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Council approves three destination-marketing contracts; members debate term length and AI implications

3796617 ยท June 10, 2025
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Summary

Solvang approved three separate marketing contracts (items 6d, 6e and 6f) after discussion about contract length and possible future AI-driven changes; council approved each contract by roll call 5-0 and staff confirmed termination and amendment language allowing 30 days' notice and yearly reporting.

The Solvang City Council voted 5-0 to approve three separate destination-marketing contracts (consent agenda items 6d, 6e and 6f) after councilmembers pulled them from consent for discussion about contract terms.

Councilmember Infante raised questions about whether the city should commit to three-year contract terms or retain year-to-year renewals in light of rapidly developing AI tools and marketing technology. Staff and the contract vendors said a three-year term was recommended to preserve momentum, continuity and institutional knowledge. "When you're marketing a destination, our synergy ... we've been together now a year. We have really good momentum," a marketing staff member said.

Staff pointed to the termination clause in the contract documents: "Notwithstanding any other provision of this agreement, any party hereto may terminate this agreement at any time without cause by giving at least 30 days prior written notice to the other parties of this agreement." That provision means the city can cancel with 30 days' written notice if circumstances change, staff said, and individual contract terms can be amended by mutual agreement.

Council requested continued transparency and annual or quarterly reporting to the council. Staff said contractors will continue to provide quarterly reports and a dashboard, and staff will ensure annual summaries are provided in the city packet.

Each of the three contract approvals was moved and approved separately; roll-call tallies were 5-0 for items 6d, 6e and 6f.