The council voted unanimously on the action late Monday night.
The previous logo, which displayed the Fox Theatre, mountains and grapes, will now have the title of "Legacy Logo."
It will only be used in situations where its detail can be clearly shown.
Otherwise, the new, more modern-looking logo will be used.
The city is also reopening the logo design process to include local graphic artists.
Submissions will be accepted and reviewed by a panel of professionals before the community will be invited to vote.
The city council will make the final decision.