Loading...
HomeMy WebLinkAbout121613_ca12Consent Agenda JEFFERSON COUNTY PUBLIC HEALTH 615 Sheridan Street o Port Townsend 0 Washington o 98368 www.jeffers,oncountypublichealth.org November 15, 2013 JEFFERSON COUNTY AGENDA REQUEST TO: Board of County Commissioners Phillip Morley, County Administrator FROM: Jared Keefer, Environmental Health/ Water Quality Manager Tarsi Pokorny, Environmental Health Specialist 11 DATE: SUBJECT: Agenda Request: Conservation Futures Project Agreement for the Winona Basin — Bloedel II Project with Jefferson Land Trust; July 15, 20'13 — July 15, 2016; $80,000 STATEMEiVTdlir On July 15, 2013 the BoCC granted an award from the Conservation Futures Fund to the Winona Basin — Bloedel II project (Resolution No. 32-13). JCPH, Water Quality Division, requests approval of an agreement with the sponsor, the Jefferson Land Trust (31-T), to implement this project. Conservation Futures Project Agreement for the Winona Basin — Bloedel II Project with Jefferson Land Trust; July 15, 2013 — July 15, 2016; $80,000 OALS: Resolution 32-13 authorizes the use of up to $80,000 in conservation futures funds for acquisition expenses related the Winona Basin — Bloedel II project and to contribute to the acquisition and protection, by the City of Port Townsend, of approximately 3.8 acres (36 parcels) within the Quimper Wildlife Corridor, JLT and the City have been working with the community since the mid 1990s to protect valuable wildlife habitat in the corridor, and a Quimper Wildlife Corridor Plan was adopted by the City in 2008. The project area contains mature mixed conifer forest including notably large tree specimens. It's located directly adjacent to parcels acquired in 2012 with the use of the conservation futures funds. FISCAL —IMPACT. The explicit purpose of the Conservation Futures Fund and Program is to contribute funding towards projects that support a system of public open spaces. There is no impact to the General Fund for this effort. mimmUNM HEA Uir H ENVIRONMENIAL HEALTH DEVELDPMENIAL DISABILMH PUBLIC HEALTH WXrER QUALITY Wft (360) 385s9400 AWAYS VOORKNNGFORA SAFER AND MAIN: (360) 385-9444; U& (360) 385-940.1 HEALTHIER COMMUNITY ' FAX: ;.3609 In the project agreement, the project costs and percentages now reflect actual appraised values rather than estimates of value. The now calculations also correct math errors in the application. The requested amount of conservation futures funds remains the same ($80,000), Current) : Acquisition Percentage Dollar Amount .................... . . . .... .. .. .. .. . . .. .. ................. . . ...... Conservation Futurcs — Winona Basin — 30% $80,000 Bloedelll ... .. ......... .. . ........... . . .. . ...................... .. . — . . . ........ . . ....... .................... Prqject Sponsor 70% $186,000 . . ............. ................. .. I Total Project Cost (based on appraised values) 100% 1 $266,000 Acquisition Percentage Dollar Amount .............. ...... ­- Conservation f"UtIATS -- Winona Basin — 44-0/6 2 7 % $80,000 Bloedel 11 .. . . ........... ......... . . ....... ... Project Sponsor 604473% $215,000 Total Project Cost (estimate of value) 100./. $295,000 ......... ITIT RECOMMENDATI JCPH Management recommends that the BOCC approve the Conservation Futures Project Agreement for the Winona Basin — Bloedel II Project with Jefferson Land Trust; July 15, 2013 —July 15, 2016; $80,000 REVIEWED BY: Philip Morle~ ,,,County Administrator Date COMMUNITY HEALTH ENVIRONMENIAL HEALTH [)FVFLOPMENTAL DISANI H'rLS PUBLIC HEALTH NATURAL RFSOURCES NINN, 360-,385-91100 HH , " , I'VIAW 3,60385-9444 FAX.360-385-9401 EALTIER O MM U NIITY FAk 360-385-W1 JFFFERSON COUNTY CONSERVATION FUTURES PROGRAM PROJECT AGREEMENT Project Sponsor. Jefferson Land Trust project Title: Winona Basin —B1nedel Project D Approval: Resolution No. 32-13 on July 15, 2013 A. pal-ties Wothe Agreement This ��G�A���(A������d�6��Cno��]��a(C�z�PO Box 12 ' , port Townsend, Washington 98368 and Jefferson Land Trust (Spmnaor) 1833 Lawrence Street, Port Tonmaco6, W/\08368,and shall be binding upon the ugcmta and all persons acting 6y or through the parties. B. Purpose of the Agreement This Agreenient sets out the terins and conditions by which a grant ig rnade through the Jefferson Cnuoty Conservation I'ntonamPuod.The grant im administered by Jefferson County Eovinonmeutal Beolt6 for t6e�ponsor for the pc��cutuuroodabove. C, DescriytiOme[Project The su6i�tPr��t is described io�ea�or6mf2Ol3C000crva6ouP ext4mo�o&mu�rthe Winona 'Basin —1.3looJelProject II. Conservation R11unao Fund (`CRF`) from Jefferson County in an anooanL 'lot 10 exceed $8O.ODO will be used luwurds Fee simple acquisition, bythe City nfPoll, Townsend, of the real property known In tile records ofthe Jefferson County Assessor as AJIN4s 95l0O23Ol'g51gQ220l'95lyQ2303, and 95 19&l0O4 for acquisition expenses incurred before July \5,20lb. The nuatz6ing parcels, /\PyJ#o95lO8l80|'gSl90l8|6'95l90l90l, and 95l9Ql9l9,were donated 10 the City of Port Townsend earlier this year The renaioina/nmtckis cash raised bTtile cum'000izy. D. Temmvy Agreement ` �o o�i�u' ��dh bavmpn�octbuodedbyt6iy/\greeocut�b` ThePc�ud8�omunaon-�oo� �umn tile E. Period Of Performance The Project n:imbuoummnt period for acquisition expenses ahui[ begin on July l5'2Q|3� 'file pro cc1 refflibursernent period CXPerlSeS wfll end on July 15, 2016 unless pi,00fof match is provided prior to this date. Nooxpcoditurc ma6o before July 15, 2013 is eligible 8nrrricm6umemuot Llnicss incorporated by Written aniendnient into this Agreetilent. f', Project Funding Tbc����ou umurdpmv�d�dkydh��nns�ma1iomFuc xeoFond(CFF)�r�c�o �cuts6u|!mot exceed $D0,00Oumd]effecuomCmuoty CH' «hu|\net pay any amouot beyond thu1 approved hercin[mr funding mf tile Projcct. The Sponsor shall 6ercspunmible for ail total costs for the Project in oxuesSof $206,000. In no evUlt "'ill tile (TT' funds expended for this pUl-ChaSC exceed thirty percent (30%) of' tile ovcmUum]uiodinm cost ofAPN#a95\g023O\,95l00228l,95lRO23�O], and P519Wl004, The contribtition by tile Sponsor toward work oil the project at a inIT111110111 shall be as indicated bclow. Thecon\ri6uiiun 6y tile County to%vao1 work oil dhaProject is described immediately above and in Acquisition Percentage Dollar Amount ""Go—n-l" c_rva_t"ion Futures — Winona Basin 30% $80,000 Bloedel 11 Project Sponsor 70'VD $186,000 Total project Cost 100% $266,000 Q. Unexpended Project Allocations Should unexpected pnojectuJlocodouo,iouludiog, but not firmte6toproJect completion u1 less than the estimated cost or, alternatively, the abandonment ofthe Project occur, then the Sponsor shall notify the County- 0[' Rights and Obligations Al I rights and obligations of the parties to this Agreement are subject to this Agreement arid its attachments, including the Sponsor's Application and Jefferson County Conservation FLItUrCS [Irograrn Manual for the 2013 Funding Cycle, all ot'which are attached hereto arid incorporated herein. Except as provided herein, no alteration of any of the terms or conditions of this Agreement will be eff,ective kniless provided in writing. All such alterations, except those concerning tile period of performance, must 6csi�zedbybot pat-ties. Period ufpm�oonamoeux�nuiomonme6only be signed 6y]offecoon DourdofCounty Cononaiooimoers. l. 1ndcomn0Gcmduu Sponsor shall indemnify, defend and hold harmless tile Cuomty, its officers, agents and employees, from and against any and all c|ainmu, losses or liability, or any pouian 16mcemf, iadn6img attorneys fees and costs, arising from injuryor death *a persons, ino|uJio'oiqju6�s, sickness, disease ordcuthk» Sponsor's own employees, ordumag ,,eto property occasioned by J. Insurance The Sponsor sliall sectire and maintain 'in force throughout flit duration of this contract: l Worker's compensation and employer's liability insurance as re(JUil-Od by file Stweu[Washington. 2 �umprt�hcauivc guoexm1 fia6i|ity insurance with mminimuno coverage of $1,000,000 per occurrence and $2,000,000 aggregate in connection Nvith the Sponsor's perGarmauoenfthixAgreement. � �oo�mucmim|/\utomobU� L.iu6@�ty lnouranu� pcovidiu�&odily injury and property 6umaguiiubility converge for all owned and non on/oed vehicles assigned toor used in the performance of the work for o combined single Gmitofom1 less than S5O0,&QO each occurrence. 4. Sponsor shall providc all required pmmfisuf insurance 0o the County in care o� Connacb88auugeratJod`cemuCooflity;uNic8calLh,8YSShcridau St. I'm Townsend, WA 98368. 5, biu agreed bythe that insurers shall have moriu&u[n:cuvuryur su6rogatioougmiut the County (ioulmd(mg its employees arid other agents an(] agcuoicu) it being the im1un6om of the parties that the insurance policies fimrd abmv�sbuOpro�u6odporiexuud6uprimuryoovcrugoƒorunyondoO|osuca covered by the above-llstoJ insurance policies. It Is fUrther agreed by the partics, that any and all deductibles made part of the above-listed insurance pofi lmosball bo assumed by, paid for and u¢ the risk ofthe Sponsor. K. Independent Contractor �beCootomtor and the County agree Jb��the Coutoaotorimuo�d -actor with respect to the o�rvio�aprovidodpomuunt1od6iuu�rc�nueoc��ut���io this agreement shall be considered to create the relationship of employer arid employee between the pal-ties hozm1u^ Neither Contractor nor any ernployce of Contractor shall be entitled to any henefits accorded County employees by virtue of the services provided Under this agreerrient. The County shall not bmresponsible for vvi8z6olding mz otherwise de600bogfederal imounxetax or mociulsecurity or for coutdbu6 state uusum\ug the duties oƒuo employer with respect to Contractor, nrally employee of Contractor. The Contractor shall not sublet or assign any of the services covered by this cmutractwit6un1@bxczprmanvritte000uomotuft6oCouotynritmaut6mrizedrepreoentative, Ausignmemt does not include printing or other ouotoma/yzeinuhonaa@o expenses that muybe provided in all agreement, L. Ownership and 0smoyDocuments All documents, drawings, specifications and other materials produced by tile Sponsor in connection with tile services rendered Under this agreement shall be the property ofthe Sponsor whether the pr qjwct for which they are mxJeix*xro/tndor not. The County shall b e peromiko6 1oruLuio copies, including reproducible copies, ul drawings arid apecificohoosGnr iuf6muatimn,raferenum,006uoeiucunneotionwiththeSponoor'omndoarnrx. ��. ('orup}iuocen/itb Applicable Statutes, Rules, umJJefferson County Policies T|zio/��/��mooTim�uverued by, and the Sponsor shall comply with, all applicable state aodfederal laws and ru�u|c1loum,incimdingI(CY/Q4.34.2lO, and pu6]iahed agency policies, which are iucorpmratc6 herein 6y this reference us if fully set forth. N. Sponsor's Accounting Books and Records ,qlc Spolisol. shall niaintain complete financial records relating to this contract and the semi;m /codenad iociuding all books, records, 6ocumomtu, receipts, invoices, amd all other evidence of accounting procedtires and practices, which skifficiently and properly refIeut all diroctanJiodirmotcootofunywatureexpmo6mdintheperfonnaorcofthisountrxut The 8puuaor`or�um'��aodoccountupn�ai��u�zo this agreement are to6e kept available For inspection by representatives of the Cotinty arid slate for a period of six (6) years after the date of 1hc final puymunt toGpnnaor.Copieo shall 6e made available uponrcqaeac C>. Licensing, Accreditation and Registration The Sponsor shall comp|y with all upylico6\* local, state and Federa1 ficcnsimg' accreditation, p«rmittin@�ondregistration necessary 5nr tile per 6ocmo lice mfthis oum:oct. P, Disputes 6xocp4aaotberw{sc provided in this contract, whcnobaou fide dispmtaurluosbetween Jeffcrson Coulity and the Spomor and it cannot be resoived, either party May rNnost a Jispntohcario�,vitbumcJiutmruu�'ocdbyocmsoocim\eJwithJe��oou(�om�yDiatrio1 Comn Fithxr party's rcclueot For adispute hearing oouy(ke inwribuIg and clearly state: u. tile, disputed imuoo(m), 6. the relative positions of the pal-tioa,on6 o, tkeSponsor's omme, address and &�,,,'Iemcy contact oumbcr These oqmcstycmuot6umoKcd to tile Project Manager, Jefferson County £mvimomontu> HeaithDcpurtvmomt.0\5 Sheridan 8t_PurtTowmmuud,VVA gX]68, within 6@cmm(}5)days wmmnuAu�u-mk�u\pn���&-zAo after either party received notice of the disputed issue(o,The parties ' agree that this dispute process shall precede any action [oajn6icialorquasi-judicial LribonaL The parties vviUsplit (,,venly thecost of rnediat<000r whatever foxnimf dispute resolution {sused. (), Termination for funding Jefferson Couuty may unilaterally tmonina¢e this contract iothe event funding fromatute, federal, or other sources are withdrawn, reduced, or\imited iu any way after the effective date ofTbitocontract, R, Termination for Convenience The County reserves the right nu terminate this agreement at any time by giving, ten (lD)6a�s vvritteonoticOtothe Sponsor. S. Assignment The Sponsor shall not sublet or assign any interest in this Agreement, undohmDnottrouoier any interest �n this agreenient without the express written consent of tile County. T, Non-Waiver. Waiver 6y the County of any provision o[ this a�reme�or any dmoGm�uion provided for in this ugreameotshall not couStitu1ca Waiver uf any other provision. I.J. County Does Not Assume /kdditinoulDotieo The County does not assurne any obligation or dkity, except as required by federal or state law, tu determine ifSponsor iuoouopiyiog with all applicable statutes, rules, codes ordinances orPeuniis' V. /\urccmnmu¢Reprmmmo{otkvea All written cornmunications sent to the Sponsor under this Agreement will be addressed and delivered sarall Spaeth, ulivuDireotor Jefferson Land Trus1 1033 I,awne/ceSL Port Townsend, WA 98368 Con,servation Futures Program Contact JuifeoonComntyBoviraomcotoi l6eabh— Conservation Futmeo 6l5 Sheridan 8&reot Pori Townsend, WA '98368 These oddr000s shall be offCCdvouoti| receipt by one party from the other oFa written notice ofuny Change, __ W. Emtirc/t,c Yrmenimmt/Sovaroumx9 'I"his agreenient, alona with all attachments, constittites the entire agreement ofthe parties, No other undc,mtaa6iwgp, oral oc otherwise, rc#ardio-g this Agiccnoeotshall exist or bind any oJ the parties. If ally part o[ this Agreement is ruled ar adjudicated tobe un|awful or void, all other sections ofL6iy Agreemcmis6a0 continue to have full force and e[fea X. Effective Date Tkisag'000mcot` for tile VV(nuuu Basio— Blocdol Project 11 shall be effective apouuTAnimg by all pa/tics. Y. Venue: yonuo for ony\itinuionurisin��om dkisPrucc���ecmco|o6uU6o only iu�C Cmx�ln amdfo�Jo[bromCmw�y.Euc6pu�yte this u�enmnnT shall be�opoosi6�e tor �m�{ti�m�onuoyt� inck6ng attorney's fees, DA-J'ED day of 2013, By- ------------ John Austin, Chair Jefferson Board of CountY Cornmissiorlers By Jefferson Land Trust Attested: Carolyn Avery, Deputy Clerk of the Board roved as to I Will" David AlvareZ, ChWf(,,iViI Winon I la�in 013 Cofisc•t-mion Fawro Apphc UfirW . r rh Ri wift,,x Sh, c� 2013 Jefferson County Conservation Futures Program Asir Property Acquisition and/or operations and Maintenance Project Application please complete the following application in its entirety, Be Sure to answer "N IA" 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 !pokornke co. jefferson. wa.us with questions. 1. Project Title,-__Winona Basin - Bloedet Project 11 2a. Conservation Futures Acquisition Request: $80,000 b. Conservation Futures O&M Request: $0 3. Total Conservation Futures Request- $80,000 4. Please indicate the type of interest contemplated in the acquisition process. &Warranty Deed —Easement — Other (Please describe below,) in whose name will the property title be held after acquisition? City of Port Townsend 5. Applicant Information Name of Applicant of organization: City of Port Townsend Contact: Rick Sepler Title: Director of Development Smices Address: 250 Madison Street, Port Townsend, WA 98368 Phone:' (360) 379-5081, ext. Fax- (360) 344-4619 Email: rsepler@cityofPt-us 6. Sponsor Information: (ifdiffierent than applicant) Organization Name: Jefferson Land Trust Contact: Sarah Spaeth Title- Executive Director Address: 1033 Lawrence Street, Port Townsend, WA 98368 phone- (360) 379-9501, ext. 101 Fax: (360) 379-9897 Fmail: sspaeth@saveland.org S I 'I I )I FfU 0 C/V S 1pf i I This application was approved by the sponsor's legally responsible body (e.g., board, council, etc.) on February 19, 2013. 7. Site Location Street Address or Description of Location: 22 Lots in Fowler's Park Addition section of Quimper Wildlife Corridor will be acquired with CFF and community funding, 14 lots in adjacent blocks will be donated as match. These lots are adjacent to parcels acquired with 2011 CFF funding. Driving Directions from Port Townsend: Drive north on San Juan Avenue. Turn left as it joins 49th Street, continue past the county fairgrounds and turn left on Cook Avenue at the 53rd St. and Cook intersection. Properties are located on the east side of Cook Avenue, south of Peary Avenue. Section: 33 Township: 311" Range: I West Assessor's Parcel Number(s): Bloedel parcels - 951902301, 951902201, 951902303, 95 1 901 804 Donated parcels - 951901801, 951901816, 951.901901, 951901919 8. EXISTING CONDITIONS New Site: Yes No X Addition to Existing Site: Yes X No Number of Parcels: 22 + 14 donated parcels Acres to Be Acquired. approx. 3,8 Total Project Acreage (if different): Current Zoning: vacant land Existing Structures/Facilities: none- vacant land Any current covenants, easements or restrictions on land use; none Current Use: vacant wetland buffer and wildlife habitat, mature forest Waterfront (name of body of water): n/a Shoreline (linear feet); n/a owner Tidelands]Sherelands; n/a 9. Current Property Owner X is —is not a willing seller. to. In 1000 words or less, provide a summary description of the project, the match, overarching goal, and three top objectives. Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including: vegetation, topography, surrounding land use, and relationship to parks, traits, and open space. Describe the use planned for the site, any development plans after acquisition (including 2013 ( Fvfidr,,N . Ippli(aufm wd Rating N shc,v passive development), characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. 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. Please also list any important milestones for the project or critical dates, e.g, grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. The City of Port Townsend and Jefferson Land Trust (JLT) have an exciting opportunity to protect a significant amount of high priority habitat in the Winona Basin of the Quimper Wildlife Corridor. The City, JLT and Jefferson County have been working with the community since the mid 1990's to protect a ribbon of green across the Quimper Peninsula, connecting a series of wetlands, forests and floodplains that provide habitat for over 200 bird species, amphibians and mammals. The Winona Basin area in the Quimper Wildlife Corridor has high diversity of habitat and wildlife species and qualifies as a priority habitat under the Washington Department of Fish and Wildlife Priority Habitat and Species Program, Most of this area of the City was platted into 50 x 100 lots in the 1889s and development pressures in the area are high. Purchase of the floodplain, forest and upland parcels in the Winona Basin will protect the high quality habitat and firrther the efforts to connect this area with other important habitat areas that extend from the City into Jefferson County and across the Quimper Peninsula. XT and the City of Port Townsend adopted a Quimper Wildlife Corridor Plan in 2008. Since the project inception, nearly $2 million has been secured for property acquisition. The City and JLT will continues to acquire properties from willing landowners as the opportunity arises and will conduct fundraising as needed. The site proposed for acquisition includes some of the most critical undeveloped habitat in the wildlife corridor and contains mature mixed forest of cedar, Douglas fir, Hemlock and other native species and some of the largest trees in the QWC. The topography includes gently sloping parcels and low lying Winona wetland buffer lots and is directly adjacent to parcels that were acquired in 2012 with CFF grant funding and community contributions. This project represents an opportunity to protect the largest number of adjacent lots in the Winona basin in one single transaction. The landowner of the parcels has been negotiating with JLT for years and is finally willing to sell all of her remaining property in the Winona Basin. The parcels available for acquisition for this grant cycle include Lots 9, 10, 21, 22 in Block 19, Lots 1-4, 17-20 in Block 22 and Lots 11-18, 3, 4 in Block 23 in Fowler's Park Plat. Lots 11-17 in Block 24 were acquired from the same landowner in 2012 and numerous adjacent lots were acquired in 2009 by the City of Port Townsend. In addition, we are very fortunate to have a neighboring landowner agree to donate 14 platted lots as match for this application which includes lots in Blocks 18 and 19. The three top objectives for this project are: 1) Acquire high priority threatened properties from the willing seller 2) Utilize adjacent donated parcels as match 3) Permanently protect the properties as wild open space in partnership between the City of Port Townsend and JLT Milestones: I o/3 0­­/Tu I Pon Fo I o'd'e",, - III/ 4w,1N­; , IaJ Railvm� , Y11, v • Secure remaining community funding in fall 2014 • Initiate appraisal in spring 2014 • Acquire property in spring 2014 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 Properties) to be Acquired: $270,000.00 b. Total Estimated Acquisition-related Cost (see Conservation Futures Manualfbr eligible costs): $15,000 c. Total Operation and Maintenance Cost: $10,000.00 d. Total Project Cost; $295,000 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 cost estimate is based on an appraisal, conducted by Ralph Eticksen of Consultants NW Arbdol, Inc. on February 250 "', 2011, of the seven adjacent lots purchased in 2012. These lots were valued at $52,5100 (or $7,500.00 per lot). The estimated value of the lots to be purchased is 5105,000, though the seller has indicated she would be willing to sell at a bargain sale value of $150,OW The estimated value of the lots donated as match is S 105,000. The acquisition is anticipated to be complete in early 2014. Anticipated project related costs in addition to the land include-, appraisal and appraisal review, title insurance and closing costs, taxes and recording fees, legal costs, project management and administration, At this time, .1L T" will be covering the costs associated with Operations and Maintenance. See attached Project Cost Table Ia. 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. 4 101 C.4 a 0, iF P I t Feel I i n :% Ap/ die 0 Iff" I alas/ 84 1 � r Sh , , � As the sponsor organization, JLT will be coordinating the contribution of the donated adjacent land, as well as cash contributions that community members have made to the project through a capital campaign. c. Matching Fund Estimate Conservation Futures Funds Requested Matching Funds/Resources* Total Project Acquisition Cost Acquisition "..t 11 ! •: O&M % 34% 66% 100% If prior acquisition is being proposed as match, please describe and provide documentation a value, .f 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 funds/resources contribution Donated land S 120,000 Community funding— $95,000 Contribution If not, Contribution If not, approved? when? available now? when? Yes X No Yes No Yes X No Yes No Fall. 2013 Yes No Yes No Yes No Yes No IVOIF,: matching funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition, Donation of property or a property right will be considered as a matching resource. Donation of resources .for on-going maintenance or stewardship ("in-kind " contributions) are not eligible as amatch. 2 a. Sponsoring agency A is —is not prepared to provide long-term stewardship (maintenance, up-keep, etc.) for the proposed project site. The City and JLT anticipate a stewardship program of annual monitoring to insure that the properties remain forever wild, that no building or development has occurred, that no trash has accumulated, and that no noxious weeds have invaded the property. XT staff and trained community volunteers will conduct monitoring, maintenance and restoration efforts and are already monitoring adjacent properties. The XT 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. The JLT will conduct stewardship, monitoring and maintenance of the properties along with the rest of the Quimper Wildlife Corridor according to the Quimper Wildlife Corridor Management Plan (City of port Townsend ordinance 2976). 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.) JLT will conduct at least annual monitoring of the property 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- JUF has a legal defense fund of nearly $350,000, -10%.1 ( 'f qrA k r� "O I I p w [ dm w4 , , 1ppii( , A N � ) o / R, o df , �h ( ', � and continues to build this fund with each now easement acquisition, recognizing the legal obligation and responsibility of protecting conservation values in perpetuity. In 2012 XT instituted an exciting new program called the Northwest Naturalists that trained participants over an 8 week period in wetland ecology, plant and animal identification, geology, wildlife tracking and other topics. Several participants have committed to being preserve stewards for protected properties, including the QWC. 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. jl,T currently stewards over 10,000 acres in Jefferson County. These stewardship obligations include properties protected with conservation easements, XT preserves and land owned by partner organizations and agencies such as Washington State Parks, JefTerson County, the City, Washington Department of Natural Resources and the Hoh River Trust. XT is the only local organization or agency that has a monitoring and stewardship program for conservation easements and preserved properties, developed with the guidance of The Land Trust Alliance and utilized effectively for 24 years. b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding?. No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures funds. X_Ves, the sponsor andlor applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: JLT has been the applicant and sponsor organization on numerous applications that have received Conservation Futures funds. These projects include: Sunfield Farm, 2003; Quimper Wildlife Corridor, 2()04; East'Tarboo Creek Conservation Prqjcct, 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 2010; Tamanowas Rock 2010; Chimacurn Creek Carleson 2011; Winona Basin - Bloedel 2011; L Brown 2012, Boulton Farm 2012. 4 a. Property 2L can —cannot feasibly be acquired in a timely fashion with available resources. b. Necessary commitments and agreements X are _are not in place. c. All parties X are —are not in agreement on the cost of acquisition. Ij "not" to any ql'the above, please explain below, Landowner is a willing seller. Matching resources of cash and land donation will be available this fall for purchase of the 22 lots proposed for acquisition, 5. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please desc,"ibe below, including the site's iinportance to the plan. Please reference the websiteqf the plan f available or include the, plan with this application. complements an adopted open space or conservation plan, but is not specifically ide tr d Please describe below, and describe how the proposed acquisition is consistent with the playa. M .70 13 ( 'e 0i d %t 'r I °�( I fir y9 I FI (f I N -, - � . I I s/ Vu , i I it 0 l r o l Id &a I f i P I '_; N Sipa w I is a stand -alone project. . The properties in the Winona basin identified as Tier I and Tier 11 for acquisition were indicated in the Quimper Wildlife Corridor Management Plan that was adopted by the City of Port Townsend on May 19, 2008, Ordinance 2967. This management plan is available at the City's website, http://Www,cityofpt.us/dsd/planning.asp. The entire Quimper Wildlife Corridor lies in the area recognized in Jefferson County's Comprehensive Plan map as Parks, Recreation Areas, Conservation Easements and Areas for Future Cooperative Preservation Efforts- It is also recognized in the City of Port Townsend Comprehensive Plan, and the Parks and Open Space Plan. JLT, the City of Port Townsend, Jefferson County, state agencies, the local Audubon and Native Plant Society Chapter, and US Fish & Wildlife have been partnering on the project since the mid 1990's. These parcels have been identified in the acquisition priorities of the project since the beginning due to the wetland, floodplain, buffer and upland forest values, http:/Iwww.co,jefferson.wa.us/idms/pdfs/parksg9.pdf mrs conservation Plan for Jefferson County, prepared with the input of many community members and adopted in 2010 specifically identifies the Quimper Wildlife Corridor. 'The plan is located on the JLT wcbsite at www,saveland-org, 6. Conservation opportunity or Threat: a. 'The proposed acquisition site —X,flocs --does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. b. if applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. Landowner has been negotiating with JLT for 17 years and has finally expressed her interest in selling her remaining lots. She is eager to sell the property due to family illness. 7. The proposed acquisition: X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. X provides habitat for a variety of native flora or fauna species. X contributes to an existing or future wildlife corridor or migration route. C( .firmative in any of the above, please describe below, and cite or provide documentation species 'use. I The QWC provides critical habitat in an area of looming urban development and is home to a wide variety of flora and fauna, from the humble rougli-skinned newt and Calypso orchid to nearly 200 bird species and numerous small and large mammals. Protection Island, located just offshore of the western end of the corridor, is a National Wildlife Refuge and home to nearly seventy percent of the seabirds that nest and breed in all of Puget 'Sound. Washington Department of Wildlife and the local Audubon - �� "ij, IL 'See, Im exaini)1c, hHr'.z'ww�% �St!)L scielice,it. ge .. ............. -ka -Sa;on col sysmu�.[111' 7 '0J,? (,(,I I I �, yi,�� I I- 11� I wc 's , ljqdi� WO 01 10h i 16 rd a,_, + Society have identified several state priority species in the QC that are sensitive, threatened or listed, These include: Bald eagle, Peregrine Falcon, Wood duck, Great Blue Heron, Pileated Woodpecker, Band-Tailed Pigeon, Merlin, Olive Sided Flycatcher, black tailed deer, and bob cat. The corridor will allow these species and others the safety of cover to move between wetland and forest ecosystems, 8 a. 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. Not applicable 9. Describe how the proposed acquisition benefits primarily a X local area ,„broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. Protection of the wetland, buffer and floodplain habitats of the QWC provides particular benefits to local residents in that it provides storm-water filtration and floodplain retention. In general, however, protection of the Q habitats provides benefits not only to residents of Port Townsend and surrounding county areas, but also to the many visitors to our area. The corridor is used extensively for passive recreation by the community and visitors who enjoy walking the traits, bike riding and horseback riding. The wetlands and forests of the corridor provide education opportunities for all, and have been field classrooms for the Cedar Root School, the international Cyber Tracking Program, Native Plant Society, Audubon members conducting annual Christmas bird counts, and numerous local public and private school students. Realtors from all over the region taking continuing educational course's at WSU have participated in corridor field trips to understand wetland ecology. The bike trails of the corridor were identified in a national mountain bike magazine. JILT volunteers continue to conduct regular educational tours to various parts of the corridor as part of our ongoing community outreach efforts. 10. 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 QWC and neighboring Cappies Woods provide an extensive network of trails within the City of Port Townsend and out into Jefferson County. In fact, it is possible to walk from McCurdy Point on the west end of the corridor to Fort Worderi State Park with very few road crossings! The City Non- motorized Trail Committee and community volunteers conduct regular trail maintenance efforts in the QWC. Recently location signa,ge was placed in key trail locations in the corridor. ILT volunteers are creating interpretive displays that will provide visitors to the corridor an understanding of the function Of the corridor, as well directing people away from the more sensitive habitat areas, 2 The words "edLICatiOn" and "interpretation" are interpreted broadly by the CFCorwrince, 2013 Cowwrvraiton Fwares � it eplif 'i fie) io oo( I Ra I I; �""s Sh, ' -� 11. The proposed acquisition — Includes historic or culturally significant resources 3 and is registered with the National Register of Historic Places, or an equivalent program. is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. Ifaffirmative in any of the above, please describe below, and cite or provide documentation Qf the historical or cultural resources. Not applicable 12s. Describe the extent and nature of current and planned silvicultural use of the proposed acquisition, Please cite or provide documentation ofewisting or planned lily `cultural activities including forest management plan(s) or forest ecosystem restoration. None planned b, Describe any participation by current property owner in silviculture conservation programs, including the program and nature of the involvement. None planned Verification 13. 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 O&M funds are expended. The Committee will use the information to develop a project 66report 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. L initiah —7h3 IL i —Date 14. if, three years after the date funding Is approved by the Board of County Comirtissioners, the applicants have not 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 dops not obtain the necessary matching funding within three years. 29 t�I—Jnitial 13 Date 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- Winona Basin — Bloedel Project Il 2013 Conservation Futures Program Acquisition Application ProJect related costs and O&M Timeline Land to bc purchased Early 2014 S150,000 Appraisal and review x11 201 —i-5 -- '000 Title insurance and closing costs, taxes, etc arly 2014 5,400 . ... .. Project Management, Admen and legal fees ;March 2014 $5,000 &M pur) Ongoing $10,000 February 22, 2013 Sarah Spaeth F-xecutive Director Jefferson Land Trust 1033 Lawrence Street Port Townsend, WA 98368 Dear Sarah, This letter is to indicate my interest in selling the following parcels of land for protection purposes: Tax Parcel Numbers: 951902301, 951902201, 951902303.,951902304, Fowler's Park Addition, Lots 9,10,21, 22 in Block 18, Lots 1-4,17-20 in Block 22 and Lots 1118, 3, 4 in Block 23. 1 also understand that this sale is contingent on funding from the Jefferson County Conservation Futures Program- Signed, Heidi Bloedel PO B6x 1564 Port Townsend, WA 99368 M, J PUL MIMM Heoing the communi�yprexerve open ipace, working land, and babitatforet)er 1033 lAwrence Street, Port Townsend, WA 98368 360-379-9501 — office 360-379-9897 — fax www.saveland-org ilt@saveland.org EsTiMATE OF VALUE FOR WINONA BASIN — BLOEDEL 11 The cost estimate is based on an appraisal, conducted by Ralph Ericksen of Consultants NW Arbdol, Inc. on February 25b, 2011, of the seven adjacent lots purchased in 2012. These lots were valued at S52,500 (or $7,500-00 per lot). Sarah Spaeth Executive Director February 27, 2013 (>Vol .Jefferson Land TrL& & a 501 (c) (3) non Tip tax exempt Pimete corporation. Printed on recycled paper 1 Z.< CL 0 CL > 2 sm. Do co a CD LO 00 0) Ln 0 P 04 m Cp Lo CL a) cr; 5 z w 0) li CL 0) LL V 0 ca od LO 0 0 cod? -j CN, "ZM C> 0 Lo < C, aL (o Epo Z LU N 0 U- m Winona Basin-Bloedel Project CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2013 rduilly udst rttuirty buutis AJINNIMS tMence 4t wildlife activator INTERNAL REVE2M SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE MONTEREY PARK, CA 91755-7406 Date; MAY 0 3 1994 jEyFERSON LA= 'TRUST CIO DOUG MASON PRES PO Box 1610 PORT TOWNSEND, WA 98368-0109 Dear Applicant: DEPARTMENT OF THE TREASURY Employer identification Number: 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 SDI(a) of the Internal Revenue Code as an organization described in section 501 (c) M 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 (a) (1) and 170 (b) (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(x)(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(x)(1) organization, It 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, Richard 'b 4ro 9 c oV MWNW-. District Director Letter 1050 (Do/CG) jefferson Land Trust P.iO. Box 1610 Port Townsendt Washington 9:83,68 Internal Revenue Service Service Center ATTN: Entity I Odgen, UT 84201 RE Name change EIN 91-1465078 By resolution of the Board of Directors on November 13, 1991, the Jefferson County L-and Trust changed its name to Jefferson Land Trust. This is a name change only. Please change our name in your record's regarding our EIN and our 501(c)(3) status, U�� Jefferson Land Trust by: JulianneMcCulloch Secretary Internal Revenue Service DWriat Director p 0 BOX 2350 ROOM 5127 ATTN: E.O. LOS ANGELES, CA 900532950 oats; MAY 81 1990 JEFFERSUN.CUUNTY LAND TRUST 1322 WASHINGTON PO BOX 1610 PORT 4OWNSENT, WA 98368 Dear Applicant: Department of the Treasury Employer Identification Ntimber.- 91--1465078 Case Number: 950114110 Contact Person-. JOSEPH CUNHA Contact Telephone Number.- (213) 894-41.70 Accounting Period Ending: December 31 'Foundation Status Classification: see attached Advance Ruling Period Begins.- April 7, 1990 Advance Ruling Period Ends: Doc. 31, 1993 Addendum Applien; none Based on information supplied, and assuming your operations i4i I I be as stated in your application for recognition of examptlon, we have datermined you are exempt from Federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3). Because you are a newly created orgaiiization, was are not no*q making a final determination of your foundation status under section 509(a) OF the Coda. Kowsver me have determined that you can reasonably bc, expected to be as public- ly supported organization described in sections 509(,k)(1) and 170(1.)(1)(A)(vi). Accordingly, you iqM be treated as a Publicly stipported organization, and not as a private foundation, during an advance ruling period. This advance ruling period begins and ends on than dates shown above. Within 90 days after the end of your advance rtil � nc j I period, YMI MLJsL submit to us information needed to determine whether you have net the require- ments OF the applicable support test during the advill-ice ruling period. if Vast, establish that you have been a Publicly supported orcanization, V>u will be classified as a section 509(0(1) or 509(a)(2) organi�:ation as long us you con- tinue to meet the requirements of the applicable sul)port tost. If you do not meet the pubs is support requ i remeriLs dur i rig the advance rail i rig per j od, you N I I I be classified as a private foundation for future Periods. Also, if you are classified as a private foundation, you will be treatod as a private foundation from the date of your inception for purposes of sections 507(d) and 4940. Grantors and contributor's may rely on the determination that you are not a private foundation Unti 1 90 days after the end or your advance ruling psi-jod. If you submit the required information within the 90 days, grantors and contri - butors may continue to rely an the advance determination until the Service I etter 1045(CG) M JEFFERSON COUNTY LAMA TRUST ma%es a final determination of your foundation status, rf notice that you Hill no longer be treated as a publicly supported ganization is published in the Internal Royonue SulleLjn�p grantors and c or- on- tributors may not rely on this determinatiot, after the date of such publica- tion. In addition, if YOU lose your status as a P Lion and a grantor or contributor Has resporisibleuU"cly supported organl2a- , for, or Has masted of, the act c)r failure to act, Ehat resulted in your loss Of Such stal;,tls, that Person may not rely of this determination from the data of the act or fai 4-e to act. Also, if a grantor or contribUtOr learned that the 501-Vice had i that you would be removed from classification as a publicly s g1ven notice tion, then that person may not rely an this determination orqani?,,a- knowledge was acquired. nation Ps OF the date such If Your sources of support, or your i>urpuses, character, or method Of operation change, please let us know so He can can, iclor than change on your exempt status and foundation status of Fect of the went to Your Organizational document or bylaws In t1la case of an Omend- , P103so send us 11 copy of the amended docwment or bylaws. Also, You should inforin us OT all changes ill your name or address. As of January 1, 1984, you are liable for taxes under the Federal Insur- ance Contributions Act (Social: security taxes) oil remuneration of $100 or more YOU Pay to each Of Your employees during a calendar 'Year. You are not liable for the tax imposed under the Federal tifleml)IOYmeot Tax Act (FUTA). Organizations that are not Private foundations are not subject to tile pri- e vate foundation excise taxes under Chapter 42 of the Code. H014 eve r) You are not automatically xempt from other Federal excise taxes. If YOU have army questions about excise, employment, or other- Federal taxes, plea., let us know. Donors may deduct contributions to you as Provided ill sectioll 1,10 or Code. Be4uests, legacies, devises, transfers, . the are deductible for Federal estate and gift tax 01- gifts to YOU Or for your use pljrpofi w 'a if tl1eY meet the app I cable provisions of sections 2055, 2106, and 2521 Of the Code. Contribution deductions are al lowable to donors. only Lo the, ex iron t: that their contributions are gifts, with no considaration received. Ticket Pur- chases and s i m i I a r Payments i n conjunct i on w i th f undra i s ng events may not tiecessar i I V qua f i f V as deduct i b I e cOntr i but i ons, depend i ng or, the c i rcum- stances. See Revenue Ruling 67-246, Published in Cu on page 104, mt'(Rti�Oe BU I ati n 1967-2, which sets forth guidelines regarding the deductibility, ar h table contributions, of payments Made by L-expayers F'or' admission t 0 c ari- participation in fundraising, actiyitias for charity. or L her You are required to file Form 990, Return of Organization ach Year are norroRfly more than Income Tax, only if your gross receipts es Exempt From $25,000. liOwever, i f you race i ve, a Form 990 package in the me i 1 1 P1 a e s the return even iF you do not exceed the gross receipts test, I f e fil, You are not Letter LMMG) JEFrERSON!,CGUNTV LAND TRUST required to files simply attach the label provided, chock the box in the head-- ing to indicate that your annual gross receipts are normally $25,000 or less,, and sign the return• if a return is required, it must 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 $5oOOO or 5 por- cant of your gross receipts for the year, whichever is loss. This penalty may also be charged if a return is not complete, so please be sure your return is complete before you file it. You are not required to file Federal income tax returns ut►ess you are subject to the tax on unrelated business income under section 511 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 rio are not determining whether any of your present or proposed activities are usire- lated trade or business as defined in section 513 of Lhe Code. You need an employer ii dentification number oven if you have no employees, if an employer identification number Has not entered on your application, a number will be assigned to you and you will be advised of it. Please use tha[: number on all returns you file and in all correspondence i,4ith the Iiiternial Revenue So"victi, 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. ]f you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Enclosure(s)-' Form 872-C ins�rm rely yours, Michael J. Quinn District Director 1. titter 1045 (CG) -4- JEFFERSON COUNTY LAND TRUST FOUNDATION STATUSi 170(b? (1) (A) (vi) and 509(a) (1) I.ettc-r- L045(ca) (Rev. March 1986) Det)44mnt of the TrMurr_lot,,31 Revenue Somca L in Consent RxIn P 'eriod O;ILIMI;at io6n tof g P, eriod of Lim Itation Upon Assessmen Tax tj Under Section 01 B No� OMBNO� 1545-OM6 4 OD56 F up'-3-31-39 oUpon, 4940�of the 0 v Internal Rev8nU8 Code 0 To bo T-lUxedwilhFarm !�u (Sao F*rM 1023 �fn f P IV 1 3) ctt n OF 2rtIVAn*3.) 1023. Sularnit In M dup lit It ca to 't Under Section 6501(c)(4) of the Internal Revenue Code, and as Part of a request filed With Form 1023 that'the organization named below be treated as a publicly Supported organization under Section 170(b)(j)(A)(vj) 509(a)(2) during an advance ruling period, or section JEFFERSON COUNTY LAND TRUST ............................ ....... i .............. (Exact 014ranfut, on) ••..••.•.._ and the District Director P.O. BO X.1610, PORT TOWNSEND WA 98368 of Internal Revenue ............... ............ .............................. andZIPcode) Consent and agree that the period far assessing tax (imposed under section 4940 Of the Code) for any of the 5 tax years in the advance ruling period will extend 8 Years, 4 months, and 15 days beyond the and of the first tax year. However, it 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 is Prohibited, plus 60 days, Ending date of first tax year. _ -12 / 3 1 / 89 ......................... JEFFERSON' COUNT LAND TRUST of trustee having authority to Signature b- Ci3trict Drector By 10. AancYncott Roth 2/6/90 MICHAEL J. QUINN -T21- For Paperwork Roduction,Act Notice. %go page 1 Of the Form 3023 (instructions. GRWP MANAGER, EO,4 -and Trust 2023 Oudgetf*rJLT 2013 General Actual - YTD 2013 Operating fund Cash flow wember. 2012 Budeet Budget Notes Example - Donations to Opportunity Fund. donations of land Example - QWC campaign, Grant funded 160,175 conservation projects Unrestricted CapM Funds for Programs and values of Conservation Easements 450,960 $ 65,500 $ Restricted capital Funds, Grant Funds from GoVI and Private Sources 5 659,837 797,775 $ Endowment Funds 5 3,526 3,200 $ operations income Annual Contributions 5 80,55,6 $ 126,950 $ 101,100 Example - Quarterly constituent rna0ings Multi -Year Contributions (Pledges) $ 216,250 $ 135,000 $ 170,000 Example. Conservation Breakfast piedges Special Events (Rai nfest and other 44,000 stewardship Use on Bulls related projects and ticketed events) $ 127,491 5 138,250 $ 188,250 Example - RaInfest of Valentine's Day Party In 2013, to be used for NOSC project on opportunity Fund 6,510 Snow Creek Estuary Example • Educational Outreach or Expect to use capital campaign funds Scheinfeld Family Foundation annual grant 5 Government payments for grant funded Fee for Services 59,405 $ 67,170 S 67,170 conservation projects investment Income Joanna Lohe( bequest S,663 6,050 S 6,000 other .. .... 7,400 3,931 2,890 2,890 Sponsorships of programs . Total Operations Income $ 493,196 476,310 $ 485,410 Total income $ 1,607,519L 1,342,Z85 646,185 Conservation Projects., Stewardship Cost of Goods Sold 970,634 $ 286,572 5 286,572 Outreach, and Devo expenses Administrative expenses that are Administrative Expenses 99,461 S 120,990 $ 110,990 management related or overhead payroll Expense 299,332 $ 350,964 $ 350,964 All payroll 1,269,427 758,526 $ 748,526 and Use of other Cash Funds 20I2 General Fund Balance 5 91,000 Forest initiative Fund 39,000 Use on Forestry related activities Use on Working Ag activities, including Working Lands Fund 5 44,000 stewardship Use on Bulls related projects and Bulls Fund 4,000 stewardship In 2013, to be used for NOSC project on opportunity Fund 6,510 Snow Creek Estuary QWC Expect to use capital campaign funds Scheinfeld Family Foundation annual grant 5 6,000 Expect to fund re- accreditation Private foundation grant for forestry related Horizon Grant 1,500 expenses Joanna Lohe( bequest 25,000 1/2 of $50K bequest to be used in 2013 Tapley Brown loan p3ym0n1S 7,400 Total Other Funds 224,410.. arm, d.,t r,�rrd Balance end of "year 2013 .... . . ..... . ... $ . ... ... -..- 122.069 General Fund Balance end of year 2013 Includes new payroll expense . - and 134,000 requirement for re,accreditation (11,931) Om BQARI MEMS ERS MOORF, Steve - President REID, David - VP HULTMAN, Glenda KEISTER, Gary - Treasurer AMKA, Kathryn - Secretary MEYER, Bill TYLER Joanne VAN CLEVE, Brie STAFF SPAETH, Sarah - Executive Director BAiER, Ann - Finance Director CLENDANIEL, Dame - Americorps Stewardship Coordinator KINGFISHER, Erik - Stewardship Director NEWMAN, Nancy - Conservation Associate OAKLAND, Joan - Office Manager ROBERTSON, Caroline - Outreach Director SMITH, Sheiby - Development Director 'ACKER, Kathleen Finance Assistant JEFFERSONLANI7 TRUST Consolidated Financial Statements For the Year Ended December 31, 2011 Table of Contents Independent Auditors' Report Consolidated Financial Statements: Consolidated Statement of Financial Position Consolidated Statement of Activities Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Supplementary Information: Consolidated Statement of Functional Expenses Page 5-17 18 Board of Directors Jefferson Land Trust and Subsidiary Port Townsend, Washington Cqofied Public. We have audited the accompanying consolidated statement of financial position of Jefferson Land AccountarVts Trust and Subsidiary (collectively, JLT, a non-profit organization) as of December 31, 2011, and the and Consultants related consolidated statements of activities and cash flows for the year then ended. These financial statements are the responsibility of JLT's management. Out responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from JLT's 2010 financial statements and, in our report dated May 17, 2011, we expressed an unqualified opinion on those financial statements. 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, 2011, 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 of America. O,ur 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 18 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 B whole. Certified Public Accountants Apri 13, 2012 jEFFE,RSON LAND TRUST AND SUBSIDIARY Consolidated Statement of Financial Position December 31, 2011 (With Comparative 'Totals for 2010) 2011 2010 Assets Cash and equivalents $ 284,193 $ 360,332 Investments (Note 2) 459,277 312,047 Accounts receivable 51,840 76,292 Pledges receivable (Note 3) 464,224 499,028 Note receivable (Note 4) 81,803 85,054 Prepaid expenses 1,679 2,347 Land, conservation easements, and purchase options- Habitat land 660,437 546,491 Working land 25,048 25,04'6 open space land 256,332 176,094 Conservation easements 47 44 Land held for sale 600,000 933,760 Land purchase option - .52,500 Total land, conservation easements, and purchase options (Note 5) '1,541 „864 1,733,937 Furniture and equipment, net of depreciation of $12,996 (2010 - $10,897) 11,671 6,123 Total Assets $ 2,916,551 $ 3, Liabilities and Net Assets: Accounts payable $ 8,863 $ 34,727 Accrued expenses and deferred revenue 49,676, 48,338 Purchase option received 120,000 120,000, Long-term debt (Note 6) 444,000 657,024 Total Liabilities 622,639 $60,089 Net Assets. Unrestricted (Note 9)- U:ndesignated 180,220 (130,320) Board designated 1,421,864 1,561,437 Total unrestricted net assets 1,602,0'84 1,431,117 Temporarily restricted (Note 10) 660,932 763,728 Permanently restricted (Note 11) 30,996 20,226 Total Net Assets 2,294�012 2,215,071 Total Liabilities and Net Assets $ 2,916,561 $ 3,075.160 see avcOj jpjnyj?jg nMes. .2- jEFFERSONL,4ND TRUSTAND SUBSIPMRY Consolidated Statement ofActivities For the year Ended December 31, 2011 (With Comparative Torals for 2010) Expenses: Temporarily Permanently Program 781,209 781,209 Unrestricted Restricted Resiricted 2011 Total 2010 Total Revenue and Gains'. 70,864 70,864 77,737 Total Expenses 945,465 Gifts and contributions $ 77,322 $ 259,584 $ 10,250 $ 347,156 $ 354,081 Fair value of easement acquisitions 239,500 20,226 2,215,071 2,052,954 239,500 166,000 Grants and contracts 324,687 324.687 361,933 Special events income, net of expenses of $34,726 (2010 - $14,786) 87,260 87,260 113,877 Net gain on investments (Note 2) 7,598 520 8,118 30,600 Rental income 17,685 17,685 23,580 Other 3,016 Release from restriction (Note 10) 362,3a0 (362,380) Total Revenue and Gains 1,116,432 (102,796) 10,770 1,024,406 1,043,087 Expenses: Program 781,209 781,209 723,947 General and administrative 93,392 93,392 79,286 Fundraising 70,864 70,864 77,737 Total Expenses 945,465 945,465 880,970 Change in Net Assets 170,967 (102,796) 10,770 78,941 162,117 Beginning of year net assets 1,431,117 763,726 20,226 2,215,071 2,052,954 End of Year Net Assets $ 1,602,084 $ 660,932 $ 30,996 $, 2,294 012 $ 2216071 See accoinpaqving nows, Consolidated Statement of Cash Flows For the Year Ended Deeember 31, 2011 (With Comparative Totals for 2010) Cash Flows from operating Activities: Change in net as-sets Adjustments to reconcile change in net assets to net cash provided by operating activities_ Depreciation Imputed interest expense Realized and unrealized gain on investments Write down of land value due to conservation easement Donated stocks received Donated land received Pledge of donated land Changes in assets and liabilities: Accounts receivable Pledges receivable Prepaid expenses Accounts payable Accrued expenses and deferred revenue Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchases of investments Proceeds from sale of investments Proceeds from note receivable Purchases of land and land purchase option Proceeds from sale of I and Sale of purchase options Purchases of furniture and equipment Net Cash Provided (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: Cash paid for interest See accompaQying notes -4- 2011 2010 $ 78,941 $ 162,117 2,099 1,339 36,000 5,467 (16,930) 24,999 (32,735) (2UM) (15,000) 24,452 22,746 29,804 (37,211) 668 2,683 (25,864) 20,476 1,338 2,574 74,169 193,793 (239,957) (181,925) 119,995 221,887 3,251 (174,186) (208,291) 308,760 52,500 (7 647 3 243 1 62,716 (171,572) (213,024) _45,229� (213,024) (76,,1391) 16,992 360,332 343,340 $ 284L193. $ 360,332 $ 18,367 $ 23,151 jEF,rERsoN L4ND rRusrAND SUBSIDIARY Notes 10 Consolidated Financial Statements For the Year Ended December 31, 2011 Note 1- organization and Summary ofSignfflcant Accounting Policies organization - Jefferson Land Trust (the Land Trust) is a Washington non-profit corporation, formed on April 7, 1989. The Land Trust's Purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes beriefitting 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 since August 5, 2009. On September 5, 2007. JLT Resources, LLC was formed with Jefferson Land Trust as its only member. JLT Resources, LLC was formed for the purpose of purchasing and holding land for conservation, purposes, principles of Consolidation - These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLC (collectively, "JLr). 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 - Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor4mposed restrictions. Accordingly, the net assets of JLT and changes therein are classified and reported as follows: YDrest ct9A Net As - Include all net assets on which there are no donor-imposed restrictions for use, — — or on which donor-imposed restrictions were temporary and have expired. Tem j29farily R tricted Net Assets - Include all net assets subject to donor-imposed restrictions that will be met either by actions 07 JLT or the passage of time, lnclude 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 restriction. 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- jEFFERSON LAND TRUST SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2011 Note I - 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 8 purchased maturity of three months or less to be cash equivalents. Concentrations - JLT 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 14% of pledges receivable at December 31, 2011, and the total of all pledges from board members represented approximately 28% of pledges receivable at December 31, 2011. One dortor's pledge represented approximately 25% of pledges receivable at December 31, 2010. and the total of all pledges from board members represented approximately 33% of pledges receivable at'December 31, 2010, investments - Investments in marketable securities with readily determinable fair values end 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 JILT has designated itself as the beneficiary of the fund, the fund balance and activity are reported in the consolidated financial statements of,JLT 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 earnings 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. 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- PIT= Notes to Consolidated Financial Statements For the Year Ended December 31, 2011 Nate 1- 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: port va_ terti9n "� - 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. Q2ng ry io men - 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. Three easements valued at $239,500 total were donated to JLT during the year ended December 31, 2011. Accordingly, $239,500 of contribution revenue and $239,497 of related write down expense have been reported on the consolidated statement of activities for the year ended December 31, 2011. Land Held for Sale - At December 31, 2010, JLT owned two properties, Red Dog Farm and Tamanowas Wo";rk 'Sanctuary, to be sold in the near future under prearranged agreements with each potential owner. During the year ended December 31, 2011, Red Dog Farm was purchased by the then-current lessee after JLT finalized and recorded a conservation easement with the new owner. This conservation easement will ensure Red Dog Farm will continue to operate as a working farm and will protect critical habitat for salmon, and other wildlife in perpetuity. Tamanowas Rock Sanctuary was purchased by AT with the help of the Jamestown S'Klallam Tribe and a low interest loan from the Bullitt Foundation (Note 6), The Jamestown S'KlaiWm Tribe purchased an option on the property which is anticipated be exercised in 2012. 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 S'Kiallam Tribe. Land hale n A 1, 2 a 500 invested in purchase options for December 'LT it le se options were sold at cost during: the Valley. These m cu s dairy M um Pur a "o - ' M' Chi a m Dairy' a historic fame in Wma year e December , group .a ended D 3 2 when p conservation investors bought the farm, reimbursed e 1 01 w a of s tion if JLT or t option u ease with a local creamery in Jefferson County, f he purchase on amo nt and entered into a lorg-term 1'6 JLT already holds a conservation easement on the property for working farm and habitat purposes. The group of conservation investors includes related parties to JLT, -7_ jEFFERSON LAND TR UST AIVDSUBSIDIARY Arotes to Consolidated Financial Statements For the Year Ended December 31, 2011 Note] - Continued purchase option Received - In 2009, JLT purchased the Tamanowas Rock Sanctuary with the help of the Jamestown SWallam Tribe and a low interest loan from the Bullitt Foundation (Note 6). The Jamestown S'Klallam Tribe paid $120,000 to JLT for an option to purchase the property which is anticipated to be exercised in 2012. At that time, JLT will pay in full the outstanding balance on the Buflitt Foundation loan with proceeds from the sale of the property to the Jamestown S'Klallarn Tribe and other potential conservation partners. The intention of the tribe and JLT is to protect the property in perpetuity for both 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). Contributions to JLT are deductible as allowed under Section 170(b)(I)(A)(vi) of the Code. JLT files income tax returns with the U.S. government, JLT is subject to income tax examinations for the current year and certain prior years based on the applicable laws and regulations. During the year ended December 31, 2011, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. 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, Comparative Amounts for 2010 - The financial statements include certain prior-year summarized comparative information in total but not by not asset class. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with JLT's financial statements for the year ended December 31, 2010, from which the summarized information was derived. Subsequent Events - JLT has evaluated subsequent events through April 3, 2012, 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 value, 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 I 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. -8- T I Notes 10 Consolidated Financial Statements Forth the Year Ended December 31, 2011 Note 2 - Continued Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2011 or 2010. Certi ples of pepgsit - 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 AT at year-end. FundsHe at Je rson Co nty CMmunity 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, Fair Values Measured on a Recurring Basis -l=air values of investments measured on a recurring basis at December 31 were as follows: F'air Value Aleasurements as of December 31, 2011 L)iroled Prices Significant in Active Other 5igniftal7t Markelsj6r Observable Unobservable Identical Assets Inputs Inputs Level 1). (Level 2) lei 2- rotal Certificates of deposit $ - $ 366,712 $ $ 366,712 Mutual funds- Fixed income mutual fund 36,480 36,480 Funds hold at Jefferson County Community Foundation ----56,085 56,085 Total $36 480 66,712 $ $6,085 459t277 Fair Value Measurements as qI'December 31, 2,010 Quoted Prices Signi flcant in Active Other signflicant A4arketsfor Observable Unobservable Identical Assets Inputs Inputs (Level I) (Level 2) T91al Certificates of deposit $ 150,879 $ 150,879 Mutual funds- Fixed income mutual fund 35,791 35,791 Funds held at Jefferson County Community Foundation 125,377 125,377 Total 0 $ 35,791 $ 160,879 1 , 125,377_ $ 312,,047 Notes to Consolidated Financia/Statements For the Year Ended Deceniber 31, 2011 Note 2 -Continued A reconciliation of the beginning and ending balances for fair value measurements made using significant unobservable inputs (Level 3) are as follows: 20.11. 2010 Beginning balance at January 1 $ 125,377 S 175,078 Interest income 4,349 2,464 Realizedfunrealized (loss) gain (5122) 16,620 Investment fees paid (3,234) (3,518) Withdrawals (65,285) --(65,467) Ending Balance at December 31 1 6EO86 =L==L2.5j377 investment return for the years ended December 31 consisted of the following: 2011 2010 Interest income S 16,819 $ 17,188 Realizedlunrealized (loss) gain (5A67) 16,930 Investment fees (3,234) ..... (3,518) 8,118 =L===30 6 ==Jft Note 3 - ,Pledges Receivable Pledges receivable at December 31 are to be received as follows: 2011'.. 2010 Less than one year 3 217,724 $ 154,930 Two to five years 252,910 287,210 Thereafter 23,,750, 56,888 494,384 499,028- Less discount to present value (0.6%) (5,160) Less allowance for uncollectible Pledges 414,M L==199,0 _28 SLR jE,FFERSON L,4ND TR USTAND SUBSIDL4R Y IV&jes 10 Consolidated Financial Statements For the year Ended December 31, 2011 Note 4 - Note Receivable On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLI 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 $618.71. The note matures on January 15, 2028, with an annual interest rate Of 5%. The note receivable at December 31 is to be received as follows: 2+011 2010. Less than one year $ 3,405 $ 3,239 Two to five years 15,454 14,702 Thereafter 62 944 671113 $ 81.f103 Oti`4 Note 5, Land, Conservation Easements; and Purchase Options Land, conservation easements, and purchase options at December 31 are summarized as follows; Conservation lands- Quirriper Wildlife Corridor Duckabush Oxbow Chimacurn Creek Bulls Forest Preserve Kilham Corner Snow Creek Estuary Gateway Donovan Greek Conservation easements Land purchase option Land held for sale- Red Dog Farm Tamanowas Rock Sanctuary _fir_ 2011 2010 $ 264,987 $ 261,803 180,000 180,0010 160,160 140,160 125,240 125,240 38,930 38,930, 86,000 1,500 85,000 1,500 47 44 52,500 333,760 600,000 600,000 $ 1,541,064 rrj777T=%VXMP 17 Notes to Consolidated Financial Statements For the Year Ended December 31, 21011 Note 6 - Long-Term Debt On December 18, 2007, JLT entered into a loan agreement with a commercial lender in the amount of $226.110. The loan bore interest at B.5%, and was 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 was secured by the Red Dog Farm property and an Assignment of Rents from the lease described in Note 8. The underlying property was sold during the year ended December 31, 2011. At that lime, this loan was paid off in full. On December 23, 2009, JLT entered into a promissory note in the face amount of $480,000 with a Washington non-profit corporation to purchase the Tamanowas Rack Sanctuary property. The note is secured by the property. The note has a stated interest rate of 1% and had 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 of $36,000 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 years ended December 31, 2011 and 2010. During the year ended December 31, 2011, the note was extended through December 31, 2012, at the same interest terms as the original note. The discounted amount due at December 31, 2011 and 2010, was $444,1000. Note 7- Retirement Plan In 2010, JLT began a Simpled 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 2011 and 2010 was $5,298 and $4,934, respectively, and is included in employee benefits on the consolidated statement of functional expenses. Note 8 - Lease Agreements On July 2, 2008, JILT entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease was renewed 000V`0 July 20110 and continues through June 2012. The agreement calls for monthly payments of $1,412 plus utilities. Rent expense totaled $17,678 and $17,358 for the years ended December 31, 2011 and 2010, respectively. - 12- jEFpERSON LAND TRUST ANA SUBSIDIARY ,Votes to Consolidated Financial Statements For the Year Ended December 31, 2011 Note 9 - Unrestricted Net Assets Unrestricted net assets consisted of the following at December 31: Note 10 - TetW( )rarily Restricted Net Assets Temporarily restricted net assets consisted of the following at December 31 2011 2010 Designated- Tamanowas Rock Sanctuary $ 480,000 $ 480,000 Red Dog Farm 53,865 333,760 QUIMper Wildlife Corridor 264,9,87 261,803 Duckabush Oxbow 180,000 180,000 ChimacUrn Creek 160,160 140,160 Bulls Forest Preserve 125,240 125,240 Kiiharn Corner 38,930 38,930 Snow Creek Estuary 86,000 1,500 Gateway 85,000 264,700 Donovan Creek 1,500 Conservation easements 47 44 Total designated 1,421,864 1,561,437 Undesignated 180,220 (130,320) Note 10 - TetW( )rarily Restricted Net Assets Temporarily restricted net assets consisted of the following at December 31 - 13- 2011 2010 Purpose restriction- For stewardship of Bulls Forest Preserve $ 78,643 $ 83,984 Forest Legacy program 53,865 For Stewardship and management services for Tamanowas Rock 19,008 36,341 To purchase Gateway land 99,525 To preserve and steward Chimacurn Dairy 41,850 Strategic plan 3,000 Other program restrictions 15,032 166,548 264,700 Time restriction- outstanding pledges 494,3,84 S fi6O,932- 499,028 Z63.724i L - 13- JEFFERSON LAND TR VS T A AW S UBSIDIA R Y Notes to Consolidated Financial Staletnents For the Year Ended December 31, 2011 Note 1`0- Continued Net assets of $197,821 were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and not assets of $164,559 were released due to the expiration of time restrictions for the year ended December 31, 2011, Mate 11- permanently Restricted Net Assets At December 31, 2011 and 2010, JILT had $30,996 and $20,226, respectively, of permanently restricted net assets. This is comprised of endowment investments (Note 12), the income of which is available to support general operations. Note 12 - Endowmentv 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 - JLT's Board of Directors has interpreted the Washington State Management of Institutional Funds Act (PMIFA) 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, JLT 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 JLT in a manner consistent with the standard of prudence prescribed by PMIFA, However, JLT has informed donors of its spending policy which states that no distributions will be made during the first five years of the fund's existence or until it reaches a threshold balance of W0,000. Since these milestones have not yet been reached, JLT adds all amounts earned to the permanently restricted balance. In accordance with PMIFA, 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: and The investment policies of JLT. -14- jEF F ERSON LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements For the year Ended December 31, 2011 Nole 12 - continmed As of December 31, 2011, endowment net assets consisted of the following: Temporarily Permanendy Unrestricted- Restricted Restricled Total Donor restricted endowment funds $ . $ - $ 30 996 1 30296 Endowment Net Assets, December 31, 2011 30.996 ..... ... . . .... 30.996 As of December 31, 2010, endowment net assets consisted of the following: lemporarily Permanently bInrestricled Restricted Restricted Toial Donor restricted endowment funds $ $ $ 20,226 $ 20,226 Endowment Net Assets, December 31, 2010 $ 2 A .....-..--M226 -15 - Notes to Consolidated Financial Statements For the Year Ended December 31, 2011 Note 12 - Continued Changes to endowment net assets for the years ended Demmbel' 31, 2011 and 2010. are as follows: Endowment Net Assets January 1, 2010 Endowment investment return- interest and dividends Realized and unrealized gains (losses) Total endowment investment return Contributions Endowment Net Assets, December 31, 2010 Endowment investment return- interest and dividends Realized and unrealized gains (losses) Total endowment investment return Contributions Endowment Not Assets, December 31, 2011 Temporarily Permanently Unresticted Restricted Restr ted Total - $ - $ 10,000 $ 10,000 194 194 32 32 226 226 $ 20,226 $ 20,226 791 791 (271) L2711 520 520 10,250 10,250 A 3%996 30, 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 PMIFA 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, 201' 1, 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 JILT 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 investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time. -16- jEpFERSON LA" TRUST AND SUBSIDIAR Y N,ptes to Consolidated Financial Statements For tke year Ended December 31, 2011 Note 12 - Continued Strategies Employed for Achieving Objectives - To satisfy its long-term rate-of-return ob*tives, JILT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond fundslETF's, equity mutual funds, equity TF's, and unconstrained bond funds, Spending Policy and How the Investment Objectives Relate to the Spending Policy - .ELT's spending policy intends that no distributions may be made from the Operations Endowment Fund for the first five years 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 portfollio 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 Mount result in the invasion of the original amounts donated. � � r � , � OA to! ql S! G! I- M N 0 CO 0) — t� C', t9 'GO) COIJ 100- 01 IM 0 10 2 <Y) 0040't v co CV) �; 00 CD M 00 to r- " 0) N to 0 't r- .Z3 a &d Ld (33 e C4 r': r': r6 (6 of N cz� to M m �(O (D M LO g w on Go 4a cry C14 ®D 0 P- 0 �00 LO V) N r- w cv m M m LO to V7 m m M M ;� V " 0 r, W M 9 a M 'm w N R 8 W N CD Vd a Nt Ct It Qq 't cl� IQ cq Ci t4 40 40, 40 co LO to 00 cv r— n cl IQ CIE Im — .0 44 �'u 0> co 0 0) 0 m 00 m N tip (n co 0) m co 0 N C6 Ln CD 0 N 0 01 m co cn LJ1 by "1 "1 to N 'v ICY 0 N LO covoo MONMNNM — VOLOO W, 44 4 X '0 B o py M CD u C: m x 0) CL r_ r_ w. C61 tit C E tu -0 C L mo c CL 0-0 C1 a W CL ® s 0 te CL Qy CIy x w 3 cn Jefferson land 1rust RESOLUTION )-'�bruam 19.'2019 WHEREAS, Jefferson Land Trust as 1hco0verning body herebv approves sponsorship of Conservation Futures Funding WFF) applications. and WHEREAS. JOTerson I.and Fru z is an upplicint or sponsor for more than one ("t F application. and dw CYF application process requiros dial Jefterson [,and'Frust PriOrilli4c its 1)Ka 1ectr, %,VjjERF.AS. Jefferson t—:anal 1'rust has been Nwrking since 2006 in panncrM,hl,n I.andWorks, Collaborati� e "hose mission is w keep the farms and tPrests of,feftel'SOII ouna%' Washington. working, jiroduc!iN e and Prot"JaMc, and MIERE AS. the Short F,3nulv Farm is indicated as priorjo,7 a,ricultural and habitat land III -it and regional plans. arid ihL: �nndi-ucr i,, e.igcr v) ':omplete the prq:wa AND se% c ra o c, %' I IERF AS, 256 acres of prime agric ili ura; land on the Short Farm. wil I he protected for prince dTric1e1tLIF,11 soils, riparian habitat of ("it it tWC U M F 1IJ N 2� 1k e1 L �V'Z! h; �3TTJ some associaled ji re-,fland an the ag,riculturaliv zoned acreage by an agricultural consenation eawmcni. and iship in pcqpetuik�, to inclu& IZ11AS. Ibis ilnporaw w'sel di rQquij-,: annual monitoring, maintenance. and mana-enient. AND ind I ruse hjs hues siitcc -Inership with Jefferson i I [ K+ A "�. J,:� H, " - on"'cnation Coum.% \k ashinLton Depanincui ofl 4'h "Ind wjklhleW North Olympic Salmon t-hv I i- aj ("anal ('00rdinating7 Council. the Jamestown ,"Kljtllam 1'ribe and WSI Coorwrati%e Fmew;ion MaCqLlire and restore critical salmon mi--Va�o �pajng. rcarin,-: x)d r% �abilzn in ihL� D wn uck'.thtv'h rip-114"An u%:'s Qstuary and WFIF.R[-.AS- then: professional nawralists and scimiisls haw recurvioLnd,:d t6X DUC�IJIPU ,'I Ri%er habitat protection be to provide further benefits for migralingsalmunids and oiher species. and WHEREAS, Ofhitdi-pr;lirit} idcntificd parcels in the Duchabush ripariati area Crow pail ire m ltlnjo%c11 rs iuch habi [at protection. floc Bern IsenAi re gory parcels ha\ C m)Llld PrOVidC s \ND [II RL.,\S. jeffersoll Land , I rust haN hccij mirking, since 19(43 in pwinership kith JeClerson oum.�- th�: ( itw ol pon Fovvnsend. %ashington fl'',,umnd Rcqn195c� >' i4� community and the U.S. 1-h lu d ',,V,Idhfu Sen ice to aquirc Wid lot by loi to pre.,;etlt: as 3 rn'[C anj naluri;l :swnwl,uter :--'Aled the QuimNr Wildlile Corridor, and and scienii,.7, ha\e recornmended that this eorridOT be ,,,j%jTjjLd to provide further heriefil for wildlife species, especialF, inigraiing, birds, and to pro\ ide additional wetland butlers, and 30'1'crswi I.and lruV I ,I _:'L 1 " 1, 2 WAFALAS. acq ui: ition ofbig le -prior i ty identified lots in ibc Quirilper )hVildlile Ccvrridor area p rom wx illing sellers, would pro% id,c such mildlife and wetland protection. and W1 II RE_AS_ tk'; important comnivait', asset twill require slewardship in perpctuity. to include annual maintenance. and management- aas,,gv flvd t'w in 17fic t)Amper %Vildh�'c w,vlwior. A"D Mana4gernerit WIJERE'� - Jefferson Land -1 rust has b,.cn working shiec 2MN in partnership ivkh \,,,01%'.C'q Watershed lw4iltitc lo ncqliire and rcstory (-rifical wEULCT'Shcd, riparian. cswarine and nearshoi%� lnibikat w Cr,- ,4, Athol, Hw- vatershed area. and AUEREAS. a consen-ation eascmem on the 80-acre Tarboo Forest vropert w\ould protect in Perpetuity critical forested %Natershed habilat trout subdi\;sion and Ac% ck?lmlww. and will conser,,zaLim) ofan addirional ! 60 acres of idiacem foreslktnd. AND W'llI-,'RLAS, Northwttna %V aters hed Institute has requested that Jefferson Land Frusi ,pomwr thcir Conservation Futures Funding i PPlicatiOD I'Or all ac,LlUkitit)n Of ea,,icrnent to be held b" I 1•wg, BE IT HERFBY RES(LVI-D that Jetl`erson Land I rust agreed at its 19. 20 1 Board of DircOoN meeling R) sponsor an application fisr ('i)nqe!R al 1011 Fulua'-s I-ondin "IF �ICLJLJT U -.j�j�' al` i, t( ,j consemation casement (in 11w Faim1% F,,mm and agreed Ow -die Shor Family Faust protection is the hiLllv ! Fimires Funding dtw to kmJi1voi,:r need. project duration and agricultural consmation and emmomic \,all-le.", l lac next highest prinrii\ is I'midin g liar the 1'lUCK31111.0 project sac aus'e it kwuld pro,,isle a % itill con1jecsixil\ tw.) jja,� DuckabtiNh project areas- one parcel is currently listed t6r ind it, rt;prcsunts as co I Ijj)(ij-,,jtj \ e effort M11h JeRCTSOn COUIII.w and klu ( hLffllsolliwll Oruw)i/ 6ons as ihcv work to pre: it C this signifiezim �sakmm 'I Ilk, Ihird Wrilk ;5 funding for the expwlAon ofille Quimper Wild)it'c Corridor. Vhc founh highest pnora% is fiu-ndine the Tarboo Forest prop r� to -suppowt, ow rTojci_,t partner North',ve st Watershed Institute in presvr% in critioal vwtershed mid riparian habital In the I arboo Creek area. Sit!nvd this I 9th daw o4'l­ebruar,\. 2013. S t C X C MOO FC. Fin. Rtd i F3 oard i i F brrec o rs jeffctswl 1-3nd I'm& Jefl_Qrson Land I rust Pauc 2 m"21