To: Honorable Mayor and Members of City Council
From: Vin Smith, Community Development Director
Prepared By: Jennifer Owen, Economic Development Program Coordinator
TITLE:
Title
Consulting Services Agreements for Marketing, Advertising, Public Relations, Event Planning & Related Services for Tourism Promotion - Napa Tourism Improvement District
LABEL
RECOMMENDED ACTION:
Recommendation
Authorize the Community Development Director to execute a Services Agreement with D. Augustine & Associates, Inc. for Marketing, Advertising, Public Relations, Event Planning & Related Services for Tourism Promotion for the term of July 1, 2024 to June 30, 2025 for an amount not-to-exceed of $716,458.
Body
DISCUSSION:
Background
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 May 15, 2024, the LGC voted to recommend Council approval of the FY 2024-2025 Budget and Work Plan.
Consistent with past years, the most significant expenditure in the LGC Budget and Work Plan is the “Advertising and Marketing” line item. This budgeted line item reflects the most critical part of the Work Plan - the contract(s) for Marketing, Advertising, Public Relations, Event Planning & Related Services that must be performed to meet the Napa Valley Tourism Improvement District assessment’s purpose and intent.
Contract Renewal
At their May 28, 2024 meeting, the LGC heard a presentation from D. Augustine & Associates, Inc. and unanimously recommended that the City enter into a marketing services agreement with D. Augustine & Associates for the period of July 1, 2024 - June 30, 2025 for an amount not to exceed of $716,458. The proposed agreement (Attachment 1) details the recommended Scope of Work and corresponding budget. The services within the Scope of Work include:
• Marketing Strategy, Planning & Management
• Public Relations Strategy, Planning & Management
• Social Media Strategy, Planning & Management
• Digital Strategy, Management & Optimization
• Search Engine Optimization (SEO)
• Campaign Strategy, Concepting, Campaign Development, Creative Production, Asset Development
• Blog Content Planning & Development
• In-Market Journalist, Media, and/ or Influencer Visits
• Website Management, Updates, Security, and Hosting
• Paid Media
• Email Marketing
In addition to this, as in previous agreements for these services, the optional services allow the City to be flexible and agile in the implementation of the marketing strategy, enabling the City to request ad hoc services at opportune times.
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 & Associates agreement. The proposed not-to-exceed amount of $716,458 is within the proposed FY 2024-2025 Budget and Work Plan as recommended by the Napa TID.
CEQA:
The Community 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:
ATCH 1 - Services Agreement with D. Augustine & Associates, Inc.
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.