarding any challenge to this Agreement such as the contracting process, directions, approvals, content, or independent acts or omissions of CITY or third parties not under CONSULTANT'S direction or control 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it.hereunder. This policy shall provide coverage for CONSULTANT's professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not contain a self-insured retention without the express written consent of CITY;however an insurance policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims-made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason,CONSULTANT agrees to purchase an extended reporting provision of at least two (2)years to report claims arising from work performed in connection with this Agreement. Page 7 of 17 427 If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement. Such termination shall not affect CONSULTANT's right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement;the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall promise that such policy shall not be suspended, voided or canceled by either party,reduced in coverage or in limits except after thirty(30)days' prior written notice;however,ten(10)days'prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense,hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a Page 8 of 17 428 copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause,and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing,notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall,at the option of CITY,become its property and shall be promptly delivered to it by CONSULTANT. The City may terminate this agreement for cause in the event the CONSULTANT materially breaches the terms of this agreement including but not limited to failure to complete milestones as set forth in Exhibit A. and fails to cure such breach within sixty(60)days following written notice describing the nature of the breach. In the event of termination for cause, the CONSULTANT shall be compensated only for services properly performed through the effective date of termination and for any completed deliverables accepted by the City Page 9 of 17 429 The services contemplated under this agreement involve the development and transfer of strategic frameworks, operational systems, institutional knowledge, industry relationships, and program structures that become embedded within City operations. The City maintains discretion on which programs to implement which will not affect the CONSULTANT's milestone deliverables. Once these elements are transferred, they cannot be practically removed or reversed. If the City elects to terminate this agreement prior to completion of the contracted scope of work for reasons other than termination for cause,the City shall compensate the CONSULTANT for: all services performed through the effective date of termination; completed deliverables not yet invoiced; A termination payment equal to fifty percent (50%) of the remaining unpaid contract balance. The termination payment reflects the remaining value of the engagement that cannot be recovered or withdrawn once the work has begun. The CONSULTANT may terminate this agreement upon thirty (30) days written notice to the City if any of the following conditions occur: the City fails to make payment for services rendered within thirty (30) days after written notice of non-payment ; the City materially breaches the terms of this agreement and fails to cure such breach within thirty (30) days after written notice. The City prevents, obstructs, or materially interferes with the CONSULTANT's ability to perform the agreed scope of services. the City materially breaches the terms of this agreement and fails to cure such breach within thirty (30) days after written notice. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the Page 10 of 17 430 prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant,or by enclosing the same in a sealed envelope,postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: TO CITY: TO CONSULTANT: City of Huntington Beach Wolffhaus ATTN: City Manager ATTN: Tyler Wolff 2000 Main Street 1309 Coffeen Avenue, Suite 1200 Huntington Beach, CA 92648 Sheridan, WY 82801 Page 11 of 17 431 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision Page 12 of 17 432 contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 24. ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall Page 13 of 17 433 bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement,which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact,held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation,and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements,promises,agreements or warranties,oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement,promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior Page 14 of 17 434 understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, CITY OF HUNTINGTON BEACH, WOLFFHAUS a municipal corporation of the State of California By: Director/Chief print name (Pursuant To HBMC§3.03.100) ITS: (circle one)Chairman/PresidentNice President AND APPROVED AS TO FORM: By: City Attorney print name ITS: (circle one)Secretary/Chief Financial Officer/Asst. Date Secretary—Treasurer - — RECEIVE AND FILE: City Clerk Date NO ACTION TAKEN Page 15 of 17 435 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) SEE ATTACHED EXHIBIT A B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: SEE ATTACHED EXHIBIT A C. CITY'S DUTIES AND RESPONSIBILITIES: D. WORK PROGRAM/PROJECT SCHEDULE: EXHIBIT A 436 EXHIBIT "B" Payment Schedule(Fixed Fee Payment) 1. CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth in Section 4 of the Contract. 2. CONSULTANT shall submit to CITY an invoice as follows: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. 3. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 437 Wolffhaus Scope of Professional Services for the City Of Huntington Beach Strategic Advisory & Implementation Support Huntington Beach Asset Modernization Initiative Company: Wolffhaus Lead Advisor: Tyler Wolff Term: 24 Months This engagement focuses on three strategic modernization initiatives identified in the City Asset and Revenue Audit: 1. Creative Direction & Communication Infrastructure 2. Film & Digital Media Office Development 3. Municipal Merchandising Modernization These initiatives are designed to strengthen the City's control over its identity, modernize revenue capture tied to municipal assets, and build internal systems that can be sustained by City staff long-term. The engagement is structured as a systems-building initiative, not long-term outsourcing. Wolffhaus's role is to assess, build, implement, train, and transition operational ownership back to the City. 1. CREATIVE DIRECTION, STRATEGY & COMMUNICATION INFRASTRUCTURE Objective Establish a modern communication and brand infrastructure that allows the City to consistently represent its identity, proactively promote its assets, and support economic initiatives. Wolffhaus Core Services 438 Brand & Communication • Full Evaluation of current City communication infrastructure • Review of digital media systems and content production • Benchmark analysis against comparable municipalities • Identification of structural communication gaps • Act as Creative & Brand Strategist- Provide strategic creative and brand advisory services to the City within the contracted program areas during the Term. • Engage with designated City staff and approved external stakeholders, as reasonably necessary, to support opportunities for revenue growth, brand value, and community benefit within the approved Scope of Services. Creative Direction & Strategy • Development of unified municipal brand standards • Visual identity guidelines for City communications • Media production and storytelling framework • Media Staff training • Cross-department communication alignment Media Infrastructure • Centralized digital media asset library strategy development • Content production strategy • Social media and digital distribution strategy • Press and earned media engagement framework • Consolidation of City messaging channels Internal Capacity Building • Training related to Brand & Creative programs for City staff • Development of communication SOPs (Standard Operating Procedure) • . Integration of media production across departments • Alignment with tourism and economic development messaging Milestones & Deliverables 1 . Creative Direction, Strategy & Communication Infrastructure Months 1-3 439 • Complete assessment of current City communication infrastructure, media workflows, and asset organization • Review current communication systems, content production practices, and archival/media assets • Present brand governance, communication ownership, and operational structure recommendations • Prepare draft City Brand Bible and initial communication standards framework Months 4-6 • Finalize City Brand Bible and core communication standards • Deliver digital media asset management system plan and recommendations, • Establish content production strategy and messaging framework for approved program areas • Deliver initial communication SOP framework and cross-department alignment recommendations Months 7-12 • Implement unified communication strategy across approved City program areas • Establish regular media production and messaging pipeline • Implement core messaging alignment between City communications, tourism, and economic-facing initiatives • Conduct initial staff training related to brand, media, and communication workflows Months 13-18 • Finalize communication SOPs and internal workflow recommendations • Refine digital asset organization, content processes, and media coordination systems • Activate press and earned media support framework for approved initiatives • Expand cross-department communication alignment within the approved Scope of Services Months 19-24 • Institutionalize internal creative direction and communication framework • Complete staff training and transition planning for long-term City use • Deliver final recommendations for continued internal management and system maintenance • Transition operational communication systems for sustained City-led use 2. MERCHANDISING PROGRAM 440 Objective Develop and implement a City-controlled merchandising program that captures the economic value of Huntington Beach's global identity and tourism traffic while establishing transparent reporting and scalable revenue structures. Core Services Program Architecture Design and implement a modern municipal merchandising framework including: • City-controlled merchandise program & licensing strategy • Design & Development of Seasonal Merchandise • Seasonal Merchandising Marketing Campaigns (Photo &Video) • Development of official & authenticated Huntington Beach merchandise line • Direct-to-consumer sales model (online and event-based) • Production and fulfillment partnerships negotiation and management • Reporting and auditing infrastructure • Brand licensing standards and product guidelines • Negotiations on behalf of city with vendors for best rates on production • Online Direct to Consumer Website/store development • Integration with events and tourism programming • Retail strategy recommendations (including flagship retail locations) • Provide relevant staffing for merchandising-related materials and campaigns within the approved program scope. Governance & Oversight • Creation of merchandise program SOPs • Financial reporting and oversight structure built for city staff • Licensing and vendor management policies • Integration with City communications and event programming Milestones & Deliverables Months 1-3 441 • Complete detailed merchandising program audit and opportunity assessment • Review existing licensing structures, intellectual property issues, and revenue gaps • Deliver initial retail, wholesale, and interim merchandise strategy • Identify seasonal and event-based merchandising opportunities for near-term implementation • Develop stop-gap interim merchandise plan for short-term sales activation Months 4-6 • Establish official City-controlled merchandise program framework • Finalize brand licensing standards, product guidelines, and governance recommendations • Negotiate or assist in establishing vendor, production, and fulfillment relationships • Develop product roadmap and launch initial online direct-to-consumer and wholesale store Months 7-12 • Launch official merchandise program • Implement online and event-based sales integration • Establish revenue tracking, reporting, and oversight framework • Seasonal merchandise development and campaign planning • Deliver retail expansion recommendations for approved City channels and locations Months 13-18 • Expand product assortment, campaign activity, and sales opportunities • Develop additional distribution, collaboration, and tourism-facing sales opportunities • Refine merchandising operations based on performance and reporting data • Advance opportunities for local artist, photographer, and cultural merchandise participation, where approved Months 19-24 • Complete expansion of approved distribution and partnership opportunities • Fully integrate merchandising into approved tourism, event, and public-facing City initiatives • Finalize merchandising SOPs, oversight structure, and staff training materials • Transition to a fully operational City merchandise system capable of ongoing internal management 442 3. FILM & DIGITAL MEDIA OFFICE DEVELOPMENT Objective Establish Huntington Beach as a competitive production destination while creating a structured film permitting and location marketing system that generates recurring municipal revenue. Core Services Film Office Development Design and establish a structured film office framework including: • Film liaison coordination system • Production permitting workflow modernization • Location marketing strategy • Film industry outreach program for Producers • Film Education opportunies for the community • Production handbook and location guide to ease strain on city staff • Creation of Location Library Asset system will be handled by Wolffhaus Revenue Strategy • Film permit fee optimization • Location usage agreements & pricing • Integration with tourism and media exposure • Increased local spend generates sales tax& Hotel TOT revenue Industry Outreach Production company engagement Location manager outreach Film industry network development Participation in industry events and marketing initiatives Milestones & Deliverables 443 Months 1-3 • Complete Film and Digital Media program assessment • Develop film office operational framework, ownership roles, and implementation outline • Prepare production handbook outline and location marketing strategy foundation • Develop initial outreach strategy for producers, brands, and industry contacts Months 4-6 • Establish official Huntington Beach Film Office framework • Deliver film permitting modernization recommendations and implementation plan • Develop digital location marketing materials and core outreach tools • Launch initial industry outreach effort • Build Film Office website or landing page framework within approved City standards Months 7-12 • Deliver final production handbook and location guide • Publish initial location library and marketing assets • Implement production revenue reporting structure • Advance active production pipeline development and location promotion • Integrate film office positioning with City communications and tourism-facing promotion Months 13-18 • Expand producer, location manager, and industry outreach activity • Refine permitting, coordination, and location marketing workflows • Develop recurring production relationship pipeline • Advance community education and workforce pathway recommendations related to film activity Months 19-24 • Finalize fully operational municipal film office infrastructure • Deliver annualized revenue reporting and program performance framework • Finalize workforce integration, internship, or apprenticeship recommendations within approved scope • Complete staff transition materials, SOPs, and long-term operational recommendations Ongoing Strategic Advisory & Monthly Support Services 444 Throughout the Term, Consultant shall provide recurring monthly strategic advisory, creative direction, and implementation support across the program areas identified in this Scope of Services: (i) Creative Direction, Strategy& Communication Infrastructure, (ii) Municipal Merchandising Modernization, and (iii) Film & Digital Media Office Development. These recurring monthly services are intended to provide continuity of leadership, maintain momentum across active workstreams, support City decision-making, and ensure consistent monthly advancement of the Scope of Services. Recurring monthly services may include, as applicable, strategic counsel to City leadership and designated staff; creative and brand direction; messaging and communications guidance; cross- department coordination and alignment directly related to the contracted program areas; refinement of frameworks, recommendations, standards, and work product already underway within the approved Scope of Services; implementation oversight; partner and stakeholder coordination related to approved initiatives; planning meetings and working sessions reasonably necessary to advance the contracted programs; initiative review and advancement; and monthly reporting regarding work completed, work in progress, upcoming priorities, and City dependencies affecting schedule or implementation. Such recurring monthly services are limited to matters directly related to the three program areas expressly identified in this Scope of Services and to the priorities reasonably scheduled for the applicable billing period. Consultant's recurring monthly services do not include unlimited on-demand services. Consultant shall retain reasonable discretion as to the manner, sequencing, staffing, and prioritization of the Services performed during each billing period, subject to coordination with City regarding priorities, dependencies, approvals, and operational needs within the approved Scope of Services. Any request by City that materially expands the Scope of Services, increases the volume of work beyond the recurring monthly strategic support contemplated herein, or requires services outside the three contracted program areas shall constitute Additional Services and shall require prior written authorization by both parties, together with any appropriate adjustment to compensation, schedule, deliverables, or both. The parties acknowledge that these recurring monthly strategic services are a substantive and ongoing part of the engagement and are separate from, and in addition to, the longer-range milestone deliverables identified elsewhere in this Scope of Services. Engagement Outcome At the conclusion of the 24-month engagement, the City will have: 445 •A fully operational municipal merchandising program •A structured film office capable of generating recurring revenue •A modern communication and brand infrastructure • Documented operational systems and trained internal staff The long-term goal is institutional capability, ensuring the City retains full operational control without reliance on outside consultants. Program Integration The city's brand value is highly dependent on a complex ecosystem. While each initiative functions independently, they are designed to reinforce one another: • Creative direction supports merchandise branding • Film productions amplify the City's global image • Merchandise programs leverage tourism and media visibility • Events and cultural programming support brand growth This integrated structure ensures the City's identity functions as a coordinated economic and cultural asset. 446 -::.:::;;; T I N GTO N... ,",,,,,,, „,„„,,,,,:„„„.,.,.:.,.„.,„.:.:...:...„..,..„,..„„, ...„. .. . ,:. . . .,. „,., _,......:,.........,,„ , ....., Cfill . ✓,i , 0ai s ,.✓ ^'' . 4,. kl.a WE OWN THE BRAND. 1 IT'S TIME WE OWNED THE REVENUE. Presented by Wolffhaus ij/1 ff' April 2026 gg #Aus ll I , �� -4 Z (f) m N D '1mmC XII -II K Z Ow ' l 01 �v z r m )3 z n mC a > Eli X m • 0o v, O Z r- > Z C m m K . ., .,.., ,i, ..,..i. . „. . , .. , ... ,,, *_„, , „ .„-.... , ,, = i . ..,..,."."3:4.2,,,,,.. . --, 4 .17) . , ., ‘1--. . btv , o i v) 3 w 0 p D < 0 m t0 � 0 -4 D � , v < CT ,c, 3 o 0 7 z • to fitalff THEISSUESWAas i ' ` e I , 17 ,4. ',IP'., . . ',.. '*r 0," t, f I 111 i "3 " "' Our globally recognized Surf City brand generates over a half a billion dollars in annual visitor spending — and we're not capturing its full value. FIVE CORE CONCERNS 1111) NM A (rilh:) LOSS OF BUDGET DEFICIT VENDOR FRAGMENTED DEPENDENCY RISK MASSIVE REVENUE INTELLECTUAL PRESSURE LEAKAGE BRAND OWNERSHIP PROPERTY CONTROL Heavy reliance on Growing fiscal Responsibility outside operators Tourism, events, Our brand is not challenges while scattered across reduces control and media, and licensing, protected or treated revenue potential is departments with no inflates costs and lack strong oversight as a revenue asset left uncaptured lessens returns. unified strategy These five structural gaps are costing taxpayers at least $2M-$5M+ yearly and up to $18M or more over the next five years. egifialef THE DATA WHAT OUR AUDIT FOUND: MILLIONS LEAKING EVERY YEAR MERCHANDISING BRAND & MEDIA PUBLIC ASSET: EVENTS, FILM, & LICENSING ART CENTER & OPERATIONS No centralized Surf City Store: $1.515M Underutilized & voice or modern Underpriced sales -- City received only subsidized at $75,761 (5% royalty). infrastructure. sponsorships, approximately fragmented film Pier lease: $950/month. Most high visibility $500,000 per year operations, weak press is political or in taxpayer dollars contracts, no proactive Widespread unlicensed controversy-focused —with almost no programming, and HB apparel sold hurting tourism, earned revenue or residual overburdened staff. value to our artists & city-wide with economy & civic pride community. zero return. CONSERVATIVE ANNUAL LOST OPPORTUNITY: 5-YEAR POTENTIAL: $02 M lm $5 M + $18M+ in new revenue, savings, and economic activity �,,� THEISSUES j =`* rif S, THIS IS HOME FOR US. We cannot sit idly by while value is lost, our community feels the impact, and our world - class city operates beneath its potential . Standingby was never an o tion. p ... . . ........ . . . .4. . 4 . , , • :,.. FA .., E' -r j - --- ..+ r'=`„ WHO ARE WE? WOLFFHAUS ,. , , ,, ,, _ .,, ,_,.. ,,,,,,,,c,....,4%....,, Part brand incubator, part strategic operator,we work across many mediums-creative,strategy, media, experiential, and goods production -to rebuild redirect and elevate physical � -- brands from the inside out. Clients come to us when traditional agencies stall and surface level thinking fails. Our approach is data-driven and human- , `� �' , centric. We study behavior, culture, and connection -then design solutions that actually work. .; �a k. We don't follow trends. We create them. Through a rolodex of elite talent,we assemble the exact team each problem demands—no . excess, no filler-delivering results that cut through noise and " drive real impact. We specialize in lifestyle, entertainment, automotive, military& law i enforcement, apparel,spirits, and outdoors-industries where credibility matters and mistakes are expensive. ,f , q ,� eve 401 0 ._. 000 oaa o`A` Ii STRATEGY FILM & CREATIVE PRODUCT EVENTS & & GROWTH MEDIA DIIRECTION DEVELOPMENT EXPERIENTIAL 452 F ABOUTUS imus WHAT DO THEY SAY ABOUT US? WOLFFHAUS "Wolffhaus sees what others overlook— and actually fixes it." Mefl' " a!th ree w Y ® r t , � ^,.nw• «.ate ,... • JELLYtl '°, ROLL Pr �`• .. ,y , +✓ . o.n.WUT, AO Iliajd., sjpU.CttWN[Ey� i A!( OS M .ate ... 4^ 2°24 ' .. ,,...ems �� Jowa NICOTINEi JELLY ROLL AUBREY MARCUS JACK ROUSH JR. Grammy Award-Winning Artist Co-Founder, Joe Rogan's "Onnit" Roush Performance "Tyler is by far the most creative "Tyler was the first to set the standard Wolffhaus acted as Creative Director person I've worked with in the for our media direction and framework for Roush. Their work had a great industry, and I am in an industry with at Onnit. He was way ahead of his impact. With Tyler's unique vision and the most creative people in the world. time, and helped us emerge as a strategy, they created programs that Tylerjust isn't just a creator, he's a vision leading disruptive tive brand with his were powerful and engaging. The caster. He's the rare moment where unique combination of artistry and effect was very significantly increased art, heart and hard work meet each vision" sales and brand interest. other." DSO j Loi a %�t r'lnr71 =,-, billboard izoturigStone in a:!1,T c larrikesarole ROUSH `'SOME OF OUR CLIENTS: ....w () lid/id��07 k' � •7yy. C f - BLACK RIFLE *Discovery t c aRt � L ..)*aiO OA c „ COM GO*PAMY /Anus THEDA;A TOURISM WHATIS A EVENTS FILM BRAND ECOSYSTEM? LICENSING A Brand Ecosystem turns recognition into revenue. A brand ecosystem works when each piece strengthens MERCHANDISING �`i 1 , , ' Ill,all .,1111111 I II�l!1 all_ II the next turning attention into visitation, visitation into y spending, and spending into ; . -t lasting community value. MEDIA Right now, those pieces are CITY fragmented, and too much SPONSORS& VENUES value is being lost in the gaps. PARTNERSHIP CULTURAL PROGRAMMING 454 Off LET'S BUILD WHAT WE' RE PROPOSING Three High- Impact Modernization Initiatives 24-Month Engagement - Systems Built, Operationalized, Trained, and Handed Back to City MERCHANDISING FILM & DIGITAL CREATIVE DIRECTION & MODERNIZATION MEDIA OFFICE BRAND VOICE INFRASTRUCTURE Modern royalty structure, city- One-stop permitting, proactive controlled retail, seasonalCreative Leadership, Unified collections, e-commerce, artist location marketing, production messaging, content collaboration, legitimate materials, outreach, and systems modernization, staff training, that reduce friction while internshi wholesale pathways, and low risk expanding revenue. PPiPeline, and p roactive retail. press & media relationships. IF*P05 LET'SBUILD THIS PROGRAM IS DESIGNED TO STRENGTHEN THE CITY FROM WITHIN - BUILDING SYSTEMS, SUPPORTING STAFF, EXPANDING CAPACITY. SUCCESS IS CREATING NEW OPPORTUNITIES FROM THE CITY'S EXISTING ASSETS WHILE UNLOCKING THE FUNDING NEEDED FOR GROWTH LONG-TERM SUCCESS, NOT LONG-TERM DEPENDENCE. ri . /Us MERCH MERCHANDISING ..., r ., , RECLAIMING OUR BRAND'S 1. . Nfir4 Huntington Beach is a globally recognized destination with strong demand for lifestyle ,. and beach/surf related merchandise. Based , , ' ; on reported data, the current program !_ s � 11 generates approximately: -; d '' , • $600,000 to $800,000 in annual licensed �" sales q - . _ __. '` • $30,000 to $40,000 in annual revenue to .' the City (5% royalty) • $0 captured for untrackable & unlicensed -. sales There is a substantial opportunity to enhance this program through improved ", retail strategy, expanded product offerings, and a more optimized financial structure. "• MERCH ' 51,JRP i WE LET OTHERS POCKET MILLIONS FROM OUR BRAND � TAY ' $1.515M in Surf City Store sales 4 ,i 12) ` City gets only $75,761 (5% royalty) �, 1 N f o'4, 4y1. ,rz 4'. , Severely Undermarket Pier Store ��!' " � ' ` ::a ':ii Lease: Approximately $950/month . . �-� ' . !% r (Could be a Flagship Store whose sales benefit our community) � � � f l 3, 'Y ... _ f ll Unlicensed HB apparel sold w° city-wide -) millions lost 411 Global surf apparel market: $10.37 billion and growing kr. s ' ` rris MERCH THE CURRENT REALITY Licensed Merchandise Sates Fees Paid to City BASIC MERCH MATH Month!Year license Fee Total 5%License Fee Paid Sales to City Example: A Licensed $30 T-Shirt currently January2024 $ 46,840.75 $ 2,342.04 February 2024 $ 46,214.11 $ 2,310.71 returns $1.50 to the city. March2024 $ 64,434.68 $ 3,221.73 A' April 2024 $ 59,643.90 $ 2,982.20 May With a city owned program - a $30 T- June $ 84,857.09+ $ 4,242.854 tune 2024 $ 87,292.83 $ 4,364.64 Shirt now returns between $15-20 with a July2024 $ 118,469,12 $ 5,923.46 August 2024 $ 73,484.83 $ 3,674.24 direct to consumer sale, and $3-5 on a September2024 $ 59,704.09 $ 2,985.20 sale to a licensed retailer. October 2024 $ 65,013.50 $ 3,250.68 November 2024 $ 30,087.49 $ 1,504.37 December 2024 $ 48,488.68 $ 2,424.43 Unlicensed merchandise currently for January2025 $ 43,473.12 $ 2,173.66 sale at several locations and vendors, $0 February2025 $ 38,966.53 $ 1,948.33 March 2025 $ 55,873.55 $ 2,793.68 is returned to the city. April 2025 $ 55,206.48 $ 2,760.32 May 2025 $ 77,300.61 $ 3,865.03 June2025 $ 84,677.14 $ 4,233.86 There are many more categories of July 2025 $ 102,954.37 $ 5,147.72 merchandise with higher and lower August 2025 $ 85,578.45 $ 4,278.92 return rates, but basic apparel is low September2025 $ 49,281.15 $ 2,464.06 October 2025 $ 57,229.93 $ 2,861.50 hanging fruit. Cheap, fast and efficient to November2025 $ 36,794.70 ' $ 1,839.74 produce and has constant visibility. December2025 $ 43,348.84 $ 2,167.44 AND $0 COLLECTED FROM UNLICENSED MERCH SALES ,..,.,.,r,,•,, ...„4.,„• .,, .- ,---,.---*, • .,.., ..,,.. CITY-CONTROLLED MERCHANDISING = $500K„ $1 M + NEW ANNUAL REVENUE ., 0 0104 Industry- standard royalties ,,,/ program merchandising „ - City-owned collections ,-, seasonal wholesale rates store + Official online . 0 into a legitimate sellers ' iit Bring unlicensed IIII , r a M rog integration wholesale p tourism , it, , + full , A ,.. I'llt 4.) Event pop-ups + kiosks 46' city B • ITS USA SURF ., _ CI� � ; , III at 7, . , LOW-EFFORT LOW RISK r HIGH—RETURN RETAIL - TOUCHPOINTS IN SPACES I, l'aa f WE ALREADY( OWN iduariau,,t, c i-<'Mrc � '. Art Center, libraries, City hall and more stocked with branded kiosks with art prints � � photography, and limited-edition merch 3: ' , Revenue-share with local artists & photographers }11 £�Ef3 . - Drop program (zero inventory risk) i 1:0,: ,.-, a ADDITIONAL $2soK-$sook/YEAR WITH MINIMAL OVERHEAD & RISK 4 r 481 K FILMHB FILMHB THE HUNTINGTON BEACH FILM & MEDIA OFFICE tie ` The Huntington Beach Film` Commission will be a city-run economic engine that attracts film, television, commercial, and � ' '• "�" digital productions to shoot locally. Its job is ` simple: make it fast, predictable, and cost- ,,, effective to film in Huntington Beach while .„ _ ensuring productions spend money locally, _ „........ .. V k hire local workers, and promote the city's 4 ,_ � � image on a global stage. p, This is not about art or publicity alone - it is '� , _ ,, about jobs, revenue, and international exposure. " " A modern film commission exists to convert - 0 . creative demand into measurable economic " ".x impact. ifirg FILMHB WE ARE SITTING CAN A GOLD MINE - .. � . .,...4-..,..11/4_ ANDNOTMININGIT. Iconic pier, beaches, Civic Center, Equestrian Center, ,e Pacific City, Sports Complex - hundreds of diverse locations in a compact footprint. Abilityto move fast and cut the red tape that slow P L.A. productions and frustrates producers. Current: modest fees, zero proactive outreach. Nils FILMHB BENCHMARKS Once Established $lOOk-$300k+ SAN FRANCISCO: $127k in permit fees Annual Direct Revenue (Permitting, Location Use, Parking, Etc) 1110 $17.5M in local spend Indirect Gains: OFF-SEASON ECONOMIC ACTIVITY mg I Hotels, restaurants, retail, local suppliers FORT WORTH: Ve-s") 800M in cumulative LOCAL JOBS c't"i'' Production Casts, Crew, and Support Services economic impact t POLICE/FIRE OVERTIME Covered by production fees ECONOMIC IMPACT Productions spend money locally on hotels, *** POP CULTURE RELEVANCE t. catering, crews, transportation, locations, -\\ _ Third-party advocacy and global exposure rentals, and city services. That spending creates a ripple effect across the local SI EARNED MEDIA & TOURISM LIFT economy while also generating tax revenue Year-round visitor interest through hotel stays, sales activity, and related business growth. W s CREATIVESERVICES CREATIVE DIRECTION WHAT WE'll BUILD 1.UNIFIED CITY BRAND DIRECTION Huntington Beach already has the identity, energy, and community pride. 2.CROSS-DEPARTMENT COMMUNICATION FRAMEWORK What it needs is the creative leadership 3.MODERN MEDIA&CONTENT INFRASTRUCTURE to bring those strengths together in a 4.CENTRALIZED MEDIA ASSET MANAGEMENT STANDARDS more unified, consistent, and effective 5.DEPARTMENTAL COORDINATION&WORKFLOW SYSTEMS way. This kind of leadership helps align departments, support staff, strengthen 6•PROACTIVE PRESS£r MEDIA STRATEGY partnerships, improve communication, 7.DIGITAL PRESENCE MODERNIZATION and create more opportunity across 8.CREATIVE STANDARDS&GOVERNANCE tourism, events, culture, business, and 9.TRAINING,SUPPORT&INTERNAL CAPACITY BUILDING civic life. By building systems, It it will 10.OPPORTUNITYDEVELOPMENTTHROUGHBETTERASSETUSE help the City show up with greater clarity, quality, and coordination so its existing assets can work harder for the people who live here. This is not about changing Huntington Beach. It is about better support, connecting, and elevating what is already here. a � a CREA VICES CENTRALIZED CREATIVE LEADERSHIP & MODERN kir .: m BRAND INFRASTRUCTURE is $ � . Unified messaging across every department Professional media standards trategy fit' �a�. !�' rt ' Content s Staff training + internship pipeline h �? Proactive press and influencer relationships :s$. 486 ''� i , • „ IN f W ra CREATIVE&BRAND I THE FIX: 4.4Z lc ; N` OII1ID • Centralized creative leadership and a,,r Il i� modern media infrastructure - l„ *� ; r • Consistent pipeline of positive, bi-partisan %ko.. ''°�'� i 'me community-centered stories •-... ► ,/4v`'' ' •,► • More efficient communication across ,7- ' almas'ndepartments and initiatives ''` Gnne fill ft �,wrintiOnS can th e black Support• a more complete and balanced _ . . ..• c r•ut144SMORl) : � public understanding of the city PROACTIVE BRAND MANAGEMENT • Reinforce civic. pride while improving regional and visitor perception A MORE BALANCED PUBLIC IMAGE • Ensure Huntington Beach is represented Huntington Beach is a high-visibility city, by more than its most polarizing moments which means public attention will not always be evenly distributed. Since Covid, RESULTS: coverage has often centered on conflict, • Stronger Tourism while many of the positive, unifying, and • Better Partnerships community driven parts of the city have • Renewed Civic Pride gone underrepresented. Proactive brand • Greater Business Attraction management helps close that gap by • Stronger Community Awareness creating the structure, relationships, and • Increased Visitor Confidence consistency needed to elevate a fuller • More Earned Media Value picture of Huntington Beach - one that • More Local Engagement better reflects its people, assets, culture, • Greater Cultural Visibility and quality of life. 46' CIVIC ASSET HBAC AN UNDER-LEVERAGED CULTURAL ASSET THAT COSTS THE CITY ABOUT HUNTINGTON BEACH ART CENTER $50 OK The Art Center should be a living cultural asset IN TAXPAYER FUNDS TO for Huntington Beach. Right now, it is falling short both in the value it delivers to local artists OPERATE ANNUALLY. and the community and in its ability to sustain itself as a civic asset. This is not a criticism of the artists or the local art community. The issue is WE HAVE ALL OF THE structural: the City has not built the systems, partnerships, promotion, and revenue pathways INGREDIENTS TO BECOME that allow artists, exhibitions, anc the public to SELF-SUSTAINING, OR EVEN get full value from the space. REVENUE GENERATING With stronger programming, better visibility, WHILE PROVIDING MORE collaboration, and better infrastructure, the Art Center could become a stronger civic asset, a VALUE TO OUR COMMUNITY. better platform for artists, and a more active part of Huntington Beach's brand and local economy. js CIVIC ASSET HBAC WHAT WE' RE MISSING Collaboration with neighboring cities, tourism I' 111Atbs partners, hotels and regional cultural groups to expand reach. A proactive press strategy that turns exhibitions into community stories and broader cultural visibility. H U N T I N GT O N BEACH ART CENTER A strong digital archive or online gallery presence to preserve shows and extend artist exposure. • hyt. . .,4:•,,•-,.,lifl ., 74:R (Residual value for artists after exhibitions end.These systems help artists H B ,4 turn visibility into audience growth,future opportunities,and sales) C <r. .- Built-in print sales, merchandise, and other A i revenue-generating mechanisms tied to exhibitions. ! Strategic partnerships that position the Art Center - . - ... �^--- as part of Huntington Beach's broader brand and _ _ri , , i .s. �-�" visitor experience. I Broader Community-facing infrastructure that . 4 . , 1 1 makes the space more visible, active, and utilized. `" A clear operational model that treats the Art Center as a civic asset, tourism touchpoint, and cultural ambassador. PraIII CIVIC ASSET HBAC //ALS Ask Ala AM E R I CAf S 250 ,,, ,,,,-0; 41.,,. . , i.,,, - As part of America's 250th celebration, Huntington :;: ...„ s,-• "-,.#'. -'!, f :,.''' '1.7 ' -;4.,.-Z Beach will host a major summer art exhibition featuring world-renownec, internationally exhibited it4eNttonSal'AtillgAreie3ra -.. artists and emerging local talent. Rooted in 0 e. HV v W t R 8U E3 evAlik"Vlio.4_0 mil Americana and infused with rock and roll, surf, TOPN GOEDWt/ 52.....: skate, and Huntington Beach culture, the show TS IN O M iconic pairs contemporary work with a curated VERTHERETELL . ,. . ,. i --+ display of Huntington Beach artifacts. Running ,,,--1.--a - S from Ju ne through July 20 (curing the Lagun a art vir 0-34-orter is 21! , festival season opening), the exhibition will also 11.4 A 0 ' - ..„. create mentorship opportunities for local artists and -4111PAIRMIll'7, 7 ,,', N f•st C) N G -41, 1--.01-ii____ . . - . ..... introduce limited-edition prints and merchandise ,P' EVERaLtiY ...... . ---- , 10 4: that generate value for the artists, the Art Center, and the City. 470 1 1 MINI & .' x 1 f `+ E IF Wili us AMERICA'S250TH ,� �' <. PARADE '°, ;� . � . d ' i!"- ' `" i 4 ;: .! - 4 .ate;v11�d',—, s 1 I N ITIATIVES . � r. ° -- . , , .., .;- . 4411';' . For America's 250th, we are working to elevate ' ', ' � ,— the Huntington Beach parade into a bigger, higher-impact civic celebration by converting , its existing scale and attendance into stronger `E A'`" sponsorship revenue and more meaningful community activations. That means more visual spectacle, more entertainment value, and more A Nik,reasons for people to stay, engage, and spend ,L.. = �n « � ` �' time downtown. Planned initiatives include enhanced floats, large-format parade balloons, premium sponsor-supported activations, and a „�-` . celebrity-hosted Hot Rod section that will roll into a Main Street car show after the parade - w extending the experience well beyond the . route itself and creating a larger cultural and ..y immiiiiiimio\ economic moment for the City. CIVICPATHWAYS C I v' C t PAT H \1IAYS' x ,„„, Huntington Beach is rich in talent, pride, 1 and industry - but we are losing our young people. Not because they don't love this city, but because we don't show ,Qe } them a clear future here. While Huntington Beach offers respected programs like Junior Lifeguards, Police Explorers, and volunteer opportunities, , ! these experiences are not structured as visible career pathways for everyone's , ( \ . interests. Wre�M if/ff. CIVICPATHWAYS CIVIC PATHWAYS � � , / ,:it , ra � x i The Civic Pathways Initiative changes , � c ,,,s that. It creates a structured bridge from k �_ school to meaningful local careers by $ s . turning civic engagement into internships, apprenticeships, and mentorships across city departments and partner industries - from public safety , g - 7:z : ''',1 ., ,_ ,.. and parks to media design, skilled trades, and film. By giving young residents real experience, real opportunities and a real reason to stay, Huntington Beach cant -- , retain its talent, strengthen its workforce, v -• . D� "h ,a� and invest in a generation that grows with the city instead of leaving it behind. f e ._.t . e ... __JmYld`.i...sro. 'n- A - ' Piffs CIVICPATHWAYS �'... HOMEGROWN TALENT .: f ,,,.... , ,, ,., KEEP OUR YOUTH IN HUNTINGTON BEACH a g u 3 City-wide internships and apprenticeships ' l \ across many departments Pathways from High School to local careers 8 1 lel Builds alongside current offerings of world- _ class existing programs (Junior Lifeguards, Police Explorers, Fire programs) ,. Creates generational ownership, reduces � E outsourcing, and strengthens the workforce .,tea." H .., ,, „ 19 I N GTO N B EAC .... , ..... ......, , .:„ „: ,. . .,, . . ......„:, ,.:::.,.. . .„.,„,,,.... .. BUIL T TH i S B PA „. , .. , , . „„.„, . , .. „ ..., _ ., ..... .., . . .„, .„. , . ., ., ... . ... „:. .„ ,,,:„. ... .. , , . ..„... „ , ... :i ,.. S y 2:.,.,: : . . ::,. . ME V E ,1,..„%iva... ..::: , ,__. :: ,.. . „ , ... .. , ., . „ ..., ,...,Et ,:: . .:PçLAIMED :...,,..,.,,, , .. , .. ,,,,,........ :.,„ ..s,„. IT'S VALUE . .41,„*.f4..:‘,..,:„ „.,,,,,,,., -4 ,.. 1: ., ,_ , i I _ , ,... , , , .,.„400..„ •, , fig+ '''''''441 '-it *11.4:':.°.Z—,,Al.t.. "'..7::',..':'l*i, ,,k.',',-!'-',4 f''''':, 44.;`,4:. Y or „, $- I. 'w .,. a d " azs 0gUS CREATIVELEADERSHIP ONGOING STRATEGIC ADVISORY SUPPORT O git O*170 4.6`40 v7-. REAL TIME GUIDANCE: CROSS DEPARTMENT RELATIONSHIPS & ALIGNMENT: EXPERTISE: On brand decisions, communications, and Unified messaging and Connects the city with emerging opportunities. coordinated efforts. high-value partners, media, and influencers RESULT: A STRONGER, MORE COHESIVE BRAND THAT DRIVES HIGHER TOURISM YIELD, BETTER PARTNERSHIPS, RENEWED CIVIC PRIDE, AND LONG-TERM ECONOMIC VALUE. 676 0117 CREATIVELEADERSHIP EQUIVALENT PRIVATE-SECTOR VALUE OF SERVICES PROVIDED Service/Deliverable Typical Private-Sector Cost Executive Creative Leadership+Strategic Advisory $250,000-$350,000+annually,plus employment liabilities Apparel&Merchandising Program Development $100,000-$120,000+ Film Management+Liaison Support $100,000-$120,000+ Account Management+Operations Support $70,000+annually,plus employment liabilities Website Strategy,Design,and Development(2 Sites) $65,000+ Comprehensive Brand Standards System $50,000-$75,000 Four Seasonal Merchandise Campaigns $80,000+($20,000 ea) Film Office Handbooks+Production Materials $15,000-$25,000 TOTAL ESTIMATED PRIVATE-SECTOR VALUE $730,000-$905,000+ THIS IS NOT A SINGLE-SERVICE ENGAGEMENT. IT IS EXECUTIVE-LEVEL LEADERSHIP, PROGRAM DEVELOPMENT, OPERATIONAL SUPPORT, CAMPAIGN CREATION, STAFF SUPPORT & RELATIONSHOP GROWTH BUNDLED INTO ONE INITIATIVE. From: bbenton955Ca�aol.com To: supplementalcomm@surfcity-hb.orq Subject: CC meeting April 7,2026 Date: Sunday,April 5,2026 5:09:09 PM You don't often get email from bbenton955@aol.com. Darn why this is important Re: Item 26-324 A service of this type is very costly to the City and therefore should be required to have competitive bids. It appears to be a "Luxury" our current and future budgets will not be able to accommodate. Bonnie Benton SUPPLEMENTAL COMMUNICATION MeetingDate: 4/7/2026 Item No. 22 (26-324) From: Tamara Colby To: suoplementalcomm(alsurfcity-hb.orq Subject: Professional Services Contract Between the City of Huntington Beach and Wolffhaus Date: Sunday,April 5,2026 9:47:37 PM Dear City Council: I am writing to oppose the Professional Services Contract Between the City of Huntington Beach and Wolffhaus for Brand, Media, Press and Digital Ecosystem Comprehensive Audit, Marketing, and Assessment Services for the following reasons: 1. The city needs to follow its own procurement policy and prepare an RFP for these services.Just having one individual who is personally connected to members of the council prepare a proposal is a conflict of interest and unethical. The RFP preparation process reduces conflict of interest, and ensures that service requirements are documented. In addition,this one simple step might resolve many of the issues that are detailed below. 2. The proposed scope of work is too broad, lacks definition of key requirements and is missing critical requirements. I recommend the city prepare an RFP only for branding and digital asset management(DAM)services.This should be the first step for the city, because it follows the procurement process, and is a better business and financial decision. This RFP should include IT services, software/hardware requirements, because brand management and DAM software applications have been available for a long time. A software application can provide automation, consistency, security, permissions management, role- based access, and workflow design. The software determines the standard workflow. I believe the RFP should focus more on IT, software implementation, integration,training and support.Again,these requirements should be documented in the RFP. And the city should seek a consultant that has at least ten years experience in this type of software integration and is a certified information systems security professional. 3. The HB Art Center does not belong in this scope of work: it is a non-profit with its own program planning and governance processes. The HBAC may be a consumer of any brand handbook or software platform once it is finished. 4. Any effort to commercialize art should be its own RFP, and/or should be developed with the collaboration of the major stakeholders, like vendors,VHB, the HB Art League and local commercial artists, etc. At any time, artists can form their own collective gallery space for sales. Many tourist locales have such galleries and these are collectively run with the help of one manager. The primary mission of the HBAC is not to commercialize art, but to provide educational and cultural programming for the public. 5. Another reason to have a procurement process is to gather all the requirements for branding/DAM policies, procedures and the software platform. The Wolffhaus proposal is missing many critical elements.The brand handbook should include city policies, standards, procedures, and also data loss protection, security, responsible use policy, privacy, and vendor management. The procedures need to have roles and responsibilities clarified, process steps defined, and for each step a matrix of who is responsible, accountable, consulted or informed. These are basic process controls thatare critical to any enterprise- wide policy and procedure that involves digital assets. As such,the city's communications director, IT director and other department managers need to be involved in this RFP process. 6. All merchandising activities should be done at a future date and not defined by a single consultant;thus, it needs its own RFP or consortium of parties. First and foremost,the branding issues need to be resolved. The city staff should identify key stakeholders, like VHB, and vendors (i.e. Roxy,Vans, O'Neil). All stakeholders can formalize a merchandising proposal. In addition, I do not think that turning the little store on the pier into a Surf City store is the best idea since the pier has always had a little store with lots of sundry,fishing,or toy items for the public. In sum,there are ethical,technical, security, and information technology reasons why this proposal should not be approved.This proposal covers many deliverables that have no requirements defined, and is missing critical requirements.As such any approval of this proposal would be wasteful, unethical, corrupt, and expose staff and the city to a problematic situation. Please go through the procurement process and prepare an RFP specifically on brand and digital asset management that includes IT requirements.Again,the procurement process is designed to give the taxpayers and staff a consistent, logical,transparent and fiscally responsible process for deciding how money is spent. Following the procurement policy ensures a better outcome and saves the city money. Tamara Colby From: Carol D. To: supplementalcomm(alsurfcity-hb.org;CITY COUNCIL(INCL.CM0 STAFF);Hopkins,Travis Subject: In Opposition of Agenda#22,26-324 Date: Sunday,April 5,2026 11:28:42 PM Dear Mayor McKeon and City Council Members, I am deeply opposed to Agenda#22, which would allow Wolffhaus to provide professional services for up to two years for: "Brand, Media,Press and Digital Ecosystem Comprehensive Audit, Marketing and Assessment Services." From the prior meeting in February that introduced Wolffhaus to HB citizens, you stated that he was just providing an audit. There was no discussion about his firm handling the implementation of his findings. For more than three decades I was involved in marketing communications/media relations for the nonprofit and corporate sectors, so I was very curious about what I'd find in Tyler Wolff s reports. His proposal and audit left me with more questions than answers. What are his qualifications?Does he have prior work experience with municipalities in these roles?If so, where?when?How big is his team and what are their qualifications in these specific areas? Or will he be using subcontractors and if so,who are they?Did he provide references, beyond simple quotes?I also noticed through my paid AI verification programs that much of his report was written by AI. We all use AI as a tool, but when used too extensively it can yield misleading information,which I found to be the case when reading his comparisons to other cities. Since the scope of his proposed work is vast(branding, merchandising,media, marketing, etc), how will you possibly measure success? $30,000 per month/$720,000 for the two-year contract is a risky undertaking,particularly when hiring somebody who doesn't have expertise in brand management for a city our size. Please follow the city code and prepare an RFP in order to obtain the best talent for these services. In January 2024,when former HB Mayor and Council Member Mike Posey approached you to contract with LS&S to privatize the HB public library system, you conducted a study session for several months and then prepared an RFP. You need to follow the same steps here. I also recall when the Canadian company behind the Festival of Flowers approached you,the council did not utilize an RFP to find the best company to produce a light show in Central Park. Thankfully,that did not come to fruition because the company ended up going bankrupt. Please table this item for now and handle it using the proper procurement method with multiple bids. There are some excellent firms in Orange and LA counties that are better suited for this very important consulting role. Thank you, Carol Daus Huntington Beach resident From: Janet Bean To: supplementalcomm(asurfcity-hb.orq Subject: Fwd:Agenda Item#22 26-324. Date: Monday,April 6,2026 8:18:17 AM [You don't often get email from janetbeandesigns@gmail.com.Learn why this is important at https://aka.ms/LearnAboutSenderldentification] >I am writing regarding the agenda item for April 7th council meeting. Webster could replace the written definition of nepotism and just use this as an example. >When a city is in a budget crisis,you don't hire a firm at a ridiculous rate of pay for a long term. Whoever got this unfair,unethical deal,flagrant with nepotism,on the agenda,is not doing what is in the best interest of the city,but only in the best interest in lining the pockets of devout supporters. >Kinda like the deal that was made for the disaster on the pier. November cannot come quick enough. So many people I talk to feel they made a huge mistake in their vote last time and it will show at the polls. >I hope we see some sanity on Tuesday night and that we see NO Votes on this. The optics are so clear and disturbing. >Janet Bean >Sent from my iPad From: Amanda Shepherd Yoga To: suoplementalcomm(@surfcity-hb.orq Subject: No to$30k PR Campaign Date: Monday,April 6,2026 10:32:17 AM You don't often get email from arnandashepherdyoga@gmail.corn.Learn why this is important Namaste, /s/ Amanda Shepherd :) e: amandashepherdyoga@gmail.com From: Amanda Shepherd Yoga To: suoplementalcommCa)surfcity-hb.orq Subject: No to Wolffhaus PR Contract at This Time Date: Monday,April 6,2026 10:50:45 AM You don't often get email from amandashepherdyoga@gmail.com.!earn'why this is important To Whom it May Concern: Any contracts to redirect Huntington Beach's perception in the media should not be considered until after the next election. It's the choices of the current council that have rendered our city, "the Florida of CA", even though the actual constituent make up is far more purple than we are perceived. In the meantime,there are simple things HB can do to repair reputational damage, like rehanging the pride flag in June and stopping attacks on our library system. Actions go farther than words. Thank you for your consideration. Sincerely, /s/ Amanda Shepherd 20982 Seacoast Circle Huntington Beach, CA 92648 Namaste, /s/ Amanda Shepherd :) e: amandashepherdyoga@gmail.con From: Cathev Ryder To: suoalementalcomm(alsurfcity-hb.orq Subject: 4/7 Agenda Item#22 Strongly Oppose Date: Monday,April 6,2026 11:05:10 AM To all HB City Council Members, I strongly oppose the approval of Agenda Item#22. Where is the RFP?A contract this large ,over multiple years, deserves the upmost scrutiny. How much municipal branding experience does this company have?Where is the company website and what type of business license does it have?What I have read so far raises more questions than answers., Shame on you for not being more fiscally responsible, Cathey Ryder HB Homeowner and Voter since 1985. Cathey Ryder " Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence." Helen Keller From: Erin Spivey To: 5upoIementalcommPsurfcity-hb.orq Subject: Agenda Item 22 Date: Monday,April 6,2026 1:33:02 PM [You don't often get email from erinisalibrarian@gmail.com.Learn why this is important at https://aka,ms/LearnAboutSenderldentificatiorl] Dear City Council and City Staff, I am writing to oppose Agenda Item 22:approval of professional services by Wolffhaus. 1.A contract of this size,$720,000 over two years,should go through a public bidding process. 2.There is no point in addressing a PR issue until the underlying causes are addressed.For example,ending the segregation of puberty book in the library.Until negative causes are resolved there is no point in addressing the negative effects. 3.This deal appears to be cronyism.Perhaps it isn't!But it is an ethical city council's job to avoid even the APPEARANCE of impropriety. As ever, Erin Spivey Lifelong resident Candidate for City Council Sent from my iphone,please excuse any typos From: stephanie erickson To: sunalementalcomm(@surfcity-hb.orq Subject: Resolution No.2026-07 Weed,rubbish,and refuse/Wolfhause Date: Monday,April 6,2026 1:53:30 PM You don't often get email'from smerickson2016@gmail.com.Learn why this is important # 1 Weeds are growing up against the backyard block fences of residents on Cascade Street, and Caltrans will not completely clear the weeds and lay cement so the weeds do not grow back after a few months. This resolution should add a#4 holding outside county or private companies responsible for the removal of their weeds,rubbish, and refuse. There have been fires in the Cascade area caused by these weeds in the past. Public works,the mayor, and HBPD know of this problem, and it is the city's responsibility to ensure Caltrans takes care of their crap that grows next to the block walls of HB residents. #2 Has the city interviewed any other Brand,Media,Press, and Digital Ecosystem Comprehensive Audit,Marketing, and Assessment Service companies?If you have the list, it should be listed somewhere for the public to see. Stephanie Erickson From: Kris Walker To: suoolementalcomm(alsurfcity-hb.orq Subject: 22(26-324)Wolffhaus contract Date: Monday,April 6,2026 1:54:57 PM Attachments: WolffhouseEndorsement26.docx 11 . You don't often get email from walkerkris@bellsouth.net..learn why this is important „ To whom it may concern, Attached is a letter of endorsement for the subject of consideration of use of Wolffhaus. Sincerely, Kris Walker RAM Technology Branch Chief Aviation and Missile Center(AvMC) Combat Capabilities Development Command(DEVCOM) FCDD-AMR-SR art: 256-655-5085 UNCLASSIFIED To the Council Members of Huntington Beach, I have had the opportunity to partner with Wolffhaus over 10 years across a range of ventures in the nanotechnology and automotive industries. In that time, they have consistently delivered high-impact/cost effective work that strengthened our brand presence and transformed our products from commercially viable offerings into a recognized and respected name within the market. Within our nanotechnology group, Wolffhaus played a critical role in shaping our identity and growth trajectory. Their work extended far beyond traditional creative services— they developed a comprehensive brand foundation, led the full creative strategy, and executed across merchandising, influencer partnerships, and vendor negotiations. This level of ownership and execution significantly accelerated our expansion and positioned us for long-term success. Tyler Wolff of Wolffhaus exemplifies what it means to be a high-level professional. He brings a rare combination of strategic insight and creative vision, with an ability to quickly identify challenges and deliver effective, results-driven solutions. His leadership and attention to detail consistently translate into measurable creative brand impact. Just as important is Tyler's deep commitment to community. I have personally witnessed him going above and beyond business as usual—fostering collaboration, building lasting partnerships/friendships, and creating opportunities that truly bring people together. This genuine dedication sets him apart, making him not only an exceptional business partner but also a major impact on his community. • In my background, I bring over 25 years of experience working within the Department of Defense and the automotive industry, and I currently serve as the Reliability Technology Branch Chief at the Aviation and Missile Command at Redstone Arsenal, Alabama. Based on my experience, I am confident that Wolffhaus would be a strong and impactful addition to the Huntington Beach community in any capacity. Respectfully, Kristin Walker RAM Technology Branch Chief Aviation and Missile Command From: tjengland4lCa�yahoo.com To: SuaplementalcpmmPsurfcity-hb.orq Subject: Wolffhaus"Brand,Media,Press and Digital....,Audit,Marketing, etc" Date: Monday,April 6,2026 1:49:26 PM I totally disapprove of you hiring Tyler Wolf,your former political protege,to quote"improve the international reputation of Huntington Beach"at$30k a month.Who is responsible for our loss of tourism trade due to the negative publicity the City Council member has repeatedly caused?This cronyism ties into Kevin Elliot's previous raid of our city treasury.How much money will Mr Wolff make off of Surf City merchandise alone?This idea reeks to high heaven of corruption.Don't do it! From: Richard McNeil To: suaalementalcomm(@surfcity-hb.orq;CITY COUNCIL(INCL.CMO STAFF) Subject: Agenda Item 26-324 WolffHaus/Supplemental Communications Date: Monday,April 6,2026 2:11:22 PM You don't often get email from spankyc64@gmail.corn Learn why this is important Dear Honorable Council Members, I am a lifelong resident of HB and a 30 year plus homeowner/taxpayer. I urge you to vote no on agenda item 26- 324 to approve a contract between city and WolffHaus Creative.At the very least,table this item for now and open an RFP to allow competitive bids. There is scant information available on Wolffhaus, beyond its principal's marketing work on motorsports, liquor and music video production.There is no indication in the proposal that they have any experience in city management or branding.Their web domain was only registered a year ago and has been lingering in"coming soon"limbo since then. The project proposal and slideshow have the appearance of Al generated content,which is confirmed after running them through detection software. Combined with lack of any history of successfully managing similar projects,this should be a huge red flag.Ties to current city leadership are even more troubling and another reason to initiate RFP to avoid the appearance of conflict. Recent history shows that jumping into contracts with little due diligence leads to costly outcomes.Taxpayers are on the hook for the$100K light show EIR and fees related to that case,which still has not been settled. Information was publicly available before the SOF contract was signed that the promoter was in dire financial straits and facing bankruptcy. Many residents raised concerns, but were ignored. Three quarters of a million dollars dwarfs the SOF debacle. Please make the fiscally responsible choice this time around. Respectfully, Richard McNeil From: Frakes,Sandie To: sunolementalcommCalsurfcity-hb.orq Subject: FW:Agenda Item#22:Wolffhaus Marketing Contract Date: Monday,April 6,2026 2:12:55 PM From:dfgbentley@gmail.com<dfgbentley@gmail.com> Sent: Monday,April 6, 2026 2:12 PM To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org>;city.manager@surfcity-hb.org Subject:Agenda Item#22:Wolffhaus Marketing Contract Some people who received this message don't often get email from dfgbentleygmail,com.Learn why this is important The City Council is proposing to award a$720,000 sole source contract to Wolffhaus, an organization with no discernible track record in the areas of"brand, media, press and digital ecosystem marketing." WHY, after your council has been involved in a series of shady deals with your cronies(Pacific Airshow and Symphony of Flowers,for instance)would you risk yet another embarrassment or lawsuit?? WHY NOT put out a standard RFP to make sure you get the best marketing company?? Oh, and WHY isn't this marketing effort part of the responsibilities of Visit HB,the organization that you're paying millions of dollars to bring attention,tourism and revenue to HB?? This smells of your usual cronyism and self-dealing, and it's especially suspicious when it comes immediately before election season!! Diane Bentley 25-year HB resident From: Taryn Palumbo To: supplementalcomm( surfcity-hb.orq Subject: Comments on Agenda Item#22:26-324 Presentation of Professional Services Contract Between the City of Huntington Beach and Wolffhaus for Brand,Media,Press and Digital Ecosystem Comprehensive Audit,Marketing, and Assessment Services for City Council... Date: Monday,April 6,2026 2:41:07 PM Attachments: HB Council Letter Wolffhaus Ooposition.docx.pdf • [You don't often get email from taryn4hb@gmail.com.Learn why this is important at https://aka.ms/LearnAboutSenderidentification] Good Afternoon, Please find attached my supplemental communication in response to Agenda item#22 on the City Council agenda. Thank you, Taryn Palumbo Candidate,Huntington Beach City Council April 6, 2025 Honorable Mayor and Members of the City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: OPPOSITION—Agenda Item: Professional Services Contract Between the City of Huntington Beach and Wolffhaus for Brand, Media, Press and Digital Ecosystem Comprehensive Audit, Marketing, and Assessment Services Dear Mayor and Councilmembers, I am writing as a candidate for Huntington Beach City Council and as a resident and taxpayer to formally oppose the proposed professional services contract with Wolffhaus for brand, media, press, and digital ecosystem audit, marketing, and assessment services. While I understand the need for this work, I am compelled to be direct: the reputational damage this contract seeks to address was created by the decisions and conduct of this City Council. Huntington Beach residents should not be asked to pay to repair a problem of the Council's own making. The Council Created This Problem Huntington Beach's brand and reputation did not deteriorate on their own. Over the past several years, a series of high-profile decisions by this Council—including actions that drew national and international media scrutiny—have undermined public confidence in our city and damaged the image of Huntington Beach on a scale that now apparently requires a paid outside consultant to address. The Council's choices generated the headlines. The Council's choices invited criticism. It is neither fair nor fiscally responsible to now ask residents and taxpayers of this city to pay for the City's rehabilitation. Accountability Before Expenditure Before the City spends taxpayer dollars on brand rehabilitation, the Council owes residents a candid accounting of which specific decisions and actions contributed to the reputational damage this contract is meant to remedy. Without that acknowledgement, approving this contract sends the message that the Council can create a crisis, hand the cleanup bill to the public, and move on without consequence. That is not leadership—it is an abdication of accountability. What Is Visit Huntington Beach For? I am also unclear how this contract works with and/or aligns with the goals and interests of VisitHB. Visit HB exists as the City's designated destination marketing organization. Brand development, reputation management, media presence, and digital ecosystem strategy are core to its stated mission. The City already funds Visit HB for precisely the kind of work this contract proposes to commission from an outside vendor. Before approving this contract, I would like to know: Has Visit HB been asked to perform this work? If so, why was that deemed insufficient? If not, why not?Approving this contract without addressing the overlap would mean Huntington Beach residents are potentially paying twice for the same function. That is not fiscally responsible, and it demands a clear, public explanation. Unresolved Questions About Cost. Scope, and Vendor Selection Even setting aside the fundamental questions of accountability and redundancy, this contract raises serious additional concerns that have not been adequately addressed: •Was a public Request for Proposals (RFP) issued for this contract? Did the City receive and formally evaluate competing bids before selecting Wolffhaus, or was this vendor chosen without a competitive process? If no public RFP was conducted, the Council must explain why—and whether that decision complies with the City's own procurement policies. -What is the total contract value, from which fund will it be paid, and has this expenditure been budgeted—or does it require a budget amendment? •How does this scope of work differ from what Visit HB is already contracted and funded to provide? Has a formal analysis of that overlap been conducted? •What specific, measurable outcomes are expected, and how will the City evaluate whether the investment delivered results? 'Will the audit findings and all deliverables be released publicly, or will any portion be shielded from residents? •What provisions exist to protect the City if performance benchmarks are not met? A Better Path Forward The best way to rehabilitate Huntington Beach's brand is not to hire a marketing firm—it is to address the decisions that created a negative reputation in the first place. Before taxpayer dollars are spent on a PR campaign, I suggest looking at what decisions could be made internally by the City Council to address the root causes of concerns this Council is trying to fix. The residents of Huntington Beach deserve a city government that takes responsibility for its decisions. They deserve transparency about how their money is spent. And they deserve leaders who understand that no marketing campaign can substitute for good governance. For these reasons, I respectfully but firmly urge the Council to vote NO on this item. This letter is submitted for the public record. Respectfully submitted, Taryn Palumbo Candidate, Huntington Beach City Council Huntington Beach, CA Taryn4HB.com From: Michele Buroess To: supplementalcommCalsurfcity-hb.orq Subject: Comments for Agenda Item 22,File 26-324,City Council meeting 4/7/2026 Date: Monday,April 6,2026 3:01:31 PM Presentation of Professional Services Contract Between the City of Huntington Beach and Wolffhaus for Brand, Media, Press and Digital Ecosystem Comprehensive Audit, Marketing, and Assessment Services for City Council Consideration This should never have been brought forward without going through a full and public RFP process and getting competitive bids. An astronomical $30,000 per month for 2 years is a ridiculous- amount to spend on attempting to repair our city's trashed reputation due to the culture war actions of this city council, and to help replenish the coffers after wasting millions on endless lawsuits that go nowhere. It reeks of cronyism, lack of transparency, and perhaps even kickbacks. We are still reeling from the Code 4/Pacific Airshow fiasco, and the close call with the now bankrupt Symphony of Flowers. Wolffhaus — no working web site, they have done no projects for cities of similar size but have done work with celebrities and retail brands, they have done promo videos for Code 4/Kevin Elliott, Tyler Wolffhaus is Ceason Baker's boyfriend (nepotism). What could go wrong? We already spent $30,000 on Wolffson's audit, no need to add another $720,000 to the exorbitant cost. The Chamber of Commerce and HB Visitors Bureau can do a lot of this. Or maybe hire a qualified city employee who could do the job for less than three-quarters of a million dollars we don't have. VOTE NO ON THIS AGENDA ITEM! Michele Burgess HB resident since 1961 From: Vanessa Naliq To: stmolementalcommPsurfcity-hb.orq Subject: 4/7/2026 Agenda item 26-324 Date: Monday,April 6,2026 3:08:03 PM You don't often get email from nallevanessa@gmail.corn.J earn why this is important Hello HB City Council members, Many of you know me, and you are aware that if I am in contact regarding an agenda item that caught my eye, it is for a good reason. Regarding agenda item 26-324,please consider this my official opposition to the approval of the proposal submitted by Wolffhaus. As a resident and taxpayer, I am concerned that the cost of this proposal is extraordinarily high and not commensurate with the credentials or past performance demonstrated on Mr. Wolff's website. Furthermore,the deliverables remain vague, and the monthly rate matches that of high-end prestige agencies with far more notable experience and client pedigrees. To ensure proper due diligence, I request that the Council provide to myself and any other interested Huntington Beach residents the following before any vote for approval: -An opportunity forreview of the alternative proposals considered. -Disclosure of any potential conflicts of interest or connections between city officials (including family members) and Tyler Wolff. -Evidence of a competitive RFP process to identify more cost-effective avenues for these services. There are many qualified community members in this field who could provide objective consultations on alternatives.Has the Council reached out to any other local professionals for their expertise? Until the community can see evidence of a transparent and thorough vetting process, I urge the Council not to approve this proposal prematurely. Thank you, Vanessa Nalle From: Elizabeth SanFilippo • To: supplementalcommPsurfcity-hb.org;CITY COUNCIL(INCL.CM0 STAFF) Subject: Item 26-324 Date: Monday,April 6,2026 3:18:35 PM As a home owner and long term resident, I am opposed to hiring a public relations consultant. There are better uses of taxpayer funds to benefit our city. Thank you for your consideration. Elizabeth SanFilippo From: Tina Viray To: supplementalcomm(alsurfcity-hb.orq Subject: Re:Automatic reply:WOLFFHAUS REPORT REGARDING SURF CITY STORE Date: Monday,April 6,2026 4:28:42 PM Attachments: WOLFFHAUS REBUTTAL.docx 1 You don't often get email from tinaviray@verizon.net.Learn why this is important Attached is a reply to the report that was submitted to council by Wolffhaus, that includes reference to the Surf City Store. The report is being presented at the April 7 council meeting. The report contains so many inaccuracies, I believe is it important that you see the reality. We have worked so hard for the City to create and promote a logo that has really caught on with locals and visitors alike. We look forward to continuing the relationship with the recently approved contract renewal. Thank you for your time and consideration, Tina Viray Owner Surf City Store Huntington Beach Pier On Monday,April 6, 2026 at 04:09:30 PM PDT, City Council AutoReply<city.council.autoreply@surfcity- hb.org>wrote: This is an automatic message.Thank you for contacting the City of Huntington Beach City Council. This message has been received by all members of City Council. If your communication is a comment regarding a City Council meeting agenda item, note that those communications will only be received by supplementalcomm@surfcity-hb.org. Communication must be received by 5:00PM on Monday prior to the City Council meeting. City Council Office 714-536-5553 SURF CITY STORE Honorable Council members, I have just been made aware of a report submitted by Tyler Wolf, of Wolffhaus to the Council that has been placed on the April 7 agenda. I have read the report in detail and feel it is necessary to correct many inaccuracies. I am only addressing those issues related to merchandising and The Surf City Store. • This report claims to be an audit; however, Mr. Wolf did not consult with anyone associated with the Surf City Store. I'm sure such a discussion would have led to vastly different conclusions. • We have partnered with the City for over thirty years. We have placed millions of trademarked products worldwide. We not.only promote the logo, but as Ambassadors to the City we support local schools, charities, and organizations such as Sister City. • The city's trademark, Surf City, Huntington Beach has been protected, although the City let the trademark lapse. I sent notification with a recommendation to renew it and noted that under Common Law Trademark Protection we would continue to enforce the trademark by consistent use of the trademark in our local geographic marketplace. • While Wolffhaus notes an overwhelming infringement of the trademark, that is not the case. We constantly monitor and report to the City any infringement. Knowledge of trademark law would allow an understanding that if the trademark is modified it cannot be enforced as infringement. • We have also, without fee, consented to the City's use of my trademarked graphics on any non-merchandising applications, i.e. uniforms, signage, stationery, etc. • As far as comparing our 600 sq ft space with sales from national brands or other larger cities, it is the classic apples to oranges comparison. In a direct comparison of other Huntington Beach Concessionaires, we consistently outperform gross sales. • Under Structural Risk: The fee has doubled. We place ads in local news as well as online. We are currently partnering with a local Surf Camera for ad placement. Our website is currently under redesign with a local firm. We are audited by City contractors and never have a problem. Missed retail outlets, we were licensed by the City over 30 years ago, because their attempt to place products with local retailers did not work. Creatively, we launch new artwork, designs, and novelties routinely. Although we have been successful for over 30 years we don't rest on our past. • The Surf City, Huntington Beach logo with the board graphics has been successful because we made it so. Given the inaccuracies and omissions of this report, any estimates or recommendations lack factual basis. Thank you, Tina Viray From: Jan Madnick To: suoplementalcomm@)surfcity-hb.orq Subject: wolfhaus contract Date: Monday,April 6,2026 4:41:55 PM To City Council and Staff, I'm frankly incredulous that after the many issues you've already had with deciding to spend OUR TAX DOLLARS on such projects as The Symphony of Flowers with a vendor which you failed to properly vet(who went bankrupt), you would approve an extremely expensive contract with Tyler Wolff without an RFP. In fact,how do you think it's responsible governing to not even entertain bids on this idea? I imagine there are many firms here in HB who do the same work who would be happy to submit an RFP. We do pay VHB to do basically the same thing----so why aren't they? This smacks as cronyism--which has been typical of your time on the City Council. Why not actually do things the right way for a change? With all of the infrastructure needs in this city,it's hard to see how you'll justify this huge contract when,actually, our reputation could improve if you stop making us the CA MAGA city and actually act in the best interest of HB instead of yourselves. Here's hoping you decide to do things the right way, Jan Madnick 44 year resident. From: (rakes.Sandie To: suoolementalcomm( surfcity-hb.orq Subject: FW:Agenda Item#22 Date: Monday,April 6,2026 4:48:24 PM Original Message From:Suzanne Hart<hb.diva@yahoo.com> Sent:Monday,April 6,2026 4:41 PM • To:CITY COUNCIL(INCL:CMO STAFF)<city.council@surfcity-hb.org> Subject:Agenda Item#22 [Some people who received this message don't often get email from hb.diva@yahoo.com.Learn why this is important at https://aka.ms/LearnAboutSenderldentificatiort] Dear City Council, Regarding agenda item 22,please follow the proper procurement methods by utilizing an RFP. Thank you for your consideration, Chris and Suzanne Hart Sent from my iPhone From: Pat Goodman To: McKeon,Casey;CITY COUNCIL(INCL.CMG STAFF);supolementalcommColsurfcity-hb.orq Cc: Hopkins,Travis Subject: APril 7,2026 Agenda Item#22 Please Table This Item Date: Monday,April 6,2026 4:49:03 PM Dear Mayor Mckeon and City Council, I am writing regarding Item 22 on the upcoming agenda— the proposed professional services contract with Wolffhaus for city branding and marketing services, valued at up to $720,000 over two years. I have several concerns and questions I hope the Council will consider before approving this contract. Before approving this contract, I urge the Council to raise these questions and request answers from staff by some future date: 1. Require clarification on how the City will coordinate with VHB, and any issues around the trademark license agreement. 2. Request a complete, finalized Exhibit A which identifies City positions responsible for this project and clear accountability structures i.e. hours, hourly rate, reimbursable expenses. 4. Have City legal staff review contract Item 14 to include Trademark and Intellectual Property, and identify VHB as the registered owner of Surf City USA. How will this ownership impact this project's outcome? 5. How does the contractor's private sector experience translate to the complex public-private landscape of municipal destination marketing. 6. Establish an RFP process for this contract. This will provide the public with some level of transparency and independence for the council. It also provides the opportunity for the best possible product. 7. The consultant's audit identified that 75%-80% of 100 sampled media stories about Huntington Beach were negative or political rather than reflective of Huntington Beach's businesses, events, and coastal culture. The Council has direct influence over this media coverage. While recent efforts by Mayor McKeon to promote a more positive civic narrative at the beginning of council meetings, the underlying causes of negative media coverage must be addressed. These include ongoing contentious and unnecessary litigation, disruptions to public library operations, instability among boards and commissions, transparency concerns related to the Pacific Airshow settlement and Symphony of Flowers, conduct at public meetings, and claims of election fraud. None of these issues promote civic pride or good governance. A branding strategy will only be as effective as the governance it represents. I look forward to your discussion of this item. Pat Goodman Huntington Beach, CA From: Benjamin P Davis To: supnlementalcommCalsurfcity-hb.orq Subject: Opposition to Agenda Item 22 for 04/07/2026 Council Meeting Date: Monday,April 6,2026 4:57:30 PM You don't often get email from benpdayis2025@gmail.cpm.Learn why thisis important Dear Mayor and Members of the City Council, I respectfully urge you to reject Agenda Item 22 concerning the proposed professional services agreement with Wolffhaus. A contract of this magnitude warrants a transparent, competitive bidding process to ensure public trust and fiscal responsibility. Moving forward without such a process raises legitimate concerns about fairness and invites questions that could easily be avoided. Even the perception of preferential treatment can erode confidence in city leadership, and it is the Council's responsibility to uphold not only ethical conduct but also the appearance of integrity in its decisions. More importantly, investing in public relations efforts before addressing the underlying issues affecting the City's reputation is premature. Challenges such as controversial policy decisions and community concerns should be resolved at their source rather than reframed through marketing. Even Wolffhaus's own presentation notes that a key concern is that most high visibility press is political or controversy-focused and this hurts tourism,the economy, and civic pride. Charging more for logos on t-shirts won't fix these problems caused by decisions of the Council. Until those root causes are meaningfully addressed, allocating significant taxpayer funds toward image management risks being ineffective and misdirected. A more responsible approach would prioritize substantive policy improvements first, ensuring that any future communications efforts reflect genuine progress rather than attempting to compensate for unresolved issues. Ben Davis Candidate, Huntington Beach City Council Switzer, Donna From: Mary Ann Celinder <macelinder@gmail.com> Sent: Tuesday, April 7, 2026 8:31 AM To: supplementalcomm@surfcity-hb.org; CITY COUNCIL(INCL. CMO STAFF) Subject: Repairing your brand This council came in with an agenda meant to divide us.You've lost several law suits to check your power.You've embarrassed the city with your culture wars. It should not be the responsibility of the citizens to pay for a branding company to repair the reputation YOU destroyed. Fix the infrastructure, do things for the people, not yourselves. It's not our problem to try to make you look good for the coming election. You deserve to be replaced. Mary Ann Celinder 21341 Fleet Lane Huntington Beach Ca 92646 studio 714 962 8361 cell 714 504 8361 www.customleadedglass.com 1 Switzer, Donna From: Tuni Chatterji <tunichatt@gmail.com> Sent: Tuesday, April 7, 2026 8:13 AM To: supplementalcomm@surfcity-hb.org Subject: In opposition of Agenda #22 26-324 You don't often get email from tunichatt@gmail.com. Learn why this is important Dear City Council, There has been no discussion about this marketing/branding money grab with local taxpayers -wolffhaus is unknown and for a city of our caliber is most likely not a good fit for us. $30,000 per month/$720,000 for the two-year contract is a risky undertaking, with no rfp process. Please follow the city code and prepare an RFP in order to obtain the best talent for these services. VisitHB already spends millions to do this work for our city. Please table this item for now and handle it using the proper procurement method with multiple bids. This city council has already spent too much taxpayer money on things that could have been avoided. No more shadiness please. -Tuni Chatterji Taxpayer in HB i Switzer, Donna From: Frakes, Sandie Sent: Tuesday, April 7, 2026 7:52 AM To: supplementalcomm@surfcity-hb.org Subject: FW: Surf City Store on the pier issue. From:William Hennerty Jr.<billhennerty@yahoo.com> Sent: Monday,April 6, 2026 6:56 PM " To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org> Subject:Surf City Store on the pier issue. Dear Huntington Beach City Council, I am writing to express my deep disappointment regarding the recent situation involving the Surf City store located on the pier. All of you know what is happening as it happened with the bait shop. It is troubling to hear that misinformation is being circulated about the store, and that some individuals may be using that misinformation to build support for a new operator. This is unfair not only to the current owners, but also to the community members who value the history and presence of this business. What is even more concerning is the possibility that the city did not properly notify the owners before allowing this situation to escalate. The current owners deserve transparency, respect, and the opportunity to respond directly to any concerns. The store is part of Huntington Beach's identity and should not be disrupted because of rumors, outside pressure, or political maneuvering. Please leave the store alone and allow the current owners to continue serving the community they have been part of for years. Enough is enough. Our local businesses deserve fair treatment, open communication, and protection from misinformation. We don't need new operators with bad reputations and campaigns on Facebook to gain support for their grift. 1 Thank you for your time, Bill Hennerty PS: Bud and Sally Westcott along with their partners have successfully ran the store for many years. This should be tabled. Who is this Tyler Wolf? Someone's bf? New Husband? What was promised? How did this get on the agenda? The entire thing stinks and I hope all of you do a deeper dive on this. Let's table this until all CC Members are back. 2 Switzer, Donna From: Frakes, Sandie Sent: Tuesday,April 7, 2026 7:52 AM To: supplementalcomm@surfcity-hb.org Subject: FW:Table Agenda item#22- 26-324 From: Cathy Haro<oceanhb@gmail.com> Sent: Monday,April 6, 2026 10:49 PM To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org> Subject:Table Agenda item#22-26-324 Dear City Council, Please table Agenda item 22-26-324! We need to find other solutions that do not cost exorbitant amounts of money. Cathy Haro HB92648 From Huntington Beach insider(below). I'm going to piggyback on Larry McNeely's post: I hope our community takes the time to either write letters or attend tomorrow's council meeting and ask that this agenda item be tabled.We're talking about$750,000 of taxpayer money, and that deserves full transparency and careful review. Can anyone direct me to Tyler Wolf's professional profile and qualifications? "Here is an item that was added to the next City Council Agenda on 4/7/2024,Agenda item #22 26-324. This item is to pay an outside company$30,000 per month to oversee our city promotions and review our marketing efforts for the next 24 months.This amounts to$720,000 in fees. Do we not have city staff who can review this in-house?We already have Visit-HB promoting our city, and Matt Leffering is helping promote everything our city does.Why would we pay someone to do this job?Something is fishy about this, because it seems like a gift for his help in promoting who gets elected to our city council, much like the$7 Millon Air Show settlement for an oil spill we did not cause. Are our city coffers so rich that we can pay someone to do a job that we could easily cover with the staff we already have?Could this money be better spent on improving our streets and services that benefit everyone in our city? When it looks like a GRIFT, we need to investigate why we need this, and bring it before the full city council once Butch Twining has recovered from his bypass surgery, and then bring it back for a vote from i the full city council. Maybe I am out of touch, thinking$720,000 is a lot of money? But at$30K a month, it is a sizable sum for a part-time job. 2 Switzer, Donna From: Suzanne Fauria <suzydf16@gmail.com> Sent: Tuesday, April 7, 2026 7:51 AM To: supplementalcomm@surfcity-hb.org Subject: No on Item 22 You don't often get email from suzydf16@gmail.com. Learn why this is important Dear City Council, Please table or vote NO on this overpriced project until further studied!We voted for you to be good stewards of our city's finances. Even the hint of favoritism will not be tolerated in this contentious climate. Thank you for listening to your constituents on this issue. Suzy& Brett Fauria 415 Townsquare Downtown 1 Switzer, Donna From: Cathy Haro <oceanhb@gmail.com> Sent: Monday, April 6, 2026 11:05 PM To: supplementalcomm@surfcity-hb.org Subject: Fwd:Table Agenda item #22- 26-324 You don't often get email from oceanhb@gmail.com. Learn why this is important Forwarded message From: Cathy Haro <oceanh_b@g_mail.com> Date: Mon, Apr 6, 2026 at 10:48 PM Subject: Table Agenda item#22- 26-324 To: <city.council(@surfcity-hb.org> Dear City Council, Please table Agenda item 22-26-324! We need to find other solutions that do not cost exorbitant amounts of money. Cathy Haro HB92648 From Huntington Beach insider(below). I'm going to piggyback on Larry McNeely's post: I hope our community takes the time to either write letters or attend tomorrow's council meeting and ask that this agenda item be tabled. We're talking about$750,000 of taxpayer money, and that deserves full transparency and careful review. Can anyone direct me to Tyler Wolf's professional profile and qualifications? "Here is an item that was added to the next City Council Agenda on 4/7/2024, Agenda item #22 26-324. This item is to pay an outside company$30,000 per month to oversee our city promotions and review our marketing efforts for the next 24 months.This amounts to $720,000 in fees. Do we not have city staff who can review this in-house?We already have Visit-HB promoting our city, and Matt Leffering is helping promote everything our city does.Why would we pay someone to do this job?Something is fishy about this, because it seems like a gift for his help in promoting who gets elected to our city council, much like the$7 Millon Air Show settlement for an oil spill we did not cause. Are our city coffers so rich that we can pay someone to do a job that we could easily cover with the staff we already have?Could this money be better spent on improving our streets and services that benefit i everyone in our city? When it looks like a GRIFT, we need to investigate why we need this, and bring it before the full city council once Butch Twining has recovered from his bypass surgery, and then bring it back for a vote from the full city council. Maybe I am out of touch, thinking$720,000 is a lot of money? But at$30K a month, it is a sizable sum for a part-time job. 2 Switzer, Donna From: Kathy Dowling <kathyldowling@msn.com> Sent: Monday, April 6, 2026 10:08 PM To: supplementalcomm@surfcity-hb.org Subject: Wolffhaus Contract You don't often get email from kathyldowling@msn.com. Learn why this is important This is a ridiculous Al written proposal from a Company with a horrid Website! A firm no on this proposal!This is another inane proposal by this City Council! Get Outlook for iOS i Switzer, Donna From: Clay Allison <allisondca@gmail.com> Sent: Monday, April 6, 2026 10:03 PM To: CITY COUNCIL (INCL. CMO STAFF); supplementalcomm@surfcity-hb.org Subject: Agenda Item#22 You don't often get email from allisondca@gmail.com. Learn why this is important You need to table Agenda Item#22 until the matter is fully studied. A$30,000 per month obligation is not trivial (just under the amount requiring an RFP, I understand...very convenient). That almost 3/4 of a million dollars over 2 years,when the city if already in financial straits. That money could be more properly spent on failing infrastructure. Also, I have tried to verify this company, Wolffhaus, and it's proprietor Tyler Wolff. The Orange County court system shows NO DBA with either the company or Mr. Wolff, and the California Secretary of State shows NO LLCs, etc. under either name/company either. Without registration, this "company" is not eligible to enter into a government contract. Should this be pursued, an investigation and lawsuit will invariably follow. This reeks of improper disbursement of city financial resources in some "pay-back" or"pay-to-play" scheme. Have you learned nothing from the misadventures of unscrupulous individuals like Keith Bohr? Or is this yet another instance to more of the same. After all, Mr. Bohr was given overwhelming favor in his latest dealings with this council and his business deal for his bar on the pier. Before you make a colossal error, reconsider and put the job (which should be rightly done by city staff and Visit HB...this WAS their purpose)through a correct, lawful and transparent bidding process. Clay Allison i