To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources & Development Director
Prepared By: Jennifer Owen, Economic Development Division Program Coordinator
TITLE:
Title
Contract Amendment: Additional Marketing Services from the Augustine Agency for the City of Napa Tourism Improvement District (TID)
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and authorize the City Manager to execute Amendment No. 1 to Agreement No. C2025-897 with D. Augustine & Associates, Inc to increase the contract by $56,850 for one additional month of marketing services and offboarding activities for a total contract amount not to exceed $290,043.
Body
DISCUSSION:
The Napa Tourism Improvement District fund is managed by the City, with oversight by the Napa Tourism Improvement District Local Governing Committee (“LGC”), as defined by the Napa Valley Management District Plan (“MDP”). At a meeting held on June 17, 2025, City Council approved the FY 2025-2026 Budget and Work Plan for the Napa TID, including a Service Agreement with D. Augustine & Associates, Inc. in the amount of $233,193 for Marketing, Advertising, Public Relations, Event Planning & Related Services for Tourism Promotion designed to carry their services from July 1 to December 31, 2025. The Augustine Agency has been executing that contract as agreed to and providing monthly reports to the LGC.
At two subsequent committee meetings (October 14 and November 18, 2025), the LGC
voted to extend the existing contract for destination marketing services by one month to accomplish two things: (1) support the transition to a new creative agency ($26,850) and (2) provide additional marketing and promotion for the 2026 Napa Lighted Art Festival ($30,000). This contract extension and corresponding amendment reflect the necessary efforts for a continuation of existing destination marketing services while the new agency is onboarded, while providing additional promotional support for the Lighted Art Festival.
The cumulative total compensation payable to The Augustine Agency will not exceed $290,043 (based on $233,193 for the original Agreement, $30,000 for the Lighted Art Festival promotion, and $26,850 to support the agency transition).
FINANCIAL IMPACTS:
There is no financial impact on the City’s General Fund. The Napa Tourism Improvement District was formed by Napa County through a two percent assessment of gross room rentals received from lodging businesses throughout the county. Napa TID funds are to be expended for tourism promotion in accordance with the approved Management District Plan. The City retains 25 percent of the assessment revenue collected within the City limits, to be used for promotion purposes as set forth in an annual work plan and budget prepared by the Napa TID and approved by City Council.
The City also retains one percent of the assessment revenue as an administrative fee. No activities implemented as a part of the Napa TID budget are supported by the General Fund. The marketing allocation is the revenue source for funding The Augustine Agency agreement and amendment. The proposed not-to-exceed amount of $290,043 is within the proposed FY 2025-2026 Budget and Work Plan as recommended by the Napa TID.
CEQA:
The Community Resources & Development Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060.
DOCUMENTS ATTACHED:
None.
NOTIFICATION:
The Napa Tourism Improvement District Local Governing Committee and the staff of D. Augustine & Associates, Inc. have been notified of this agenda item and an agenda has been posted in publicly accessible locations as required by law.