HomeMy WebLinkAbout021715_ca05v
615 Sheridan Street
Port Townsend, WA 98368
,- www. JeffersonCountyPublicHealth.org
Public Health Consent Agenda
Jan. 20, 2015
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley, County Administrator
FROM: Jared Keefer, Environmental Health Director
Tami Pokorny, Environmental Health Specialist
DATE:
SUBJECT: Agenda Item — Project Agreement Conservation Futures Fund Grant
Acquisition project Short Family Farm Easement; Jefferson Land Trust,
Sponsor; April 1, 2012 — July 15, 2016; $243,500
STATEMENT OF ISSUE:
Jefferson County Public Health, Water Quality Division, requests Board approval of the Project Agreement
between JCPH and Jefferson Land Trust, Conservation Futures Fund Conservation Easement for Short
Family Farm; April 1, 2012 — July 15, 2016; $43,500 Conservation Futures Fund Grant and $893,500 Project
Sponsor, Jefferson Land Trust, for a total project cost of $937,000
ANALYSIS /STRATEGIC GOALS /PRO'S and CON'S:
This Project Agreement contracts Jefferson County Public Health to administer a Conservation Futures Fund
grant received by Jefferson Land Trust to purchase a conservation easement on 256 acres of the Short
Family Farm. The additional cost of the easement purchase is met by Jefferson Land Trust. The
Conservation Future Funds' expenditure is limited to $43,500, and may not exceed 4.64 % of the total
project cost. This project protects 256 acres of pastureland and forest patches for agricultural uses, habitat
values, and scenic qualities; and further protects riparian habitat along Chimacum and Naylor Creeks.
Jefferson Land Trust has been working since 1995 with Jefferson County, the City of Port Townsend,
Washington Department of Natural Resources, and the U.S. Fish and Wildlife Service to acquire land lot by
lot to preserve for various purposes including salmon and bird habitat. The Short Family Farm, Conservation
Futures Fund easement acquisition promotes this goal.
FISCAL IMPACT /COST BENEFIT ANALYSIS:
The Project Agreement is fully funded by the Jefferson County Conservation Futures Fund grant.
RECOMMENDATION:
JCPH management request approval of the Professional Agreement with Jefferson Land Trust for
Conservation Futures Fund, Short Family Farm Conservation Easement Acquisition; April 1, 2012 — July 15,
2016; $43,500
REV N D BY*
PhilipoRl 1 " 7 t �dmrrfis ator Date Environmental Health
ev to n a isa iii ies Wafer Qualify
360 -385 -9400 360 -385 -9444
360 - 385 -9401 (f) Always working for a safer and healthier community (f) 360 - 379 -4487
JEFFERSON COUNTY CONTSERVATION FUTURES PROGRAM
PROJECT AGREEMENT
Project Sponsor: Jefferson Land Trust
Project Title: Short Family Farm
Project Number: 2013 JLTSFa
Approval: Resolution No. 30 -13 on July 15, 2013
A. Parties to the Agreement
This Project Grant Agreement (Agreement) is entered into between County of Jefferson (County), PO
Box 1220, Port Townsend, Washington 98368 and Jefferson Land Trust (Sponsor), 1033 Lawrence
Street, Port Townsend, WA 98368, and shall be binding upon the agents and all persons acting by,
for, or through the parties.
B. Purpose of the Agreement
This Agreement sets out the terms and conditions by which a grant is made through the Jefferson
County Conservation Futures Fund. The grant for the above named project is administered for the
Sponsor by Jefferson County Environmental Health.
C. Description of Project
The Project is described in the attached 2013 Conservation Futures Program Property Acquisition
and/or Operations and Maintenance Project Application. The Project funds are to be used towards the
purchase of a conservation easement on the real property known as Short Family Farm, Jefferson
County Parcel Numbers 901233002, 901233005, 901233008, 901233010, 901233011, 901224001,
901262002, and 901262003. All expenses are to be incurred prior to July 15, 2016. The conservation
easement will permanently protect 256 acres of pastureland and forest patches for agricultural uses,
for habitat values and scenic qualities by preventing subdivision, and for other uses that will not
impair the land's conservation values. The easement Grantor is the party of Roger and Sandy Short,
in favor of Jefferson Land Trust and the United States of America acting by and through the United
States Department of Agriculture, Natural Resources Conservation Service.
D. Term of Agreement
The Project Sponsor's on -going obligation for the above project funded by this Agreement is to
provide conservation easement stewardship in perpetuity unless otherwise identified in this
Agreement.
E. Period of Performance
The Project reimbursement period for acquisition expenses shall begin on April 1, 2012. The Project
reimbursement period for acquisition expenses will end on July 15, 2016 unless proof of match is
provided prior to this date. No expenditure made before April L 2012 is eligible for reimbursement
unless incorporated by written amendment into this Agreement.
F. Project Funding
The total grant award provided by the Conservation Futures Fund (CFT) for the Project shall not
exceed $43,500, and the Jefferson County CPL shall not pay any amount beyond that approved herein
for funding of the Project. The Sponsor shall be responsible for all total costs for the Project that
exceed $937,000. br no event will the CH funds expended for this purchase exceed 4.64% percent of
the overall acquisition cost of the conservation casement_
The contribution by the Sponsor toward work on the Project at a minimum shall be as indicated
below. The contribution by the County, toward work on the Project has been described F and C above.
Acquisition and U nc iVl costs
Conservation Futures —Short family harm
Conservation Easement
4.64%
Project Sponsor_- cash 9536%
Total Project Cost 100%
Dollar Amount
543,500
$893,500
$937,000
G. Unexpected Project Allocations
Should unexpected Project allocations, including but not limited to project completion at less than the
estimated cost, or, alternatively, the abandonment of the Project occur, then the Sponsor shall notify
the County.
H. Rights and Obligations
All rights and obligations of the parties to this Agreement are subject to this Agreement and its
attachments, including the Sponsor's Application and Jefferson County Conservation Futures
Program Manual for the 2013 Funding Cycle, all of which are attached hereto and incorporated
herein.
Except as provided herein, no alteration of any of the terms or conditions of this Agreement will be
effective unless provided in writing. All such atterations, except those concerning the period of
performance, must be signed by both parties. Period of performance extensions need only be signed
by Jefferson Board of County Commissioners.
I. Indemnification
Sponsor shall indemnify, defend and hold harmless the County, its officers, agents and
employees, from and against any and all claims, losses or liability, or any portion thereof,
including attorney fees and costs, arising from in or death to persons, including injuries,
sickness, disease or death to Sponsor's own employees, or damage to property occasioned by
a negligent act, omission or failure of the Sponsor.
J. Insurance
The Sponsor shall secure and maintain in force throughout the duration of this contract:
1. Worker's compensation and employer's liability insurance as required by the
State of Washington.
_. Comprehensive general liability insw ance with a minimum coverage of
$1,000,000 per occurrence and 53,000,000 aggregate in connection with the
Sponsor's performance of this Agreement.
3. Commercial Automobile Liability Insurance providing bodily injury and property
damage liability converge for all owned and non -owned vehicles assigned to or
used in the performance of the wort: for a combined single limit of not less than
$500.000 each occurrence.
4. Sponsor shall provide all required proofs of insurance to the County in care of,
Contracts Manager at Jefferson County Public Health, 615 Sheridan St. Port
Townsend, WA 98 368 prior to conservation easement acquisition.
K. Independent Contractor
The Contractor and the County agree that the Contractor is an independent contractor with
respect to the services provided pursuant to this agreement. Nothing in this agreement shall
be considered to create the relationship of employer and employee between the parties
hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits
accorded County employees by virtue of the services provided under this agreement. The
County shall not be responsible for withholding or otherwise deducting federal income tax or
social security or for contributing to the state industrial insurance program, otherwise
assuming the duties of an employer with respect to Contractor, or any employee of
Contractor. The Contractor shall not sublet or assign any of the services covered by this
contract without the express written consent of the County or its authorized
representative. Assignment does not include printing or other customary reimbursable
expenses that may be provided in an agreement.
L. Ownership and Use of Documents
All documents, drawings, specifications and other materials produced by the Sponsor in
connection with the services rendered under this agreement shall be the property of the
Sponsor whether or not the project for which they are made is executed. The County shall be
permitted to retain copies, including reproducible copies, of drawings and specifications for
information, reference, and use in connection with the Sponsor's endeavors.
NL Compliance with Applicable Statutes, Rules, and Jefferson County Policies
This Agreement is governed by, and the Sponsor shall comply with, ail applicable state and federal
laws and regulations, including RCW 84.34 210, and published agency policies, which are
incorporated herein by this reference as if fully set forth.
N, Sponsor's Accounting Books and Records
The Sponsor shall maintain complete financial records relating to this contract and the
services rendered including all books, records, documents, receipts, invoices, and all other
evidence of accounting procedures and practices which sufficiently and properly reflect all
direct and indirect cost of any nature expended in the performance of this contract. The
Sponsor's records and accounts pertaining to this agreement are to be kept available for
inspection by representatives of the County and state for a period of six (6) years after the
date of the final payment to Sponsor. Copies shall be made available upon request.
O. Licensing, Accreditation and Registration
The Sponsor shall comply with all applicable local, state and federal licensing, accreditation,
permitting, and registration requirement standards necessary for the performance of this
contract.
P. Disputes
Except as otherwise provided in this contract, when a bona fide dispute arises between
Jefferson County and the Sponsor and it cannot be resolved, either party may request a
dispute hearing with a mediator assigned by or associated with Jefferson County District
Court. Either party's request for a dispute hearing must be in writing and clearly state:
a. the disputed issue(s),
b, the relative positions of the parties, and
c. the Sponsor's name, address and Agency contact number
These requests must be mailed to the Project Manager, Jefferson County Environmental
Health Department, 615 Sheridan St., Port Townsend, WA 98368, within fifteen (15) days
after either party receives notice of the disputed issue(s). 'file parties agree that this dispute
process shall precede any action in a judicial or quasi- judicial tribunal. The parties will split
evenly the cost of mediation or whatever form of dispute resolution k used.
Q. Termination for funding
Jefferson County may unilaterally terminate this contract in the event funding from state,
federal, or other sources are withdrawn, reduced, or limited in anyway after the effective date
of this contract.
R. Termination for Convenience
The County reserves the right to terminate this agreement at any time by giving ten (10) days
written notice to the Sponsor.
S. Assignment
The Sponsor shall not sublet or assign any interest in this Agreement and shall not transfer
any interest in this agreement without the express written consent of the County.
T. Non - Waiver
Waiver by the County of any provision of this agreement or any time limitation provided for
in this agreement shall not constitute a waiver of any other provision.
U. County Does Not Assume Additional Duties
The County does not assume any obligation or duty, except as required by federal or state
law. to determine if Sponsor is complying with all applicable statutes, rules, codes,
ordinances, or permits.
V. Agreement Representatives
All written communications sent to the Sponsor under this Agreement will be addressed and delivered
to:
Sponsor Contact
Sarah Spaeth, Executive Director
Jefferson Land Trust
1033 Lawrence St.
Port Townsend, WA 98368
Conservation Futures Program Contact
Jefferson County Environmental
Health — Conservation Futures
615 Sheridan Street
Port Townsend, WA 98368
These addresses shall be effective until receipt by one party from the other of a written notice of any
change.
W. Entire Agreement /Severability
This agreement, along with all attachments, constitutes the entire agreement of the parties. No other
understandings, oral or otherwise, regarding this Agreement shall exist or bind any of the parties. W
any part of this Agreement is ruled or adjudicated to be unlawful or void, all other sections of this
Agreement shall continue to have full force and effect.
X. Effective Date
This agreement, for the Short Family Farm Project shall be effective upon signing by alt parties.
Y. Venue:
Venue for any litigation arising from this Project Agreement shalt be only in the Superior Court In
and for Jefferson County. Each party to this agreement shall be responsible for their litigation costs,
including attorney's fees.
DATED this day of 2015.
By _ — --
David Sullivan, Chair
Jefferson Board of County Commissioners
By�C _1r e r51 L
Sarah Spaeth '
Jefferson Land Trust
Attested:
Erin Lundgren, Clerk of the Board
Approvedas to fprm:
David Alvarez, Chief CivilrDPA
2013 Jefferson County Conservation Futures Program
Property Acquisition and /or
/' Operations and Maintenance Project Application
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 385 -4498 or tpokorny @co.jef erson.wo.us with questions.
Background and Eligibility In?orrnation
1. Project Title: Short Family Farm
2a. Conservation Futures Acquisition Request: 543.500.00
b. Conservation Futures O &M Request: SO
3. Total Conservation Futures Request: 843.500.00
4. Please indicate the type of interest contemplated in the acquisition process.
Warranty Deed _X_ Easement _ Other (Please describe below.)
In whose name will the property title be held after acquisition?
Roger Short and Sandy Short with a conservation easement held by Jefferson Land Trust
5. Applicant Information:
Name of Applicant or organization: Roger and Sandy Short
Contact: Roger Short
Title: Owner
Address: 1720 Center Road, Chimacum, WA 98325
Phone: (360) 732 -4601, Fat: none
Email: none
6. Sponsor Information: W diNrent than applicant)
Organization Name: Jefferson Land T^ist
k
Contact: Sarah Spaeth
Title: Executive Director
Address: 1 033 Lawrence Street, Port Townsend, WA 98368
Phone: (360) 379 -9501, ext. 101 Fax: (360) 379 -9897
Email: sspaethCei;saveland.org
This application was approved by the sponsor's legally responsible body (c. .. bocud council, ere.)
on Febrtt4ry 19, 2013.
7. Site Location
Street Address or Description of Location:
1720 Center Road. Chirnacum, WA 983-25
Driving, Directions from Port Townsend:
Follow SR 20 to SR 19. Turn right onto Center Road. Proceed to 1720 Center Road on the right
Section: 23 Township: 29 Range: I West
Assessor's Parcel Number(s):901233002, 901233005, 901233008, 901233010, 90123301 1,
901224001,901262002,901262003
8. EXISTING CONDITIONS
New Site: Yes X No
Addition to Existing Site: Yes No X
Total Project Acreage (if different): same
Existing Structures /Facilities:
Number of Parcels: 8
Acres to Be Acquired: 256
Current Zoning: RR20
The farm has a several barns, shops, grain silos, livestock sheds, and livestock waste storage facilities
From former dairy infrastructure currently used for manure management and composting. Most of the
farm infrastructure is located within one of the two proposed building envelopes, though sonic livestock
sheds and barns are located in other parts of the Farm. A large capacity well with water rights services
the agricultural needs as welt as the domestic water supply for the four existing homes. Adequate
irrigation infrastructure is in place.
Any current covenants, easements or restrictions on land use:
A CREP buffer has been planted on the riparian buffer associated with Naylors Creek which runs
through a portion of the properth before it enters Chimacum Creek.
Current Use: agriculture, cattle production, pastureland
Waterfront (r arne of ho(A o/ n ater ): n/a
Shoreline (Ir +veurfeet): approx. 1 mile ofChirnacum and Naylors Creeks
Owner Tidelands /Sborelands: ma
9, Current Property Owner X _is is not a willing seller.
10. in loo0 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 (JLT) will use this grant, along with other grant funding, to purchase a
conservation easement on the Short Family Farm south of Chimacuzn in Jefferson County. Acquisition
of a conservation casement will help to preserve the prime soils and habitat of one of the largest
operating farms in the fertile Center Valley, provide funding for the farmer to consolidate ownership of
the property with family trust members, provide for retirement, allow reinvestment in the farm
infrastructure and make it affordable for the next generation. The Short Family has a long history of
dairy operations and now raises grass fed beef.
Conservation values on the Short Family Farm include 256 acres Of low lying pastureland and adjacent
upland pasture and forest patches consisting of prime soils, 7500 feet of riparian habitat for miratins
caho and steeihead, and farm infrastructure. "file trumpeter swan habitat on this farm is unique in the
state due to agricultural practices that maintain native manna grass, ivlany waterfowl species, raptors
and other wildlife utilize the farm. Adj1acent properties are mostly agricultural. including the previousky
CFF funded Firuiriver Fan-n- The project builds on local agricultural land preservation efforts which
have resulted in 290 acres conserved in Center Valley alone. The highly visible, scenic vistas across
Center Valley define the rural character of this area. and protections of the strategically located farm will
greatly enhance the viability of our agricultural community.
The Short Family Farm has four residences located near Center Road and numerous agricultural
buildings and infrastructure manly in the same vicinity as the residences, but a few on the other side of
Center Valley. The conservation easement design would designate two residential building euvelopcs
where the existing structures are located and allow additional agricultural related structures in other
areas of the property subject to impervious surface limitations. Current zoning allows for at least 10
additional residences on the property and the easement would prevent subdivision and any additional
residential, commercial or industrial development.
The Short Family Farm preser;ation �effort is atop priority for local agricultural protection efforts. JLT
has worked closely with the County and Jefferson LandWorks Collaborative partners to support our
agricultural land protection. ccdnomv and culhtrc it applied for State Farmland Prc,e vation
prograin funding and the Short Farms v Farm protect ranked number 7 out of 22 in the a tic. In addition.
if T also applied for funding iioni the Federal faun and Ranchland protection Program. I ?oth c l these
Brent programs will provide notice of funding in lane of 2013,
Over - arching Goal:
Permanent protection of the agricultural values ofthe Short Farm through a conservation easement is the
over - arching goal and desire of Mr. Short. The conservation easement will provide him peace of mind
that he is leaving a Legacy for future generations of farmers.
Three Objectives:
Secure grant funding for the easement
Finalize easement language and boundary through survey
provide for fencing along riparian buffer areas of Chimacum Creck.
important Milestones
Securing conservation easement funding — Summer 2013
Completion of a draft conservation easement document — Winter 2013
Completion of a survey designating the easement area and building envelopes — Spring
2014
Baseline documentation — Spring 2014
Easement purchase — Summer 2014
Fencing of riparian area — Sumner 2014
permanent stewardship, landowner relations and record keeping — Ongoing
11. Estimate costs below, including the estimated or appraised value of the propert(ies) or
property right(s) to be acquired, even if Conservation Futures funds will only cover a portion
of the total project cost. In the case of projects involving multiple acquisitions, please break
out appraisals and estimated acquisition costs by parcel.
a. Estimated or Appraised Value of Propert(ies) to be Acquired: $850,000
b. Total Estimated Acquisition- related Cost (see Conservation Futures j14anuul /or eligible costs):
$47,000
c. Total Operation and Maintenance Cost: 540,000
d. Total Project Cost: 5937,000.00
Basis for Estimates (include information about how the property value(s) was determined,
anticipated acquisition - related costs, general description of operation and maintenance work
to be performed, task list with itemized budget, and anticipated schedule for completion of
work):
-t lie basis for cost estimate is based on the value of nearby conser\ ation Casement purchases made
withut the last several Scars. A full appraisal and review to grant agency requirements will be conducted
bctb e acquisition is finalized. Anticipated acquisition related costs include; appraisal and ievicw_
survay. baseline documentation. till nsurance and elosim, costs. excise tax and recordumr tees, legal
costs project ut i t •gc nent and admir,;su ation. OK M funds for this project may be requested at a later
date. We hope that the excess match provided with this application can be banked to match future O& M
requests.
-- -
iitio related sts aern d co imeline
.qus Est. Cost
- -.
— Summer 2014 $850,000
)nservation easement
- --
�prais naa d Appraisal Review March 2014 $8,000
May 2014 $10,000
u rvey _ _
aseline and Stewardship Plan ,July 4 38,000
encing ugust 2014 1$10,()00
-- - — -.
itle insurance and closing costs, excise tax, etc Summer 2014 $10,000
1igns
- - -- " — August 2014 $1,000
_ - -- -- - -- - - -- —
�roiect Management, Admin and legal fees 12007 - September 2014 540,000
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 hove contributions from groups or agencies will reduce the
need to use Conservation Futures program funds.
c. Matching Fund Estimate
Acquisition
O &M
Conservation Futures Funds Requested
543-500.00
$0
5°6
Matching FundslResources*
5893.500.00
$0 _
)5'% 0
Total Project Acquisition Cost
5937.000.00
SO__._
100 °rO
It a prior ocdarrrntiOa is being proposed as match, please describe and provide docznnentution of,value,
location, date nJ acgui-sittoo and other information that ri -ould direct') link the match to the property
being considered for ucgt1isition.
d. Source of matching Amount of Contribution if not, Contribution if not,
funds /resources contribution approved'? whom? available now?
6 when?
State �' htZP 548,500 Y'es \o Jun _?) -13 Y'es Nc Pall Q13
FRPP 5425,000 Yes No Jung_201= Yes No Fa112O13
Yes o Yes No
Yes No Yes No
NOTIi Matching funds are srronglv recommended and a higher rating will be assigned to !hose
projects that guarantee additional resources for acquisition. Donation of property or a property
right will be considered as a matching resource. Donation of resources for on -going maintenance or
sle'vardship ( "in -kind contribidions) are not eligible cis a match.
2a. Sponsoring agency X is is not prepared to provide long -term stewardship (maintenance,
up -keep, etc.) for the proposed project site.
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.
JLT will conduct stewardship, monitoring and maintenance including at least annual monitoring of the
property by professional staff and trained volunteers, extensive data collection and management, help
with stewardship, enhancement and restoration goats and legal defense of the conservation easements
should it become necessary. JLT has a legal defense fund of nearly $350,000, and continues to build
this fund with each new easement acquisition, recognizing the legal obligation and responsibility of
protecting conservation values in perpetuity. In addition JLT recently became one of the first land
trusts in the nation to enroll in a new legal defense insurance program for conservation easements called
Terrafirma, developed through the national Land Trust Alliance (the national umbrella organization for
land trusts /. This program covers up to $500.000 in legal enforcement costs per conservation easement
that JLT holds and stewards.
3 a. Describe the sponsoring agency's previous or on -going stewardship experience.
JLT, formed in 1989 and accredited in 2009, will hold the conservation easement on the Short Family
Farm and has been holding and stewarding conservation casements since 1991. JLT cunently holds anc
monitors 49 conservation easements in Jefferson County, in addition to conducting monitoring and
stewardship activities on the 205 acres it owns. The lJoh River frost and Washington State Parks
contract with JLT to monitor and steward over 7000 acres of land under their control, In addition JLT
stewards land owned by klic son Cowtty, the City of Port Townsend, Washington State Parks and
Department of Vtatural Resources JI t stewardship and monitoring protocols were developed with the
guidance of the Land 'frost _Alliance and adhc.encc to those protocols is one of the requirements for our
national accreditation.
ly, flas 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 aplu•oved for Conservation Futures funds. Please provide details:
JLT has sponsored numerous applications that have received Consery °anon Futures funds. These projects
include: Sunfield Fans, 2001; Quimper Wildlife Corridor, 2004; East Tarboo Creek Conservation
Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project. 2006; Glendale Farm, 2007;
Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Kuck 2010,
Quimper Wildlife Corridor 2010; Tamanowas Rock 2010; Chimacum Creek Carleson 201 l ; Winona
Basin - Bloedcl 201 1; L. Brown 2012, Boulton Farm 2012.
d a. Property X can _cannot feasibly be acquired in a timely fashion with available resources.
b. Necessary commitments and agreements X are are not in place.
c. All parties X are _are not in agreement on the cost of acquisition.
If °not" to any of the above, please explain below.
5. The proposed acquisition X is specifically identified in an adopted open space, conservation, or
resource preservation program or plan, or community conservation effort. Please describe
below, including the site's importance to the plan. Please reference the nrebsite ofthe plan iJ
available or include the plan ivith this application.
_complements an adopted open space or conservation plan, but is not specifically identified.
Please describe below, and describe hone the proposed acquisition is consistent ivith the plan.
is a stand -alone project.
The Short Farm is indicated on the Parks, Recreation Areas, Conservation Easements and Areas for
Future Cooperative Conservation Efforts map from the Jefferson County Comprehensive Plan.
http:/ hs�s,�v. co. jefferson .wa.us /idms/pdfs /parks99.pdf. It has also been identified as having local and
regional agricultural and habitat significance in the Jefferson Land Trust Conservation Plan. The plan is
located on the JLT website, www.saveland.org.
The Puget Sound Action Agenda states that protection of intact ecosystem processes, structures and
functions, including the protection and conservation of freshwater resources to increase and sustain
water availability for instrearn flow and human uses as important. It also supports specifically long term
protection and stewardship of working farms, particularly in East Jeffcrson County in the Hood Canal
Action Area (A3).
A -draft- 1- aR.pdf
l,ttp:Nwww-psP w, ,gov /downloads /AA2011 %
i,ttp:hw,Nvw.y)sp,wa.gov /dowtiloacis/AA201 U] 2091 PAA draft - 120911- a1- a4.pdf
6. Conservation Opportunity or Threat:
a. The proposed acquisition site a does does not provide a consei-vation 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.
The Chimacum area of Jcflerson County has been experiencing steadily incrcasing development over
the past 10 years. Although the Short Family Farm parcels are zoned RR20, duc to grandfathered lots
the possibility casts for as i n;ny as 10 additional residcnccs to be developed on site, and"or individual
parcels being sold away from the farm Cun ently a portion of the overall farm acreage is owned by the
Valley View N& I. Family Trust, which consists of Roger Short and his 8 siblings, though Roger and
Sandy Short and son Kevin manage the farm operations on the total property. A significant
development threat stems from this portion of the property ownership being split between 9 siblings,
greatly increasing the risk of parcels being sold or developed for residential use and of the farmland
being diminished_ Roger and Sandy Short plan to purchase the family trust portion of the property with
the grant funding and consolidate the multiple parcels under single ownership, followed immediately by
granting the easement which will preserve the agricultural values of this property, allow for re-
investment in farm infrastructure and make it economically feasible for the next generation of farmers to
afford the property. Funding from the easement will also provide retirement security for Roger and
Sandy and prevent their need to sell off portions of the property for income.
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.
11- 0firmative in any ofihe above, please describe belo v, and cite or prot)ide documentation of
species' use. t
Several salmon species utilize the habitat on the farm, including coho, steelhead and cutthroat trout. '['lie
Trumpeter swan habitat is unique in the state. ESA listed Summer Chum spawning takes place about
L5 miles downstream, and much public funding and local effort has been spent to protect and restore
summer chum habitat. ,'Maintaining seater quality from the farm is an important factor in the success of
summer chum recovery.
Approximately 1.5 miles of Chimacum Creek and its tributary Naylors Creek run through the faun.
Chimacum Creek is recognized in numerous local and regional plans as providing important migration,
spawning and rearing habitat for coho salmon, steelhead and cutthroat trout. The trumpeter swans
forage on the property during the annual winter migration. Other species seen on the farm include many
other waterfowl species. cos °otcs, bear, deer and occasionally elk.
The 1.0 mile section o Chimacum Creek is a critical link in the migration corridor for coho. steelhead
and cutthroat trout and provides rearing habitat for juveniles The Trumpeter Swan Society has
identified the Short Fann as one of the top priorities for protection due to the winter forage habitat with
wester manna grass in the pastures_ WDFW and Ducks Unlimited also rank this property high oil the
list for protection due to the excellent waterfowl habitat. WDFW has a lease for waterfowl hunting by
the public on the farm, which provides supplemental income.
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.
See, for exainFl , h�i.`sv� �� dnrssa, �o� rccear�h,u:nc tope r -z[urz Ihu ita�e[p r s an�_nh a�.r
t.tt�, ���an wdh� �s r ��>� -'core �• non'pin,hsti
hit r ,(w nh c[dctik pliots brad
i;ttp;.
Roger, his wife Sandy and their son Kevin are very keen on seeing the farm remain one of the largest
operating `=arms in Jefferson County_ Rogcr Short grew up on the property, has been operating the farm
for many years and is nearing retirement age. Ile has nine siblings that are part owners in portions of the
farm through the family Trust though are not involved in the daily operations, and easement funding
would allow Roger to consolidate ownership and reduce the threat of a division of the farm by siblings.
His son and farm manager are %cry motivated to operate and grow the business and they are all
interested in improving the infrastructure on the property. It is estimated that there are as many as 10
additional devctopment rights given the existing grandfathered parcels and county zoning. Conservation
easement funding will allow the farm to remain as one parcel. Properties nearby have been sold in 20
acre parcels and while small scale agriculture on 20 acres is viable, maintaining our larger farms for
current and future diverse agricultural practices is a local priority.
b. Describe any participation by the current property owner in any other agricultural land
conservation programs, including the program and nature of the involvement.
A portion of the riparian buffer on Naylors Creek, a tributary to Chimacum Creek is enrolled in the
CREP program through the Jefferson County Conservation District. A hedgerow buffer has been
established on both sides of the creek. Naylors Creek is utilized by fish for spawning and rearing and
this buffer will provide shade and temperature control.
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.
Over the last 8 years as dairy farming has become less profitable, the Short Family has made a very
successful transition to raising grass fed cattle. The demand for local meat is high and the Shorts sell
their beef in 6 local restaurants, several farmers markets, and 2 retail outlets. Their beef has become very
popular in several schools through the farm to school program, and most recently is offered in the
Jefferson County Hospital It we are successful in raising the funds to bury the casement they will be
able to expand the operation from 5 to 8 employees and are very interested in working with the
community to develop a local meat shop and processing capability. This is a community need that has
been recognized for many years.
Jefferson County has a thriving agricultural economy and culture. Community interest in local food and
food security is strong and growing. The Port Townsend Fanners Market is the largest market west of
Scuttle and continues to grow and the newer Chimacum Farmers Market is contributing to the rebirth of
downtown Chimacum, along with the very popular Chimacum Corner Farmstand. The Farmstand and
our local Food Coop feature locally grown produce, grain and fruit and Short Farm meat products and
are thriving community hubs. Tile Jefferson Land Works Collaborative and other local groups like the
Quimper Grange and Chimacum Grange have made farmland preservation and support for agricultural
producers top priority of their proactive work in the last several years. Community interest and support
is demonstrated by the recent farmland projects that have garnered community, state and federal support.
including Glendale Farm, Brown Dairy, Red Dog Farm. Finwiver Faun. SpringRain farm, Compass
Rose Farms and the recently funded RoultDn Farm project.
10. Describe the educational or interpretive opportunities that exist for providing public access,
educational or interpretive displays (signage, kiosks, etc.) on the proposed site, including any plans
to provide those improvements and any plans for public accessibility.'
The Short Family is dedicated to providing and expanding education opportunities and demonstrations
on the farm in concert with other partners in the agricultural community. The Short Family Fortin has the
potential to be included on the Jefferson County annual Fann Tour. If the easement is secured, the faun
will also likely be one of many properties included in property tours coordinated by Jefferson Land
"Crust. Its location on a major Olympic Peninsula tourist route provides opportunities for both retail
sales at a farm stand, and demonstration of sustainable farming practices to both tourists and residents.
A demonstration haylage training, provided by Roger Short and sponsored by WSU Cooperative
Extension took place in 2012 that drew participants from Kitsap, Jefferson and Clallam Counties.
11, The proposed acquisition _ includes historic or culturally significant resources '3 and
_ is registered with the National Register of Historic Places, or an equivalent program.
_ is recognized locally has having historic or cultural resources.
_ is adjacent to and provides a buffer for a historic or cultural site.
jfaf rmative in any of the above, please describe below, and cite orhrovide dociunentulion of the
historical or cultural resources.
Not applicable
12a. Describe the extent and nature of current and planned silvicultural use of the proposed
acquisition. Please cite or i-ovide doctementation ofe.cistir?g or planned silviculliiral cietivities
incluiding,/oresf management plan /s% or forest ecosystem restoration.
None planned
b. Describe any participation by current property owner in silviculture conservation programs,
including the program and nature of the involvement.
None planned
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
-The w ar is "education" and `intoipietation are interpreted bmadly d� d eCF Committee.
' Culnn-al resources means aiel eoloaic tl and historic sites and artrfacts, and traditional religious ceremonial and
social uses and actk ities of affected Indian "Tribes and mandatory protections oTresources under chapters 27.44
anti?% i RCW.
l I)
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.
Initials a:77 i Datc
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. S_ S _Initials 2-/2-711-1) Date
please note: if none of the answers provided describe the project, answer "N /A" or "0 ".
ADJUSTED
CRITERIA SCORE X WEIGHT SCORE
'fo what degree does the project leverage contributions
for acquisition from groups, agencies or individuals? X
(Points awurded bused on the pn'lowing
level of contrihution)
a.I,C \,- ,Ilgcs ignii;ctui,l - 3 points
h. Levuzges moderatc!ti , points
a Meets requirement - l point
2093 Jefferson County
Conservation Futures Program
j"-
Ratings Sheet
please note: if none of the answers provided describe the project, answer "N /A" or "0 ".
ADJUSTED
CRITERIA SCORE X WEIGHT SCORE
'fo what degree does the project leverage contributions
for acquisition from groups, agencies or individuals? X
(Points awurded bused on the pn'lowing
level of contrihution)
a.I,C \,- ,Ilgcs ignii;ctui,l - 3 points
h. Levuzges moderatc!ti , points
a Meets requirement - l point
February 25, 2013
Sarah Spaeth
Gxecutivc Director
Jefferson Land Trust
10.3.3 La�,Nrence Street
Port 'I WA 98368
Dear Sarah..
,this letter is to indicate our interest in selling a conservation easement on the follwAinQ parcels
of land for protection purposes:
Fax Parcel Numbers: 90123)')002, 901233005, 901233008, 901233010, 901 23A] 1. 901224001.
901262002-901262001.
We, also understand that this sale is contingent on funding from the Jefferson County
Conservation Futures Program and other grant programs.
Kcgcr and S r dy Short
720 Center oad
C'himacum. WA 983'
February 25, 2013
Valley View N & L Family Trust
Sue Mclntire, Trustee
204 Fox Trail Road
Port Townsend, WA 98368
Re. Purchase of Jefferson County Tax Parcel Numbers 901 224 001, 901 233 002, 901 233 008
and 901 233 005.
Dear Trustee,
This letter is to confirm the recent discussions between Valley View N & L Family Trust (the
Trust") and us regarding a conservation easement to be held by Jefferson Land Trust :hat
might be placed on our property in Jefferson County. Washington, and our proposal that the
Trust sell the above - referenced tax :)arcels to us so that land can also be included in the
coverage of the conservation easement. The conservation easement would preclude the
conversion of the included land to nonagricultural uses, such as residential, commercial. or
Industrial development.
The purchase of the conservation easement would most likely be funded by one or more
government or private grants. In order to pursue grant funding, it is necessary to confirm in
writing that the Trust is willing to sell the land included in those tax parcels for the full fair market
value of the land, determined by an appraisal, if the funding can be secured.
To ndicate the intent of the Trust to 3eil to us the above - referenced tax parcels for their
appraised fair market value, subject co the foregoing contingencies, please sign this letter in the
space provided below and ret rn the original to us.. retaining a copy for the Trust's records
Please do not hesitate to contact me if you have any questions.
Sincerely,
Roger Short �� ✓ ✓�i� Sandy Short
AGREED V�
Trustee. Valley vew 'J & L Family Trust
JEFFERSON LAND TIZ S'T'
Helping the corpiunity preserve open apace, working lands and habitat frrever
1033 L acvrence Street, Port Townsend, WA 98368
360- 379 -9501 — office 360 -3 ?9 -9897 — £as
wwv.saveland.org jlt(tisaveland.org
ESTIMATE OF VALUE POR SHORT FAMILY FARM
The basis for cost estimate is the value of nearby conservation easement purchases on agricultural
lands with a similar number of development rights.
Sarah Spaeth C9�
Executive Director
February 27, 2013
� ZEE 6jt`O
o(�MO i¢Jl
-Ieb`erson Land ]"rust is a 501 O (3) non -pro64 tax-exempt, -,,,cafe cprzNJr26on.
Printed on pep?,
Short Family Farm Property
CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2013
Short Family Farm
Short Herd — facing NE
►"�v -:. `:'_^•4°" - 'lilt
Naylors Creek as it enters Chimacum Creek — facing SW
Trumpeter Swans foraging — facing west with Finnriver Farm to left
INTERNAL REVENUE SERVICE
DISTRICT DIRECTOR
2 CUPANIA CIRCLE
MONTEREY PARK, CA 9'_755 -7406
Date: MAY 03 1091
JEFFERSON LAND TRUST
C/O DOUG MASON PRES
PC BOX 1610
PORT TOWNSEND, WA 98368 -0109
Dear Applicant:
DEPARTMENT OF '2112 TRHAS:JRY
Employer Identification Number:
91- 1465078
Case Number:
954109002
Contact Person:
TYRONE THOMAS
Contact Telephone Number:
(213) 894 -2269
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 vcu
lose your section 509(a)(' -) 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)(i) 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 ycur private
foundation status, please keep it in your permanent records.
If you have any TJPsLi0cs, please contact the person whose name and
telephone number are shown above.
Sincerely yours,
a
�?t
Ri rhard R. Orosco
District Director
Jefferson Land Trust
P.U. Box 1610
Port Townsend, Washington 98368
Internal Revenue- Service
Service Center
.4TTN: Entity 1
Odgen. Uf 84201
RE: Name change
E1N 91- 14650;8
Dear Kr or Madam:
By resolution of the Board of Directors on November 13, 1991, the
Jefferson County Land Trust changed its name to Jefferson Land
Trost.
THh s is a name change only-. Please change our name in your records
regard; g our ElN and our 501(6(3) status.
Plank you.
Jefferson Land Trust
by:
JulianneMcCulloch
Secretary
Internal Revenue Service
District Director
P 0 BOX 2350 ROOM 5127 ATTN: E.O.
LOS ANGELES, CA 900532350
Date: MAY 8, 1990
JEFFERSON COUNTY LAND TRUST
1322 WASHINGTON PO BOX 1610
PORT,TOWNSENT, WA 98368
Dear Applicant:
Department of the Treasury
Employer I dent ir icaL on Number:
91 °1465078
Case Number
95DII4110
Contact Person:
JOSEPH CUNHA
Contact telephone Number:
(213) 894 4L70
Accounting Period Ending:
December 31
Foundation Status Classification:
see attached
Advance Ruling Period Begins:
April 7, 1990
Advance Ruling Period Ends:
Dec. 31, 1993
Addendum Applies:
none
Based on information supplied, and assuming your operations still be as
stated in your application for recognition of exemption, iae have determined you
are exempt from Federal income tax under section 501(a) or the Internal
Revenue Code as an organization described in section 501(c)(3).
Because you are a nemly created organi zatioii, rie are not 110H making a
final determination of your Foundation status under section 509(a) of the Code.
However, ue have determined that you can reasonably be expected to be a pub!ic -
ly supported organization described in sections 509(x)(1) and 170(b)(1)(A)(vi).
Accordingly, you rail) be treated as a publicly supported organization,
and not as a private foundation, during an advance rul ino 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 muei
submit to us information needed to determine whether you have met the rerlulre-
nents of the applicable support test during the advance ruling period. If you
establish that you have been a pub Iic;y supported organization, y 3 i -rii! be
classified as a section 509(a)(1) or 509(x)(2) organization as long as ycu con-
tinue to meet the requirements of the appiicab le support test. If p'ou do not
neet the public support requirements during the advance ruling period, you Hill
be classified se; a private foundation for future periods. Also, if you are
classified as a pr, vate foundation, you will be. Lreated as a private foundation
from the date of your inceptIrn for purpose; of sectiorra S07(d) and 4940.
Grantors and con, ributurs may reiy on the det ^rmi rat ion that you are not a
private foundation until 90 days after the end of your advance ruling par!od.
if yov si_ibc,IL the raquirsd nfonna ti or. within the 90 days, grantors and contri-
butors may continc.e to rely on tha advance determines %or, lint il Cho Ser irce
I Etter- L04!, CG)
-2-
JEER " *. N 'MUM LAND fRUS-
Pakas r. .inaI determination of your fourndatior. state,,
,f notice that you wilt no longer be treated as a publicly supported or,
ganization is published in the Internal Revenue BuIIeLin, grantors and con-
tributors may not rely on this determination after the data of such publica-
tion. In addition, if you lose your status as a publicly supported organiza
-
tion and a grantor or contributor was responsible for, or ryas araare of, the act
rr `aiiure to act, that resulted in your loss of such staters, that ;,erson may
not rely on this determination from the date of the act or fa I JUIC to act.
Also, if a grantor or contributor learned that the Service had given notice
that you- would be removed from cidssification as a publicly supported organia-
tlor., then that person may not rely on this determinaLion as of the date such
znowledgewas acquired.
If your sources of support, or your purposes, character, or method of
operaLion changes, please let us know so o-te can consider the effect of the
change ors your exempt status and foundation status, In tho case of an amend -
,ae�t to y <xrr organiz.atr al doc- 'r,ent or bylaws; le��s•a senr
R I us a copy
amesc'eC dacument or by!a-s. (v so, yo= should infor.e rus oi' al of the
.ran& or aoe;ress_ :.han_yes ur your
As cP .anuory 1, 1964, you are liable for taxes under the Federal Iraur-
a,-ce Contributions Act (social security toxes) on remuneration of $LUO or more
you pay to each of yaur employees during a calendar year. You are not liable
for t.l?e Fax imposed under the *ede.ral Unemployment Tyro; Act ( ?,UTt,),
Urgar,i zati ens that are not private foundati ors; are not subject to 'the pri -
vate fopndation excise taxes a der --hapter 42 of the Code. Hos: ever, you are
,rot automatically exempt from rthrer Federal exc'ae taxes. If You have any
questions about excise, employment, or other Federii taxes, please Fat us
know-
Donors: may deduct contributions to you as provided in section L70 of the
Qde. Bequests, legacies, devises, transfers, or gifts to you or for- your we
re c ductible
For Federal estate and gift tax puri;osc!s if they meet the appir-
:.ao; P- ,o�isfons of sections 2055, 2165, and 2S2f Lne Code.
or-rrioution deductions are nllowabra to donors orfy ;:o the exee>nt: Lhat
-tie;- ortributions are g e is witl, no conside ration received. 7icKrot Pur-
,�hases arc similar payments -n rnrjunctwn :with Fundraising events may riot
lace; zar y qua :lfy as dedrct b e contributions, depending on the circum-
Starres. See Revenue Ruling 67 -246, published in Cumd athm Bulletin 1967 -2.
on page 104, shlch sets forth guldelines regarding the deductibility as
r
ne
LabiE onc<- ibutions, of nayraents made by taxpayers for armis:ian to or olne i-
r
paro nwan on w fundraising act.vities for charity.
you are r- qulred to file Fo.rr 990, :isturo Gf trrganization 1(xempt From
:�corvc is },, only if your gross receipts each year are nonwit y more than
$25, DOW However, if rrou receive a Form 936 package in the mail, please file
the return even 1f you do not excoed the cross roceip`c- test. If you area n&,
1 etior i045CCGJ
-3-
JEFFERSON :COUN Pe LAND TRUST
required to file, simply attach the label provided, check the box in the head
,rig to indicate that your annual gross receipts arc normally $25,000 or less,
and sign the return.
If a return is required, it must be filed by the 15th day of the fifth
month after the end of your annual accounting period. A penalty of $10 a day
is charged when a return is filed late, unless there is reasonable cause for
the delay. Hot +over, the maximum ponalty charged cannot exceed $5,600 or 5 per-
cent 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 611 of the Code:,
If you are subject to this tax, you must file an income tar, return on Form
990-T, Exempt Drganization Business Income Tax Return. In this Ieti-er rie are
not determining whether any of your uresent or proposed activities are unre-
lated trade or business as defined n section 513 of ;he Code.
You need an employer identification number even if you have no employees.
If an employer identification number Has not entered on your application, a
number Hill be assigned to you and you Hill be advised of it.. Please use that.:.
number on all returns you file and in all correspondence pith the Internal
Revenue Seryico_
If He have indicated in the heading of this letter that an addendum
applies, `she 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 whose name anti
telephone number are shown in the heading of this le=tter.
t. tic I osure(s):
Form 872 -C
incere1y yours,
Michael J. Uninn
District Director
,__tter IG�45Cp�'
-4-
jF ERSON COUNTY LAND 1RUST
r-UUNDAT]DN S "iATUS:
170(6) (D (A) (vi) and 509(a)'i)
Form 872—C
(Rev. March 1986)
Depagment o f tno Treasury— Intaval Revenue Szrvice
Consent Fixing Period of Limitation Upon
Assessment of Tax Under Section 4940 of the
Internal Revenue Code
(See Form 10231nstructleinafor Part IV, tine 3.)
OMB ,W, 1545Lb56.
uphts 3 -31.69
To be used with Form
1023. Sub in it In
dupll< ate.
Under section 6501(c)(4) of the Internal Revenue Code, and as part of a request filed with Form 1023 that . the
organization named below be treated as a publicly supported organization under section 170(b)(1)(A)(vi) or section
509(a)(2) during an advance ruling period,
JEFFERSON COUNTY LAND TRUST
(Ex act rega/name oforganlzat]on) -- "... "
District Director
P.O: BOX 1bi0, PORT TOWNSEN ➢, WA 98368 and the of internal Revenue
(Number, ................... ... .... ......
( Number; street, is yor own. state, aid Zipcode) --
Consent and agree that the period for assessing tax (imposed undersection 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 wifl be further extended by the number of days the assessment is prohibited, plus
60 days.
Ending date of first tax year ..... 12/31/89
7ErF cpc N ; COUNIT _l 1N J i' U
;,
trustee namnIt aumonty
Signature D
District Director
A.
nenc, Acott Roth
fr�i ;tAEL I iii A
V(NI4
Ferpaptnear#PedwO'Crt A-t rd"tb_e, t,r page 1 of 1%, 023imt:uU:ons.
Date
21/6/90
Date
h'qy 8
MI6
Land Trust
2013 Budget for JILT
come
Unrestricted Capital Funds for Programs and
Values of Conservation Easements
Restricted Capital Funds, Grant Funds from
Gov'I and Private Sources
Endowment Funds
Operations Income
2013 General
Actual - YTD 2013 Operating Fund Cash Flow
November, 2012 Budget Budget Notes
Example Donations to Opportonyr'.-d,
$ 454960 S 55,500 $ - donations ofland
Example - QWt, ampaigo, Grant funded
$ 559,837 5 797,775 $ 160,775 conservaton projects
$ 3,526 $ 3,200 $
Annual Contributions
$
80,556
5 126,950
$
101,100
Example - Quarterly constituent madfngs
(Pledges)
$
216,250
5 135,300
$
170,000
Example- CUnsenaiion Breakfast pledges
Multi -year Contributions
286,572
$ 28b,572
Outreach, and Devo expenses
4,3UJ stevardship
Events (Rainfest and other
6: 2013, to he used for NOSC project on
Opportunity Fund
5
6,510 Snow Creek Estuary
Special
ticketed events(
$
127,491
5 138,250
$
139,250
Exan-pie- Rainfest or Valentine's Day Party
120,990
Horizon rant
$ 110,980
1,500 expeaes
management related or overhead
Administrative Expenses
Example- Educational Outreach or
Joanna n,na Loher beq lest
Tapley Brown loan paymenK__
5
7,400
Gcvcrnment payments for grant funded
$
224,410
59,405
S 67,170
$
67,170
conservation projects
Fee for Services
_< 359,964
All payroll
Payroll Expense
Investment income
$
5,663
5 6,050
$
6,000
$
3,831
$ 2.890
$
2,890
Sponsorships of programs
Other __
Total Expense --__..
Total Operations Income
5
493,196
5 476,310
5
485,410
_
338,092
1,607,519
$ 1,342,785
$
646,185
$ 1102,3410
Total income -
-
--
- - --
and Use of Other Cash Funds
2012 General Fund Balance
$
91 000
Forest Initiative Fund
$
39,000 Use on Fbmriry related
Inc
Conservation Projects, Stewardship,
Cost of Goods Sold
$
870,634
$
`>
286,572
$ 28b,572
Outreach, and Devo expenses
4,3UJ stevardship
eulls Fund
6: 2013, to he used for NOSC project on
Opportunity Fund
5
6,510 Snow Creek Estuary
$
Admloistrative expenses that are
QWC
Scheinfeld Family Foundation annual grant
$
99,461
S
120,990
Horizon rant
$ 110,980
1,500 expeaes
management related or overhead
Administrative Expenses
25,[H;0 1, 2 of 556K beq u?it to be usod in 2013
Joanna n,na Loher beq lest
Tapley Brown loan paymenK__
5
7,400
Total Dther Funds__ -
$
224,410
$
299,332
$_22,009
5
350,964
_< 359,964
All payroll
Payroll Expense
S
1,269,427
$
758,526
5 748,526
Total Expense --__..
S
338,092
$
584,259
$ 1102,3410
income
and Use of Other Cash Funds
2012 General Fund Balance
$
91 000
Forest Initiative Fund
$
39,000 Use on Fbmriry related
Inc
niPS,
Use on Working Ag attwitiet, incluoiog
Working Lands Fund
$
44,000 acwardship
the nn Bulis related projects and
5
4,3UJ stevardship
eulls Fund
6: 2013, to he used for NOSC project on
Opportunity Fund
5
6,510 Snow Creek Estuary
$
- Expert to use appal campa:gc rmd,
QWC
Scheinfeld Family Foundation annual grant
S
E,000 Expert [otundrea tation
rran:
PfiW le OUnda LOn yf<ln: For fo25[rV/ i'elated
Horizon rant
S
1,500 expeaes
$
25,[H;0 1, 2 of 556K beq u?it to be usod in 2013
Joanna n,na Loher beq lest
Tapley Brown loan paymenK__
5
7,400
Total Dther Funds__ -
$
224,410
-t General Fund Balance eN of year 2013
,.d
$_22,009
i ncudcs nwe pagrol2 ,P naeand
fired ben eral Fund Balance end of car 2U13 _ L4 -000 r iuirement far -c'er eGO,
_ras oral Rtr. > IISlil
ROSTER
BOARD MEMBERS
MOORS, Steve - President
REID, David - VP
HULTMAN, Glenda
KEIST=R, Gary - Treasurer
LAMKA, Kathryn - Secretary
MEYER, Bill
TYLER, Joanne
VAN C'_EVE, Brie_
STAFF
SPAETH, Sarah- Executive Director
BAIER, Ann - Finance Director
CLENDANIEL. Carrie - Americorps Stewardship Coordinator
KINGFISHER Erik - Stewardship Director
NEWMAN, Nancy - Conservation Associate
OAKLAND, Joan - Office Manager
ROBERTSON, Caroline - Outreach Director
SMITH, Shelby - Development Director
WACKER Kathleen - Finance Assistant
JEVPERSONLAND TRUST
AND SUBSIDIARY
Consolidated Financial Statements
For the Year Ended December 31, 2011
Table of Contents
Independent Auditors' Report
Consolidated Financial Statements:
Consolidated Statement of Financial Position
Consolidated Statement of Activities
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Supplementary Information:
Consolidated Statement of Functional Expenses
Pogc
5 -17
18
Independent Auditors' Report
Board of Directors
Jefferson Land Trast and Subsidiary
port Townsend, Washington
certified P011C
We have audited the accompanying consolidated statement of financial position of Jefferson Land
Accountants Trust and Subsidiary (collectively, JLT, a non -profit organization) as of December 31, 201 I, and the
and Consultantsr- related consolidated statements of activities and cash flows for the year then ended. These financial
statements are the responsibility of JLT's management. Our responsibility is to express an opinion on
these financial statements based on our audit. The prior year summarized comparative information
has been derived from JLT's 2010 financial statements and, in our report dated May 17, 2011, we
expressed an unqualified opinion on those financial statements.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether ie financial statements are free of material misstatement. An audit includes
esamining, on a test basis, evidence supporting the amounts and disclosures in the Financial
statements. An audit also Includes assessing the accounting principles used and significant estimates
made by management, is well as evaluating the overall financial statement presentation_ We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of JLT as of December 31, 2011, and the changes in its net assets and its cash flows
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
Ow' audit was conducted for the purpose of forming an opinion on the financial statements as a
whole. "I'he consolidated shatcmcnt of functional expenses on page 18 is presented for purposes of
additional analysis and is not a required part of the financial statements. Such inforiation 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 EJnited States of
AAmerica to our opinion, the information is fairly stated in all material respects in relation to the
financial staemeuts as a whole.
&�t� `1� P s
Ccmfied Public Accountants
April 3, 2011
JEFFERSON LAND TRUST AND SUBSIDIARY
Consolidated Statement of Financial Position
December 31, 2011
(With Comparative Totalsfor 2010)
2Jt1 201!1
Assets
Cash and equivalents
S 284,193
S
360,332
Investments (Note 2)
459,277
312,047
Accounts receivable
51,840
76,292
Pledges receivable (Note 3)
484.224
499,028
Note receivable (Note 4)
81,803
85,054
Prepaid expenses
1,679
2,347
Land, conservation easements, and purchase options -
Habitat land
660,437
546,491
Working land
25,048
25,048
Open space land
256,332
176,0 4
Conservation easements
47
44
4
Land held for sale
600,OOC
933,760
Land purchase option
52,500
Total land, conservation easements, and purchase options (Note 5)
1,541,864
1,733,937
Furniture and equipment, net of depreciation of $12,996 (2010 - $10,897)
11.671
6.123
Total Assets
$ 2,916,551
$
3,075,160
Liabilities and Ner.9cs'ets.
Accounts payable
$ 8,863
$
34,727
Accrued expenses and deferred revenue
49,676
48,338
Purchase option received
120,000
120,000
Long -te,m debt (Note 6)
444,000
657,024
Total Liabilities
622,539
860,089
Net Assets:
Unrestricted (Note 9)-
Undesignated
180,220
(130,320)
Board designated
1,421,864
1,561.437
Total unrestricted net assets
1,602,084
1,431,117
Temporarily restr•cted (Note 10)
660,932
763.728
Permanently restricted (Note 11)
30,996
20,226
Total Net Assets
2,294,012
2,215,071
Total Liabilities and Net Assets
$ 2,916,551
$
3,075,160
Sze ('(- np<in}Da� rrole.v.
0
JEFFLRSON LAtlD TR UST AND S UBSLDI A R Y
Consolidated Statement of Activities
For the Year Ended December 31, loll
(With Comparative lbtals fi r 2010)
Temporarily Permcnaently
Unrestricted Restricted Restricted 20!/ Total 2010 Total
Revenue and Gains:
Gifts and contributions
$ 77,322
$ 259,584 S
10,250
$ 347,156
$ 354,081
Fair value of easement acquisitions
239,500
239,500
166,000
Grants and contracts
324,687
324.687
351,933
Special events income, net of
expenses of $34,726 (2010 - $14,786)
87,260
87,260
113,877
Net gain on investments (Note 2)
7,598
520
8,118
30,600
17,685
17,685
23,580
Rental income
3,016
Other
Release from restriction (Note 10)
362,380
(362,380)
Total Revenue and Gains
1,116,432
(102,796)
10,770
1,024,406
1,043,087
Expenses:
781209
781,209
723,947
Pro ram
g
General and administrative
93,392
93,392
79,286
70.864
70,864
77,737
Fundrasing
945,465
945,465
880,970
Total Expenses
Change in Net Assets
170,967
(102,796)
10,770
78,941
162,117
Beginning of year net assets
1,431.117
763,728
20,226
21215,071
2,052,954
End of Year Net Assets
$ 1,602,084
$ 660,932 $
30,996
$ 2,294,012
$ 2,215,071
JEFFERSON LAND TR UST AND SUBSIDIARY
Consolidated Statement of Cash Flows
For the Year Ended December 31, 2011
(With Comparative Totals for 2010)
Cash Flows from operating Activities:
Change in net assets
Adjustments to reconcile change in net assets to
net cash provided by operating activities -
Depreciation
Imputed interest expense
Realized and unrealized gain on investments
write down of land value due to conservation easement
Donated stocks received
Donated land received
Pledge of donated land
Changes in assets and liabilities:
Accounts receivable
Pledges receivable
Prepaid expenses
Accounts payable
Accrued expenses and deferred revenue
Net Cash Provided by operating Activities
Cash Flows from Investing Activities:
Purchases of investments
Proceeds from sale of Investments
Proceeds from note receivable
Purchases of land and land purchase option
Proceeds from sale of land
Sale of purchase options
Purchases of furniture and equipment
Net Cash Provided (Used) by Investing Activities
Cash Flows from Financing Activities:
Payments on long -term debt
Net Cash Used by Financing Activities
Net Change in Cash and Cash Equivalents
Cash balance, beginning of year
Cash Balance, End of Year
Supplemental Disclosure of Cash Flow Information:
Cash paid for Interest
lec - r:'cc�u /'ar_t'ii; nubs.
i
2011 2011)
5 78,941 $ 162,117
2,099
5,467
24,999
(32,735)
(20,000)
(15,000)
1,339
36,000
(16, 930)
24,452
22,746
29,804
(37,211)
668
2,683
(25,864)
20,475
1,338
2,574
74,169
193,793
(239,957)
119,995
3,251
(174,186)
308,760
52,500
(7,647)
62,716
(181,925)
221,887
(208, 291)
(3,243)
(171,572)
(213,024) (5,229)
(213,024) (5,229)
(76,139) 16,992
360.332 343,340
$ 284,193 $ 360,332
18,367 $ 23,151
JEF1,ERSOly LAND TRUSTAND SUBSIDIARY
,,votes to Consolidated Financial Statements
For the Year Envied Decetnber 31, 2011
,Note l - Organization and Sntnrttary of Signiflernt Accounting Policies
organization - Jefferson Land Trust (the Land Trust) is a Washington non - profit corporation, formed on April 7,
1989. The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land
conservation purposes 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, JILT Resources, LLC was formed with Jefferson Land Trust as its only member. JILT
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 JILT Resources, LLC (collectively, "JILT"). Inter - organization balances and transactions have been eliminated
in consolidation.
Basis of Accounting - The consolidated financial statements of JILT have been prepared on the accrual basis of
accounting.
Basis of Presentation - Net assets and revenues, expenses, gains and losses are classified based on the
existence or absence of donor- imposed restrictions. Accordingly, the net assets of JILT and changes therein are
classified and reported as follows:
Unrestricted Net Assets - Include al! net assets on which there are no donor- imposed restrictions for use.
or on which donor - imposed restrictions were temporary and have expired
Temporarily Restrcted 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 - Induce 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 consaidatec statement of activities as net assets released from restriction Gifts of equipment
are reported as unrestrcted 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.
JEFFERSON LAND TR UST AND S UBSIDLARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 1011
Note 1 - Conlinuerl
Use of Estimates - The preparation of financial statements in conformity with accounting princ'.ples 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, JLT 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 14% of pledges receivable at December 31, 2011, and the total of
all pledges from board members represented approximately 28% of pledges receivable at December 31, 2011.
One donor's pledge represented approximately 25% of pledges receivable at December 31, 2010, and the total of
all pledges from board members represented approximately 33% of pledges receivable at December 31, 2010.
Investments - Investments in marketable securities with readily determinable fair values 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.
JLf has established a designated fund at Jefferson County Community Foundation. As JLT has designated dself
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 al;owance 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 - JLT 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 ecorded as deferred revenue.
Furniture and Equipment - Furniture and equipment are caplta'',ized 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 .emoved from the respective accounts and the net difference, less any amount
realized from disposition, is ref:ec`.ed '.n 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.
6 -
JEFFL'RSON LAND TR UST AND SUBSIDL4 RY
Noses to Consolidated Financial Statements
For tire Year Ended December 31, 2011
Note 1 - Continued
Land and Easements - JILT 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 JILT manage these properties to protect the natural biological diversity of
the property. JILT 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 JILT 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
JILT. 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 field by JILT. Easements held by JILT are carried on the
consolidated statement of financial position at a'1 each for tracking and accounting purposes. Three
easements valued at $239,500 total were donated to JILT during the year ended December 31, 2011.
Accordingly, $239,500 of contribution revenue and $239,497 of related write down expense have been
reported on the consolidated statement of activities for the year ended December 31, 2011_
Land Held for Sale - At December 31, 2010, JLT owned two properties.. Red Dog Farm and Tamanowas
Rock Sanctuary, to be sold in the near future under prearranged agreements with each potential owner.
During the year ended December 31, 2011, Red Dog Farm was purchased by the then- current lessee
after JILT finalized and recorded a conservation easement with the new owner. This conservation
easement will ensure Red Dog Farm will continue to operate as a working farm, and will protect critical
habitat for salmon and other wildlife in perpetuity. Tamanowas Rock Sanctuary was purchased by JILT
with the help of the Jamestown S'Klaliam Tribe and a low interest loan from the Bullitt Foundation (Note
6). The Jamestown S'Klallam Tribe purchased an option on the property which is anticipated be exercised
in 2012. The intention of the tribe is to protect the property in perpetuity for both habitat and cultural
purposes. Tamanowas Rock Sanctuary has a long history of cultural ties to the Jamestown S'Klallam
Tribe
Lard Pur-hase Option - At December 31, 2010, JLT had S52,500 invested in purchase options for
Chimacum Dairy, a historic dairy farm in the Chlmacum Valley. These options were sold at cost during the
vear ended December 31, 2011, wrier a group of conservation Investors bought the farm, reimbursed
JLT for the purchase option amount, and entered into a long -term lease with a local creamery in Jefferson
County. JLT already holds a conservation easement on the property for wor:King farm and habitat
purposes. The group of conservation investors includes related parties to J'_T.
.1EFFERSON LAND TR UST AND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 1 - 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 for an option to purchase the property which is anticipated to be exercised in 2012. At
that time, JLT will pay in full the outstanding balance on the Bullitt Foundation loan with proceeds from the sale of
the property to the Jamestown S'Klallam Tribe and other potential conservation partners. The intention of the tribe
and JLT is to protect the property in perpetuity for both habitat and cultural purposes.
Federal Income Taxes - The Internal Revenue Service has determined Jefferson Land Trust and JLT
Resources, LLC (Contributions to JILT)are deductible as allowed runder taxes
170(b)(1)(A)(v )nof Revenue
e Code. Code
Section 501(c)(3).
JLT files income tax returns with the U.S, government. JLT is subject to income tax examinations for the current
year and certain prior years based on the applicable laws and regulations.
During the year ended December 31, 2011, the Land Trust elected the provisions of Section 501(h), relating to
expenditures to influence legislation. -
Functional Allocation of Expenses - The costs of providing the various programs and other activities have been
summarized on a functional basis in the consolidated statement of activities. Accordingly. certain costs have been
allocated among the programs and supporting services benefited.
Comparative Amounts for 2010 - The financial statements include certain prior -year summarized comparative
information in total but not by 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, 201C, from which the summarized information was derived.
Subsequent Events - JLT has evaluated subsequent events through April 3, 2012, the date on which the
consolidated financial statements were available to be issued.
Note 2 - Fair Value Alea.surements
GAAP defines fair value, establishes a framework far 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 uniting Level 1 inputs are based on unadjusted
quoted market prices within active markets Financial assets and liabilities valued using Level 2 inputs are based
primarily on quoted prices for similar assets or liabilities in active or Inactive markets- Financial assets and
liabilities using Level 3 inputs were primarily valued using managements assumptions about the assumptions
market participants would utilize in pricing the asset or liability. Valuation techniques utilized to determine fair
value are consistently applied_
- is'-
JEFFERSON LAND TR UST AND SUBSTDIAR Y
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 2 - Continued
Following is a description of the valuation methodologies used for assets measured at fair value. There have been
no changes in the methodologies used at December 31, 2011 or 2010.
Certificates of De osit - Valued at cost plus accrued interest, which approximates fair value.
Mutual Funds - Valued at quoted market prices in active markets, which represent the net asset value
tNAV) of shares held by JLT 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.
Fair Values Measured on a Recurring Basis - Fair values of investments measured on a recurring basis at
December 31 were as follows:
Farr Yahte �Lleururements o, o %Deceniher 3h ?U1 !
Ouored Prices
Sigrti_fcani
inAtfive
Other
SigniTCan!
Markets for
9b- setvab(e
L'nobserrable
ldenlical.Asseis
Inputs
Lnpucs
(level t)
llLvel2)
(Level 3) Total
Certificates of deposit $ - $ 366,712 $ - $ 366,712
Mutual funds -
Fixed income mutual fund 36,480 36,480
Funds held at Jefferson County 56,085 55,085
Community Foundation
Total S 36,480 $ 366,712 $ 56,085 $ 459,277
Fair value Afeasw'emc,mv as (y December 31, 2010
Ouoted Prices
Sign ficant
in fetive
Other
Significant
;Lhrrkets for
Obsercahle
Unobservable
Identical Asseis
Inputs
Inputs
lLe;¢l1)
/Level 2J
Certificates of deposit $ - S 150,879 $ - $ 150,879
Mutual funos-
Fixed income muti,alfund 35,791 3 5,79 1
Funds held at Jefferson County
Community Foundation 125.377 125,377
Total $ 35,791 $ 150,879 $ 125,377 $ 312,047
-`)
JEFFERSON LAND MIST A" SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 2 - Continued
A reconciliation of the beginning and ending balances for fair value measurements made using significant
unobservable inputs (Level 3) are as follows.
Beginning balance at January 1
Interest income
Realizedfunrealized (loss) gain
Investment fees paid
Withdrawals
Ending Balance at December 31
Investment return for the years ended December 31 consisted of the following.
Interest income
Realized /unrealized (loss) gain
Investment fees
,Vote 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 tc present value (0.6 %)
Less allowance for uncoNectible pledges
io
2011
$ 125,377
4,349
(5,122)
(3,234)
(65 285)
?0 T()
$ 175,078
2,464
16,820
(3,518)
(65,467)
$ 56,085 $ 125 377
2011 ?010
$ 16,819 $ 17,188
(5,467) 16,930
(3.234) ,3,5 18)
$ 8 118 $ 30 600
2011 201(7
$ 217,724 $ 154,930
252,910 287,210
23,750 56,888
494,384 499,028
(5,160)
(5,000)
$ 484 224 $ 499,028
JEFFERSON LAND TRUSTAND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note A -Note Receivable
On February 15, 2008, JILT granted a loan to an individual in relation to one of the pieces of conservation land
owned by JLT. AT received a promissory note in exchange. The promissory note is for the amount of $93,750
and is to be paid in monthly installments of $618.71. The note matures on January 15, 2028, with an annual
interest rate of 5 %-
The note receivable at December 31 is to be received as follows:
Less than one year
Two to five years
Thereafter
2011 2010
$ 3,405 $ 3,239
15,454 14,702
62.944 67,113
$ 81,803 $ 85,054
Note 5 - Land, Conservation Easements, and Purchase Options
Land, corservation easements, and purchase options at December 31 are summarized as follows:
Corservation lands -
Ouimper Wildlife Corridor
Duckabush Oxbow
Chimacum Creek
Bulls Forest Preserve
Kilham Corner
Snow Creek Estuary
Gateway
Donovan Creek
Conservation easements
Land purchase option
Land held for sale -
Red Dog Farm
Tamanowas Rock Sanctuary
N -
?011
201 (
$ 264,987
$ 26 1,803
180,000
180,000
160,160
140.160
125,240
125,240
38,930
38,930
86,000
1,500
85,000
1,500
47
44
52.500
333,760
600.000 600,000
$ 1,549,884 $ 1,733,937
,/EFFERSON LAND TRUST AND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 6- Long -Tenn Debt
On December 18, 2007, JLT entered into a loan agreement with a commercial lender in the amount of $226,110.
The loan bore interest at 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
non -profit 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 %. The discount on the loan of $36,000 is being amortized to interest expense over the life of the loan.
Imputed interest expense of $36,000 was reported in the accompanying consolidated statement of activities for
the years ended December 31, 2011 and 2010. During the year ended December 31, 2011, the note was
extended through December 31, 2012, at the same interest terms as the original note. The discounted amount
due at December 31, 2011 and 2010, was $444,000,
!Vote 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
2011 and 2010 was $5,298 and $4,934, respectively, and is included in employee benefits on the consolidated
statement of functional expenses.
Note 8 - Lease Agreements
On July 21 2008, JLT entered into an operating lease as lessee for its administrative office in Port Townsend,
Washington. The lease was mewed effective ies. Rent expense totaled $17,678 and $17,03158 agreement calls ended
for monthly payments of $1,412 p F
December 31, 2011 and 2010, respectively.
JEFFERSON LAND TRUST AND SUBSIDI,4RY
Notes to Consolidated Financial Statements
For tine Year Ended December 31, 2011
Note 9 - I/nrestricted Net Assets
Unrestricted net assets consisted of the following at December 31:
Note 10 - Temporarily Restricted ,'Vet Assets
Temporarily restricted net assets consisted of the following at December 31
$ 1,602 084 _J_1431 ,117
2011 2010
Purpose restriction -
2011
2010
Designated -
$ 78,643
$ 83,984
Tamanowas Rock Sanctuary
$ 480,000
$ 480,000
Red Dog Farm
333,760
Quimper Wildlife Corridor
264,987
261,803
Duckabush Oxbow
180,000
180,000
Chimacum Creek
160..160
140,160
Bulis Forest Preserve
125,240
125,240
Kilham Corner
38,930
38,930
Snow Creek Estuary
86,000
1,500
Gateway
85,000
Donovan Creek
1,500
499.028
$ 763.728
Conservation easements
47
44
Total designated
1,421,864
1,561,437
Undesignated
180,220
{130.320)
Note 10 - Temporarily Restricted ,'Vet Assets
Temporarily restricted net assets consisted of the following at December 31
$ 1,602 084 _J_1431 ,117
2011 2010
Purpose restriction -
For stewardship of Bulis Forest Preserve
$ 78,643
$ 83,984
Forest Legacy program
53,865
For stewardship and management services
for Tamanowas Rock
19,008
36,341
To purchase Gateway land
99,525
To preserve and steward Chimacum Dairy
41_.850
Strategic plan
3,000
Other program restrictions
15 032
166,548
264,700
Time restriction -
Outstanding pledges
494,384
-1---66L932-
499.028
$ 763.728
JEFFERSON LAND TRUST AND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 10 - Continued
Net assets of $197,821 were released from donor restrictions by incurring expenses satisfying the purpose
restriction specified by the donor, and net assets of $164,559 were released due to the expiration of time
restrictions for the year ended December 31, 2011,
Note 11 - Permanently Restricted Net Assets
At December 31, 2011 and 2010. JILT had $30,996
assets. This is comprised of endowment investments
general operations.
Note 12 - Endowments
and S20,226, respectively, of permanently restricted net
(Note 12), the income of which is available to support
The JLT endowment consists of one fund established to support general operations. As required by GAAP, net
assets associated with endowment funds are classified and reported based on the existence or absence of donor-
imposed restrictions.
Interpretation of Relevant Law - JLT's Board of Directors has interpreted the Washington State Management of
Institutional Funds Act (PMIFA) as requiring the preservation of the fair value of the original gift as of the gift date
of the donor - restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this
interpretation, JLT classifies as permanently restricted net assets (a) the original value of gifts donated to the
permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in
accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the
fund.
The remaining portion of the donor - restricted endowment fund that is not classified in permanently restricted net
assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by
JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However; JLT has informed
donors of its spending policy which states that no distributions will be made during the first five years of the fund's
existence or until it reaches a threshold balance of $400,000. Since these milestones have not yet oeen 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 preseriation of the funa,
The purposes of JLT and the donor - restricted endowment fund,
General economic conditions.
The possible effect of Inflation and deflation,
The expected total return from income and the appreciation of imrestri
Other resources of JLT. and
The Investment policies of JLT.
JEFFERSON LAND TR UST AND SUBSIDIARY
A'otes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 12 - Continued
As of December 31, 2011, endowment net assets consisted of the following:
Temporarily Permanently
Unrestricted Restricted Restricted Total
Donor restricted endowment funds S - $ - $ 30,9966 $ 30.996
Endowment Net Assets,
December 31, 2011 $ $ - $ 30,996 $ 30.996
As of December 31, 2010, endowment net assets consisted of the following:
Temporarily Permanently
Unrestricted Reslricted Restricted Total
Donor restricted endowment funds $ - S - $ 20,226 $ 20,226
Endowment Net Assets,
December 31, 2010 $ - $ - _$ 20 226 $ 20.226
1) -
JEFFERSON LAND TRUST AND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
Note 12 - Continued
Changes to endowment net assets for the years ended December 31, 2011 and 2010, are as follows:
Endowment Net Assets
January 1, 2010
Endowment investment return -
Interest and dividends
Realized and unrealized gains (losses)
Total endowment investment return
Contributions
Endowment Net Assets,
December 31, 2010
Endowment investment return -
Interest and dividends
Realized and unrealized gains (losses)
Total endowment investment return
Contributions
Endowment Net Assets,
December 31, 2011
Tetinporarily Permanently
Unrestricted Restricted Reslricted Total
- $ - $ 10,000 $ 10,000
194
194
32
32
226
226
10.000
10,000
$ - $ - $ 20,226
$ 20,226
791
791
(2 71
(271)
520
520
10,250
10.250
$ $ $ 30.996
$ 30,996
Funds with Deficiencies - From time to time, the fair value of assets associated with individual donor restricted
endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual
duration. In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets. There were
no such deficiencies as of December 31, 2011,
Return Objectives and Risk Parameters - JLT has adopted investment and spending po'Jcies 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 held 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
hat 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 louidty, and preservation of purchasing
p- cwer over t,me.
-I(i -
JEF- F'ERSONLA,ND TRUST AND SUBSIDIARY
Notes to Consolidated Financial Statements
For the Year Ended December 31, 2011
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 $400,000 threshold, distributions shall be made on an annual basis as determined by the
Board. Regular disbursements should be limited to a maximum of 5% of the value of the 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.
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Je}lcncn Land Trust
RESOLUTION
I ehruar. 19_'_019
lti F1F.RV,AS; Jefferson Land ,'rn,t a, Lh c god erne *gig hod% hercbc apprmcI; sponsorship of
( onsersation Futures E unjn, _ (( F[} niicanors. and
\A -FIERL A5. Jeilzrsoa [ i el :rut npin 11 u- >nnrsor for more 111an ')nIc C ! I apple scion_
,7,, tnd x CI < ;tpplieati !,7,, r� t - tat ,letrsoa an d s rust prto -itizc
Vt HL RE - -4S lelFerson a. nd 1`11nL h -s heen surhtng since 2006 in pu *t tcnt� tlt. ICI Ict,on
1 an1N'orks Cullabornt tow mission is w ke,cpIlle ]ants and .or.,ts of 'effclson count}.
\\ ashingion. %%orking tplo.f uui'r 'ul'l nrotet try anti
w1IF.RLAS. die Short Farr' IN Fat al is indicated a, prisms. 4,a icultutal and t rhiw land in
cr +.J local and iegiona: plans. ane it e dams t c to a�mrlete thz Frvlcct, AND
VA I IERFAS, 276 acres of prince auri fltum ]Laid on the Short F;an kill he prot ted t��: p'iane
a risuitur ' s0ils riparian lizilnult of n .<cc =:' ;ti t�L � t fce4s ^d some associated
orestland on the a,,mculturatty zoned acreage hJ an agricultural e onsetrauon easement, and
HFft As' tlhis hnh.r U.x a,tn n c it as.a e !. reut,it. 10kat::::nip in perpetu't1. to intrude
annual monitoring. naaintenanco_ and managers ens. AND
t]'i,�f_1S. .�c�'erso l�un; lr o sbe:eu ti�onn�su cc �+^i iti l7ltinclshipvt +hJefn -son
` t Low- Cn, °re;aion 1�.tr ct. e_ , t n O rnnu!t o ,11 read %L tdh c,
t uc
Ohm}-ac Saln . � :food ("1I C.00rdmating com cil. the Ian tcnarrcn
'� 6.1<allam Tribe and AA Fxtclnmkm to acgntre and resare cntical salmon
.atiaiin� e'i'� t' l n'_ 'ti}r_ "=�Vaila ri
tit...,e.�,. I�p- .11uci,.bu >, pn t..n z_v
yr tn f
suka:'t�
and
\1IIFRF:AS . ptcleswnelraamihsti and icicmM,112%¢�ecrm t �J�ein .cJuck.r_�`t
Ra:er habitat protection he ezna to ide further hcncllns (,r nligrating ahnonids avd
orherspecSes. and
, t
VHERL \i pv i . pare ; Ili the Duck ron
t} troti,ae, uchhabititn *otcuitotheBerntscn'Crn ore ptiac arc
AND
�t } i dal Ati_ letler�� t 1 .rc I it,t ha, heist rr tit me% "Inc" I i =n n t trtn °rship v 0" ieLer,on
' lot c
eemn�unitt ar'�he' � - few �iee �- .{ui a* rC F' It pros re f .
- 4J the Qu -pd rA!..ilif ' om of .rd
and thFt it ;- eormd ;r be
n.0 •aide f.'Inkl " :n kt ilx �.nldnte specie +. =paialls m. - =rant boa',, and to
oxide
a& 'j"! hatters. and
i
I jUMAn. Ji, olol
rom "Khma sellers nould pro, ido who Ed H I and "whnd pmeakm and A I HAk AV W
illiportaill ororrlunn "set tcIij re'lune 'le',rudsh:r. ir, too MJI-Ido n:11111al -, I 1
natin"ellanc ,c. and ln'aatoeruen.. P'elledroo :impel- ',,ido-
XVjjFRE k& JON&Wn I 2m] I rUM nm, been " OThny SHWO 54 in DMOYMP %% At V - 11"Co
'S% atolsl� 'I I �!! ;e,.. _ i --: "h d' riparian. estuarine and
rear'ho' ustersnec. ama
and
R I IERF,%s. , zonscr, atin oncrInn, on to 8nnuc I wKy, Forrm MmLy "M PhOWO M
perpc.uit� cur ttcal filmstCd habitat WIM 'Uhd ,'ol: !CN „" 'Ili d kill
conservation of an ad In A 1N) acre s o; at accri To a And. .AND
"IHIRIZAN. Nosh"em is awMal Inshrmn; has requested II-an Jefleroon Land Trust 'pons"! thew
(on "noot On F mum% Mina a"licamn no an mqWqd on of a cor v ca,vrnera [., he
he!,! lh•' .Ii�c ' s!�
B! F1 ITREBY RESOM D that :efh7sun Land I runt marced az :0 Februur% 19 TO Wnrl of
jyNom,; ntectmg to sponsor an application 5, 1 , n so nim 101', 1 .:r. 'T C-' .: P(I : r , ' 1 7 :! L of - i! I , : 1
a e L) It, e I\ ali o I I easement um I h am, a -1 . in id ta-eed Sho- an Fenn
proneelion is the 11;0o:- Pi I f ol .C'!' 1 Mates 1 undino" joa to Ando"� ]let need.
t'lojJect dulomori and aorlicultural conscrNation and economic i ]ae ne,\t Inghest �raerm is
luialine, P:-Into DuLah'tsh proicct because it "'�aaw :-C, hic a \ ita: 1' If c
lyckahu,no inUct arev one rmrocl Is current h Fmcd for <ac" srd acollabolan c
sffol I v. 111 -1 Q pi clson ("Unt, Inc .0- C hum norium rarroc, — r,irvz,.zmus as lhcut oork to
price ,eri c hd �t glnfn:ujla :to , I - d tar. , n.ovw K Amcbru her aw wym >Kin
of the Quirnper \Vi It ith bwribw. "I -he AMM highem pro no is fam0n; the v Q too Pores;
PW,n) W 'Upp'"! OU; r 1"i paonu Nunh"ew Wwrshcd lm,liuLo i:-, pmro:r� m., crinc.il
"vwwwd and iWarhni h L imt in the 1,n )o,) ( tek aicet
Sieved hni. 19th da, of I cr), -anr - -'fl I
Pr�Rlrr� [I'vird W IoA�Cklrs
�e, , , r., 1n ;':red ,rust ;5q, 2 'q '
J
STATE OF WASHINGTON
Comity of Jefferson
Dedication of Conservation Futures Funds to the }
Short Family Farm project as Authorized by and } 30 -13
in Accordance with Jefferson County Code } RESOLUTION NO.
Section 3.08.030(7) to Provide a System of Public }
Open Spaces }
WHERF-4S, 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 2013 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 protection of up to
256 acres of farmland in Sec. 23 T. 29N, R. 1 W with Assessor's Parcel Numbers 901233002,
901233005, 901233008, 901233010, 901233011, 901224001, 901262002, 901262003 through the
purchase of a conservation easement; and
WfIERE.4S, the County retains enough developable land to accommodate the Short
Family Farm 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 RESOL VED that:
Jefferson County hereby dedicates up to $43,500 in conservation futures funds in the
2013 funding cycle for acquisition expenses contingent on a matching contribution of
ninety -five percent (95 %) of the total project cost.
Resolution No. 30 -1.3 re: Dedication of Conservation Futures Funds to the Short Family Farm project
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.
APPROVEDANDADOPTED
'v'v'ashingto�L y
SEAL.r
AI- FEST:, .
Cg {�
Carolyn Avery
Deputy Clerk of the Board
i
this ay of 2013 in Port Townsend,
JEFFERSON COUNTY
BO F COMMISSIONERS
J6 Austjn, Chair
Phil Johnsnrt. embcr