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p C JEFFERSON COUNTY PUBLIC HEALTH QsH" o o; 615 Sheridan Street • Port Townsend • Washington • 98368 www.jeffemoncountypublichealth.org JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Phillip Morley, County Administrator FROM: Jared Keefer, Environmental Health & Water Quality Director Tami Pokorny, Environmental Health Specialist II DATE: JLdI,, '�q, J-6I3 SUBJECT: Agenda Item: Conservation Futures Project Agreement for the L. Brown Trust II Project with Jefferson Land Trust; $24,900; June 25, 2012 — June 25, 2015 STATEMENT OF ISSUE: On June 25, 2012, the BoCC granted an award from the Conservation Futures Fund to the L. Brown Trust II project (Resolution No. 40 -12). Staff requests approval of an agreement with the sponsor, the Jefferson Land Trust (JILT), regarding the implementation of this project. Conservation Futures Project Agreement for the L. Brown Trust II Project; $24,900; June 25, 2012 — June 25, 2015 ANALYSIS /STRATEGIC GOALS: Resolution 40 -12 authorizes the use of up to $24,900 in conservation futures funds for acquisition expenses and $2000 to reimburse operations and maintenance activities (a total of $26,900). In the application for funding, the sponsor committed to a matching contribution of 82% ($126,100). The source of the match will be a grant from the Salmon Recovery Funding Board (now identified as RCO #12- 1310). The L. Brown Trust II project seeks to acquire and protect 15.5 acres of riparian habitat associated with Snow Creek. This project was identified through the work of the Chumsortium, an affiliation of the Washington Department of Fish and Wildlife, North Olympic Salmon Coalition, Jefferson County Conservation District, Hood Canal Salmon Enhancement Group, WSU Cooperative Extension, and the Jamestown S'Klallam Tribe. The L. Brown property is critical habitat for the ESA listed Hood Canal Summer Chum salmon. The project will acquire and permanently protect salmon habitat by preventing incompatible land uses. COMMUNITY HEALTH PUBLIC HEALTH ENVIRONMENTAL HEALTH DEVELOPMENTAL DISABILITIES ALWAYS WORKING FOR A SAFER AND WATER QUALITY MAIN: 36038594000 HEALTHIER COMMUNITY MAIN: 3603659444 FAX: 3603794487 Title to the property will be held by Jefferson Land Trust with a Deed of Right To Use Land for Salmon Recovery to the Recreation and Conservation Office of the State of Washington. The Statutory Warranty Deed will also include the following language: In order to permanently protect fragile ecosystems associated with Snow Creek, the Grantor and the Grantee herein covenant and agree that the real property that is the subject of this Deed shall be maintained, retained and conserved in perpetuity in its natural state by the Grantee, its successors and assigns This covenant is deemed to touch upon and run with the land in strict conformance with RCW 84.34.230. The land shall not be converted to a different use unless and only if other equivalent lands within Jefferson County (the County) are received by the County in exchange. The foregoing does not apply to the following. • Trails • Planting of any vegetation or trees that are native to the Northwest. • Removal of species that are not native to the Northwest. • Removal of any dead, diseased, dying or dangerous trees that constitute a hazard to life or property. FISCAL IMPACT: The explicit purpose of the Conservation Futures Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. JCPH Management recommends that the BOCC approve the Conservation Futures Project Agreement for the L. Brown Trust II Project with Jefferson Land Trust; $24,900; June 25, 2012 — June 25, 2015 REVIEWED BY: Philip Mo le County Ad �istrator Date COMMUNITY HEALTH PUBLIC HEALTH ENVIRONMENTAL HEALTH DEVELOPMENTAL DISABILITIES NATURAL RESOURCES MAIN: 360 -385 -9400 ALWAYS WORKING FOR A SAFER AND MAIN:360385 -9444 FAX: 360 - 385-9401 HEALTHIER COMMUNITY FAX: 360 - 385 -9401 JEFFERSON COUNTY PROJECT RVATIOIE FUTURES PROGRAM Project Sponsor: Jefferson Land Trust Project Title: L. Brown Trust II Project Number: 2012JLTLBr Approval: Resolution No. 40 -12 on June 25, 2012 A. Parties to the Agreement This Project Grant Agreement (Agreement) is entered into between County of Jefferson (County), PO Box 1220, Port Townsend, Washington 98368 and Jefferson Land Trust (Sponsor), 1033 Lawrence Street, Port Townsend, WA 98368, and shall be binding upon the agents and all persons acting by or through the parties. S, Purpose of the Agreement This Agreement sets out the terms and conditions by which a grant is made through the Jefferson County Conservation Futures Fund. The grant is administered by Jefferson County Environmental Health for the Sponsor for the project named above. C. description of Project The subject Project is described in the attached 2012 Conservation Project Application for the L. Brown Trust II project, Conservation Futures Fund ( "CFF ") from Jefferson County in an amount not to exceed $24,900 will be used towards fee simple acquisition of the real property known in the s of the Jefferson County Assessor as APN 902- 362 -003 and $2000 to reimburse for operations record and maintenance expenses incurred before June 25, 2022. D. Term of Agreement The Project Sponsor's on -going obligation for the above project funded by this Agreement is to provide maintenance of the site or facility to serve the purpose for which it was intended in perpetuity unless otherwise identified in this Agreement. E. Period of Performance The Project reimbursement period for acquisition expenses shall begin on June 25, 2012. The Project reimbursement period for acquisition expenses will end on June 25, 2015 unless proof of match is provided prior to this date. No expenditure made before June 25, 2012 is eligible for reimbursement unless incorporated by written amendment into this Agreement. F. Project Funding The total grant award provided by the Conservation Futures Fund (CFF) for the Project shall not exceed $26,900 and Jefferson County CFF shall not pay any amount beyond that approved herein for funding of the Project. The Sponsor shall be responsible for all total costs for the Project that exceeds $151,000. In no event will the CFF funds expended for this purchase exceed eighteen percent (18 %) of the overall acquisition cost of APN 902- 362 -003. This Project is eligible for reimbursement of capital project and operations and maintenance expenditures as described in the Jefferson County Conservation Futures Program Manual for the 2012 Funding Cycle. The contribution by the Sponsor toward work on the Project at a minimum shall be as indicated below. The contribution by the County toward work on the Project is described immediately above and in ,'C" above. L. Brown Trust II — 2012JLTLBr Acquisition Percentage Dollar Amount Conservation Futures — L. Brown Trust II 18% $24,900 Project Sponsor 82 °l0 $126,100 Total Project Contribution Cost 100% $151,000 Operations and Maintenance Percentage Dollar Amount Conservation Futures -- L. Brown Trust 11 50% $2,000 Project Sponsor 50% $2,000 Total Operations and Maintenance Cost 1 100% $4,000 G. Unexpended Project Allocations Should unexpected Project allocations, including, but not limited to project completion at less than the estimated cost or, alternatively, the abandonment of the Project occur, then the Sponsor shall notify the County. H. Rights and Obligations All rights and obligations of the parties to this Agreement are subject to this Agreement and its attachments, including the Sponsor's Application and Jefferson County Conservation Futures Program Manual for the 2012 Funding Cycle, all of which are attached hereto and incorporated herein. Except as provided herein, no alteration of any of the terms or conditions of this Agreement will be effective unless provided in writing. All such alterations, except those concerning the period of performance, must be signed by both parties. Period of performance extensions need only be signed by Jefferson Board of County Commissioners. 1. Indemnification Sponsor shall indemnify, defend and hold harmless the County, its officers, agents and employees, from and against any and all claims, losses or liability, or any portion thereof, including attorneys fees and costs, arising from injury or death to persons, including injuries, sickness, disease or death to Sponsor's own employees, or damage to property occasioned by a negligent act, omission or failure of the Sponsor. J. insurance The Sponsor shall secure and maintain in force throughout the duration of this contract: 1. Worker's compensation and employer's liability insurance as required by the State of Washington. 2. Comprehensive general liability insurance with a minimum coverage of $1,000,000 per occurrence and $2,000,000 aggregate in connection with the Sponsor's performance of this Agreement. 3. Commercial Automobile Liability Insurance providing bodily injury and property damage liability converge for all owned and non owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence. 4. Sponsor shall provide all required proofs of insurance to the County in care of, Contracts Manager at Jefferson County Public Health, 615 Sheridan St. Port Townsend, WA 98368 prior to fee simple acquisition of APN 902- 362 -001 L. Brown Trust 11— 20121LTLBr K, Independent Contractor The Contractor and the County agree that the Contractor is an independent contractor with respect to the ser,�. s provided pursuant to this agreement. Nothing in this agreement shall re re considered to create the relationship of employer and employee between the parties be hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded County employees by virtue of the services provided under this agreement. The County shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to Contractor, or any employee of Contractor. The Contractor shall not sublet or assign any of the services covered by this contract without the express written consent of the County or its authorized representative. Assignment does not include printing or other customary reimbursable expenses that may be provided in an agreement. L. ownership and Use of Documents All documents, drawings, specifications and other materials produced by the Sponsor in connection with he services rendered under this agreement shall be the properly of the Sponsor whether the project for which they are made is executed or not. The County shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference, and use in connection with the Sponsor's endeavors. M. Compliance with Applicable Statutes, Rules, and Jefferson County Policies This Agreement is governed by, and the Sponsor shall comply with, all applicable state and federal laws and regulations, including RCW 84.34.210, and published agency policies, which are incorporated herein by this reference as if fully set forth. N. Sponsor's Accounting Books and Records The Sponsor shall maintain complete financial records relating to this contract and the services rendered including all books, records, documents, receipts, invoices, and all other 6,idence of accounting procedures and practices which sufficiently and properly reflect all direct and indirect cost of any nature expended in the performance of this contract. The for Sponsor's records and representatives he County andlstate forl inspection by a period of six (6) years after the date of the final payment to Sponsor. Copies shall be made available upon request. G. Licensing, Accreditation and Registration The Sponsor shall comply with all applicable local, state and federal licensing, accreditation, permitting, and registration requirement/standards necessary for the performance of this contract. P. Disputes Except as otherwise provided in this contract, when a bona fide dispute arises between Jefferson County and the Sponsor and it cannot be resolved, either party may request a dispute hearing with a mediator assigned by or associated with Jefferson County District Court. Either party's request for a dispute hearing must be in writing and clearly state: a the disputed issue(s), b. the relative positions of the parties, and c. the Sponsor's name, address and Agency contact number These requests must be mailed to the Project Manager, Jefferson County Environmental Health Department, 615 Sheridan St., Port Townsend, WA 98368, within fifteen (15) days after either party received notice of the disputed issue(s). The parties agree that this dispute 3 L. Brown Trust II — 2012JLTLBr process shall precede any action in a judicial or quasi-judicial tribunal. The parties will split evenly the cost of mediation or whatever form of dispute resolution is used. Q. Termination for funding Jefferson County may unilaterally terminate this contract in the event funding from state, federal, or other sources are withdrawn, reduced, or limited in any way after the effective date of this contract. R. Termination for Convenience The County reserves the right to terminate this agreement at any time by giving ten (10) days written notice to the Sponsor. S. Assignment w The Sponsor shall not sublet or assign any interest in this Agreement, and shall not transfer any interest in this agreement without the express written consent of the County. T. Non- Waiver. Waiver by the County of any provision of this agreement or any time limitation provided for in this agreement shall not constitute a waiver of any other provision. u. County Does Not Assume Additional Duties The County does not assume any obligation or duty, except as required by federal or state law, to determine if Sponsor is complying with all applicable statutes, rules, codes ordinances or permits. V. Agreement Representatives All written communications sent to the Sponsor under this Agreement will be addressed and delivered to: Sponsor Contact _Conservation Futures Program Contact Sarah Spaeth, Executive Director Jefferson County Environmental Jefferson Land Trust Health — Conservation Futures 1033 Lawrence St. 615 Sheridan Street Port Townsend, WA 98368 Port Townsend, WA 98368 These addresses shall be effective until receipt by one party from the other of a written notice of any change. W. Entire Agreement /Severability This agreement, along with all attachments, constitutes the entire agreement of the parties. No other understandings, oral or otherwise, regarding this Agreement shall exist or bind any of the parties. If any part of this Agreement is ruled or adjudicated to be unlawful or void, all other sections of this Agreement shall continue to have full force and effect. X. Effective Date This agreement, for the L. Brown Trust II project shall be effective upon signing by all parties. Y. Venue: Venue for any litigation arising from this Project Agreement shall be only in the Superior Court In and for Jefferson County. Each party to this agreement shall be responsible for their litigation costs, including attorney's fees. L. Brown Trust 1I- 2012JLTLBr DATED this day of 2013• By John Austin, Chair Jefferson Board of County Commissioners By Jefferson Land Trust Attested: Carolyn Avery, Clerk of the Board LD'avid wed a to form' i Alvarez, Chief Civil A L. Brown Trust 11— 2012JLTLBr Recordation requested by: Recreation and Conservation Office Upon recordation return to: Recreation and Conservation Office 111 Washington Street SE P.O. Box 40917 Olympia, WA 98504 -0917 DEED OF RIGHT TO USE LAND FOR SALMON RECOVERY Grantor: Jefferson Land Trust Grantee: Recreation and Conservation Office Abbreviated legal description: E % NW NW 36 -29 -2W (More particularly described in Exhibit "A" (Legal Description) and as depicted in Exhibit B (Parcel flap) and the survey recorded on 3`d day of March, 2011, Jefferson County Auditor No, 558432. Assessor's Tax Parcel No.: 902362003 The Grantor enters this Deed for and in consideration of monies coming in whole or in part from the Puget Sound Acquisition and Restoration Account. Such grant is made pursuant to the Project agreement entered into between the grantor and the grantee entitled Project Number 12-1310C signed by the Grantor on the 26M day of February, 2013 and the Grantee the 18' day of March, 2013 and supporting materials, which are on file with the Grantor and the Grantee in connection with the project agreement. The Grantor hereby conveys and grants to the Grantee as the representative of the people of the State, the right to enforce the following duties: 1. The Grantor shall take such reasonable and feasible measures as are necessary to protect the Real Property as described in Exhibit A: Legal Description, in perpetuity. Such measures shall be consistent with the purposes in the project agreement, including protecting, preserving, restoring and/or enhancing the habitat functions on the Real Property, which includes the channel migration zone, the forested buffer and the streambed of Snow Creek. This habitat supports or may support priority species or groups of species including but not limited to anadromous fish such as Chum, steelhead, coho and cutthroat. 2. The Grantor shall allow public access to the Property as provided in the project agreement. Such access shall be subject to the restrictions allowed under the project agreement, by written agreement with the Grantee, or under state law. This provision is not intended to prevent reasonable access or use restrictions that are necessary for safe and effective management of the property consistent with salmon recovery purposes and the project agreement. 3. The Grantor shall allow access by the Grantee to inspect the Real Property for compliance with the terms of this Deed and the applicable project agreement to which the Grantor is a signatory. Such access shall be subject to the restrictions, if any, allowed under the project agreement, by written agreement with the Grantee, or under state law. The Grantor warrants it has and shall maintain the legal right and means to reach the property. 4. Without prior written consent by the Grantee or its successors, through an amendment to the project agreement or the process set forth below, the Grantor shall not use or allow any use of the Real Property (including any part of it) that is inconsistent with the salmon recovery purposes herein granted and as stated in the project agreement. The Grantor shall also not grant or suffer the creation of any property interest that is inconsistent with the salmon recovery purposes herein granted and as stated in the project agreement. Grantee's consent to an inconsistent use or property interest under this Deed shall be granted only to the extent permitted by law and upon the following three conditions, which ensure the substitution of other eligible land. The conditions are: (1) the substitute salmon recovery land must be of reasonably equivalent habitat qualities, characteristics and location for the salmon recovery purposes as the Real Property prior to any inconsistent use; (2) the substitute salmon recovery land must be of at least equal fair market value to the Real Property at the time of Grantee's consent to the inconsistent use; and (3) the fair market value of the Real Property at the time of the Grantee's consent to the inconsistent use shall not take into consideration any encumbrances imposed on or alterations made to that land as a result of the original state grant and other grants if such encumbrances or alterations reduce the value of the Real Property from what it would be without them. For purposes of this Deed, the project agreement includes any amendments thereto that occurred prior to or may occur subsequent to the execution of this Deed. This Deed contains covenants running with the land and shall be binding upon the Grantor, its successors and assigns, and upon any person acquiring the Property, or any portion thereof, or any interest therein, including a leasehold interest, whether by operation of law or otherwise. If the Grantor sells all or any portion of its interest, the new owner of the Property or any portion thereof (including, without limitation, any owner who acquires its interest by foreclosure, trustee's sale or otherwise) shall be subject to applicable covenants and requirements under the Deed. This Deed may not be removed or altered from the Real Property unless specific approval has been granted by the Washington State Recreation and Conservation Office and/or the Washington State Salmon Recovery Funding Board or its successors. The Washington State Recreation and Conservation Office and the Salmon Recovery Funding Board and /or its successors shall each have a separate and independent right to enforce the terms of this Deed. Grantor: Project Sponsor Name By: Name: Title: Hated this day day of , 2p Grantor Acknowledgment STATE OF WASHINGTON) ) ss COUNTY OF i certify that 1 know or have satisfactory evidence that is the (Signatory's Name) person who appeared before me, and said person acknowledged that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledge it as the for the Sponsor, (Title) (Organization Name) and to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Notary Public in and for the State of Washington, residing at My appointment expires Grantee: STATE OF WASHINGTON, acting by and through THE SALMON RECOVERY FUNDING BOARD, administered by the RECREATION AND CONSERVATION OFFICE By: Name: Title: Dated this day day of Grantee Acknowledgment STATE OF WASHINGTON) )SS COUNTY OF ,20— I certify that 1 know or have satisfactory evidence that is the (Signatory's Name) person who appeared before me, and said person acknowledged that (he/she) signed this instrument, on oath stated that (he /she) was authorized to execute the instrument and acknowledge it as the Director, of the Recreation and Conservation Office and to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Notary Public in and for the State of Washington, residing at My appointment expires Exhibit A Legal Description The East V2 of the Northwest 1/4 of the Northwest 1/4 vfSection 36, To%mship 29 earth, Lange 2 %Vcst, W.M., Jcffcrson !County, NVashington, EXCEPTING THEREFROM those portions as conveyed to the State of Washington for highway purposes by deeds recorded August 19, 1919 under Recording No. 45027 and March 12, 1957 under Recording No. 1529 2, and to Jefferson County for road purposes by deed recorded March 5, 1942 under Recording No. 9°6765, all records of Jefferson County, Washington. Situate in the County of Jefferson, State of Washington. Exhibit B Parcel Map 2012 .Jefferson County Conservation Futures P: ogram Property Acquisition and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer "NIA "for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at 385-4498 or &Mkorn v co'ief ersom wa. us with questions. 1. Project Title: L. Brown Trust It Property 2a. Conservation Futures Acquisition Request: $24,WO b. Conservation Futures O &M Request: $2,000 3. Total Conservatien Futures Request: $25,900 4. Please indicate the type of interest contemplated in the acquisition proem, X Warranty Deed _ Easement Other (Please describe below.) In whose name will the property title be held after acquisition? Jefferson land Trust with a Deed of Right to the State of Washington Recreation and Conservation Office through tlx: Salmon Recovery Funding Board. 5. Applicant Information Name of Applicant or Organization: Jefferson lam! Trust Contact: Sarah Spaeth Title: Executive Director Address: 1033 Lawrence Street, Port Townsend, Washington Phone: (360) 379 -9501, ext 101 Fax: (360) 379 -9897, exL Email; sspaeth@saveland.org 6. Sponsor Information: (f different than applicant) Organization Name: Contact: Title: Address: Phone: (___j - , ext. Fax: (_ - , ext. Email: This application was approved by the sponsor's legally responsible body (e.g., board, council, etc.) on February 21, 2012. 7. Site Location Street Address or Description of Location: The L. Brown Trust parcel is located at the intersection of West Uncas Roast and Highway 101 south of Discovery Bay. Driving Directions from Port Townsend: Take Highway 20 south from Port Townsend toward Discovery Bay. Turn left (south) on Highway 101 and travel approximately 1 114 miles south to the intersection of 101 and West Uncas Road. The property is located directly to the west of Highway 101 and to the south of West Uncas Road, Section: NW114 Section 36 Township 29N Range 2W Assessor's Parcel Number(s): 902 362 003 S. EXISTING CONDITIONS New Site: Yes No X Number of Parcels: One Addition to Existing Site: Yes X No Total Project Acreage (if different): Existing Structures/Facilities: None Acres to Be Acquired: 15.5 Current Toning: Rural Residential 1:5 Any current covenants, easements or restrictions on land use: None Current Use: Vacant Land Waterfront (name of body of water): Shoreline (linear feet): Snow Creek -1400' Owner Tidelands /Shorelands: 9. Current Property Owner X is is not a willing seller. 10. In one -half page or less, provide a summary description of the project, the match, overarching goal, and three top objectives. Jefferson Land Trust (JLT) and Chumsortium partner organizations Washington Department of Fish and Wildlife (WFDW), North Olympic Salmon Coalition, Jefferson County Conservation District, Hood Canal Salmon Enhancement Group, WSU Cooperative Extension, Jamestown S'Klallam Tribe have been working together since 2001 to protect, restore and enhance the important estuarine and riparian habitats of Salmon and Snow Creeks at the head of Discovery Bay. The Salmon and Snow Creek Estuary is the most intact of its type on the Strait of Juan de Fuca and is the unquestioned stronghold of the ESA listed Strait of Juan de Fuca summer chum salmon. At the October 2011 and February 2012 meetings of the Chumscrtium partners, the L. Brown property was identified as important for permanent protection and restoration efforts. Numerous salmon species utilize the well forested riparian habitat of Snow Creek that flows through the property, including the endangered Summer Chum. The project fits well with the Hood Canal 2 Coordinating Council Strategy for Salmon Recovery. Critical habitat acquisition is number one on their sequenced project lists for both Salmon and Snow Creek watersheds. The 15.5 acre L. Brown Trust property contains approximately 12 acres of forested riparian habitat with 1400' of Snow Creek bisecting the property from south to north. Site assessments indicate good habitat and some opportunity for conifer under planting. The property is zoned for Rural Residential development at one residence per 5 acres, technically supporting three homesites. It is located directly adjacent to Highway 101, a Washington State Scenic Byway. With the support of Chumsortium partners JLT will be applying. for a Salmon Recovery Funding Board (SRFB) grant in spring 2012 for the L. Brown Trust property. We will be applying for 82°% of the project budget from the SRFB grant and are requesting 18°% of the project costs from the Conservation Futures Program. Overarching Goal The overarching goal for this project is to acquire and permanently protect additional critical salmon habitat in the project area and prevent inappropriate development and incompatible land uses. The three top objectives for this project are: 1. Secure the majority of funding through the SRFB grant process in 2012. 2. Acquire high priority threatened property from willing seller. 3. Permanently protect and restore the property as wild riparian salmon habitat, and to benefit water quality in Snow Creek and Discovery Bay. 11. Estimate costs below, including the estimated or appraised Value of the properties) or property right(s) to be acquired, even if Conservation futures funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. a. Estimated or Appraised Value of Propert(ics) to be Acquired: $125,000 b. Total Estimated Acquisition- related Cost (.see Conservation Futures Manual for eligible costs): $26,000 c. Total Operation and Maintenance Cost: $2,000 d. Total Project Cost: $153,000 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition. - related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): The L. Brown Trust property is currently listed for $125,000 through ,John L. Scott Realty, Bill Perka listing agent. An appraisal and appraisal review will be conducted prior to purchase. Anticipated project related costs include; appraisal and appraisal review, title insurance and closing costs, taxes and recording fees, legal costs, project management and administration. A stewardship plan will be created that will include replanting and management considerations. 3 Operations and Maintenance costs include hard costs associated with JLT's annual monitoring of the protected property. The estimated time involved is 3 hours of on -site visit and data update in office on an annual basis in perpetuity. This is in accordance with the recommendation by Land Trust Alliance for annual monitoring of properties, since the property would be owned outright and development completely prohibited- For the purposes of O&M budget for this grant, we are only considering 10 years of monitoring. Stewardship plan and restoration costs will be covered by SRFB grant. OEM Budget: 4 hours@ $50 per hour annually for 10 years = $2,000 Project related costs and O&M imeline Est. Cost Land Appraisal and review Early 2013 Fall 2012 125,000 $5.000 Title insurance and closing costs, taxes, etc Early 2013 00 000 Project Management Admin and legal fees arch 2013 12,'00'00'5 (Stewardship Plan, Restoration 21713 - 000 O&M t?13 - 2018 O & M fees would be invoiced on an annual basis up to the allowable amount. 12a. Sponsor or other organizations X will will not contribute to acquisition of proposed site and/or operation and maintenance activities. b. If applicable please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. We will be requesting $126,100 of SRFB grant funds providing more than the necessary match for the CFF grant. We are applying for CFF funds for 18% of the total project costs presuming there will be fee simple acquisition by JLT with a Deed of Right held by the State of Washington through the Recreation and Conservation Office. c. Matching Fund. Estimate Conservation Futures Funds Requested Matching FundslResources* Total Project Acquisition Cost Acquisition- O &M % $24,900 $2,000 18% $126,100 82% $151,000 $2,000 100% * If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. d. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? avi ilahle now? when? SRFB Grant 2012 $126,100 Yes No Dec. 2412 Yes No Dec. 2012 S Yes No Yes No 4 NOTE Matching funds are strongly recommended and a higher rating will he assigned to those projects that guarantee additional resources for acquisition. Donation ofproperty or a property right will be considered as a matching resource. Donation of resources for on- going maintenance or stewardship ("in-kind" contributions) area not eligible as a match. 13a.Sponsoring agency X is is not prepared to provide long -term stewardship (maintenance, up -keep, etc.) for the proposed project site. JILT anticipates a stewardship program of at least annual monitoring to insure that the conservation values of the preserve are in good shape; that there are no adverse impacts to the property such as trash accumulation or inappropriate uses, and that no noxious weeds have invaded the property. JILT Staff and trained community volunteers will conduct monitoring, and maintenance efforts. JILT relies on trained professionals, including habitat biologists, foresters and others as appropriate. b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. JILT will conduct stewardship, monitoring and maintenance of the property along with the other parcels in the Salmon and Snow Creek watersheds that we own or are protected with conservation easements. JLT's stewardship program includes annual monitoring (at least) of protected properties and easements, upkeep and maintenance (trash removal, signage, invasive plant control) and restoration efforts (tree planting, trail building, etc.) We anticipate needing to conduct some restoration planting and restoration forestry on the property and will be seeking funding for these elements in our SRFB grant application. Replanting and restoration forestry will be conducted in consultation and partnership with other Chumsortium agencies and organizations. 14. Describe the sponsoring agency's previous or on -going stewardship experience. JILT currently holds and monitors 48 conservation easements in Jefferson County, in addition to conducting monitoring and stewardship activities on the nearly 200 acres it owns. The Hoh River Trust and Washington State Parks contract with JILT to monitor and steward over 7000 acres of land under their control. In addition, the Land Trust stewards land owned by Jefferson County, the City of Part Townsend and Washington Department of Natural Resources. JILT stewardship and monitoring protocols were developed with the guidance of Land Trust Alliance (the national umbrella organization for land trusts) and adherence to those protocols is one of the requirements for our national accreditation. This includes at least annual monitoring of easements and preserves by professional staff and trained volunteers, extensive data collection and management, help with stewardship, enhancement and restoration goals and legal defense of the conservation easements should it become necessary. JILT has a legal defense fund of nearly $350,000, and continues to build this fund with each new easement acquisition, recognizing the Legal obligation and responsibility of protecting conservation values in perpetuity. 15. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? a. No, neither the sponsor nor - applicant has been involved in a project previously approved for Conservation Futures funds. b. 1 'Yes, the sponsor and /or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: 5 JLT has sponsored numerous applications that have received Conservation Futures funds. These projects include: Sunfield Farm, 2003; Quimper Wildlife Corridor, 2004; East Tarboo Creek Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007; Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Ruck'2010, Quimper Wildlife Corridor 2014; Tamanowas Rock 2010; Chimacum Creek Carleson 2011; Winona Basin - Sloedel 2011. 16a. Property ?L-can _cannot feasibly he acquired in a timely fashion with available resources. b. Necessary commitments and agreements _are X are not in place. c. All ,parties are X are not in agreement on the cost of acquisition. "not " to any of the shove, please explain below. Funding is not secured yet and the purchase price will need to be determined through the appraisal process. If the project ranks well in the grant applications we will either purchase an option on the property or enter into a ,purchase and safe agreement. 17. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. please describe below, including the site's importance to the plan. Please reference the website of the plan if available or include the plan with this application. _complements an adopted open space or conservation plan, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. —is a stand -alone project. The L. Brown property is located in the Discovery Bay project area that has been the focus of protection and restoration efforts on the past of Chumsortium partners since 2000 and is identified . in the Summer Salmon Chum Recovery Plan which can be located at the following website. - htt :1 /www.nwr.noaa. ovlSalmon- Recover - Piannin 1R cove - DomainslPu et- SoundlHC- Recoye. -Plan.cfm The Hood Canal Coordinating Council 3 -year work plan has identified Snow /Salmon floodplain and nearshore protection (row 77) as a priority. This category covers the acquisition of the L. Brown Trust property and row 76 Snow /Salmon Riparian restoration would cover the conifer restoration planting JLT and Chumsortium partners would undertake. The direct link to the spread sheet: http:/i'heec.wa.gov/CEDocumcnts/Doumloads QetFile,aspx?id= 4I6957 &fd =0 In addition, the Snow Creek watershed is identified on the Jefferson County's Comprehensive Plan map as Parks, Recreation Areas, Conservation Easements and Areas for Future Cooperative Preservation Efforts: http: l/ www. co. jefferson .wa.uslidms /pdfs /parks9g.pdf. In JLTs County Conservation Plan, this area has four priority habitat indicator layers (the maximum), The plan is located on the JLT website www.saveland.org.. The Nature Conservancy's Ecoregional Assessment categorizes this as both aquatic and terrestrial Ecoregional Portfolio site (defined as areas of exceptional biological value and most likely for conservation to succeed). A copy of the plan can be downloaded from http: /lea st. t nc. o rgla sse ssrn a nt12 /. 2 Churnsortiurn partners formed a Snow /Salmon Technical Advisory Group that prepared a Snow Salmon Watershed Management Plan. Project partners received recognition and an award from WDFW for this plan. The first goal identified in the Snow /Salmon Watershed Management Plan, is to "Protect the SnowlSalmon Management Area and its lands and waters in a manner that prevents the degradation or loss of habitat for indigenous fish and wildlife and recreationally important shellfish This plan is not listed online and is quite lengthy,.but is available at the JLT office. 19. List the important milestones for this project. Milestones are to secure Conservation Futures grant and SRFB Rands for the project area, determine a purchase price, secure the property and conduct replanting and stewardship activities. 19. Conservation Opportunity or Threat: a. The proposed acquisition site X dares _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. b. If applicable, please carefully describe the mature and immediacy of the opportunity or threat, and any unique qualities about the site. The property is currently for sale by the L. Brown Trust and the landowner is very eager to sell. Current zoning would permit division into three rural residential parcels. 20. Describe the physical characteristics of the site that its proposed for acquisition with Conservation Futures Program funds including: vegetatiGn, topography, surrounding land use, and relationship to parks, trails, and open space. Snow Creek watershed is in the raiinshadow of the Olympic Mountains and enters into Discovery Bay from the south. The L. Brown parcel is located at a 1pproxi".1ately river mile 1.5 and consists of 15.5 acres with about 1400' of Snow Creek running through it toward Discovery Bay. The topography is level bottomland and a mature mixed forest covers muds of the property. Approximately 12 acres have been determined to be riparian buffer with the remaining upland forest buffer. All of the property is classified by Jefferson County as one or more Critical Area: wetland, susceptible aquifer recharge area, flood hazard (FEMA) and seismic hazard area. The County also identifies is as Type 2 Core Habitat. over 360 acres of critical riparian, estuarine and wetland habitat and agricultural lands located downstream to the L. Brown property are permanently protected through WDFW fee ownership and conservation easements with JLT. Residential lots immediately to the west and south separate the L. Brown Trust parcel from large commercial forestland owned by Pope Resources. Across Highway 101 to the east is another L. Brown Trust parcel designated as open space agricultural land. The Pacific Northwest National Scenic Trail passes through the head of Discovery Bay into the foothills of the Olympics about',/2 mile north of the site. 21. The proposed acquisition: X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 7 X provides 'habitat for a variety of native flora or fauna species. X contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above, please descrihe below, and cite or provide documentation of species use. Anticipated results of the project include perpetual protection of this habitat which will benefit fresh water life stages of summer chum salmon (threatened and one of only 8 extant subpopulations remaining today), Coho salmon, cutthroat and steelhead trout utilizing Snow Creek. (Summer Salmon Chum Recovery plait) In addition to documenting occurrence of these priority species, the Washington Department of Fish and Wildlife Priority Species and Habitat Report indicates that Northern Spatted Owl have been identified in this township. Other species benefiting from protected water quality from this high quality habitat as it enters the estuary include a native Olympia oyster population, white sturgeon, Pacific and brook lamprey, spawning herring, surf smelt and sand lance. Puget Sound chinook salmon from other systems likely use the estuary. The forested habitat also provides habit for multiple wildlife species. Preserving a riparian corridor from the marine waters of Discovery Bay into the foothills of the Olympic Mountains is important now as species move seasonally. Its importance will increase further as fauna and `fora move in response to climate change. 22a. Describe the extent and nature of current and planned agricultural use of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. None planned b. Describe any participation by the current property owner in any other agricultural land conservation programs, including the program and nature of the involvement. None 23. Describe the use planned for the site, any development plans after acquisition, characteristics Of the site which demonstrate that it is well- suited to the proposed use, and ,plans for any structures currently on the site. No development is planned for the site after acquisition. Restoration will include some planting and restoration forestry management to enhance forest conditions. 24a. Proposed acquisition site and any subsequent planned passive development (as described above) X is _is not Part of a larger project. b. If applicable, describe how the site relates to the larger project, and whether the project has a plan, schedule and funding dedicated to its completion. Chumsortium partners have been working together since 2001 in the Salmon and Snow Creek Estuary and Creeks and have coordinated efforts to identify the parcels for acquisition. In 2005 the See, for example, :Ifww�4.dnr.wa eov /researe}isciiencel #ci icslrtaturalheritagel s eslam�nh�as h_ tt�fly NvW.wdfw wa �.vlc r�servationlphsilisU http:liyvwwl.dnr.wa. ©vinh lrefdeskcl iants.html htt :NwwW l ,dnr,wa, ovinha/ refdesklpubs lw$_ecelrrecal_systemS.pdf 8 Chumsortium partners adopted the Summer Chum Salmon Recovery Plan which is to recover and obtain delisting of the summer chum salmon populations in Hood Canal and the eastern Strait of Juan de Fuca watershed, including restoration of populations in watersheds where summer chum have been extirpated. This recovery plan adopts the overall goal presented in the Summer Chum Salmon Conservation Initiative (SCSCI). The SCSCI (WDFW and Point No Point Treaty Tribes 2000) states the goal as: 'To protect, restore and enhance the productivity, production and diversity of Hood Canal summer chum salmon and their ecosystems to provide surplus production sufficient to allow future directed and incidental harvests of summer chum salmon. ° The Summer Chum Salmon Recovery Plan seeks to maintain current population structure and distribution of summer chum and restore distribution in previously occupied areas within the species native range. In addition, the project partners worked together to create a management plan for the project area that includes restoration recommendations, public access considerations and other management considerations. Additional acquisitions are also planned for the project area in keeping with the goal of protecting and restoring important riparian and estuarine habitat. Project partners continue to pursue acquisition and restoration projects within the larger project area as opportunities arise, and local, state (SRFB) and federal funding grants are then sought. 25. Describe how the proposed acquisition benefits primarily a ^local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The proposed acquisition benefits a broad county area and Washington State priorities by protecting critical habitat for endangered salmon species of this area. 26. Describe the educational or interpretive opportunities that exist for providing public access, educational or interpretive displays (signage, !kiosks, etc.) on the proposed site, including any plans to provide those improvements and any plans for public accessibility. The L. Brown property has the potential to provide controlled passive recreational opportunities for the public, such as walking, salmon viewing and bird watching. Jefferson Land Trust conducts property tours in areas where conservation values and native habitat provide educational experience for the public. The Salmon Snow Estuary project area has been a place to inform, educate, involve, mobilize, and build strong support among citizens and communities to assist in habitat protection, restoration, and stewardship. Acquisition of this property would provide additional educational and scientific opportunities and limited recreational uses as described above. 27. The proposed acquisition includes historic or culturally significant resources' and is registered with the National Register of Historic Places, or an equivalent program. r is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site.. If affirmative in any of the above, please describe below, and cite or provide documentation of tote historical or cultural resources. N/A 28a. Describe the extent and nature of current and planned silvicultural use of the proposed acquisition. Please cite or provide documentation of existing or planned silvicultural activities including forest management plan (s). 2 Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian "Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 0 JILT will be working with Chumsortium partners to identify any forest management activities that may benefit and improve the habitat values for priority species that utilize tha property. b. Describe any participation by current property owner in silviculture conservation programs, including the program and nature of the involvement. The property is currently in the Designated Forest current use taxation with Jefferson County, though no forestry activities appear to have taken place in the recent past. 29. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that ®&M funds are expended. The Committee will use the information to develop a project "report card" that will be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which O &M funds are expended. le2 Initials hate 30. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have nut obtained the required matching funds, the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re- apply. If this application is approved for funding, I understand that we may be required to re- submit the application if the project sponsor does not obtain the necessary matching funding within three years. Initials Date 31. Are there any critical dates, e.g, grant deadlines, for your project that the Committee should know about? Please list the dates and explain their importance. The SRFB grant cycle begins in March 2012, with local project raking taking place in fall 2012 and final approval and funding awarded to successful grant applicants in December 2012. if JLT is successful we would be able to close on the acquisition in spring 2013. 10 02/24/2012 14:56 3SE39M% J€W L SCt7T7 PTT PAGE 82 Landow nor Infvnrrotbn Name of Larptimmor, L. ■rmn TnW i..ambwnst Conted lnfbrm9Wn: Bill Parka, kni EvkWApat on bsttaH of Mr. W. Title: Tfw*e FM Nerne; Dom ft Lent Mama: Hopitim Conoot NsliWW Address; ContiO E4WW Address. Mane; 31M MI-23W t q Pmvpeny Addreoa or Lorwtlon: Wom Urms Raad and MlEtt M 101 1. (Lwdowror or Orgs*Won) is the *p] Omer of property c6earaitsd kn M WSM o0owlen, 2.1 OM $were that ft pro)ed Is being p q=W an my pro p", 3. if tho gnrnt is succoso ky awardW, I will be conmcig and sokad to engap In nsgo#siftrre. 4. My WorAtcrs dow riot rep swit outhoritamn of pry Im PMMSponwrinftriinaftin r'mied fenrec L, grown sinew prods, YYwt linos Protect App OonEsat !t'tl�trtr�isorr .lef!'sr�� 4nd Trust Mr. Ms. Me Eaxaod" Wnor Finn Nanny: samb Law bite: Spoh I fling Addroes :1033 Lwamce sires!, PartTOwMSrtd, WA Est Phorse. 3804794m E-Moll Address: yolarActo 3' Td WdSZ ;PZ ?IHZ LZ 'aad 'ON 3NOHd ®it : wu&J Bill Parka Vacant Land Agent Detail Report Page 1 of 1 Listing # 324448 1977 S West Uncas Rd. Port Townsend 98388 STAT' Active LP; $125 $q0 County: Jefferson LT: BILK: CMTY: Uncas X. PRJ: West Unres TYPO: Vacant Land CDOM: 2 AR 486 TAX: 902 382 003 OLP: $125,000 MAP: 12 GRD� D.2 Internet: Yea : DD: Hwy 20 to 101 at Discovery FIN: Y Flay. South on 101About 1 Haile, south of LO: 02I25I2012 { BPA powr lines -to intersection with West XD: 12MI12012 Unoas Rd,on rlgtrt• -this is north property OMD_ lfns--HWY 101 is Eaat Ilne[12461 LAG: Bill Parka (26429) PH: � FAX: (3W 38 4/96 PH T(� 386 -4t 15 ac5$1 Type: Olifics LO-. John L. Scotupt. Townsend (972D) PH: (360) 385-4115 x551 Soc: sit$ Cmnts: C1 A PH: ZJD: County SKS: No CLO: PTO: No F17: • Provided ZNR: RR 1:5 OTRISEC: 36292 OTVP: OWN' Brown Trust GZC: Forestry, Residential OPH! (360) 379-18$9 OACl: Part Townsend,Wa. PC& Closing TX$: $27 TXY: tall SNR: No ATF. TRM: Cash Out Owner Finance TER: Possible owner contract STY: 41 - Res -Over 1 Acre VVRJ: Right of First Refusal: A,CR: 15.$00 LSR 675,180 LSZ: 1300x432x1249 tiVFG: anowOmsk DW: YWY: LDE: Corner Lot VEVV: See Remarks RD: East RDL County Right of Way, Paved IMP: FTR: Comm, Tirade Timber, Corners Flagged, Partlally Cleared, Recreational, Riding Traits TPO: Gullies, Level, Rolling SLP LVL: 1000 ft -i- Srtow Creek fr Community Features: WTR: Unknown SFA: No ESM: Access,tImber co LOCKI GAS: Not Available STD; SUR: AFN 5584321p3 ELE: In Street SDA: SST: SVA: Not Available SDI: SOD: SDX. SD: Chimacum #49 EL: 3rd Party ApM Req: None JH: SH: BanktREO Owned YIN: No Agent Only Remarks some wetlands- -plenty of space for dwelling and barnlsh©p Marketing Remarks: "A River Runs Thru lr -15.5 ac. parcel located on West ekte of HWY 101 st imersaction of Waat Unaas Rd.. Lots of large trees– Pourer an West Uncas and Hwy 101- needs well and 9eptic- 10011ft +i- of SNOW Cali frontape-Beautlful nature lavers paradise. Emig NO Tax IrrfomUdion Available WormaWn Deemed Reliable &A Cannot as Guaranteed. Lot Sites and Square Footage Are E®timatas. 02127/2012 - 12'36PM - L:. -tub I t r --- � �-- - - L. Brown Trust Snow Creek Property CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2012 Fend of Snow Greek Logjam on Snow Creek Salmon rearing Snow Creek Old growth remnants, evidence of logging Northwest property corner - looking SE nxiTERNAL REVENUE SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE-' mON mzEY PARK. CA 91755 -`7405 Date: MAY 0 3 1994 JEFFERSON LAND TRUST C/O DOUG MASON PRES PO BOX 1510 PORT TOWNSEND, WA 98368-0109 Dear Applicant: DEPARTMENT OF TUE TREASURY Employer Identification XUmber: 91- 1465078 Case Number: 954109002 Contact Person: TYRONE THOMAS Contact Telephone Number: (213) 894 -2289 Our Letter Dated: May 08, 1990 Addendum Applies: No This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) {3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization, of the type described in section 509(&) (1) and 170(h) (1) (A) (vi.) Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. however, if you .lose your section 509(a)(1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this Letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. ' If you have any questions, please contact the person whose name and telephone number are shown above_ Sincerely yours, too �- F*4 Richard R. crosco District Director Letter 10543 (no /CG) Jefferson Land Trust P.O. Box 1610 Part Townsend, Washington 98368 Internal Revenue Service Service Center AM: F=tity 1 Odgen, [TT 842DI RE Name change EIN 91- 1465078 Dear Sir or Madam: By resolution -of the Board of Directors on November 13, 1991, the Jefferson County Land Trust changed its name to Jefferson Land Trust. This is a nine change only. Please change our name in your records regarding our EIN and our 501(c)(3) status. Thank you. Jefferson Land Trust by: JulianneMcCulloch Secretary ' Internal Revenue Service District Director P 0 BOX 2350.ROOM 5127 ATTNz E.G. LOS ANGEI_E5, CA 900532350 Dates MAY 8, 1990 JEFFERSON .COUNTY LAND TRUST 1322 WASHINGTON PO BUX 1610 PORT - TOWNSENT, WA 98368 Dear Applicant: Department of the Treasury Employer Identification mumbet•s 91-1465078 Case Number: 95ii114114 . Contact: Person: JOSEPH CUNHA Contact Telephone Number: (213) 894 -4170 Accounting Period Ending: December 31 Foundation Status Classification: see attached Advance Ruling Period Begins: April 7, 1990 Advance Ruling Period Ends: Dec. 31, 1993 Addendum Applies: none Based on information supp l i ed, and assuming yotir. oparat i orrs si i I I be as stated in your application for recognition of exemption, aae have determined you are exempt from Federal income tax under section 503(x) of the Internal Revenue Code as an organization described in section 501(c)(3). Because you are a newly created organization, we are not now asking a final determination of your foundation.status under section 509(a) of the Cade. However, we have determined that you can reasonably he expected to be a public- ly supported organization described in sections 509(x) (1) and- 170(b) (1) (A) (vi). Accordingly, you will be treated as a publicly supported organization, and not as a private foundation, during an advance ruling period. This advance ruling period begins and ends on the dates shown above. Within 90 days after the and of your advance ruling period, yott reuse submit to us information needed to determine Whether you have net the require- ments of the applicable support test during the advance ruling period. If yryts establish that you have been a publicly supported organization, you will be classified as a sect: ions 509 (a) (1) or 509 (a) (2) organ ir.at ion as long as you con- tinue to meet the requirements of the applicable support test. If you do not meet the public support requirements during the advance ruling period, you will be classified as a private foundation for future periods. Also, if you are classified as a private foundation, you will be treated as a Arivato foundation from the date of your inception for purposes of sections 507(4) and 4940, Grantors and contributors may rely on the determination that you are not a private foundation until 90 days after the end of your advance Vuling period. If you submit the required information within the 90 days, grantors and contri- butors may continue to rely on the advance determination until the Service Letter 1015 (CG) _2- JEFFERSEIN . COUHTY LAND TRUST makes a final determination of your foundation status. If notice that you will no longer be treated as a publicly supported or- ganization is published in the Internal Revenue Bulletin, grantors and con- tributors may not rely on this determination after the data of such publica- tion. In addition, if you lase your status as a publicly supported organ iza -- tion and a grantor or contributor was responsible: for, or was ariare of, the act or failure to act, that resulted in your loss of such status, that person may not rely can this determination from the date of the act or failure to act. Also, if a grantor or contributor learned that the Service had given notice that you would be removed from classification as a publicly supported organiza- tion, then that person may not rely on this determminaLion as of the date such knowledge;was.acquired.. Ef your sources of support, or your purposes, character, or method of operation change, please let us know so we.can consider the effect of the change on your exempt status and foundation status. in the case: of an amend- ment to.your organizational document or bylaws, please send us a copy.of the amended document or bylaws. Also, you should inform us of ail changes in your name or address. As of January 1, 19$4, you are liable for taxes under the Federal Insur• ance Contributions Act (social security taxes) on remuneration of $1.00 or more you pay to each of your employees during a calendar year. You are not liable for the t3K.imposad under the Federal Unemployment Tar Act (FUTIO. organizations that are not private foundations are not subject to the pri- vate foundation excise taxes under Chapter 42 of the Code. Homover, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know. Donors may deduct contributions to you as provided in section If0 of the Code. Bequests, legacies, devises, transfers, or 5;ifLs to you or for your use are deductible for Federal estates and gift tax.purl;)os:cs if they meet the appli- cable - provisions of sections 2455, 2106, and 2522 of the Code. Contribution deductions are allawable to donors only to the extent that their contributions are gifts, with no consideration received. Ticket pur- chases and similar payments in conjunction with fundraising events may not szecessar i l y qua I i f y as deduct b l e contr i but i ons, depend i ng on the c i rcum- stances. See Revenue Ruling 67 -246, published in Curotslative Bulletin 1967 -2, on page 104, which sets forth guidelines regarding the deductibility, as chari- table contributions, of payments rude by tampayars For admission to or other participation in fundraising activities for charity. You are required to file Forth 990, Return of Organixatioa Exempt From Income Tax, only if your gross receipts each year are normally more than #25,000.- l{owever, if you receive a- Form 990 package in tho mail,. please file the raturn even if you do not exceed the gross receipts test. If you are not Letter 104S(CG) -3- JEFFERSUN -f COUNTY LAND TRUST required to file, simply attach the label provided, check the box in the head- ing to indicate that your annual gross receipts are normally $25,000 or less, and sign the return. If s return is required, it crust be filed by the 15th day of the fifth month after the end of your annual accounting period. A penalty of $10 a day is charged when a return is filed late, unless there is reasonable cause for the delay. however, the maximum penalty charged cannot exceed $5,000 or 5 par-- cant of your gross receipts for the year, mhichesrer is less. This penalty may also be charged if a return is not complete, so please be sure your return i% complete before you 'file it. You are not required to file Federal income tax -returns unless you are subject to the tax on unrelated business income.under section 571 of the Code. If you are subject to this tax, you must file an income tax return on form 990 -T, Exempt [Organization Business Income Tax Return. In this letter we are not determining whether any of your present or proposed activities are unre- lated trade or business as defined in section 513-of the Cods. Vou need an employer identification number ewers if YOU have no employees. Tf an employer identification number was riot entered on your application, a number will be assigned to you and you will be advised of it. Please use that - number on all returns you file and in all correspondence Mith the Internal Revenue Service. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because- this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records. If you have any questions, please contact the person r-rhose name and telephone number are shown in the heading of this latter. Enclosures] Form 872 -C incerely yours, a Michael J. Ou i nn District Director Letter 104S(CG) _4_ JEFFERSON COUNTY LANK TRUST FOUNDATION STATUS! 170(b) (1) (A) [vii and 509 (a) I1) Letter 1045(CG) F. 872,-0 (Rev. MaMh IsM 17epseima lu laf the ie ry...laeterr�al Rye Consent Fixing Period of Limitation Upon ° �m'� ins. Assessment of Tax Under Section 4S40'of the Internal Revenue Code iab8u;adWithF'orm (See Form 1023 Inatructlome for Part Iv. line 3.) 1023. Submit in duplicate. Under-section 6501(c)(4) of the Internal Revenue Code, and as part of a request filed with Form I023 that the organization named below ru treated as a publicly supported organization under section 170(b)(1)(gxvl) or section 509(a�2) during art advance ruling period, „e JEFFERSON COUNTY LAND TRUST -- °° --• - -... - -(Exactlegenameoroq; motion. .. ..................... - p_0; - °BDX 1b10, PART TaWNSEND W andthe District Director -- .. - OX . A 98368 of Intemal Revenue {Number. street cltycrr town, state. and ZIP code) .. ` ... .... _ .. Consent and agree that the period for assessing tax (IM Posed under section 4940 of the Code) for any of the 5 tax years in the advance ruling period will extend $ years, 4 months, and It days beyond the end of the first tax year. However. if a notice of deficiency. In tax for any of these years is sent to the organization before the period expires, then the time for making an assessment will be further extended by the number of days the assessment i5 prohibited. plus 60 days. Endingdateof first taxyear „_12/31/8 .... .. . . .... .... nmAnir tinn JEFFERSON'COUNTY LAND TRUST 41I106f ortrmtee Signature ► District Director By 11. having auahcrity nanc;yl-Ncott Koth 2/6/90 MICHAEL j QUINT Date rof riPGrwDIR KBOUCtfOn Aet Flofte, see page 1 of the Farm 1023Ins3ru010ns. RAY 4 GROUP MANAGER, E a ati 4r.7 d d c F b c O CV V. 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[ry a 1° m�� 'Q �' e. e.= 7 a °" c a oo p r t® e® to U p m mp x q IL c m 4. K 7L c :8 lA 4 C w. vw, s e sam E£ E e c z s c m m a tie e e a. a to E p C n tl7 80 �b o a -1 m e G. D -• r' iy s cad�WOi9 c �i 4- 411 °t Q F y Am 0.�Cm'm Is I�. o i+ . 9 ri. a w µ r (A 6 4 ® v o M e�s eA r ri n n ,4 w d J VI i a o:a 1S p nNNI��F n w v pQ ..Mi8' pj. m a`i'4 �i •b b lam S m 4p qD II p O' V a- m 111' a R4C R 6 � p X11 O b - C b Or 0 R Cp j, ro 0 d x +a m FA x Q W c Q - O c� >c w�5.L as w e O u 7 V ¢Lm E.Y a� = c p r lo. �cl w G Gm c = li 0. [ry a 1° m�� 'Q �' e. e.= 7 a °" c a oo p r t® e® to U p m mp x q IL c m 4. K 7L c :8 lA 4 C w. vw, s e sam E£ E e c z s c m m a tie e e a. a to E p C n tl7 80 �b o a -1 m e G. D -• r' iy s cad�WOi9 c �i 4- 411 °t Q F y Am 0.�Cm'm Is I�. o i+ . 9 ri. a w µ r (A 6 4 ® v o M e�s eA r ri n n ,4 w d J VI i a o:a 1S p nNNI��F n w v pQ ..Mi8' pj. m a`i'4 �i •b b lam S m 4p qD II p O' V a- m 111' a R4C R 6 1 --4. .Vi, 0 CD -4 0 9 c W gat ki g. CL kk hCP III I 02, O gb W O ro O `per 4p 49 g 4 1 02, O gb W O ro O SRI 0 C) c ■ t I t. tl 04 0 k/( , .. \k /� � a 0 0,0 §§ #2 z 0 7w ,.r 'Tt�;��,- 1 AND F T U.ST Jefferson Land Trust 2012 Beard of Directors Steve Moore, President David Reid, Vice President Rodger Schmitt, Vice President Joanne Tyler, Treasurer Kathryn Lamka, Secretary Bethany Axtman Glenda Hultman Gary Keister Suzanne Learned Bill Meyer N N P C3.. -r rw ' "' •" Val/Qlw?Vrr M.i�111:a r r Yiil 02JI5112 Accrual Basis Proftt & Loss January through D? cember 2011 Ordinary Income/Expense Income 4000 . Unmstrlctec! US Income 4500 • Restricted US Income 4800 • Endowment 50a0 •Operations Income Total Income Cast of Goads Sold 5100 • Program Expenses 6200 • Land and Stewardship Expenses 6300 • Pra53sslonal services Total COGS Crass Proft Expense 7000 Operations Expense Total Expense Not Orchnary Income Net Income Jan - Dec 11 249,004.39 251,470,08 10,769.60 457,510.58 968,354.65 33,824.47 240,876.93 157.715.79 432,417,19 535,937.46 411.736.98 411,736.96 124,200.4$ 124,200.48 . . a..... ... , u. 1. .. ,r.,....,»... .....--- ..,l.+ Page 1 of 1 JEFFERSONLAND TRUST AND SUBSIDIARY Consoddated Financial Statements For the Year Ended December 31, 2010 Table of Contents Page Independent Auditors' Repart 1 Consolidated Financial Statements: Consolidated Statement of Financial Position 2 Consolidated Statement of Activities 3 Consolidated Statement of Cash Flows 4 Notes to Consolidated Financial Statements 14 Supplementary Information: Consolidated Statement of Functional Expenses 15 Independent Auditors' Report Board of Directors Jefferson Land Trust and Subsidiary Port Townsend, Washington Certlfied Public We have audited the accompanying consolidated statement of financial position of Jefferson Land Accountants Trust and Subsidiary (collectively, JLT, a nonprofit organization) as of December 31, 2010, and the ar,d consultants related consolidated statements of activities and cash flows for the year then ended. These financial statements are the responsibility of JLT's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of JLT as of December 31, 2010, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States oFAmerica. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The consolidated statement of functional expenses on page 15 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Certified Public Accountants May 17, 2011 JEFFERSON LAND T USTAND SUBSIDL4 RY Consolidated Statement of Financial Posidon December 3l, 2010 Assets: Cash and equivalents Investments (dote 2) Accounts receivable Pledges receivable (Nate 3) Note receivable (Note 4) Prepaid expenses Land, conservation easements, and purchase options- Habitat land Working land Open space land Corts+ervation easements Land held for sale Land purchase option Totat land, conservation easements. and purchase options (Note 5) Furniture and equipment, net of depreciation of $10,897 Total Assets Liabilities and Net / rsets: Accounts payable Accrued expenses and deferred revenue Purchase option received Long -term debt (Mote 6) Total Liabilities Net Assets: Unrestricted (Note 9)- Undeslgnated Board designated Total unrestricted net assets Temporarily restricted (Note 10) Permanently restricted (Note 11) Total Net Assets Total Liabilities and Net Assets See accompanying notes. -2- 360,332 312,047 76,292 499,028 85,064 .2,347 546,491 25,048 176,094 44 933,760 52,500 1,733,937 6,123 5 3,075,180 $ 34,727 48,338 120,000 657,024 860,089 ( 130,320) 1,561,437 1 ,431,117 763,728 20,226 __?,215,071 $ 3,075,160 JEFFERSONLANZ) TRUSTAND SUBSIDL4RY Consolidated Statement ofActivida For the year Ended December 31, 2014 Temporarily Unrestricted Restricted Permanently Restricted Total Revenue and Gains: Gifts and contributions $ 71,077 $ 273,004 $ 10,000 $ 354;081 Fair value of easement acquisitions 166,000 165,000 Grants and contracts 351,533 351,933 Special events income, net of expenses of $14,78$ 113,877 113,877 Net gain on investments 34,374 226 30,600 Rental income 23,580 23,580 Other 3,016 3,01$ Release from restriction 242,390 242,390 Total Revenue and Gains 1,002,247 30,614 10,226 1,043,087 Expenses: Program 723,947 723.847 General and administrative 79,286 79,286 Fundraising 77,737 77,737 Total Expenses 884,970 880,970 Change in Not Assets 121,277 30,614 90,226 162„117 nning of year net assets 1,309,840 733,114 10,000 2,052,954 End of Year Fret Assets 5 9,431,117 $ 783,728 S 20,226 $2,215,071 See acco►lrpagvirw notes. .3_ JEFFERSON LAND TR UST AND SUBSIDIARY Consolidated Statement of Cash Flows For the Year Ended December 31, 2010 Cash Flows from Operating Activities: Change in net assets Adjustments to reconcile change in net assets to net rash provided by Lperating activities- Depreciation and amortization Imputed interest expense Realized and unrealized gain on investments Changes in assets and liabilities: Accounts receivable Pledges receivable Prepaid expenses Accounts payable Accrued expenses and deferred revenue Net Cast Provided by Operating Activities Cash Flows from investing Activities: Purchases of investments Proceeds from sale of investments Purchases of fan and land purchase option Purchases of furniture and equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities: Payments on long -term debt Net Cash Used by Financing Activities Net Change in Cash and Cash Equivalents Cash balance, beginning of year Cash Balance, End of Year Supplemental Disclosure of Cash Flow Information: Gash ;paid for interest See accom;x a ving notes. -4- $ 162,117 1,339 (36,000) {'36,930) 22,746 (37,211) 2,683 20,475 2.574 121,793 (181,925) 221,887 (208,291) 3,243 (171,572) I s,z2sy (55,008) JEFFERSON LAND T'R UST AND SUBSIDIARY Notes to Consolidated Financial Statements Note I - organization and Summary of Significant A ecounting Policies organization - Jefferson Land Trust (the Land Trust) is a Washington nonprofit corporation, formed on April 7, 19$9_ The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington. The Land Trust has been accredited by the national Land Trust Alliance as of August 5, 2099. On september 5, 2407, JLT Resources, LLG was formed with Jefferson Land Trust as its only member. JLT Resources, LLG was formed for the purpose of purchasing and holding land for conservation purposes. Summary of Significant Accounting iPollcles: principles of Consolidatlon - These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLG (collectively, 'JLT'). inter- organization balances and transactions have been eliminated in consolidation- Basis of Accounting - The consolidated financial statements of JLT have been prepared on the accrual basis of accounting- Basis of Presentation -Piet assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor - imposed restrictions. Accordingly, the net assets of JLT and changes therein are classified and reported as follows: _Unrestricted Net Assets - Include all net assets on which there are no donor - unposed restrictions for use, or on which donor- imposed restrictions were temporary and have expired. Temporarily Restricted Piet Assets - Include all net assets subject to donor- imposed restrictions that will be met either by actions of JLT or the passage of tune. Permanently Restricted Net Assets - Include all net assets received by donations wherein the donors impose a permanent restriction on the use of the gift. The donors require the gift to be invested and only the income from such investments may be used to support the intended cause- All donor - restricted support is reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restriction. When restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from rest. iction. Gifts of equipment are reported as unrestricted support unless explicit donor stipulations specify how the donated assets must be used, Gifts of long -lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long -lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long - lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long -lived assets are placed in service. -5- JEF'FERS®NLAND T.RUSTAND SUBSIDIARY Notes to Consolidated Financial Statements NOW 1 - Continued Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates - Cash and Equivalents. - For reporting purposes, JILT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash equivalents - Concentrations - JILT maintains its cash in bank deposit accounts with two financial institutions. JLT's cash balances may, at times, exceed federally insured limits, One donor's pledge represented approximately 25% of pledges receivable at December 34, 2010 Investments - Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the consolidated statement of financial position. The carrying amount of the investment held in trust is determined by the trustee holding the securities. Unrealized gains and losses are included in the change in net assets. JILT has established a designated fund at Jefferson County Community Foundation- As JLT has designated itself as the beneficiary of the fund, the fund balance and activity are reported in the consolidated financial statements of JILT as required by GAAP- Accounts Receivable - Accounts receivable are stated at the amount management expects to collect from outstanding balances- Management provides for probable uncollectible amounts through a charge to eamings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Changes in the valuation have not been material to the consolidated financial statements. Grants and Contracts - JILT receives grants and contracts from federal, state, and local agencies, as well as from private organizations, to be used for specific programs or land purchases. The excess of grants receivable over reimbursable expenditures to -date is recorded as deferred revenue. Furniture and Equipment - Furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference, less any amount realized from disposition, is reflected in earnings. Maintenance and repairs are charged to expenses as incurred. Costs of significant improvements are capitalized. JILT provides for depreciation using the straight -line method over the estimated useful lives of the assets of five to ten years. -6- IEF FFRSON LAND TRUST AND SUBSIDIARY ,Notes to Consolidated Financial Statements Note I - Continued Land and Easements - JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value, with fair values generally based on independent professional appraisals. These assets fall into four primary categories: Conservation Lands - Real property with significant ecological value for habitat, open space, or working lands - .Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council - Certified, managed forest. Conservation E cements - Voluntary legal agreements between a landowner and a land trust or government agency to permanently protect the identified natural features and conservation values of the property_ These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction In net assets to record the value of the public's benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes.' Two easements valued at $166,000 total were donated to JLT during the year ender! December 31, 2610. Accordingly, $165,00tl of contribution revenue and $165,998 of related write down expense have been reported on the consolidated statement of activities for the year ended December 31, 2010. Land Held _for Me - Two properties owned by JLT, Red Dog Farm and Tamanowas Rock Sanctuary, will be sold in the near future under prearranged agreements with each potential owner. Red Dog Farm will be purchased by the current lessee after JLT finalizes and records a conservation easement with the new owner. This conservation easement ensures Red Dog Farm will continue to operate as a working farm and will. protect critical habitat for salmon and other wildlife in perpetuity- Tarranowas Rock Sanctuary was purchased by JLT with the help of the Jamestown 5'Klallam Tribe and a low interest loan from the Bullitt Foundation (Note 6). The Jamestown S'Klallam .Tribe purchased an option an the property which will be exercised in late 2011. The intention of the tribe is to protect the property in perpetuity for both habitat and cultural purposes. Tamanowas Rock Sanctuary has a long history of cultural ties to the Jamestown 5XIallarn Tribe. Land purchase o tian - JLT has $52,500 invested in purchase options for Chimacurn Dairy, a historic dairy farm in the Chimacum Valley. These options will be exercised in mid -2011 when a group of conservation investors plan to buy the farm, reimburse JLT for the purchase option amount, and enter into a long term lease with a local creamery in Jefferson County- JLT already holds a conservation easement on the property for working farm and habitat purposes. JEFFERSON LAND TRUST AND SUBSLDIAR F Notes to Consolidated Financial Statements Note I - Continued Purchase Option Received - In 2009, JILT purchased the Tamanowas Rock Sanctuary with the help of the Jamestown S'Klallam Tribe and a low interest loan from the Bullitt Foundation (Note 6). The Jarnestcwn S'Klallam Tribe paid 5120,000 to JLT for an option to purchase the property which will be exercised in late 2011. At that time, JLT will pay in full the outstanding balance on the Bullitt Foundation loan with proceeds from the sale of the Property to the Jamestown S'Klallam Tribe and other potential conservation partners. The intention of the tribe and JLT is to protect the property in perpetuity for bath habitat and cultural purposes Federal Income Taxes - The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3). ConLibutions to JLT are deductible as allowed under Section 170(b)(1)(A)(vi) of the Code. Functional Allocation of Expenses -The costs of providing the various programs and other activities have been summarized on a functional basis in the consolidated statement of activities_ _ Accordingly, certain costs have been allocated among the programs and supporting services benefited. Subsequent Events - JLT has evaluated subsequent events through May 17, 2011, the date on which the consolidated financial statements were available to be issued. Note 2 - Fair Value Measurements GAAP defines fair value, establishes a framework for measuring fair valve and requires disclosures about fair value measurements. To increase consistency and comparability in fair value measurements, GAAP uses a fair value hierarchy that prioritizes the inputs to valuation approaches into three broad levels. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation Techniques - Financial assets and liabilities valued using Level 1 inputs are based on unadjusted quoted market prices within active markets. Financial assets and liabilities valued using Level 2 inputs are based primarily on quoted prices for similar assets or liabilities in active or inactive markets. Financial assets and liabilities using Level 3 inputs were primarily valued using management's assumptions about the assumptions Market participants would utilize in pricing the asset or liability. Valuation techniques utilized to determine fair value are consistently applied. Following is a descriptirn of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2010. Certificates ref De osit - Valued at cost plus accrued interest„ which approximates fair value. Mutual Funds - Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by JLT at year-end- Funds field at Jefferson Courtv Community Foundation - Valued using the NAV provided by the fund's manager. The NAV is based on the fair value of the underlying assets owned by the fund. These underlying assets are traded in active public markets with observable market data. -8- I JEFFERSUN,[AND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements Note 2 - Continued Fair Values Measured on a Recurring Basis - Fair values of investments measured on a recurring basis at December 31, were as follows: Interest income Realizedlunreaiized gain Investment fees -9- 2010 $ 17,188 18,930 (3.518), � �ta_804 Fair Value Measurements at December 31 2010 Quoted Prices Significant In Active Other Significant Markets for Observable Unobservable Idenrical Assets Inputs Inputs (ievellj_ Level2 __,^ rLevel3l Total Certificates of deposit $ $ 150,879 $ - $ 150,878 Mutual funds Fixed income 35,791 35,791 Funds hold at Jefferson County Community Foundation 36;737_ $ 9517.8�;t _ 125,3577 125.377 925,377 _�12�Q47 A reconciliation of the beginning and ending balances for fair value measurements made using significant unobservable inputs (Level 3) follows: Beginning balance at January 1, 2010 $ 175,078 Interest income Total gains (real izedlunrealized) 2,464 16,820 Fees paid (3,518) VOhdrawal s (65,467) Ending Balance at December 31, 2010 investment return for the year ended December 31 consisted of the following: Interest income Realizedlunreaiized gain Investment fees -9- 2010 $ 17,188 18,930 (3.518), � �ta_804 JEFFERSON LAND TRUSTA.ND SUBSIDL4RY Notes to Consolidated Financial Staternents Note 3 - Pledges Receivable Pledges receivable at December 31, 2010 are to be received as follows: Less than one year Two to five years Thereafter $ 154,930 287,210 X88 A present value discount on pledges receivable has been determined to not be matedaf to the consolidated financial statements. No allowance for doubtful accounts was deemed necessary by management for the Promises to give based on historic experience_ ,'Vote 4 - Note Receivable On February 15, 2008, AT granted a loan to an individual in relation to one of the pieces of conservation land owned by JILT. JLT received a promissory note in exchange. The promissory note is for the amount of $93,750 and is to be paid in monthly installments of 5618.71. The note matures on January 15 2028 with an annual interest rate of 5 %. The balance of $85,054 at December 31, 2010 is included in accounts receivable in the consolidated statement of financial position. The note receivable at December 31, 2010 is to be received as follows: Less than one year Two to five years Thereafter $ 3,239 14,702 57113 � Note S - Land, Conservation Easements, and Purchase Options Land, conservation easements, and purchase Options at December 31, 2010 are summarized as €allows: Conservation lands - Quimper Wildlife Corridor Duckabush Oxbow Chimacum Creek? Brown Dairy Bulis Forest Preserve Kilham Corn,,-:r Snow Creek Estuary Conservation easements Land purchase option Land held for sale - Red Dog Farm Tamanowas Rack Sanctuary -10- $ 261,803 180',000 140,160 125,240 38,930 1,500 44 52,500 333,760 600, ODi] .TEFFFERSoN LAND TRUST AND SUBS'IDL4RY Notes to Consolidated Financial S'tafements Note 6 - Long- -term Debt On December 18, 2007• JILT entered into a loan agreement with a commercial fender ir. the amount of $226,110. The loan nears interest at 8.59, and is due in 60 monthly payments of principal and interest totaling $1,965, and a final principal payment of $200,809 on January 10, 2013. The loan is secured by the Red Dog Farm property and an Assignment of Rents from the lease described in Dote 8. The outstanding amount due at December 31, 2010 was $213,1324. On December 23, 2009, JLT entered into a promissory note in the face amount of $480,000 with a Washington nonprofit corporation to purchase the Tamanowas Rock Sanctuary property. The note is secured by the property. The note has a stated interest rate of 1 % and has a maturity date of December 31, 2011 _ When the loan proceeds were advanced, JLT recorded contribution revenue and a loan discount using an imputed interest rate of 8.5%. The discount on the loan is being amortized to interest expense over the life of the loan. Imputed interest expense of $36,000 was reported in the accompanying consolidated statement of activities for the year ended Dec,ember 31, 2010, The outstanding amount due at December 31, 2010 was 5444,000. Principal payments on the loans are as follows. Years Ending December 31, 2011 2012 2013 Note 7 - Retirement .Plan $ 449,997 6,218 200M9 In 2010, JLT began a Simplified Employee Pension - Individual Retirement Accounts Contribution Benefit Plan ('the Plan')- Eligible employees may join the Plan after one year of service. The total employer contribution for 2010 was $4.934, and is included in employee benefits on the consolidated statement of functional expenses. Note 8 - Lease Agreements On July 2, 2048, JILT entered into an operating lease as lessee for its administrative. office in Port Townsend, Washington. The lease expired in June 2010 and continues on a month to month basis. Rent expense totaled $17,358 for the year ended December 31. 2010. On December 20, 2007, JILT Resources, LLC entered into a lease agreement as lessor for the Red Dog Farm property. The lease term is five years, and monthly lease payments are $1,965. The lease requires the lessee to pay all taxes and assessments relating to the property. The lease also requires the lessee to comply with a land use plan, and provides a purchase option to the lessee during the lease term. -i1- JEFFERSON LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements Note 8 - Continued Sublease rentals to be received are as follows: Years Ending December 31, 2011 $ 23,472 2012 23 472 14f# Note 4 - Unrestricted Net Assets Unrestricted net assets consisted of the following at December 31, 2 010: Designated - Tamanowas Rook Sanctuary $ 480,000 Designated - Red Dag Farm 333,750 Designated - Quim per Wildlife Corridor 261,803 Designated - D-ickabush Oxbow Designated - Chimacum Creek / Braun Dairy 180,000 Designated - Bulis Forest Preserve 140,160 Designated - Kilham Comer 125,240 Designated - Snow Creek Estuary 38,230 Conservation easements 1,500 X44 Total designated Undesignated 1,561;437 — 1130, 320 L=l, 1i7 Note 10 - TeMPorariiy Restricted Net Assets Temporarily restricted net assets consisted of the fallowing at December 31, 2010: Purpose restriction- To purchase Gateway land $ 99,525 For stewardship of Butis Forest Preserve 83,984 For stewardship of Chimacum Creek 1 Brown Dairy 41,850 For stewardship and management services for Tam anowas Rock 36,341 Strategic plan 3,000 Time restriction- 254,700 Outstanding pledges 4998 Net assets of $80,421 were released from donor restrictions ' by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of $161,969 were released due to the expiration of time restrictions for the year ender! December 31, 2010. -12 JEFFERSON LAND TRUST ANP ,SUBSIDIARY Notes to Consolidated Financial Statements Note 11- Permanently Restricted Net Assets At December 31, 2010 JLT had $20,226 of permanently restricted net assets. This is comprised of endowment investments Tote 12), the income of which is available to support general operations. Note 12 -Endowments The JLT endowment consists of one fund established to support general operations. As required by GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donor - imposed restrictions. Interpretation of Relevant Law - JL.T`s Board of Directors has interpreted the Washington State Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair Value of the original gift as of the gift date of the donor- restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, .AT classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor - restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by AT in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, JLT considers the following factors in making a determination to appropriate or accumulate donor - restricted endowment funds: - The duration and preservation of the fund - The purposes of JLT and the donor - restricted endowment fund - General economic conditions - The possible effect of inflation and deflation The expected total return from income and the appreciation of investments other resources of JLT The investment policies of JLT. As of December 31, 2010, endowment net assets consisted of the following: Donor - restricted endowment funds Temporarily Permanently Unrestricted Restricted Restricted Total 1j- - $ - $ 20.228 $ 20,226 JEFFERSON LAND TRUST AND SUBSIDIARY Nodes to Consolidated Financial Statements Note 12 - Continued Changes to endowment net assets for the year ended December 31 2010, are as follows; Permanewly Restricted Endowment net assets. January 1, 2010 $ to,oao Interest and dividends Realized and unrealized gains/losses 194 Total endowment investment return _ 32 228 Contributions �0ti0 Endowment Not Assets, December 31, 2010 Funds with Deficiencies - From time to time, the fair value of assets associated with individual donor restricted endowment funds may fall below the level that the donor or UPMIFA requires JLT to retain as a fund of perpetual duration. In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets, There were no such.deficiencies as of December 31, 2010_ Return Objectives and Risk Parameters - JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor - restricted funds that JLT must hold in perpetuity or for donor- sPecified periods as well as board - designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investmen4 objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing Power over tune. Strategies Employed for Achieving Objectives - To satisfy its long -term rate -of- return objectives, JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond fundslE'TF's, equity mutual funds, equity ETF's, and unconstrained Bond Funds. Spending Policy and Flow the Investment Objectives Relate to the Spending policy - JLT's spending intends that no distributions may be made from the Operations Endowment Fund for the first fiiveeyears policy of its existence or until it reaches a threshold balance of $400,000, whichever shall first occur. After a five -year period or after achieving the $400,000 threshold, distributions shall be made on an annual basis as determined by the Board. Regular disbursements should be limited to a maximum of 5% of the value of the portfollo at the beginning of each fiscal year, or one -half of the income generated by the fund for the most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the invasion donated. of the original amounts -14- jEFFER SON :LAND TRUSTAND SUBSIDIARY Consolidated Stratement of Functional F- xpeuses For the Year Ended December 31, 2010 General and Total Pro um Administrative Fundraising- Expenses Salaries $ 165,528 $ 39,912 $ 33,752 $ 239,192 Payroll taxes 17,075 4,207 3,465 24,747 Employee benefits 26,932 6,636 5,465 39,033 Total salaries, taxes and benefits expense 209,535 50,755 42,e82 302,972 Professional fees 144,717 2,907 22,276 169,900 Value of conservation easements written dawn 165,998 165,998 Land and stewardship expenses 95,449 95,449 interest 59,151 59,151 Other expenses 2,412 19,866 146 22,426 Rent 12,868 2,951 3,030 18,849 Postage and printing 9,021 405 3,189 12,€15 Travel and seminars 7.495 27 274 7,796 Public awareness 4,309 62 2,849 7,220 office supplies 2,436 449 1,102 3,987 Insurance 2,600 445 367 3,412 Dues and subscriptions 3,129 165 3,294 Telephone 2,022 498 410 2,930 Web design and maintenance 848 848 1,696 Utilities 1,033 254 210 1,497 Depreciation 924 228 187 1,339 Bank fees 439 439 Total Expenses $ 723,947 $ 79,286 $ 77,737_ $ 880,970 See independent rauditors'report. _ i5 _ Jefferson Land Trust RESOLUTION February 21, 2012 Wl IEREAS, Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures Funding application, and Conservation Futures Funding Application process requires that Jefferson Land Trust prioritize its projects, and WHEREAS, Jefferson Land Trust has been working since 2006 in partnership with Jefferson LandWorks Collaborative whose mission is to keep the farms and forests of Jefferson County, Washington, working, productive and profitable, and WHEREAS, the historic Boultan Farm is indicated as priority agricultural and habitat land in several local and regional plans, and the landowner is eager to complete the project, AND WHEREAS, 144 acres of prime agricultural land on the Boultoh Farm, will be protected for prime agricultural soils, riparian habitat of Andrews Creek and some associated forestland on the agriculturally zoned acreage by an agricultural conservation easement, and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, AND WHEREAS, Jefferson Land Trust has been working since 7001 in partnership with Jefferson County Conservation District, Jefferson County, Washington Department of Fish and Wildlife, North Olympic Salmon Coalition, the Hood Canal Coordinating Council, the Jamestown S'Klallam Tribe and WSU Cooperative Extension to acquire and restore crifcal salmon spawning, rearing and migratory habitat in the Salmon/Snow Creek riparian area and estuary' and WHEREAS, these professional naturalists and scientists have recommended that Snow Creek habitat protection be expanded to provide further benefits for migrating salrnonids and other species, and WHEREAS, acquisition of high - priority identified parcels in the Snow Creek Estuary are a from willing sellers would provide such habitat protection, the L. Brown Trust parcel has been identified as such, AND WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, according to the Salmon and Snow Creek Fish and Wildlife Management Plan, AND WHEREAS, Jefferson Land Trust has been working since 2004 in partnership with Northwest Watershed Institute to acquire and restore critical forested watershed, riparia x, estuarine and nearshore habitat in the Tarboo Creek/Dabob Bay watershed area, and WHEREAS, a conservation easement on the 80 -acre Tarboo Forest property would protect in perpetuity critical forested watershed habitat from subdivision and development, and will leverage conservation of an additional 160 acres of adjacent forestland, AND WHEREAS, Northwest Watershed Institute has requested that Jefferson Land Trust sponsor their Conservation Futures Funding application for an acquisition of a conservation easement to be held by Jefferson Land Trust, BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its February 21, 2012 Board of Directors meeting to sponsor an application for Conservation Futures Funding for acquisition of a conservation easement on the Boulton Farm, and agreed that The Boulton Farm protection is the highest priority for 2012 Conservation Futures Funding due to the landowner age, project duration and agricultural conservation and economic values. The next highest priority is funding for the Snow Creek project because it would provide a vital connectivity to the Snow Creek project area, is currently listed for sale, and it represents a collaborative effort with community members and our Chumsortium partner organizations as they work to preserve this significant salmon habitat. The third highest priority is funding the Tarboo Forest property to support our project partner Northwest Watershed institute in preserving critical watershed and riparian habitat in the Tarboo Creek area. Signed this 21 th day of February, 2012. Steve Moore, re dent, Board of Directors Jefferson Land Trust N88098881 effffieff JEFFER€ON. KrrsAP & MAsoN Coil N-n es; PoWT GAMBLE S'KLAL.LAM & SkcgomnH TIMMS; STATE & FEDERAL Armwe Es, February 28 "', 2012 Conservation Futures Committee Via email To whom it may concern, I am writing in support of the Jefferson Land Trust proposal to purchase the L. Brown trust parcel located on Snow Creek. This parcel contains 1400' of Snow Creek that is home to two federally - listed salmonid species., Hood Canal Summer Chum Salmon and Puget Sound Steelhead Trout, as we as coho salmon. The Hood Canal Summer Chum Salmon Recovery Flan states ' Protec#on, restoration and maintenance of the Jimmycomelately and SalrnonlSnow Creek watersheds are of paramount importance. In Loth watersheds, the lower river sections (lower 1 -2 miles) and the estuaries are targeted for restoration. These areas must be restored and Protected to effect and ensure recovery of the Strait population. " This protect is located at river mile 1,6 and clearly is a tremendous opportunity to not only purchase for permanent ,protection but also to restore 11 acres of riparian area. In addition to the recovery plan, the three year work plan identifies conservation purchasesleasements and riparian restoration as very high priorities. The HCCC conducted a riparian habitat assessment in the summer of 2010 and found this parcel to contain highly functional riparian conditions that are currently limited in this watershed. With minimal effort, conifer underplantings on this parcel would establish one of the best examples of this lowland habitat in Jefferson County. Beyond salmon recovery, this proposed purchase would further the draft goals of the Integrated Watershed Management Plan by improving the integrity of our forests, riparian areas, and water for human health and prosperity. Further, by moving towards improved habitat conditions and salmonid viability, we hope to decrease future pressure on other important social and economic goals such as livable communities, sustainable employment and cultural heritage. We fully support the application of the Jefferson Land Trust to the Conservation Futures program to purchase and replant this parcel. The JLT is a critical partner in the Chumsortium that has the capacity and expertise to implement and sustain conservation purchases that will fulfill a cornerstone of our shared conservation mission. Sincerely, s Richard Brocksmith Director for Habitat Programs 17791 FJoRo omw SSE, SUR£ 122, Pou Lsao, WA 983704481 - WWW.Kccc.WA.r.Ov Board of Directors Mike Langley Act :''g "Ajer.; Ron DePsher frYG ". "c• Jean frrem "sell Corley €;ear xglrt Lawler HannRh merrllf Sarah mcMahar+ Andy McGregor Coleman "s A4ichael Bfammn NORTH OLYMPIC SALMON,:`° ALMO �s - Rvstnring www.nosc.org February g13, 2012 To: Conservation Factures Advisory Committee Subject: L Brown Property Acquisi#ion on Snow Creek The North Olympic Salmon Coalition offers its enthusiastic support for the Jefferson land Trust's project application for the acquisition of the L Brawn Trust property on Srsow Creek. The North Olympic Salmon Coalition, the Jefferson Land Trust and a mi4titude of partners collectively known as the Churnsortlum, have been working in the Discovery Say watershed for a decade to restore habitat for salmon, Including ESA listed summer chum. property acquisition of targeted parcels has been a key component to )ur successes in the watersheds and has allowed over a half mile cf Salmon Creek to be restored, i