BEVERLY HILLS AGENDA REPORT. Meeting Date: November 15, 2016 Item Number: D 8 To: From:

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1 BEVERLY HILLS Meeting Date: Nvember 15, 2016 Item Number: D 8 T: Frm: AGENDA REPORT Hnrable Mayr & City Cuncil Megan Rach, Marketing & Ecnmic Sustainability Manager Subject: AMENDMENT NO. 1 TO AN AGREEMENT BY AND BETWEEN THE CITY OF BEVERLY HILLS AND RODEO DRIVE, INC. FOR FISCAL YEAR MARKETING AND SPECIAL EVENTS; AND APPROVAL OF A CHANGE PURCHASE ORDER IN THE AMOUNT OF $75,000 TO RODEO DRIVE, INC. FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $1,075,000 Attachments: 1. Amendment N. 1 t Agreement RECOMMENDATION It is recmmended that the City Cuncil apprve amendment n. I t an agreement by and between the City f Beverly Hills and Rde Drive, Inc. fr Fiscal Year marketing and special events and apprve a change purchase rder in the amunt f $75,000 t Rde Drive, Inc. fr a ttal nt-t-exceed amunt f $1,075,000. INTRODUCTION This item is amendment n. 1 t the agreement with Rde Drive, Inc. fr Fiscal Year marketing and special events, The amendment includes funding fr firewrks fr the annual hliday lighting ceremny n Sunday, Nvember 20, 2016 and funding fr pht activatins n Rde Drive fr the six-week hliday shpping seasn. DISCUSSION The develpment, executin, and prmtin f a chesive hliday prgram is a key gal f the City Cuncil and its partner rganizatins including the Beverly Hills Cnference and Visitrs Bureau (BHCVB ) and the Rde Drive Cmmittee ( RDC ). Each year the City spnsrs a signature hliday prgram designed t celebrate the seasn and attract visitrs frm arund the regin t visit, shp and dine in Beverly Hills. Page 1 f 2

2 At the Nvember 1, 2016 study sessin meeting, the City Cuncil apprved funding fr enhancements t the hliday prgramming n Rde Drive as fllws: Hliday Lighting Ceremny Firewrks Enhancement On Octber 4, 2016, the City Cuncil apprved the verall design theme and specific cmpnents fr the Rde Drive hliday decr prgram and lighting ceremny scheduled fr Nvember 20, The City s Fiscal Year funding agreement with the Rde Drive Cmmittee includes $200,000 fr the lighting ceremny event. The Cmmittee and its new agency f recrd, AGENC, have expanded the ftprint f this year s ceremny t include a hliday fd and beverage cmpnent n the 200 blck f Rde Drive. Fllwing City Cuncil directin at the Nvember 1 meeting, the ceremny will als feature a 3-minute firewrks finale estimated t cst $30,000. Rde Drive Hliday Pht Activatins This year s lighting ceremny will feature decrative pht activatins where peple can take a pht and share it with family and friends via scial media using #OnlyOnRde and #LveBevHills. The Rde Drive Cmmittee will keep the activatins up past the ceremny fr six weeks t attract visitrs during the shpping seasn. The activatins will be placed at 2 Rde and n the 300 blck, in frnt f the Battaglia stre, where there is sufficient clearance n the sidewalk. The ttal cst fr the activatins fr the sixweek perid is $85,000. This includes fabricatin, installatin, prject management, and 24/7 security. As prpsed, the cst will be split between the City and its partner rganizatins; with the City funding $45,000, the Cnference and Visitrs Bureau funding $20,000, and the Rde Drive Cmmittee funding $20,000. FISCAL IMPACT The City s Finance Department prjects $39,140,000 in Transient Occupancy Tax (TOT) revenue fr the Fiscal Year, which results in a Turism and Marketing budget f $5,951,429 and is budgeted in prgram accunt The budget includes $320,000, a cmbinatin f $120,000 fr cntingency prgrams and $200,000 fr the buffer/reserve accunt. Per City Cuncil directin at the Nvember 1 meeting, the $75,000 in enhancements t the hliday prgramming n Rde Drive will be funded frm the Turism and Marketing budget cntingency and buffer/reserve funding. Chavez Apprved By Page2f2

3 Attachment 1

4 AMENDMENT NO. BETWEEN THE CITY Of BEVERLY HILLS AND RODEO 1 TO AN AGREEMENT BY AND DRIVE, INC. FOR FISCAL YEAR MARKETING AND SPECIAL EVENTS NAME OF CONTRACTOR: Rde Drive Inc. RESPONSIBLE PRINCIPAL OF CONTRACTOR: Mark Trnstein, President CONTRACTOR S ADDRESS: P.O. Bx 853 Beverly Hills, CA CITY S ADDRESS: City f Beverly Hills 455 N. Rexfrd Drive Beverly Hills, CA Attentin: Mahdi Aluzri, City Manager COMMENCEMENT DATE: Nvember 15, 2016 TERMINATION DATE: June 30, 2017 CONSIDERATION: Original Agreement Nt-t-Exceed: $1,000,000 This Amendment N. Ttal Nt-t-Exceed: $1,075,000 I: $75, I 20 I 4258v I.dc

5 AMENDMENT NO. 1 TO AN AGREEMENT BY AND BETWEEN THE CITY Of BEVERLY HILLS AND RODEO DRIVE, INC. FOR FISCAL YEAR MARKETING AND SPECIAL EVENTS This Amendment N. I is t that certain Agreement by and between the City f Beverly Hills (hereinafter called CITY ), and Rde Drive, Inc. (hereinafter called CONTRACTOR ) fr fiscal Year Marketing and Special Events, dated June 21, 2016 and identified as Cntract N ( Agreement ). CITY and CONTRACTOR desire t amend the Agreement. NOW, THEREFORE, the parties hereby agree as fllws: A. Sectin 1 f the Agreement shall be amended and restated as fllws: Sectin 1. Scpe f Wrk and Authrizatin f Funding. RDI shall prvide the services (bth persnnel and deliverables) necessary t prduce the fllwing prgrams (the Prgrams ) during Fiscal Year (July 1, 2016 thrugh June 30, 2017): (i) the Rde Drive Walk f Style, (ii) Rde Drive Cncurs d Elegance, (iii) Hliday Decr and Lighting Ceremny, (iv) Hliday Pht Activatins, (v) LIVE! Frm Rde Drive, (vi) General Marketing, (vii) Scial Media Marketing, and (viii) Website Update events and initiatives fr the prmtin f the City and Rde Drive as set frth in Scpe f Wrk attached heret as Exhibit A. as fllws: B. Paragraphs (a) and (b) f Sectin 2 f the Agreement shall be amended and restated n 2. aymep (a) City shall prvide funding in the amunt f $1,075,000 t be used by RDI fr the Prgrams and services, as set frth in Exhibit A, t be held during fiscal Year The funds shall be utilized and serve as cmpensatin (including but nt limited t verhead, third party csts, etc.) fr RDI s implementatin f the Scpe f Wrk. In n case shall RDI request that City staff undertake any f the activities set frth in Exhibit A. Upn request by the Deputy City Manager, RDI will prduce dcumentatin (e.g., invices) t establish that it has fulfilled its freging cnimitrnent t the City s satisfactin. BO785-OOO1 2O4258v1.dc

6 (b) The S 1,075,000 shall be used fr the Prgrams and allcated by RDI as fllws: Rde Drive Walk f Style event $125,000 Rde Drive Cncurs d Elegance $40,000 Rde Drive Hliday Decr Prgram $200,000 Hliday Lighting Ceremny $230,000 Hliday Pht Activatins $45,000 LIVE! frm Rde Drive $60,000 General Marketing $200,000 Scial Media Marketing $165,000 Website Update - $10,000 C. Sectin 9 f the Agreement shall be amended and restated as fllws: Sectin 9. Terminatin f Agreement. City may terminate this Agreement early, at any time, with r withut cause, upn thirty (30) days prir written ntice t RDI. In the event f such terminatin, City shall pay RDI fr all csts and bligatins reasnably incurred by RDI in perfrming its services under this Agreement prir t the date f the terminatin ntice. Any payments made t RDI shall be in full satisfactin f City s bligatins hereunder and in n event shall any payment made by the City exceed $1,075,000. City shall nt be bligated t pay additinal finds fr any aspect r part f any f the Prgrams r such ther events and initiatives with respect t which RDI makes a cmmitment after the issuance f such ntice. D. Hliday Lighting Ceremny cntained in Exhibit A f the Agreement shall be amended and restated as shwn n Exhibit A heret. E. Exhibit A f the Agreement shall be amended t add Hliday Pht Activatins as shwn n Exhibit A heret. F. Except as specifically amended by this Amendment N. 1, the remaining prvisins f the Agreement shall remain in full frce and effect. EXECUTED the day f 2016, at Beverly Hills, Califrnia. B vtdc

7 CITY Of BEVERLY HILLS A Municipal Crpratin ATTEST: BYRON POPE City Clerk (SEAL) JOHN A. MIRISCH Mayr f the City f Beverly Hills, Califrnia RODEOD VE,NC. MARK President ONSTEfN NICOLA CAGLIATA Vice President APPROVED AS TO FORM: APPROVED AS TO CONTENT: LAURENCE S. City Attrney IENER MAHDRl L HEUREUX DRESS EL Interim Risk Manager B i \ v1.dc

8 Live EXHIBIT A SCOPE Of WORK HOLIDAY LIGHTING CEREMONY - $230,000 The hliday lighting ceremny shall be held n Sunday, Nvember 20, RDI shall use its best effrts t develp a prcess t btain data and metrics fr the event and prvide infrmatin regarding the return-n investment t City. Such metrics shall include, but are nt limited t, measuring and analyzing year-ver-year visitr traffic, receiving and analyzing partner feedback; measuring and analyzing marketing effrts. RDI may reallcate funds as needed between the Hliday and Hliday Lighting Ceremny budgets prvided deliverables fr bth prgrams are satisfied. Dcr As it pertains t the Lighting Ceremny, RDI shall make reasnable effrts t request that its retailers adjust pening and clsing hurs t align with special event times, thereby encuraging mre shppers and retail purchases. This shall be accmplished by transmitting such request in writing t such merchants. RDI shall prvide cpies f the written requests fr adjustment f hurs upn request f City. RDI shall undertake the fllwing activities: Wrk with the City staff n street clsure and city services needed fr the event. Create a high prfile event t garner media attentin fr the hliday seasn. Review entertainment ptins f live perfrmances and include a live firewrks finale. Wrk with Rde Drive retailers t develp lighting ceremny prgram they envisin. Pursue additinal incme and in-kind streams t ffset csts and expand prgram. Include Ceremny n Rde Drive website. Wrk with City and CVB t further prmte event and prvide infrmatin t visitrs and residents interested in attending. Create prmtinal campaign that may include lcal advertising, cllateral, publicity and nline elements that can be used by retailers t prmte custmer attendance. $70,000 Budget Estimate Street Clsure/City Penriits/Barricades $35,000 Staging/Lighting/Sund/Pwer $45,000 Entertainment Perfrmances Firewrks Shw Finale 3 minute rftp shw and C02 stage cannns $30,000 Marketing/Advertising $15,000 Prductin Fee $35,000 Estimated Ttal $230,000 B \ v1.dc

9 HOLIDAY PHOTO ACTIVATIONS - $45,000 Create whimsical hliday therned installatins at tw key pints alng Rde Drive t serve as scially shareable pht activatins during the 2016 hliday shpping seasn. The installatins will be an nging attractin t shppers, residents and turists, increasing ft traffic in the area and drawing peple t Rde Drive fim surrunding areas and shpping destinatins. The first pht activatin will be installed at the bttm f 2 Rde at the crner f Rde Drive and Daytn Way. The secnd pht activatin will be installed n the sidewalk f the 300 blck f Rde Drive adjacent t Mncler and Battaglia. RDI shall btain special event permits fr the pht installatins. RDI shall undertake the fllwing activities: Cnstruct and install tw hliday pht activatins n Rde Drive n r befre Nvember 20, fr the hliday lighting ceremny and maintain the installatins fr the six-week hliday shpping seasn. Remve pht activatins at end f seasn. Prvide security 24 hurs per day, 7 days per week fr a ttal f six weeks during shpping seasn. Prvide a brand ambassadr t answer questins abut installatins fr 4 hurs per day, 5 days per week fr a ttal f six weeks during shpping seasn. Wrk in partnership with the City and Beverly Hills Cnference and Visitrs Bureau (BHCVB) t leverage apprpriate scial media influencers and key press fr a special hliday preview t kick ff excitement n channels where shppers are engaged. riti 4çim ate Pht Activatin 1 $28,000 Pht Activatin 2 $1 1,500 Security (24/7 fr 6 weeks) $25,200 Brand Ambassadr (4 hrs/day, 5 days/week fr 6 weeks) $3,600 Activatin Maintenance $2,550 Prductin Fee $14,150 Estimated Ttal $85,000 ($45,000) BHCVB funding Cntributin ($20,000) Rde Drive Cmmittee funding Cntributin ($20, 000) B I\ v1.dc