Beverly Hills City Council
July 1, 2025

AGENDA REPORT
Meeting Date: July 1, 2025
Item Number:

To: Honorable Mayor & City Council
From: Chad Lynn, Deputy Director of Special Projects, Public Safety Subject: AGREEMENT WITH THE BEVERLY HILLS CONFERENCE AND

VISITORS BUREAU FOR PROMOTION OF THE CITY FOR FISCAL
YEAR 2025-2026; AND
PURCHASE ORDER FOR FISCAL YEAR 2025-2026 IN THE NOT-TOEXCEED AMOUNT OF $4,668,581.

Attachments: 1. Agreement with the Beverly Hills Conference and Visitors Bureau for Fiscal Year 2025-2026

2. June 3, 2025, Staff Report for CVB Work Plan (without attachments)

RECOMMENDATION
Staff recommends the City Council:
1) Approve an Agreement between the City of Beverly Hills and the Beverly Hills Conference and Visitors Bureau (CVB) for promotion of the City for Fiscal Year 2025-2026 (Attachment 1);
2) Approve a Fiscal Year 2025-2026 (FY 25/26) purchase order for the CVB for promotion of the City in an amount not to exceed $4,668,5811; and 3) Waive the bidding requirements per Beverly Hills Municipal Code 3-3-204 (D) as the CVB, through its mission and partnership with the City, represents certain unique aspects of attracting tourists and performing marketing while maintaining the City’s brand; thus, it would be in the best interest of the City to continue to utilize this vendor for these services.

INTRODUCTION
At the June 3, 2025, Study Session, the City Council reviewed and approved the FY 25/26 work plan and funding request presented by the Beverly Hills Conference and 1 The total not to exceed amount herein includes an additional $5,000 as part of the Interactive line item presented to the City Council on June 3, 2025. This is specifically related to Search Engine Optimization (SEO) / Search Engine Marketing (SEM) costs.

D-10
Meeting Date: July 1, 2025

Visitors Bureau (CVB). This item requests the City Council approve an agreement with the CVB for marketing the City (Attachment 1), issue a FY 25/26 purchase order in an amount not to exceed $4,668,581, and to waive the bidding requirements as it is in the best interest of the City.

DISCUSSION
Similar to previous years, The CVB is contracted by the City to conduct a variety of tourism and marketing programs promoting Beverly Hills. The City funding is utilized to promote Beverly Hills domestically and worldwide as a stay, shop, and dine destination through a variety of marketing programs and events that build awareness and drive consumer revenue to the City as a whole. They consist of a staff, and a volunteer Board comprised of hotel General Managers, and local stakeholders.

On May 21, 2025 and May 27, 2025, the Beverly Hills City Council Liaison / CVB/Marketing Committee (Liaisons) Mayor Nazarian and Councilmember Friedman, reviewed the FY 25/26 work plan and funding request presented by the CVB. The recommendations from the Committee were presented at the June 3, 2025, City Council Study Session (Attachment 2), which the City Council approved.

This item, if approved by the City Council, approves the execution of an Agreement between the City and CVB for FY 25/26 marketing of the City; authorizes the issuance of a FY 25/26 purchase order to the CVB in the amount of $4,668,581; and waives the bidding requirements per Beverly Hills Municipal Code 3-3-204 (D) as it would be in the best interest of the City to continue to utilize the CVB for these services.

FISCAL IMPACT
The City has maintained a policy of funding its tourism and marketing programs from a specific allocation of the transient occupancy tax (“TOT”). The City collects a total of fourteen percent TOT based on gross room sales from the City’s hotels. One-seventh of the total TOT revenue has been the basis of calculating the funding for the Tourism and Marketing budget in Beverly Hills for over 27 years. The Policy & Management Department’s Tourism and Marketing budget (01001311) provides funding for activities, which market and promote the City to potential travelers.

Using the current TOT budget estimate of $46,364,000 for FY 25/26, the one-seventh available funding would be approximately $6,623,429. In FY 25/26 this includes Council-approved, recommended and to-be-determined funding for:

Description of Program to be Funded from Tourism &
Marketing Budget (TOT)
Potential Budget
Allocation FY 25/26
Intellectual Property Legal Services $100,000
Conference & Visitors Bureau
Approved funding for FY 25/26
Work Plan
$4,668,581
Rodeo Drive Committee
Approved funding for FY 25/26 Work
Plan
$184,998
Portion of the Beverly Hills Chamber of Commerce Work Plan Estimated/Requested funding for FY 25/26
$153,730
Landscape Funding for Rodeo Drive $30,000
Meeting Date: July 1, 2025

Concours D'Elegance in 2026
Estimate based on prior year $315,000
Contingency Funding for other Tourism & Marketing Events (including the Holiday Lighting Celebration and Rodeo Drive Holiday Décor for Holidays 2025)
$1,171,120
Total $6,623,429
To execute the proposed work plan for FY 25/26, the CVB requests $4,668,581 in funding from this budget. Funding is available in the City Council adopted FY 25/26 Policy and Management Tourism and Marketing Budget for the CVB work plan, along with the other programs listed above.

Keith Sterling,
Deputy City Manager
Approved By
Attachment 1
1 B0785-0001\3124381v4.doc

AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND THE

BEVERLY HILLS CONFERENCE AND VISITORS BUREAU FOR
PROMOTION OF THE CITY FOR FISCAL YEAR 2025-2026
NAME OF CONTRACTOR: Beverly Hills Conference and Visitors Bureau

RESPONSIBLE PRINCIPAL OF
CONTRACTOR:

Julie Wagner, CEO
CONTRACTOR'S ADDRESS: 9400 Santa Monica Blvd.

Beverly Hills, CA 90210
Attention: Julie Wagner, Chief Executive Officer
CITY'S ADDRESS: City of Beverly Hills
455 N. Rexford Drive
Beverly Hills, CA 90210
Attention: Nancy Hunt-Coffey, City Manager
COMMENCEMENT DATE: July 1, 2025
TERMINATION DATE: June 30, 2026
CONSIDERATION: Not to exceed $4,668,581 and more particularly described in Exhibit B
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AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND THE

BEVERLY HILLS CONFERENCE AND VISITORS BUREAU FOR
PROMOTION OF THE CITY FOR FISCAL YEAR 2025-2026
THIS AGREEMENT is made by and between the City of Beverly Hills (hereinafter called "CITY"), and the Beverly Hills Conference and Visitors Bureau (hereinafter called “CONTRACTOR” or "CVB").

RECITALS
A. CVB is located in CITY and has special knowledge and experience to conduct or participate in promotional, publicity, and advertising activities for the benefit of CITY.

B. CITY desires to engage CVB for marketing and special events for the benefit of CITY.

C. Section 37110 of the State Government Code authorizes the expenditure of monies for promotions.

D. CITY desires to have certain services and/or goods provided as set forth in Exhibit A (the "Scope of Work"), attached hereto and incorporated herein.

E. CVB represents that it is qualified and able to perform the Scope of Works.

NOW, THEREFORE, the parties agree as follows:

Section 1. CVB's Scope of Work.

CVB shall perform the Scope of Work described in Exhibit A, attached hereto and incorporated herein, in a manner satisfactory to CITY and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions. CITY shall have the right to order, in writing, changes in the Scope of Work. Any changes in the Scope of Work by CVB under $25,000 may be done without approval of CITY; however, CVB shall notify the City Manager, CITY’s Community Outreach Manager, and/or the City Manager’s designee by close of the fiscal year of such change.

For reallocations between $25,001 - $50,000, CVB must obtain the prior written approval from the City Manager, with a copy of the request sent to CITY’s City Council Liaison / CVB / Marketing Committee and/or the City Manager’s designee prior to reallocation of the funding.

For reallocations above $50,000, CVB must obtain prior approval from the City Council Liaison /CVB/ Marketing Committee at an agendized meeting prior to reallocation of the funding.

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Section 2. Ownership of Work Product.
(a) Unless otherwise agreed upon in writing, all reports, documents, or other written or visual material or any other material in any media, including any images, taglines, logos, or other media created or developed by CVB or any third party contracted by CVB, in the performance of this Agreement, whether or not paid in whole or in part by the funding provided by this Agreement (“Work Product”) shall be and remain the property of CITY without restriction or limitation upon its use or dissemination by CITY. All Work Product shall be considered to be “works made for hire,” and all such Work Product and any and all intellectual property rights arising from their creation, including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of CITY without restriction or limitation upon their use, duplication or dissemination by CITY. CVB shall not obtain or attempt to obtain copyright protection as to any of the Work Products.
(b) CVB hereby irrevocably assigns exclusively to CITY, all right, title and interest in such trademarks and/or copyrights or other intellectual property rights in the Work Products. CVB shall take all acts requested by CITY in order to enforce CITY’s rights under this Section.
(c) CVB shall not retain ownership of or any right, title or interest in any of the Work Products, including, but not limited to, in any related trademarks, copyrights, or other proprietary rights. CITY and CVB agree that the Work Product and all such rights, title and interest in or to the Work Products belong to and are being sold and assigned in their entirety to CITY for whatever use it desires, and that CITY does and shall at all times own, solely and exclusively, complete and unencumbered, all right, title and interest in and to all of the Work Product worldwide, any modifications thereto and any derivative works based thereon (including, but not limited to, all patent, copyright, trademark, service mark and trade secret rights). Nothing contained herein shall be deemed to constitute a mere license or franchise in CITY. The parties further agree that CITY will be free to use, modify, distribute, sell, license or otherwise exploit all such Work Products and any modifications to or derivative works based thereon without any restrictions or limitations or any obligations or payments to CVB and that CVB shall have no such rights.
(d) From time to time CVB will engage photographers to take photographs or will purchase images for use in CVB’s marketing campaigns, collateral or other uses. As to those third party photographs or images whereby CVB negotiates to purchase not only the photograph or image but also the copyright or other intellectual property rights, the provisions of this Section 2 will apply. As to those third party photographs or images whereby CVB negotiates to purchase only the use of the photograph or image and the copyright is maintained with the photographer, the provisions of this Section 2 will not apply.
(e) This Section shall survive termination of this Agreement.

Section 3. Time of Performance.

CVB shall commence its services under this Agreement upon the Commencement Date or upon a receipt of a written notice to proceed from CITY. CVB shall complete the performance of services by the Termination Date set forth above and/or in conformance with the project timeline established by the City Manager or her designee.

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Section 4. Compensation.
(a) Compensation
CITY agrees to compensate CVB for the services and/or goods provided under this Agreement, and CVB agrees to accept in full satisfaction for such services, a sum not to exceed the Consideration set forth above and more particularly described in Exhibit A and in Exhibit B, attached hereto and incorporated herein.
(b) Expenses
The amount set forth in paragraph (a) shall include reimbursement for all actual and necessary expenditures reasonably incurred in the performance of this Agreement (including, but not limited to, all labor, materials, delivery, tax, assembly, and installation, as applicable). There shall be no claims for additional compensation for reimbursable expenses. (c) Additional Services.

CITY may from time to time require CVB to perform additional services not included in the Scope of Work. Such requests for additional services shall be made by CITY in writing and agreed upon by both parties in writing.

Section 5. Payment. CITY shall pay CVB said Consideration in accordance with the method and schedule of payment set forth in Exhibit B, attached hereto and incorporated herein.

CVB shall submit written requests for advanced payments for expenditures based on the schedule listed in Exhibit B for the various projects as set forth in Exhibit A. CITY shall provide payment to CVB upon approval of the request by CITY’s Finance Director or his designee. CITY shall use its best efforts to make payment to CVB within 15 days of receipt of request. Except as provided in Section 1(a) of this Agreement, CVB shall return to CITY any unused funding within sixty (60) days of reconciliation of the expenses described in Exhibit A or some other time period as mutually agreed upon in writing between CVB and CITY. Alternatively, CVB may request the approval of the City Council Liaison / CVB / Marketing Committee to retain the unused funding as part of the Fiscal Year 2025-2026 annual work plan. The approval of the Committee will require approval of the City Council.

Section 6. Independent Contractor. CVB is and shall at all times remain, as to CITY, a wholly independent Contractor. Neither CITY nor any of its agents shall have control over the conduct of CVB or any of CVB's employees, except as herein set forth. CVB shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of CITY.

Section 7. Assignment. This Agreement shall not be assigned in whole or in part, by CVB without the prior written approval of the City Manager. Any attempt by CVB to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect.

Section 8. Responsible Principal(s)
(a) CVB's Responsible Principal set forth above shall be principally responsible for CVB's obligations under this Agreement and shall serve as principal liaison Docusign Envelope ID: C8120708-80EF-4D22-8830-D876277EE498 5 B0785-0001\3124381v4.doc
between CITY and CVB. Designation of another Responsible Principal by CVB shall not be made without prior written consent of CITY.
(b) CITY's Responsible Principal shall be the City Manager or her designee set forth above who shall administer the terms of the Agreement on behalf of CITY.

Section 9. Permits and Licenses. CVB shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.

Section 10. Interests of CVB. CVB affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the Scope of Work contemplated by this Agreement. No person having any such interest shall be employed by or be associated with CVB.

Section 11. Insurance.
(a) CVB shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
(1) A policy or policies of Comprehensive General Liability Insurance, with minimum limits of Two Million Dollars ($2,000,000) for each occurrence, combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by CVB.
(i) If CONTRACTOR will be supplying alcoholic beverages, the General Liability Insurance shall include host liquor liability coverage with minimum limits of One Million Dollars ($1,000,000).
(ii) If CONTRACTOR is using a caterer or other vendor to supply alcohol that vendor must have liquor liability coverage with minimum limits of One Million Dollars ($1,000,000).
(iii) If CONTRACTOR intends to sell alcohol either the
CONTRACTOR or vendor providing the alcohol for sale must have a valid liquor sales license and liquor liability insurance covering the sale of alcohol with minimum limits of One Million Dollars ($1,000,000).
(2) A policy or policies of Comprehensive Vehicle Liability Insurance covering personal injury and property damage, with minimum limits of One Million Dollars ($1,000,000) per occurrence combined single limit, covering any vehicle utilized by CVB in performing the Scope of Work required by this Agreement. (3) Workers’ compensation insurance as required by the State of California.
(4) A policy or policies of Professional Liability Insurance (errors and omissions) with minimum limits of One Million Dollars ($1,000,000) per claim and in the aggregate. Any deductibles or self-insured retentions attached to such policy or policies must be declared to and be approved by CITY. Further, CONTRACTOR agrees to maintain in full force Docusign Envelope ID: C8120708-80EF-4D22-8830-D876277EE498 6 B0785-0001\3124381v4.doc
and effect such insurance for one year after performance of work under this Agreement is completed.
(b) CVB shall require each of its sub-contractors to maintain insurance coverage which meets all of the requirements of this Agreement. (c) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least a A+;VII in the latest edition of Best’s Insurance Guide.
(d) CVB agrees that if it does not keep the aforesaid insurance in full force and effect CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CVB’s expense, the premium thereon.
(e) At all times during the term of this Agreement, CVB shall maintain on file with CITY’s Risk Manager a certificate or certificates of insurance on the form set forth in Exhibit C, attached hereto and incorporated herein, showing that the aforesaid policies are in effect in required amounts. CVB shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate or certificates. The general liability insurance shall contain an endorsement naming CITY as an additional insured.
(f) CVB shall provide CITY with thirty (30) days prior written notice if the policies required under this Agreement will be canceled or reduced. All of the policies required under this Agreement shall state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (g) The insurance provided by CVB shall be primary to any coverage available to CITY. The policies of insurance required by this Agreement shall include provisions for waiver of subrogation.
(h) Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, CVB shall either reduce or eliminate the deductibles or self-insured retentions with respect to CITY, or CVB shall procure a bond guaranteeing payment of losses and expenses.
(i) The insurance coverage amounts required under the Agreement do not limit CITY’s right to recover against CVB and its insurance carriers.

Section 12. Indemnification.
(a) CVB agrees to indemnify, hold harmless and defend CITY, City Council and each member thereof, and every officer, employee and agent of CITY, from any claim, liability or financial loss (including, without limitation, attorney’s fees and costs) arising from any intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CVB or any person employed by CVB in the performance of this Agreement.
(b) All duties of CVB under this section shall survive termination or expiration of the Agreement.

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Section 13. Termination.
(a) Upon ninety (90) days written notice to CVB, this Agreement may be terminated by CITY, with or without cause, only by a majority vote of the City Council. In the event of such termination, CITY shall pay CVB for all costs and obligations reasonably incurred by CVB for CVB activities in performing its services under this Agreement prior to the date CVB was notified of such termination and such payment shall be in full satisfaction of CITY's obligations hereunder. CITY shall not be obligated to pay additional funds after issuance or receipt of such notice.
(b) In the event of termination or cancellation of this Agreement by CITY, due to no fault or failure of performance by CVB, CVB shall be paid based on the percentage of work satisfactorily performed at the time of termination. In no event shall CVB be entitled to receive more than the amount that would be paid to CVB for the full performance of the services required by this Agreement. CVB shall have no other claim against CITY by reason of such termination, including any claim for compensation.

Section 14. CITY's Responsibility. CITY shall provide CVB with all pertinent data, documents, and other requested information as is available for the proper performance of CVB's Scope of Work.

Section 15. Reports.
(a) CVB shall submit a quarterly report (4 reports each fiscal year) to CITY in a form acceptable to the City Manager or her designee including. The reports shall include, without limitation, information on overall project management and achievement of action items in relation to the Scope of Work as set forth in Attachment 1 to Exhibit A, including the percentage of the amount of budget used and accomplishments achieved in the quarter and/or action items completed and defined measurements of goal achievement for the Funding Period. CVB shall use its best efforts to develop a process to obtain data and metrics for the Program and provide detailed information regarding CITY’s return-on-investment to CITY. The City Manager and/or her designee and CVB shall mutually agree in writing on what metric information shall be gathered and provided to CITY to gauge the success of the programs identified in Attachment 1 to Exhibit A.
(b) CVB shall also supply CITY with an Audited Annual Financial report prepared by a Certified Public Accountant for the Funding Period. Such report shall provide consolidated financial reporting for CVB as a whole, and separately detailed accounts for each program funded by CITY. The report shall be due within six months of the end of CVB's 2025- 2026 fiscal year. At CITY’s sole discretion, consolidated annual accounts may be substituted for full audited accounts.
(c) With reasonable notice from CITY, CVB shall provide to CITY copies of any and all work product, documents reports, property and books produced by CVB in fulfillment of this Agreement (“Documents”). This shall be solely for the purpose of confirming and evaluating the execution of the programs described in this Agreement and shall not include records and documents unrelated to the execution of such programs (e.g., personnel records). CVB’s obligation to maintain such Documents shall continue for three years after the termination of this Agreement. This provision shall survive the termination of this Agreement.

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(d) CVB shall establish and maintain an accounting system in accordance with generally accepted accounting principles and standards. The system shall detail all costs chargeable to CITY under this Agreement and shall substantiate all such costs and comply with any applicable State and Federal standards.
(e) CVB shall endeavor to develop, in consultation with CITY, a programbased budget for all CITY-funded programs. Implementation of a program-based budget is not intended to affect the requirements outlined in paragraph (b) of this Section relating to generally accepted accounting principles.
(f) CITY shall have the right to request and perform a full audit of any and all activities undertaken by CVB that is funded by CITY. CVB shall fully comply with any request made by CITY selected auditor including, but not limited to, producing records and reports; providing information on business practices; and updating business practices, record keeping, reporting data, etc. as requested by CITY to comply with the audit findings. (g) CVB shall submit an annual report to CITY, as mutually agreed upon between CITY and CVB in writing that shows a measurement of the impact and metrics of the funding given to CVB by CITY on tourism. This shall include return-on-investment information.

CVB and CITY shall collaboratively identify agencies for a comparison report to determine if CITY is retaining its market share of tourism for the area if such information is publicly available.

Section 16. Policies. CVB shall maintain the policies outlined in Exhibit D, attached hereto and incorporated herein. CVB shall provide CITY with copies of all adopted or amended policies by CVB Board of Directors within thirty (30) days of such action. CITY may provide input on the creation of, or make recommendations for amendments to, the policies listed in Exhibit D prior to the adoption of the policies by CVB Board.

Section 17. Attendance at CVB Meetings. CVB shall notify CITY of the date and time for any and all CVB Board of Directors meetings as soon as possible, but no less than ten (10) calendar days’ notice prior to the meeting. The City Manager and/or her designee(s) may attend the meeting. CVB shall share the agenda with CITY at the same time notice of the agenda items is provided to CVB Board of Directors, which shall be no less than twenty-four (24) hours prior to the meeting.

Section 18. Members of CVB Board Finance Committee. The City Manager shall designate one (1) CITY staff member to be a member of CVB Board Finance Committee.

Section 19. Records Retention and Examination. CVB shall retain, protect, and maintain in an accessible location all records and documents, including paper, electronic, and computer records, with respect to all matters covered under this Agreement for five (5) years after receipt of final payment by CITY under the Agreement. CVB shall make all such records and documents available for inspection, copying, or other reproductions, and auditing by authorized representatives of CITY, including the City Manager or designee, free of charge. CVB shall make available all requested data and records at reasonable locations within the County of Los Angeles at any time during normal business hours, and as often as CITY deems necessary. If records are not made available within the County of Los Angeles, CVB shall pay CITY’s travel, hotel, and meal costs to the location where the records are maintained. CVB must include this provision in all subcontracts made in connection with this Agreement. This provision shall survive the termination of the Agreement.

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Section 20. Nondiscrimination by CVB. In the performance of this Agreement, CVB assures that no person shall, on the basis of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this Agreement or under any project, program or activity supported by the Agreement, as required by Title VI of the Civil Rights Act of 1964, as amended, the Civil Rights Restoration Act of 1987, and Federal Executive Order 12898 (Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations). CVB shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law, and shall take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.

Section 21. Notice.
(a) Any notices, bills, invoices, etc. required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during the receiving party's regular business hours or by facsimile before or during the receiving party's regular business hours; or (b) on the second business day following deposit in the United States mail, postage prepaid to the addresses set forth above, or to such other addresses as the parties may, from time to time, designate in writing pursuant to this section.
(b) Whenever it shall be necessary for any party to serve notice on another respecting this Agreement, such notice shall be served by certified mail addressed to the City Clerk of the City of Beverly Hills, 455 North Rexford Drive, Beverly Hills, California 90210; or to Beverly Hills Conference and Visitors Bureau, 9400 Santa Monica Blvd., Beverly Hills, California 90210, unless and until a different address may be furnished in writing by any party, and such notice shall be deemed to have been served within seventy-two (72) hours after the same has been deposited in the United States Post Office by certified mail. This shall be valid and sufficient service of notice for all purposes.

Section 22. Attorney's Fees. In the event that either party commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney's fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.

Section 23. Entire Agreement. This Agreement represents the entire integrated agreement between CITY and CVB, and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both CITY and CVB.

Section 24. Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express or implied subject matters of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail.

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Section 25. Governing Law. The interpretation and implementation of this Agreement shall be governed by the domestic law of the State of California.

Section 26. CITY Not Obligated to Third Parties. CITY shall not be obligated or liable under this Agreement to any party other than CVB.

Section 27. Severability. Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the ____ day of ____________________ 2025, at Beverly Hills, California.

CITY OF BEVERLY HILLS
a Municipal Corporation
SHARONA R. NAZARIAN, PsyD
Mayor of the City of Beverly Hills, California
ATTEST:
(SEAL)

HUMA AHMED
City Clerk

BEVERLY HILLS CONFERENCE AND

VISITORS BUREAU

JULIE WAGNER
CEO

JOHN SCANLON
Chair
[Signatures continue]
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APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager

CHAD LYNN
Deputy Director of Special Projects, Public
Safety

SHARON L’HEUREUX DRESSEL
Risk Manager

ANTHONY RODSTEIN
Purchasing Services Manager
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EXHIBIT A

SCOPE OF WORK
I. SCOPE OF WORK
CVB shall perform the services described in this Exhibit A, attached hereto and incorporated herein. This shall include:

Marketing
 New York Sales Mission
 Destination Marketing campaigns:
o Luxury With A Heart. City With A Soul Campaign fall 2025 o Holiday content to feature Rodeo Drive and the destination o Safety campaign for spring 2026 (this will also be funded from Carryover/forward) o Co-op Programs with other Destinations, such as Visit California Expedia campaign
o Content campaigns that utilize creative, media and social media to help shape perceptions of the City
Domestic Public Relations
 PR agency for 12 months
 Messaging to coincide with all marketing campaigns
 Domestic media familiarization trips to secure coverage in top publications (Travel + Leisure, Conde Nast, Robb Report)
 Visit California media missions in San Francisco, New York, and Los Angeles Meetings, Incentives, Conferences, and Exhibitions (MICE)  Milken Conference support
 Financial & Insurance Conference Professionals (FICP)  Meeting Professionals International (MPI)
 Visit California Forum(s)
 Prestige Partners
 Roadshows in Midwest, Texas, Florida, and New York
 Society for Incentive Travel Agents (SITE)
 Amex GBT
 Maritz
 Northstar
 West Coast activities for new Group Sales Director to be hired as soon as possible FY 2- 25/26.

International Marketing
 Leisure Travel
o Australia/New Zealand activities for in-market agency o Visit California Luxury Forum
 Travel Trade Shows
o Worldwide Exhibition for Incentive Travel, Meetings & Events (IMEX) o LE Miami
 International PR & Travel Trade Representation
o Agency representatives from the Middle East, United Kingdom, Australia, Mexico o Media Familiarization trips
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 In-Market Program: Virtuoso ½ year
 Emerging Markets
o Middle East Sales Mission
o Mexico Luxury Lab participation and trade event in Mexico City Digital/Interactive
 Social media with vendor Ally
 Search Engine Marketing and Optimization (SEM/SEO)
 Continuation of:
o Hotel re-marketing and hotel referrals due to their high ROI o Visitor email acquisition campaign to boost audience
 *New* Website frontend refresh
Metrics/Research
 Co-Star, which tracks destination hotel performance
 Visa – international and domestic credit card spend information  Datafy Geotracking which includes Mastercard and mobile phones  Tourism Economics Symphony which uses all available data to create a dashboard that better define overall progress of trackable initiatives Funding shall cover operating and marketing expense forecast for the twelve-month period of this agreement and expenses including, but not limited to:
 Salaries, taxes and benefits;
 Rent and utilities; and
 Marketing initiatives targeted to domestic and international consumers and trade.

CVB may reallocate funding for initiatives as described in Section 1. CVB's Scope of Work for the activities outlined by category in Exhibit B, attached hereto and incorporated herein.

Program Metrics
CVB shall use its best efforts to develop a process to obtain data and metrics for the programs outlined to the City Council at the June 18, 2024 City Council formal meeting. The CVB shall provide detailed information regarding CITY’s return-on-investment to CITY. CVB shall coordinate such information with the City Manager, CITY’s Community Outreach Manager, and/or the City Manager’s designee. The information contained in the report as well as the design shall be mutually agreed upon in writing by CVB and CITY prior to the final report being produced.

Programming
Where applicable, CVB shall provide designs to CITY for all CITY advertising, graphics, collateral, merchandise, etc. with enough time to provide feedback and request a redesign. Any costs of a redesign shall be borne by CVB. CVB shall not produce, fabricate, manufacture, or distribute advertising or merchandise without prior CITY approval.

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Quarterly Meetings
CVB shall coordinate four (4) quarterly meetings with the Beverly Hills City Council Liaisons CVB / Marketing Committee with the City Manager, Community Outreach Manager, or the City Manager’s designee. The primary purpose of the meetings will be to review CVB’s work plan accomplishments year to date and upcoming CVB proposed work plan items.

II. INFECTIOUS DISEASE
A. CVB shall be required to know and adhere to the California Occupational Safety and Health Act of 1973 (“CalOSHA”) COVID-19 Prevention Non-Emergency Regulations, the California Department of Public Health orders and all state, federal and local regulations regarding COVID-19 and other infectious diseases that may pose a risk to public health.

B. CVB shall advise employees who have any symptoms of COVID-19, the common cold, influenza or infectious disease not to report to work.

C. CVB shall notify their CITY Responsible Principal and the Risk Manager immediately upon learning that an employee who was working onsite at a CITY facility has been diagnosed with COVID-19 or any infectious disease.

For questions, please contact CITY’s Responsible Principal or Risk Management at 310- 285-1073.

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EXHIBIT B

SCHEDULE OF PAYMENT AND RATES
CITY shall compensate CVB for the satisfactory performance of the work described in this Agreement, or as mutually agreed upon in writing prior to performing the services described in the Agreement, in an amount not to exceed Four Million Six Hundred Sixty-Eight Thousand Five Hundred Eighty-One Dollars ($4,668,581.00). Funding received by CVB from CITY shall be spent as shown below. Any reallocation of funding between items, or for items not listed, shall comply with the requirements listed in Section 1. CVB’s Scope of Work of this Agreement.

CVB FY 25/26 Work Plan
Domestic Marketing
New York Sales Mission $150,000
Destination Marketing $575,000*
Domestic Public Relations $141,300
Meetings, Incentives, Conferences, and Exhibitions (MICE) Marketing $286,300 Advocacy $0
Partnership Marketing and Secondary Market Sales Initiatives $40,000 Domestic Marketing Sub-Total $1,192,600
International Marketing
Sales Missions $23,000
Trade Shows $108,000
Public Relations $28,000
Representation $244,000
Emerging Markets $70,000
In-Market Programs (Virtuoso Partnership) $25,000
International Marketing Sub-Total $498,000
Interactive
Database/eMail $35,340
Search Engine Optimization (SEO) / Search Engine Marketing (SEM) $106,000 Content Strategy / Site Refresh $143,000
eCommerce $6,000
Domestic Site $102,120
Digital/Interactive Sub-Total $392,460
Collateral
Visitor Guide $5,000
Premiums $17,000
Collateral Sub-Total $22,000
Metrics/Research
Research Sub-Total $76,000
Special Programs
Special Programs Sub-Total $50,000
Operational (Salaries, Taxes, Benefits, Rent Etc.)
Salaries $1,415,910
Part-Time Salaries $38,519
Docusign Envelope ID: C8120708-80EF-4D22-8830-D876277EE498 16 B0785-0001\3124381v4.doc
Taxes $119,394
Employee Benefits $280,551
Rent $208,404
All Other Operations (insurance, utilities, professional services, etc.) $357,243 Operational (Salaries, Taxes, Benefits, Rent Etc.) Sub-Total $2,420,021 Visitor Center
Merchandise/Display $10,000
Communications $7,500
Collateral 0
Visitor Center Sub-Total $17,500
Total $4,668,581
FY 23/24 Carry Forward to FY 24/25 to Offset Expenses $456,484 Total FY 24/25 Work Plan Proposed Budget $5,125,065
CITY authorizes CVB to carry forward Four Hundred Fifty-Six Thousand, Four Hundred and Eighty-Four Dollars ($456,484,.00) from Fiscal Year 2024-2025 to Fiscal Year 2025-2026 for additional tourism and marketing programs.

The total budget for CVB's work plan for Fiscal Year 2025-2026 is Five Million One-Hundred Twenty Thousand and Sixty-Five Dollars ($5,120,065.00), including this carry forward funding; however, CITY shall only pay CVB an amount not to exceed Four Million Six Hundred Sixty-Eight Thousand Five Hundred Eighty-One Dollars ($4,668,581.00).

CVB shall submit a statement to CITY for services as outlined in Exhibit A, which shall include documentation setting forth in detail a description of the services to be performed. CITY shall pay CVB in accordance with the Payment Schedule below:

Funding Period (July 1, 2025 – June 30, 2026)
CVB Remits
Invoice to CITY
CITY Issues
Payment to CVB Period Covered Payment Amount
July 1, 2025 July 24, 2025 July 1 – September 30 $1,167,145.25 September 2, 2025 September 18, 2025 October 1 – December 31 $1,167,145.25 December 1, 2025 December 18, 2025 January – March 31 $1,167,145.25 March 2, 2026 March 19, 2026 April 1 – June 30 $1,167,145.25 Total $4,668,581
Should TOT revenue be estimated by CITY’s Finance Director or his designee at a level different than what is adopted in CITY’s Fiscal Year 2025-2026 budget, and CITY needs to adjust the amount of the payment listed in the table above for a particular Period, then CITY shall meet with CVB to discuss potential adjustments of CVB’s Fiscal Year 2025-2026 Work Plan.

Docusign Envelope ID: C8120708-80EF-4D22-8830-D876277EE498 17 B0785-0001\3124381v4.doc
This adjustment of payment may occur with forty-five (45) days’ notice from CITY to CVB after a discussion occurs between CVB’s Chief Executive Officer and the City Manager or her designee in order for an informed decision regarding work plan impacts, and/or at the direction of City Council Liaisons at the required quarterly meeting. The discussion shall occur within a reasonable timeframe of the request being made by CITY to CVB.

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EXHIBIT C

CERTIFICATE OF INSURANCE
This is to certify that the following endorsement is part of the policy(ies) described below :

NAMED INSURED COMPANIES AFFORDING COVERAGE
A.

ADDRESS B.

C.

COMPANY
(A.B.C.) COVERAGE POLICY NUMBER

EXPIRATION
DATE B.I. LIMITS P.D. AGGREGATE
 AUTOMOBILE LIABILITY
 GENERAL LIABILITY


PRODUCTS/COMPLETED

OPERATIONS
 BLANKET CONTRACTUAL
 CVB'S PROTECTIVE
 PERSONAL INJURY
 EXCESS LIABILITY
 WORKER'S COMPENSATION
It is hereby understood and agreed that the City of Beverly Hills, its City Council and each member thereof and every officer and employee of the City shall be named as joint and several assureds with respect to claims arising out of the following project or agreement:

It is further agreed that the following indemnity agreement between the City of Beverly Hills and the named insured is covered under the policy: CVB agrees to indemnify, hold harmless and defend City, its City Council and each member thereof and every officer and employee of City from any and all liability or financial loss resulting from any suits, claims, losses or actions brought against and from all costs and expenses of litigation brought against City, its City Council and each member thereof and any officer or employee of City which results directly or indirectly from the wrongful or negligent actions of CVB's officers, employees, agents or others employed by CVB while engaged by CVB in the (performance of this agreement) construction of this project.

It is further agreed that the inclusion of more than one assured shall not operate to increase the limit of the company's liability and that insurer waives any right of contribution with insurance which may be available to the City of Beverly Hills.

In the event of cancellation or material change in the above coverage, the company will give 30 days’ written notice of cancellation or material change to the certificate holder.

Except to certify that the policy(ies) described above have the above endorsement attached, this certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies.

DATE : BY :

Authorized Insurance Representative
TITLE :

AGENCY : Address :

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EXHIBIT D

CVB POLICIES
CVB shall create, maintain, and amend the following policies utilizing guidance provided by CITY which may take the form of Administrative Regulations and/or other adopted CITY policies:
1) Financial Policy
2) New Business Procurement Policy
3) Travel Policy
4) Group Entertainment Policy
Docusign Envelope ID: C8120708-80EF-4D22-8830-D876277EE498 Certificate Of Completion
Envelope Id: C8120708-80EF-4D22-8830-D876277EE498 Status: Sent Subject: Complete with Docusign: CLEAN Agreement - Conference and Visitors Bureau (CVB) FY25-26.pdf Source Envelope:

Document Pages: 19 Signatures: 6 Envelope Originator:

Certificate Pages: 3 Initials: 0 Mandy Jiang
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
6/24/2025 2:26:05 PM
Holder: Mandy Jiang
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Julie Wagner
[email protected]
CEO
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 108.68.57.25
Sent: 6/24/2025 2:31:20 PM
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Electronic Record and Signature Disclosure:

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John Scanlon
[email protected]
General Manager
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(None) Signature Adoption: Pre-selected Style
Using IP Address: 216.211.173.157
Sent: 6/24/2025 2:38:38 PM
Resent: 6/25/2025 9:03:59 AM
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Signed: 6/26/2025 10:32:46 AM
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Chad Lynn
[email protected]
Assistant Dir of Publc Work CBH
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.166
Sent: 6/26/2025 10:32:48 AM
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Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
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(None)
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Signer Events Signature Timestamp
Anthony Rodstein
[email protected]
Purchasing Services Manager
City of Beverly Hills (Finance Department)
Security Level: Email, Account Authentication
(None)
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Using IP Address: 198.245.189.181
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Deborah Hakman For
[email protected]
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Using IP Address: 208.87.233.201
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Mandy Jiang
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 6/26/2025 11:37:31 AM
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Nancy Hunt-Coffey
[email protected]
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(None)
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Huma Ahmed
[email protected]
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(None)
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Sharona R. Nazarian
[email protected]
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Envelope Sent Hashed/Encrypted 6/24/2025 2:31:20 PM
Payment Events Status Timestamps
Attachment 2

STAFF REPORT
Meeting Date: June 3, 2025
To: Honorable Mayor & City Council
From: Magdalena Davis Jones, Community Outreach Manager Chad Lynn, Deputy Director Special Projects, Public Safety Subject: Recommendation of the City Council Liaison / CVB/Marketing Committee for Fiscal Year 2025-2026 Workplan and Funding Requests for the Beverly Hills Conference and Visitors Bureau (CVB)
Attachments: 1. Beverly Hills Conference and Visitors Bureau FY 25/26 Workplan Presentation

2. City Council Liaison / CVB/Marketing Committee Report from May 27, 2025 (without attachments)

INTRODUCTION
This item provides the recommendation of the City Council CVB / Marketing Committee Liaisons Mayor Nazarian and Councilmember Friedman (Liaisons) to support the Beverly Hills Conference and Visitors Bureau’s (CVB) proposed annual work plan, and corresponding funding request in the amount of $4,663,863 for Fiscal Year 2025/2026 (FY 25/26).

A one-time carryover allocation was also recommended in the amount of $206,484 from prior year carryovers and an estimated $250,000 from unused funds from Fiscal Year 2024/2025 (FY24/25), for a total estimated one-time carryover amount of $456,484.

The carryover funding will support a direct to consumer safety messaging campaign, Unity Through Tourism marketing, exploration of a Tourism Marking District (TMD), and the International Luxury Travel Market Aisa Pacific.

DISCUSSION
The CVB is contracted by the City to conduct a variety of tourism, sales, and marketing programs promoting Beverly Hills. They receive City funding to promote Beverly Hills worldwide and domestically as a stay, shop, and dine destination through marketing programs and events that build awareness and drive consumer revenue to the City.

Meeting Date: June 3, 2025

City Council is requested to review and approve the Liaison recommendation from their meeting on May 27, 2025, for the CVB’s annual work plan and funding request in the amount $4,663,863 for FY 25/26, from the Tourism and Marketing budget, funded by Tourism Occupancy Tax (TOT). Additionally, Liaisons recommended the reallocation of the carryover funds from the previous fiscal years. Attachment 1 provides details of the full work plan proposals and funding requests.

Pursuant to the agreement with the City, the CVB Liaisons are required to review allocations of funds to different categories of work, including those proposed to be carried over from prior fiscal years. The Liaisons met on May 27, 2025, and recommended the proposed CVB workplan move forward for Council approval (Attachment 2), with some recommended funding source changes, including the carryover. Rather than fund CVB Board-requested sales positions using carryover funding, the Liaisons recommended supporting one-time uses, such as proposed marketing initiatives. Separately, the Liaisons did not support moving forward with funding the proposed safety messaging campaign using the “set-back” for safety from the Tourism and Marketing budget. The CVB subsequently scaled back the proposed safety messaging campaign and requested funding using the carryover reallocation instead.

The main categories of work that the CVB focuses on are:

1. Marketing, which includes sales missions and destination programs

2. Domestic public relations, which in addition to a PR firm, includes media missions

3. Meetings, Incentives, Conferences, and Exhibitions (MICE), focusing on events that target meeting and incentive planners, Milken support and other prestige partners

4. International Marketing, including leisure travel tradeshows for luxury destinations, and programs in the largest markets for Beverly Hills: the Middle East, United Kingdom, Australia, and Mexico

5. Digital and Interactive programs, which include social media and website

6. Metrics and Data, such as geotracking, travel research, and partnerships with Visa
All of the above categories of work are proposed to be continued, however the tourism, sales and marketing industry has been negatively impacted recently, such as domestic and local economic challenges including locally a reduced TOT forecast, and international challenges, including safety concerns from travelers. Based on the reduced TOT forecast, the CVB has proposed a budget reduction to their base workplan from previous years. They have also moved the proposed funding for the safety messaging campaign, the Unity Through Tourism initiative, exploration of a Tourism Marketing District (TMD), and the International Luxury Travel Market Asia Pacific to the reallocated carryover funds, as these are all one-time costs, and not ongoing sales positions, which now appear in the CVB proposed base budget of $4,663,863.

FY 2025/26 Work Plan Highlights
With the challenges and no changes to the main categories of work, the following are highlights of changes and updates to the FY 25/26 work plan:

Meeting Date: June 3, 2025

Sales Team Investment:

The hotel General Managers on the CVB Board feel strongly that an additional group sales position is essential to focus on under-tapped markets and help properties meet current tourism challenges head-on
• $270,000 of the requested budget would go to the sales position, including salary, taxes, benefits, plus travel and business development activities, within that total amount
• It should be noted the CVB sales positions will primarily work remote, due to onsite space challenges and reallocating the funding from a remodel as the priorities shift
Route 66 Centennial: a collaboration with Visit California • Beyond focusing on this milestone in press and marketing, • Create an “I Love Lucy” Route 66 road trip activation to coincide with the 2026 Concours d’ Elegance Father’s Day Car Show
Research: add Demand 360 to make up for Co-Star (now Smith Travel Research) gap • Demand 360 which will provide 12-month forward looking data • As well as provide detailed information on which third party is responsible for the booking
Update to ongoing programming:

New York Sales Mission
• Develop unique programming that will attract travel agents and meeting planners from New York and New Jersey the week of October 20, 2025 • This will match with the City and Chamber’s proposed mission trip Fall 2025 Signature Campaign
Relaunch Luxury with a heart. City with a soul.
• August through December 2025
• Refresh campaign landing page and related assets, including animated and static banners
• Landing page will highlight individuals who embody campaign theme – exemplary hotel, retail and dining service
2025 Holiday Season
Video Development for TV and Streaming
• Anticipated flight (6 weeks): November 3 – December 13, 2025 • BHCVB will create Rodeo Drive Holiday Lighting Celebration and holiday destination videos
• Will promote via linear and Connected TV in select feeder markets (TBD) Social Media, Marketing and PR Initiatives
Develop and curate influencer campaigns to reinforce our brand attributes • Concepts under consideration include:
o Cuisine & Couture (redux)
Meeting Date: June 3, 2025

o Get Ready with Me
o Street Style
Travel Trade: Leisure Sales and Group Sales Activity
A focus on continuing business in our key international and domestic feeder markets with:
• Travel Tradeshows, including Virtuoso Travel Week, L.E/Miami and Visit California Luxury Forum
• Communications
• Sales missions in New York and the Middle East
Group sales will focus on incentive travel:
• Continuing to target high-end meeting and incentive planners by attending tradeshows and events,
• Participating in organized road shows pitching Beverly Hills to key planners • Current Senior Director will manage East and Midwest markets, and the new Group Sales position will focus on the West Coast
The funding request for the workplan above totals $4,663,863, with full details and percentage changes from the previous fiscal year in the fiscal impact section of the report (Attachment 1).

Carryover Funding Allocation
In addition to the work plan and budget outlined above, the Liaisons recommended a one-time carryover allocation in the amount of $206,484 from prior year carryovers and an estimated $250,000 from unused funds from Fiscal Year 2024/2025 (FY24/25), for a total estimated one-time carryover amount of $456,484. In order to meet the goals of the CVB Board, particularly with sales, the Liaison recommended staff positions not be funded out of one-time budget, and so that was moved to the base funding for the workplan. Instead, one-time marketing initiatives were recommended to move forward from the total $456,484.

It should be noted that the previous allocations for a remodel of the CVB offices and visitors center have been put aside in favor of current priorities. Liaisons noted that future carryover requests may be supported for a long-term CIP-like fund such as a remodel, but would likely not be supported for ongoing and operational programming in future years. Based on that, the CVB is seeking final approval for the following allocations for the carryover funding:

Unity Through Tourism: a three-part program to align with the Mayor’s goals, the CVB Board and staff are proposing to emphasize that unity is the new luxury. • Part 1: develop a white paper
• Part 2: invite Consul Generals and their Tourism Ministers to a summit held in Winter, to brainstorm and take action based on the findings of the white paper • Part 3: launch a month-long international festival celebrating global cultures at participating hotels, with Consuls as partners, based on the feedback from the summit
Meeting Date: June 3, 2025

A World Away from Greater LA, Safety messaging initiative:

With the City focusing efforts on making and keeping Beverly Hills one of the safest communities in the world, external messaging to travelers beyond residential and local drive markets has been identified as key by the CVB Board and staff. • Spring 2026 consumer campaign will focus on Beverly Hills safety superiority by differentiating ourselves from the greater Los Angeles area o Campaign would include content development in conjunction with BHTV, advertising, creative, media and trade emphasizing that we are the safest location in the region
Tourism Marketing District (TMD): Liaisons supported this effort to explore other areas of funding beyond the traditional TOT allocation to the Tourism and Marketing budget, including an additional tax or fee contribution from the hotels • Also funded through carryover is an exploration of a Tourism Marketing District (TMD) to get data on how a TMD and its associated assessment may close the funding gap between Beverly Hills and its competition destinations And finally, with any additional carryover allocation, participation in international sales was moved to this, as it is more apt to be funded from one-time dollars, rather than something like a sales position:
• International Luxury Travel Market Asia Pacific
The current carryover from FY 24/25 is estimated to be $250,000, although it should be noted the actual amount will be calculated at year-end, and an accurate amount be reviewed with the Liaisons at their next quarterly meeting. The Liaisons did commend the CVB for being fiscally prudent, as carryover dollars are often from savings throughout the year from various programs coming in under budget.

FISCAL IMPACT
To carry out the proposed work plan for FY 25/26, the CVB requests $4,663,863 in Tourism and Marketing funding, as further detailed in Attachment 1 and shown below.

The CVB is also requesting to carryover unused funding of $456,484 and allocate it as detailed above.

The following executive summary table from Attachment 1 gives the budget breakdown of each category of the workplan, and the comparison to funding the year prior (table appears below the page break):

Meeting Date: June 3, 2025

Description
25/26
Proposed
Budget
24/25
Budget Variance Budget Description
Domestic Marketing $1,172,600 $1,483,300 -21%
Reduction in domestic destination
marketing as some of that will come
out of Carryover.

International Marketing $487,000 $616,100 -21% Reduction in travel trade shows.

Interactive $382,460 $475,145 -20% Reduction in SEM.

Collateral $22,000 $24,640 -11% Reduced Visitor Guide costs.

Research $71,000 $74,152 -4%
No longer need funding study funds.

Additional funds for TMD exploration
will come out of Carryover.

Special Programs $50,000 $50,000 0%
Operations, including
Salaries, Taxes &
Benefits $2,461,303 $2,239,554 10%
Addition of Group Sales Manager,
3% COLA and increased fixed costs
due to inflation.

Visitor Center $17,500 $25,000 -30% Reduction in ad budget.

Total Budget $4,663,863 $4,987,891 -6.5%
City is projecting $4M less in TOT
revenue.

Salaries Taxes and
Benefits Only $1,894,870 $1,685,058 12%
Addition of Groups Sales Manager,
3% COLA and increased benefit
costs.

Carryover $456,484 $331,484 -27.4%
The table below reflects the consideration approved by the City Council for the CVB adopted budget with the City since 2016, and the proposed base funding request for FY 25/26 for the CVB’s work plan.

CVB Funding Agreements FY 2016-2017 through proposed FY 2025-2026 Year Funding
FY 16/17 Adopted Budget $3,829,202
FY 17/18 Adopted Budget $6,525,479 total
$5,303,733 without extension*
FY 18/19 Adopted Budget $3,880,505
$5,102,251 with extension**
FY 19/20 Adopted Budget $4,557,523
FY 20/21 Adopted Budget $2,702,336
FY 21/22 Adopted Budget $3,430,990
FY 22/23 Adopted Budget $4,261,470
FY 23/24 Adopted Budget $4,809,410
Meeting Date: June 3, 2025

FY 24/25 Approved Budget $4,987,891
FY 25/26 Proposed Budget $4,663,491
*Funding from FY 17/18 was extended to September to cover Summer BOLD **Q1 Funding for FY 18/19 in the amount of $1,221,746 was covered in the extension from FY 17/18
The City has maintained a policy of funding its tourism and marketing programs from a specific allocation of the transient occupancy tax (“TOT”). The City collects a total of fourteen percent TOT based on gross room sales from the City’s hotels. One-seventh of the total TOT revenue has been the basis of calculating the funding for the Tourism and Marketing budget in Beverly Hills for approximately 27 years.

The Finance Department is currently forecasting TOT revenue of $46,364,000 for FY 25/26, a decline from $51,200,000 for FY24/25.

Using the $46,364,000 estimate for TOT, the one-seventh amount would be approximately $6,623,000. Staff anticipates this funding would be allocated for various programs and partner agreements including the request from the CVB workplan, but also the RDC base funding workplan, a portion of the Chamber of Commerce workplan, Holiday décor and the Holiday Lighting Celebration on Rodeo Drive, the Concours d’Elegance Father’s Day Car Show, landscaping funding, and trademark licensing intellectual property legal services.

This funding that is approximated above does not include either the true-up of any funds that were actual, as opposed to forecasted, from the current fiscal year.

RECOMMENDATION
Staff recommends Council review and provide recommendations for the Beverly Hills Conference and Visitors Bureau’s proposed annual work plan and corresponding funding request in the amount of $4,663,863 for FY 25/26, and the request to approve carry over allocations of $456,484 in unused funding.

Keith Sterling,
Deputy City Manager
Approved By