<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto">Thanks Ed – – that is a good summary. I found this article (link enclosed) to be quite relevant. Temecula has had its own WID for four years and it has enabled them to take the region to a new level. I would hope that we could do the<div> same! </div><div><p style="margin: 0px; font-style: normal; font-variant-caps: normal; font-width: normal; font-size: 12px; line-height: normal; font-family: Helvetica; font-size-adjust: none; font-kerning: auto; font-variant-alternates: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-position: normal; font-variant-emoji: normal; font-feature-settings: normal; font-optical-sizing: auto; font-variation-settings: normal;"><br></p><p style="margin: 0px; font-style: normal; font-variant-caps: normal; font-width: normal; font-size: 12px; line-height: normal; font-family: Helvetica; font-size-adjust: none; font-kerning: auto; font-variant-alternates: normal; font-variant-ligatures: normal; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-position: normal; font-variant-emoji: normal; font-feature-settings: normal; font-optical-sizing: auto; font-variation-settings: normal;"><a href="https://finance.yahoo.com/news/temecula-valleys-wine-agricultural-heritage-130000978.html">https://finance.yahoo.com/news/temecula-valleys-wine-agricultural-heritage-130000978.html</a></p></div><div><br></div><div>Best, Jim.<br id="lineBreakAtBeginningOfSignature"><div dir="ltr">James K. Schultze<div>Proprietor/Winemaker<br><div>Windy Oaks Estate<br><div>(831)724-9563</div></div></div></div><div dir="ltr"><br><blockquote type="cite">On Nov 4, 2025, at 3:14 PM, ed@munsvineyard.com wrote:<br><br></blockquote></div><blockquote type="cite"><div dir="ltr"><meta http-equiv="Content-Type" content="text/html; charset=utf-8"><meta name="Generator" content="Microsoft Word 15 (filtered medium)"><!--[if gte mso 9]><xml>
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ul { margin-bottom: 0in; }</style><div class="WordSection1"><p class="MsoNormal"><span style="font-size:11.0pt">SCM WID “Cliff Notes” summary:<o:p></o:p></span></p><ol style="margin-top:0in" start="1" type="1"><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">The WID assessment replaces SCMWA annual dues to fund the regional marketing done by the SCMWA.<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">The assessment is 1% of a winery’s DTC sales within the WID boundary. DTC sales outside the WID area as well as wholesale sales are not assessed. Since the WID funding formula differs from the prior SCMWA funding formula, the annual cost will also differ from what SCMWA members paid in the past.<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">All wineries within the WID boundary are required to pay the WID assessment, whether or not they were formerly SCMWA members.<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">The SCMWA manages the programs that the WID assessment funds. WID wineries approve the programs, like the past when SCMWA members approved SCMWA programs.<o:p></o:p></span></li></ol><p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p><p class="MsoNormal"><span style="font-size:11.0pt">Regards,<o:p></o:p></span></p><p class="MsoNormal"><span style="font-size:11.0pt">Ed Muns<o:p></o:p></span></p><p class="MsoNormal"><span style="font-size:11.0pt">Muns Vineyard<o:p></o:p></span></p><p class="MsoNormal"><span style="font-size:11.0pt">(408)515-2663<o:p></o:p></span></p><p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p><div style="border:none;border-left:solid blue 1.5pt;padding:0in 0in 0in 4.0pt"><div><div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in"><p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> VASCM <vascm-bounces@lists.kkn.net> <b>On Behalf Of </b>Ryan Stirm<br><b>Sent:</b> Tuesday, 4 November, 2025 14:03<br><b>To:</b> Richard Alfaro <rfalfaro@aol.com><br><b>Cc:</b> vascm@lists.kkn.net<br><b>Subject:</b> Re: VASCM: Santa Cruz Mountains Wine Improvement District Approved and Becomes Effective in 2026<o:p></o:p></span></p></div></div><p class="MsoNormal"><o:p> </o:p></p><div><p class="MsoNormal">Hard to see how much "benefit" this will bring the average SCM winery... seems more like a tax on the producers added during an already challenging time in the wine business.<o:p></o:p></p></div><p class="MsoNormal"><o:p> </o:p></p><div><div><p class="MsoNormal">On Tue, Nov 4, 2025 at 1:22<span style="font-family:"Arial",sans-serif"> </span>PM Richard Alfaro via VASCM <<a href="mailto:vascm@lists.kkn.net">vascm@lists.kkn.net</a>> wrote:<o:p></o:p></p></div><blockquote style="border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in"><div><p class="MsoNormal">Out of state DTC are not part of the WID<o:p></o:p></p><div><p class="MsoNormal">Sent from my iPhone<o:p></o:p></p></div><div><p class="MsoNormal"><br><br><o:p></o:p></p><blockquote style="margin-top:5.0pt;margin-bottom:5.0pt"><p class="MsoNormal" style="margin-bottom:12.0pt">On Nov 4, 2025, at 1:09<span style="font-family:"Arial",sans-serif"> </span>PM, Mary Lindsay <<a href="mailto:mary@munsvineyard.com" target="_blank">mary@munsvineyard.com</a>> wrote:<o:p></o:p></p></blockquote></div><blockquote style="margin-top:5.0pt;margin-bottom:5.0pt"><div><p class="MsoNormal"><span style="font-family:"Tahoma",sans-serif"></span> <o:p></o:p></p><div><p class="MsoNormal" align="center" style="text-align:center"><span style="font-family:"Helvetica",sans-serif"><VASCM_logo_Final.jpg><o:p></o:p></span></p></div><p class="MsoNormal" align="center" style="margin-bottom:12.0pt;text-align:center"><o:p> </o:p></p><p class="MsoNormal"><span style="font-family:"Helvetica",sans-serif"><br><br><b>About the New Santa Cruz Mountains Wine Improvement District</b></span> <o:p></o:p></p><p><br><span style="font-family:"Helvetica",sans-serif">On Oct. 21 the Santa Cruz County Board of Supervisors voted to approve the Santa Cruz Mountains Wine Improvement District (SCMWID), the final step in making the WID a reality. More on what this means and details below. The SCMWA has been working on the WID for the past year, securing a weighted almost 80% of local winery support through petitions. All of the jurisdictions included in the WID boundary where wineries are located voted to approve: Counties of Santa Clara, Santa Cruz, San Mateo; Cities of Santa Cruz, Watsonville, Capitola, Scotts Valley, Saratoga; Towns of Portola, Los Gatos, Woodside. </span><br><br><b><span style="font-family:"Helvetica",sans-serif">What does this mean for our wineries and growers?</span></b><o:p></o:p></p><ul type="disc"><li style="mso-list:l1 level1 lfo1"><b><span style="font-family:"Helvetica",sans-serif">Wineries within the WID boundaries</span></b><span style="font-family:"Helvetica",sans-serif"> will now contribute to regional marketing and promotion efforts through an assessment on DTC sales rather than SCMWA membership dues. </span><o:p></o:p></li><li style="mso-list:l1 level1 lfo1"><b><span style="font-family:"Helvetica",sans-serif">Wineries outside the WID boundaries</span></b><span style="font-family:"Helvetica",sans-serif"> will continue as members of the Santa Cruz Mountains Winegrowers Association as they always have, with no changes to their participation or benefits.</span><o:p></o:p></li><li style="mso-list:l1 level1 lfo1"><b><span style="font-family:"Helvetica",sans-serif">Growers that do not make wine are not impacted.</span></b><o:p></o:p></li></ul><p><br><span style="font-family:"Helvetica",sans-serif">The District boundary roughly (but not exactly) follows the AVA boundary, and all wineries within the WID boundary will be part of the WID and required to pay a 1% assessment on all DTC wine sales (more about this below). If this affects you you will receive notification about this requirement, schedule and payments, to start in 2026. </span><br><br><span style="font-family:"Helvetica",sans-serif">All wineries—both inside and outside the district—remain valued members of our broader Santa Cruz Mountains wine community. Everyone will continue to have opportunities to engage in SCMWA’s marketing programs, events, and promotional efforts that elevate awareness of our region’s unique character.</span><o:p></o:p></p><p class="MsoNormal"><o:p> </o:p></p><p><b><span style="font-family:"Helvetica",sans-serif">More about the Wine Improvement District:</span></b><o:p></o:p></p><div><p><span style="font-family:"Helvetica",sans-serif">The Wine Improvement District will provide a consistent, reliable, and larger pool of funds dedicated solely to growing the visibility, reputation, and sales of wines from our region. While the Association (SCMWA) does important work, it is voluntary and funded by annual dues, which means budgets fluctuate based on membership participation and economic conditions. This limits both the scale and continuity of marketing efforts. The WID will ensure that all wineries that benefit from the region’s wine identity contribute proportionally. This creates both equity (everyone shares the cost) and critical mass (larger, stable funding) to support marketing efforts promoting our wine region. </span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">The WID will not replace the SCMWA but will operate alongside it, with the same Board of Directors. Funding is accrued with a 1% assessment on all DTC wine sales, which wineries can pay themselves or pass through to consumers. Wineries will no longer pay dues to the Association (SCMWA). This does not effect the VASCM, which will continue with our nominal $50 annual dues. </span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">Assessments paid through the WID are expected to exceed $400,000 this first year, starting in 2026. These funds will be used for marketing the Santa Cruz Mountains wine region, its wineries, wines and vineyards to promote tourism and sales. </span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">The County of Santa Cruz will administer the WID and collection of assessments. </span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">Wine Improvement Districts are legal entities allowed by the State of California, and several wine regions have implemented them, including Temecula, Amador, Santa Barbara and Livermore, raising large funds to market their regions. With the current economic challenges facing the wine industry (including our local wineries) and in order to remain competitive in a changing market, the SCMWA Board decided to pursue the formation of a WID as an alternative fund-raising source to its dues-based membership. </span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">Through consistent funding the WID ensures continuity, fairness, and stability - preventing outcomes such as the recent dissolution of the Monterey County Vintners and Growers Assn. The SCMWID is an investment in the continued strength of the Santa Cruz Mountains AVA. </span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">If you think you are part of the new district (selling wine DTC) and have questions, please reach out to me and I will see how I can assist. A detailed presentation is available upon request. </span><o:p></o:p></p><p><o:p> </o:p></p><p><span style="font-family:"Helvetica",sans-serif">Thank you,</span><o:p></o:p></p><p><span style="font-family:"Helvetica",sans-serif">- Mary Lindsay</span><o:p></o:p></p><p><o:p> </o:p></p></div><p class="MsoNormal"><br>_______________________________________________<br>VASCM mailing list (<a href="https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.kkn.net%2Fmailman%2Flistinfo%2Fvascm&data=05%7C02%7C%7C25eda88b3345408191d208de1bee8f48%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638978908605340918%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=S%2BPKoz%2BVlrUj8JG4xlJRn0i3OJ4UYjKBh8Cbbagb3eM%3D&reserved=0" target="_blank">http://www.kkn.net/mailman/listinfo/vascm</a>)<br>Post to: <a href="mailto:vascm@lists.kkn.net" target="_blank">vascm@lists.kkn.net</a><br>To make sure your messages get posted:<br>- Use the email address with which you are subscribed.<br>- Do not exceed the size limit for messages of 1MB. 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Reduce photo sizes.</span><br><span></span><br><span>Manage your subscription at: http://www.kkn.net/mailman/options/vascm</span><br><span>Archives at: http://www.kkn.net/mailman/private/vascm/</span></div></blockquote></div></body></html>