Adoption of Agenda

LIZ BERGER MOVED THAT THE COUNCIL ADOPT THE AGENDA AS DISTRIBUTED. AMANDA DANIELSON SECONDED. MOTION CARRIED UNANIMOUSLY.

Minutes of the May 10, 2007 Meeting

THE CHAIR ASKED FOR ANY REVISIONS TO THE MINUTES OF THE MAY 10, 2007 MEETING. STEVE ARBAUGH MOVED THAT THE COUNCIL APPROVE THE MINUTES. LIZ BERGER SECONDED. MOTION CARRIED UNANIMOUSLY.

STAFF REPORTS

National Governors' Conference - Linda Jones
Linda reported that Council staff helped coordinate winery-related events throughout the conference, including wine tastings at Chateau Chantal and Brys Estate. She commented that Governor Granholm visited both wineries and showed pride in the industry, personally thanking each winery that participated.

Michigan Wine Country magazine - Karel Bush
Karel briefly described plans for the 2008 magazine, including a redesign of the maps. Suggestions were received from Council members that will be taken into consideration for the planning of the magazine.

Michigan Wine & Spirits Competition - David Creighton
David reported that there were a record number wineries entering the competition (36), as well as a record number of wines entered (365). Six wines were honored with Best of Class awards. No fruit wine received a gold medal, so no award was given for Best of Class Fruit Wine. David noted that the gold medals were equally distributed between the three major growing regions. A letter was received from Walter and Eileen Brys, from Brys Estate Vineyards outlining some concerns with the competition procedures (Attachment A). David will forward the letter to the Competition Advisory Board along with any additional comments from Council members regarding the letter's content.

Eligibility Review Task Force - David Creighton
The committee will meet immediately following the Council meeting.

Michigan Wines Web Site Upgrade - Karel Bush
Karel reported that the $25,000 budgeted for web redesign in FY07 has been spent, and that a quote will be requested to complete the job. It is expected that the quote will be approximately $25,000. Several Council members expressed the opinion that the web site is a primary means of promotion for the Council and that they will support completion of the redesign.

Upcoming Events - David Creighton
Recent events the Council staff attended include the Wine and Food Festival at Meadow Brook, and Vin Voyage at Detroit Metro Airport. Detroit Uncorked will take place Sept. 28 at Ford Field and will have a Michigan Pavilion, as in previous years. New MDA Director Don Koivisto will attend the Governor's Reception Aug. 29 at the Michigan State Fair, along with MDA Deputy Director Phyllis Mellon, and Agriculture Commissioner Jim Byrum.

Budget Update - Linda Jones
Linda provided a description of the Council's revenue vs. expenditures. Acting Director Mellon briefly explained the restrictions on expenditures that State agencies are experiencing under the Executive Directives implemented earlier this year.

RESEARCH AND EDUCATION ADVISORY COMMITTEE (REAC) REPORT - LINDA JONES

• Enology Extension position with Michigan State University
  Linda reviewed the history of the search for a suitable candidate for the position. The position description has been revised and the position will be reposted. Bob Jacobson asked how the search was conducted. Ron Perry responded that the job description was sent to institutions that train enologists throughout the United States and overseas. Ron commented that they have identified several problems with the current job description: salary is too low; it's only a two- to three-year position; it's an academic specialist position, not faculty; and eight other similar positions were advertised in the United States during the same timeframe. Liz Berger asked what the new job requirements will be. Linda responded that the search will be for an Agricultural Science graduate, but will not require winemaking experience. Bob summarized his recent experience in the search for a winemaker using a consulting company. He asked whether that would be an option for this position. Ron explained the university's reluctance to use consultants and outlined the extensive process the university must go through in hiring for this level position. Ron added that the next steps will be to revise the job description, begin the recruitment process, and find a means of sustaining the position beyond the two to three years currently offered.
• Research Grant Proposals
  Linda distributed a draft summary of the proposals submitted to the REAC for FY08 (Attachment B) and noted which proposals the REAC recommends to receive a total of up to $125,000 in grants. Some projects will be funded subject to continued discussion with researchers, and the total amount expended may end up being less than this amount. Linda announced that the full proposals are available for Council review at this meeting.

NEW BUSINESS

MSU College of Ag and Natural Resource representation on the Council
Ron Perry will continue to serve on the Research and Education Advisory Committee. Doug Buhler will serve as the MSU representative to the Council. Doug is the Associate Director of Michigan Agricultural Experiment Station and Associate Dean of Research in the College of Ag and Natural Resources.

Council member terms expiring fall 2007
Liz Berger's and Dave Miller's terms expire in September 2007, and neither is eligible for reappointment. Both serve as winery representatives to the Council. Linda reminded Council members that they are required to serve until their replacement is appointed by the Governor's office and encouraged all members to assist in recruitment of potential appointees.

USDA Report on Grape Acreage in Michigan
Linda distributed a handout that indicates that grape acreage has increased 250 acres since 2003. There will be a media release issued in September announcing the results.

Eligibility of Clay Avenue Cellars
There was brief discussion regarding the application received in April 2007 from Clay Avenue Cellars for access to promotional opportunities with the Council. The decision was tabled at the May 10, 2007 meeting of the Council, pending review of the existing eligibility requirements.

AMANDA DANIELSON MOVED THAT THE DECISION REGARDING CLAY AVENUE CELLARS' ELIGIBILITY BE TABLED UNTIL THE ELIGIBILITY REVIEW TASK FORCE HAS MET TO REVIEW THE ELIGIBILITY REQUIREMENTS. BOB JACOBSON SECONDED. MOTION CARRIED UNANIMOUSLY.

Fiscal 2008 Expenditures - MOTIONS

LIZ BERGER MOVED THAT COUNCIL STAFF RETAIN HOUR CUSTOM PUBLISHING FOR PRODUCTION AND DISTRIBUTION OF THE 2008 MICHIGAN WINE COUNTRY MAGAZINE. MELINDA REMER SECONDED. MOTION CARRIED UNANIMOUSLY.

LIZ BERGER MOVED THAT UP TO $25,000 BE BUDGETED FOR THE MICHIGAN WINES WEB SITE UPGRADE. STEVE ARBAUGH SECONDED. MOTION CARRIED UNANIMOUSLY.

MELINDA REMER MOVED THAT THE COUNCIL APPROVE THE RESEARCH PROPOSALS RECOMMENDED BY THE REAC IN THE AMOUNT OF $125,000. LIZ BERGER SECONDED. RON PERRY AND BOB JACOBSON ABSTAINED FROM THE VOTE. MOTION CARRIED UNANIMOUSLY.

Strategic Planning Report
Linda thanked all Council members who participated in the Strategic Planning session August 27. She commented that this was the first phase of the process and that she will follow up with all participants prior to the next Council meeting and Strategic Planning session (tentatively scheduled for Nov. 13, 2007).

PUBLIC COMMENT

Dianna Stampfler, from Promote Michigan, commented that she has been retained, along with Leelanau Communications, to provide marketing counsel for the Leelanau Peninsula Vintners Association. She also works with independent wineries for promotional purposes. Dianna provided brief information about several upcoming events where Michigan wines will be represented: "Eat Local Challenge" - throughout September; Epicurian Classic - Traverse City, Sept. 13-15; and a Food and Wine Show in Grand Rapids in November 2008. She also noted that there are Michigan Tourism Task Force public hearings throughout the state through September and that agricultural tourism is a priority. Amanda Danielson inquired about a recent request by a freelance wine writer for Travel & Leisure magazine for samples of Michigan wines. Dianna responded that she has been in contact with the writer and has coordinated the shipment of a selection of Michigan wines.

OTHER BUSINESS

• Donald Koivisto is the new MDA Director and will begin September 3. Acting Director Mellon briefly commented on the Director's background.
• Proposed meeting date: November 13, 2007, in conjunction with the next Strategic Planning session - location to be determined.
• Melinda Remer commented that Travel Michigan has new TV and radio ads that will air in the fall with the theme "Harvest Time," and will highlight Michigan food and wine.

ADJOURNMENT

MOTION: STEVE ARBAUGH MOVED THAT THE MEETING BE ADJOURNED. BOB JACOBSON SECONDED. MOTION CARRIED UNANIMOUSLY.

The following documents are on file in the Michigan Grape and Wine Industry Council office and can be obtained upon request:

A. Letter from Walter and Eileen Brys to the Michigan Grape and
    Wine Industry Council

B. Draft Summary of Research Grant Proposals