Huntington Beach council split over $720K rebranding contract

The Huntington Beach City Council divided this week over whether elected members may bypass competitive bidding to handpick a contractor, a dispute centered on a proposed $720,000 rebranding deal that drew public complaints before it was finalized, according to Voice of OC.

The standoff tests the limits of municipal procurement rules in one of Orange County's largest coastal cities and raises conflict-of-interest questions that have shadowed Mayor Casey McKeon's administration.

At issue is a proposed contract with Wolffhaus, a firm owned by Tyler Wolff, who Voice of OC said first approached the city about filming permits before Mayor Casey McKeon's administration engaged him for a $30,000 branding audit. The city then proposed awarding Wolff a $720,000 follow-on contract to implement the audit's findings — before he had secured a business license, the outlet reported. Voice of OC also noted that Wolff is engaged to an individual appointed by McKeon, a connection that fueled public concern about the selection process.

The proposed agreement contained a clause that would have guaranteed Wolff $345,000 if the city canceled the contract or failed to provide him with necessary resources. Councilman Chad Williams challenged the arrangement directly. "After month one, he's receiving a windfall of $345,000 for work that he ultimately does not produce. I absolutely think there's something nefarious going on with this," Williams said, according to Voice of OC. He also questioned whether the prior audit work skewed the competitive field: "He got paid $30,000 to put together his audit that's now being used for the bid. How is that fair to other bidders?"

McKeon defended the council's prerogative at Tuesday's meeting. "The council can enter into contracts, the council can bring forward contracts, they can reach out to private firms to bring forward contracts. Those contracts will then come before council in a public setting and be voted on," the mayor said. He also pointed to a strategic deadline: "If we can implement that and capture that America 250 season … that'll launch our city to the next level," McKeon said, referring to national Fourth of July celebrations.

Councilman Andrew Gruel said the optics had become untenable. "This process is sloppy. It's led to a rumor mill that something nefarious was done. If we have a fuzzy lane we're traveling down we should probably not continue," Gruel said, according to Voice of OC. Councilwoman Gracey Van Der Mark, who voted against a subcommittee proposal to resolve the dispute, took a more measured position: "I don't believe there's anything nefarious going on. I'm not comfortable with any of this. I think it's too broad, too rushed, too messy, too many mistakes," she said.

Following the public backlash, the city opened competitive bidding to more than 50 contractors and appointed a closed-door three-member subcommittee — comprising council members Burns, Twining and Kennedy — to evaluate submissions and recommend a finalist for a full council vote, with staff free to present dissenting opinions separately. The city's target is a signed contract by May 5, which would leave a contractor two months to execute changes before the Fourth of July.

The outcome could set a precedent for how Huntington Beach — and other Orange County municipalities — interpret the boundary between council authority and competitive procurement law.