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HomeMy WebLinkAboutCouncil Discussion on the Origin and Procurement Process of Nip To, 2000 Main Street, o e Huntington Beach,CA 6 _ _ City of Huntington Beach FAILED 34$0 „, yF \�oe� (KENNEDY,TWINING,McKEON, ccouNT' t BURNS-NO) File #: 26-379 MEETING DATE: 4/21/2026 REQUEST FOR CITY COUNCIL ACTION Subject: Item Submitted by Councilman Williams and Councilman Gruel - Council Discussion on the Origin and Procurement Process of the City Asset and Revenue Audit and the proposed $720,000 Wolffhaus Agreement Recommended Action: Refer to City Council Memorandum (included as Attachment#1). Attachment(s): 1. Williams, Gruel - Origin and Procurement Process of the City Asset and Revenue Audit and Proposed Wolffhaus Agreement Memo 2. Huntington Beach Brand & Systems Audit& Report 3. Proposed Professional Services Agreement from 4/7 City Council Meeting City of Huntington Beach Page 1 of 1 Printed on 4/17/2026 City Council/Public Financing ACTION AGENDA April 21,2026 Authority 27. 26-373 Item Submitted by Mayor McKeon to Create a City Council Ad Hoc Committee to review and make recommendations on the Request for Proposals for the Creative Strategy, Branding, Merchandising, Media, Communications, and Film Industry Development Systems Recommended Action: Create a City Council Ad Hoc Committee consisting of three Council Members to review the process, received proposals and provide a recommendation on the approach for this project. Ad Hoc Committee- Twining, Kennedy, Burns Approved 4-3-0 (Gruel, Van Der Mark, Williams - No) NEW 26-379 Item Submitted by Councilman Williams and Councilman Gruel - Council Discussion on the Origin and Procurement Process of the City Asset and Revenue Audit and the proposed $720,000 Wolffhaus agreement Recommended Action: Refer to City Council Memorandum (included as Attachment#1). Motion to consider terminating Request for Proposals (RFP) for Creative Strategy, Branding, Merchandising, Media, Communications, and Film Industry Development Systems. Failed 3-4-0 (Gruel, Van Der Mark, Williams- Yes) (Kennedy, Twining, McKeon, Burns- No) ADJOURNMENT- 11:53 PM The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, May 5, 2026, in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIUPUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov Page 9 of 9 to csk---I---- tie CITY OF �i .,x,11 HUNTINGTON BEACH 2 �Q,, CF,N v C��F .-^- City Council Meeting - Council Member Items Report To: City Council From: Chad Williams, Councilman Andrew Gruel, Councilman Date: April 21 , 2026 Subject: COUNCIL DISCUSSION ON THE ORIGIN AND PROCUREMENT PROCESS OF THE CITY ASSET AND REVENUE AUDIT AND THE PROPOSED $720,000 WOLFFHAUS AGREEMENT REQUESTED ACTION City Council discussion item regarding the origin, development, and procurement of the City Asset and Revenue Audit performed by Wolffhaus and the subsequent proposed $720,000 Professional Services Agreement. This item will provide Council Members the opportunity to ask questions and receive information on how this matter was initiated and advanced. Additionally, this item will take into consideration a vote to terminate or reconfigure the approach for the RFP for: Creative Strategy Branding Merchandising, Media, Communications and Film Industry Development Services. ENVIRONMENTAL STATUS Not applicable. STRATEGIC PLAN GOAL Not Applicable —Administrative Item ATTACHMENTS 1. Huntington Beach Brand & Systems Audit & Report 2. Proposed Professional Services Agreement from 4/7 City Council Meeting 2000 Main Street,Huntington Beach,CA 92648 I www.huntingtonbeachca.gov w woLFFHAus HUNTINGTON BEACH BRAND & SYSTEMS AUDIT & REPORT Draft V4. I Presented for: Travis Hopkins, City Manager, Huntington Beach, CA 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 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 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 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 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 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 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 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 current 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 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 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 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 In recent years, there appears to be limited collaboration and few high-impact joint initiatives between the current DM0 (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 • 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 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 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 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 years, 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 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 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 regularly 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 rNY" 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 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 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 $1M+ 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 • 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 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 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 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 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 8800 million cumulative impact,recent annual-$18) • Tennessee Entertainment Commission 2025 Economic Impact Report($8.2 billion in entertainment production clusters for 2024,including film/TV) • FilmLA 8 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 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 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 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 • 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 Aduals&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 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 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 $1M-$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 • 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 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 LISA,local news,2025-2026-18,000-22.000 participants,tale sponsor 08200K) • Macy s Thanksgiving Day Parade sponsorship revenue benchmarks(Licensing International and event industry reports) 34 • Rose Parade and regional 4th of July event financial summaries(Pasadena Tournament of Roses,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 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: Civic Pathways 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 • 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 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 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 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 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 ofa 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 3 of 17 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 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 "B 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 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 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 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 copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. I I. 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 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 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 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 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 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 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 Page 15 of 17 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 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 CONSULTANTs 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. I-- 7,- eial�N'INS9~ nA U S 9 vl\' "/ REQUEST FOR PROPOSAL FOR CREATIVE STRATEGY,BRANDING,MERCHANDISING,MEDIA, COMMUNICATIONS,AND FILM INDUSTRY DEVELOPMENT SERVICES City Manager's Office CITY OF HUNTINGTON BEACH Released on April 13,2026 SUPPLEMENTAL COMMUNICATION Meeting Date: 4/21/2026 Item No. 26-379 CREATIVE STRATEGY, BRANDING, MERCHANDISING, MEDIA, COMMUNICATIONS,AND FILM INDUSTRY DEVELOPMENT SERVICES REQUEST FOR PROPOSAL (RFP) 1. INTRODUCTION The City of Huntington Beach ("City"), City Manager's Office, invites qualified firms/vendors to submit proposals to provide Creative Strategy, Branding, Merchandising, Media, Communications, and Film Industry Development Services. The City is committed to ensuring that all programs, services, and activities are accessible to individuals with disabilities. Accordingly, accessibility requirements are integrated into this solicitation/RFP and any resulting contract. 2. BACKGROUND The City of Huntington Beach requests proposals from qualified creative firms with proven track records in building and managing a full brand economy and eco systems that will elevate the City and positively impact revenue streams by implementing creative strategies, boost branding, grow merchandising infrastructure, and provide methods and systems to increase citywide film permitting and production opportunities. The City desires experienced creative firms with established relationships in media, film, and multicultural art to help optimize citywide assets and further build the City brand economy. Interested firms may submit proposals for any specific creative aspect(s)or all aspects presented in this RFP. 3. SCHEDULE OF EVENTS This request for proposal will be governed by the following schedule: Release of RFP April 13, 2026 Written Questions Due By April 17, 2026, by 4:00 pm Responses to Written Questions Posted April 21, 2026, by 4:00 pm Proposals are Due April 27, 2026, by 4:00 pm Proposal Evaluation Completed May 1, 2026 Contract Award May 5, 2026 4. SCOPE OF WORK The City desires creative, unconventional, cutting-edge approaches and strategies to maximize the development of Huntington Beach into a premier coastal city brand economy by increasing public perception,tourism, visitor spending, new business attraction, product development, staff training, merchandise infrastructure, media, communications, sponsorships, special events, and fully leverage film permitting production opportunities. 2 The City invites creative firms to freely propose strategies that will build overall brand strength and include technical methodology approaches to achieving these new goals and opportunities not yet defined in our traditional style of government operations. The City seeks creative firms to discover through a new lens the many ways to close opportunity-lost identity and revenue gaps and capture added value for all the community assets that include pristine beaches, parks, historical buildings, cultural landmarks, art center, museums, and engaging community events. The City requests firms to propose creative ideas with an achievable technical approach to meet and exceed the goals described in the Scope of Work. Interested firms may submit proposals for any specific creative aspect(s) or all aspects presented in this RFP. These creative aspect items may include but are not limited to: • Creative strategy and branding • Merchandising & licensing • Film industry development • Special events and sponsorships • Media and communications procedures and best practices 5. DIGITAL ACCESSIBILITY REQUIREMENT To the extent applicable, all deliverables shall comply with: • Web Content Accessibility Guidelines (WCAG) 2.1 Level AA Firms should incorporate WCAG 2.2 requirements where feasible. 6. PROPOSAL FORMAT GUIDELINES Interested creative firms are to provide the City of Huntington Beach with a thorough proposal using the following guidelines: Proposal should be typed and should contain no more than 20 typed pages using a 12-point font size, including transmittal letter and resumes of key people,but excluding Index/Table ofContents, tables, charts, and graphic exhibits. Each proposal will adhere to the following order and content of sections. Proposal should be straightforward, concise and provide "layman" explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the offer. Proposals,which appear unrealistic in the terms of technical commitments, lack of technical competence or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected. The following proposal sections are to be included in the bidder's response: A. Vendor Application Form and Cover Letter Complete Appendix A, "Request for Proposal-Vendor Application Form" and attach this form to the cover letter. A cover letter, not to exceed two pages in length, should summarize key elements of the proposal and the firms overall creative approach. An individual authorized to bind the firm/consultant must sign the letter. The letter must stipulate that the proposal fee/cost will be valid for a period of at least 180 days. Indicate 3 the address and telephone number of the firms office located nearest to Huntington Beach, California and the office from which the project will be managed. B. Technical Approach and Project Summary Section The Technical Approach and Project Summary Section should describe your understanding of the City, the creative approach for the work to be done, and the objectives to be accomplished. Refer to Scope of Work in this RFP. C. Methodology Section Provide a detailed description of the creative approach and methodology to be used to accomplish the Scope of Work in this RFP. The Methodology Section should include: 1) An implementation plan that describes in detail (i)the methods, including controls by which your firm manages creative projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work. 2) Detailed description of efforts your firm will undertake to achieve client satisfaction and to satisfy the requirements in the "Scope of Work" section. 3) Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion. 4) Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work. D. Staffing Firms must designate a senior executive level creative director for the term of this project/ professional services agreement. Additionally, firms must provide a list of individual(s) who will be working on this project and indicate the functions that each will perform. Include a resume for each designated individual. Upon award and during the contract period, if the firm chooses to assign different personnel to the project, the firm must submit their names and qualifications including information listed above to the City for approval before they begin work. E. Qualifications The information requested in this section should describe the qualifications of the firm, key staff and sub-Firms performing projects within the past five years that are similar in size and scope to demonstrate competence to perform these services. Information shall include: 1) Key staff-Names of key staff that participated in named projects and their specific responsibilities with respect to this Scope of Work. 2) Firm summary - A summary of the your firm's demonstrated creative capability, including length of time that your firm has provided the varitey of creative services being requested in this RFP. 3) Provide at least three (3) references that received similar creative services from your firm. Preference will likely be given to experienced creative firms wit established relationships in media, film, and multicultural art. 4) The City of Huntington Beach reserves the right to contact any of the organizations or individuals listed. Information provided shall include: • Client Name • Project Description • Project start and end dates • Client project manager name, telephone number, and e-mail address F. Fee/Cost Proposal Creative firms are required to submit a fee proposal that includes a rate sheet/fee schedule. 7. PROCESS FOR SUBMITTING PROPOSALS All proposals must be submitted in PDF file format. • Content of Proposal The proposal must be submitted using the format as indicated in the proposal format guidelines. • Preparation of Proposal Each proposal shall be prepared simply and economically, avoiding the use of elaborate promotional material beyond those sufficient to provide a complete, accurate and reliable presentation. • Number of Proposals Submit one (1) PDF file format copy of your proposal in sufficient detail to allow for thorough evaluation and comparative analysis. • Submission of Proposals Complete written proposals must be submitted electronically in PDF file format via the Planetbids.com website no later than 4:00 p.m. (P.S.T)on April 27, 2026. Proposals will not be accepted after this deadline. Faxed or e-mailed proposals will not be accepted. • Inquiries Questions about this RFP must be directed in writing through the PlanetBids Q&A tab no later than 4:00 p.m. (PST)April 17, 2026,for response. From the date that this RFP is issued until a creative firm is selected and the selection is announced, firms are not allowed to communicate for any reason with any City employee other than the contracting officer listed above regarding this RFP. No questions other than written will be accepted, and no response other than written will be binding upon the City. • Conditions for Proposal Acceptance This RFP does not commit the City to award a contract or to pay any costs incurred for any services. The City, at its sole discretion, reserves the right to accept or reject any or all proposals received as a result of this RFP, to negotiate with any qualified source, or to cancel this RFP in part or in its entirety. All proposals will become the property of the City of Huntington Beach, USA. If any proprietary information is contained in the proposal, it should be clearly identified. 5 8. EVALUATION CRITERIA The City's consultant evaluation and selection process is based upon Qualifications Based Selection (QBS) for professional services. The City of Huntington Beach may use some or all of the following criteria in its evaluation and comparison of proposals submitted. The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to indicate their relative importance: A. Compliance with RFP requirements B. Understanding of the project—technical approach C. Recent experience in conducting similar scope,complexity,and magnitude for other clients D. Educational background, work experience, and directly related creative consulting experiences E. Fee/Cost F. References The City may also contact and evaluate the creative firms references; contact any bidder to clarify any response; contact any current users of a bidder's services; solicit information from any available source concerning any aspect of a proposal; and seek and review any other information deemed pertinent to the evaluation process. The City shall not be obligated to accept the lowest priced proposal, but shall make an award in the best interests of the City. After written proposals have been reviewed, discussions with prospective firms may or may not be required. If scheduled, the oral interview will be a question/answer format for the purpose of clarifying the intent of any portions of the proposal. The individual from your firm that will be directly responsible for carrying out the contract, if awarded, should be present at the oral interview. A Notification of Intent to Award may be sent to the vendor selected. Award is contingent upon the successful negotiation of final contract terms. Negotiations shall be confidential and not subject to disclosure to competing vendors unless an agreement is reached. If contract negotiations cannot be concluded expediciously and successfully, the City may negotiate a contract with the next highest scoring creative firm or withdraw the RFP. 9. ACCESSABILITY COMPLIANCE REQUIREMENTS The selected firm will be required to enter into a contract that includes the following accessibility provision: "Firms shall ensure that all applicable digital content, systems,platforms,and deliverables comply with Web Content Accessibility Guidelines(WCAG)2.1 Level AA and shall incorporate WCAG 2.2 requirements where feasible." 10. STANDARD TERMS AND CONDITIONS • Amendments The City reserves the right to amend this RFP prior to the proposal due date. All amendments and additional information will be posted to the Huntington Beach 6 Procurement Registry, Huntington Beach -Official City Web Site - Business - Bids& RFP's; bidders should check this web page daily for new information. • Cost for Preparing Proposal The cost for developing the proposal is the sole responsibility of the bidder. All proposals submitted become the property of the City. • Contract Discussions Prior to award, the apparent successful firm may be required to enter into discussions with the City to resolve any contractual differences. These discussions are to be finalized, and all exceptions resolved within one (1) week from notification. If no resolution is reached, the proposal may be rejected, and discussions will be initiated with the second highest scoring firm and so on. See Exhibit B for a sample agreement. • Confidentiality Requirements The staff members assigned to this project may be required to sign a departmental non- ' disclosure statement. Proposals are subject to the Freedom of Information Act. The City cannot protect proprietary data submitted in proposals. " ♦ Financial Information The City is concerned about bidders' financial capability to perform, therefore, may ask you to provide sufficient data to allow for an evaluation of your firm's financial capabilities. • Payment by Electronic Funds Transfer—EFT: The City requires that payment be made directly to the vendor's bank account via an Electronic Fund Transfer(EFT)process. Banking information will need to be provided to the City via an Electronic Credit Authorization form. A City Representative will provide the Electronic Credit Authorization form upon award. Vendor will receive an Electronic Remittance Advice with the payment details via email. It is solely the responsibility of the vendor to immediately notify the City of any change to their information related to payments. • Insurance Requirements City Resolution 2008-63 requires that licensees, lessees,and vendors have an approved Certificate of Insurance (not a declaration or policy) on file with the City for the issuance of a permit or contract. Within ten (10) consecutive calendar days of award of contract, successful bidder must furnish the City with the Certificates of Insurance proving coverage as specified in Appendix B. Failure to furnish the required certificates within the time allowed will result in forfeiture of the Proposal Security. Please carefully review the Sample Agreement and Insurance Requirements before responding to the Request for Proposal enclosed herein. The terms of the agreement, including insurance requirements have been mandated by City Council and can be modified only if extraordinary circumstances exist. Your response to the Request for Proposal must indicate if you are unwilling or unable to execute the agreement as drafted as well as providing the insurance requirements. The City will consider this in determining responsiveness to the Request for Proposal. 7 11. CONCLUSION The City seeks to partner with vendors/firms who are committed to delivering high-quality, accessible services. The City is committed to full compliance with the Americans with Disabilities Act(ADA)and all applicable accessibility laws and standards. Accessibility is a core requirement of this solicitation and will be considered throughout the evaluation and contract performance process. 8 APPENDIX A REQUEST FOR PROPOSAL VENDOR APPLICATION FORM TYPE OF APPLICANT: ❑ NEW ❑ CURRENT VENDOR Legal Contractual Name of Corporation: Contact Person for Agreement: Corporate Mailing Address: City, State and Zip Code: E-Mail Address: Phone: Fax: Contact Person for Proposals: Title: E-Mail Address: Business Telephone: Business Fax: Year Business was Established: Is your business: (check one) ❑ NON PROFIT CORPORATION ❑ FOR PROFIT CORPORATION Is your business: (check one) ❑ CORPORATION ❑ LIMITED LIABILITY PARTNERSHIP n INDIVIDUAL ❑ SOLE PROPRIETORSHIP PARTNERSHIP ❑ UNINCORPORATED ASSOCIATION 1 oft Names& Titles of Corporate Board Members (Also list Names&Titles of persons with written authorization/resolution to sign contracts) Names Title Phone Federal Tax Identification Number: City of Huntington Beach Business License Number: (If none, you must obtain a Huntington Beach Business License upon award of contract.) City of Huntington Beach Business License Expiration Date: 2 of References of Work Performed Form Comany Name: 1. Name of Reference: Address: Contact Name: Phone Number: Email: Dates of Business: 2. Name of Reference: Address: Contact Name: Phone Number: Email: Dates of Business: 3. Name of Reference: Address: Contact Name: Phone Number: Email: Dates of Business: APPENDIX B PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOR 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 , a hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to ; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, 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 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. agree/surfnedprofessional svcs mayor I of 11 12/07 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"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Dollars ($ ). 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 of Exhibit "B." agree/surfnet/professional svcs mayor 2 of I 1 12/07 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 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 hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 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 agree/surfnet/professional svcs mayor 3 of 11 12/07 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. 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 effect 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. agree/surfnet/professional svcs mayor 4 of II 12/07 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 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 agree/surfnet/professional svcs mayor 5 of 11 12/07 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. 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 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. agree/surfnet/professional svcs mayor 6 of II 12/07 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 ATTN: 2000 Main Street Huntington Beach, CA 92648 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 agree/surfnet/professional svcs mayor 7 of 11 12/07 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 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. agree/surfnet/professlonal svcs mayor 8 of 11 12/07 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 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. agree/surfnet/professional svcs mayor 9 of 11 12/07 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. CONSULTANT's initials 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 understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. agree/surfnet/professional svcs mayor 10 of 11 12/07 CONSULTANT, CITY OF HUNTINGTON BEACH, a municipal corporation of the State of COMPANY NAME California Mayor By: print name City Clerk ITS: (circle one)Chairman/PresidentNice President INITIATED AND APPROVED: AND By: print name ITS: (circle one)Secretary/Chief Financial Officer/Asst. Secretary-Treasurer REVIEWED AND APPROVED: City Manager APPROVED AS TO FORM: City Attorney agree/surfnet/professional svcs mayor 11 of 11 12/07 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: C. CITY'S DUTIES AND RESPONSIBILITIES: D. WORK PROGRAM/PROJECT SCHEDULE: EXHIBIT A EXHIBIT"B" Payment Schedule(Hourly Payment) A. Hourly Rate CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule: B. Travel Charges for time during travel are not reimbursable. C. Billing All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month's bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A copy of memoranda, letters, reports, calculations and other documentation prepared by CONSULTANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: 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. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 1 Exhibit B 5. 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. 2 Exhibit B EXHIBIT "B" Payment Schedule(Fixed Fee Payment) 1. CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. 2. Delivery of work product: A copy of every memorandum, letter, report,calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 3. CONSULTANT shall submit to CITY an invoice for each monthly progress payment due. Such invoice shall: 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 CONSULTANTs 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. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 4. 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. Exhibit B PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOR Table of Contents 1 Scope of Services 1 2 City Staff Assistance 2 3 Term; Time of Performance 2 4 Compensation 2 5 Extra Work 2 6 Method of Payment 3 7 Disposition of Plans, Estimates and Other Documents 3 8 Hold Harmless 3 9 Professional Liability Insurance 4 10 Certificate of Insurance 5 11 Independent Contractor 6 12 Termination of Agreement 6 13 Assignment and Delegation 6 14 Copyrights/Patents 7 15 City Employees and Officials 7 16 Notices 7 17 Consent 8 18 Modification 8 19 Section Headings 8 20 Interpretation of this Agreement 8 21 Duplicate Original 9 22 Immigration 9 23 Legal Services Subcontracting Prohibited 9 24 Attorney's Fees 10 25 Survival 10 26 Governing Law 10 27 Signatories 10 28 Entirety 10 29 Effective Date 11 APPENDIX C CITY OF HUNTINGTON BEACH Phone: 714-374-5373 E-mail: RMinsurance(c�surfcity-hb.orq Insurance Requirements vary for different applicants.Please see the below listed applicant types followed by the insurance requirements. City of Huntington Beach Resolution 2008-63 requires that contractors,permittees,licensees/lessees and vendors have an approved Certificate of Insurance on file with the City of Huntington Beach for the issuance of any permit or city contract. The insurance certificate must be approved by the City Attorney's Office as to meeting all of the city's insurance requirements. An original certificate is required or a PDF version attached to an email may be forwarded. If the insurance certificate is faxed,it must come directly from the insurance provider to the City of Huntington Beach.All insurance must be from a California admitted carrier with a current A.M. Best's Rating of no less than A:VII 1.CONTRACTORS—Any persons or entities or Contract with the City and/or provide service to the City which are readily available and efficiently procured by competitive bidding. Requirements: General Liability, Workers'Compensation,Auto Liability,Additional Insured Endorsements 2.DESIGN PROFESSIONALS-Professional Service contractors who contract with the City and/or provide architectural and/or engineering services to the City. Requirements:Errors and Emissions(Professional Liability)$1,000,000 coverage 3.LICENSEES/LESSEES—any person or entities who make contract with the city for the use of public property. Requirements: General Liability, Workers'Compensation, Property Insurance(full replacement costs with no coinsurance penalty provision),Additional Insured Endorsement 4.PERMITEES—any persons or entities who make application to the City for any use of encroachment upon any street,waterway,pier,or City property. Requirements: General Liability, Workers'Compensation,Auto Liability,Additional Insured Endorsements 5.PROFESSIONAL SERVICES—means those services,which involve the exercise of professional discretion and independent judgment on an advanced or specialized knowledge,expertise or training gained by formal studies or experience or services which are not readily or efficiently procured by competitive bidding pursuant to Huntington Beach Municipal Code Section 3.02.Such Services shall include but not be limited to those services provided by appraisers,architects,attorneys,engineers,instructors,insurance advisors,physicians and other specialized consultants. Requirements:Errors and Omissions(Professional Liability)$1,000,000 coverage Private Property Work Permit Requirements—If the planned work does not involve public property or its right-of-way(e.g.sidewalk/street),the Workers'Compensation Certificate is the only insurance requirement. However,if the work site is adjacent to or attached to public property,the City Attorney's Office must be informed for consideration of liability and decide whether or not to approve the certificate with a specific"Private Property Only"approval stamp. ➢ General Liability(G/L)—The general liability requirement is for$1,000,000 with"per occurrence"type claims coverage and a separate"Additional Insured Endorsement"page listing both the policy number and naming the"City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers"as additional insured on the endorsement. (see below for Additional Insured requirements) > Additional Insured Endorsement Requirements—The City,its officers,elected or appointed officials,employees,agents and volunteers are to be specifically named and covered as additional insureds by separate attached endorsement(s)as respects liability arising out of action performed by or on behalf of the contractor,products and completed operations of the contractor,premises owned,occupied or used by the contractor,or automobiles owned,leased or borrowed by the contractor.The coverage shall contain no special limitations on the scope of protection afforded to the City,its agents,officers and employees. The endorsement should include the policy number it correlates to. ➢ Primary Insurance—General Liability Insurance coverage shall be primary insurance as respects the City,its agents,officers,and employees.Any insurance or self-insurance maintained by the City,its agents,officers,and employees shall be excess of the submitted insurance and shall not contribute with it. ➢ Description of work—The staff contact and purpose of the evidence of coverage must be identified on the certificate of insurance. ➢ Automotive Insurance—Automobile insurance requirement is for$1,000,000 and a separate "Additional Insured Endorsement"page listing both the policy number and naming the"City of Huntington Beach, its officers, elected or appointed officials, employees,agents and volunteers" as additional insured on the endorsement.Permittees who do not use vehicles or equipment in connection with the permit can request to waive the Auto insurance requirement. ➢ Worker's Compensation Insurance(W/C)—As required by the State of California,with Statutory Limits and Employer's Liability Insurance with a limit of no less than$1,000,000 per accident for bodily injury or disease. Certificate holder listed on the certificate is: City of Huntington Beach,2000 Main St.,Huntington Beach,CA 92648. If your organization/company has no compensated employees working on the project,you may complete and return a"Non-Employer Status"form to be used in lieu of a W/C insurance certificate. > Cancellation Clause Notice—The cancellation clause must contain a thirty(30)day notice. A ten (10)day notice for non-payment of premium is acceptable in combination with 30 day notice. ➢ Professional Liability—Coverage must be provided at a minimum of$1,000,000 per occurrence and in the aggregate. > Deductibles—The following deductibles are acceptable and all others must be removed from the insurance policy or a waiver can be requested(No allowances for SIR): o General Liability-$5,000 o Auto Liability -$1,000 o Professional Liability/Errors&Omissions-$10,000 ➢ Waiver Procedure—If unable to comply with a requirement,the"INSURED"may request a waiver of a specific requirement. The Insurance Waiver form is an internal form that the City of Huntington Beach will complete.(see following page for waiver form) The exception to the waiver is the G/L&Auto"Additional Insured Endorsement"page. Waiver Procedure To request a waiver,indicate here❑and provide a brief description( 1—2 sentences)of the proposed work/project,its dollar value(if not a specific dollar amount,use an average,annual estimate or non-profit)and projected timeframe(per job or as-needed basis). For substantial dollar deductible/SIR amounts,a financial statement is required(Balance Sheet, Budget Reports,Dun&Bradstreet Report,etc.). Waiver Requested: Encroachment Permit❑ Private Property Work Permit❑ Consultant Services Other: Proposed Work: Dollar Value: Projected Timeframe: From: Tom McDaniel To: suoolementalcommtsurfcity-hb.orq Subject: Request for Continuance—Huntington Club Project Date: Thursday,April 16,2026 8:26:01 AM Attachments: Exhibit A-THC Rules&Regulations 2026.odf rxhiblt B-THC Section 1.3(b)Detailing membership rlahts.odt Exhibit C-THC Updates to the Rules&Regulations 2026,odf rxhiblt D-THC email dated Feb.7.2026-Camaraderie Clubs to Members.odf ,1 You don't often get email from tr.ranch@gmaii.com,I earn why this is important : a - Dear Mayor McKeon, I presented at the March 17 hearing on the Huntington Club project in support of the appellants. As a long time resident of Huntington Beach and member of the Huntington Club, I want to share these further observations on the project for your consideration now because I will be out of the State for the April 21 continuance hearing on the project. I truly appreciated your questions at the March 17 hearing regarding how and who the lodging component would be operated by and integrated with the club's existing facilities and operations. The attached letter expands on those concerns and highlights areas where the operational framework and relationship between the land owner and the operating manager remains unclear. In short, the letter requests a further continuance so that key gaps in the record—particularly around construction phasing, operational planning, and financial analysis of the bungalow/loft component of the project—can be addressed before a final decision. Please find attached my letter regarding The Huntington Club project, along with supporting materials referenced in the letter. Thank you for your time and consideration. Tom McDaniel April 2, 2026 Dear Mayor and Members of the City Council, I attended and provided testimony at the March 17 public hearing regarding the proposed project by Golf Realty Fund to demolish and replace the existing tennis, fitness, and swimming facilities, and to construct member/guest bungalows, an access road, and loft units atop the new tennis clubhouse. In my testimony, I raised concerns regarding health and safety risks and the significant negative impact on member experience and retention during a prolonged construction project within an active operating tennis/pickleball and fitness operation.) also shared my direct experience from another private club where similar guest bungalow facilities proved to be both a financial and operational failure. Member utilization was low, occupancy rates were insufficient to cover operating costs, and the units were ultimately sold. I am writing to expand upon those concerns and to respectfully urge the City Council to broaden the record in three key areas before making a final decision on this project. Membership involvement in the planning process. On March 16 Huntington Club members received an email from Club Management requiring approval of updated 2026 Rules and Regulations by April 30, 2026—effective March 16, the day before the March 17 City Council hearing. These communications state that approval is needed by April 30 to maintain active membership status and club privileges (Exhibit A). Importantly, the updated Rules and Regulations, Section 1.3b ( Exhibit B), explicitly states that, as a non-equity and non- participatory club, members have no rights or standing with regard to Club operations or capital project decisions. This section cites that" The Owner and Club Management have the right to make any and all the facilities unavailable for use for some period of time, due to construction of improvements, health and safety concerns, repairs, government order or other reasons In their sole discretion, and Members shall not receive any abatement of dues during such periods of unavailability". A March 16 communication to members, ( Exhibit C ) lists the specific changes to the Rules & Regulations; but, makes no disclosure whatsoever about the proposed project or the significant impact on membership health and safety,facility availability and reduced amenities over a long and complicated infill construction project. When viewed in context of the proposed project, these provisions take on far greater significance and raise serious concerns regarding transparency and member awareness. Bungalow/Loft Management- Questions raised at the March 17 hearing regarding the operational responsibility for the proposed bungalow and loft components of the project remain unresolved. A February 7, 2026 communication (Exhibit D), from Club Management to members makes clear that: • Club Management does not endorse the land owner's assertions regarding the economic viability of the bungalow/access road and loft components of the project. • Club Management has no financial interest in, nor obligation to operate, the bungalow/loft components of the project. • Club Management states their primary focus has been to compel the property owner to fulfill a long-standing contractual obligation to rebuild the pool and upgrade fitness facilities, obligations that do not include bungalows and lofts. During a long and disruptive period of construction, Club Management will bear the burden of operating the tennis/pickleball and fitness facilities. A situation presenting members with construction safety risk, periods of extended facility closure and significantly reduced Club amenities. Membership attrition would be the likely response with a commensurate negative impact on operating margins. Thus, the lack of any formal input from the Club Operator in this process, particularly the bungalow/loft elements, is concerning and warrants further review. In summary, because club members have no formal standing in decisions regarding Club operations or capital investment, we must look to the City Council to ensure that all relevant impacts are fully evaluated. These include: • Health and safety risks associated with extended construction in an active recreational setting •The financial viability and member benefit of the proposed bungalow and loft components of the project • The absence of a clearly defined operational plan during a multi-year " infill " construction project For these reasons, I believe the record underpinning a decision on this project needs to be expanded and the City Council should direct the Owner and Club Manager to develop plans and analysis covering the following areas. 1. Construction Phasing and Safety Plan A detailed plan outlining construction sequencing, safety protocols, and measures to protect members, guests, and surrounding residents. This should include clear timelines for facility closures and the extent of reduced access to club amenities. 2. Bungalow/Loft Member Demand and Financial Viability Analysis An independent assessment of member demand for guest bungalows/lofts, supported by a formal economic assessment of their financial viability taking into consideration occupancy expectations ( member survey ), operating costs and projected economic benefit to the City. 3. Operational Continuity Plan A comprehensive plan developed jointly by ownership and Club Management detailing how tennis, pickleball, and fitness operations will be maintained during construction. This should include mitigation strategies for reduced amenities, anticipated membership attrition, and potential financial impacts, including dues increases. This is a significant project with long-term implications for the Huntington Beach community. Granting a continuance of at least 60 days to allow for the construct of a more complete record will better position the City Council to make a fully informed decision on this project that best serves the interests of all stakeholders. Respectfully, Tom McDaniel Member of the Huntington Club & Huntington Beach Resident EXHIBIT A cAi$AO,0--L-a, e. t.rot, The Huntington Club(Camaraderie Clubs) has sent you the file n171O Bales &Regut'atiotas 2da$"Ioryour review end signature . REVIEW & COMPLETE near The F1untington Club Member,: Wa have updated fIve Rates.&l egutaiions end Membership Guidelines at The Huntington Club to reflect our rnost current policies and offerings These updates are designed to provide greater clarify, improve the member experience, and ensure our policies ergn With the evolving needs of our community: Please review an `sign the updated 2026 Rules &Regulations and Club Guidelines using the secure Sertifi 1iftk above. Your signature slequired by April aor ao to ntn►ntafrr your active membership.and club privileges, We appreciate your aftenflail to these updates and your continued commitment to our club community Thank you for your prompt attention td`iris.matter, Alternatively to review and•sign.yon may copy and paste:Ih.e fotlbwing URL in.your browser: bttps://iivwksertiticomICernatecieneCtunstr asI x?su X1 QyPXfOnrezpm1 1t ycu have any questions related to documents or wish fo contact the`Huntington Ctuk please en aii ai receptionist cOthehuntingtanciub_com im-n I IMP , 1 a ARTICLE I. DEFINITIONS-AND APPLICATION 1',1 THE CLUB;THE OWNER; THE-LANDLORD The 'Club" refers to the facilities provided at-The Huntington.Club located at 6501 Palm Ave., Huntington Beach California 92648, The "Owner"refers to.The.Huntington Club, LLC The"Landlord" refers to the owner of the-real estate at the Club.. 1.2 CLUB MVMANAGEMENT; MANAGER "Club Management"refers to The:Camaraderie Clubs Management LLO,which: manages The Club and its successors:In Interest: "Manager" refers to the General' Manager of the Club, Club Management has authority over the.affairs of the Club,. 1.3 MEMBERSHIP! Via): A"Mer bershlp1`is the contractual prlviiege'by which designated persons enter onto the Club:for the exclusive purpose of using and.enjoying;the available° facilities at the'times-and in the manner set forth in these Rules and Regulations A "-Member" Is the:perrOn obligatedforthe payment of all fees,.dues, fines and:charges. Members agree'to be:hound by these Rules and Regulations as presently enacted or' hereafter amended.Amendments-to the Rules and Regulations Shall be made available: by Club Management upon request:- (b) The-Club is not en eiwity club. Membership is non-equity and fort. participatory, Membership does not imply any right or privilege to participate in or to administer the Club business-policies and does hot create any vested or proprietary right o₹any kind In land,the Club, Club Management or the'assets of Club Management: or the Club.Membership does not Create any presumption that the facilities or services that are now or hereafter available will continue to be available,:The Owner and Club, Management have the right:to make any or all facilities unavailable for use for some period of time; due to:construction of improvements, health and'safety concernai repairs, governmental-order or other reasons In their sole discretion, and Members shall. not receive any abatement of dues during such periods of full or partial:unavailability, Membership privileges should not be viewed as an investment:and;no person obtaining Membership privileges should expect to derive any economic'benefits from membership= in the Club These Rules and Regulations,Application for Membership) Club:Guidelines and other membership documents have not been reviewed nor endorsed by any federal dr state authority. 2 From: Shari enael To: suoolementalcomme surfcity-hb.org Subject: FORMAL FILING:Supplemental Communication for Items 26-324 and 27(Meeting Date:April 21,2026) Date: Thursday,April 16,2026 10:57:02 AM Attachments: KW1.ong KW2.png TW 1.ong You don't often get email from sengelhb@yahoo.com.J earn why this is important Dear City Clerk, City Attorney, and City Manager, I am writing to formally place on the public record for the April 21, 2026, City Council meeting my objection to the ongoing procurement process involving Wolffhaus (File 26-324 / RFP #140902). The administrative record for this project contains a pattern of"last-minute" justifications that suggest a coordinated effort to bypass city and federal guardrails to ensure a predetermined outcome for a specific vendor. 1. Misuse of Federal Office and Illegal Endorsement (Item 26-324) The city's "technical justification" for this vendor relies on a letter from Kristin Walker, who explicitly identifies himself as the Reliability Technology Branch Chief at the Aviation and Missile Command at Redstone Arsenal, Alabama. By utilizing his Department of Defense (DoD) title and 25 years of federal experience to endorse a private enterprise, Mr. Walker has committed a prima facie violation of 5 C.F.R. § 2635.702. The city cannot legally accept a bid predicated on a violation of federal ethics laws. 2. Coordinated Administrative Irregularities and Cleanup Public record disclosures indicate a frantic effort to bypass city business requirements. The Wolffhaus business license application was received on April 6, 2026—the same afternoon the Walker letter arrived—yet was backdated to February 1st. Furthermore, the use of an automotive tire shop address (17011 Beach Blvd) as the headquarters for a $720,000 media audit should have triggered an immediate due diligence stop. Instead, it appears the city is willing to do whatever it takes to justify hiring a shell entity. 3. Objection to Political Interference via Ad-hoc Committee (Item 27) I formally object to the proposal in Item 27 to create a City Council Ad-hoc Committee to review RFP proposals. Given the documented federal ethics violations and licensing irregularities, the vetting process must remain with non-partisan, professional City Staff. Allowing a political committee to "hand-pick" a vendor whose entry into this process is already ethically compromised would constitute a gross failure of the city's procurement integrity. Formal Demand: I demand that the Kristin Walker letter be struck from the record and that any vendor utilizing illegal federal endorsements or irregular licensing be disqualified. If the city persists in utilizing these compromised documents to justify a $720,000 expenditure, I will proceed with a formal referral to the Department of Defense Office of Inspector General (OIG) and the Command Counsel at Redstone Arsenal. Respectfully, Shari Engel, Resident, Huntington Beach From: Carol D. To: 5uoplementalcomm aasurfcity-hb.orq;CITY COUNCIL(INCL.CMO STAFF) Subject: Strong NO for Agenda#27,#26-373 Date: Friday,April 17,2026 6:47:16 AM Dear Mayor McKeon and City Council Members, I am strongly opposed to Agenda#27, 26-373, which would create a 3-member ad hoc committee to review and recommend the bids for the$720,000 project initially proposed by Wolffhaus (one of the bidders!)to provide PR, branding, media, merchandising for the city. This reeks of cronyism. First, you accept an audit for$30,000 from an acquaintance of one of the city council members who clearly does not have the background needed for such a multi- faceted undertaking. Then to ensure that this contract is awarded to Wolffhaus (or possibly another friend?), you are now recommending a 3-member committee to decide which firm to use for this large expenditure! Let me guess,will this committee consist of Casey, Pat and Don,who all appear ready to give Wolffhaus the contract? I urge you to consult with ALL members of the council regarding this decision on how to use our taxpayer money. Be transparent with the public and issue the contract to the best firm with the expertise to accomplish the objectives. Thank you, Carol Daus 30-year Huntington Beach resident From: Pat Goodman To: McKeon,Casey;suDDlementalcommCa)surfcity-hb.orq;CITY COUNCIL.(INCL.CMG STAFF) Cc: Vigliotta,Mike;Hopkins.Travis Subject: Please Pull Item# 18 Approve and Adopt Minutes,Correct Item#27,Approve#28-26-379 Date: Sunday,April 19,2026 10:22:54 AM Dear Mayor McKeon and City Council Members, I am writing to ask you to address three specific items at Tuesday's meeting. Item #18 - Approve and Adopt Minutes (April 7, 2026) Please pull Item #18 from the consent calendar and correct the record before approving the April 7, 2026 minutes. The minutes attribute a statement to Mayor McKeon that the Wolffhaus contract was not subject to a Request for Proposals. That statement is incorrect, and the minutes should reflect the following corrections: 1. "City Charter Section 13" does not exist. This citation must be deleted or corrected. I could not find such section that governs professional services procurement. 2. Budget status does not eliminate the RFP requirement. Under HBMC §3.03.060, competitive proposals from at least three qualified firms are required regardless of whether funds are available. 3. No specific FY 2025-26 budget line item was identified in any supporting document or discussion to fund this contract. The public is entitled to know precisely where this money is budgeted. Council members are free to speak their minds, but when statements entered into the public record are factually incorrect, the minutes must reflect the accurate legal and factual record. I ask that these corrections be annotated in the April 7 minutes. Item #27 - Ad Hoc Committee for Branding and Marketing RFP If the Council moves forward with a branding and marketing contract, I urge you to revise the proposed structure and make up of the review committee. A self-appointed ad hoc committee should not be reviewing and selecting proposals. Instead, please direct the City Manager to: • Convene a staff-led RFP review committee • Evaluate all proposals against objective, published criteria • Present the top three recommendations to the City Council and the public prior to any contract award All proposals and staff analysis should be made publicly available before the award meeting. No council member should serve on the review committee. Any council member who has a personal or business relationship with a firm among the top three recommended finalists — or who has publicly expressed support for a specific vendor — should recuse themselves from the contract award vote. These steps will go a long way toward restoring public trust. Item #28 — 26-379 Please vote yes on Item #28. Councilmember Williams' proposal goes to the heart of the problem exposed by the Wolffhaus contract. Clearly establishing and communicating the City's procurement procedures will be educational for the Council, staff, and public alike — and will help prevent this situation from recurring. A Final Word on Governance We often hear that the City should be run like a business. The Wolffhaus contract is an example of what goes wrong when that analogy is taken too far. A private business exists to create value for its owners and can move quickly, informally, and without public process. A city government exists to serve all residents equally, and is accountable to the public (voters and taxpayers) through law, transparency, and democratic elections. The rules governing how a city spends money and awards contracts are fundamentally different from those in the private sector — and shortcuts that may be acceptable in business are often illegal in government. The Council majority has now had more than three years in office. The public expects — and the law requires — that its elected officials understand and follow proper procurement procedures. These rules exist not only to protect taxpayers, but to protect elected officials themselves from appearances of favoritism, conflicts of interest, and misuse of public funds. I would also encourage the Council to adopt cost-benefit analysis by independent financial professionals as a standard tool when evaluating revenue-generating projects. Objective data leads to better decisions. Huntington Beach is a remarkable city — with world-class beaches, excellent parks and libraries, strong public safety, and neighborhoods people actively seek out. Residents, visitors, homeowners, and businesses all benefit from what makes this city exceptional. Governing it with the transparency, accountability, and rigor it deserves is how we protect that value for everyone. Pat Goodman From: Russell Neal To: suDolementalcomm(alsurfcity-hb.orq Cc: Russell Neal Subject: Item 27,and 26-379 Date: Monday,April 20,2026 1:47:41 PM There are two underlying issues with respect to the proposed Creative Strategy RFP. The first is the urgency of getting something done in time to take advantage of the upcoming 4th of July opportunities. The second is meeting concerns about openness and fairness of the bidding and awards process for this contract. The RFP currently on the table is a compromise which meets neither concern. It is too slow for the first and too fast for the second. I propose splitting the procurement into two parts. The first would be a directed procurement to Wolffhaus for the limited scope of the 4th of July plan. The second would be an RFP for the whole, long-term Creative Strategy Plan without the 4th of July time pressure. More time could be allowed for development, of this RFP, consideration of community input, and for bidder response. If this approach is acceptable,we could perhaps move on to things more productive and less acrimonious. I do not think the proposed open discussion session concerning related matters is compatible with the format of a Council session and do not believe any good can come from it. I suggest focusing on reaching a workable compromise such as I have suggested and moving on. Thank you. From: Tim Holland • To: uoolementalcommasurfcityhb.orq • Subject: Wolffhaus payout • Date: Sunday,April 19,2026 7:01:53 PM • You don t often get email from tarn holland20@yahoo.com I Pamwhy this is important No! What the heck are you stealing our tax payer dollars for?This guy seems to be a whack job getting$ 750,000 because he's related to the mayor. Dear Mayor--this is on you! Follow the rules and the law. I see you need a bail out for the negative publicity you and yours have laid on our city. I see your effort to turn the tide. But why would you not seek a solid, established,professional firm instead of a phone-sex guy from Montana????? Sent from Yahoo Mail for iPhone From: )an Madnick To: CITY COUNCIL(INCL.CMO STAFF);Suoolementalcomm(@surfcity-hb.orq Subject: Item 27 Date: Monday,April 20,2026 3:43:02 PM It sometimes seems as though we citizens just need to copy and resend our comments on some of the issues you actually discuss in public at the CC meeting. That being said,I'm frankly incredulous that Mayor McKeon would think it appropriate to propose an Ad Hoc committee of you council members to review and evaluate the RFP proposals which have been submitted regarding the previous agenda item#22. REALLY99999 First of all,YOUR feelings on this matter are already in public view as you pushed for giving Wolfhaus almost a quarter of a million dollars with no proof of prior successes in helping any city "rebrand"back to a welcoming city. Is there anyone who believes YOU would consider all of the bids equally and fairly? I don't know about others,but I don't. I've heard that at least 40 companies have submitted their proposals---probably quite a few that are local. We have a city staff whose job parameters include evaluating such proposals and then submitting them to the Council for approval--NOT an Ad Hoc committee made up of you on the council. Finally,just the fact that you,Casey,pushed the item to hire Wolfhaus would suggest that you,and other council members who publicly pushed for this contract,should recuse yourselves from considering this company at all. Certainly you will receive many comments regarding this highly inappropriate move. Let's see if you acknowledge this misstep and move on in accordance with our City Charter---especially as you love to flaunt it! Thank you, Jan Madnick 44 year resident From: diannef22(Wahoo.com To: suoolementalcomm(@surfcity-hb,org Subject: Agenda Items 25,26,27,New(28) Date: Monday,April 20,2026 4:38:36 PM Item 25: Please vote to defeat this item. After reading the background information, it seems like quite the convoluted stretch to try to make a connection between Huntington Beach and President Theodore Roosevelt. Furthermore, Theodore Roosevelt was a Progressive and a Conservationist. This Council has actively tried to restart oil drilling in HB and intended to allow a massive light show to disrupt the wildlife in Central Park. Nothing in Theodore Roosevelt's biography matches with the goals of this Council and this item is clearly an attempt to distract from what you have been and will be doing. Item 26: Please vote to defeat this item. It is NOT the job of the Council to be reviewing the City's lease portfolio. If there is a desire to look at the leases, pass an item asking staff to compile the information and make recommendations to the Council so the Council can discuss all of the information at a public meeting, not behind closed doors in an ad-hoc session. Please return to basic good governance. Item 27: Please vote to defeat this item. Again, this item is attempting to use a closed door, ad-hoc committee to do the work of City staff. It is the job of City Staff to write RFPs and to receive, and evaluate the subsequent proposals. After the professional staff has evaluated the proposals, they will present their findings to the Council for public discussion and guidance for the staff to proceed. In this case in particular, it seems the resulting contract will be in the neighborhood of$700,000 and moving forward on that requires public input and public discussion. New Item (28?): I am very much in favor of this item. It is clear that Wolffhaus engaged with the City due to his personal relationship with at least one councilmember. Even after all these weeks, the Wolffhaus website is still not up. Is that the kind of prompt, responsive work we should expect if the contract is issued to his company? I am very interested in watching the discussion of this item to make sure the public has a full understanding of what has transpired so far with our money and what some councilmembers were ready to just give away without any competition or public discussion. Thank you, Diane James From: pbenton955Calaol.con1 To: suoplemerlcomm(asurfcity-hb.orq Subject: Re 26-349 Date: Monday,April 20,2026 11:39:52 AM IYou don't often get email from bbenton955@aol.corn. Learn why this is important It has become increasingly obvious that this issue has been exposed for what it actually is that is a political PR program for members of the City Council looking for future higher office. It should be dropped immediately and a complete accounting of exactly what the already given $30,000 was used for. Invoices for those amounts to be forwarded directly to whomever received any perceived benefit. Bonnie Benton 1 From: Russell Neal To: suoolementalcommnsurfcity-hb.orq Subject: Creative Contract Date: Thursday,April 16,2026 1:39:29 PM Upon reviewing this issue, my greatest concern is the urgency of having a process in place that is at least "good enough" to capture the value from July 4 activities in HB. A perfect, long term plan can come later, but it would be a shame if whoever gets the contract cannot deliver a short-term system that can be implemented in time to capture the opportunities offered by this once-in-a-lifetime event. Perhaps a limited scope short term directed procurement could be coupled with a longer term RFP. Russ Neal Huntington Beach