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Home My WebLink About101617_ra02("uTtek vvq -�j . J STATE OF WASHINGTON County of Jefferson Supplementing Resolution No. 29-14 and } No. 05-15 to Substitute Assessor's Parcel Number } 802021005 for Assessor's Parcel Number } RESOLUTION NO. 4 4-1 802111001 in the Snow Creek Watershed } Acquisitions Conservation Futures Project } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, the Jefferson Land Trust, as project sponsor of the Snow Creek Watershed Acquisitions Project, was awarded funding towards the fee simple acquisition of up to 15 parcels of forested land in Sec. 2 T. 28N, R. 2W with Assessor's Parcel Numbers 802024001, 995400040, 995400035, 995400025, 995400049, 995400058, 995400057, 995400059, 995400028, 995400037, 995400042, 995400054, 995400056, 995400113, and 995400114 and to protect one additional parcel of largely vacant land in Sec. 11 T. 28N, R. 2W with Assessor's Parcel Number 802111001 by purchasing a conservation easement; and WHEREAS, property interests in Assessor's Parcel Number 802111001 are no longer available to purchase and Assessor's Parcel Number 802021005 is of similar location, size and habitat characteristics and no additional conservation futures funds are needed; and WHEREAS, the County retains enough developable land to accommodate the parcel substitution in the Snow Creek Watershed Acquisitions project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project; and WHEREAS, on July 7, 2014, the Board of Commissioners approved the use of up to $10,824 for this project in Resolution No. 29-14; and WHEREAS, on January 12, 2015, the Board of Commissioners approved the use additional $73,000 for this project in Resolution No. 05-15; and Resolution No. _ e: Supplementing Resolution No. 29-14 and No. 05-15 to Substitute Parcel 802021005 for 8 11 01 in the Snow Creek Watershed Acquisitions Project NOW, THEREFORE BE IT RESOLVED that: 1. Jefferson County hereby approves of the substitution of Assessor's Parcel Number 802021005 in place of Assessor's Parcel Number 802111001. 2. This approval 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 Resolution No. 05-15. APPRO`VkD AN ,�4DOPTED this I` day of OC�Dber , 2017 in Port Townsend, Washington. s JEFFERSON COUNTY BOARD OF COMMISSIONERS • 1 '4 _ V, Kat len r, Chair =. Kate D , Member Carolyn allaway, CMC Deputy Clerk of the Board David Sullivan, Mem 2014 Conservation Futures Application and Score Sheet SON ``0 2014 Jefferson County Conservation Futures Program Property Acquisition and/or ssr,� Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer "'NIA" for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as deeded to answer each question. Contact program staff at 379-4498 or tpokorny@co.lefferson. wa. us with questions. Background and Eligibility Information 1. Project Title: Snow Creek Watershed Acquisitions — Irvin and Jenks 2a. Conservation Futures Acquisition Request: $90,824 b. Conservation Futures O&M Request: none at this time 3. Total Conservation Futures Request: $90,824 4. Please indicate the type of interest contemplated in the acquisition process. X Warranty Deed X Easement _ Other (Please describe below.) In whose name will the property title be held after acquisition? Jefferson Land Trust will hold title to the Irvin property with a Deed of Right to the State Recreation and Conservation Office, and the Jenks property will continue to be privately held with a conservation easement in place. 5. Applicant Information Name of Applicant or Organization: Jefferson Land Trust Contact: Sarah Spaeth Title: Executive Director Address: Executive Director Phone: (360) 379-9501, ext. 101 Fax: (360)379-9897 Email: (360) 379-9501, ext. 101 Fax: (360)379-9897 6. Sponsor Information: (if different than applicant) Same 20, 4 a OnrervaziOn Factures App=icction and Score Sheet This application was approved by the sponsor's legally responsible body (e.g., board, council; etc. i on February 18, 2014. 7. Site Location Street Address or Description of Location: Snow Creek Ranch, west of Hwy. 101, NW of Crocker Lake, S of Hwy. 104 intersection Driving Directions from Port Townsend: Head south on Highway 20. Turn south (left) onto Highway 101 at Discovery Bay. South of the 104 intersection, turn west (right) into the Snow Creek homes development. Section: Township: _ Range: Irvin — S2 T28N R2W Jenks S11 T28N R2W Assessor's Parcel Numbers): Irvin Property - # 802 024 001; 995 400 040, 035, 025, 049, 058, 057, 059, 028, 037, 042, 054, 056, 113, 114 (15 parcels) Jenks Property - 802 111 001 8. EXISTING CONDITIONS New Site: Yes X No Number of Parcels: 2 properties —16 tax ,parcels Addition to Existing Site: Yes No Acres to Be Acquired: 104 Total Project Acreage (if different): 400 + in project area Current Zoning: Rural Residential 1.5 Existing Structures/Facilities Jenks — small vacation cabin Any current covenants, easements or restrictions on land use: none that we are aware of Current Use: Irvin property — vacant land Jenks property — one small vacation cabin, otherwise vacant Waterfront (name of body of water): Snow Creek Riparian Shoreline (linear feet): 3750' of main stem Snow Creek in -stream riparian and upland habitat. Owner TidelandslShorelands: 9. Current Property Owner X is _is not a willing seller. 2 2014 Conservation Futures Application and Score Sheer Project Description 10. In 1000 words or less, provide a summary description of the project, the match, overarching goal, and three top objectives. Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including: vegetation, topography, surrounding land use, and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition (including passive development), characteristics of the site which demonstrate that it is well-suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site relates to the larger project, and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g, grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Jefferson Land Trust and Chumsortium partners (includes Washington Department of Fish and Wildlife North Olympic Salmon Coalition, Jefferson County Conservation District, Hood Canal Salmon Enhancement Group, Hood Canal Coordinating Council, Jefferson County, WSU) have been working for years to preserve and restore important habitat in the Salmon and Snow Creek watersheds located south of Discovery Bay. As of early 2014, nearly 400 acres of Discovery Bay Estuary habitat, Salmon and Snow Creek habitat and farmland of the Discovery Bay valley are permanently preserved and major restoration activities have been accomplished. Chumsortium project partners identified the Irvin and Jenks properties, located just northwest of Crocker Lake as important for permanent protection and restoration efforts for migrating salmon species, water quality and other wildlife habitat in this larger watershed project area. Numerous salmon species utilize the habitat of Snow Creek that flows from the foothills down through the Jenks property, then onto the Irvin property on its way north to Discovery Bay. The Irvin property includes the upper end of the historic endangered Summer Chum distribution. The Snow Creek riparian corridor connects marine waters and estuary with upland forests, an important connection now and in the future as climate changes and species move. The Jenks property is directly adjacent and downstream from Department of Natural Resources forestland in the foothills of the Olympics, and is characterized as a gently -sloping valley —200' deep along about 114 mile of Snow Creek with mixed second -growth forest including spruce, maple, alder, western red cedar, Douglas fir and other native species. There are open grassy areas at the northern end of the Jenks property, with a mixture of native and non-native grasses and shrubs, and going upstream the gradient increases. There is a relatively small open area where a vacation cabin is located. The majority of the adjacent downstream Irvin property is relatively level floodplain made up of grassland and alder, with patches of blackberry, equisetum, rush, sedge, etc., and the area close to Snow Creek is primarily big leaf maple and native understory with occasional Douglas fir, western red cedar, alder, and Himalayan blackberry. The upland slopes are fairly mature mixed -species second - growth forest. Both properties include tributaries to Snow Creek, some of which are seasonal. The Irvin property includes 15 platted lots and is currently undeveloped. The landowner has been eager to sell the property for several years and has listed it on and off. The Jenks property is listed for %0t Conservation Futures Application and Score Sheet sale, and the landowner is willing to sell 4 of the 5 development rights on her property that are possible under current zoning. This residential development could significantly degrade existing habitat for salmon. Jefferson Land Trust proposes acquisition of the majority of the Irvin property for permanent protection of the floodplain and riparian habitat from development, and some replanting of the riparian buffer of Snow Creek. Purchase of a conservation easement on the Jenks parcels would reduce the development potential from five currently allowed building rights to one on this property. This would reduce the threat of habitat degradation and water quality impacts from development. These acquisitions would result in 102 acres of preserved property and reduce overall development from 20 potential home -sites to one. A habitat assessment conducted by the Hood Canal Coordinating Council biologist has indicated that both properties would benefit from understory planting of conifer species to provide year-round shade and better long run woody debris for creating pools and stream complexity. The project fits well with the Hood Canal Coordinating Council Strategy for Salmon Recovery. Critical habitat acquisition is number one on their sequenced project lists for both Salmon and Snow Creek watersheds. Jefferson Land Trust submitted a grant application in 2013 to the State Salmon Recovery Funding Board (SRFB) for funding for these Snow Creek acquisitions. The project ranked high enough for funding, though we are still waiting on final grant approval and should know by mid-March if the project has been awarded funding. If it does not receive funding in this grant cycle, Jefferson Land Trust requests that this application be retracted. The three top objectives for this project are: 1) Secure SRFB grant funds for the project. 2) Acquire high priority threatened properties from the willing sellers. 3) Permanently protect and restore the properties as part of the Snow Creek project area. 11. Estimate costs below, including the estimated or appraised value of the properties) or property right(s) to be acquired, even if Conservation Futures funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. a. Estimated or Appraised Value of Propert(iies) to be Acquired: $504,000 Irvin - $354,000 Jenks Conservation Easement - $150,000 b. Total Estimated Acquisition -related Cost (see Conservation Futures Manualfor eligible costs): $80,650 c. Total Operation and Maintenance Cost: Not included d. Total Project Cost: $5$0,654 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition -related costs, general description of operation and 4 2014 Conservation Futures Applicalion and Score Sheet maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work]: The land estimate for the fee simple acquisition of the Irvin property is based on the asking price minus the estimated value of several non -riparian lots that are not being proposed for acquisition. Land acquisition costs for the conservation easement were estimated based on past experience with project development. Full appraisals and appraisal reviews will be conducted according to SRFB grant requirements prior to finalizing negotiations and acquisitions. Anticipated project related costs include; appraisal and appraisal reviews, title insurance and closing costs, survey, baseline documents, taxes and recording fees, project management, legal costs. In addition to the Land Trust's usual monitoring, we will be conducting restoration with project partners, though the restoration costs are not included in this grant application and will be funded through the SRFB grant. See attached Project Cost Table Scored Questions In. Sponsor or other organizations X will will not contribute to acquisition of proposed site and/or operation and maintenance activities. b. If applicable, please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. As the sponsor organization, Jefferson Land Trust will be coordinating the contribution of the match, the majority of which will come from the State Salmon Recovery Funding Board grant. Additional match will come from land donation value and possible cash contributions. The Land Trust will assume the restoration responsibilities with our Chums partners and will conduct long term monitoring and maintenance. At this time we are not requesting CFF a & M funding, though may in the future. c. Matching Fund Estimate Acquisition O&M % Conservation Futures Funds Requested Matching Funds/Resources* Total Project Acquisition Cost $90,824 $489,826 $580,650 16% 84% 100% * If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. d. Source of matching Amount of funds/resources contribution SRFB 1370,854 Land Donation $90,922 Cash Contributions Contribution approved? Yes No Yes $28,050 Yes No No If not, Contribution when? available now? 3/1912014 Yes No summer 2014 Yes No summer 2414 Yes No If not, when? 05/2014 closing closing 5 2014 Conservation Futures Applicc-tion and Scare Shed NOTE: Matching funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation ofproperty or a property right will be considered as a matching resource. Donation of resources for on-going maintenance or stewardship ("in-kind " contributions) are not eligible as a match. 2 a. Sponsoring agency X is `is not prepared to provide long-term stewardship (maintenance, up -keep, etc.) for the proposed project site. Jefferson Land Trust will conduct stewardship, monitoring and maintenance of the property along with the other parcels in the Salmon and Snow Creek watersheds that we own or are protected with conservation easements. Jefferson Land Trust's stewardship program includes monitoring (at least annually) of protected properties and easements, upkeep and maintenance (trash removal, signage, invasive plant control) and restoration efforts (tree planting, trail building, etc.). Staff and trained community volunteers will conduct monitoring, and maintenance efforts. Jefferson Land Trust relies on trained professionals, including habitat biologists, foresters and others as appropriate. b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. Jefferson Land Trust will be working with Chumsortium partners for small-scale enhancement including understory conifer planting on the Irvin and Jenks properties, The proposal includes replanting of the riparian area on the both properties with spruce and cedar to ultimately provide year round shade and large woody debris for Snow Creek. Planting efforts will be conducted by Jefferson Land Trust and possibly Washington Conservation Crew with the oversight of Chumsortium restoration partners. The replanting effort will be funded through the State Salmon Recovery Funding Board grant, 3 a. Describe the sponsoring agency's previous or on-going stewardship experience. Jefferson Land Trust continues to implement a rigorous stewardship program for the roughly 12,300 acres it currently stewards in Jefferson County. These stewardship obligations include properties protected with 54 conservation easements, Jefferson Land Trust preserves and land owned by partner organizations and agencies such as Washington State Parks, Jefferson County, the City, Washington Department of Natural Resources and the Hoh River Trust. The Land Trust is the only local organization or agency that has a monitoring and stewardship program for conservation easements and preserved properties, developed with the guidance of The Land Trust Alliance and utilized effectively for 25 years. b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: Jefferson Land Trust has been the sponsor organization on numerous applications that have received Conservation Futures funds, and has also been the applicant on a number of applications as well, These projects include: Sunfield Farm, 2003; Quimper Wildlife Corridor, 2004; East Tarboo Creek 6 2014 Conservation Futures Application and Scare Sheet Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007; Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Ruck 2010, Quim per Wildlife Corridor 2010; Tamanowas Rock 2010; Chimacum Creek Carleson 2011; Winona Basin - Bloedel 2011; L. Brown 2012, Boulton Farm 2012, Short Family Farm and Winona Basin -Bloedel Phase 11 2013. Jefferson Land Trust involvement was only made possible by the landowners interested in preserving the conservation values of their properties, either through outright sale, sale of conservation easements and donation of either as match. Community support and other public funding sources as match have also been a demonstration of the value of the approved projects. 4 a. Property ,can X cannot feasibly be acquired in a timely fashion with available resources. b. Necessary commitments and agreements _are X are not in place. c. All parties _are X are not in agreement on the cost of acquisition. If "not" to any of the above, please explain below. Jefferson Land Trust submitted an application to the State Salmon Recovery Funding Board (SRFB) for funding acquisition of the Irvin property and for purchase of an easement on the Jenks property. The project ranked high enough at the state level for funding in 2013, however funding allocations have been held up due to a reprioritization process currently underway with our local lead entity the Hood Canal Coordinating Council. We expect to know if SRFB funding will be released sometime later this spring. Once we have secured the SRFB funding we will initiate the appraisals necessary to determine the fair market value of the acquisitions. If we do not receive the SRFB funding for this project, Jefferson Land Trust requests that this application be removed from consideration in the 2014 CFF grant cycle. 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 sites importance to the plan. Please reference the website of the plan if available or include the plan with this application. —complements an adopted open space or conservation plan, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project. The Irvin/Jenks properties are located in the Salmon and Snow Creek project area. This area has been the focus of protection and restoration efforts on the part of Chumsortium partners since 2000 and is identified in the Summer Salmon Chum Recovery Plan which can be located at the following website. http://www. nwr. noaa.gov/Salmon-Recovery-Planning/Recovery-Domains/Puget-Sound/HC-Recovery- Plan.cfm The Hood Canal Coordinating Council 2013 3 -year work plan has stated that "Working with volunteer landowners, [to] develop high priority land acquisitions that either protect high quality habitats at risk of conversion or impacted habitats which require restoration that is incompatible with current land uses or landowner desires" as a current action item. In addition, the Snow Creek watershed is identified on the Jefferson County's Comprehensive Plan map as Parks, Recreation Areas, Conservation Easements and Areas for Future Cooperative Preservation Efforts: http://wwvv.co.mefferson.wa.us/idms/Rdfs/parks99.pd . 7 2014 Conservation Futures AppliCution and Score Sheet In JLTs county Conservation Plan, this area has four priority habitat indicator layers (the maximum). The plan is located on the JLT website www. save land,org. The Nature Conservancy's Ecoregional Assessment categorizes this as both an aquatic and terrestrial Ecoregional Portfolio site (defined as areas of exceptional biological value and most likely for conservation to succeed). A copy of the plan can be downloaded from http://east.tnc.org/assessment/2/. 6. Conservation Opportunity or Threat: a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. b. If applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. Both the Irvin and Jenks properties are currently for sale and have been listed on and off for 4 years, Both are zoned for Rural Residential development at one residence per 5 acres, and portions of the Irvin property were platted much more densely prior to adoption of zoning by Jefferson County. The result is that the properties technically support future development of 20 home -sites most with ready access and PUD water availability. Some sites overlook Crocker Lake and all are located directly adjacent to Highway 101, a Washington State Scenic Byway, making the worksite an attractive development site. It is rare to find adjacent properties for sale that have as much valuable riparian habitat for multiple salmon species. 7. The proposed acquisition: X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. X provides habitat for a variety of native flora or fauna species. X contributes to an existing or future wildlife corridor or migration route. If a,firmative in any of the above, please describe belotiv, and cite or provide documentation of species' use.' The project area provides important for several salmonid species in various life stages, as indicated in the table below. All the salmonid species present are listed on the Washington Department of Fish and Wildlife Priority Habitat and Species list -l�ttp: !«ww�.edfti�, 4;`a.govfcnnservatio�y�hs/list/. Both coho and endangered steelhead spawn in this stretch of Snow Creek, spotted owls have been recorded in the area, and bear, deer, elk, bobcat, coyote, cougar, trumpeter swans, and bald eagles are known to be here. Species Life History Current ESA Coverage Life History Present {egg, Population (YIN) Target (egg, 'uvenile, adult) Trend decline, juvenile, adu ' See, for example, http://www.dnr.wa.pov/researchscience/topics/naturalheritagelpageslamp_nh.asux http://www.wdAv.wa.gov/conservatioti/phs/list/ http://wwwl.daLwa.gov/nhp/refdesk/plants.htm[ htt:l/wwwl.dnr.wa. ov/nli/refdesk/ ubs/wa ecological s stems. df 2014 Conservation Futures Application and Score Sheet S a. Describe the extent and nature of current and planned agricultural use of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. Not applicable b. Describe any participation by the current property owner in any other agricultural land conservation programs, including the program and nature of the involvement. Not applicable 9. Describe how the proposed acquisition benefits primarily a `local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The Snow Creek watershed, and Discovery Bay at its mouth, has regional significance, providing habitat, clean water, and outstanding scenery. As an element of the Hood Canal -Strait of Juan de Fuca salmon recovery effort, the Snow/Salmon Watershed Fish and Wildlife Management Plan was developed by the Snow/Salmon Technical Advisory Group (1NDFW, DNR, JCCD, NOSC, JLT, HCCC, TU, Jefferson County, WSU, JSKT, PGSKT, Point No Point Treaty Council, several trails group, and the Governor's Puget Sound Action Team). This group's vision is "A thriving ecosystem consisting of old-growth forest and riverine system with functioning floodplain, channel migration zones, and riparian processes that provide habitat for self-sustaining populations of native plants and animals. This area will coexist with human use of the watershed, characterized by thriving agricultural lands, managed forests, and residential communities taking an active interest in providing stewardship of the ecosystem." 14. 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 Jenks property will remain in private ownership, and there is potential for education and interpretive displays on the Irvin property that is close to Hwy. 10 1, but access will need to be negotiated with the Snow Creek Homeowners Association as they own the access route. 11. The proposed acquisition ^ includes historic or culturally significant resources3 and is registered with the National Register of Historic Places, or an equivalent program. ` The words "education" and "interpretation" are interpreted broadly by the CF Committee. 3 Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. N stable, rising)__ Summer Chum Egg, Adult Rising Y Egg, Adult Coho Egg, Juvenile, Adult Stable N Egg, Juvenile, Adult Steelhead Juvenile, Adult IDecline Y Juvenile, Adult Cutthroat trout Egg, Juvenile, Adult unknown I N Egg, Juvenile, Adult S a. Describe the extent and nature of current and planned agricultural use of the proposed acquisition, including any anticipated changes to that use once the property, or property right, is acquired with Conservation Futures funds. Not applicable b. Describe any participation by the current property owner in any other agricultural land conservation programs, including the program and nature of the involvement. Not applicable 9. Describe how the proposed acquisition benefits primarily a `local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The Snow Creek watershed, and Discovery Bay at its mouth, has regional significance, providing habitat, clean water, and outstanding scenery. As an element of the Hood Canal -Strait of Juan de Fuca salmon recovery effort, the Snow/Salmon Watershed Fish and Wildlife Management Plan was developed by the Snow/Salmon Technical Advisory Group (1NDFW, DNR, JCCD, NOSC, JLT, HCCC, TU, Jefferson County, WSU, JSKT, PGSKT, Point No Point Treaty Council, several trails group, and the Governor's Puget Sound Action Team). This group's vision is "A thriving ecosystem consisting of old-growth forest and riverine system with functioning floodplain, channel migration zones, and riparian processes that provide habitat for self-sustaining populations of native plants and animals. This area will coexist with human use of the watershed, characterized by thriving agricultural lands, managed forests, and residential communities taking an active interest in providing stewardship of the ecosystem." 14. 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 Jenks property will remain in private ownership, and there is potential for education and interpretive displays on the Irvin property that is close to Hwy. 10 1, but access will need to be negotiated with the Snow Creek Homeowners Association as they own the access route. 11. The proposed acquisition ^ includes historic or culturally significant resources3 and is registered with the National Register of Historic Places, or an equivalent program. ` The words "education" and "interpretation" are interpreted broadly by the CF Committee. 3 Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW. N 2014 Consenation Futures Application and Score Sheet is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical or cultural resources. None known 12a. Describe the extent and nature of current and planned silvicultural use of the proposed acquisition. Please cite or provide documentation of existing or planned silvicultural activities including forest management plan(s) or forest ecosystem restoration. As mentioned earlier, replanting of the riparian area on the both properties with spruce and cedar will take place to ultimately provide year round shade and large woody debris for Snow Creek. Once a healthy riparian forest exists that includes confers, no additional management is planned. b. Describe any participation by current property owner in silviculture conservation programs, including the program and nature of the involvement. Not applicable Verification 13. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project "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. DS Initials3 °3 1 c s Date 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 Initials -31312L) Ii Date 10 Snow Creek Watershed 2014 Conservation Futures Program Acquisition Application ted Project related costs - Irvin Timeline Est. Cost quired — Irvin rto all 2014 $350,000 ppraisal reviews, surveys, Cultural Resources Assessments, Phase I assessments my 2414 21,550 Baseline and Stewardship Plans Fall $4,000 Title insurance and closing costs, taxes, etc Fall 2014 $3,000 Project Management, Admin and legal fees Fall 2014 $18,950 Total Irvin Project costs $397,500 otal Estimated Project related costs - Jenks Timeline Est. Cost Land to be acquired -� Irvin Fall 2014 $150,000 Appraisals, Appraisal reviews, surveys, Cultural Resources Assessments, Phase I assessments July 2014 $18,000 aseline and Stewardship Plans Fall $4,000 itle insurance and closing costs, taxes, etc Fall 2014 $2,004 Project Management, Admin and legal fees Fall 2014 8,700 Total Jenks Project costs $182,700 rand Total Project Costs $580.650 Acknowledaement Form Landowner Information Name of Lanaawneor Landowner Contact Information: FIs. Date Jenks -.ontact Mailing Address: P_oa Box 305 Port Townsend, Wa. 98368 Contact E -Mail Address: Property Address or Location: 67 Foothill Dr. Quilcene Wa, i.l am the legal owner of property described in this grant application_ c.# am aware that the project is being proposed on my property. 3 -If the grant is successfully awarded, I will be contacted and asked to engage in negotiation:. 4,My signature does not represent authorization of project implementation. Landowner Signature ?roject Soorlsor information Project Marne: Snow Creek Watershed Acquisition and Restoration Project Applicant Contact Information: Jefferson Land Trust Executive Director Ms. Sarah Spaeth Mailing Address: 1033 Lawrence St. Port Townsend, Wa. 9836E E -Mail Address: ed@saveland.org Date Salmon Recovery Grarns Manual 18 . January 2013 Landowner Acknowledgement Form Landowner Information Name of Landowner: Mr. Philip C. Irvin Landowner Contact Information: Contact Mal ling Address: 9033 30th Ave. SW Seattle Wa. 98126 Contact E -Mail Address; philip,c.irvirl@gmail.tom PrQpertyAddress or Location; Snow Creek stanch Quiicene Wa. 1.1 am the legal owner of property described in this grant application, 2.1 am aware that the project is being proposed on my property. 3.1f the grant is successfully awarded, I will be contacted and asked to engage in negotiations - 4 -My signature does not represent authorization of project implementation. Landowner Sianatu Date Project Sponsor Information Project Name: Snow Creek Watershed Acquisition and Restoration Project Applicant Contact information: Jefferson Land Trust Executive Director Ms. Sarah Spaeth Mailing Address: 1033 Lawrence St. Port Townsend, Wa. 98368 E -Mail Address: ed@saveland.org Salmon Recovery Crants Manual 18 . January 2013 Greek 0'a Sal 101 ,�" Port Maynar Discovery ' JnCas 5 now Creek Peterson Lake Crocker Lake Proposed Protections Snow/Salmon Watershed 2014 Conservation Futures Application Approximately 104 acres Tarboo Lake 0 2.500 5.000 10.000 Feet For informational purposes only. All data represented are from varying sources and approximate. Map created in February, 2014 N Jenks Property Irvin Property Protection in I Progress f. JILT Protected National Forest; Federal - Other State Conservation Other State; Marinas a: County/Mun... Parks Other County/Mun... Land Tarboo Lake 0 2.500 5.000 10.000 Feet For informational purposes only. All data represented are from varying sources and approximate. Map created in February, 2014 N Irvin Proposed Acquisition approximately 74 acres 0 312.5 625 1,250 Feet 2011 Aerial Image (NAIP) For informational purposes only. All data represented are from varying sources and approximate. Map created in April, 2013 Jenks Proposed Conservation Easement approximately 28 acres I 1Jenks Property V ZOU wu I,VVU Feet 2011 Aerial Image (NAIP) For informational purposes only. All data represented are from varying sources and approximate. 2A Map created in February, 2014 N ►�t�+►�t�t�f+�t�' ��tt�tet�t�t�jtPublicly jStreamsCounty protected land Parcels Jenks Proposed Conservation Easement approximately 28 acres I 1Jenks Property V ZOU wu I,VVU Feet 2011 Aerial Image (NAIP) For informational purposes only. All data represented are from varying sources and approximate. 2A Map created in February, 2014 N SNOW CREEK PROJECT CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2014 Snow Creek Irvin pasture and riparian buffer y AO •5 .rr" 7"�': _.• .�' ?' �, r wig.:,, � - ��. ..i.P Y.fIr all w �r. f -' i.x„l No i it w • �� ` � - 4 -* qyp,, _ INTERNAL REVENUE SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE MONTEREY PARK, CA 91755-7406 Date. MAY 0 3 1994 JEFFERSON LAND TRUST C/O DOUG MASON PRES PO BOX 1610 PORT TOWNSEND, WA 98368-0109 Dear Applicant. DEPARTMENT OF THE TREASURY Employer Identification Number. 91-1465078 Case Number: 954109042 Contact Person: TYRONE THOMAS Contact Telephone Number: (213) 894-2289 Our Letter Dated: May 08, 1990 Addendum Applies: NO This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(-)(3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a)(1) and 170(b)(1)(A)(vi). Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a)(1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a)(1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely -yours, T .� Richard R. Orosco District Director Letter 1050 (Do/CG) Internal Revenue Service District Director P B BOX 2350 ROOM 5127 ATTN: E.G. LOS ANGELES, CA 900532350 mate% MAY 8, 1990 JEFFERSON -COUNTY LAND TRUST 1322 WASHINGTON PO BOX 1610 PORT, TOWNSENT, WA 98368 Dear Applicant: Department of the Treasury Employer Identif'icat•ion Number, 91--1465078 Case Number: 950114110 Contact Person: JOSEPH CUNHA Contact Telephone Number (213) 69+4•-4110 Accounting Period Eiiding: December :31 Foundation Status Classification: see attached Advance Ruling Period Begins: April 7, 1990 Advance Ru I i rig Per i od I„nds Dec. 31, 1993 Addendum App I i e::s : none Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, ne have daterinirued you are exempt from Federal income tax under section 501(a) of the Internal Revenue Coda as an organization described in section 501(c)(3). Because you are a newly created organization, wo are riot now making a final determination of your foundation stators under :section 509(a) OF the Code). However, we have determined that you can reasonably be expected to be a public- ly supported organization describ©d in sections 509 (a) (1) and 37'0 (b) (1) (A) (v i) . Accordingly, you will be treated as a publicly supported organization, and not as a private foundation, during aro advance ruling period. This advance ruling period begins and ends on the dates shown above. Within 90 dabs of Ler the end of your advance ruling period, you must' submit to us information needed to determine whether you l►a vc met this require.. vents of the applicable support test during the advance railing period. If yolr establish that you have been a publicly supported organization, you will be classified as a section 509 (a) (1) or 549 (aa) (2) organization as long as you con- tinue to most the requirements of the applinabsia support test. If you do not meet the public support requirements during the advance rciEing period, you will be classified as a private foundation for future periods. Also, if you are classified as a private foundation, you will be treated as a private foundation from the date of your i ncopti on for purposes of sections 507(d) and 4940. Grantors and contributors may rely on the determination that you are riot a private f or_inda t i on until $0 days after tho and of your advance ruling period. If you submit the required information wiLhin the 90 slays, grantors and contri- butors may continue to rely on the advance determination until they Service l.ettor 1045(CG) _2_ JEFFERSON . CGUNT3? LAND TRUST makes a final determination of your foundation status. If notice that you will no longer be treated as a publicly supported or- ganization r- ganization is published in the Internal Re3veanue tau ! i e L i n, grantors and con- tributors on- tributors may not. rely on this determination after til: date of such publica- tion. ubIica- tion. In addition, if you lose your status as a publicly supported organiza- tion and a grantor or contributor was responsible for, or was tlr,are of, the act or failure to act, that resulted in your loss of such' sta Ltis, that person may not rely on this determination from the date of the act or failures to act. Also, if a grantor or contributor learned that: the Service had given notice that you would be removed from classification as a publicly supported organiza- tion, rganira- tion, thea that person may not reit on this determiraalion As of the date such knowledge was acquired. Lf your sources of support, or your purposes, character, or method of operation chango, please let us know so He can cons i dor the effect of the change on your exempt status and foundation status. In tine case of an a.inend- ment to. yoe.ir organ i xat i ona I document or bylaws, p l ass o send us a copy of the amended.document or bylaws. Also, you should inform us of all changes in your name or. address. As of January 1, 1984, you are i i ab l ea for taxes under the Federal Insur- ance Contribution. Act (social security taxes) on remuneration of $t00 or more you pay to each of your employees sluring .a calendar year. You are not liable -for the tax imposed under the Federal Unemployment Tax Act (FUTA). organizations that are not private foundations are not subject to the pri- vate Foundation excise taxes under Chapter 42 of the Code. Homover, you are not automatically exempt from other Federal excise tares. If you have any quest i onss about exc is o, employment, or other V eadora l Laxes, please let us know. (Donors may deduct contributions to you as provided in section t'l'0 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your uses are deductible for Federal estate and gift tax porpocsr s if they meet the appli- cable -provisions ppIi- cable-provisions of sections 2055) 2106, and 2527 of Lhe Codo. Contribution deductions are allowable to donors only to the ex tont: Lhat their contributions arca gifts, with no consideration received. Ticket pur~- chases and similar payments in conjunction "i th fundraising events may not necessarily qualify as deductible contributions, de pand i ng oro tine circum- stances. irc:um-•stances. See Revenue Ruling 67-246, published in Cumulative Bulletin 1967~2, on page 104, win i cin sets forth gu i de I i nes; regarding the deductibility, as chari- table hari- table contributions, of payments reads by taxpayers For admission to or other parti-cipation in fundraising activities for charity. You are required to file Form 990, Return of Organization Exempt from Income Tax, only if your gross receipts each year are normally more than Q25,0DO. however, if you receive a. form 990 package in the mail, please file the return even if you do not eaxceod the grows race ipts test. If you art) not - better 104b(CG) -3- JEFFERSONVCOUNTY LAND TRUST required to file, simply attach the label provided, check the box in the head- ing to indicate that your annual gross receipts are normally $25,000 or less, and sign the return. If a return is required, it must be filed by the 15th day of the fifth month after the and of your annual accounting period. A penalty of $10 a day is charged schen a return is filed late, unless there is reasonable cause for the delay. However, the maximum penalty charged cannot exceed $5,000 or 5 por- cant of your gross receipts for the year, whichever is less. This penalty may also be charged iF a return is not complete, so ploaso 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 511 of the Code:. If you are subject to this tax, you must file an income tax return can Form 994-T, Exempt Organization Business Income Tax Return. In this latter i,in are not determining whether any of your present or propose=d activities ore unre- lated trade or business as defined in section 513 of the Cadn. You need an employer identification number even if yoei havo no employees. If ars employer identification number was riot ariterod on your application, a number mill be assigned to you and you will be advisod of it. Please use thasL number on all returns you file and in all correspondence Nilth the Internal Revenue Service.- If eryicry.- If we have indicated in the heading of this le.ttor that an addondu€a applies, the addendum e=nclosed is an integral pert of this letter. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your ,permanent records. If you have any questions, please contact the person R -those name and telephone number are shown in the heading of this letter. Enclosure(s): Form 872-C incerely yours, e Michael J. Uuinn District: Director Latter 1045(CG) mc .JEFFERSON COUNTY LAND TRUST FOUNDATION STATUS: 170(b) (1) (A4 (vi) and 509(a) (1) Letter 10 {5 (CGI Department of theTreaswy--Internal Revenue 5eMo OMB No. 1545-006. Form 87 2—C Consent Fixing Period of Limitation Upon Upires3.31.89 Assessment of Tax Under Section 4940' of the To be used with Farm (Re". March 1986) Internal Revenue Code 1023. submit In (see Form 1023 Instructions for Part IV, line 3.) duplicate. Under section 6501(c)(4) of the Internal Revenue Code, and as part of a request filed with Form 1023 that -the organization named below be treated as a publicly supported organization under section 170(bx1)(A)(vi) or section 509(a)(2) during an advance ruling period, JEFFERSON COUNTY LANDTRUST ....................................... . .. ... j ...... ....................... (l and the Dlstric#Director P.O. BOX 1610 PORT TOWNSEND, WA 98358 .... of Internal Revenue .t. .... .....,... (Number, street city or town. state, and ZIP code) Consent and agree that the period for assessing tax (imposed under section 4940 of the Code) for any of the 5 tax years in the advance ruling period will extend 8 years, 4 months, and 15 days beyond the end of the first tax year. However, if a notice of d eficle ncy, in tax for any of these years is sent to the organization before the period expires, then the time for malting an assessment will be"further extended by the number of days the assessment is prohibited, plus 60 days. Ending date of first tax year.... 12 / 311/89 JEFFERSON'COUNTY LAND TRUST or Signature s District Diractor to;fgti Naacy�co �t�Ra �h VT r 2/6/90 MICHAEL J. QUjNN I Date A MAY Q / By ► _,� _ GROUP MANAGER, E0.4 For Paperwork Reduction Act Notice. tee pate 1 of the Farm 1023 instructions. Jefferson land Trust Summary 2014 Budget for JLT Income Unrestricted Capital Funds for Programs and Values of Conservation Easements 2014 Operating Budget $ 87,500 Restricted Capital Funds, Grant Funds from Gov'I and Private Sources $ Endowment Funds $ Operations Income 155,970 3,700 Annual Contributions $ 128,400 Multi -Year Contributions (Pledges) $ 95,000 Special Events (Rainfest and other ticketed events) $ 114,500 Fee for Services $ 117,550 Investment Income $ 6,050 Other $ 25,200 Total Operations Income $ 486,700 Total Income $ 733,870 Expenses Cost of Goods Sold $ 225,986 Administrative Expenses $ 108,510 Payroll Expense $ 397,670 Total Expense $ 732,155 Net Income $ 1,704 ROSTER BOARD MEMBERS MOORE, Steve - President REID, David - VP MACHETTE, Michael - Treasurer LAMKA, Kathryn - Secretary DIEFENDERFER, Heida HULTMAN, Glenda KEISTER, Gary TYLER, Joanne VAN CLEVE, Brie TAFF SPAETH, Sarah - Executive Director BAIER, Ann - Deputy Director CLENDANIEL, Carrie - Conservation Assistant KINGFISHER, Erik - Stewardship Director NEWMAN, Nancy - Conservation Associate ROBERTSON, Caroline - Outreach Director SMITH, Shelby - Development Director WACKER, Kathleen - Finance Assistant JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Financial Statements For the Year Ended December 31, 2012 Table of Contents Independent Auditors' Report Consolidated Financial Statements; Consolidated Statement of Financial Position Consolidated Statement of Activities Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Supplementary Information: Consolidated Schedule of Functional Expenses Page 1-2 3 4 5 6-18 19 Independent Auditors' Report Board of Directors Jefferson Land Trust and Subsidiary Certified Public Port Townsend, Washington Accountants We have audited the accompanying consolidated financial statements of Jefferson Land Trust and and Consultants Subsidiary (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31, 2012, and the related consolidated statements of activities and changes in net assets and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. CLARK NUBER Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of JLT as of December 31, 2012, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United Certified Public States of America. Accountants Report on Summarized Comparative Information and Consultants We have previously audited JLT's 2011 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated April 3, 2012. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2011, is consistent, in all material respects, with the audited financial statements from which it has been derived. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The consolidated schedule of functional expenses is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Gem ?�4� ,� s Certified Public Accountants March 19, 20I3 -2- JEFFERSON LAND TRUST AND SUBSIDIAR Y Consolidated Statement of Financial Position December 31, 2012 (With Comparative Totals for 2011) Temporarily restricted (Note 10) Permanently restricted (Note 11) Total Net Assets Total Liabilities and Net Assets See accompanying notes. -3- 691,453 660,932 35,465 30,996 2,629,153 2,294,012 $ 2,691,396 $ 2,916,551 2612 2011 Assets Cash and equivalents $ 333,764 $ 284,193 Investments (Note 2) 467,802 459,277 Accounts receivable 66,205 51,840 Pledges receivable (Note 3) 515,020 484,224 Note receivable (Note 4) 78,391 81,803 Prepaid expenses 1,479 1,679 Land, conservation easements, and purchase options - Habitat land 930,937 660,437 Working land 25,048 25,048 Open space land 263,832 256,332 Conservation easements 49 47 Land held for sale 600,004 Total land, conservation easements, and purchase options (Note 5) 1,219,866 1,541,864 Furniture and equipment, net of accumulated depreciation of $15,798 (2011 - $12,996) 8,869 11,671 Total Assets $ 2,691,396 $ 2,916,551 Liabilities and Net Assets Accounts payable $ 8,810 $ 8,863 Accrued expenses and deferred revenue 53,433 49,676 Purchase option received 120,000 Long-term debt (Note 6) 444,000 Total Liabilities 62,243 622,539 Net Assets: Unrestricted (Note 9) - Undesignated 682,369 180,220 Board designated 1,219,866 1,421,864 Total unrestricted net assets 1,902,235 1,602,084 Temporarily restricted (Note 10) Permanently restricted (Note 11) Total Net Assets Total Liabilities and Net Assets See accompanying notes. -3- 691,453 660,932 35,465 30,996 2,629,153 2,294,012 $ 2,691,396 $ 2,916,551 JEFFERSON LAND TR UST AND SUBSIDIAR Y Consolidated Statement of Activities For the Year Ended December 31, 2012 (With Comparative Totals for 2011) Expenses: Program 1,281,690 Temporarily Permanently General and administrative 98,117 98,117 Unrestricted Restricted Restricted 2012 Total 2011 Total Revenue and Gains: 1,466,748 1,46$,748 945,465 Change in Net Assets 300,151 Gifts and contributions $ 82,576 $ 295,358 $ 4,469 $ 382,443 $ 347,156 Fair value of easement acquisitions 537,344 $ 691,453 $ 35,465 $ 2,629,153 $ 2,294,012 537,304 239,500 Grants and contracts 763,539 763,539 324,687 Special events income, net of net of expenses of $22,291 (2011 - $34,726) 105,748 105,748 87,260 Net investment return (Note 2) 12,895 12,895 8,118 Rental income 17,685 Release from restriction (Note 10) 264,837 264,837} Total Revenue and Gains 1,766,899 30,521 4,469 1,801,889 1,024,406 Expenses: Program 1,281,690 1,281,690 781,209 General and administrative 98,117 98,117 93,392 Fundraising 86,941 86,941 70,864 Total Expenses 1,466,748 1,46$,748 945,465 Change in Net Assets 300,151 30,521 4,469 335,141 78,941 Net assets, beginning of year 1,602,084 660,932 30,996 2,294:012 2,215,071 Net Assets, End of Year 5 1,902,235 $ 691,453 $ 35,465 $ 2,629,153 $ 2,294,012 See accompanying notes. -4- JEFFERSON LAND TR UST AND SUBSIDIARY Consolidated Statement of Cash Flows For the Year Ended December 31, 2012 (With Comparative Totals for 2011) Cash Flows from Financing Activities: Payments on long-term debt (480,000) (213,024) Net Cash Used by Financing Activities (484,000) (213,024) Net Change in Cash and Cash Equivalents 49,571 (76,139) Cash balance, beginning of year 284,193 360,332 Cash Balance, End of Year $ 333,764 $ 284,193 Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 2,567 $ 18,367 See accompanying notes. -5- 2012 2711 Cash Flows from Operating Activities: Change in net assets $ 335,141 $ 78,941 Adjustments to reconcile change in net assets to net cash provided by operating activities - Depreciation 2,802 2,099 Realized and unrealized (gain) loss on investments (3,828) 5,467 Imputed interest expense 36,000 Write down of land value due to conservation easement 24,999 Donated stocks received (32,735) Donated land received (20,000) Pledge of donated land (15,000) Changes in assets and liabilities: Accounts receivable (14,365) 24,452 Pledges receivable (45,796) 29,804 Prepaid expenses 200 668 Accounts payable (53) (25,864) Accrued expenses and deferred revenue 3,757 1,338 Net Cash Provided by Operating Activities 313,858 74,169 Cash Flows from investing Activities: Purchases of investments (106,639) (239,957) Proceeds from sale of investments 101,942 119,995 Proceeds from note receivable 3,412 3,251 Purchases of land and land purchase option (263,002) (174,186) Proceeds from sale of land 480,000 308,760 Sale of purchase options 52,500 Purchases of furniture and equipment (7,647) Net Cash Provided (Used) by Investing Activities 215,713 62,716 Cash Flows from Financing Activities: Payments on long-term debt (480,000) (213,024) Net Cash Used by Financing Activities (484,000) (213,024) Net Change in Cash and Cash Equivalents 49,571 (76,139) Cash balance, beginning of year 284,193 360,332 Cash Balance, End of Year $ 333,764 $ 284,193 Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 2,567 $ 18,367 See accompanying notes. -5- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note I - Organization and Summary of Significant Accounting Policies Organization - Jefferson Land Trust (the Land Trust) is a Washington nonprofit corporation, formed on April 7, 1989. The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public, The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington. The Land Trust has been accredited by the national Land Trust Alliance since August 5, 2009. On September 5, 2007, JLT Resources, LLC was formed with the Land Trust as its only member, JLT Resources, LLC was formed for the purpose of purchasing and holding land for conservation purposes. Principles of Consolidation - These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLC (collectively, "JLT'). Inter -organization balances and transactions have been eliminated in consolidation. Basis of Accounting - The consolidated financial statements of JLT have been prepared on the accrual basis of accounting. Basis of Presentation - Net assets, revenues, expenses, gains and losses are classified based on the existence or absence of donor -imposed restrictions. Accordingly, the net assets of JLT and changes therein are classified and reported as follows: Unrestricted Net Assets - Include all net assets on which there are no donor -imposed restrictions for use, or on which donor -imposed restrictions were temporary and have expired. Temporarily Restricted Net Assets - Include all net assets subject to donor -imposed restrictions that will be met either by actions of JLT or the passage of time. Permanently Restricted Net Assets, - Include all net assets received by donations wherein the donors impose a permanent restriction on the use of the gift. The donors require the gift to be invested and only the income from such investments may be used to support the intended cause. All donor -restricted support is reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restriction. When restrictions expire (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from restriction, Gifts of equipment are reported as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long-lived assets are placed in service. -6- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note I - Continued Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Equivalents - For reporting purposes, 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 32% of pledges receivable, and the total of all pledges from board members represented approximately 41 % of pledges receivable at December 31, 2012. One donor's pledge represented approximately 14% of pledges receivable, and the total of all pledges from board members represented approximately 28% of pledges receivable at December 31, 2011. Investments - Investments in marketable securities with readily determinable fair values and all investments in debt securities are valued at their fair values in the consolidated statement of financial position. The carrying amount of the investment held in trust is determined by the trustee holding the securities. Unrealized gains and losses are included in the change in net assets. JLT has established a designated fund at Jefferson County Community Foundation. As JLT has designated itself as the beneficiary of the fund, the fund balance and activity are reported in the consolidated financial statements of JLT as required by GAAP. Accounts Receivable - Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Grants and Contracts - 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 recorded as deferred revenue. Furniture and Equipment - Furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference, less any amount realized from disposition, is reflected in earnings. Maintenance and repairs are charged to expenses as incurred. Costs of significant improvements are capitalized. JLT provides for depreciation using the straight-line method over the estimated useful lives of the assets of five to ten years. -7- JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note I - Continued Land and Easements - JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value, with fair values generally based on independent professional appraisals. These assets fall into four primary categories: Conservation Lands - Real property with significant ecological value for habitat, open space, or working lands. Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council - Certified, managed forest. Conservation Easements - Voluntary legal agreements between a landowner and a land trust or government agency to permanently protect the identified natural features and conservation values of the property. These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction in net assets to record the value of the public's benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes. Two easements valued at $337,304 in total were donated to JLT during the year ended December 31, 2012. One other easement was modified during the year ended December 31, 2012, resulting in an increased value of $200,000. Accordingly, $537,304 of contribution revenue and $537,302 of related write down expense have been reported on the consolidated statement of activities for the year ended December 31, 2412. Land Held for Sale - At December 31, 2011, JLT owned one property, Tamanowas Rock Sanctuary, to be sold in the near future under prearranged agreements with the potential owner. Tamanowas Rock Sanctuary was purchased by JLT with the help of the Jamestown S'Klailam Tribe and a low interest loan from the Bullitt Foundation (Note 6). The Jamestown S'Klallam Tribe purchased an option on the property in 2009 which was exercised in December 2012, The Tribe donated a conservation easement on the property to JLT in 2012 as the intention of the Tribe is to protect the property in perpetuity for both habitat and cultural purposes. Tamanowas Rock Sanctuary has a long history of cultural ties to the Jamestown S'Klallam Tribe. Land Purchase Option - At December 31, 2010, JLT had $52,500 invested in purchase options for Chimacum Dairy, a historic dairy farm in the Chimacum Valley. These options were sold at cost during the year ended December 31, 2011, when a group of conservation investors bought the faun, they reimbursed JLT for the purchase option amount and entered into a long term lease with a local creamery in Jefferson County. JLT continues to hold a conservation easement on the property for working farm and habitat purposes. The group of conservation investors includes related parties to JLT. -8- JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note I - Continued Purchase Option Received - In 2009, JLT 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 JILT in 2009 for an option to purchase the property which was exercised in 2012. Federal Income Taxes - The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) to be exempt from federal income taxes under Internal Revenue Code Section 501 (c)(3), Contributions to JLT are deductible as allowed under Section 170(b)(1)(A)(vi) of the Code. JLT files income tax returns with the U.S. government and is subject to income tax examinations for the current year and certain prior years based on the applicable laws and regulations. During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. Functional Allocation of Expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the consolidated statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Comparative Amounts for 2011 - The financial statements include certain prior -year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with JLT's financial statements for the year ended December 31, 2011, from which the summarized information was derived. Subsequent Events - JLT has evaluated subsequent events through March 19, 2013, the date on which the consolidated financial statements were available to be issued. Note 2 - Fair Value Measurements GAAP defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. To increase consistency and comparability in fair value measurements, GAAP uses a fair value hierarchy that prioritizes the inputs to valuation approaches into three broad levels. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation Techniques - Financial assets and liabilities valued using Level 1 inputs are based on unadjusted quoted market prices within active markets. Financial assets and liabilities valued using Level 2 inputs are based primarily on quoted prices for similar assets or liabilities in active or inactive markets. Financial assets and liabilities using Level 3 inputs are primarily valued using management's assumptions about the assumptions market participants would utilize in pricing the asset or liability. Valuation techniques utilized to determine fair value are consistently applied. -9- JEFFERSON LAND TR UST AND SUBSIDIAR Y Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 2 - Continued Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2012 or 2011. Mutual Funds - Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by 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. There are no significant redemption restrictions or unfunded commitments on these investments. Fair Values Measured on a Recurring Basis - Fair values of investments measured on a recurring basis at December 31 were as follows: Fair Value. Measurements as of'December 31, 2012 Leven Level Level Total Mutual funds - Fixed income mutual fund $ 38,130 $ - $ - $ 38,130 Funds held at Jefferson County Community Foundation 59,339 59,339 Total Investments Held at Fair Value $ 38,130 $ - $ 59,339 $ 97,469 Certificates of deposit, held at cost plus accrued interest 370,333 Total Investments $ 467,802 -10- JEFFERSON LAND TRUST AND SURSI,DIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 2 - Continued Fair Value Measurements as affDecember 31, 2011 Mutual funds - Fixed income mutual fund $ 36,480 $ - $ - $ 36,480 Funds held at Jefferson County Community Foundation 56,485 56,085 Total Investments Held at Fair Value $ 36,480 $ - $ 66,086 $ 92,565 Certificates of deposit, held at cost plus accrued interest 366,712 Total Investments $ 469,277 A reconciliation of the beginning and ending balances for fair value measurements made using significant unobservable inputs (Level 3) are as follows: 2012 2011 Beginning balance at January 1 $ 56,085 $ 125,377 Interest income 4,349 Realized/unrealized gain (loss) 3,254 (5,122) Investment fees paid (3,234) Withdrawals {65,285} Ending Balance at December 31 $ 59,339 L 56,085 Investment return for the years ended December 31 consisted of the following Interest income Realized/unrealized gain (loss) Investment fees II- 2012 2011 $ 9,289 $ 16,819 3,828 (5,467) (222) (3,234) $ 12,895 $ 8.118 JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 3 - Pledges Receivable Pledges receivable at December 31 are to be received as follows: Less than one year Two to five years Thereafter Less discount to present value (0.6%) Less allowance for uncollectible pledges Note 4 .- Note Receivable 7Il77 anII $ 191,458 $ 217,724 320,995 252,910 14,650 23,750 527,103 494,384 (6,301) (5,160) x'5,782 (5,000) $ 515.420 A 484,224 On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. JLT received a promissory note in exchange. The promissory note is for the amount of $93,750 and is to be paid in monthly installments of approximately $600. The note matures on January 15, 2028, with an annual interest rate of 5%. The note receivable at December 31 is to be received as follows: Less than one year Two to five years Thereafter -12- Nll1� W)71 $ 3,579 $ 3,405 20,838 15,454 53,974 62.944 $ 78,391 1 81.803 JEFFERSON LAND TR UST AND SUBSIDIAR Y Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 5 - Land, Conservation Easements, and Purchase Options Land, conservation easements, and purchase options at December 31 are summarized as follows: Conservation lands- Quimper Wildlife Corridor Duckabush Oxbow Chimacum Creek Bulis Forest Preserve Kilham Corner Snow Creek Estuary Gateway Donovan Creek Conservation easements Land held for sale- Tamanowas Rock Sanctuary Note 6 - Long -Term Debt 2012 2011 279,988 $ 264,987 180,000 180,000 280,159 160,160 125,240 125,240 38,930 38,930 86,000 86,000 85,000 85,000 144,500 1,500 49 47 .MI I M $ 1,219,866 -$. 1,541,864 On December 18, 2007, JLT entered into a loan agreement with a commercial leader 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, 2011 The loan was secured by the Red Dog Farm property and an Assignment of Rents from the lease described in Note 8. The underlying property was sold during the year ended December 31, 2011. At that time, this loan was paid off in full. On December 23, 2009, JLT entered into a promissory note in the face amount of $480,000 with a Washington nonprofit corporation to purchase the Tamanowas Rock Sanctuary property. The note is secured by the property. The note has a stated interest rate of 1% and had a maturity date of December 31, 2011. When the loan proceeds were advanced, JLT recorded contribution revenue and a loan discount using an imputed interest rate of 8.5%. During the year ended December 31, 2011, the note was extended through December 31, 2012, at the same interest terms as the original note. The discount on the loan was being amortized to interest expense over the life of the loan. Imputed interest expense of $36,000 was reported in the accompanying consolidated statement of activities for the years ended December 31, 2012 and 2011. The discounted amount due at December 31, 2011, was $444,000. During 2012, the Tamanowas Rock Sanctuary property was sold and the related debt was paid in full. -13- JEFFERSON LAND TR UST AND SUBSIDIAR Y Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 7 -Retirement Plan In 2010, JILT began a Simplified Employee Pension - Individual Retirement Accounts Contribution Benefit Plan ("the Plan"), Eligible employees may join the Plan after one year of service. The total employer contribution for 2012 and 2011 was $4,760 and $5,298, respectively, and is included in employee benefits on the consolidated schedule of functional expenses. Note & - Lease Agreements 4n July 2, 2008, JLT entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease was renewed effective July 2010 and continued through June 2012. The agreement called for monthly payments of $1,412 plus utilities. After June 2012, the lease converted to a month to month rental basis. Rent expense totaled $17,804 and $17,678 for the years ended December 31, 2012 and 2011, respectively. Note 9 - Unrestricted Net Assets Unrestricted net assets consisted of the following at December 31: Designated- Tamanowas Rock Sanctuary Qui mper Wildlife Corridor Duckabush Oxbow Chimacum Creek Bulis Forest Preserve Kilham Corner Snow Creek Estuary Gateway Donovan Creek Conservation easements Total designated Undesignated 2012 2011 $ - $ 480,000 279,988 264,987 180,000 180,000 280,159 160,160 125,240 125,240 38,930 38,930 86,000 86,000 85,000 85,000 144,500 1,500 49 47 1,219,866 1,421,864 682,369 180,220 1 M2,235 E ,602,084 JEFFERSON LAND TRUST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 10 - Temporarily Restricted Net Assets Temporarily restricted net assets consisted of the following at December 31; Purpose restriction - For stewardship of Bulis Forest Preserve Forest Legacy program For stewardship and management services for Tamanowas Rock Working Farm Fund Consulting fees WALT Stewardship Funding Other program restrictions Time restriction - Outstanding pledges 2012 2011 $ 76,790 $ 78,643 40,002 53,865 19,008 45,468 12,500 1,000 673 15,032 176,433 166,54$ 515,020 494,384 $ 691,453 $ 660,932 Net assets of $69,223 were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of $195,614 were released due to the expiration of time restrictions for the year ended December 31, 2012. Note 11 - Permanently Restricted Net Assets At December 31, 2012 and 2011, JLT had $35,465 and $30,996, respectively, of permanently restricted net assets. This is comprised of endowment investments (Note 12), the income of which is available to support general operations. Note 12 - Endowments The JLT endowment consists of one fund established to support general operations. As required by GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donor - imposed restrictions. Interpretation of Relevant Law - JLT's Board of Directors has interpreted the Washington State Prudent Management of Institutional Funds Act (PMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor -restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, JLT classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. JEFFERSON LAND TR US T A ND S UBSIDIA R Y Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 12 - Continued The remaining portion of the donor -restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However, JLT has informed donors of its spending policy which states that no distributions will be made during the first five years of the fund's existence or until it reaches a threshold balance of $400,000. Since these milestones have not yet been reached, JLT adds all amounts earned to the permanently restricted balance. In accordance with PMIFA, JLT considers the following factors in making a determination to appropriate or accumulate donor -restricted endowment funds: - The duration and preservation of the fund; - The purposes of JLT and the donor -restricted endowment fund; - General economic conditions; - The possible effect of inflation and deflation; - The expected total return from income and the appreciation of investments; - {other resources of JLT; and - The investment policies of JLT. As of December 31, 2012, endowment net assets consisted of the following: Temporarily Permanently Unrestricted Restricted Re.etrirfed Tot,71 Donor restricted endowment funds $ - $ - $ 35,465 $ 35,465 Endowment Net Assets, December 31, 2012 $ $ 35,465 35,465 As of December 31, 2011, endowment net assets consisted of the following: Temporarily Permanently Unrestricted Restricted Restricted Ttoal Donor restricted endowment funds $ - $ - $ 30,996 $ 30,996 Endowment Net Assets, December 31, 2011 $ - 3Q 996 $ 30,996 -16- JEFFERSON LAND TR UST AND SUBSIDIARY Notes to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 12 - Continued Changes to endowment net assets for the years ended December 31, 2012 and 2011, are as follows: Endowment net assets, January1, 2011 Endowment investment return - Interest and dividends Realized and unrealized losses Total endowment investment return Contributions Endowment Net Assets, December 31, 2011 Endowment investment return - Interest and dividends Realized and unrealized gains Total endowment investment return Contributions Endowment Net Assets, December 31, 2012 Temporarily Permanently Unrestricted Restricted Restricted Total - $ - $ 24,226 $ 20,226 791 791 (271) (271 520 524 10,250 10,250 $ - $ 30,996 $ 30,996 776 776 654 654 1,430 11430 3,039 3,439 $ - $ $ 35,465 $ 35,465 Funds with Deficiencies - From time to time, the fair value of assets associated with individual donor restricted endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual duration. In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies as of December 31, 2012 or 2011. Return Objectives and Risk Parameters - JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets, Endowment assets include those assets of donor -restricted funds that JLT must hold in perpetuity or for donor -specified periods as well as board -designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time, -17- JEFFERSON LAND TR UST AND SUBSIDIAR Y Nates to Consolidated Financial Statements For the Year Ended December 31, 2012 Note 12 - Continued Strategies Employed for Achieving Objectives - To satisfy its long-term rate -of -return objectives, JILT 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. -18- SUPPLEMENTARY INF©R1 wlA7'I d N (D N 00 (D (D f- M CO r r LO M N 1- r (0 N t CT) M M 0 M M 6) 0 M 0 O lqr N h N V) r- Lo M -T 00 W 0) co Cfl s- N 00 N 0 � ti CO O 00 CD 'T CD dt LO CA M f-- 0 - � 'V N 0) 00 ONO (VD LO LO CD 0) cq M CO It M CO N N r r LC] N M r N r r m N N r CO CD CO N 00 CO f- O W O) CD (.4 r LC) Q) - 0 N (D 00 0 M1 CD r CO C] r CO LC] r M r� t c¢ (D CO 00 M C) CD 0 N (14 (D ❑) M C7 l- Cl) r N OO r r 00 CO 0) h co N L(] M C] P�: f- 0O M r CI) 06 W Lf? M L(7 r Nto r N ^N+ N N v coLO NM CO r Nr Q fy r G<i f- [.0 (D r r- 00 LC) r M M M O N N V 00 r- r 6) M 0 M pCO N Q) r C7 V y r f`- --t O 00 v 00 00 00 Nr C7 M LC) I- L) to C77 CS t 'C r, Lof] Lf M N r r 00 YN ,� U) M N 0 V r r C£) r (D I- 0) 00 N 00 CO CD f - r: L[7 It N N W CA (D M W M O r N (0 Pte- TY M r C> 0) () N 00 O LO Cb N M M N Nt N C It r a N M- (p M L{) CS) M r pp LO N C37 I` l37 4 co N co CO Liz N_ N co O) (.0 0) It ti N LC) O 0 co t- N N Co r M 1- L{) M 0 0) 00 r- C] d) sr Lo m 7. a) CD U) N to CO 07 V LO CD 6) 0) r M r- N 0) r OO to O N (.S7 00 0 t - N OO M N -T N CO N M�- n r N r N M CV M r co 0. r N d L{) N Eta d tO d M x W N C LU 7 W L) a) M CII w 0 S1 z N d C m 0- x w CO (D P- r co CSO Cn d! N d N co P t#! ff� m N OV N Or) N C] r OD m Ei3 O W r co N r Eta 0) N C 0l Q N N 7 0] 0 a x tg w cit Q- O U) H C O D) � N C C � N U) N N � N N B x (a N G ❑. O c7 o C4 x e/j Cp "a ca y .C6- E lU N D" N C 0 .0 m X U �• CO Q c (u C to U 3�N o D) ;�(n T U3 M L) Qw N T Q [0 v L 7 a` Nc N S; �� . U ®) U= N N ._ L X -C= N 06 toCLw � d]0 J COQ�aHdO ❑I �iC) m", d tO d M x W N C LU 7 W L) a) M CII w 0 S1 z N d C m 0- x w CO (D P- r co CSO Cn d! N d N co P t#! ff� m N OV N Or) N C] r OD m Ei3 O W r co N r Eta 0) N C 0l Q N N 7 0] 0 a x tg w cit Q- O U) H Jefferson Land Trust RESOLUTION February 18, 2014 WHEREAS, Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures Funding application, and Conservation Futures Funding Application process rewires that Jefferson Land Trust prioritize its projects, and WHEREAS, Jefferson Land Trust has been working since 2001 in partnership with Jefferson County Conservation District, Jefferson County, Washington Department of Fish and Wildlife, North Olympic Salmon Coalition, the Hood Canal Coordinating Council, the Jamestown S'Klallam Tribe and WSU Cooperative Extension to acquire and restore critical salmon spawning, rearing and migratory habitat in the Salmon/Snow Creek riparian area and estuary, and WHEREAS, these professional naturalists and scientists have recommended that Snow Creek habitat protection be expanded to provide further benefits for migrating salmonids and other species, and WHEREAS, acquisition of high-priority identified parcels on Snow Creek from willing sellers would provide such habitat protection, the Jenks property and the Irvin property have been identified as such, AND WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, according to the Salmon and Snow Creek Fish and 'Wildlife Management Plan, AND WHEREAS, Jefferson Land Trust has been working since 1995 in partnership with Jefferson County, the City of Port Townsend, Washington Department of Natural Resources, the community and the U.S. Fish. and Wildlife Service to acquire land lot by lot to preserve a 3.5 - mile greenbelt and natural storm -water drainage -way called the Quirriper Wildlife Corridor.. and WHEREAS, professional naturalists and scientists have recommended that this corridor he expanded to provide further benefit for wildlife species, especially migrating birds, and to provide additional wetland buffers, and Jefferson Land Trust Page l oft IAND WHEREAS, acquisition of high-priority identified lots in the Quimper Wildlife Corridor area from willing sellers would provide such wildlife and wetland protection, and WHEREAS, this important community asset will require stewardship in perpetuity. to include annual monitoring, maintenance, and management, as spelled out in the City -adopted Quimper Wildlife Corridor Management Plan. Resolution, AND BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its February 19, 2014 Board of Directors meeting to sponsor an application for Conservation Futures Funding for the Snow Creek Riparian Area, including acquisition of a conservation easement on the Jenks property, and fee simple acquisition of the Irvin property. The Board also agreed that The Snow Creek Riparian Area application is the highest priority for 2014 Conservation Futures Funding due to the fact that it would provide a vital connectivity to the Snow Creek project area, the properties are currently listed for sale, grant funding may be available now through and the Salman Recovery Funding Board and the project represents a collaborative effort with community members and our Curnsortium partner organizations as they work to preserve this significant salmon habitat. The second highest priority is funding for the Quimper Wildlife Corridor. The properties for sale in the corridor are high priority for protection due to the habitat, floodplain and recreational qualities. However, if Salmon .Recovery Funding Board grant matching funds are not awarded to Jefferson Land Trust in 2014 for the Snow Creek Riparian Area Project, Jefferson Land Trust requests that the Snow Creek Riparian Area Project application be rescinded until further notice and that the Quimper Wildlife Corridor application is considered as Jefferson Land Trust's highest priority for 2014 Conservation Futures Funding consideration. Signed this 18th day of February, 2014. 7� ve .Moore, Pre dent, BoAd of Directors Jefferson Land Trust Jefferson Land Trust Page 2 of 2 JEFFERSON LAND TRUST Helping the community preserve open pace, working lands and habitat forever 1033 Lawrence Street, Port Townsend, WA 98368 360 -379 -9501 -office 360 -379 -9897 -fax www.saveland.org jeffersonlandtrust@saveland.org July 28, 2017 Jefferson County Conservation Futures Citizen Advisory Committee Re: Amendment request to Snow Creek Watershed Acquisitions, Resolution No. 29-14, July 7, 2014 and Resolution No. 05-15, January 12, 2015 Dear Jefferson County CFF Advisory Committee, Jefferson Land Trust is requesting an amendment to our Jefferson County Conservation Futures Program Project Agreement titled Snow Creek Watershed Acquisitions, entered into with Jefferson County on July 20, 2015 (see attached project agreement). We are requesting approval of a property substitution, as one of the landowners under the original project scope (Jenks TPN 802111001) decided not to sell to the Land Trust. Project overview and history In 2014, Jefferson Land Trust applied for Conservation Futures Funds in the amount of $83,824 to support the acquisition of the Irvin and Jenks properties, with match for the CFF request from the State Recreation and Conservation Office (RCO) grant #13-1198 in the amount of $370,854. The CFF contribution represents 16% of the total project cost. Language from our original RCO grant application provides the context for our proposal: Jefferson Land Trust (JL T) and Chumsortium partners (includes Washington Department of Fish and Wildlife [WFDWJ, North Olympic Salmon Coalition, Jefferson County Conservation District, Hood Canal Salmon Enhancement Group, Hood Canal Coordinating Council, WSU) identified the Irvin and Jenks properties as important for permanent protection and restoration efforts for migrating salmon species, water quality and other wildlife habitat. Numerous salmon species utilize the well -forested riparian habitat of Snow Creek that flows through the properties, and the Irvin property includes the upper end of the historic endangered Summer Chum distribution. The riparian habitat found on the Jenks property, located directly upstream from the Irvin parcels is relatively undisturbed, but water quality and other habitat values could be significantly impacted if either of these properties is developed to their full potential under current county regulations. Jefferson Land Trust acquired the -74 acre Irvin parcels in August, 2015 and has conducted extensive restoration and replanting of the riparian habitat of Snow Creek as it travels through the parcel from south to north. The upstream Jenks parcel negotiations fell through and the property was sold to a new landowner that is not interested in conservation at this time. As of July 2017, there is currently approximately $26,000 of unspent CFF funds available for the project. In addition, there is still funding available for acquisitions in the Snow Creek watershed through RCO grant #13-1198 and RCO #15-1200 to provide the required match for the CFF grant fund request. Project amendment proposal Earlier in 2017 the Land Trust learned of a nearby Snow Creek property for sale. The Barry property is located to the south (upstream) of Jefferson Land Trust's Snow Creek Uncas Preserve and almost directly north (downstream) of the Irvin property, now called the Upper Snow Creek Preserve (see attached location map). The 22 -acre property is currently listed for sale for $120,000, and the landowner has expressed an 4LREDip P O ^SFO, A�OX CO��Ny Jefferson Land Trust is a 501 (c) (3) non profit, tax-exempt, private corporation. Printed on recyded paper interest in selling it to the Land Trust for conservation purposes. A recent appraisal conducted for the Land Trust (and paid for through the RCO grant 13-1198) indicated the value of the property at $110,000.00. The appraisal is now under review by another independent appraiser to verify the value and appraisal methodology before making an official offer to the land owner. The Barry property is very well suited for habitat preservation and restoration efforts. With the exception of a small derelict cabin planned for demolition, there is no other evidence of development. Snow Creek meanders through the property as it heads downstream, and side channels and wetlands can be found throughout the forested property (see the attached Lidar map). It is the second naturally forested parcel in the watershed above the Land Trust's Snow Creek Uncas Preserve, and has a mature native forest of diverse species including fir, spruce, cedar, maple and alder. The property is within the historic range of ESA -threatened Strait of Juan de Fuca summer chum salmon, while the well-developed channel complexity provides abundant habitat for coho and other salmonids as well. The property is zoned for rural residential uses and could be subdivided into 4 parcels. It is unknown exactly what the County would allow in terms of development, but development and forestry activities on this parcel would very likely result in impacts to the salmon and other wildlife habitat through loss of native vegetation and increased sediment load in Snow Creek. We are very interested in acquiring the property to preserve the intact habitat values it provides with Snow Creek main -stem, wetlands and side channels, and mature native forest. It also provides an important opportunity to remove a significant source of Japanese Knotweed, a noxious weed species that threatens invasion of all downstream habitat in the Snow Creek watershed. The Land Trust recently received enthusiastic approval from the Hood Canal Coordinating Council, the Lead Entity for Hood Canal Salmon Recovery as well as RCO to amend our open RCO Snow Creek grants to include the Barry property. Remaining funds in RCO #13-1198 and funding remaining after the Taylor acquisition in RCO #15-1200, along with match from the Conservation Futures grant awarded in 2015 should be enough to acquire the property and cover additional allowable project costs like appraisal review, stewardship plan, survey work and project management. We feel that the Barry property provides even better habitat than the original Jenks parcel proposed for acquisition. We hope that the Conservation Futures Advisory Committee will agree and recommend our scope change to the BoCC. Please let us know if you have any additional questions. Thanks for your consideration, i Richard Tucker Jefferson Land Trust Executive Director Snow Creek Project Area Locator Map L MWO rl i Barry - Snow Creek Wetlands Jefferson Land Trust Nature Preserve Privately Owned Conservation Area Original potential acquisition (Jenks) Publicly protected Wetlands Miles For informational purposes only. All data represented are from varying sources and approximate. Map created in July, 2017 r7� A i 10 22 acres by �rA t' Sa i rte,, 9 kaon Public Hea t�i 4 August 7, 2015 Re: Snow Creek Watershed Acquisitions 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Enclosed for your permanent file is the fully executed contract you have entered into with Jefferson County Public Health. If you have any questions, you may reach me at (360) 385-9438. Sincerely, Denise Banker Contracts Administrator Community Health Environmental Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 if) Always working for a safer and healthier community (f) 360-379-4487 JEFFERSON COUNTY CONSERVATION FUTURES PROGRAM PROJECT AGREEMENT Project Sponsor: Jefferson Land Trust Project Title: Snow Creek Watershed Acquisitions Approval: Resolution No. 29-14, July 7, 2014 and Resolution No. 05-15, January 12, 2015 A. Parties to the Agreement This Project Grant Agreement (Agreement) is entered into between County of Jefferson (County), PO Box 1220, Port Townsend, Washingtori 98368 and Jefferson Land Trust (Sponsor), 1033 Lawrence Street, Port Townsend, WA 98368, and shall be binding upon the agents and all persons acting by or through the parties. 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 is administered by Jefferson County Environmental Health for the Sponsor for the project named above. C. Description of Project The subject Project is described in the attached 2014 Conservation Project Application for the Snow Creek Watershed Acquisitions Project. Conservation Futures Fund ("CFF") from Jefferson County in an amount not to exceed $83.824 will be used towards fee simple acquisition, by Jefferson Land Trust, of the real property known in the records of the Jefferson County Assessor as APN#s 802024001., 995400040, 995400035, 995400025, 995400049, 995400058, 995400057, 995400059, 995400028, 995400037, 995400042,995400054, 995400056, 995400113, 995400114, and 802111001 for acquisition expenses. The match is grant (RCO# 13-1198) from the Recreation and Conservation Office Salmon Recovery Funding Board and a landowner donation of property value. D. Term of Agreement The Project Sponsor's on-going obligation for the above project funded by this Agreement is to provide maintenance of the site or facility to serve the purpose for which it was intended in perpetuity, unless otherwise identified in this Agreement. E. Period of Performance The Project reimbursement period for acquisition expenses shall begin on July 7, 2014, The Project reimbursement period for acquisition expenses will end on January 12, 2018 unless proof of match is provided prior to this date. No expenditure made before July 7, 2014 is eligible for reimbursement unless incorporated by written amendment into this Agreement. F. Project Funding The total grant award provided by the Conservation Futures Fund (CFF) for the Project shall not exceed $83,824 and Jefferson County CFF shall not pay any amount beyond that approved herein for funding of the Project. The Sponsor shall be responsible for all total costs for the Project in excess of $524,678. in no event will the CFF funds expended for this purchase exceed sixteen percent (16%) of the overall acquisition cost of APN#s 802024001, 995400040, 995400035, 995400025, 995400049, 995400058, 995400057, 995400059, 995400028, 995400037, 995400042, 995400054, 9A5400056, 995400113, 995400114, and 802111001. The contribution by the Sponsor toward work on the Project at a minimum shall. be as indicated below. The contribution by the County toward work on the Project is described immediately above and in "C" above. Snow Creek Watersheds Acquisition - 2014 Acquisition Percentage Dollar Amount Conservation Futures — Snow Creek Watershed Acquisitions I l6% $83,824 _ Project Sponsor 84% $440,854 Total Project Cost L100% $524,678 G. Unexpended Project Allocations Should unexpected Project allocations, 'including, but not limited to project completion at less than the estimated cost or, alternatively, the abandonment of the Project occur, then the Sponsor shall notify the County. H. Rights and Obligations All rights and obligations of the parties to this Agreement are subject to this Agreement and its attachments, including the Sponsor's Application and Jefferson County Conservation Futures Program Manual for the 2014 Funding Cycle, all of which are attached hereto and incorporated herein. Except as provided herein, no alteration of any of the terms or conditions of this Agreement will be effective unless provided in writing. All such alterations, except those concerning the period of performance, must be signed by both parties. Period of performance extensions need only be signed by Jefferson Board of County Commissioners. I. Indemnification Sponsor shal l indemnify, defend and hold harmless the County, its officers, agents and employees, from and against any and all claims, losses or liability, or any portion thereof, including attorneys fees and costs, arising from injury or death to persons, including injuries, sickness, disease or death to Sponsor's own employees, or damage to property occasioned by a negligent act, omission or failure of the Sponsor. J. Insurance The Sponsor shall secure and maintain in force throughout the duration of this contract policies of insurance as follows: If and only if the Sponsor employs any person(s) in the status of employee or employees separate from or in addition to any equity owners, sole proprietor, partners, owners or shareholders of the Sponsor, Worker's Compensation Insurance in an amount or amounts that are not less than the required statutory minimum(s) as established by the State of Washington or the state or province where the Sponsor is located. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non -owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the County named as an additional insured in connection with the Sponsor's performance of the contract. General Commercial Liabi)fty Insurance in an amount not less than a single limit of one million dollars ($1,000,000) per occurrence and an aggregate of not less than two (2) times the occurrence amount ($2,000,000.00 minimum) for bodily injury, including death and property damage, unless a greater amount is specified in the contract specifications. The insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: Snow Creek Watersheds Acquisition - 2014 a. Broad .Form Property Damage, with no employee exclusion; b, personal Injury Liability, including extended bodily injury; C. Broad Form Contractual/Commercial Liability — including completed operations; d. Premises — Operations Liability (M&C); e. Independent Contractors and subcontractors; f. Blanket Contractual Liability. Such insurance coverage shall be evidenced by one of the' following methods: * Certificate of Insurance; * Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. Certificates of coverage as required by this section shall be delivered to the County within fifteen (15) days of execution of this agreement. Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of the contract by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured retention or the Sponsor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.. The Sponsor shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor. All insurance provisions for subcontractors shall be subject to all of the requirements stated herein. Failure of the Sponsor to take out and/or maintain any required insurance shall not relieve the Sponsor from any liability under the Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification. It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect both parties and be primary coverage;for any and all losses covered by the above described insurance, It is further agreed by the, parties that insurance companies issuing the policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or for assessments under any -form of policy. It is further agreed by the parties that. any and all deductibles in the above described insurance policies shall be assumed by and be at the sole risk of the Sponsor. It is agreed by the parties that judgments for which the County may be liable, in excess of insured amounts provided herein, or any portion thereof, may be withheld from payment due, or to become due, to the Sponsor until such time as the Sponsor shall furnish additional security covering such judgment as may be determined by the County. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 4$.62 RCW shall be non-contributory with respect to any policy of insurance the Sponsor must provide in order to comply with this Agreement. Snow Creek Watersheds Acquisition - 2014 If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by the Sponsor: refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Sponsor to obtain the full text of that endorsement and forward that full tent to the County. The County may, upon the Sponsor's failure to comply with all provisions of this contract relating to insurance, withhold payment or compensation that would otherwise be due to the Sponsor. K. Independent Contractor The Sponsor and the County agree that the Sponsor 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 Sponsor nor any employee of Sponsor 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 Sponsor, or any employee of Sponsor. The Sponsor 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 the project for which they are made is executed or not. The County shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information; reference, and use in connection with the Sponsor's endeavors. M. Compliance with Applicable Statutes, Rules, and Jefferson County Policies This Agreement is governed by, and the Sponsor shall comply with, all applicable state and federal laws and regulations, including RCW 84.34.210, and published agency policies, which are incorporated herein by this reference as if fully set forth. N. Sponsor's Accounting Books and Records The Sponsor shall maintain complete financial records relating to this contract and the services rendered including all books, records, documents, receipts, invoices, and all other evidence of accounting procedures and practices which sufficiently and properly reflect ail 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 Snow Creek Watersheds Acquisition - 2014 dispute hearing with a mediator assigned by or associated with Jefferson County District Court. Either party's request for a dispute hearing must be in writing and clearly state: a, the disputed issue(s), b. the relative positions of the parties, and c. the Sponsor's name, address and Agency contact number These requests must be mailed to the Project Manager, Jefferson County Environmental Health Department, 615 Sheridan St,, Port Townsend, WA 98368, within fifteen (15) days after either party received notice of the disputed issue(s). The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial tribunal. The parties will split evenly the cost of mediation or whatever form of dispute resolution is used. Q. Termination for funding Jefferson County may unilaterally terminate this contract in the event funding from state, federal, or other sources are withdrawn, reduced, or limited in any way after the effective date of this contract. R. Termination for Convenience The County reserves the right to terminate this agreement at any time by giving ten (10) days written notice to the Sponsor. S. Assignment 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 Iimitation provided for in this agreement shall not constitute a waiver of any other provision. U. County Does Not Assnme 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. If any part of this Agreement is ruled or adjudicated to be unlawful or void, all other sections of this Agreement shall continue to have full force and effect. X. Effective Date This agreement, for the Snow Creek Watershed Acquisitions Project shall be.effective upon signing by all parties. Snow Creek Watersheds Acquisition - 2014 Y. Venue: Venue for any litigation arising from this Project Agreement shall be only in the Superior Court In and for Jefferson County, Each party to this agreement shall be responsible for their litigation costs, including attorney's fees. rf- DATED this day of UL 2015. By David Sullivan, Ch ix Jefferson Board of County Commissioners Sp Jefferson Land Trfist Attested: Carolyn Av , Deputy Cler f the Board T,ON'to form:-�-- David Alvarez, Chief Civil DP Snow Creek Watersheds Acquisition - 2014 615 Sheridan Street (j R Port Townsend, WA 98368 I� www.JeffersonCountyPublicHealth.org Public He�alt To: Jefferson County Board of Commissioners From: Mary Biskup, Chairman —p, S' Conservation Futures Citizen Oversight Committee Date: October 10, 2017 Subject: Conservation Futures Citizen Oversight Committee - Recommendations on Proposed Scope Change for the 2014 Snow Creek Watershed Acquisitions Conservation Futures Project A special meeting of the Conservation Futures Citizen Oversight Committee (CF Committee) took place on August 10, 2017 to consider a request by the Jefferson Land Trust to change the scope of the Snow Creek Watershed Acquisitions project, originally approved for CF funds in 2014, by substituting APN 802021005 (Barry) for one of the two original project parcels, APN 802111001 (Jenks). The original parcel is no longer available for purchase and the "new" parcel is of similar location, size and habitat characteristics. No additional CF funds are being requested. At the meeting, the CF Committee made the following findings: 1. The County has approved the use of CF funds to assist the Jefferson Land Trust in purchasing the Jenks property during the 2014 funding cycle to support the goal of protecting riparian and salmon habitat along Snow Creek. It entered into an agreement with the Land Trust to complete the project. 2. The Land Trust diligently pursued the purchase of the Jenks parcel but due to the decisions of the original landowner and subsequent purchaser, the purchase is no longer possible. 3. The 22 -acre Barry property recently became available for purchase. The parcel is in the same watershed as the Jenks property and is located about a half mile to the north. 4. Purchase of the Barry property will protect the identical natural resources as the Jenks property was intended to protect. The Jenks and Barry parcels are of similar size. The Barry property would be an important addition to the ongoing protection efforts of the Upper Snow Creek Preserve. 5. Funding is still available for this purchase from RCO grants along with conservation futures funds earmarked for the Jenks purchase. No additional county funds will be required to purchase the Barry property. A portion of the RCO funding may expire soon. 6. The RCO, which will fund 84% of the total acquisition cost, has approved amendments to allow the purchase of the Barry property. 7. The proposed amendment is a viable project and worthy of conservation futures funding. After providing answers to the standard appearance of fairness questions and the recusal of Sarah Spaeth of Jefferson Land Trust, an absolute majority of the committee voted unanimously to approve amending the project to include the Barry parcel. Community Health Developmental Disabilities 360-385-9400 360-385-9401 (f) Always working for a safer and healthier community Environmental Health Water Quality 360-385-9444 (f) 360-379-4487 $ON JEFFERSON COUNTY ti DEPARTMENT OF COMMUNITY DEVELOPMENT 621 Sheridan Street, Port Townsend, WA 98368 1 Web: www.co.iefferson.wa.us/communitvdevelopment I NUC Tel: 360.379.4450 1 Fax: 360.379.4451 Email: dcd dko.iefferson.wa.us SquareONE Resource Center I Building Permits & Inspections I Development Review I Long Range Planning MEMORANDUM TO: Tami Pokorny, Jefferson County Environmental Health FROM: Joel Peterson, Associate Planner DATE: September 11, 2017 SUBJECT: Recommendations for Scope Change, 2014 Conservation Futures Project Regarding the proposed scope change in the 2014 Conservation Futures acquisition plan from the Jenks parcel 802111001, to the Barry parcel 802021005, since the Jenks parcel has been sold, the Department of Community Development (DCD) provides the following findings and recommendation. Findings: The proposed acquisition of Parcel 802021005 does not reduce the County's capacity to accommodate future planned growth. Jefferson County would retain enough developable land to accommodate the housing and employment growth that it is expected to receive. 2. The proposal is consistent with the goals and policies of the Jefferson County Comprehensive Plan for the preservation and enhancement of open space. The Jefferson County Comprehensive Plan identifies goals and policies for the preservation and enhancement of open space as follows: • Open Space Goal OSG 1.0 guides Jefferson County to preserve and enhance existing open space lands. Open Space Policy OSP 1.5 encourages the pursuit of public acquisition of potential parks, critical wildlife areas and other open space lands by utilizing a variety of funding mechanisms. • Natural Resources Goal NRG 1.0 guides Jefferson County to encourage the conservation of resource lands and the long-term sustainable use of natural resource-based economic activities throughout Jefferson County. Natural Resources Policy NRP 1.7 guides us to consider incentive programs to support resource-based economic activities in rural areas. NRP 2.4 states, "Protect the environment from cumulative adverse impacts resulting from resource management practices." • Natural Resources Goal NRG 10.0 guides Jefferson County to conserve and protect the agricultural land base and its associated lifestyle. Natural Resource Policy NRP 10.3 supports the conservation of agricultural land through tax incentive programs, the purchase or transfer of development rights and other methods developed in cooperation with agricultural landowners and managers. NRP 10.9 encourages the preservation of family owned farms by discouraging the conversion of these lands to other uses. 3. The proposed parcel is not in an Urban Growth Area. 4. The County has a surplus of vacant, developable land which can accommodate the projected housing and employment growth over the next twenty years (2017-2037). To: Tami Pokorny From: Joel Peterson 9/11/2017 Page 2 Comparison: Jenks Property with Substitution of Barry Property Parcel Name Zoning Approximate Potential # of numbers acreage* Developable parcels 802111001 Jenks Rural Residential RR 1:5 27.58 5 802021005 IBarry IRural Residential IRR 1:5 22.26 14 Recommendation: The above findings demonstrate that the proposal will not impact Jefferson County's ability to retain enough developable land to accommodate the housing and employment growth that it is expected to receive. The revision of purchasing the Barry property would remove one fewer potential developable parcels, and the background information provided by Jefferson Land Trust states that the parcel has a higher conservation value than the one originally identified. DCD recommends proceeding with the proposed revision in scope. 2 t.O"d JE asi Ew�y at7 •w II�r. L'1 �w bra! •w ■wFn� to �IAIa�l� MI�wrCwa nuaw+�� sip: Trnn~W Zanmg County Zawng, ShofrlM Fooks" Mannas and Bu1kM9a DasEata sh" FCOM Typ iM Sha1l M DampFti6m,a DRD Rawer tw Ss9 E Dana Aenal'a uses Toon, 26t5 Aanal Phuam 2011 AmW PAdoa 2014 Amnal Phmn 2449 Amn* Phntlnt ZIli95 A tW Phomam To: Tami Pokorny From: Joel Peterson 9/11/2017 Page 2 Public Hea Regular Agenda 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org October 10, 2017 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Tami Pokorny, Environmental Public Health Specialist II DATE: October 16, 2017 SUBJECT: Agenda Request: Public Hearing and Possible Decision Regarding a Change of Scope for the 2014 Snow Creek Watershed Acquisitions Conservation Futures Project. STATEMENT OF ISSUE: On October 2, 2017, the BoCC approved a Public Hearing Notice to take comments regarding a proposed change to the Scope of Work for the Snow Creek Watershed Acquisitions Project. The Notice was published on October 4 and October 11, 2017 in the Port Townsend & Jefferson County Leader and a hearing tentatively scheduled for Monday, October 16, 2017 at 11:00 a.m. A representative of the Conservation Futures Citizen Oversight Committee, Lorna Smith, would also like the opportunity to share the committee's recommendations. After the hearing, the BoCC may decide whether or not to approve the request. ANALYSIS/STRATEGIC GOALS: Jefferson Land Trust, sponsor of the Snow Creek Watershed Acquisitions (2014) project, requests a parcel substitution (APN 802021005 for one of the original project properties, APN 802111001). The project is currently the subject of a Project Agreement signed July 20, 2015. The original parcel is no longer available for purchase and the "new" parcel is of similar location, size and habitat characteristics. No additional conservation futures funds are being requested. A special meeting of the CF Committee took place on August 10, 2017 to consider the Land Trust's request, and an absolute majority of the CF Committee voted to approve it. This briefing packet contains: • Snow Creek Watershed Acquisitions project application submitted in 2014 • Letter requesting the parcel substitution from Jefferson Land Trust • Letter from Mary Biskup, Chair of the Conservation Futures Citizen Oversight Committee. • Finding from Joel Peterson, Jefferson County Department of Community Development, regarding the possible change. Chapter 449, Laws of 2005, requires that when a local government uses its CFF to purchase an interest in land, it must consider and analyze whether project would reduce capacity to accommodate planned growth. Community Health Environmental Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 • Draft supplemental resolution to approve the parcel substitution. If the change in scope is approved, an amendment to the project agreement between Jefferson Land Trust and the County will be developed by Environmental Public Health and submitted to the BoCC for approval. FISCAL LWACT: The explicit purpose of the Conservation Futures Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this change in project scope. Remaining funds available to the Snow Creek Watershed Acquisitions equal $25,924. No other CF projects are anticipated to close during the remainder of 2017. Pending projects for 2018 and beyond include: Bishop Dairy Preservation: $56,225 Resolution No. 20-15 Big Quilcene River - Moon Valley Reach: $5,000 Resolution No. 28-16 Tarboo Creek, Farm, and Forest: $97,100 Resolution No. 30-16 Iglitzin Farm: $110,000 Resolution No. 26-17 Serendipity Farm: $106,600 Resolution No. 24-17 Snow Creek Uncas Preserve Taylor: $13,434 Resolution No. 25-17 RECOMMENDATION: 1) Review the request for a scope change and related materials. 2) Hold a public hearing on October 16, 2017, at 11:00 AM. Consider the written and oral testimony from the CF Committee representative and hearing and decide whether or not to adopt the supplemental resolution (with or without revisions). REVIEWED BY: Philip Community Health Developmental Disabilities 360-385-9400 360-385-9401 (f) Admimsra or 011�-�11 "�;' Date Always working for a safer and healthier community Environmental Health Water Quality 360-385-9444 (f) 360-379-4487