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Home My WebLink About011215_ra02�e vwn Public He 615 Sheridan Street Port Townsend, WA 98368 www. JeffersonCountyPublicHealth.org January 5, 2015 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: FROM: DATE: SUBJECT: Board of County Commissioners Philip Morley, County Administrator Tami Pokorny, Environmental Health Specialist II January 12, 2015 Agenda Request: Public Hearing and Possible Decision Regarding Supplemental Conservation Futures Funding for the 2014 Snow Creek Watershed Acquisitions Project STATEMENT OF ISSUE: The Conservation Futures Program (JCC 3.08) requires a duly noticed public hearing to be held as part of the public process of allocating conservation futures funding to worthy projects that protect public open spaces. On December 15, 2014, the county commissioners approved a public hearing notice to hear comments for (and against) amending the 2014 award of conservation futures funds (CF) to provide up to $73,000 in additional funds to the Snow Creek Watershed Acquisitions Project. The notice was published in the Port Townsend & Jefferson County Leader on December 24, 2014. Staff requests that the commissioners hold the public hearing on January 12, 2015 at 10:00 AM. ANALYSIS /STRATEGIC GOALS: Jefferson Land Trust is the project sponsor and originally requested $90,824 for the Snow Creek Watershed Acquisitions Project. The conservation futures application is summarized as follows: $90,824 towards the fee simple purchase of 15 parcels and a conservation easement on one additional parcel. The project encompasses total of 104 acres of vacant land, with the exception of one small cabin, and 3,750 feet (both sides) of the main stem of Snow Creek. The proposed match is $489,826 in the form of a grant from the RCO Salmon Recovery Funding Board, donated land value, and cash. Jefferson Land Trust is the project sponsor. Project location: Sec. 2, T. 28N, R. 2W and Sec. 11, T. 28N, R. 2W. On July 7, 2014, a public hearing and was held, and a resolution approved, to award up to $10,824 to this project. Staff believed at that time that the previously approved Winona Basin Bloedel Project had yet to be deducted from the available fund balance. In fact, the project cost had already been deducted, leaving additional funding available to award in 2014. July's Snow Creek award had been artificially reduced to stay within budget at the lower funding figure. An additional $73,000 is now potentially available to the project. If approved, this amount would increase the total Snow Creek Community Health Environmental Health Developmental Disabilities Water Quality 360- 385 -9400 360 - 385 -9444 360- 385 -9401 (f) Always working for a safer and healthier community (f) 360 - 379 -4487 award to $83,824. Previously approved CF allocations for the 2014 funding cycle are summarized in the following table. Cost Item Balance Remaining $228,000 Available to 2014 CF Cycle) 83,500 Tarboo Creek Conservation Project 144,500 Resolution No. 31 -13) 31,176 Quimper Wildlife Corridor 2014 113,324 (Resolution No. 28 -14) 10,824 Snow Creek Watershed Acquisitions 102,500 Project (Resolution No. 29 -14) 29,500 Staff and expenses 73,000 73,000 Proposed Snow Creek Watershed 0 Ac uisitions Supplement At its April 30, 2014 meeting, the Conservation Futures Citizen Oversight Committee voted unanimously that the Snow Creek project was worthy of funding. The June 9 agenda packet may be viewed online at: http: / /www.co.jefferson.wa.us/ commissioners /Agenda /2014 %2OAgendas /06 -09 -14 pdf. At its November 19, 2014 meeting, the Committee recommended that the BoCC award the additional funds to the project. This briefing packet contains: • The Snow Creek Watershed Acquisitions conservation futures application and supporting documentation • Memo from Stacie Hoskins, former Jefferson County Department of Community Development planning manager, regarding the project • Draft minutes of the November 19, 2014 CF Committee meeting • Snow Creek Watershed Acquisitions Project Resolution No. 29 -14 • Draft resolution with the full supplemental amount entered A grant agreement for the Snow Creek project between Jefferson Land Trust and the County will be developed by Environmental Health and submitted to the BoCC for approval to reflect the final award amount(s). FISCAL IMPACT: Outstanding acquisitions commitments, including the proposed supplemental award, total $129,824 and the outstanding O & M commitments equal $13,749. All pending acquisitions are anticipated to close in 2015: Duckabush Floodplain: $2,500 - Gregory Property Short Family Farm: $43,500 Snow Creek Watershed Acquisitions: $10,824 (plus additional $73,000 subject to approval) The explicit purpose of the Conservation Futures Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. RECOMMENDATION: 1) Review the project proposal brought forth by the Oversight Committee. Community Health Developmental Disabilities 360 - 385 -9400 360 - 385 -9401 (f) Always working for a safer and healthier community Environmental Health Water Quality 360 - 385 -9444 (f) 360- 379 -4487 2) Hold a public hearing on January 12, 2015, at 10:00 AM. Consider the written and oral testimony from the hearing and consider the supplemental funding resolution (with or without revisions) for the Snow Creek Watershed Acquisitions Project proposal and funding amount that the Commissioners may wish to approve. REVIEWED BY: Phili Mor e Administrator Community Health Developmental Disabilities 360 - 385 -9400 360 - 385 -9401 (f) Date Always working for a safer and healthier community Environmental Health Water Quality 360 - 385 -9444 (f) 360 - 379 -4487 S 201 4 Conservation futures Application and Score Sheet ti 2014 Jefferson County Conservation Futures Program Property Acquisition anti /or s N Operations and Maintenance Project Application i r v�� Please complete the following application in its entirety. Be sure to answer "N /A "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 379 -4498 or tpokorny co.iefferson.wa.us with questions. 7 ickground and Eligibility Information 1. Project "Title: Snow Creek Watershed Acquisitions — Irvin and Jenks 2a. Conservation Futures Acquisition Request: $90,824 b. Conservation Futures O &M Request: none at this time 3. Total Conservation Futures Request: $90,824 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed X Easement _ Other (Please describe below.) In whose name will the property title be held after acquisition? Jefferson Land Trust will hold title to the Irvin property with a Deed of Right to the State Recreation and Conservation Office, and the Jenks property will continue to be privately held with a conservation easement in place. 5. Applicant Information Name of Applicant or Organization: Jefferson Land Trust Contact: Sarah Spaeth Title: Executive Director Address: Executive Director Phone: (360) 379 -9501, ext. 101 Fax: (360)379 -9$97 Email: (364) 379 -9541, ext. 101 Fax: (360)379 -9897 b. Sponsor Information: (if different than applicant) Same 2014 o nservutian Futures Applicoian aural Score Sheet This application was approved by the sponsor's legally responsible body (e.g., board, council, etc.) on February 18, 2014. 7. Site Location Street Address or Description of location: Snow Creek Ranch, west of Hwy. 101, NW of Crocker Lake, S of Hwy. 104 intersection Driving Directions from Port Townsend: Head south on Highway 20. Turn south (left) onto Highway 101 at Discovery Bay. South of the 104 intersection, turn west (right) into the Snow Creek homes development. Section: Township: _Range: Irvin — S2 T28N R2W Jenks S11 T28N R2W Assessor's Parcel Number(s): Irvin Property - # 802 024 001; 995 400 040, 035, 025, 049, 058, 057, 059, 028, 037, 042, 054, 056, 113, 114 (15 parcels) Jenks Property - 802 111 001 8. EXISTING CONDITIONS New Site: Yes X No Number of Parcels: 2 properties — 16 tax parcels Addition to Existing Site: Yes No Acres to Be Acquired: 104 Total Project Acreage (if different): 400 + in proiect area Current Zoning: Rural Residential 1:5 Existing Structures/Facilities Jenks — small vacation cabin Any current covenants, easements or restrictions on land use: none that we are aware of Current Use: Irvin property — vacant land Jenks property — one small vacation cabin, otherwise vacant Waterfront (name of body of water): Snow Creek Riparian Shoreline (linear feet): 3750" of main stem Snow Creek in- stream riparian and upland habitat. Owner Tidelands /Shorelands: 9. Current Property Owner X is _is not a willing seller. 2 t , 2014 Conservation }Futures Application and Score Sheet 10. 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, trails, and open space. Describe the use planned for the site, any development plans after acquisition (including 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. Jefferson Land Trust and Chumsortium partners (includes Washington Department of Fish and Wildlife North Olympic Salmon Coalition, Jefferson County Conservation District, Hood Canal Salmon Enhancement Group, Hood Canal Coordinating Council, Jefferson County, WSU) have been working for years to preserve and restore important habitat in the Salmon and Snow Creek watersheds located south of Discovery Bay. As of early 2014, nearly 400 acres of Discovery Bay Estuary habitat, Salmon and Snow Creek habitat and farmland of the Discovery Bay valley are permanently preserved and major restoration activities have been accomplished. Chumsortium project partners identified the Irvin and Jenks properties, located just northwest of Crocker Lake as important for permanent protection and restoration efforts for migrating salmon species, water quality and other wildlife habitat in this larger watershed project area. Numerous salmon species utilize the habitat of Snow Creek that flows from the foothills down through the Jenks property, then onto the Irvin property on its way north to Discovery Bay. The Irvin property includes the upper end of the historic endangered Summer Chum distribution. The Snow Creek riparian corridor connects marine waters and estuary with upland forests, an important connection now and in the future as climate changes and species move. The Jenks property is directly adjacent and downstream from Department of Natural Resources forestland in the foothills of the Olympics, and is characterized as a gently- sloping valley - -200' deep along about 1l4 mile of Snow Creek with mixed second - growth forest including spruce, maple, alder, western red cedar, Douglas fir and other native species. There are open grassy areas at the northern end of the Jenks property, with a mixture of native and non - native grasses and shrubs, and going upstream the gradient increases. There is a relatively small open area where a vacation cabin is located. The majority of the adjacent downstream Irvin property is relatively level floodplain made up of grassland and alder, with patches of blackberry, equisetum, rush, sedge, etc., and the area close to Snow Creek is primarily big leaf maple and native understory with occasional Douglas fir, western red cedar, alder, and Himalayan blackberry. The upland slopes are fairly mature mixed - species second - growth forest. Both properties include tributaries to Snow Creek, some of which are seasonal. The Irvin property includes 15 platted lots and is currently undeveloped. The landowner has been eager to sell the property for several years and has listed it on and off. The Jenks property is listed for 2014 Conservation Futures :4PPlicction and Score .Sheet sale, and the landowner is willing to sell 4 of the 5 development rights on her property that are possible under current zoning. This residential development could significantly degrade existing habitat for salmon. Jefferson Land Trust proposes acquisition of the majority of the Irvin property for permanent protection of the floodplain and riparian habitat from development, and some replanting of the riparian buffer of Snow Creek. Purchase of a conservation easement on the Jenks parcels would reduce the development potential from five currently allowed building rights to one on this property. This would reduce the threat of habitat degradation and water quality impacts from development. These acquisitions would result in 102 acres of preserved property and reduce overall development from 20 potential home -sites to one. A habitat assessment conducted by the Hood Canal Coordinating Council biologist has indicated that both properties would benefit from understory planting of conifer species to provide year -round shade and better long run woody debris for creating pools and stream complexity. The project fits well with the Hood Canal Coordinating Council Strategy for Salmon Recovery. Critical habitat acquisition is number one on their sequenced project lists for both Salmon and Snow Creek watersheds. Jefferson Land Trust submitted a grant application in 2013 to the State Salmon Recovery Funding Board (SRFB) for funding for these Snow Creek acquisitions. The project ranked high enough for funding, though we are still waiting on final grant approval and should know by mid -March if the project has been awarded funding. If it does not receive funding in this grant cycle, Jefferson Land Trust requests that this application be retracted. The three top objectives for this project are: 1) Secure SRFB grant funds for the project. 2) Acquire high priority threatened properties from the willing sellers. 3) Permanently protect and restore the properties as part of the Snow Creek project area. 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 Freak out appraisals and estimated acquisition costs by parcel. a. Estimated or Appraised Value of Properties) to be Acquired: $500,000 Irvin - $350,000 Jenks Conservation Easement - $150,000 b. Total Estimated Acquisition- related Cost (see Conservation Futures Manual for eligible costs): $80,650 c. Total Operation and Maintenance Cost: Not included d. Total Project Cost: $580,650 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition- related costs, general description of operation and 4 2014 Conservation Futures Application and Score Sheet maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): The land estimate for the fee simple acquisition of the Irvin property is based on the asking price minus the estimated value of several non - riparian lots that are not being proposed for acquisition. Land acquisition costs for the conservation easement were estimated based on past experience with project development. Full appraisals and appraisal reviews will be conducted according to SRFB grant requirements prior to finalizing negotiations and acquisitions. Anticipated project related costs include appraisal and appraisal reviews, title insurance and closing costs, survey, baseline documents, taxes and recording fees, project management, legal costs. In addition to the Land Trust's usual monitoring, we will be conducting restoration with project partners, though the restoration costs are not included in this grant application and will be funded through the SRFB grant. See attached Project Cost Table 5c(,j)Erti 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. As the sponsor organization, Jefferson Land Trust will be coordinating the contribution of the match, the majority of which will come from the State Salmon Recovery Funding Board grant. Additional match will come from land donation value and possible cash contributions. The Land Trust will assume the restoration responsibilities with our Chums partners and will conduct long term monitoring and maintenance. At this time we are not requesting CFF O & M funding, though may in the future. c. Matching Fund Estimate Acquisition O &M % Conservation Futures Funds Requested $90,824 16% Matching Funds /Resources* $489,826 84% Total Project Acquisition Cost 8580,650 100% * If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. d. Source of matching Amount of Contribution If not, Contribution If not, funds /resources contribution approved? when? available now? when? SRFB $370,854 Yes No 3/19/2014 Yes No 0512014 Land Donation $90,922 Yes No summer 2014 Yes No closing Cash Contributions $28,050 Yes No summer 2014 Yes No closing 2014 C."onservation Funeres Applicuion and Score Sheet NOTE: Matching.funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation q1 property or a property right will be considered as a matching resource. Donation afresources.for on -going maintenance or stewardship ("in-kind" contributions) are not eligible as a match. 2 a. Sponsoring agency X is _is not prepared to provide long -term stewardship (maintenance, up -keep, etc.) for the proposed project site. Jefferson Land Trust will conduct stewardship, monitoring and maintenance of the property along with the other parcels in the Salmon and Snow Creek watersheds that we own or are protec °ed with conservation easements. Jefferson Land Trust's stewardship program includes monitoring (at least annually) of protected properties and easements, upkeep and maintenance (trash removal, signage, invasive plant control) and restoration efforts (tree planting, trail building, etc.), Staff and trained community volunteers will conduct monitoring, and maintenance efforts. Jefferson Land Trust 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. Jefferson Land Trust will be working with Chumsortium partners for small -scale enhancement including understory conifer planting on the Irvin and Jenks properties. The proposal includes replanting of the riparian area on the both properties with spruce and cedar to ultimately provide year round shade and large woody debris for Snow Creek. Planting efforts will be conducted by Jefferson Land Trust and possibly Washington Conservation Crew with the oversight of Chumsortium restoration partners. The replanting effort will be funded through the State Salmon Recovery Funding Board grant. 3 a. Describe the sponsoring agency's previous or on -going stewardship experience Jefferson Land Trust continues to implement a rigorous stewardship program for the roughly 12,300 acres it currently stewards in Jefferson County. These stewardship obligations include properties protected with 54 conservation easements, Jefferson Land Trust preserves and land owned by partner organizations and agencies such as Washington State Parks, Jefferson County, the City, Washington Department of Natural Resources and the Hoh River Trust. The Land Trust 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 25 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 Yes, the sponsor and /or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: Jefferson Land Trust has been the sponsor organization on numerous applications that have received Conservation Futures funds, and has also been the applicant on a number of applications as well. These projects include: Sunfield Farm, 2003; Quimper Wildlife Corridor, 2004; East Tarboo Creek 6 1014 Conservation Futures Application and Score Sheet Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007; Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Ruck 2010, Quimper Wildlife Corridor 2010; Tamanowas Rock 2010; Chimacum Creek Carleson 2011; Winona Basin - Bloedel 2011; L. Brown 2012, Boulton Farm 2012, Short Family Farm and Winona Basin - Bloedel Phase 11 2013. Jefferson Land Trust involvement was only made possible by the landowners interested in preserving the conservation values of their properties, either through outright sale, sale of conservation easements and donation of either as match. Community support and other public funding sources as match have also been a demonstration of the value of the approved projects. 4 a. Property _-_-can %cannot feasibly be acquired in a timely fashion with available resources. b. Necessary commitments and agreements _are X are not in place. c. All parties _are X are not in agreement on the cost of acquisition. If °not" to any of the above, please explain below. Jefferson Land Trust submitted an application to the State Salmon Recovery Funding Board (SRFB) for funding acquisition of the Irvin property and for purchase of an easement on the Jenks property. The project ranked high enough at the state level for funding in 2013, however funding allocations have been held up due to a reprioritization process currently underway with our local lead entity the Hood Canal Coordinating Council. We expect to know if SRFB funding will be released sometime later this spring. Once we have secured the SRFB funding we will initiate the appraisals necessary to determine the fair market value of the acquisitions. If we do not receive the SRFB funding for this project, Jefferson Land Trust requests that this application be removed from consideration in the 2014 CFF grant cycle. S. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the website of the plan if' available or include the plan with this application. _complements an adopted open space or conservation plan, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. ,is a stand -alone project. The Irvin /Jenks properties are located in the Salmon and Snow Creek project area. This area has been the focus of protection and restoration efforts on the part of Chumsortium partners since 2000 and is identified in the Summer Salmon Chum Recovery Plan which can be located at the following website. http: / /www. nwr. noaa. gov /Salmon- Re(,,overy- Planning /Recovery- Domains /Puget- Sound /HC- Recovery- Plan.cfm The Hood Canal Coordinating Council 2013 3 -year work plan has stated that "Working with volunteer landowners, (to) develop high priority land acquisitions that either protect high quality habitats at risk of conversion or impacted habitats which require restoration that is incompatible with current land uses or landowner desires" as a current action item. In addition, the Snow Creek watershed is identified on the Jefferson County's Comprehensive Plan map as Parks, Recreation Areas, Conservation Easements and Areas for Future Cooperative Preservation Efforts: http: / /www.co.befferson.wa.us /idms /pdfs /r)arks99.pdf. Futures 20� f Conseti J ation Futures Applicctlon and Score Sheet In JLT's county Conservation Plan, this area has four priority habitat indicator layers (the maximum). The plan is located on the JLT website www. save land.org. The Nature Conservancy's Ecoregional Assessment categorizes this as both an aquatic and terrestrial Ecoregional Portfolio site (defined as areas of exceptional biological value and most likely for conservation to succeed). A copy of the plan can be downloaded from http : //east.tnc.org /assessment/2/ 6. Conservation Opportunity or Threat: a. The proposed acquisition site X does _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. Both the Irvin and Jenks properties are currently for sale and have been listed on and off for 4 years. Both are zoned for Rural Residential development at one residence per 5 acres, and pertions of the Irvin property were platted much more densely prior to adoption of zoning by Jefferson County. The result is that the properties technically support future development of 20 home -sites most with ready access and PUD water availability. Some sites overlook Crocker Lake and all are located directly adjacent to Highway 101, a Washington State Scenic Byway, making the worksite an attractive development site. It is rare to find adjacent properties for sale that have as much valuable riparian habitat for multiple salmon species. 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. Ifa,1firmative in any of the above, please describe below, and cite or provide documentation of species ' use. t The project area provides important for several salmonid species in various life stages, as indicated in the table below. All the salmonid species present are listed on the Washington Department of Fish and Wildlife Priority Habitat and Species list - ittp: ilwww. wdfw .wa.gavlconservatian/phsilist /. Both coho and endangered steelhead spawn in this stretch of Snow Creek, spotted owls have been recorded in the area, and bear, deer, elk, bobcat, coyote, cougar, trumpeter swans, and bald eagles are known to be here. Species Life History Current ESA Coverage Life History Present (egg, Population (Y /N) Target (egg, � Juvenile, adult Trend �� decline,veniie, adult ._,. ' See, for example, http:l/ www. dnr. wa. aov /researchscience/ topics /naturalheritage/p a esiainp nh asnx http://www.wdfw.wa.gov/conservatiori/phs/list/ http: / /www] dnr wa gov /nhplrefdesk/plants html http• / /www l dnr wa gov /nhp /refdesk/ up bs/wa ecological s •std ems m f 8 2014 Conservation Futures application and Score Sheet 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. Not applicable 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 —local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The Snow Creek watershed, and Discovery Bay at its mouth, has regional significance, providing habitat, clean water, and outstanding scenery. As an element of the Hood Canal- Strait of Juan de Fuca salmon recovery effort, the Snow /Salmon Watershed Fish and Wildlife Management Plan was developed by the Snow /Salmon Technical Advisory Group (WDFW, DNR, JCCD, NOSC, JILT, HCCC, TU, Jefferson County, WSU, JSKT, PGSKT, Point No Point Treaty Council, several trails group, and the Governor's Puget Sound Action Team). This group's vision is "A thriving ecosystem consisting of old- growth forest and riverine system with functioning floodplain, channel migration zones, and riparian processes that provide habitat for self - sustaining populations of native plants and animals. This area will coexist with human use of the watershed, characterized by thriving agricultural lands, managed forests, and residential communities taking an active interest in providing stewardship of the ecosystem." 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.2 The Jenks property will remain in private ownership, and there is potential for education and interpretive displays on the Irvin property that is close to Hwy. 101, but access will need to be negotiated with the Snow Creek Homeowners Association as they own the access route. 11. The proposed acquisition — includes historic or culturally significant resources and _ is registered with the National Register of Historic Places, or an equivalent program. ` The words '`education" and -interpretation" are interpreted broadly by the CF Committee. Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 0 stable, rising) Summer Chum Egg, Adult Rising Y E Adult Coho Egg, Juvenile, Adult Steelhead Juvenile, Adult Cutthroat trout Egg, Juvenile, Adult Stable Decline unknown N Y Egg, Juvenile, Adult Juvenile, Adult N Egg, Juvenile, Adult 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. Not applicable 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 —local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The Snow Creek watershed, and Discovery Bay at its mouth, has regional significance, providing habitat, clean water, and outstanding scenery. As an element of the Hood Canal- Strait of Juan de Fuca salmon recovery effort, the Snow /Salmon Watershed Fish and Wildlife Management Plan was developed by the Snow /Salmon Technical Advisory Group (WDFW, DNR, JCCD, NOSC, JILT, HCCC, TU, Jefferson County, WSU, JSKT, PGSKT, Point No Point Treaty Council, several trails group, and the Governor's Puget Sound Action Team). This group's vision is "A thriving ecosystem consisting of old- growth forest and riverine system with functioning floodplain, channel migration zones, and riparian processes that provide habitat for self - sustaining populations of native plants and animals. This area will coexist with human use of the watershed, characterized by thriving agricultural lands, managed forests, and residential communities taking an active interest in providing stewardship of the ecosystem." 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.2 The Jenks property will remain in private ownership, and there is potential for education and interpretive displays on the Irvin property that is close to Hwy. 101, but access will need to be negotiated with the Snow Creek Homeowners Association as they own the access route. 11. The proposed acquisition — includes historic or culturally significant resources and _ is registered with the National Register of Historic Places, or an equivalent program. ` The words '`education" and -interpretation" are interpreted broadly by the CF Committee. Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. 0 1014 Conservation futures Application and Score Shur _ is recognized locally has having historic or cultural reso urces. is adjacent to and provides a buffer for a historic or cultural site. Ifuffirmative in any gfthe above, please describe below, and cite or provide documentation of the historical or cultural resources. None known 12a. Describe the extent and nature of current and planned silvicultural use of the proposed acquisition. Please cite or provide documentation of existing or planned silvicultural activities including forest management plan(v) or, forest ecosystem restoration. As mentioned earlier, replanting of the riparian area on the both properties with spruce and cedar will take place to ultimately provide year round shade and large woody debris for Snow Creek. Once a healthy riparian forest exists that includes confers, no additional management is planned. b. Describe any participation by current property owner in silviculture conservation programs, including the program and nature of the involvement. Not applicable 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 "report card" that will be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which O &M funds are expended. r_ is lnitials3�;3�L 3 `rDate 14. If, three years after the date funding is approved by the Board of County Commissioners, 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 does not obtain the necessary matching funding within three years. Sc, InitialsDate 10 Snow Creek Watershed 2014 Conservation Futures Program Acquisition Application Total Estimated Project related costs - Irvin Timeline Est. Cost Land to be acquired — Irvin Fall 2014 $350,000 Appraisals, Appraisal reviews, surveys, Cultural Resources Assessments, Phase 1 assessments July 2014 $21,550 Baseline and Stewardship Plans Fall $4,000 Title insurance and closing costs, taxes, etc Fall 2014 $3,000 Project Management, Admin and legal fees Fall 2014 $18,950 Total Irvin Project costs $397,500 mTotal Estimated Project related costs - Jenks Timeline Est. Cost Land to be acquired - Irvin Fall 2014 $150,000 Appraisals, Appraisal reviews, surveys, Cultural Resources Assessments, Phase I assessments July 2014 $18,000 Baseline and Stewardship Plans Fall $4,000 itle insurance and closing costs, taxes, etc Fall 2014 $2,000 Project Management, Admin and legal fees Fall 2014 $8,700 Total Jenks Project costs r 182,700 rand Total Project Costs 580.650 IMNUM, Landowner Information Name of Lanciowne- Landowner Contact Information: Ms. Kate Jenks -ontact Mailing Address: P.O. Box -'05 Port Tcwnserd, Wa. 98368 Contact F--Mail Address 4 Property Address or Location. 67 Foothill Dr. Quilcene Wa, 1.1 am the legal owner of property described in this grant application. 2.6 am aware that the project is being proposed on my property. 3,If the grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of Project implementation.. /2 Landowner Signature}.�IYti Date ?roject Soonsor Information Project Name- Snow Creek Watershed Acquisition and Restoration. Project Applicant Contact Information, jeffersor. Land Trust Executive Director Ms. Sarah Spaeth Mailing Address' 1033 Lawrence St. Port Townsend, Wa. 98368 E-Mail Address. ed@savelamorc; Salmon Recovery Grants Manual 18 ® January 2013 Landowner Acknowledgement Form Landowner Information Name of Landowner: Mr. Philip C. Irvin Landowner Contact Information: Contact Mailing Address: 9033 30th Ave. SW Seattle Wa. 98126 Contact E -Mail Address: philip.G,irvin @grnail.tom Property Address or Location: Snow Creek Ranch Quilcene Wa. 1.1 am the legal owner of property described in this grant application. 2.1 am aware that the project is being proposed on my property. 3.1f the grant is successfully awarded, I will be contacted and asked to engage In negotiations. 4.My signature does not represent authorization of project iMplementation. VJ Landowner Date Project Sponsor information Project Name: Snow Creek Watershed Acquisition and Restoration Project Applicant Contact Information: Jefferson land Trust Executive Director Ms. Sarah Spaeth Mailing Address: 1033 Lawrence St. Port Townsend, Wa. 98368 E -Mail Address: edr7asaveland.org Salmon Recovery Grants Manual 18 . January 2013 r Py � � -, � C reek Sal 101 Jenks Maynard y �� r.a Property Irvin Property 'al�IilOIlt Protection in Progress Uncas JLT Protected National r Forest; Federal - Other State Conservation Other State; f Marinas 101 Ea�i County/Mun... Parks Other County /Mun... (, Land O 101 Petet on Lake E IOd ll Crocker Lake I Proposed Protections it 2.500 S.DI)0 So.0Fe Feet Snow/Salmon watershed For informational purposes only. All data represented are from varying 2014 Conservation Futures Application sources and approximate. Approximately 104 acres Map created in February, 2014 N Irvin Property Publicly protected land Streams County Parcels Irvin Proposed Acquisition approximately 74 acres 0 312.5 625 1,250 Feel 2011 Aerial Image (NAIP) For informational purposes only. All data represented are from varying sources and approximate. Map created in April, 2013 N I Jenks Property Publicly protected land Streams County Parcels 0 250 wo ,.000 Jenks Proposed rOLt /� 9 m 2011 Aerial Image (NAIP) Conservation Easement ten} For informational purposes only. g All tr G. i. data represented are from varying approximately 28 acres sources and approximate. Map created in February, 2014 SNOW CREEK PROJECT CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2014 Snow Creek Irvin pasture and riparian buffer Snow Creek - Jenks Entrance to Jenks from North INTERNAL REVENUE SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE MONTEREY PARK, CA 91755 -7406 Date : MAY p 3 1994 JEFFERSON LAND TRUST C/O 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 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(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(a)(1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a)(1) organization. if we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely- yours, P / C . ""°r, Richard R. Orosco District Director Letter 1050 (DO /CG) internal Revenue Service District Director P 0 BOX 2350 ROOM 5127 ATTN: E.O. LOS ANGELES, CA 900532350 Date: MAY 8, 1990 JEFFERSON COUNTY LAMO TRUST 1322 WASHINGTON PO BOX 1610 PORT - TOWNSENT, WA 98368 Dear Applicant: Department of the Treasury Employer Iden t i f i ca L i an Number: 91-1465078 Case Mumber: 950114110 Contact Pei-son. JOSEPH CUNHA Contact Telephone Number: (213) 894• -41'10 Accounting Period Ending: December :31 Foundation Status Classification: see attached Advance Ruling Period Begins: April 7, 1990 Advance Ruling Period Inds: Dec. 31, 1993 Addendum Applies: none Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under section 501(x) of the Internal Revenue Code as an organization described i►i section 501(c)(3). Because you are a newly created orgarritation, we are not now making a final determination of your foundation status under :section 509(a) of the Code). However, we have determined that you can reasonably be expected to by a public- ly supported organization described in sections 509(a)(1) and ]70(b) (1) (A) (vi). Accordingly, you will be treated as a publicly supported organization, and not as a private foundation, during an advance ruling period. This advance ruling period begins and ends on the dates shown above. Within 90 days after the end of your advance ruling period, you must submit to us information needed to determine whether you have wiet the require - ments of the applicable support tort during the advance roiling period. If yoei establish that you have been a publicly supported organization, you will be classified as a section 509(x)(1) or 509(x)(2) organization as long as you con- tinue to most the requirements of the applicable support test. If you do not meet the public support requirements during the advance roiling period, you will be classified a:s a private foundation for future periods. Also, if you are classified as a private foundation, you will be tre:atud as a private foundation from the date of your inception for purposes of sections 507(d) and 4940. Grantors and contributors may rely on the determination tluiit you arc., riot a private foundation until 90 days after the and of your advance ruling period. If you submit the required information within the 90 days, grantors and contri- butors may continue to rely on the advance determination until the Service Letter t045(CG) -2- JEFFERSON COUNTY LAND TRUST makes a final determination of your foundation status. If notice that you will no longer be treated as a publicly supported or- ganization is published in the Internal Revenue Bulletin, grantors and con- tributors may not rely on this determination after the date of such publica- tion. In addition, if you lose your status as a publicly supported organiza- tion and a grantor or contributor t-eas responsible for, or was amare of, the act or failure to act, that resulted in your loss of such'staL•us, that per son may not rely on this determination from the dates of the act or failure to act. Also, if a grantor or contributor learned that the Servico had given notice that you would be removed from classification as a publicly supported organiza- tion, then that person may not rely on this determination as of the date such knowledge was acquired. If your sources of support, or your purposes, character, or method of operation change, please lot us know so wo can consider the effect of the change on your exempt status and foundation status. In the case of an amend meet to yoiir organizational document or bylaws, p l vase ssencl us a copy of the amended document or bylaws. Also, you should inform us of all changes in your nave or address. As of January 1, 1984, you are liable For taxes i.inder the Federal Insur- ance Contributions Act (social security taxes) on 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 unemployment Tax Act (FUTR). Organizations that are not private foundations are not subject to the pri- vate Foundation excise taxes under Chapter 42 of the Code. Flosiover, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment, or other Federal !:axes, please•, let us know. Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the appli- cable provisions of sections 2055, 2106, and 2521 of tho Code. Contribution deductions are allowable to donors only to the extant: that their contributions are gifts, with no consideration received. Ticket pur- chases and similar payments in conjunction with Fundraising events may riot necessarily qualify as deductible contributions, depending on the cirrum• stances. See Revenue Ruling 67 -246, published in Curnulative Bulletin 1957-2, on page 104, which sets forth guidelines regard irig this deductibility, as chari - table contributions, of payments made by taxpayers for admission to or other participation in fundraising activities for charity. You are required to file Form 990, Return of Organization Exempt From Income Tax, only if Your gross: receipts each year are norrsaaIIy more than $25,000. However, if you race ive a. Form 990 package in the mail, please file the return even if you do not exceed the gross receipts test. If you are not Letter L045(CG) -3- JEFFERSON,•COUNTY LAND TRUST required to file, simply attach the label provided, check the box in the head- ing to indicate that your annual gross receipts area 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 and of your annual accounting period. 11 penalty of $10 a day is charged when a return is filed late, unless there is reasonable cause for the delay. Homovor, the maximum penalty charged cannot exceed $5,000 or 5 por- cant of your gross receipts for the year, whichever is less. 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 unless you are subject to the tax on unrelated business income under section '.ill. of the CodFe. If you are subject to this tax, you must file an income tax return on Form 990 -7, Exempt Organization Business Incomes Tax Return. In this IetLer ru± arc not determining whether any of your present or propossctd activities are unre- lated trade or business as defined in section 513 of the Code. You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records. If you have any questions, please contact the person ►•those nano and telephone number are shown in the heading of this letter. Enc I ossure (s3) Form 872 -C incerely yours, e Michael J. guinn District Director Letter 1045(CG) QM JEFFERSON COUNTY NANO TRUST FOUNDATION STATUSi 170(b) (1) (A) (vi ) and 50S (a) (1) I -attar t045(CGI 0 1+ Form 872 -C (Rev. March 1985) Department of the Treasury-- Intemal Revenue Service Consent Fixing Period of Limitation Upon Assessment of Tax Under Section 4940, of the Internet Revenue Code OMB No. 1645-006 rapires3-31.89 To be usedwlthFarm 1023. Suhmlt In (See Form 3023 instructions for Part IV, tine 3.) duplicate. 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(bX1KA)(vi) or section 509(a)(2) during an advance ruling period, JEFFERSON COUNTY LAND TRUST ........................Exact legit name oforgan .....lratlon) .. _ ...... ........... . and the District Director P.O. BOX 1610, PORT TOWNSEND, WA 98368 of Internal Revenue .......................................... ............................... (Number, street, city or town, state, and ZIP code) Consent and agree that the period for 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 end of the first tax year. However, if a notice of deficiency. in tax for any of these years is sent to the organization before the period expires, then the time for making an assessment will be'further extended by the number of days the assessment is prohibited, plus 60 days. Ending date of first tax year... ..... 2 / 31 / 8 9 JEFFERSON'COUNTY LAND TRUST Signature hp- District Diracter Nancy cott Roth r . .j & t 2/6/90 MICHAEL. J. QU!lVIV I Date MAY p By low / X _— GROUP MANAGER, EO-4 For Paperwork Reduction Act Notice, see ,Page 2 of the Form 1023 Wttuctlans. Jefferson Land Trust Summary 2014 Budget for JLT 2014 Operating Budget Income Unrestricted Capital Funds for Programs and Values of Conservation Easements $ 87,500 Restricted Capital Funds, Grant Funds from Gov'I and Private Sources $ 155,970 Endowment Funds $ 3,700 Operations Income Annual Contributions $ 128,400 Multi -Year Contributions (Pledges) $ 95,000 Special Events (Rainfest and other ticketed events) $ 114,500 Fee for Services $ 117,550 Investment Income $ 6,050 Other $ 25,200 Total Operations Income $ 486,700 Total Income $ 733,870 Expenses Cost of Goods Sold $ 225,986 Administrative Expenses $ 108,510 Payroll Expense $ 397,670 Total Expense $ 732,166 Net Income $ 1,704 ROSTER BOARD MEMBERS MOORE, Steve - President REID, David - VP MACHETTE, Michael - Treasurer LAMKA, Kathryn - Secretary DIEFENDERFER, Heida HULTMAN, Glenda KEISTER, Gary TYLER, Joanne VAN CLEVE, Brie AFF SPAETH, Sarah - Executive Director BAIER, Ann - Deputy Director CLENDANIEL, Carrie - Conservation Assistant KINGFISHER, Erik - Stewardship Director NEWMAN, Nancy - Conservation Associate ROBERTSON, Caroline - Outreach Director SMITH. Shelby - Development Director WACKER, Kathleen - Finance Assistant JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Financial Statements For the Year Ended December 31, 2012 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 Schedule of Functional Expenses Pug( 1 -2 3 4 5 6 -18 19 Independent A uditors'Report Board of Directors Jefferson Land Trust and Subsidiary Certified Public fort Townsend, Washington Accountants We have audited the accompanying consolidated financial statements of Jefferson Land Trust and and Consultants Subsidiary (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31, 2012, and the related consolidated statements of activities and changes in net assets and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial.Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibiiity Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. CLARK NUBER 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, 2012, 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 Certified Public States of America. Accountants Report on Summarized Comparative Information and Consultants We have previously audited JLT's 2011 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated April 3, 2012. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2011, is consistent, in all material respects, with the audited financial statements from which it has been derived. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The consolidated schedule of functional expenses is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. dead. ` l"4. '0.5 Certified Public Accountants March 19, 2013 -2- JEFF'ERSONLAND TRUST AND SUBSIDIARY Consolidated Statement of Financial Position December 31, 2012 (With Comparative Totals for 2011) Land, conservation easements, and purchase options- Habitat land 2012 2011 Assets 25;048 25,048 Cash and equivalents $ 333,764 $ 284,193 Investments (Note 2) 467,802 459,277 Accounts receivable 66,205 51,840 Pledges receivable (Note 3) 515,020 484,224 Note receivable (Note 4) 78,391 81,803 Prepaid expenses 1,479 1,679 Land, conservation easements, and purchase options- Habitat land 930,937 660,437 Working land 25;048 25,048 Open space land 263,832 256,332 Conservation easements 49 47 Land held for sale 62,243 600,000 Total land, conservation easements. and purchase options (Note 5) 1,219,866 1,541,864 Furniture and equipment, net of accumulated depreciation of $15,798 (2011 - $12,996) 8,869 11,671 Total Assets $ 2,691,396 $ 2,916,551 Liabilities and Net Assets Accounts payable $ 8,810 $ 8,863 Accrued expenses and deferred revenue 53,433 49,676 Purchase option received 120,000 Long -term debt (Note 6) 444,000 Total Liabilities 62,243 622,539 Net Assets: Unrestricted (Note 9)- Undesignated 682,369 180,220 Board designated 1,219,866 1,421,864 Total unrestricted net assets 1,902,235 1,602,084 Temporarily restricted (Note 10) 691,453 660,932 Permanently restricted (Note 11) 35,465 30,996 Total Net Assets 2,629,153 2,294,012 Total Liabilities and Net Assets $ 2,691,396 $ 2,916,551 See accompanying notes. -3- JEFFERSON LA ND TRLiSTAND SUBSIDIARY Consolidated Statement of Activities For the Year Ended December 31, 2012 (With Comparative Totals, for 2011) Expenses: Program 1,281.690 Temporarily Permanentl)� General and administrative 98,117 98,117 Unrestricted Restricted Restricted 2012 Total 2011 Total Revenue and Gains: 1,466,748 1,466,748 945,465 Change in Net Assets 300,151 30,521 Gifts and contributions $ 82,576 $ 295,358 $ 4,469 S 382,403 $ 347,156 Fair value of easement acquisitions 537,304 $ 35,465 $ 2,629,153 $ 2,294,012 537,304 239,500 Grants and contracts 763,539 763,539 324,687 Special events income, net of net of expenses of $22,291 (2011 - $34,726) 105,748 105,748 87,260 Net investment return (Note 2) 12,895 12,895 8,118 Rental income 17,685 Release from restriction (Note 10) 264,837 (264,837) Total Revenue and Gains 1,766,899 30,521 4,469 1,801,889 1,024,406 Expenses: Program 1,281.690 1.281,690 781,209 General and administrative 98,117 98,117 93,392 Fundraising 86,941 86,941 70,864 Total Expenses 1,466,748 1,466,748 945,465 Change in Net Assets 300,151 30,521 4,469 335,141 78,941 Net assets, beginning of year 1,602,084 660,932 30,996 2,294,012 2215,071 Net Assets, End of Year $ 1,902,235 $ 691,453 $ 35,465 $ 2,629,153 $ 2,294,012 See aecompunying notes. -4- JEFFERSON LAND TR UST AND SUBSIDIARY Consolidated Statement of Cash Flows For the Year Ended December 31, 2012 (With Comparative Totals for 2011) .See accompanying motes. 2012 2011 Cash Flows from Operating Activities: Change in net assets $ 335,141 S 78,941 Adjustments to reconcile change in net assets to net cash provided by operating activities - Depreciation 2,802 2,099 Realized and unrealized (gain) loss on investments (3,828) 5,467 Imputed interest expense 36,000 Write down of land value due to conservation easement 24,999 Donated stocks received (32,735) Donated land received (20,000) Pledge of donated land (15,000) Changes in assets and liabilities: Accounts receivable (14,365) 24,452 Pledges receivable (45,796) 29,804 Prepaid expenses 200 668 Accounts payable (53) (25,864) Accrued expenses and deferred revenue 3,757 1,338 Net Cash Provided by Operating Activities 313,868 74,169 Cash Flows from Investing Activities: Purchases of investments (106,639) (239,957) Proceeds from sale of investments 101,942 119,995 Proceeds from note receivable 3,412 3,251 Purchases of land and land purchase option (263,002) (174,186) Proceeds from sale of land 480,000 308,760 Sale of purchase options 52,500 Purchases of furniture and equipment (7,647) Net Cash Provided (Used) by Investing Activities 215,713 62,716 Cash Flows from Financing Activities: Payments on long -term debt (480,000) (213,024) Net Cash Used by Financing Activities (480,000) (213,024) Net Change in Cash and Cash Equivalents 49,571 (76,139) Cash balance, beginning of year 284,193 360,332 Cash Balance, End of Year $ 333,764 $ 284,193 Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 2,567 S 18,367 .See accompanying motes. JEFFERSON LAND TR UST AND SUBSIDIAR Y Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note I - Organization and Summary of Signyicant Accounting Policies Organization - Jefferson Land Trust (the Land Trust) is a Washington nonprofit 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 benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington. The Land Trust has been accredited by the national Land Trust Alliance since August 5, 2009. On September 5, 2007, JLT Resources, LLC was formed with the 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, "JLT "). Inter- organization balances and transactions have been eliminated in consolidation. Basis of Accounting - The consolidated financial statements of JLT have been prepared on the accrual basis of accounting. Basis of Presentation - Net assets, revenues, expenses, gains and losses are classified based on the existence or absence of donor - imposed restrictions. Accordingly, the net assets of JLT and changes therein are classified and reported as follows: Unrestricted Net Assets - Include all net assets on which there are no donor - imposed restrictions for use. or on which donor - imposed restrictions were temporary and have expired. Temporarily Restricted Net Assets - Include all net assets subject to donor - imposed restrictions that will be met either by actions of JLT or the passage of time. Permanently Restricted Net Assets - Include all net assets received by donations wherein the donors impose a permanent restriction on the use of the gift. The donors require the gift to be invested and only the income from such investments may be used to support the intended cause. All donor - restricted support is reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restriction. When restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from 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. -l- JEFFERSON LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 1 - Continued Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period_ Actual results could differ from those estimates. Cash and Equivalents - For reporting purposes, JILT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash equivalents. Concentrations - 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 32% of pledges receivable, and the total of all pledges from board members represented approximately 41 % of pledges receivable at December 31, 2012. One donor's pledge represented approximately 14% of pledges receivable, and the total of all pledges from board members represented approximately 28% of pledges receivable at December 31, 2011. Investments - Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the consolidated statement of financial position. The carrying amount of the investment held in trust is determined by the trustee holding the securities. Unrealized gains and losses are included in the change in net assets. JLT has established a designated fund at Jefferson County Community Foundation. As JLT has designated itself as the beneficiary of the fund, the fund balance and activity are reported in the consolidated financial statements of 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. JLT provides for depreciation using the straight -line method over the estimated useful lives of the assets of five to ten years. JEFFERSOYNI LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 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: Conservation Lands - Real property with significant ecological value for habitat, open space, or working lands. Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council - Certified, managed forest. Conservation Easements - Voluntary legal agreements between a landowner and a land trust or government agency to permanently protect the identified natural features and conservation values of the property. These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms. through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction in net assets to record the value of the public's benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes. Two easements valued at $337,304 in total were donated to JLT during the year ended December 31, 2012. One other easement was modified during the year ended December 31, 2012, resulting in an increased value of $200,000. Accordingly, $537,304 of contribution revenue and $537,302 of related write down expense have been reported on the consolidated statement of activities for the year ended December 31, 2012. Land Held for Sale - At December 31, 2011, JLT owned one property, Tamanowas Rock Sanctuary, to be sold in the near future under prearranged agreements with the potential owner. Tamanowas Rock Sanctuary was purchased by JLT with the help of the Jamestown S'Klallam Tribe and a low interest loan from the Bullitt Foundation (Note 6). The Jamestown S'Klallam Tribe purchased an option on the property in 2009 which was exercised in December 2012. The Tribe donated a conservation easement on the property to JLT in 2012 as 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'Klallam Tribe. Land Purchase Option - At December 31, 2010, JLT had $52,500 invested in purchase options for Chimacum Dairy, a historic dairy farm in the Chimacum Valley. These options were sold at cost during the year ended December 31, 2011, when a group of conservation investors bought the farm, they reimbursed JLT for the purchase option amount and entered into a long term lease with a local creamery in Jefferson County. JLT continues to hold a conservation easement on the property for working farm and habitat purposes. The group of conservation investors includes related parties to JLT. -8- JE FFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note I - Continued Purchase Option Received - In 2009, JILT purchased the Tamanowas Rock Sanctuary with the help of the Jamestown S'Klallam Tribe and a low interest loan from the Bullitt Foundation (Note 6). The Jamestown S'Klallam Tribe paid $120,000 to JLT in 2009 for an option to purchase the property which was exercised in 2012. 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)(1)(A)(vi) of the Code. JLT files income tax returns with the U.S. government and 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, 2012, 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 2011 - The financial statements include certain prior -year summarized comparative information in total but not by net 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, 2011, from which the summarized information was derived. Subsequent Events - JLT has evaluated subsequent events through March 19, 2013, the date on which the consolidated financial statements were available to be issued. ]Vote 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 1 inputs are based on unadjusted quoted market prices within active markets. Financial assets and liabilities valued using Level 2 inputs are based primarily on quoted prices for similar assets or liabilities in active or inactive markets. Financial assets and liabilities using Level 3 inputs are 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. -9- JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 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, 2012 or 2011. Mutual Funds - Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by JILT at year -end. Funds Held at Jefferson County Community Foundation - Valued using the NAV provided by the fund's manager. The NAV is based on the fair value of the underlying assets owned by the fund. These underlying assets are traded in active public markets with observable market data. There are no significant redemption restrictions or unfunded commitments on these investments. Fair Values Measured on a Recurring Basis - Fair values of investments measured on a recurring basis at December 31 were as follows: - 10- Fair Value Measurements as of December 31, 2012 Level I.evel2 Level Total Mutual funds - Fixed income mutual fund $ 38,130 $ - $ - $ 38,130 Funds held at Jefferson County Community Foundation 59,339 59,339 Total Investments Held at Fair Value $ 38,130 $ $ 59,339 $ 97,469 Certificates of deposit, held at cost plus accrued interest 370,333 Total Investments $ 467,802 - 10- JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 2 - Continued Mutual funds - Fixed income mutual fund Funds held at Jefferson County Community Foundation Total Investments Held at Fair Value Fair Value Measurements as of December 31, 2011 Level l Level 2 Level 3 Total $ 36,480 $ - $ - $ 36,480 56,085 56,085 $ 36,480 $ - $ 56,685 $ 92,565 Certificates of deposit, held at cost plus accrued interest 366,712 Total Investments $ 459,277 A reconciliation of the beginning and ending balances for fair value measurements made using significant unobservable inputs (Level 3) are as follows: Beginning balance at January 1 $ 56,085 $ 125,377 Interest income 4,349 Realized /unrealized gain (loss) 3,254 (5,122) Investment fees paid (3,234) Withdrawals (65,285) Ending Balance at December 31 $ 59.339 $ 56,085 Investment return for the years ended December 31 consisted of the following: Interest income Realized /unrealized gain (loss) Investment fees -II - 2012 2011 $ 9,289 $ 16,819 3,828 (5,467) (222) (3,234) $ 12,895 $ 8,118 JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 .Note 3 - Pledges Receivable Pledges receivable at December 31 are to be received as follows Less than one year Two to five years Thereafter Less discount to present value (0.6 %) Less allowance for uncollectible pledges Note 4 -Note Receivable 2012 2011 $ 191,458 S 217,724 320,995 252,910 14,650 23,750 527,103 494.384 (6,301) (5,160) (5,782) (5,000) — _575,020 $ 484,224 On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. 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 approximately $600. 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. Less than one year Two to five years Thereafter - I?_ 2012 2011 $ 3,579 $ 3,405 20,838 15,454 53,974 62,944 78,391 $ 81,803 JF_FFERSONLAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note S - Land, Conservation Easements, and Purchase Options Land, conservation easements, and purchase options at December 31 are summarized as follows: Conservation lands - Quimper Wildlife Corridor Duckabush Oxbow Chimacum Creek Bulis Forest Preserve Kilham Corner Snow Creek Estuary Gateway Donovan Creek Conservation easements Land held for sale - Tamanowas Rock Sanctuary Note 6 - Long -Term Debt 2012 2011 $ 279,988 $ 264,987 180,000 180,000 280,159 160,160 125,240 125,240 38,930 38,930 86,000 86.000 85,000 85,000 144,500 1,500 49 47 600,000 $ 1,219,866 $ 1,541,864 On December 18. 2007, JLT entered into a loan agreement with a commercial lender in the amount of $226110. The loan bore interest at 8.5 %, 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 time, 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 nonprofit corporation to purchase the Tamanowas Rock Sanctuary property. The note is secured by the property. The note has a stated interest rate of 1 % and 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 %. 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 discount on the loan was 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, 2012 and 2011. The discounted amount due at December 31, 2011, was $444,000. During 2012, the Tamanowas Rock Sanctuary property was sold and the related debt was paid in full. -13- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 7 - Retirement Plan In 2010, JLT began a Simplified Employee Pension - Individual Retirement Accounts Contribution Benefit Plan ( "the Plan "). Eligible employees may join the Plan after one year of service. The total employer contribution for 2012 and 2011 was $4,760 and $5,298, respectively, and is included in employee benefits on the consolidated schedule of functional expenses. Note 8 - Lease Agreements On July 2, 2008, JLT entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease was renewed effective July 2010 and continued through June 2012. The agreement called for monthly payments of $1,412 plus utilities. After June 2012, the lease converted to a month to month rental basis. Rent expense totaled $17,804 and $17,678 for the years ended December 31, 2012 and 2011, respectively. Note 9 - Unrestricted Net Assets Unrestricted net assets consisted of the following at December 31: Designated - Tamanowas Rock Sanctuary Quimper Wildlife Corridor Duckabush Oxbow Chimacum Creek Bulis Forest Preserve Kilham Corner Snow Creek Estuary Gateway Donovan Creek Conservation easements Total designated Undesignated - N- - 2012 1011 $ - $ 480.000 279,988 264,987 180,000 180,000 280159 160,160 125,240 125,240 38,930 38,930 86,000 86,000 85,000 85,000 144.500 1,500 49 47 1,219,866 1,421,864 682,369 180,220 _$ 1,902,235 —$ 1,602,084 JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 10 - Temporarily Restricted Net Assets Temporarily restricted net assets consisted of the following at December 31: Purpose restriction - For stewardship of Bulis Forest Preserve Forest Legacy program For stewardship and management services for Tamanowas Rock Working Farm Fund Consulting fees WALT Stewardship Funding Other program restrictions Time restriction - Outstanding pledges 2012 2011 $ 76,790 $ 78,643 40,002 53,865 19,008 45,468 12,500 1,000 673 176,433 15,032 166:548 515,020 494,384 $ 691,453 1 660,932 Net assets of $69,223 were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of 6195,614 were released due to the expiration of time restrictions for the year ended December 31, 2012. Note 11- Permanently Restricted Net Assets At December 31, 2012 and 2011, JLT had $35,465 and $30,996, 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 - Endowments The JLT endowment consists of one fund established to support general operations. As required by GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donor - imposed restrictions. Interpretation of Relevant Law - JLT's Board of Directors has interpreted the Washington State Prudent 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. -15- JEFFERSON LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 12 - Continued 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 $400,000. 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 JILT 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. As of December 31, 2012, endowment net assets consisted of the following: lnrestricted Temporarily Restricted Permanently Restricted Total Donor restricted endowment funds $ - $ - $ 35,465 $ 35,465 Endowment Net Assets, December 31, 2012 $ $ - $ 35,466 $ 35,466 As of December 31, 2011, endowment net assets consisted of the following: Cemporard), Perrrranently Unrestricted Restricted Restricted Total Donor restricted endowment funds $ - $ $ 30,996 $ 30,996 Endowment Net Assets, December 31, 2011 $ - $ - $ 30,996 $ 30,996 -16- JEFFERSON LAND TRUSTAND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 3l, 2012 Note 12 - Continued Changes to endowment net assets for the years ended December 31, 2012 and 2011, are as follows "Temporarily Permanently 0irestricled Restricted Restricted Total Endowment net assets, January 1, 2011 $ - $ Endowment investment return - Interest and dividends Realized and unrealized losses Total endowment investment return Contributions Endowment Net Assets, December 31, 2011 Endowment investment return - Interest and dividends Realized and unrealized gains Total endowment investment return Contributions Endowment Net Assets, December 31, 2012 - $ 20,226 $ 20.226 791 791 (271) (271) 520 520 10,250 10,250 30,996 $ 30,996 776 776 654 654 1,430 1,430 3,039 3,039 $ $ 35,465 $ 35,465 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 GAAR deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies as of December 31. 2012 or 2011. Return Objectives and Risk Parameters - JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor - restricted funds that JLT must hold in perpetuity or for donor - specified periods as well as board - designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time. 17- JEFFERSON LAND TR UST AND SUBSIDIAR Y Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 12 - Continued Strategies Employed for Achieving Objectives - To satisfy its long -term rate -of- return objectives: JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond funds /ETF's, equity mutual funds, equity ETF's, and unconstrained bond funds. Spending Policy and How the Investment Objectives Relate to the Spending Policy - JLT'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 5400,000 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 portfolio at the beginning of each fiscal year, or one -half of the income generated by the fund for the most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the invasion of the original amounts donated- -18- SUPPLEMENTARY INFORMATION �i 4 u; O40) W (D 0 i'- M 00 r to M N r• r w N V 0) M O to CD M D) O It tl- N N an 1� L r M V 00 O M 00 N O v t` M O 00 CD V' CD V' N to m M I` O v 00 N 4 O 6 CD cr N cr O V' M M N N to O w CD to LO — r r (A CD MNMM11OCOMCDCD.- toMvtoNCD m •-' M O r M to .— M n V' �r V' (D w 00 M O on (O M M Co v M N w r rrl- M 00 m t` w V' M ~ M N M M O) C0 to +n m to r C r N CD M CO co O LO LO O V' N CA O N co LO U') O N N O N N C d n x n) C .(DO C m ti N Ym vs m ca 0 a- t- a` 00 to r M M m O N N V' M CM O M O V M N M r 0 00 v O w C0 V O M IT M 1n M N co h- Q 00 N 00 00 CD M CO M M M O v- r- CD N (p 00 O tC) 07 N M O N V N V V r ai M r 0 N m M N W M U) N" M m O m ;r I` N tD O O c 0) CD M O V LO O M O r M ti N m V W l) M 00) �- N 00 t` I` 00 M N V' N CM N CM r- V O co N V' N M x N w to N M (n C Q N N U LU N tO M ti N N X NX N m N 0) ` o N a (C 60i C m C a E w 0 _ IT V 00 a m o c tf) f— r'n c c 0 .0 y «- CU m v a) w 4) °C r (D aa) c p CD � y N =" OL c O. a`� c6 SOofcLF - afo raf -3:Sm CO) m w r Nvto. 00 r- cr) (D Lf) N (D 00 h � N ti r Oi ZS ~ � � N S7 2 v ts � C a, Loi W m 'o, ts G to CD y m o tL V N 0 _ °-' o o e` w i Jefferson Land Trust RESOLUTION February 18, 2014 WHEREAS, Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures Funding application, and Conservation Futures Funding Application process requires that Jefferson Land Trust prioritize its projects, and WHEREAS, Jefferson Land Trust has been working since 2001 in partnership with Jefferson County Conservation District, Jefferson County, Washington Department of Fish and Wildlife, North Olympic Salmon Coalition, the Hood Canal Coordinating Council, the Jamestown S'Klallam Tribe and WSU Cooperative Extension to acquire and restore critical salmon spawning, rearing and migratory habitat in the Salmon /Snow Creek riparian area and estuary, and WHEREAS, these professional naturalists and scientists have recommended that Snow Creek habitat protection be expanded to provide further benefits for migrating salmonids and other species, and WHEREAS, acquisition of high- priority identified parcels on Snow Creek from willing sellers would provide such habitat protection, the Jenks property and the Irvin property have been identified as such, AND WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, according to the Salmon and Snow Creek Fish and Wildlife Management Plan, AND WHEREAS, Jefferson Land Trust has been working since 1995 in partnership with Jefferson County, the City of .Port Townsend, Washington Department of Natural Resources, the community and the U.S. Fish and Wildlife Service to acquire land lot by lot to preserve a 3.5- mile greenbelt and natural storm -water drainage -way called the Quimper Wildlife Corridor, and WHEREAS, professional naturalists and scientists have recommended that this corridor be expanded to provide further benefit for wildlife species, especially migrating birds, and to provide additional wetland buffers, and Jefferson Land Trust Page 1 of 2 WHEREAS, acquisition of high-priority identified lots in the Quimper Wildlife, Corridor area from willing sellers would provide such wildlife and wetland protection, and WHEREAS, this important community asset will require stewardship in perpetuity. to include annual monitoring, maintenance, and management, as spelled out in the City-adopted Quimper Wildlife Corridor Management Plan. Resolution, AND BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its February 19, 2014 Board of Directors meeting to sponsor an application for Conservation Futures Funding for the Snow Creek Riparian Area, including acquisition of a conservation casement on the Jenks property, and fee simple acquisition of the Irvin property. The Board also agreed that The Snow Creek Riparian Area application is the highest priority for 2014 Conservation Futures Funding due to the fact that it would provide a vital connectivity to the Snow Creek project area, the properties are currently listed tior sale, grant funding may be available now through and the Salmon Recovery Funding Board and the pMject represents a collaborative effort with community members and our Chumsortium partner organizations as they work to preserve this significant salmon habitat. The second highest priority is funding for the Quimper Wildlife Corridor. The properties for sale in the corridor are high priority for protection due to the habitat, floodplain and recreational qualities. However. if Salmon Recovery Funding Board grant matching funds are not awarded to.lefferson Land 'Trust in 2014 for the Snow Creek Riparian Area Project, Jefferson Land Trust requests that the Snow Creek Riparian Area PrqJ1ect application be rescinded until further notice and that the Quimper Wildlife Corridor application is considered as Jefferson land 't'rust's highest priority for 2014 Conservation Futures Funding consideration. Signed this 18th day of February, 2014. ve Moore, Pre dent, Board of Directors Jefferson Land Trust Jefferson Land Trust Page 2 of 2 SON r �{ JEFFERSON COUNTY DEPARTMENT OF COMMUNITY DEVELOPMENT 621 Sheridan Street, Port Townsend, WA 98368 I Web www.co.lefferson.wa.iis/mmmlinifvdevelopment `` Tel: 360,379.4450 1 Fax: 360.379,4451 I Email: dcd a{ 7co jef6erson wa.us SquareONE Resource Center I Building Permits & Inspections I Development Review I Long Range Planning MEMORANDUM TO: Tami Pokorny, Jefferson County Water Quality and Environmental Health FROM: Stacie Hoskins, Planning Manager, Community Development DATE: May 30, 2014 RE: 2014 Conservation Futures: Snow Creek Watershed Acquisitions Recommendation: In response to your inquiry of May 5, 2014 regarding 2014 Conservation Futures projects, Department of Community Development (DCD) has no objection to the 2014 proposed Conservation Futures acquisitions. Based upon the proceeding findings, DCD believes proposed acquisitions and easements would not significantly reduce the Jefferson County's capacity to accommodate planned growth, and Jefferson County would retain enough development land to accommodate the housing and employment growth that it is expected to receive. Findings: 1. The Jefferson County Comprehensive Plan identifies goals and policies for the preservation and enhancement of open space. • Open Space Goal (OSG) 1.0 guides Jefferson County to preserve and enhance the existing open space lands, and Open Space Policy (OSP) 1.5 encourages the pursuit of public acquisition of potential parks, critical wildlife areas, and other open space lands by utilizing a variety of funding mechanisms. • Natural Resources Goal (NRG) 10.0 guides Jefferson County to conserve and protect the agricultural land base and its associated lifestyle, and Natural Resource Policy (NRP) 10.3 supports the conservation of agricultural land through tax incentive programs, the purchase or transfer of development rights, and other methods developed in cooperation with agricultural landowners and managers. NRP 10.9 Encourages the preservation of family owned farms by discouraging the conversion of these lands to other uses. Natural Resources Goal (NRG) 1.0 guides Jefferson County to encourage the conservation of resource lands and the long -term sustainable use of natural resource -based economic activities throughout Jefferson County. NRP 1.7 guides us to consider incentive programs to support resource -based economic activities in rural areas. NRP 2.4 states, Protect the environment from cumulative adverse impacts resulting from resource management practices. I understand the proposed projects involve the purchase of easements or acquisition of land in fee - simple of the following parcels: Irvin Property; Fee - simple acquisition Parcel o en ia1"# 'o numbers fN:am:e, Zon ing Approximate Developable 80202400rvin Rural Residential RR 1:5 acreage parcels 995400040 Irvin Rural Residential RR 1:5 61.74 0.87 12 995400035 Irvin Rural Residential RR 1:5 0.86 1 995400025 Irvin Rural Residential RR 1 :5 0.59 1 995400049 Irvin Rural Residential 1 : RR � 5 1.37 1 995400058 Irvin Rural Residential RR 1 :5 1.23 1 1 995400057 Irvin Rural Residential RR 1:5 0.87 995400059 Irvin Rural Residential RR 1:5 0.89 1 995400028 Irvin Rural Residential RR 1:5 1.00 1 1 995400037 Irvin Rural Residential RR 1:5 1.01 1 995400042 Irvin Rural Residential RR 1:5 1.37 1 995400054 Irvin Rural Residential RR 1 :5 0.34 995400056 Irvin Rural Residential RR 1:5 0.40 995400113 Irvin Rural Residential RR 1:5 0.45 1 1 995400114 Irvin Rural Residential RR 1:5 0.36 1 Tota 73.35 26 Jenks Property: Conservation easement Parcel numbers Name 802111001 e�nT "Acreage is based on coun these estimates. Notential # of Zoning Approximate Developable acreage' parcels Rural esi entia RR 1:5 27.5$ Total 27.58 5 ty mapping and information provided in the applications. Surveys may differ from 3. None of these proposals include property located within an urban growth area, and the potential loss of developable parcels is minimal. 4. The proposal is consistent with the goals and policies of the Jefferson County Comprehensive Plan for the preservation and enhancement of open space. Please let me know if you have any questions or need anything else. Stacie L. Hoskins Planning Manager Page 2 SON Jefferson County Conservation Futures Committee ti Wednesday, November 19 2014 4:30 -6:30 PM Jefferson County Public Health Department Conference Room �sNING�� Port Townsend, WA DRAFT MINUTES * Decisions and action items are indicated in bold font. Members Present: Lorna Smith, Chair, Interest — Ecotourism; Janet Kearsley, Vice - Chair, Distd t 1; Phil Andrus, District 2; Lige Christian, District 3; JD Gallant — District 3; Ray Hunter, Interest 71= ;,.Farms -via Skype; Jerry Gorsline, District 2; Rob Harbour, Interest — Working Lands; Craig $,cI rder lh rest — Climate Change Scott Brinton — Agriculture (arrived at 5:21) .................... ...............::::: Members Absent: Sarah Spaeth; Interest — Jefferson Land Trust; Richard Jahnke, Inte' r' 7 Coastal Areas County Staff Present: Tami Pokorny, Water Qual Guests: Veronica Shaw, Jefferson County Public Health Jefferson Land Trust I. Call to Order: Review a Financial UDddte: Betsyrlson, recorder ; Anne Baier, Deputy Director as written. Phil Andrus moved, Lige Christian add in i tion,,,about the Snow Creek Watershed Acquisitions Project to the .:... . . . . . . . . . . . . . . . . . . . . . . . . . . V r i n g Oldiness. and Projections — additional information Report on updated budget: The total amount of funding for 2014 projects was significantly lower than usual. At their October 2 meeting, the CF Committee requested a review to determine what the reason for the difference might be. The original estimate of funding for 2014 projects was $115,000. This figure was revised to $42,000 last spring when the calculation was rechecked ahead of the BoCC's decision on project awards. Since 1 the last meeting, it was discovered that that reduction was unnecessary. Staff had mistakenly believed that the previously approved Winona Basin Bloedel Project had yet to be deducted from the available fund balance, but this was not the case. A process to avoid such issues in the future has been created. The $73,000 is now available. Lorna Smith read the April 30, 2014 motion regarding the project funding award: "Phil Andrus moved: That we recommend that the committee pass to the Board of County Commissioners, that both projects (Quimper Wildlife Corridor and Snow Creek) are worthy of funding and we share the ranking with the Board of County Commissioners and make no recommendation as to funding priority. Seconded by Rob Harbour. Maker of motion accepts friendly amendment: That the funds be spf tlis year. Second friendly amendment: That the Board of County Commissioners work with.,. ft` applicants as to the feasibility between the two projects as to where the funds will be expett€i,,,. .:.... ........:... [Note the updated motion regarding this was made later in the meeting, seklow] Suggestion: create a flow chart of what is in the works to be funded so that the mmittee can keep a better idea of what funds are available. Lige Christian and Tami Pokorny will work t Ci this. .........:. A motion was made to have the accounting for the:; #iti;..b:.e done irne place and thatplace would be the Health Department. Lige Christian moved and Phil °Xt* .dr.us seconded, all in favor. A recommendation will be sent to the Board of County Comrtl s i. ners that the fund be managed in one place. Snow Creek Watershed Acquisitions Pokorny may'n ao reques.t : :::. x other public hearing. Futures Prram Manual Definitions: Motion`s Phil Andrusa accept the following changes to the manual definition of Silviculture: Seconded'la ' ge Christian. Motion passed. Definition':: ivculture' means the practice of controlling the establishment, growth, composition, health, and 'uality of forests *^ Meet ^'*;•^ " °° needs and val er, for the production of forest products.".,, Phil Andrus moved to accept all other definitions in the manual, Lige Christian seconded. Lorna Smith asked for all those in favor of supporting the current list of definitions with the exception of the changes made to the definition of silviculture and removing the phrase "education and interpretation" which is currently undefined in the manual. All in favor, motion carries. 2 Lige Christian moved and Phil Andrus seconded that all changes be accepted in the application. All in favor, motion carried. Friendly amendment: Janet Kearsley suggested that under the scored questions #7, the applicants list specific protected habitats and threatened, endangered or sensitive species that would be covered by the project. Janet Kearsley moved that we accept this friendly amendment to the previous motion. Phil Andrus seconded. All in favor, motion passes. VI. New Business Project reports: Tami Pokorny distributed the annual report sent to the county fly the:Jefferson EuI;Trust. • Short Family Farm: Surveys are complete and a prp.posed I oundary line adv ent is under ............. review. The project will likely close in the first quarter of 2015. • Duc a ush: Owners are working to resolve a 1";, • The Snow Creek project was discussed under Olt1 � nes Review of 2015 DRAFT Calendar: Vii) — Sitefi€5j5" eeting nend Meeting F..:Recommendations to Board of County d-lVleeting d Meeting TarnPokorny reuts.that th;u#rnmittee let her know if there are problems with the calendar by mber 24, Li 01 Kristian suggests that there would be a deadline for questions /responses added to the calendar. Tam''ilrny suggestedaiat this be added between April 15th and 29th. Staff will put together a more detaileIndar. Motion: Lige'Irfan moved to accept the calendar. JD Gallant seconded. All in favor, motion carries Estimate for available fund for next year. $228,400. Veronica Shaw estimates that the amount available for 2015 projects will be approximately $184,650. VII. Other/ Administrative Fund Balance as of Oct 301h: $370,461.21 3 Currently vacancy for District 1, the position has been advertised. Lige Christian and Sarah Spaeth would like to be reappointed. Next seat is expiring in Dec., District 2 —Jerry Gorsline is interested in being reappointed. In January, Phil Andrus position will open and he is interested in being reappointed. Staff will notify all members of vacancy announcements. Lorna Smith called a special meeting for April 3 d to conduct site visits. Rob Harbour suggests that there be a future comprehensive review of the manual and application. 4 eC% P�3_7I7[iy STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the } Snow Creek Watershed Acquisitions project as } Authorized by and in Accordance with Jefferson } RESOLUTION NO. 29-14 County Code Section 3.08.030(7) to Provide a } System of Public Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long -term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2014 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, the Jefferson Land Trust, as project sponsor, requests funding towards the fee simple acquisition of up to 15 parcels of forested land in Sec. 2 T. 28N, R. 2W with Assessor's Parcel Numbers 802024001, 995400040, 995400035, 995400025, 995400049, 995400058, 995400057, 995400059, 995400028, 995400037, 995400042, 995400054, 995400056, 995400113, and 995400114 and to protect one additional parcel of largely vacant land in Sec. 11 T. 28N, R. 2W with Assessor's Parcel Number 802111001 by purchasing a conservation easement; and WHEREAS, the County retains enough developable land to accommodate the Snow Creek Watershed Acquisitions project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: Jefferson County hereby dedicates up to $10,824 in conservation futures funds in the 2014 funding cycle for acquisition expenses contingent on a matching contribution of eighty -four percent (84 %) of the total project cost. Resolution No. 29 -14 re: Dedication of Conservation Futures Funds to the Snow Creek Watersheds Acquisitions project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPRO]lED`AN_ D ADOPTED this 7s' day of July, 2014 in Port Townsend, Washington. SE': �; ''' ; JEFFERSON COUNTY J kCMIMISSIONERS n A ATTES • , Carolyn A e� ry Deputy Clerk of the Board ly- n, IC�Iember 77 ) ; Su ivan, Me r"""' STATE OF WASHINGTON County of Jefferson Supplementing Resolution No. 29 -14 to Dedicate } Additional Conservation Futures Funds to the } Snow Creek Watershed Acquisitions Project as } RESOLUTION NO. Authorized by, and in Accordance with, Jefferson } County Code Section 3.08.030(7) to Provide a } System of Public Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long -term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210: and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Consen project applications for 2014 and made Commissioners in accordance with Jefi Program, the Jefferson Land Trust, as j acquisition of up to 15 parcels of fores Numbers 802024001, 995400040, 995' 995400059.995400028.995400037.9 and to protect one addition Parcel Number 802111001 it Committee has reviewed to the Board of County 08; and isions of the Jefferson County Conservation Futures ect sponsor, requests funding towards the fee simple land in Sec.2 T. 28N, R. 2W with Assessor's Parcel 035, 995400025, 995400049, 995400058, 995400057, 00042, 995400054, 995400056, 995400113, and 995400114 ;ely vacant land in Sec. 11 T. 28N, R. 2W with Assessor's a conservation easement; and WHEREAS, the County retains enough developable land to accommodate the Snow Creek Watershed Acquisitions project as well as the housing and employment growth that it is expected to receive, thus ;satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; and WHEREAS, on July 7, 2014, the Board of Commissioners approved the use of up to $10,824 for this project in Resolution No. 29 -14; and WHEREAS, an additional $73,000 from the Conservation Futures Fund may now be dedicated in this funding cycle. Resolution No. re: Supplementing Resolution No. 29 -14 to Dedicate Additional Conservation Futures Funds to the Snow Creek Watershed Acquisitions Project NOW, THEREFORE BE IT RESOLVED that: Jefferson County hereby increases its dedication of conservation futures funds to this project in the 2014 funding cycle from $10,824 to $83,824 for acquisition expenses contingent on a matching contribution of eighty -four percent (84 %) of the total project cost. 2. This dedication of funding may be nullified i accompanied by documentation of matching acquisition, is not received from the sponsor resolution. APPROVED AND ADOPTED this day of SEAL: ATTES Carolyn Deputy for reimbursement, ent to complete the years of the signing of this 2015 in [COUNTY COMMISS Kler, Member Washington.