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Sedona council approves $60,000 contract amendment for summer marketing campaign
Summary
The Sedona City Council unanimously approved amending a professional services contract to add up to $60,000 for destination marketing after staff and business leaders said visitation and local sales were softening this summer.
The Sedona City Council unanimously approved an amendment to a professional services agreement to add up to $60,000 for summer destination marketing, council members said at a regularly scheduled meeting where staff and business owners described softer visitation and lower hotel revenues.
Lauren, a city tourism staff member, told the council the additional funds would expand digital and connected-TV advertising and pay for a banner placement in Phoenix Sky Harbor International Airport’s Terminal 4. "I'm here to ask for an extra $50,000 for the summer for the current summer destination marketing campaign advertising," she said, and later described a proposed total amendment of $60,000 to the contractor's agreement.
The action matters to local businesses because city staff said several economic indicators showed a summer slowdown. Lauren reported that May sales tax receipts were up 1% while bed-tax receipts fell about 10% and that combined hotel and short-term rental rooms booked were down 4.3% in June compared with the prior year. She also said traffic-count data showed about 25,000 fewer cars in June than the previous year.
City staff described how the additional funds would be used: roughly $35,000 toward expanded advertising in nearby drive markets (including Las Vegas, Los Angeles and San Diego), up to $5,000 for account management, $5,000 for creative production, $20,000 for attribution-based digital and CTV ads, $3,000 for Meta (Facebook/Instagram) ads, and a proposed $15,000 digital banner in Phoenix Sky Harbor International Airport Terminal 4 above the escalator into baggage claim. Staff said current advertising spend this year totals about $163,582 compared with $105,000 last year.
Members of the business community and the Sedona Chamber of Commerce urged approval. Mary Lees, a Sedona resident who operates a Jeep rental business, said she supports the airport banner: "The banner at the airport is an outstanding idea," she said, and asked the council to consider messaging that reaches a broad array of local businesses, including motorized-recreation operators. David Kee, president and CEO of the Sedona Chamber of Commerce, said many businesses are "anxiously looking at their books" and urged quick action to support local commerce.
Council members expressed support for the request and praised staff for moving quickly. A motion to approve "amendment number 3 to the professional services agreement with Dave Vangley and Associates, DBA, to amend the scope and increase compensation in an amount not to exceed $60,000 for marketing services, for a new total contract value not to exceed $1,007,000" was moved and seconded; the council voted unanimously in favor.
The city manager's office communicated that the original contract had been amended previously, which is why the additional amendment required council action rather than administrative approval. Staff also said the Sedona marketing team will reallocate existing ad spend away from market-specific campaigns that are underperforming (Seattle, Chicago and Denver) toward stronger-performing drive and flight markets and will continue sustainability and heat-safety messaging in the in-market 25-mile radius and Phoenix-targeted materials.
Public commenters included local business owners and representatives of the chamber and the Tourism Advisory Board (TAB). TAB member Bob Pifke said the board had discussed contingency planning and was aware the council maintained funding that could be made available if needed. Two resident business owners who spoke during public comment urged the city to ensure marketing highlights sustainable and stewardship-minded messaging and to consider accessibility options such as shuttles for visitors arriving in Phoenix without cars.
The amendment will allow staff to place additional ads immediately, with the goal of driving short-term visitation in the next few weeks while also supporting longer-term brand awareness. Staff said they will continue to monitor booking pace and other indicators and report back on return on ad spend and campaign performance.
The meeting concluded after a brief administrative item; council members asked staff to solicit additional TAB input following the immediate action.
