Spring/Summer 2003

General Winery News:
Native Wetlands: What they are, why they're
By Sarah Black
A wetland is a seasonal depression or swale on the earth's surface, which consists of a natural cover of wetland plant species. These areas are important to us because they create habitat for wildlife. Here at Joseph Phelps Vineyards we are currently monitoring and maintaining a constructed wetland, established in 2001, at our Suscol Ranch. We will be working with the Army Corps of Engineers, Wetlands Research Associates and our vineyard crews for the next four years to ensure the establishment of the 3-acre wetland project.
The proper balance of seasonal hydrology is very important in our monitoring observations. Our wetland is not inundated with water all year long, only during the rainy season (October 15th through April 15th). Vegetation establishment is key in maintaining this moisture balance of the soil. Wetland species such as Meadow Barley (Hordeum spp.), Toad rush (Juncus spp.) and Goldfields (Lasthenia spp.) will grow together to form the native cover necessary for this balance to occur.
In the process of building the wetland we are also restoring the native plant habitat along the Arroyo Creek that borders our property. In order for these plants to be successful in and around the wetland, care must be provided. Weeding, watering, transplanting, monitoring and installation of temporary fencing are all part of the maintenance program. Close monitoring for non-native and exotic invasive species is required and actions are taken to ensure that invasive species do not become established.
On April 3rd a group of JPV volunteers met at the Suscol Ranch Wetlands site for what we hope will be the first in a series of "Planting Days." Many people volunteered their services, but special thanks goes to Javier Nino de Riviera, our vineyard supervisor at the Suscol site. Javier brought the toilet and was on Star thistle patrol even though he had been up since midnight the night before protecting the vines from frost. He and his crew are indispensable in helping us maintain and manage the work that needs to be done to the wetlands.
The new wet-land complements an already existing wetland, located on the southern portion of the property, that we use as a reference. Many animals have already discovered this restored habitat. Waterfowl, amphibious species, and a lynx have been seen using the wetland in just the first year of establishment. These natural systems are encouraged because they help enhance our vineyards' success due to the biodiversity created.
Wine Industry Profile:
Napa County's New CEO Seems Ideally
By Kathie Fowler
Bill Chiat has come a long way from wearing the uniform of a Minnesota Park Ranger in the mid 80's to being appointed Napa County's new Chief Executive Officer on March 3rd of this year. Answerable only to the Board of Supervisors, Chiat is responsible for the overall management and direction of county government, including its 17 departments, 1400 employees and an annual budget of $200 million. The scope of this job would be daunting enough in a county without Napa's thorny land use problems, but here Mr. Chiat is faced with many strong and competing opinions on the subjects of watershed protection, stream and river setbacks, hillside plantings, erosion control and river restoration -- to name just a few of the issues currently being addressed by both environmentalists and the wine industry.
He is aware of the discord between the two factions, and it is surely no accident that his professional background includes extensive experience mediating between rival interest groups. Having most recently served as Deputy County Administrator for Santa Barbara County, he is familiar with land use controversy. One of the most publicized disputes was sparked by a grapegrower clearcutting hundreds of acres of oak trees along Hwy. 101.
"Private property owners, grapegrowers and environmentalists were demanding to be heard," Chiat recalls. "And it was my job to facilitate a dialogue among all of them. It went on for a year and a half, and it was fascinating to observe that when people were able to step away from their entrenched positions and simply talk about their interests, other options and possible solutions would appear."
To Napa residents, however, the outcome of these negotiations sounds all too familiar. (See Tom Shelton's article describing the Timber Harvest Initiative scheduled for the March 2004 ballot in Napa County.) "We got very close to a consensus," Chiat reports. "But fringe elements put opposing initiatives on the ballot, both of which failed. So we had to go back to the Board of Supervisors, who facilitated a public process that four members of the Board ultimately voted for. Was everyone happy? No. Did we reach a consensus? No. But in actuality, the solution was not that far removed from the one we had originally proposed."
Chiat seems completely at home facilitating such complex negotiations. "Having formal authority over people is not what's important to me," he explains. "My goal is to get people to want to listen to each other and become willing to work together. Ordering people to change is not nearly as effective as getting them to want it on their own. And if you can create a non-antagonistic atmosphere to discuss these things, often you discover that opposing viewpoints are really not so far apart. The hillside vineyard owner doesn't want his land impacted by erosion any more than the environmentalist does. It's my job to determine if it's possible to accommodate both interests. If it's not, then we go to our elected officials and let them make the call."
At a recent stream setback hearing, which was attended by private landowners, contractors, realtors, environmentalists and grapegrowers, all with strong opinions about how many
feet from a riverbank or stream-bed a new vineyard should be planted, a home constructed, or an old vineyard replanted, Chiat was impressed. "Everyone was dignified and respectful in stating their opinions. People had interrupted their day and contributed their time and resources to sitting through a two to three hour hearing. Would we rather live in a place where no one cared?"
The question is a good one, and gives rise to asking Chiat where he personally stands on the subject of land use and the environment.
"Given my background as a field biologist, park ranger, and environmental education instructor, it would be logical to assume I was more pro-environmental. But my personal feelings are totally irrelevant here. My job is to bring people together, define the problems, and find solutions. The Napa County Board of Supervisors determines policy. My job is to provide them with the best data and recommendations that I can. What I personally bring to this job is life experience that will hopefully be relevant to the particular problems facing Napa."
And why did he come to Napa?
"That's easy. On all of planet earth, Santa Barbara, Napa and possibly Sonoma are my three favorite places. When I was offered the job of Napa County Executive Officer, the biggest challenge was not whether to move, but how to transport my 450-bottle wine cellar! My partner and I ended up renting a U-Haul and doing it ourselves -- and we didn't break a single bottle."
Although Chiat's initial academic schooling was in the sciences (he holds a B.S. in Field Biology from the University of Minnesota and an M.S. in Natural Resources from the University of Michigan), he also holds a Masters in Business Communications from the University of St. Thomas (1988), completed the intensive Senior Executive Program in State & Local Government at Harvard (1999) and graduated from The Art & Practice of Leadership Development from the John F. Kennedy School of Govt. at Harvard (2002). He is clearly impassioned on the subject of government and how to govern.
"There are tremendous pressures being placed on Napa's resources as more people move here. It's requiring all of us -- politicians, grapegrowers, environmentalists, property owners -- to look at issues we didn't even know existed.
"I don't have any answers personally, but together we can figure it out and find the answers. There's no textbook that tells us how. We just have to muddle through. And it's no accident that our system of democracy was designed this way. The process of change may be slow and convoluted, but it's what makes democracy successful. The whole system works by accommodation. On a day-to-day basis this can be difficult and frustrating and we may not like it. But over 200 years we probably like it a lot.
"I believe in the democratic system, and I believe that working within this system, I can make a difference. One of my favorite quotes is an inscription on Thomas Jefferson's Memorial: 'We might as well require a man to wear still the coat which fitted him when a boy as civilized society to remain ever under the regimen of their barbarous ancestors.'
"Change is inevitable, and hopefully I can bring a breath of fresh air to the table as the county deals with the issues before it. But the only way I will be successful in this community is if we can work together. I can't do it alone."
At the time of this writing, Bill Chiat had been the new County Executive Officer for all of six weeks. We made a date for a year from now to reflect back on the challenges faced and
the progress made in a job that places him right in the middle of environmental issues engaging not just Napa's tiny population, but much of the world in general. It should make interesting reading.
by Tom Shelton
Environmental Dissension Continues to
By Tom Shelton
Controversy over new conservation regulations related to setbacks from the rivers and streams of Napa County has polarized our community. The broad continuum of opinion stretches from extreme property rights advocates to those who believe limited property takings are a legitimate governmental response to difficult environmental issues.
As positions along this continuum have hardened it has become increasingly difficult to form the political consensus needed to strengthen the conservation regulations that may well improve the odds of removing the Napa River from the impaired waterways list.
As an impaired waterway, the Napa River faces increasing federal scrutiny under the authority of the Clean Water Act of 1973. For more than three decades federal authorities have concentrated on point source pollution (pollutants that flow directly from pipes).
Today, point source pollution is well understood and federal focus is appropriately directed toward non-point source pollution, which includes sedimentation. It is widely presumed in Napa County that sedimentation is a limiting factor that inhibits the general health of the Napa River. This presumption is currently being tested through the phase II study of the Napa River's total maximum daily load (TMDL).
In anticipation of increased federal scrutiny, Napa County supervisors convened the Watershed Task Force in 1999. The purpose for the Task Force was to develop a blueprint for strengthened environmental regulations and to provide a framework for the political consensus needed to turn the Task Force blueprint into a regulatory reality.
To the great credit of the Task Force participants, progress toward needed regulatory improvements was achieved and, in particular, there appeared to be broad consensus around new development standards for setbacks from streams and rivers. Left open was the more controversial subject of setback standards for vineyard replants and existing residences.
Armed with the final report of the Watershed Task Force, in 2002 Napa County supervisors appointed a Watershed Task Force Oversight Committee to work with County planners to
turn the Task Force recommendations into the language of a new County ordinance. More
than one year and hundreds of thousands of dollars later, the envisioned ordinance is very
far from reality.
The first act of dissension appeared before the ink was dry on the first report of the Watershed Task Force. In 1999, the Sierra Club sponsored a lawsuit against the County of Napa questioning the discretionary authority of County planners to approve erosion control plans under the 1991 Hillside Ordinance. Napa County found itself in the 'Catch-22' position of falling under the scrutiny of the California Environmental Quality Act (CEQA) by virtue of developing in 1991 a proactive environmental regulation to control hillside development.1
In this charged atmosphere, the Watershed Oversight Committee began the task of drafting
a new conservation ordinance. Within a few weeks of their organizational meeting the Oversight Committee learned that a group of environmental activists, including one member
of the Committee itself, had joined together to sponsor the Timber Harvest Initiative, which would mandate streams and river setbacks far in excess of those arrived at by the Watershed Task Force and under consideration by the Oversight Committee. Sponsors of the initiative claimed for their rationale the slow progress County officials were making toward the drafting of new conservation regulations. This, of course, ignored the fact that these same initiative sponsors were responsible for the Sierra Club lawsuit which burdened the regulatory development process with additional CEQA requirements that would take years of environmental study to complete.
In an attempt to demonstrate good faith, the Oversight Com-mittee recommended to the Board of Supervisors an "interim ordinance" that would define stream and river setbacks as developed by the Watershed Task Force. This, the Oversight Committee believed, would eliminate the need for the Timber Harvest Initiative, provide some relief to hopelessly delayed project applicants, and provide renewed support for completion of an ordinance envisioned by the Task Force. After all, they believed there was strong political consensus for the new development setback recommendations contained in the final Task Force Report.
When the Board of Supervisors met in the fall of 2002 to discuss the proposed "interim ordinance," it became very clear that any consensus that may have existed had completely evaporated. Following a call to action by local realtors, more than 500 people jammed the Board of Supervisors chambers under the erroneous impression that the interim ordinance would deprive them of their rights as property owners. It is fair to say that few of the protesters, including the organizers, had read the ordinance to which they were now so fiercely opposed. Predictably, the Supervisors folded their hands and continued the discussion pending further staff analysis and study.
Finally, after several postponements, an interim ordinance was passed by the Board of Supervisors on April 8, 2003. The ordinance contains a blanket exemption for residential property use that may prove to be problematic.
Debate continues around the Timber Harvest Initiative, which is scheduled for the March, 2004 election. Organized opposition to the initiative will likely place a competing initiative on the same ballot. Meanwhile, frustrated land owners have begun to coalesce around a "Just Say No" campaign to any changes to the existing 1991 Hillside Ordinance.
From my perspective, Napa County would be well served to adopt a plan that reflects the spirit of consensus envisioned with the Watershed Task Force process. This plan would provide for more restrictive setbacks for new vineyard development, protection for existing vineyard assets, an element of parity between new agricultural and residential land use, increased protection of hillside resources, strict enforcement capability, and incentives for voluntary land stewardship efforts. The framework for such a plan exists and enjoys tentative support of a broad coalition that includes agricultural, political, and business leaders in Napa County.
Our current task is to turn that tentative support into a political will to defeat the Timber Harvest Initiative and to move substantially toward a plan that will improve the prospects for the Napa River and the Napa Valley community at large.
1. CEQA guidelines serve an important environmental purpose and are not necessarily onerous for responsible landowners. CEQA, however, affords a very low threshold of evidence for any person or group who seeks to block or delay land development.
Essentially, a vineyard development that meets all Napa County requirements for a negative declaration of environmental impact is still subject to challenge under CEQA, and landowners may be required to complete a lengthy and expensive environmental impact report. The landowner may also face the additional burden of studying the cumulative impact of the project as it relates to all known or anticipated land development in Napa County; a study for which standards are not fully understood.
Consequently, CEQA provides extraordinary power to a small group of extremists who are fundamentally opposed to agriculture in Napa County. In fact, the Sierra Club lawsuit has resulted in a virtual moratorium on new vineyard development in Napa County and may
impact the future ability of vineyard owners to routinely replant existing non-productive or diseased vineyards.
SIX NEW WINES RELEASED FOR SPRING

This year's Insignia is a blend of 77% Cabernet Sauvignon, 18% Merlot, 3% Petite Verdot, 1% Malbec and 1% Cabernet Franc, primarily from estate-owned vineyards in Stag's Leap, Rutherford, Yountville and St. Helena.
With the exception of a short-lived heat wave between June 12th and 14th, Napa Valley experienced mild summer temperatures in 2000 which permitted slow, steady ripening of the fruit. Rains forecast between August 30th and September 2nd caused some concern, but the light showers that did occur were of little consequence and in fact contributed to flavor development, especially in red varieties.
However, the cool nights and wet soil conditions that persisted throughout October did delay maturation, and a series of rainstorms beginning October 25th further affected fruit quality.
Fortunately, grapes for our Insignia blend were picked prior to the storms, and the resulting wine exhibits concentrated aromas of black fruit, cinnamon, spice, tobacco and graphite. Supple tannins with hints of cassis and spice finish long and rich on the palate.
Click here to read more.

Similar to an Alsatian white wine, the 2001 White Pastiche is a blend of 37% Semillon, 22% Viognier, 15% Marsanne, 9% Sauvignon Blanc, 9% Chardon-nay and 8% Scheurebe. It offers floral, pear and citrus-like aromas, with bright fruit flavors ending in a long, lingering finish. This is an excellent choice for poultry and seafood dishes.
Click here to read more.

In 2001 a mid-September cold spell brought picking to a halt, and vintners had to decide whether to resume picking or hold out for warm weather and hope it arrived before the rains. JPV's commitment to harvesting fruit at optimal ripeness demanded we wait, and our patience was rewarded by a warm spell which began October 1st and allowed fruit to mature to desired flavor and ripeness levels.
The 2001 Los Carneros Chardonnay is highlighted by tropical fruit and grilled nut flavors with an undertone of toasty oak. The wine is beautifully balanced with a long, persistent finish.
Click here to read more.

Red Pastiche is a California version of a Côtes du Rhône blend, which this year consists
of 33% Grenache, 30% Mourvèdre, 19% Syrah, 6% Merlot, 5% Carignane, 4% Cabernet Sauvignon and 3% Alicante Bouschet. The wine combines generous red, spicy fruit
aromas with extractive ripe berry flavors, and is a perfect choice for barbecues, stews and spicy-styled dishes.
Click here to read more.

Temperatures in July and August of 2002 were characterized by cool, foggy mornings and warm afternoons -- ideal conditions for ripening fruit. When September unfolded, the weather pattern changed dramatically, with three heat waves and a dry north wind triggering a rapid drop in air moisture. Vine physiology responded swiftly as sugars began to increase while acidity dropped.
Our Sauvignon Blanc was picked prior to the September heat waves, and fruit came in perfectly ripe with good sugar/acid balance. Characteristic flavors of grapefruit and key lime are well integrated with the wine's clean citrusy finish.
Click here to read more.

The 2002 vintage introduces an elegant new package for Eisrébe wherein an ice crystal design has been engraved on a clear, straight-sided Bordeaux bottle known as "Bellissima." The bottle is truly a work of art, surpassed only by the wine within it!
In July and August of 2002, a total of 40 days were marked by cool foggy mornings and warm sunny afternoons, allowing vines to photosynthesize at full efficiency so that by late August grapes displayed remarkable color and flavor development. A warming trend in September saw sugars rise dramatically, and Eisrébe was picked under optimal conditions.
The result is a stunning dessert wine containing flavors of ripe white nectarine and peach with excellent acidity balancing the high sugar content and a rich, long, rounded finish. This wine is equally at home as an afternoon aperitif or aprés-dinner dessert wine.
Personnel Corner:
Opening an ice cream franchise in Florida and specializing in wine industry law are the diverse aspirations of Jeff Hunsaker, JPV's former Director of Hospitality, and Hilary de Puy, National Events Coordinator, respectively, as they say goodbye to their colleagues at JPV and leave to pursue their dreams outside the wine industry. Both have provided close to ten years of exemplary service at JPV and they will be sorely missed.
Jeff is moving his family to Sarasota, where he will explore an entrepreneurial opportunity as a franchise owner of several planned Coldstone Creamery stores. The customer service skills Jeff brought to JPV and the business experience he acquired during his service to the company will undoubtedly provide the foundation for great success in his new venture. Under Jeff's tenure, retail sales at the winery increased from an annual level of less than $500,000 to more than 6 million dollars in 2002.
Although it is impossible to measure in financial terms the impact of her many contributions to Joseph Phelps Vineyards, Hilary DePuy brought a high level of professionalism to her position as events coordinator while simultaneously pursuing her studies toward a law degree. After sitting for the California Bar in July, 2002 she learned on November 22nd that she had passed! Hilary's tenacity and strength of will has been an inspiration to everyone who works with her.
The newest addition to the JPV team is Mike McEvoy, an East Coast transplant who most recently was the Marketing Manager for Boordy Vineyards in Hydes, Maryland. Mike has an MBA from the University of Baltimore and will be JPV's new Director of Marketing.
Molly Britton, who many of our customers know through her administration of the Phelps Preferred club, has accepted a promotion to the position of Hospitality Director, taking over Jeff's job. Molly is the ideal candidate to lead the retail room and hospitality department through this transition, and she will be assisted by Trey Blankenship, who takes over management of the retail sales center.
Additionally, Duane Harris is the new Director of Customer Service, taking over Molly's Phelps Preferred duties. Duane has previous wine club management and customer service experience with Cuvaison Winery in Calistoga and Ledson Winery in Kenwood.
Introducing Duane Harris, Joseph Phelps
As the new Director of Customer Service at Joseph Phelps Vineyards, it is my goal to ensure that Phelps Preferred customers continue to hold their membership in the same high regard as was established under the watch of Molly Britton.
Having enjoyed a career in the wine industry for over two decades, I know what an important role club members play in contributing to a winery's success. You are an extension of our family as you introduce our wines to friends and associates, seek out particular favorites in fine restaurants and retail shops, and champion our cause with your interest and enthusiasm.
Since joining the Joseph Phelps Vineyards team in January of this year, I have been impressed with the way that Phelps Preferred is managed. Information is clearly communicated to members and wine is shipped only to those states that have reciprocal agreements with California. Perhaps most impressive is the fact that our membership has remained stable over the past two years, proving that the combination of outstanding wines, excellent customer service and loyal Phelps Preferred members makes it possible to rise above the current tough economic times.
As we move forward, please know that the first priority of my department is continuing to give our Original, Flagship and Collectors' Club members the finest service we can provide. If you have any questions about Joseph Phelps Vineyards or Phelps Preferred, please contact Neta Thornell (nthornell@jpvwines.com), Victoria Field (vfield@jpvwines.com), or myself, Duane Harris (dharris@jpvwines.com). We all welcome your comments and look forward to hearing from you (or, better yet, meeting you in person!).
Best regards,

Duane Harris
Mediterranean Wine Cruise Scheduled for
JPV has joined Crystal Cruises and Wine Spectator Magazine to provide a unique opportunity for wine lovers.
This fall, the new and luxurious Crystal Serenity will set sail from Barcelona on September 19 for a cruise that promises to be an unforgettable epicurean experience. Mediterranean cuisine will accompany many of Napa's finest wines, and Bill and Andrea Phelps will be among the hosts for a series of wine tastings, seminars and winemaker dinners that will include a vertical tasting of Insignia. Also on board will be representatives from Silver Oak Cellars, Chateau Montelena, Jordan and Beaulieu Vineyards.
Ports of call will include St. Tropez, Cannes, Portofino, Livorna, Valletta, Bari, Athens and Mykonos. On board, instructors from The Wine Spectator's Wine School will guide passengers through the history, wine, cuisine and culture of the birthplace of Western Civilization.
For further information or to make reservations, contact Diane Murphy at 707-967-9412.
Awards and Reviews:
2000 INSIGNIA RED WINE (90-92)
"The 2000 Insignia reveals a smoky, rich, cassis characteristic, medium to full body, and an open-knit, lush, generous style . . . Expansive, fleshy and seductive, it should drink well for 15-16 years." (8-31-02)
Special Report: California Cabernet 2000
92-94 Joseph Phelps Insignia Napa Valley 2000
"Serves up lots of ripe, rich, spicy cherry, currant, plum and blackberry fruit. Tightly focused, with fine balance. Finished with spicy, cedary oak and good length." (7/31/01)
2000 Insignia Proprietary Red Wine Napa Valley.
"Very good saturated ruby color. Roasted currant, mocha and dark chocolate on the nose. Lush and soft but nicely delineated, with a chewy texture and solid underlying minerality. A large-scaled fruit bomb with a seamless texture. Finished with building but thoroughly sweet tannins. 91-94."
- May/June 2002, Issue 102
March 21, 2003
Ben Giliberti
Big Wines, Big Bucks
"Every couple of years, Napa's Merryvale winery . . . has the guts to put its top-of-the-line Profile Cabernet blend up against some of the biggest names of Napa in a blind tasting open to the press and key restaurateurs in Washington, D.C. Two results are worthy of note. First, Merryvale Profile did very well . . .
More astonishing, however, is the almost total dominance of Joseph Phelps 1999 Insignia. Not only did it blow away the competition, it won decisively across the country . . . Given the quality of the opposition, its performance is remarkable. Here are my notes on the Phelps.
Joseph Phelps Insignia Napa Valley 1999 ($125). Though the wine is a bit tight now on the palate, the nose is a seductive blend of spice/vanilla, pure red fruit and spring flowers. With more breathing in the glass, the palate opened up to reveal pure blackberry fruit with a hint of Pauillac mineral and cassis. Had I not known there were no Bordeaux in the tasting, I would have pegged it as 1999 Lafite-Rothschild. It would have been a wrong guess, but an apt way to convey its grace and grandeur."
The Wall Street Journal
December 20, 2002
TASTINGS/By Dorothy J. Gaiter and John Brecher
The Chardonnay Gamble --
". . . Two of our best wines were from two of America's most venerable wineries, Joseph Phelps and Robert Mondavi . . .The Phelps was very elegant. "Buttery and a bit thick," we wrote. "Nice, rich finish. Lemony. Really, really nicely made. Lovely and balanced. Seamless and easy."
Joseph Phelps Vineyards 2000 (Los Carneros).
Tasters' Comments: Best value (tie). Seamless and elegant. So easy that it seemed to go straight into our souls.
Native Wetlands: What they are, why they're
important, how we maintain them
By Sarah Black A wetland is a seasonal depression or swale on the earth's surface, which consists of a natural cover of wetland plant species. These areas are important to us because they create habitat for wildlife. Here at Joseph Phelps Vineyards we are currently monitoring and maintaining a constructed wetland, established in 2001, at our Suscol Ranch. We will be working with the Army Corps of Engineers, Wetlands Research Associates and our vineyard crews for the next four years to ensure the establishment of the 3-acre wetland project.
The proper balance of seasonal hydrology is very important in our monitoring observations. Our wetland is not inundated with water all year long, only during the rainy season (October 15th through April 15th). Vegetation establishment is key in maintaining this moisture balance of the soil. Wetland species such as Meadow Barley (Hordeum spp.), Toad rush (Juncus spp.) and Goldfields (Lasthenia spp.) will grow together to form the native cover necessary for this balance to occur.
In the process of building the wetland we are also restoring the native plant habitat along the Arroyo Creek that borders our property. In order for these plants to be successful in and around the wetland, care must be provided. Weeding, watering, transplanting, monitoring and installation of temporary fencing are all part of the maintenance program. Close monitoring for non-native and exotic invasive species is required and actions are taken to ensure that invasive species do not become established.
On April 3rd a group of JPV volunteers met at the Suscol Ranch Wetlands site for what we hope will be the first in a series of "Planting Days." Many people volunteered their services, but special thanks goes to Javier Nino de Riviera, our vineyard supervisor at the Suscol site. Javier brought the toilet and was on Star thistle patrol even though he had been up since midnight the night before protecting the vines from frost. He and his crew are indispensable in helping us maintain and manage the work that needs to be done to the wetlands.The new wet-land complements an already existing wetland, located on the southern portion of the property, that we use as a reference. Many animals have already discovered this restored habitat. Waterfowl, amphibious species, and a lynx have been seen using the wetland in just the first year of establishment. These natural systems are encouraged because they help enhance our vineyards' success due to the biodiversity created.
Wine Industry Profile:
Napa County's New CEO Seems Ideally
Suited for Job
By Kathie Fowler Bill Chiat has come a long way from wearing the uniform of a Minnesota Park Ranger in the mid 80's to being appointed Napa County's new Chief Executive Officer on March 3rd of this year. Answerable only to the Board of Supervisors, Chiat is responsible for the overall management and direction of county government, including its 17 departments, 1400 employees and an annual budget of $200 million. The scope of this job would be daunting enough in a county without Napa's thorny land use problems, but here Mr. Chiat is faced with many strong and competing opinions on the subjects of watershed protection, stream and river setbacks, hillside plantings, erosion control and river restoration -- to name just a few of the issues currently being addressed by both environmentalists and the wine industry.
He is aware of the discord between the two factions, and it is surely no accident that his professional background includes extensive experience mediating between rival interest groups. Having most recently served as Deputy County Administrator for Santa Barbara County, he is familiar with land use controversy. One of the most publicized disputes was sparked by a grapegrower clearcutting hundreds of acres of oak trees along Hwy. 101.
"Private property owners, grapegrowers and environmentalists were demanding to be heard," Chiat recalls. "And it was my job to facilitate a dialogue among all of them. It went on for a year and a half, and it was fascinating to observe that when people were able to step away from their entrenched positions and simply talk about their interests, other options and possible solutions would appear."
To Napa residents, however, the outcome of these negotiations sounds all too familiar. (See Tom Shelton's article describing the Timber Harvest Initiative scheduled for the March 2004 ballot in Napa County.) "We got very close to a consensus," Chiat reports. "But fringe elements put opposing initiatives on the ballot, both of which failed. So we had to go back to the Board of Supervisors, who facilitated a public process that four members of the Board ultimately voted for. Was everyone happy? No. Did we reach a consensus? No. But in actuality, the solution was not that far removed from the one we had originally proposed."
Chiat seems completely at home facilitating such complex negotiations. "Having formal authority over people is not what's important to me," he explains. "My goal is to get people to want to listen to each other and become willing to work together. Ordering people to change is not nearly as effective as getting them to want it on their own. And if you can create a non-antagonistic atmosphere to discuss these things, often you discover that opposing viewpoints are really not so far apart. The hillside vineyard owner doesn't want his land impacted by erosion any more than the environmentalist does. It's my job to determine if it's possible to accommodate both interests. If it's not, then we go to our elected officials and let them make the call."
At a recent stream setback hearing, which was attended by private landowners, contractors, realtors, environmentalists and grapegrowers, all with strong opinions about how many
feet from a riverbank or stream-bed a new vineyard should be planted, a home constructed, or an old vineyard replanted, Chiat was impressed. "Everyone was dignified and respectful in stating their opinions. People had interrupted their day and contributed their time and resources to sitting through a two to three hour hearing. Would we rather live in a place where no one cared?"
The question is a good one, and gives rise to asking Chiat where he personally stands on the subject of land use and the environment.
"Given my background as a field biologist, park ranger, and environmental education instructor, it would be logical to assume I was more pro-environmental. But my personal feelings are totally irrelevant here. My job is to bring people together, define the problems, and find solutions. The Napa County Board of Supervisors determines policy. My job is to provide them with the best data and recommendations that I can. What I personally bring to this job is life experience that will hopefully be relevant to the particular problems facing Napa."
And why did he come to Napa?
"That's easy. On all of planet earth, Santa Barbara, Napa and possibly Sonoma are my three favorite places. When I was offered the job of Napa County Executive Officer, the biggest challenge was not whether to move, but how to transport my 450-bottle wine cellar! My partner and I ended up renting a U-Haul and doing it ourselves -- and we didn't break a single bottle."
Although Chiat's initial academic schooling was in the sciences (he holds a B.S. in Field Biology from the University of Minnesota and an M.S. in Natural Resources from the University of Michigan), he also holds a Masters in Business Communications from the University of St. Thomas (1988), completed the intensive Senior Executive Program in State & Local Government at Harvard (1999) and graduated from The Art & Practice of Leadership Development from the John F. Kennedy School of Govt. at Harvard (2002). He is clearly impassioned on the subject of government and how to govern.
"There are tremendous pressures being placed on Napa's resources as more people move here. It's requiring all of us -- politicians, grapegrowers, environmentalists, property owners -- to look at issues we didn't even know existed.
"I don't have any answers personally, but together we can figure it out and find the answers. There's no textbook that tells us how. We just have to muddle through. And it's no accident that our system of democracy was designed this way. The process of change may be slow and convoluted, but it's what makes democracy successful. The whole system works by accommodation. On a day-to-day basis this can be difficult and frustrating and we may not like it. But over 200 years we probably like it a lot.
"I believe in the democratic system, and I believe that working within this system, I can make a difference. One of my favorite quotes is an inscription on Thomas Jefferson's Memorial: 'We might as well require a man to wear still the coat which fitted him when a boy as civilized society to remain ever under the regimen of their barbarous ancestors.'
"Change is inevitable, and hopefully I can bring a breath of fresh air to the table as the county deals with the issues before it. But the only way I will be successful in this community is if we can work together. I can't do it alone."
At the time of this writing, Bill Chiat had been the new County Executive Officer for all of six weeks. We made a date for a year from now to reflect back on the challenges faced and
the progress made in a job that places him right in the middle of environmental issues engaging not just Napa's tiny population, but much of the world in general. It should make interesting reading.
Uncorked!
by Tom Shelton
Environmental Dissension Continues to
Trouble Napa County
By Tom SheltonControversy over new conservation regulations related to setbacks from the rivers and streams of Napa County has polarized our community. The broad continuum of opinion stretches from extreme property rights advocates to those who believe limited property takings are a legitimate governmental response to difficult environmental issues.
As positions along this continuum have hardened it has become increasingly difficult to form the political consensus needed to strengthen the conservation regulations that may well improve the odds of removing the Napa River from the impaired waterways list.
As an impaired waterway, the Napa River faces increasing federal scrutiny under the authority of the Clean Water Act of 1973. For more than three decades federal authorities have concentrated on point source pollution (pollutants that flow directly from pipes).
Today, point source pollution is well understood and federal focus is appropriately directed toward non-point source pollution, which includes sedimentation. It is widely presumed in Napa County that sedimentation is a limiting factor that inhibits the general health of the Napa River. This presumption is currently being tested through the phase II study of the Napa River's total maximum daily load (TMDL).
In anticipation of increased federal scrutiny, Napa County supervisors convened the Watershed Task Force in 1999. The purpose for the Task Force was to develop a blueprint for strengthened environmental regulations and to provide a framework for the political consensus needed to turn the Task Force blueprint into a regulatory reality.
To the great credit of the Task Force participants, progress toward needed regulatory improvements was achieved and, in particular, there appeared to be broad consensus around new development standards for setbacks from streams and rivers. Left open was the more controversial subject of setback standards for vineyard replants and existing residences.
Armed with the final report of the Watershed Task Force, in 2002 Napa County supervisors appointed a Watershed Task Force Oversight Committee to work with County planners to
turn the Task Force recommendations into the language of a new County ordinance. More
than one year and hundreds of thousands of dollars later, the envisioned ordinance is very
far from reality.
The first act of dissension appeared before the ink was dry on the first report of the Watershed Task Force. In 1999, the Sierra Club sponsored a lawsuit against the County of Napa questioning the discretionary authority of County planners to approve erosion control plans under the 1991 Hillside Ordinance. Napa County found itself in the 'Catch-22' position of falling under the scrutiny of the California Environmental Quality Act (CEQA) by virtue of developing in 1991 a proactive environmental regulation to control hillside development.1
In this charged atmosphere, the Watershed Oversight Committee began the task of drafting
a new conservation ordinance. Within a few weeks of their organizational meeting the Oversight Committee learned that a group of environmental activists, including one member
of the Committee itself, had joined together to sponsor the Timber Harvest Initiative, which would mandate streams and river setbacks far in excess of those arrived at by the Watershed Task Force and under consideration by the Oversight Committee. Sponsors of the initiative claimed for their rationale the slow progress County officials were making toward the drafting of new conservation regulations. This, of course, ignored the fact that these same initiative sponsors were responsible for the Sierra Club lawsuit which burdened the regulatory development process with additional CEQA requirements that would take years of environmental study to complete.
In an attempt to demonstrate good faith, the Oversight Com-mittee recommended to the Board of Supervisors an "interim ordinance" that would define stream and river setbacks as developed by the Watershed Task Force. This, the Oversight Committee believed, would eliminate the need for the Timber Harvest Initiative, provide some relief to hopelessly delayed project applicants, and provide renewed support for completion of an ordinance envisioned by the Task Force. After all, they believed there was strong political consensus for the new development setback recommendations contained in the final Task Force Report.
When the Board of Supervisors met in the fall of 2002 to discuss the proposed "interim ordinance," it became very clear that any consensus that may have existed had completely evaporated. Following a call to action by local realtors, more than 500 people jammed the Board of Supervisors chambers under the erroneous impression that the interim ordinance would deprive them of their rights as property owners. It is fair to say that few of the protesters, including the organizers, had read the ordinance to which they were now so fiercely opposed. Predictably, the Supervisors folded their hands and continued the discussion pending further staff analysis and study.
Finally, after several postponements, an interim ordinance was passed by the Board of Supervisors on April 8, 2003. The ordinance contains a blanket exemption for residential property use that may prove to be problematic.
Debate continues around the Timber Harvest Initiative, which is scheduled for the March, 2004 election. Organized opposition to the initiative will likely place a competing initiative on the same ballot. Meanwhile, frustrated land owners have begun to coalesce around a "Just Say No" campaign to any changes to the existing 1991 Hillside Ordinance.
From my perspective, Napa County would be well served to adopt a plan that reflects the spirit of consensus envisioned with the Watershed Task Force process. This plan would provide for more restrictive setbacks for new vineyard development, protection for existing vineyard assets, an element of parity between new agricultural and residential land use, increased protection of hillside resources, strict enforcement capability, and incentives for voluntary land stewardship efforts. The framework for such a plan exists and enjoys tentative support of a broad coalition that includes agricultural, political, and business leaders in Napa County.
Our current task is to turn that tentative support into a political will to defeat the Timber Harvest Initiative and to move substantially toward a plan that will improve the prospects for the Napa River and the Napa Valley community at large.
1. CEQA guidelines serve an important environmental purpose and are not necessarily onerous for responsible landowners. CEQA, however, affords a very low threshold of evidence for any person or group who seeks to block or delay land development.
Essentially, a vineyard development that meets all Napa County requirements for a negative declaration of environmental impact is still subject to challenge under CEQA, and landowners may be required to complete a lengthy and expensive environmental impact report. The landowner may also face the additional burden of studying the cumulative impact of the project as it relates to all known or anticipated land development in Napa County; a study for which standards are not fully understood.
Consequently, CEQA provides extraordinary power to a small group of extremists who are fundamentally opposed to agriculture in Napa County. In fact, the Sierra Club lawsuit has resulted in a virtual moratorium on new vineyard development in Napa County and may
impact the future ability of vineyard owners to routinely replant existing non-productive or diseased vineyards.
SIX NEW WINES RELEASED FOR SPRING
& SUMMER

This year's Insignia is a blend of 77% Cabernet Sauvignon, 18% Merlot, 3% Petite Verdot, 1% Malbec and 1% Cabernet Franc, primarily from estate-owned vineyards in Stag's Leap, Rutherford, Yountville and St. Helena.
With the exception of a short-lived heat wave between June 12th and 14th, Napa Valley experienced mild summer temperatures in 2000 which permitted slow, steady ripening of the fruit. Rains forecast between August 30th and September 2nd caused some concern, but the light showers that did occur were of little consequence and in fact contributed to flavor development, especially in red varieties.
However, the cool nights and wet soil conditions that persisted throughout October did delay maturation, and a series of rainstorms beginning October 25th further affected fruit quality.
Fortunately, grapes for our Insignia blend were picked prior to the storms, and the resulting wine exhibits concentrated aromas of black fruit, cinnamon, spice, tobacco and graphite. Supple tannins with hints of cassis and spice finish long and rich on the palate.
Click here to read more.

Similar to an Alsatian white wine, the 2001 White Pastiche is a blend of 37% Semillon, 22% Viognier, 15% Marsanne, 9% Sauvignon Blanc, 9% Chardon-nay and 8% Scheurebe. It offers floral, pear and citrus-like aromas, with bright fruit flavors ending in a long, lingering finish. This is an excellent choice for poultry and seafood dishes.
Click here to read more.

In 2001 a mid-September cold spell brought picking to a halt, and vintners had to decide whether to resume picking or hold out for warm weather and hope it arrived before the rains. JPV's commitment to harvesting fruit at optimal ripeness demanded we wait, and our patience was rewarded by a warm spell which began October 1st and allowed fruit to mature to desired flavor and ripeness levels.
The 2001 Los Carneros Chardonnay is highlighted by tropical fruit and grilled nut flavors with an undertone of toasty oak. The wine is beautifully balanced with a long, persistent finish.
Click here to read more.

Red Pastiche is a California version of a Côtes du Rhône blend, which this year consists
of 33% Grenache, 30% Mourvèdre, 19% Syrah, 6% Merlot, 5% Carignane, 4% Cabernet Sauvignon and 3% Alicante Bouschet. The wine combines generous red, spicy fruit
aromas with extractive ripe berry flavors, and is a perfect choice for barbecues, stews and spicy-styled dishes.
Click here to read more.

Temperatures in July and August of 2002 were characterized by cool, foggy mornings and warm afternoons -- ideal conditions for ripening fruit. When September unfolded, the weather pattern changed dramatically, with three heat waves and a dry north wind triggering a rapid drop in air moisture. Vine physiology responded swiftly as sugars began to increase while acidity dropped.
Our Sauvignon Blanc was picked prior to the September heat waves, and fruit came in perfectly ripe with good sugar/acid balance. Characteristic flavors of grapefruit and key lime are well integrated with the wine's clean citrusy finish.
Click here to read more.

The 2002 vintage introduces an elegant new package for Eisrébe wherein an ice crystal design has been engraved on a clear, straight-sided Bordeaux bottle known as "Bellissima." The bottle is truly a work of art, surpassed only by the wine within it!
In July and August of 2002, a total of 40 days were marked by cool foggy mornings and warm sunny afternoons, allowing vines to photosynthesize at full efficiency so that by late August grapes displayed remarkable color and flavor development. A warming trend in September saw sugars rise dramatically, and Eisrébe was picked under optimal conditions.
The result is a stunning dessert wine containing flavors of ripe white nectarine and peach with excellent acidity balancing the high sugar content and a rich, long, rounded finish. This wine is equally at home as an afternoon aperitif or aprés-dinner dessert wine.
Personnel Corner:
Employee Comings & Goings
Opening an ice cream franchise in Florida and specializing in wine industry law are the diverse aspirations of Jeff Hunsaker, JPV's former Director of Hospitality, and Hilary de Puy, National Events Coordinator, respectively, as they say goodbye to their colleagues at JPV and leave to pursue their dreams outside the wine industry. Both have provided close to ten years of exemplary service at JPV and they will be sorely missed.Jeff is moving his family to Sarasota, where he will explore an entrepreneurial opportunity as a franchise owner of several planned Coldstone Creamery stores. The customer service skills Jeff brought to JPV and the business experience he acquired during his service to the company will undoubtedly provide the foundation for great success in his new venture. Under Jeff's tenure, retail sales at the winery increased from an annual level of less than $500,000 to more than 6 million dollars in 2002.
Although it is impossible to measure in financial terms the impact of her many contributions to Joseph Phelps Vineyards, Hilary DePuy brought a high level of professionalism to her position as events coordinator while simultaneously pursuing her studies toward a law degree. After sitting for the California Bar in July, 2002 she learned on November 22nd that she had passed! Hilary's tenacity and strength of will has been an inspiration to everyone who works with her.
The newest addition to the JPV team is Mike McEvoy, an East Coast transplant who most recently was the Marketing Manager for Boordy Vineyards in Hydes, Maryland. Mike has an MBA from the University of Baltimore and will be JPV's new Director of Marketing.
Molly Britton, who many of our customers know through her administration of the Phelps Preferred club, has accepted a promotion to the position of Hospitality Director, taking over Jeff's job. Molly is the ideal candidate to lead the retail room and hospitality department through this transition, and she will be assisted by Trey Blankenship, who takes over management of the retail sales center.Additionally, Duane Harris is the new Director of Customer Service, taking over Molly's Phelps Preferred duties. Duane has previous wine club management and customer service experience with Cuvaison Winery in Calistoga and Ledson Winery in Kenwood.
Customer News:
Introducing Duane Harris, Joseph Phelps
Vineyard's New Customer Service Director
As the new Director of Customer Service at Joseph Phelps Vineyards, it is my goal to ensure that Phelps Preferred customers continue to hold their membership in the same high regard as was established under the watch of Molly Britton.Having enjoyed a career in the wine industry for over two decades, I know what an important role club members play in contributing to a winery's success. You are an extension of our family as you introduce our wines to friends and associates, seek out particular favorites in fine restaurants and retail shops, and champion our cause with your interest and enthusiasm.
Since joining the Joseph Phelps Vineyards team in January of this year, I have been impressed with the way that Phelps Preferred is managed. Information is clearly communicated to members and wine is shipped only to those states that have reciprocal agreements with California. Perhaps most impressive is the fact that our membership has remained stable over the past two years, proving that the combination of outstanding wines, excellent customer service and loyal Phelps Preferred members makes it possible to rise above the current tough economic times.
As we move forward, please know that the first priority of my department is continuing to give our Original, Flagship and Collectors' Club members the finest service we can provide. If you have any questions about Joseph Phelps Vineyards or Phelps Preferred, please contact Neta Thornell (nthornell@jpvwines.com), Victoria Field (vfield@jpvwines.com), or myself, Duane Harris (dharris@jpvwines.com). We all welcome your comments and look forward to hearing from you (or, better yet, meeting you in person!).
Best regards,

Duane Harris
Mediterranean Wine Cruise Scheduled for
Sept. 19
JPV has joined Crystal Cruises and Wine Spectator Magazine to provide a unique opportunity for wine lovers.This fall, the new and luxurious Crystal Serenity will set sail from Barcelona on September 19 for a cruise that promises to be an unforgettable epicurean experience. Mediterranean cuisine will accompany many of Napa's finest wines, and Bill and Andrea Phelps will be among the hosts for a series of wine tastings, seminars and winemaker dinners that will include a vertical tasting of Insignia. Also on board will be representatives from Silver Oak Cellars, Chateau Montelena, Jordan and Beaulieu Vineyards.
Ports of call will include St. Tropez, Cannes, Portofino, Livorna, Valletta, Bari, Athens and Mykonos. On board, instructors from The Wine Spectator's Wine School will guide passengers through the history, wine, cuisine and culture of the birthplace of Western Civilization.
For further information or to make reservations, contact Diane Murphy at 707-967-9412.
Awards and Reviews:
The Wine Advocate
2000 INSIGNIA RED WINE (90-92)
"The 2000 Insignia reveals a smoky, rich, cassis characteristic, medium to full body, and an open-knit, lush, generous style . . . Expansive, fleshy and seductive, it should drink well for 15-16 years." (8-31-02)
Wine Spectator
Special Report: California Cabernet 2000
92-94 Joseph Phelps Insignia Napa Valley 2000
"Serves up lots of ripe, rich, spicy cherry, currant, plum and blackberry fruit. Tightly focused, with fine balance. Finished with spicy, cedary oak and good length." (7/31/01)
Stephen Tanzer's International Wine Cellar
2000 Insignia Proprietary Red Wine Napa Valley.
"Very good saturated ruby color. Roasted currant, mocha and dark chocolate on the nose. Lush and soft but nicely delineated, with a chewy texture and solid underlying minerality. A large-scaled fruit bomb with a seamless texture. Finished with building but thoroughly sweet tannins. 91-94."
- May/June 2002, Issue 102
The Washington Post
March 21, 2003
Ben Giliberti
Big Wines, Big Bucks
"Every couple of years, Napa's Merryvale winery . . . has the guts to put its top-of-the-line Profile Cabernet blend up against some of the biggest names of Napa in a blind tasting open to the press and key restaurateurs in Washington, D.C. Two results are worthy of note. First, Merryvale Profile did very well . . .
More astonishing, however, is the almost total dominance of Joseph Phelps 1999 Insignia. Not only did it blow away the competition, it won decisively across the country . . . Given the quality of the opposition, its performance is remarkable. Here are my notes on the Phelps.
Joseph Phelps Insignia Napa Valley 1999 ($125). Though the wine is a bit tight now on the palate, the nose is a seductive blend of spice/vanilla, pure red fruit and spring flowers. With more breathing in the glass, the palate opened up to reveal pure blackberry fruit with a hint of Pauillac mineral and cassis. Had I not known there were no Bordeaux in the tasting, I would have pegged it as 1999 Lafite-Rothschild. It would have been a wrong guess, but an apt way to convey its grace and grandeur."
Weekend Journal
The Wall Street Journal
December 20, 2002
TASTINGS/By Dorothy J. Gaiter and John Brecher
The Chardonnay Gamble --
". . . Two of our best wines were from two of America's most venerable wineries, Joseph Phelps and Robert Mondavi . . .The Phelps was very elegant. "Buttery and a bit thick," we wrote. "Nice, rich finish. Lemony. Really, really nicely made. Lovely and balanced. Seamless and easy."
Joseph Phelps Vineyards 2000 (Los Carneros).
Tasters' Comments: Best value (tie). Seamless and elegant. So easy that it seemed to go straight into our souls.