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SS Item A-3

Beverly Hills City Council
December 10, 2024

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SS Item A-3
Meeting
December 10, 2024
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Beverly Hills City Council
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3
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Text extracted from the city's file for reading and search. Open the original on beverlyhills.granicus.com. That file is the official record.

STAFF REPORT
Meeting Date: December 10, 2024
To: Honorable Mayor & City Council
From: Patty Betancourt, Special Events and Filming Coordinator Subject: Request from Dick Clark Productions for Approval of Partial Fee Waivers Associated with the Golden Globes Awards Ceremony Scheduled for Sunday, January 5, 2025
Attachments: 1. Proposal from Dick Clark Productions

2. 2024 Permit Fee Breakdown

3. 2024 Fee and Personnel Cost Breakdown

INTRODUCTION
The City Council is requested to review a request from Dick Clark Productions for approval of partial fee waivers associated with the 82nd Annual Golden Globes Award Ceremony and an eight-hour extension of the originally approved lane closure. A special event permit for the event and related street closures was previously approved by the City Council pursuant to Beverly Hills Municipal Code Section 4-8-1.

DISCUSSION
On October 10, 2024, the City Council approved the special event permit and related street closures for the 82nd Annual Golden Globes Award Ceremony to be held January 5, 2025, at the Beverly Hilton Hotel. Dick Clark Productions requested that the City Council consider waivers for certain fees associated with the event. Council directed that the fee waiver request be brought back to the City Council Liaison/Rodeo Drive/Special Events/Holiday Committee (Mayor Friedman and Councilmember Wells) for further consideration.

Further, following the City Council’s approval of the event, Dick Clark Productions requested to begin the first sidewalk and lane closures for the event eight hours earlier than originally approved by Council, starting at 10 p.m. on Sunday, December 29, 2024, rather than 6 a.m. on Monday, December 30, 2024.

On December 5, 2024, the City Council Liaison/Rodeo Drive/Special Events/Holiday Committee reviewed the requested fee waiver and closure extension.

Fee Waiver
Dick Clark Productions requested consideration of the following three fee waiver options (Attachment 1):

Meeting Date: December 10, 2024

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1. Waive $30,000 of permit application fees;

2. Waive $15,000 of personnel costs specifically related to overtime for certain staff; and/or

3. Allow for payment of a flat fee of $100,000 to cover all application fees and staff costs, and waive all remaining fees and costs.

In consideration of waiving permit fees as requested, Dick Clark Productions offered to highlight the City of Beverly Hills during the 10-second cold open of the televised awards show, to include iconic Beverly Hills imagery and a voiceover mentioning the City of Beverly Hills.

Dick Clark Productions further offered selected Beverly Hills High School students an opportunity to be part of a pilot mentorship program with Executive Vice President of Dick Clark Productions, Rick Pizante. The proposed program would include the following:
• Students would be provided with behind-the-scenes production access prior to show day.
• Students would have the opportunity to observe and meet with industry professionals.
• Students would have red carpet access and the opportunity to interview awards ceremony attendees on show day.

In addition, Dick Clark Productions offered the Beverly Hills Conference and Visitors Bureau (CVB) an opportunity to capture content in various aspects of the Golden Globes and the Beverly Hilton Hotel to help support branding, marketing, and social media initiatives. Dick Clark Productions requested that the CVB pay $30,000 for this opportunity.

The committee noted that the fees for the 2025 event are likely to be higher than previous years due to the additional time requested for street and sidewalk closures.

The additional time is requested due to logistical challenges presented by construction of the adjacent One Beverly Hills project. Considering these increased fees associated with the closures, the committee recommended waiving $45,000 in permit fees, in lieu of accepting any of the options proposed by Dick Clark Productions. The committee recommended against waiving any personnel costs. The committee noted that the CVB has agreed to pay $30,000 as noted above, further offsetting the cost of the event.

The committee noted that the fee waiver is contingent upon the following commitments from Dick Clark Productions:
• Featuring the City of Beverly Hills in the 10-second cold open for the televised awards show as noted above, with City of Beverly Hills approval of the cold open content and script.
• Moving forward with the mentorship program for Beverly Hills High School students noted above.
• Providing red carpet access during the event to BHTV, the CVB, and KBEV student television.

Meeting Date: December 10, 2024

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Multi-Year Agreement
The committee proposed to Dick Clark Productions entering into a multi-year agreement with the City, similar to the City’s three-year agreement with Vanity Fair for its annual Academy Awards party. If agreeable to Dick Clark Productions, the committee recommended that the City agree to waiving fees for each year of the agreement, starting at $45,000 the first year and increasing by the Consumer Price Index in subsequent years, corresponding to the annual increase in City fees. Dick Clark Productions indicated they would consider the proposal.

Extended Lane and Sidewalk Closure
The committee recommended approval of the requested earlier start time for lane and sidewalk closures, to begin at 10 p.m. on Sunday, December 29, 2024.

FISCAL IMPACT
Unless waived by the City Council, Dick Clark Productions and the Beverly Hilton Hotel are responsible for all related expenses including but not limited to permit fees, street closures and street use fees, City personnel costs, traffic control plans and equipment, and any other costs associated with the event. The total fees and personnel costs for the 2024 Golden Globes Award Ceremony were as follows:

Item Amount
Permit Fees (Attachment 2) $ 28,821.00
Personnel Costs (Attachment 3) $200,223.66
Total $229,044.66
Total costs for the 2025 event are expected to be higher due to increases in permit fees from last fiscal year, increases in staff salaries, and increased fees and staff costs related to the longer street closure period. The City Council Liaison/Rodeo Drive/Special Events/Holiday Committee recommended waiving $45,000 of the total permit fees (not personnel costs) for the first year and subsequent years of a multiyear agreement, if approved by the City Council and agreed to by Dick Clark Productions.

RECOMMENDATION
Staff recommends the City Council review the request by Dick Clark Productions and the recommendation from the City Council Liaison/Rodeo Drive/Special Events/Holiday Committee to waive $45,000 in permit fees for the 82nd Annual Golden Globes Award Ceremony, to approve an additional eight hours of street and sidewalk closures prior to the event, and to approve a multi-year agreement for the event with fee waivers as described above if agreeable to Dick Clark Productions. If the City Council accepts the recommendation of the committee, staff recommends the Council authorize the City Manager to enter an agreement to document the above for either one year or three years.

Michael Forbes,
Director of Community Development
Approved By
Attachment 1
November 19, 2024
DCP respectfully submits a reimagined partnership between the Golden Globes and the City of Beverly Hills. As a more meaningful partner to the City, DCP has engaged several stakeholders to maximize the prestige and community benefit of hosting this renowned global event in Beverly Hills.

DCP is committed to supporting two new impactful community programs. The first initiative is the Beverly Hills High School KBEV program, through which DCP will provide custom mentorship and exclusive event access opportunities. The second will enhance the City's promotional and marketing efforts in collaboration with Beverly Hills TV and the Beverly Hills Conference and Visitors Bureau.

As part of these programs, DCP is requesting the Beverly Hills City Council to consider a reduction or flat fee structure in City-related costs associated with the upcoming Golden Globe Awards. 82nd GOLDEN GLOBE AWARDS:

DCP is recognized as the world’s largest producer and proprietor of televised live event programming televised live event entertainment programming. For decades, DCP has brought the brightest stars to audiences worldwide. Headquartered in Beverly Hills, DCP is committed to strengthening its relationships within the community while fostering new partnerships as we continue our tenured history of producing the Golden Globes at the Beverly Hilton Hotel.

Since 1961, the Beverly Hilton Hotel has proudly hosted the Golden Globe Awards, welcoming some of the most iconic figures in Hollywood on its legendary red carpet and into the renowned International Ballroom [IBR]. This tradition will continue on January 5, 2025 at 5pm on CBS/Paramount+ as the Beverly Hilton will once again host this prestigious show. DCP recognizes the value of a mutually beneficial partnership with the City of Beverly Hills and seeks to provide more opportunities to strengthen the on-going marketing and promotional efforts of one of the most iconic cities on the planet.

BACKGROUND:

For 64 Years, The Golden Globes and the City of Beverly Hills have enjoyed a wonderful and welcoming vendor-city partnership. This year, the unprecedented logistical challenges of One Beverly Hills have presented an exponential rise in labor costs along with countless challenges of schedule coordination. These include but are not limited to extended load-in and load-out, limited street access, route changes into and out of the Hilton, and a variety of street closures.

In an effort to maintain the world-recognized image of the Golden Globes and the City of Beverly Hills, DCP is proposing a reimagined partnership between the two. Focusing on deeper community relationships, new opportunities for the City's Convention and Visitors Bureau, and larger, more prominent features of this iconic city. In return, DCP is asking for three flat rate requests in city fees to help minimize the overbearing financial aspect of the 2025 show. 2025 LOCAL BENEFITS AND PARTNERSHIPS
The Golden Globes offers several benefits to the local area and DCP has also engaged new relationships this year with the following stakeholders to further support and enhance their ongoing initiatives and program:

BRANDING BENEFIT:

As the show has been proudly anchored in Beverly Hills for decades, DCP has offered the Beverly Hills Conference and Visitor Bureau a unique opportunity to capture content in various aspects of the Golden Globes and the Beverly Hilton to support City-related branding, marketing and social media initiatives. In doing so, DCP has requested $30,000 from the BHCVB for this access.

COMMUNITY BENEFIT:

Rick Pizante, Executive VP of DCP, is a Norman-alumni and has pioneered a pilot mentor-program with Beverly Hills High School set to occur during the pre-production phase of the Golden Globes as well as on show day to include:
● Behind the scenes production access for selected students prior to show day. ● Students will observe and meet with industry professionals. ● Students will have red carpet access to interview talent on show day. ● DCP has not requested any funds for this pilot program from BHHS.

ECONOMIC BENEFIT:

The Golden Globes ushers in a global audience to the City of Beverly Hills with the most recent show on January 7, 2024 provided the following exposure and local economic impact:
● $117 million dollars in combined direct/indirect economic impact. ● Viewed in over 185 countries.
● 10 million viewers on CBC/Paramount+.
● 54 million views across owned and operated platforms. ● 18 million social interactions.
● 26,000+ articles written about the Golden Globes with 29.59 million journalists reached. ● 11% hotel occupancy increase during the week of the 2023 show compared to 2022. (Jan. 8-14, higher than prior 28 day window, source BHCVB)
● 13% hotel occupancy increase during the month of January, 2024 show compared to 2022. (Month of January, data collection source differed from 2023, source BHCVB). ● DCP has engaged and partnered with the Beverly Hills Chamber of Commerce on how the Golden Globes show can support the local business community.

Furthermore, unlike other shows or special events that come to Beverly Hills, DCP is headquartered in Beverly Hills and has consistently supported the local economy by patronizing the following businesses on a regular basis:

Alfred Coffee
La Scala
Matú
Frida Mexican Cuisine
Honor Bar
Honor Wines and Spirits
Blue Bottle Coffee
Beverly Hills Market
Il Pastaio
Joe’s Pizza
Mulberry Street Pizzeria
HeyTea
Wrapster
ShakeShack
Kreation
Sprinkles
The Hilton
Pavilions
Waldorf Astoria
Otro Dia Tacos
Starbucks
Jimmy Johns
Walters 2 Go
Whole Foods
Jersey Mikes
Ronnie’s
Subway
Joss Bites
CPK
Chipotle
Urth Cafe
South Beverly grill
208 Rodeo
Mastro’s
Crate and Barrel
SIXTY Beverly Hills
Spago
Erewhon
PROPOSED CITY OPPORTUNITY:

In addition to the community work DCP has already engaged, DCP is offering the City of Beverly Hills a unique opportunity to help promote Beverly Hills as the host City for the show:

Golden Globes Cold Open
The Golden Globes cold opening is a 10 second video piece that opens the live broadcast of the show. DCP is excited to position Beverly Hills and its iconic scenery as the major element of the cold open. The cold opening would include iconic Beverly Hills visuals, along with a voice over mentioning Beverly Hills.

FEE OPTIONS AND WAIVER REQUESTS:

In return for the above robust community partnerships, new opportunities, and continued economic support for the City, DCP is requesting the following three options be considered for approval:
#1) Flat Fee Waiver
Waiving of $30,000 of intangible permit fees. This does not include any labor costs associated with City staff. #2) Salaried Employee/Managerial Overtime Waiver
Waiving $15,000 of overtime costs from salaried managers. *NOTE: The show is not asking for any reduction in services. #3) $100,000 Flat Fee
DCP is requesting that any and all permit fees, along with any and all associated labor costs billed to show and the Beverly Hilton be a flat fee of $100,000.

CITY-STAFF, MEAL ALLOWANCE:

DCP wishes to inform the City Council that they, along with the Beverly Hilton, provide complementary meal service to over 150+ City of Beverly Hills employees on show day which totals approximately $14,250. As a courtesy, these meals will continue to be provided to City staff.

SUMMARY:

DCP is thankful for the continued and tireless support of City-staff, along with years of unanimous support of the Beverly Hills City Council. DCP remains committed to producing an entertaining awards show that brings a global audience to Beverly Hills.

Thank you for your consideration.

Attachment 2
City of Beverly Hills
Community Filming & Event Permits
2024 Golden Globes permit fees based on FY 2023-24 Fee Schedule Street Closure Breakdown:

Friday, January 5th at 9pm - Monday, January 8th at 4am January 5th = 3 hours
January 6th = 24 hours
January 7th = 24 hours
January 8th = 4 hours
TOTAL STREET CLOSURE HOURS = 55 hours
2024 Hard Cost
*Special Event Permit
App Fee $65.00
Large Scale Event Fee $3,972.00
Encroachment $179.00
No Parking Signs $785.00 100 No Parking Signs
Street Closure $15,860.00 Street Closure Commercial Resident/BH Based - 49+ hrs Closure Extra Hours $3,726.00 Street Closure Commercial Resident/BH Based - 49+ hrs Additional Hourly Rate $621/hr x 6 hours
*Film Permit $4,234.00
Grand Total $28,821.00 Permit Application and Processing Fees Attachment 3
Permits Permit # Fire PD Sworn PD TCO IT PW BS Inspectors EOC Total Hours Total Fees Access Hollywood Platforms BS2400093 0 0 0 0 0 4 0 4 $1,603.70 EXTRA Platforms BS2400115 0 0 0 0 0 4 0 4 $1,603.70
Truss 2nd Permit BS2307477 0 0 0 0 0 8 0 8 $2,496.31
Bleachers BS2307459 0 0 0 0 0 4 0 4 $1,034.62
Film FE2300710 0 0 0 0 0 0 0 0 $4,234.00
Foundation Dinner Tent BS2307480 0 0 0 0 0 4 0 4 $1,311.79 Generator BS2307481 0 0 0 0 0 8 0 8 $1,142.19
Special Event FE2300709 41.5 790.85 550.5 151 224 0 25 1782.85 $212,268.25 Tent BS2307495 0 0 0 0 0 4 0 4 $1,498.79
Truss 1st Permit BS2307477 0 0 0 0 0 4 0 4 $1,851.31
1822.85 $229,044.66
2024 Permit Fees
Special Event Permit
App Fee $65.00
Large Scale Event Fee $3,972.00
Encroachment $179.00
No Parking Signs $785.00
Street Closure $15,860.00
Closure Extra Hours $3,726.00
Film Permit $4,234.00
$28,821.00

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