2020 June - Board of Directors Meeting Minutes 📝

MEETING NOTES 

IN ATTENDANCE:  Stephen Janes, Katy Rogers, Laura Booras, Wayne Kelterer, Tyler Thomas, Riley Slack, Callie Gleason, Tim Snider

Item 1: Call to Order

o   Meeting called to order (1:07pm)

Item 2: Santa Barbara Wine Preserve Discussion

o   Civitas analyzed the Wine Preserve support survey and estimated 60% approval through weighting; use Silicon Valley Bank’s metric of TR sales = 37%, plus yes/no votes or assumptions for all tasting rooms. If tasting rooms did not respond to the survey or a Board Member individually, they were an assumed NO vote.

o   If we used a hybrid model of excluding the tasting rooms with under $200,000 of revenue, there is 65% approval

o   Concern of conflict Wine Preserve will cause internally to the organization

o   Hybrid Assessment was again discussed to try to craft a solution that works for the greatest majority of vintners. Possible structure: Pay dues if you want to be in SBV and revenue is under $200,000. If above $200,000 revenue, automatically assessed in the Wine Preserve

o   Members of Board concerned by confusion the consumer could experience if some have assessment and others don’t; also, by larger wineries continuing to shoulder the bulk of association funding

o   Alison spoke with Kathy Janega-Dykes about her experience with their Visit Santa Barbara BID

o   KJD was surprised to learn that some Vintners that aren’t on board with Wine Preserve concept itself, not just the structure

o   Concerned how Board of Supervisors will respond to a divided industry over Wine Preserve

o   Civitas feels if we move forward, we will pick up more support; all new BID efforts come with opposition

o   Alternative is Plan C: Raise dues significantly, create fewer tiers of membership, automatically limiting the association to fewer members due to financial limitations

o   Stephen Janes: Must consider the benefit of the Wine Preserve after five years of over $1.2 million budget; we need to lay this out more clearly. Everyone wants the benefits, we must show them what they are;

§  Website has to be changed now that structure has changed

o   All wineries, small, medium and large will benefit from marketing and advocacy generated with Wine Preserve

o   This is in the best interest of the Santa Barbara wine community and the only way they will achieve this level of funding

o   Cities have the ability to opt out of the Wine Preserve – Lompoc has a new tax and has already expressed interest in this

o   Stephen Janes makes motion to go forward with the Wine Preserve in current structure. Tim Snider seconds motion.

§  Current Structure: The Wine Preserve at 1.5% of only On-Site Direct-to-Consumer (DTC) Sales classified as Tasting Room Sales: Including all items (wine, tasting fees, merchandise, food) sold to a customer in a tasting room or on-site event (not tickets).

§  Resulting budget: Approximately $1,000,000 - $1,200,000

§  Wine Preserve does not include:

·      All wine club shipments and pickups

·      All event tickets or other private event sales

·      All purchases made by phone or internet

·      Any wine sold through wholesale channels

o   Vote:

§  Stephen Janes: Yes

§  Katy Rogers: Yes

§  Laura Booras: Yes

§  Wayne Kelterer: Yes

§  Tyler Thomas: Yes

§  Riley Slack: Yes

§  Callie Gleason: Yes (via e-mail)

§  Tim Snider: Yes

§  Nicholas Miller (proxy vote): Yes

§  Karen Steinwachs: Yes (via e-mail)

§  Absent from vote: Jessica Gasca

o   Motion passes

o   Board will establish an ad hoc group to meet with wineries that are against Wine Preserve

Item 3: Meeting Adjourned

o   Meeting adjourned at 2:20pm