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HomeMy WebLinkAbout048 18 117 tn tit8' STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the } Marrowstone Mize project as Authorized by and in } Accordance with Jefferson County Code } RESOLUTION NO. 4 8 18 Section 3.08.030(7) to Provide a System of Public } Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2018 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, the Jefferson Land Trust, as project sponsor, requests funding towards the acquisition of a conservation easement on nine parcels of land in Sec. 29 T. 30N, R. 1E with Assessor's Parcel Numbers 021204012, 021291001, 021291035, 953700409, 975901102, 975901101, 975900801, 975900802, and 975900803; and WHEREAS, the County retains enough developable land to accommodate the 2018 Marrowstone Mize project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: 1. Jefferson County hereby dedicates up to $45,000 in conservation futures funds in the 2018 funding cycle for acquisition expenses contingent on a matching contribution of at least eighty percent(80%) of the total project cost. Resolution No. 48-1 Bre: Dedication of Conservation Futures Funds to the Marrowstone Mize project 3. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. Sr APPROVED AND ADOPTED this ''day of Octokr- , 2018 in Port Townsend, Washington. SE0j. ' --,V ,' JEFFERSON COUNTY BOARD • COM) ISSIONERS i ) , 1 = a '' ' i : , r David u Ivan, air s ATT ST-:, •"., '3 I az....... ....,.,.,. Kat Dean, Member 2iaiiaway 60 .ettrilea,v1 Deputy Clerk of the Board Kathleen Kler, Member �V _ Regular Agenda A, 615 Sheridan Street (fin Port Townsend, WA 98368 �/" www.JeffersonCountyPublicHealth.org Public Heat September 25,2018 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Stuart Whitford, Environmental Public Health Director Tami Pokorny,Natural Resources Program Coordinator DATE: October 1,2018 SUBJECT: Agenda Request: Public Hearing and Possible Decision Regarding Applications for Conservation Futures Funding in 2018 STATEMENT OF ISSUE: On September 17th,the BoCC approved a Public Hearing Notice to hold a public hearing on the Conservation Futures Program project applications received in 2018 on October 1,2018 at 10:15 AM. The notice was published in the Port Townsend&Jefferson County Leader on September 19,2018.The Conservation Futures Program(JCC 3.08)requires a duly noticed public hearing to be held as part of the public process of allocating conservation futures funding to worthy projects that protect public open spaces.After the hearing,the BoCC may decide which project(s)to fund by passing resolution(s)to include a factual finding as to whether each project would reduce the county's capacity to accommodate growth. ANALYSIS/STRATEGIC GOALS: The five applications to the Conservation Futures Fund are: 1. Chimacum Forest(Short's Forest), $140,000 towards the fee simple acquisition of two parcels totaling 65 acres of rural residential and rural forest lands with mature,mixed species forest on the east side of Center Valley as a component of a community forest project on Chimacum Ridge. The proposed match of $1,952,000 would include funding from the U.S. Forest Service and U.S.Navy REPI Program as well as private contributions.Jefferson Land Trust is the project sponsor and applicant.Project location: Sec.23 26&27,T. 29N,R. 1W. 2.Dabob Bay Natural Area Addition, $100,000 towards the fee simple acquisition of one parcel of 5.1 acres of rural residential land, including areas of forest,bluff shoreline and beach,for possible inclusion in the Washington Dept. of Natural Resources Dabob Bay Natural Area.The source of the proposed Community Health Environmental Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (1) Always working for a safer and healthier community (f)360-379-4487 match of$223,100 would be a National Coastal Wetland Conservation Grant.Northwest Watershed Institute is the project sponsor and applicant.Project location: Sec. 17, T. 28N,R. 1W. 3. Marrowstone Mize, $45,000 towards the purchase of a conservation easement on 35.2 acres of undeveloped rural residential land in nine parcels, located one mile south of Fort Flagler State Park, as open space for wildlife,future agriculture and compatible recreation.The source of the proposed match is a donation of the property's value by the current landowner.Jefferson Land Trust is the project sponsor. Marrowstone Preserve LLC is the applicant. Project location: Sec. 29, T. 30N,R. 1E. 4.Ruby Ranch Preservation, $60,000 towards the purchase of a conservation easement on approximately sixty acres in two parcels bordering the east fork of Chimacum Creek in Beaver Valley about three miles south of Chimacum for agriculture and wildlife corridors.A matching contribution would be provided by the U.S.Navy REPI Program.Jefferson Land Trust is the project sponsor.Joseph and Val Goularte are the project applicants.Project location: Sec. 25 and 36,T. 29N,R. 1W. 5. Snow Creek Middle Reach Forest Protection, $25,385 towards the fee-simple acquisition of four parcels of rural residential land totaling 8.7 acres located on both sides of Snow Creek near the junction of Highways 101 and 104 for floodplain, mature native forest and fish and wildlife habitat.A RCO Salmon Recovery Funding Board would be the source of match. Jefferson Land Trust is the project sponsor and applicant. Project location: Sec. 2,T.28N,R. 2W. At its May 9,2018 meeting,the Conservation Futures Citizen Oversight Committee voted to recommend all five projects as worthy of funding at the full requested amounts.Due to the limit of available funding,however,they recommend that all of the projects receive the requested amounts with the exception of the Dabob Bay Natural Area Addition,which would not be funded at all. This briefing packet contains: • Five conservation futures project applications and the relevant sponsor information: 1). Chimacum Forest(Short's Forest) 2). Dabob Bay Natural Area Addition 3). Marrowstone Mize 4). Ruby Ranch Preservation 5). Snow Creek Middle Reach Forest Protection 6). Sponsor Information-Jefferson Land Trust 7). Sponsor Information—Northwest Watershed Institute • Conservation Futures Citizen Oversight Committee recommendations(delivered on June 25, 2018) • Map of conservation futures projects 2003-2017 • Matrix of conservation futures applications 2003-2017 • Letter from Joel Peterson,Jefferson County Department of Community Development associate planner regarding the five projects,all of which are located in the County. • Draft resolutions consistent with the recommendations of the CF Citizen Oversight Committee. The purpose of the CF Program is to address the"general and increasing need to provide a system of public open spaces...for the health,welfare,benefit and safety of the residents of Jefferson County,"and to maintain"Jefferson County as a desirable place to live,visit and locate businesses."Conservation futures tax levy collections,authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing open space policies and objectives of the Jefferson County 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 Comprehensive Plan.The goal of the program is to preserve and protect the county's open space resources from development, and from being"negatively and permanently affected." On January 3, 2006,the BOCC approved Ordinance No. 01-0103-06 in response to Chapter 449 of that year which allowed up to 15%of the conservation future levy monies raised in the preceding year to be used for operations and maintenance needs.Fifteen percent of the revenue for in 2017($239,647) is $35,947.No requests for operations and maintenance funding were received in this funding cycle. Chapter 449 also states that local governments must consider and develop findings on whether or not new CF projects would reduce the County's capacity to accommodate planned growth. Grant agreements for approved projects between Jefferson Land Trust and the county will be developed by Environmental Public Health and submitted to the BoCC for approval. FISCAL IMPACT: The explicit purpose of the Conservation Futures Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. The five combined projects total $370,385.Up to$275,000 is available for award from the Conservation Futures Fund in this cycle. The four projects recommended for full funding by the CF Committee total$270,385 for acquisition and$0 for reimbursement of 0&M expenses. The following projects are anticipated to close during the remainder of 2018: Big Quilcene River-Moon Valley Reach: $5,000 Resolution No.28-16(portion of project) Pending project approval: Chimacum Forest(Short's Forest) The following previously approved projects are anticipated to close after 2018: Bishop Dairy Preservation: $56,225 Resolution No. 20-15 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 five project proposals brought forth by the Oversight Committee. 2) Hold a public hearing on October 1,2018 at 10:15 AM. Consider the written and oral testimony at the public hearing and adopt any of the enclosed funding resolutions(with or without revisions)for project proposals and funding amounts that the Commissioners may wish to approve. REVIEWED BY: ' li ip Mori&unty Ad finis or Date 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 615 Sheridan Street Ideffeitsov Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Public Health To: Jefferson County Board of Commissioners From: David Wilkinson, Chair Conservation Futures Citizen Oversight Committee Date: June 18, 2018 Subject: Conservation Futures Citizen Oversight Committee— 2018 Funding Round Recommendations As Chair of the Conservation Futures Citizen Oversight Committee (CF Committee), I'm pleased to present our recommendations for the 2018 funding cycle. The CF Committee received five applications for funding this year for a combined total of$370,385 in requests. Conservation Futures Funds available to projects equal $275,000 of which$35,947 may be used to reimburse operations and maintenance expenses. However,no 0&M funds have been requested. The 2018 applications are: 1. Chimacum Forest(Short's Forest), $140,000 towards the fee-simple purchase of 65 acres of residential and forest land south of Chimacum along Center Road located in two parcels. The property contains mature, mixed species second-growth forests and links protected agricultural open space on the valley floor with working forest on Chimacum Ridge, which is part of an effort to establish a community forest. The proposed match of$1,952,000 includes funds from the U.S. Forest Service,Navy REPI Program, private sources and donation of partial value of the property from the seller. Jefferson Land Trust is the project sponsor and applicant. Project location: Sections 23, 26 &27,T25N, R2W. 2. Dabob Bay Natural Area Addition, $100,000 towards the fee-simple acquisition of 5.11 acres of rural residential land including 200 feet of shoreline along Dabob Bay for eventual inclusion in the DNR Dabob Bay Natural Area,which protects rare saltmarsh habitat. The proposed match is $251,600 from a National Coastal Wetland grant.Northwest Watershed Institute is the project sponsor and applicant. Project location: Sec. 17, T28N, RI W. 3. Marrowstone Mize, $45,000 towards the acquisition of a conservation easement on nine parcels of vacant land totaling approximately 35.19 acres located on Marrowstone Island one mile south of Fort Flagler State Park for wildlife habitat,future agriculture and recreation. The proposed match of$180,000 is a partial donation of easement value. The project sponsor is Jefferson Land Trust. Marrowstone Preserve LLC is the project applicant. Project location: Sec.29, T.30,R.1E. 4. Ruby Ranch Preservation, $60,000 towards the acquisition of a conservation easement on two parcels of residential and agricultural lands totaling approximately 60 acres in Beaver Valley located three miles south of Chimacum to protect important agricultural lands and support the local food system. The proposed match is $90,000 from the Navy REPI Program. Jefferson Land Trust is the project sponsor. Joseph and Val Goularte are the project applicants. Project location: Sections 25 &36, T.29N, R.1 W. 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 5. Snow Creek Middle Reach Forest Protection, $25,385 towards the fee-simple acquisition of four parcels of vacant land totaling approximately 8.7 acres of riparian habitat including 720 bank feet of shoreline to help create a continuous open space corridor along Snow Creek. The proposed match is $124,015 from the Recreation and Conservation Office for salmon recovery. Jefferson Land Trust is the project sponsor and applicant. Project location: Sections 25 &36,T.29N,R.1 W. The Committee ranked the projects in the following order: Project Points Awarded/Percentage of Points Available Ruby Ranch Preservation 220/69 Chimacum Forest(Short's Forest) 203/63 Marrowstone Mize 199/62 Snow Creek Middle Reach Forest Protection 199/62 Dabob Bay Natural Area Addition 190/59 All five projects were considered worthy of funding. Due to a shortfall in available funds,the CF Committee recommends by unanimous vote that the top four projects be awarded full funding. Together, these total $270,385,which is $4,615 less than the total amount available. The CF Committee followed the scoring and ranking procedures as described in the 2018 Conservation Futures Manual with one exception.None of this year's submissions met the 70%threshold for funding. This resulted, in part, from an increase in total available points from 306 in 2017 to 321. A motion was made and passed with nine in favor and two abstentions to waive the 70%requirement. Adjustments to the scoring or threshold levels are anticipated in recommendations for approval of the 2019 program materials to mitigate this issue going forward. We feel that these four diverse projects add significantly to the County's open space reserves. Marrowstone Mize is the first proposal for Marrowstone Island and will support open space recreation and agriculture in a quickly developing area. The other three projects make strong local contributions to salmon recovery, sustainable agriculture or timber production. We hope you will concur with our recommendations and approve these four projects for funding at the appropriate time. 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(/ { a o ! \ { } } \ { ( } } } } / K ' § ` j® ® E k' £ W \ 0. 3.. re: k \ 0 / \ !\ « G = = 2 » 0 8 8 k) § E Sr; \ & a ! ! 9 \ \ \ ` ` .a 141 --— | ` k /! § § \ \ / ! 2 # # # \ \ \ 3.0 ; 2 § § _ L e ; 7. e -( 11 vl 2. g 3- { F \ /} (% 4'..7 } !§ .TWk £' J` -I % , § § � 0 i § �. `( �| a a ( a �( I[ k ! k k .z « Kl! m - «« HE 0 - \( gk( g g-\ }\\ �\ ƒ/ A k4�soN coG JEFFERSON COUNTY u DEPARTMENT OF COMMUNITY DEVELOPMENT '' 621 Sheridan Street, Port Townsend,WA 98368 I Web: www.co.jefferson.wa.us/communitydevelopment `�-rsN1N� o-. Tel:360.379.4450 I Fax:360.379.4451 I Email: dcdanco.jefferson.wa.us SquareONE Resource Center I Building Permits & Inspections I Development Review I Long Range Planning TO: Tami Pokorny, Jefferson County Water Quality and Environmental Health FROM: Joel Peterson, Associate Planner DATE: September 11, 2018 RE: 2018 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Project Applications: 1. Chimacum Forest—Acquisition, 65 acres RF-40 & RR1:10 2. Dabob Bay Natural Area Addition—Acquisition, 5.11 acres RR1:5 3. Marrowstone Mise—Conservation Easement, 35.19 acres RR1:10/RR1:5 4. Ruby Ranch Preservation—Easement, ca.60 acres AP-20 5. Snow Cr. Middle Reach Forest Protection—Acquisition, ca 7.5 ac RR1:5 Summary of DCD Findings for 2018 Conservation Futures Program: The Department of Community Development (DCD) reviewed the proposed 2018 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Projects and provides the following findings. When a local government chooses to use Conservation Futures Fund money to purchase an interest in land, it must consider and analyze whether taking land out of the `pool' of land that can be developed leaves enough land subject to development to accommodate allocated housing and employment growth (RCW 84.34.240). From our analysis, we provide two findings to support this requirement and additional findings from the Jefferson County Comprehensive Plan. Methods: Housing Analysis: DCD reviews the estimated number of potential dwelling units that could be forgone by the Conservation Futures actions and the effect this may have on the County's ability to accommodate our projected 20-year population growth (2018-2038); and how the actions may affect the County's ability to provide employment growth in our 20-year planning period. Note that any determination made in this exercise is only an estimate based on zoning and a map review of possible site conditions. Employment Growth Analysis: Impacts on Jefferson County's ability to provide for anticipated employment growth, resulting from the Conservation Futures program actions, were reviewed by observing current employment conditions in the vicinity of the project parcels, the prevalent employment sector in the area, and consideration of any other potential effects resulting from conservation action that may limit or enhance the County's ability to provide for economic development or jobs. Findings: 1. Housing. The proposed acquisitions and easements of the 2018 Conservation Futures program would extinguish development rights or purchasing land for conservation purposes which would remove approximately 18 theoretical single family dwelling units, and approximately 18 theoretical accessory dwelling units (ADUs) that would be allowed with those residences. Jefferson County has a documented surplus of vacant and underdeveloped parcels which can accommodate the land needs of the projected population during the 20-year planning period (2018-2038 Draft Comprehensive Plan Land Use Element). The proposed conservation actions do not reduce the County's capacity to accommodate future planned growth. 2. Employment Growth. No commercial areas are included in the protected properties. State Employment Security Dept. data do not show employment sectors in the proposed conservation areas which could be precluded, for example Utilities, Manufacturing, Government, Professional & Technical Services (ESD Jefferson County Data Tables, 2016). None of the properties are within or near a rural commercial area or urban growth area. Employment or business development that could be forgone by loss of residential dwelling units would include home business or cottage industry opportunities. There has been no identified reduction in rural employment due to a shortage of residential parcels to support home business or cottage industry. Employment in the project areas would likely consist of home businesses, cottage industries or in the natural resources sectors. Limited loss of timber harvest on residential parcels, inholding forest, or rural forest designated parcels would not make up a significant loss of commercial forestry in Jefferson County. Natural resource conservation has been identified as playing a role in economic development, contributing to a draw of economic development interests to the area due quality of life and a healthy environment. The Comprehensive Plan (2004) also recognizes the benefit of a healthy environment for economic needs, such as expressed in Environment Goal ENG 3.0: "...safe water supply as a critical necessity for [economic needs]." In fact, 2018 Conservation Futures projects that include preservation of agriculture (i.e. Ruby Ranch) are intended to encourage rural economic development. Additional Findings from the Jefferson County Comprehensive Plan: 3. The action 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. OSP 1.6 supports efforts by public and non-profit organizations to secure property for open space, wildlife habitat corridors and a County-wide trail system. 2 • 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 "[p]rotect 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. • Environment Goal ENG 3.0 recognizes environmental protection as one important aspect of our economic strategy. 4. The Dabob Bay project, which includes area in Shoreline Jurisdiction, the action is consistent with Shoreline Master Program (SMP) Goals: • SMP conservation goals address the protection of natural resources, scenic vistas, aesthetics, and vital shoreline areas for fisheries and wildlife for the benefit of present and future generations. JCC 18.25.120. • SMP restoration and enhancement goals address reestablishment, rehabilitation and improvement of impaired shoreline ecological functions, values and/or processes. JCC 18.25.170. 5. None of the proposals include property in an Urban Growth Area or Rural Commercial area. Attachment: Parcel analysis of 2018 Conservation Futures projects (2018 Evaluation Tables_template.xlsx) [end] 3 p c Of a A __ o S '3 0 no O N O z w Cr m .. m m ITq VI 03 qN Z O < Z 3 C 1 < D - a D m r > -i 3 < c m r c m mO H m Z a a N ' n D � C a -1 FS su d c C m n nmN NJ o_ N N O O �(/r 00 7 0) n m N O . �D 11-'001'8 N�o -- z z is, w wOU f O N PO p N A 0Oj N O -r, x,N A. .. 2. OD ° O 030 n o n oZ n oZ 3 TD. 0 w 0) For 3 m d m y to L A ? N — O 33 A c r cVI C) T rl o MI n 3 0 O N ; F-' O m F+ n T ! a • H DT S MC. > ° ca< c2• m5i.' 2. O N O N N to Oa n # n' dn1 6 w ° d p a m R D 0 F D M nr- F fD m O - m m o - m m 3 00 ,Z 3n 00 ,� IN I-. . n 00 C 9 m m ttlC m r6. \ O Z \ p Z C Of • o z c "• '" vim ^ N .a ami c P E c _ m c d A F F tn 0 5 a, ° m 3 v $ 3 m O1 0 " D s o m 3 0 c4 3 c * m a Z H n m C m C N Q �, vi N Q N A N N m '^ X C m 7 p_ ,''n. 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V, 7 ,Z 7' a 5 DJ O w O7a in < 3 0 ry w O n w • .r r , i INTERNAL REVENUE SERVICE ' DEPARTMENT OF THE TREASURY y ' DISTRICT DIRECTOR 2 CUPANIA CIRCLE-- MONTEREY PARK, CA 91755-7406 Employer Identification Number: • Date: UAy fl 3 3994 91-1465078 Case Number: 954109002 • JEFFERSON LAND TRUST Contact Person: • C/O DOUG MASON PRES TYRONE THOMAS Po BOX 1610 Contact Telephone Number: PORT TOWNSEND, WA 98368-0109 (213) 894-2289 Our Letter Dated: May 08, 1990 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section -509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown. above. Sincerely yours, ►Ori Richard R. Oroecosco District Director Letter 1050 (DO/CG) JEFFERSON LAND TRUST 2018 OPERATING BUDGET INCOME 2018 Restricted Capital Funds,Grant Funds from Gov'l and $196,000 Private Sources Operations Income Annual Contributions $293,000 Special Events $162,000 Fee for Services $151,000 Investment Income $8,000 Other/Release from Restriction $68,000 TOTAL INCOME $878,000 EXPENSE Program Expenses Advertising, Facility Rental, Food,Travel, $55,000 Postage,Supplies, Printing Acquisition and Conveyance Acquisition and closing $1,100 expenses,due diligence expenses, recording fees Land/Easement Holding Expenses $26,000 Professional Services Appraisals,environmental $129,000 assessments, legal, surveys,financial management, land consulting Administrative Expenses Accounting,equipment, postage, $107,000 shipping, rent,communications, utilities Training $9,000 Payroll $548,000 TOTAL EXPENSE $875,000 NET INCOME $3, 1 f . 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N 3 H mm m d114. 1 1 N n', n 0 a) DOa iOn G 07 Cu o ▪ o 4 o O 1 vi• 5 O DOl cu m h 3 0 m 3 rD S S N 0.1 -y, _S Q 10 N i v S-, O X N 5 O -n 3 S Dl a OU _OC r" -t m O _� 2 1- S K _ O v).`< m nCZ m d m 20 a ° rp ,nm , a g Ql j c- V d m a, N me a 1/4, J JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Financial Statements For the Years Ended December 31, 2016 and 2015 Aiken & Sanders, Inc PS CERTIFIED PUBLIC ACCOUNTANTS & MANAGEMENT CONSULTANTS TABLE OF CONTENTS Independent Auditor's Report 1 Consolidated Financial Statements: Consolidated Statement of Financial Position 5 Consolidated Statement of Activities and Changes in Net Assets-2016 7 Consolidated Statement of Activities and Changes in Net Assets-2015 8 Consolidated Statement of Functional Expenses-2016 9 Consolidated Statement of Functional Expenses-2015 11 Consolidated Statement of Cash Flows 9 Notes to the Consolidated Financial Statements 11 343 West Wishkah Street,Aberdeen,Washington 98520-6130 CERTIFIED PUBLIC ACCOUNTANTS Telephone(360)533-3370 Fax(360)532-7123 &MANAGEMENT CONSULTANTS Aiken& anders, Inc PS Independent Auditor's Report To the Board of Directors Jefferson Land Trust& Subsidiary Port Townsend,WA Report on the Financial Statements We have audited the accompanying consolidated financial statements of Jefferson Land Trust and Subsidiary (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31, 2016 and 2015, and the related consolidated statements of activities and changes in net assets, functional expenses, and cash flows for the years then ended, and the related notes to the consolidated 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. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits 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 auditor's 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. 1 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the JLT as of December 31, 2016 and 2015, and changes in net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. r Aiken&Sanders,Inc.,PS Certified Public Accountants &Management Consultants June 10,2017 2 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2016 and December 31, 2015 Assets 2016 2015 Current Assets: Cash and cash equivalents $ 461,603 $ 477,335 Accounts receivable ,323 33 ,645 49 Current pledges receivable ,322 82 ,724 97 Note receivable-current portion ,380 4 ,167 4 Prepaid expenses ,610 12 5,306 Total Current Assets 594,238 634,177 Land and Conservation Easements: Habitat land ,533,608 2 ,490,598 2 Working land ,728 97 ,728 97 Open space land 332,761 332,771 Conservation easements 57 54 Total Land and Conservation Easements ,964,154 2 ,921,151 2 Fixed Assets: Furniture, equipment, and improvements ,469 82 ,530 68 Less: Accumulated depreciation (35,801 ) (28,314) Fixed assets, net ,668 46 40,216 Other Assets: Long term pledges receivable 123,122 213,374 Long term note receivable ,497 58 ,877 62 Land hold fee-net ,331 58 ,000 75 Investments 754,875 553,243 Total Other Assets 994,825 904,494 Total Assets ,599,885$ 4 $ 4,500,038 The accompanying notes are an integral part of these financial statements 3 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2016 and December 31, 2015 Liabilities & Net Assets 2016 2015 Current Liabilities: Accounts payable ,046$ 6 ,589$ 17 Accrued liabilities and deferred revenue ,490 48 42,198 Total Current Liabilities Long- ,536 54 59,787 Term Liabilities: Total Long-Term Liabilities - - Net Assets: Unrestricted Undesignated 398,270 339,559 Board designated 3,012,737 2,926,151 3,411,007 3,265,710 Temporarily restricted ,072,441 1 ,121,942 1 Permanently restricted ,901 61 52,599 Total Net Assets ,545,349 4 4,440,251 Total Liabilities&Net Assets ,599,885$ 4 $ 4,500,038 The accompanying notes are an integral part of these financial statements 4 / ? 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CJi O O O ,•0 -4 LA N w ....l -4 N LA N Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2016 and December 31, 2015 2016 2015 Cash flows from operating activities: Cash received from grantors, donors and customers ,086,139$ 2 ,019,107$ 2 Cash paid to suppliers and employees ,925,450) (1 (845,159) Cash received from interest ,171 19 10,575 Net cash provided(used) by operating activities 179,860 1,184,523 Cash flows from investing activities: Cash paid for equipment and improvements (13,938) (40,244) Cash paid for investments (283,657) (450,832) Cash received from investments 137,838 273,100 Proceeds from notes receivable ,167 4 ,964 3 Cash paid for land (65,002) ,017,800) (1 Cash paid for land hold fee - (100,000) Cash received from refund of land hold fee ,000 25 Net cash provided(used) by investing activities (195,592) (1,331,812) Cash flows from financing activities: Net cash provided (used) by financing activities - - Net increase (decrease) in cash & cash equivalents (15,732) (147,289) Cash& cash equivalents at beginning of year 477,335 624,624 Cash & cash equivalents at end of year $ 461,603 $ 477,335 The accompanying notes are an integral part of these financial statements 9 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2016 and December 31, 2015 2016 2015 Reconciliation of increase (decrease) in net assets to net cash provided (used) by operating activities: Increase (decrease) in net assets: $ 105,098 ,176,578$ 1 Adjustments: Depreciation and amortization ,160 7 ,160 7 Land hold fee amortization(adjustment) ,331) (8 ,000 25 Realized and unrealized losses (gains) on investments (33,488) ,540 2 Donated land - (158,020) Changes in assets and liabilities: (Increase) decrease in accounts receivable ,322 16 (14,471) (Increase) decrease in pledges receivable 105,654 140,025 (Increase) decrease in prepaid expense ,304) (7 (751) Increase (decrease) in accounts payable (11,543) (662) Increase (decrease) in accrued expenses and deferred revenue ,292 6 7,124 Net cash provided (used) by operating activities $ 179,860 $ 1,184,523 The accompanying notes are an integral part of these financial statements 10 A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization-- Jefferson Land Trust(The Land Trust)is a Washington not-for-profit corporation formed on April 7, 1989. The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington State. 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-- Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 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, 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 for which donor-imposed restrictions were temporary and have expired or been fulfilled. Temporarily Restricted Net Assets-Include all net assets subject to donor imposed restrictions that will be met by actions of JLT and/or 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 and/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 restrictions that specify how the assets are to be used and gifts of cash and 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. 11 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 Property and Fixed Assets-- Improvements, 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 expense 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. 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 two 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. One easement valued at $68,000 in total was donated to JLT during the year ending December 31, 2016. Accordingly, $68,000 of contribution revenue and $67,999 of related write down expense have been reported on the consolidated statement of activities for the year end December 31, 2016. Estimates-- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America(U.S. 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. Accordingly, actual results could differ from those estimates. Expense Allocation-- The costs of providing various programs and other activities have been summarized on a functional basis in the consolidated statement of functional expense. Accordingly, certain costs have been allocated among the programs and supporting services in line with benefits received. Cash and Cash Equivalents-- For reporting purposes,JLT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash and cash equivalents. 12 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 Concentrations-- JLT maintains its cash in bank deposit accounts with three financial institutions. JLT's cash balances may, at times, exceed federally insured limits. At December 31, 2016, two donor's pledges represented approximately 55% of pledges receivable, and the total of all pledges from board members represented approximately 56%of pledges receivable. At December 31,2015,two donor's pledge represented approximately 55%of pledges receivable,and the total of all pledges from board members represented approximately 58%of pledges receivable. Investments-- Investments in marketable securities with readily determinable fair values are valued at their fair values in the consolidated statement of financial position. Certificates of deposit are carried at cost plus accrued interest in the consolidated statement of financial position.Unrealized gains and losses are included in the change in net assts. 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. 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 IRC Section 170(b)(I)(A)(vi). During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. Subsequent Events-- JLT has evaluated subsequent events through June 10, 2017, the date on which the consolidated financial statements were available to be issued. 13 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 B. UNRESTRICTED NET ASSETS: Unrestricted net assets consisted of the following at December 31,2016 and 2015: 2016 2015 Designated: Quimper Wildlife Corridor $ 415,869 $ 417,869 Chimacum Creek 264,409 284,409 Duckabush Riparian Forest 492,800 492,800 Donovan Creek 270,000 205,000 Duckabush Wetlands&Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 100,000 100,000 Chimacum Commons ,850 90 ,850 90 Snow Creek Estuary ,000 86 ,000 86 Silver Reach 125,000 125,000 Gateway ,000 85 ,000 85 Kilham Corner ,930 38 ,930 38 Stewardship Fund 4 8,582 4,999 Conservation easements 57 54 Total Designated ,012,737 3 ,926,151 2 14 • Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 Undesignated 398,270 339,559 Total Unrestricted Net Assets $ 3,411,007 $ 3,265,710 C. TEMPORARILY RESTRICTED NET ASSETS: JLT's temporarily restricted net assets consisted of the following at December 31,2016 and 2015: 2016 2015 Purpose Restriction: For stewardship of Bullis Forest Preserve $ ,487 81 $ ,410 91 Satterberg Foundation Grant ,881 99 ,026 97 Working Farm Fund - Consulting fees - ,410 4 Anonymous Agricultural Foundation Grant ,736 26 ,153 49 Stewardship funding 576,546 ,730 8 15 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 Cross Foundation ,000 40 Midori Farm Fund ,086 32 Education Outreach Fund ,290 5 ,915 19 Other program restrictions ,972 4 201 10 866,998 Time Restriction: 280,845 Outstanding pledges 205,443 311,097 Total Temporarily Restricted Net Assets $ 1,072,441 $ 591,942 Net assets of$194,602 and $221,727, respectively, were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of$108,519 and $140,025, respectively, were released due to the expiration of time restrictions for the years ended December 31,2016 and 2015. D. PERMANENTLY RESTRICTED NET ASSETS: At December 31, 2016 and 2015, respectively, JLT had $61,901 and $52,599 of permanently restricted net assets in a general endowment fund,the income of which is available to support general operations. E. ENDOWMENTS: The JLT endowment consists of one fund established to support general operations. As required by U.S. GAAP, net asset associated with endowment funds are classified and reported based on the existence or absence of donorimposed restrictions. Nature of Endowments and Interpretation of Relevant Laws- JLT's Board of Directors has reviewed the Washington State Prudent Management of Institutional Funds Act(PMIFA) and, having considered its rights and obligations thereunder, has determined that it is desirable to preserve, on a long-term basis, 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 determination, JLT classifies as permanently restricted nets 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. 16 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 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, (1)the duration and preservation of the various funds, (2)the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of JLT,and(7)JLT's investment policies. Endowment net assets, all permanently restricted, totaled $61,901 and $52,599, respectively, at December 31, 2016 and 2015. Changes in endowment net assets for the year ended December 31, 2016 are as follows: Temporarily Permanently Restricted Restricted Total Endowment Net Assets 1/1/2016 $ - $,599 52 $ ,599 52 Contributions - ,920 7 ,920 7 Investment Income - ,133 1 ,133 1 Net Appreciation(Depreciation) - 249 249 Endowment Net Assets 12/31/16 $ - $ 61,901 $ 61,901 Changes in endowment net assets for the year ended December 31, 2015 are as follows: Temporarily Permanently Restricted Restricted Total Endowment Net Assets 1/1/2015 $ - $ 44,479 $ 44,479 Contributions - ,660 7 ,660 7 Investment Income - 957 957 Net Appreciation(Depreciation) - (497) (497) 17 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 $ 52,599 52,599 Endowment Net Assets 12/31/15 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 U.S. GAAP, deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies as of December 31,2016 or 2015. 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. Strategies Employed for Achieving Objectives- To satisfy its long-term rate-of-return objective, JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond funds/ETF's,equity mutual funds, equity ETF's,and unconstrained bond funds. Spending Policy and How the Investment Objectives Relate to the Spending Policy- JLT's spending policy intends that no distributions shall 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 which ended in December of 2014, 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. F. 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. Historically, bad debts have been immaterial. During 2016 and 2015, there were bad debts of $0 and $0, respectively.As of December 31,2016, management estimated that all accounts receivable were collectible. JLT had no material amounts past due at December 31,2016. 18 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 G. PLEDGES RECEIVABLE: JLT received promises to give from a number of donors in years prior to 2016. JLT has provided an allowance for uncollectible amounts based on its assessment of the current status of individual pledges and has discounted pledges to current value using a rate of .6%. Pledges receivable at December 31, 2016 are to be received as follows: Less than one year $ ,569 82 Two to five years 126,915 Thereafter ,600 6 216,084 Less discount to present value (503) Less allowance for uncollectible (10,138) $ 205,443 JLT has implemented a new development strategy that will result in a significant reduction of pledge receivables over the next 5 years. This planned reduction is in response to several changes in JLT's constituency — an increase in foundation grants, an increase in an operating reserve that will provide emergency working cash equivalent to 6 months of operational expenses, and a desire by our donors to not request commitments that are relatively inflexible. H. NOTE RECEIVABLE: On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. A promissory noted was received 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%. Future expected amounts to be received at December 31,2016 are as follows: 19 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 2017 $ 4 ,380 2018 4,604 2019 4,840 2020 5 ,087 2021 5 ,348 Thereafter ,618 38 $ 62,877 I. FURNITURE,EQUIPMENT,AND IMPROVEMENTS: Furniture,Equipment, and Improvements consist of the following at December 31,2016 and 2015: 2016 2015 Furniture&Equipment,and Software $ ,617 52 $ ,678 38 Accumulated Depreciation and Amortization (29,831) (25,329) 22,786 1 3,349 Leasehold Improvements ,852 29 ,852 29 Accumulated Depreciation ,970) (5 ,985) 0_ 23,882 2 6,867 Fixed Assets-Net $ 46,668 $ 40,216 Accumulated Depreciation and Amortization was $35,801 and $28,314 at December 31, 2016 and 2015, respectively. J. LAND AND CONSERVATION EASEMENTS: Land and conservation easements at December 31 are summarized as follows: 2016 2015 Quimper Wildlife Corridor $ 418,867 $ 20 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 417,869 Chimacum Creek 261,410 284,410 Duckabush Riparian Forest 492,800 492,800 Donovan Creek 205,000 205,000 Duckabush Wetlands&Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 165,000 100,000 Chimacum Commons ,850 90 ,850 90 Snow Creek Estuary ,000 86 ,000 86 Silver Reach 125,000 125,000 Gateway ,000 85 ,000 85 Kilham Corner ,930 38 ,930 38 Conservation easements 57 54 Total Unrestricted Net Assets $ 2,964,154 $ 2,921,151 K. ECONOMIC DEPENDENCY: For 2016 and 2015,grant funding was primarily provided by the State of Washington Recreation and Conservation Office and Jefferson County. A reduction in this level of support, if it were to occur, could have a significant impact on JLT's operations. L. CONTINGENCIES: Amounts received or receivable from federal and state government agencies are subject to audit and potential adjustment by the contracting agencies. Any disallowed claims, including amounts already collected, would 21 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 become a liability of JLT if so determined in the future. It is management's belief that no material amounts received or receivable will be required to be returned in the future. M. RETIREMENT PLAN: JLT maintains a Simplified Employee Pension—Individual Retirement Accounts Contribution Benefit Plan ("the Plan"). Eligible employees may join the Plan after one year of service. There were employer contributions of $8,514 and$0,respectively, for 2016 or 2015. N. LEASE AGREEMENTS: On June 21, 2012, JLT entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease expired in June of 2014 and is now on a month to month basis. The agreement calls for monthly payments of$1,563 plus utilities. JLT also rents a storage unit on a month to month basis. Rent expense totaled$22,587 and$23,963 for the years ended December 31, 2016 and 2015,respectively. O. SUBSEQUENT EVENTS: No events have occurred through June 10, 2017, which is the date the financial statements were available to be issued based on JLT facts and circumstances, for events requiring recording or disclosure in the financial statements for the year ended December 31,2016. P. INCOME TAX&UNCERTAIN TAX POSITIONS: Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) are tax exempt non-profit organizations under the Internal Revenue Code Section 501(c)(3) and are not classified as a private foundation. Accordingly, the financial statements do not include any provision for income taxes. JLT files income tax returns in the U.S. federal jurisdiction. The Trust is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2013. Currently, there is no examination or pending examination with the Internal Revenue Service(IRS)or any other state or federal taxing authorities. JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1, 2009. As of December 31, 2016, there are no tax positions for which the deductibility is certain but for which there is uncertainty regarding the timing of such deductibility. Q. INVESTMENTS AND FAIR VALUE MEASUREMENTS: JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 Measurements)and the lowest priority to unobservable inputs(Level 3 Measurements). The three levels of the fair value hierarchy under ASC 958 are described as follows: 22 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Trust has the ability to access. Level 2: Inputs to valuation methodology include: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets or liabilities in inactive markets. Inputs other than quoted prices that are observable for the asset or liability. Inputs that are principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 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 31,2016. Stocks: Valued at quoted market prices in active markets for identical assets. Mutual Funds: Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by the JLT at year end. Certificates of Deposit:Valued at original investment plus received and accrued interest. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31,2016: Assets at Fair Value as of December 31,2016 _ Level 1 Level 2 Level 3 Total Mutual funds $ 608,094 $ -$ -$ 608,094 23 • Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 Total Assets at Fair Value: $ 608,094 $ -$ -$ 608,094 Certificates of deposit,held at cost plus accrued interest 146,781 7 Total Investments $ 54,875 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31,2015: Assets at Fair Value as of December 31,2015 Level 1 Level 2 Level 3 Total Stocks $ - $ -$ -$ - Mutual funds 376,376 - - 376,376 Total Assets at Fair Value: $ 376,376 $ -$ -$ 376,376 Certificates of deposit,held at cost plus accrued interest 176,867 Total Investments $ 5 53,243 Investment return for the years ended December 31 consisted of the following: 2016 2015 Interest income $ ,171 19 $ ,613 10 Realized/unrealized(loss) gain ,488 33 ,540) (2 Total $ .659 52 $ ,073 8 24 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31,2016 and 2015 R. LAND PURCHASE AND HOLD FEE: JLT signed a purchase and sale agreement with a third party during 2015 for the purchase of approximately 850 acres of forest land in Jefferson County. The terms of the agreement, dated March 17, 2015, required JLT to purchase the property for an amount not to exceed the appraised fair market value of the property. The terms of the agreement required the payment of a$100,000 non-refundable hold fee to the third party to allow time for the purchase process to be completed and for JLT to raise the necessary funding to complete the purchase. The hold fee agreement was to expire on March 17, 2019. During 2016, JLT signed an amended agreement that resulted in the refund of$25,000 of the $100,000 hold fee and extended the agreement to nine year from the original five years,now expiring in 2023. JLT adjusted amortization of the hold fee to the new life of the agreement which resulted in an increase to the hold fee asset of$8,331 in 2016.Amortization expense of$25,000 was recognized during 2015. 25 Jefferson Land Trust RESOLUTION March 26,2018 WHEREAS,Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures Funding application, and Conservation Futures Funding Application process requires that Jefferson Land Trust prioritize its projects,and WHEREAS,the Chimacum Forest is indicated as priority forest and habitat land in several local and regional plans, significant project funding has been secured from the USFS and US Navy,and the landowner is eager to complete the project,and WHEREAS,approximately 65 acres of prime forestland will be protected for sustainable timber harvest,water quality,public recreational and educational use and wildlife habitat,and WHEREAS,Jefferson Land Trust has been working since 2006 in partnership with Jefferson LandWorks Collaborative whose mission is to keep the farms and forests of Jefferson County,Washington,working, productive and profitable, and WHEREAS,this important community asset will require stewardship in perpetuity,to include annual monitoring,maintenance,and management,AND WHEREAS,Jefferson Land Trust has been working with Marrowstone community members since the late 1990's to protect Marrowstone Island's forest,wetland,agricultural and open space values, and, WHEREAS,approximately 35 acres of open space,wetland,prime soils and forest will be protected for habitat and future agricultural uses through a conservation easement with Jefferson Land Trust,and WHEREAS,the landowner is a willing seller and is matching the Conservation Futures request with a significant bargain sale of the easement, and WHEREAS,this important community asset will require stewardship in perpetuity,to include annual monitoring, maintenance, and management,AND WHEREAS,Jefferson land Trust has been working since 2006 in partnership with Jefferson LandWorks Collaborative whose mission is to keep the farms and forests of Jefferson County,Washington,working, productive and profitable,and WHEREAS,the Ruby Ranch is indicated as priority agricultural and habitat land in several local and regional plans, and the landowner is eager to complete the project,and we have potential matching funds from the US Navy,and WHEREAS, approximately 60 acres of prime agricultural land on Ruby Ranch will be protected for riparian habitat values of Chimacum Creek and the prime agricultural soils with an agricultural conservation easement,and WHEREAS,this important community asset will require stewardship in perpetuity,to include annual monitoring, maintenance,and management,AND Jefferson Land Trust Page 1 of 2 Akt 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—8-acre Hopkins parcel has been identified as such, and we have the potential for Salmon Recovery Funding Board matching funds for the project,AND BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its February 20,2018 Board of Directors meeting to sponsor several applications to the Jefferson County Conservation Futures Program. The Board agreed that Chimacum Forest(Short's Forest)is the highest project priority for 2018 Conservation Futures funding for purchase of a 65-acre property located on Center Road due to the mature forest,recreational, educational and economic values,landowner willingness, available match and proximity to the Chimacum Ridge Forest. The Board agreed that the second highest priority is funding for the acquisition of a conservation easement on the—36 acre Marrowstone Preserve property on Marrowstone Island due to the open space, aquifer recharge,wetland and agricultural conservation values, availability of match and landowner willingness. The Board agreed the third highest priority is funding for the acquisition of a conservation easement on the—60 acre Ruby Ranch property located in Beaver Valley due to the prime agricultural soils, salmon habitat and other wildlife corridor habitat provided by the east fork of Chimacum Creek;open space views provide from Beaver Valley Rd.,a designated Washington State Scenic Byway;landowner willingness and potential match from the US Navy REPI program.The Board also agreed that the fee interest purchase of the Snow Creek,mid-reach—8-acre Hopkins property is a high priority,due to the valuable Snow Creek habitat,mature forest,strategic location between Land Trust Snow Creek preserves,and potential for restoration of the riparian and floodplain habitat. The Snow Creek project is ranked as the 4th priority due to timing of match funding through the SRFB process, anticipated for December 2018. Signed this 27th day of March,2018. ,7r' if-c) bis Fitch,President,Board of Directors Jefferson Land Trust Jefferson Land Trust Page 2 of 2 615 Sheridan Street def f Port Townsend,WA 98368 Public Healt Ph:360 385 9400 Fx:360.385.9401 PURCHASE ORDER Date: 9/24/18 P.O.# 18-366 Fund: 128000010 BARS# 55310.42.0010 Program Code: NAT615 Requestor Tim Weissman Supplier Address: Mail Plus 1 postage for mailing water samples Telephone Product Ref# Product Description Qty Price Total Postage to mail water mail samples 1 31.41 31.41 Total $ 31.41 Requested by: Tim Weissman Print Name Signature Date Supervisor Mike Dawson Approval: Print Name Signature Date Finance Veronica Shaw Approval: Print Name Signature Date = Approval for Initial Revolving Fund Initial Date Rcd: Orig nv Initialed by Program Lead? Yes/No Attach Inv or Packing Slip? Northwest Watershed Institute BOARD OF DIRECTORS 2018 Board Members and Affiliation and Term on the Board of Directors Officers Peter Bahls President,Vice-President, Peter Bahls is currently full time Executive Director and Treasurer Conservation Biologist for Northwest Watershed Institute. 3407 Eddy Street Term- 2017-2019 Port Townsend,WA 98368 360-385-6786 Gene Jones Board Member Gene Jones is a member of the Port Gamble S'Klallam Tribe and spiritual leader for four Tribes in the Olympic Peninsula region. 5860 NE Totten Road Poulsbo,WA 98370 Term-2017-2019 360-535-3826 Janis Henry Board Member Janis Henry is a retired biotech patent attorney and chemist with over 30 years of experience in the bioinstrumentation and 14445 SE 55th Street biotechnical industry.She is a life long nature enthusiast and Bellevue,WA 98006 embraces adventure travel.Janis lives in Quilcene and Bellevue. Term-2017-2019 Jeanne Koenings Board Member Jeanne Koenings is an Environmental Planner who has recently come out of retirement to work on a land acquisition project for 1619 10th Ave SE the Department of Ecology. Olympia,WA 98501 360-786-8788 Term-2016-2018 Keith Lazelle Board Member Keith Lazelle is an award winning nature photographer who lives on Dabob Bay.His work has been used by many PO Box 192 environmental organizations including Audubon,Hoh River Quilcene,WA 98376 Trust,The Nature Conservancy,and NWI. 360-765-3697 Term-2016-2018 Judith Rubin Secretary Judith Rubin is Stewardship Director and Botanist for Northwest Watershed Institute. 3407 Eddy Street Port Townsend,WA 98368 Term-2016-2018 360-385-5358 Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist,environmental educator,and environmental planner. 1005 Lawrence Street Much of her work has focused on watershed protection,citizen Port Townsend,WA 98368 engagement and water resources. Term-2016-2018 Northwest Watershed Institute Staff Roster 2018 Peter Bahls, Executive Director, Conservation Biologist Judith Rubin, Director of Stewardship and Public Outreach, Botanist Heather Gordon, Project Assistant Karen Robison, Administrative Assistant Suzie Barnes, Bookkeeper Seasonal field crew NWI BUDGET 2017-18 YEAR Ordinary Income/Expense Income Grant Revenue 4005•County/Local Funds 27,000 4010•Federal Funds 200,000 4020•Foundation 10,000 4030•State Funds 40,000 Total Grant Revenue 277,000 RentaULease Income 4150•CREP Van*lease 7,500 4152-Rental Income-Rein Caretaker 6,000 4182•Rental Income-YarrCaretaker 3,000 Total RentaULease Income 16,500 Consulting/Miscellaneous 4210•Consulting Fees 15,000 Total Consulting/Miscellaneous 15,000 Contributions 4310-Restricted 10,000 4320•Unrestricted 15,000 Total Contributed Income 25,000 Total Income 333,500 Gross Profit 333,500 Expense 6030-Automobile Expense 2,000 6040•Bank Service Charges 100 6060-Depreciation Expense 1,500 Insurance 6091 •Auto 2,200 6092-Health Insurance 16,800 6094•HSA Contribution 6,600 6093•Liability Insurance 2,600 Total Insurance 28,200 Payroll Expense Gross wages 6231 •Director 70,000 6232 Stewardship Director 20,000 6233•Project Assistant 2,500 6234 Field Crew 25,000 Total Gross wages 117,500 Payroll Taxes 6240•Medicare 3,525 6241 Social Security 14,100 6243•Workers Comp 2,200 6245•WA State Unemployment 430 Total Payroll Taxes 20,255 Total Payroll Expenses 137,755 6250•Postage and Delivery 250 6260-Printing and Reproduction 500 6271 •Accounting 3,200 Program Expense 6282•Fees 2,000 6283•Project subcontractors 135,000 Total Program Expense 137,000 6290-Rent 8,400 6420-Field supplies 25,000 6440•Office Supplies 700 Total Supplies 34,100 Taxes 6510•Property Taxes 4,000 Telephone/Communications 6650•Mobile phone 950 6610•Intemet Server/Tele-local 2,000 6630•Telephone-Long Distance 500 6640•Website 450 Total Telephone/Communications 3,900 Travel and Ent 6720•Meals 1,500 6730•Room 1,000 Total Travel&Ent 2,500 6810•Gas and Electric 600 Total Expense 320,605 Net Ordinary Income 12,895 Net Income 12,895 INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: wp 24 2006 93-1325820 DLN: 17053259778026 NORTHWEST WATERSHED INSTITUTE Contact Person: 3407 EDDY STREET CLINTON L FORTNER ID# 31163 PORT TOWNSEND, WA 98368-0000 Contact Telephone Number: (877) 829-5500 Public Charity Status: 170 (b) (1) (A) (vi) Dear Applicant: Our letter dated JANUARY 2002, stated you would be exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501 (c) (3) of the Code. Publication 557, Tax-Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll-free number for forms, (800) 829-3676. Information is also available on our Internet Web Site at www.irs.gov. If you have general questions about exempt organizations, please call our toll-free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, (t0:40 (54."4"*".""°.-m; Lois G. erner Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) IRS a-file Signature Authorization Form 8879-EO for an Exempt Organization OMB No.1545-1878 For calendar year 2014,or fiscal year beginning 7/01 ,2014,and ending 6/30 _, 2015 • ► Do not send to the IRS.Keep for your records. 2014 Department of the Treasury Internal Revenue Service 0-Information about Form 8879-E0 and its instructions is at www.irs.gov/form8879eo. Name of exempt organization Employer identification number NORTHWEST WATERSHED INSTITUTE 93-1325820 Name and title of officer PETER BAHLS PRESIDENT Type of Return and Return Information (Whole Dollars Only) Check the box for the return for which you are using this Form 8879-EO and enter the applicable amount, if any, from the return. If you check the box on line la,2a,3a,4a,or 5a, below, and the amount on that line for the return being filed with this form was blank, then leave line lb,2b,3b,4b,or 5b,whichever is applicable, blank(do not enter -0-). But, if you entered -0-on the return, then enter -0- on the applicable line below. Do not complete more than 1 line in Part I. 1 a Form 990 check here..... ► b Total revenue,if any (Form 990, Part VIII, column (A), line 12) 1 b 641,093. 2 a Form 990-EZ check here e- b Total revenue,if any(Form 990-EZ, line 9) 2 b 3 a Form 1120-POL check here ► b Total tax(Form 1120-POL, line 22) 3 b 4a Form 990-PF check here ► Elb Tax based on investment income(Form 990-PF, Part VI, line 5).... 4b 5 a Form 8868 check here... ► ❑ b Balance Due(Form 8868, Part I, line 3c or Part II, line 8c) 5 b 04KIM, Declaration and Signature Authorization of Officer Under penalties of perjury, I declare that I am an officer of the above organization and that I have examined a copy of the organization's 2014 electronic return and accompanying schedules and statements and to the best of my knowledge and belief,they are true,correct,and complete. I further declare that the amount in Part I above is the amount shown on the copy of the organization's electronic return. I consent to allow my intermediate service provider, transmitter, or electronic return originator(ERO)to send the organization's return to the IRS and to receive from the IRS(a)an acknowledgement of receipt or reason for rejection of the transmission, (b)the reason for any delay in processing the return or refund, and(c)the date of any refund. If applicable, I authorize the U.S.Treasury and its designated Financial Agent to initiate an electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for payment of the organization's federal taxes owed on this return, and the financial institution to debit the entry to this account.To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment(settlement)date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment. I have selected a personal identification number(PIN) as my signature for the organization's electronic return and, if applicable, the organization's consent to electronic funds withdrawal. Officer's PIN:check one box only 0 I authorize GOODING O'HARA & MACKEY, PS, CPAS to enter my PIN 03233 as my signature ERO firm name Enter five numbers,but do not enter all zeros on the organization's tax year 2014 electronically filed return. If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I also authorize the aforementioned ERO to enter my PIN on the return's disclosure consent screen. IIAs an officer of the organization, I will enter my PIN as my signature on the organization's tax year 2014 electronically filed return. If I have indicated within this return that a copy of the return is being filed with a state agency(ies) regulating charities as part of the IRS Fed/State program, I will enter my PIN on the return's disclosure consent screen. Officer's signature ► Date► Certification and Authentication ERO's EFIN/PIN.Enter your six-digit electronic filing identification number (EFIN)followed by your five-digit self-selected PIN 91443998368 do not enter all zeros I certify that the above numeric entry is my PIN, which is my signature on the 2014 electronically filed return for the organization indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub 4163,Modernized a-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. ERO's signature ► ALDRYTH 0'HARA Date► ERO Must Retain This Form—See Instructions Do Not Submit This Form To the IRS Unless Requested To Do So BAA For Paperwork Reduction Act Notice,see instructions. Form 8879-EO (2014) TEEA7401L 07/11/14 2014 Exempt Org.Return prepared for: NORTHWEST WATERSHED INSTITUTE 3407 EDDY ST PORT TOWNSEND, WA 98368-4713 Gooding O'Hara & Mackey, PS, CPAs 242 Taylor Street Port Townsend, WA 98368 CLIENT 3233 GOODING O'HARA& MACKEY, PS, CPAS 242 TAYLOR STREET PORT TOWNSEND, WA 98368 (360) 385-1040 NORTHWEST WATERSHED INSTITUTE 3407 EDDY ST PORT TOWNSEND, WA 98368-4713 Dear Board of Directors: Your 2014 Federal Return of Organization Exempt from Income Tax will be electronically filed with the Internal Revenue Service upon receipt of a signed Form 8879-EO-IRS a-file Signature Authorization. No tax is payable with the filing of this return. Attached is the Oregon Charitable Activities Section report CT-12F along with a copy of Form 990. Sign the back of the CT-12F and mail it with a check for$10 to: Oregon Department of Justice 1515 SW 5th Ave, Ste#410 Portland, OR 97201-5451 Please be sure to call us if you have any questions. Sincerely, ALDRYTH O'HARA Form 990 OMB No.1545-0047 Return of Organization Exempt From Income Tax 2014 Under section 501(c),527,or 4947(a)(1)of the Internal Revenue Code(except private foundations) Department of the Treasury P• Do not enter social security numbers on this form as it may be made public. ` Ope n`to Public Internal Revenue Service P. Information about Form 990 and its instructions is at www.irs.gov/form990. if p jcUon, A For the 2014 calendar year,or tax year beginning 7/01 ,2014,and ending 6/30 , 2015 B Check if applicable: C D Employer identification number Address change NORTHWEST WATERSHED INSTITUTE 93-1325820 — _Name change 3407 EDDY ST E Telephone number Initial return PORT TOWNSEND, WA 98368-4713 (360) 385-6786 ^_Final return/terminated Amended return G Gross receipts $ 641,093. Application pending F Name and address of principal officer: PETER BAHLS H(a) Is this a group return for subordinates?_Yes X No SAME AS C ABOVE H(b)Are all subordinates included? Yes _No If'No,'attach a list.(see instructions) — I Tax-exempt status X 501(c)(3) _ 501(c) ( )l (insert no.) 4947(a)(1)or 527 J Website: ► N/A H(c)Group exemption number ► K Form of organization: Corporation Trust Association Other I' L Year of formation: M State of legal domicile: Plat1 Summary 1 Briefly describe the organization's mission or most significant activities: WATERSHED PROTECTION IN THE PACIFIC w NORTHWEST c W E c2 Check this box P. 0 if the organization discontinued its operations or disposed of more than 25% of its net assets. 0 3 Number of voting members of the governing body (Part VI, line la) 3 6 H4 Number of independent voting members of the governing body(Part VI, line i b) 4 6 5 Total number of individuals employed in calendar year 2014(Part V, line 2a) 5 15 6 Total number of volunteers (estimate if necessary) 6 150 cr7a Total unrelated business revenue from Part VIII, column (C), line 12 7a 0. b Net unrelated business taxable income from Form 990-T, line 34 7b 0. Prior Year Current Year 8 Contributions and grants (Part VIII, line 1h) 680,261. 601,861. 2 9 Program service revenue (Part VIII, line 2g) 38,840. 39,209. > 10 Investment income (Part VIII, column (A), lines 3,4, and 7d) 140. 23. & 11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11 e) 12 Total revenue —add lines 8 through 11 (must equal Part VIII, column (A), line 12) 719,241. 641,093. 13 Grants and similar amounts paid(Part IX, column (A), lines 1-3) 9,000. 14,000. 14 Benefits paid to or for members (Part IX, column (A), line 4) 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5-10) 114,166. 143, 629. 1 16a Professional fundraising fees (Part IX, column (A), line 11e) b Total fundraising expenses (Part IX, column (D), line 25) P. 13 17 Other expenses (Part IX, column (A), lines 1la-1 id, 11f-24e) 137,746., 168,388. 18 Total expenses. Add lines 13-17 (must equal Part IX, column (A), line 25) 260, 912. 326,017. 19 Revenue less expenses. Subtract line 18 from line 12 458,329. 315,076. Y= Beginning of Current Year End of Year it 20 Total assets (Part X, line 16) 650,787. 544,483. 5 21 Total liabilities (Part X, line 26) 462,362. 2,235. Z . 22 Net assets or fund balances. Subtract line 21 from line 20 188,425. 542,248. Part 00 Signature Block Under penalties of perjury,I declare that I have examined this return,including accompanying schedules and statements,and to the best of my knowledge and belief,it is true,correct,and complete.Declaration of preparer(other than officer)is based on all information of which preparer has any knowledge. Sign Signature of officer Date Here ' PETER BAHLS PRESIDENT Type or print name and title. Print/Type preparer's name Preparer's signature Date Check Li if PTIN Paid ALDRYTH 0'HARA ALDRYTH 0'HARA self-employed P00047628 Preparer Firm's name ' GOODING 0'HARA & MACKEY, PS, CPAS Use Only Firm's address 242 TAYLOR STREET Firm's EIN ► 91-2089644 PORT TOWNSEND, WA 98368 Phone no. (360) 385-1040 May the IRS discuss this return with the preparer shown above? (see instructions) X Yes No BAA For Paperwork Reduction Act Notice,see the separate instructions. TEEA0113t_ 05/28/14 Form 990 (2014) Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 2 Statement of Program Service Accomplishments Check if Schedule 0 contains a response or note to any line in this Part Ill ❑ 1 Briefly describe the organization's mission: WATERSHED PROTECTION IN THE PACIFIC NORTHWEST 2 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? 0 Yes ❑X No If'Yes,'describe these new services on Schedule O. 3 Did the organization cease conducting, or make significant changes in how it conducts, any program services? 0 Yes ❑X No If'Yes,'describe these changes on Schedule O. 4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4)organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. 4a(Code: ) (Expenses $ 281,061. including grants of $ ) (Revenue $ THE ORGANIZATION PROVIDES SCIENTIFIC AND TECHNICAL SUPPORT TO WATERSHED COUNCILS AND OTHER GROUPS. 4b(Code: ) (Expenses $ including grants of $ ) (Revenue $ ) 4c(Code: ) (Expenses $ including grants of $ ) (Revenue $ 4d Other program services. (Describe in Schedule 0.) (Expenses $ including grants of $ ) (Revenue $ 4e Total program service expenses ► 281 061. BAA TEEAo102L 05128/14 Form 990 (2014) Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 3 [::',,,Ti Checklist of Required Schedules Yes No 1 Is the organization described in section 501(c)(3)or 4947(a)(1) (other than a private foundation)? If'Yes,'complete Schedule A 1 X 2 Is the organization required to complete Schedule B, Schedule of Contributors(see instructions)? 2 X 3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If'Yes,'complete Schedule C, Part/ 3 X 4 Section 501(cX3)organizations.Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If'Yes,'complete Schedule C, Part II 4 X 5 Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If'Yes,'complete Schedule C, Part III 5 X 6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If'Yes,'complete Schedule D, Part/ 6 X 7 Did the organization receive or hold a conservation easement, including easements to preserve open space,the environment, historic land areas, or historic structures? If'Yes,'complete Schedule D, Part I1 7 X 8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If'Yes,' complete Schedule D, Part III 8 X 9 Did the organization report an amount in Part X, line 21,for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling,debt management,credit repair,or debt negotiation services? If'Yes,'complete Schedule D, Part IV 9 X 10 Did the organization,directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If'Yes,'complete Schedule D, Part V 10 X 11 If the organization's answer to any of the following questions is'Yes',then complete Schedule D, Parts VI,VII,VIII, IX, e.. ,E or X as applicable. Ian a Did the organization report an amount for land,buildings and equipment in Part X, line 10? If'Yes,'complete Schedule D, Part VI 11a X b Did the organization report an amount for investments—other securities in Part X, line 12 that is 5%or more of its total assets reported in Part X, line 16? If'Yes,'complete Schedule D, Part VII 11 b X c Did the organization report an amount for investments—program related in Part X, line 13 that is 5%or more of its total assets reported in Part X, line 16? If'Yes,'complete Schedule D, Part VIII 11 c X d Did the organization report an amount for other assets in Part X, line 15 that is 5%or more of its total assets reported in Part X, line 16? If'Yes,'complete Schedule D, Part IX 11d X e Did the organization report an amount for other liabilities in Part X, line 25? If'Yes,'complete Schedule D, Part X 11 e X f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48(ASC 740)? If'Yes,'complete Schedule D, Part X11 f X 12a Did the organization obtain separate, independent audited financial statements for the tax year? If'Yes,'complete Schedule D, Parts XI, and XII 12a X b Was the organization included in consolidated, independent audited financial statements for the tax year? If'Yes,'and if the organization answered 'No'to line 12a, then completing Schedule D, Parts XI and XII is optional 12 b X 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If'Yes,'complete Schedule E 13 X 14a Did the organization maintain an office, employees, or agents outside of the United States? 14a X b Did the organization have aggregate revenues or expenses of more than$10,000 from grantmaking,fundraising, business, investment,and program service activities outside the United States,or aggregate foreign investments valued at$100,000 or more? If'Yes,'complete Schedule F, Parts l and IV 14b X 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If'Yes,'complete Schedule F, Parts II and IV 15 X 16 Did the organization report on Part IX,column(A), line 3, more than$5,000 of aggregate grants or other assistance to or for foreign individuals? If'Yes,'complete Schedule F, Parts III and IV 16 X 17 Did the organization report a total of more than$15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and lie? If'Yes,'complete Schedule G, Part I(see instructions) 17 X 18 Did the organization report more than$15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If'Yes,'complete Schedule G, Part II 18 X 19 Did the organization report more than$15,000 of gross income from gaming activities on Part VIII, line 9a? If'Yes,' complete Schedule G, Part Ill 19 X 20 a Did the organization operate one or more hospital facilities? If'Yes,'complete Schedule H 20 X b If'Yes'to line 20a, did the organization attach a copy of its audited financial statements to this return? 20 b BAA TEEA0103L 05/28/14 Form 990 (2014) Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page4 ZIA Checklist of Re.uired Schedules continued Yes No 21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If'Yes,'complete Schedule I, Parts I and ll 21 X 22 Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If'Yes,'complete Schedule I, Parts I and III 22 X 23 Did the organization answer'Yes'to Part VII,Section A, line 3,4,or 5 about compensation of the organization's current and former officers,directors,trustees, key employees,and highest compensated employees? If'Yes,'complete Schedule J 23 X 24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than$100,000 as of the last day of the year, that was issued after December 31, 2002? If'Yes,'answer lines 24b through 24d and complete Schedule K. If'No, 'go to line 25a 24a X b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception" 24b c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? 24c d Did the organization act as an 'on behalf of' issuer for bonds outstanding at any time during the year? 24d 25a Section 501(cX3),501(cX4),and 501(cX29)organizations.Did the organization engage in an excess benefit transaction with a disqualified person during the year? If'Yes,'complete Schedule L, Part I 25a X b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year,and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If'Yes,'complete Schedule L, Part I 25b X 26 Did the organization report any amount on Part X, line 5,6,or 22 for receivables from or payables to an current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If'Yes', complete Schedule L, Part II 26 X 27 Did the organization provide a grant or other assistance to an officer,director,trustee, key employee,substantial contributor or employee thereof,a grant selection committee member,or to a 35%controlled entity or family member of any of these persons? If'Yes,'complete Schedule L, Part III 27 X 28 Was the organization a party to a business transaction with one of the following parties(see Schedule L,Part IV instructions for applicable filing thresholds, conditions, and exceptions): a A current or former officer, director, trustee, or key employee? If'Yes,'complete Schedule L, Part IV 28a X b A family member of a current or former officer,director,trustee,or key employee? If'Yes,'complete Schedule L, Part IV 28b X c An entity of which a current or former officer,director,trustee,or key employee(or a family member thereof)was an officer, director, trustee, or direct or indirect owner? If'Yes,'complete Schedule L, Part IV 28c X 29 Did the organization receive more than $25,000 in non-cash contributions? If'Yes,'complete Schedule M 29 X 30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If'Yes,'complete Schedule M 30 X 31 Did the organization liquidate, terminate, or dissolve and cease operations? If'Yes,'complete Schedule N, Part I 31 X 32 Did the organization sell,exchange,dispose of,or transfer more than 25%of its net assets? If'Yes,'complete Schedule N, Part II 32 X 33 Did the organization own 100%of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If'Yes,'complete Schedule R, Part I 33 X 34 Was the organization related to any tax-exempt or taxable entity? If'Yes,'complete Schedule R, Part II, III, or IV, and Part V, line 1 34 X 35a Did the organization have a controlled entity within the meaning of section 512(b)(13)? 35a X b If'Yes'to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If'Yes,'complete Schedule R, Part V, line 2 35b 36 Section 501(cX3)organizations.Did the organization make any transfers to an exempt non-charitable related organization? If'Yes,'complete Schedule R, Part V, line 2 36 X 37 Did the organization conduct more than 5%of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If'Yes,'complete Schedule R, Part VI 37 X 38 Did the organization complete Schedule 0 and provide explanations in Schedule 0 for Part VI, lines 11 b and 19? Note.All Form 990 filers are required to complete Schedule 0 38 X BAA Form 990 (2014) TEEA01041 05/28/14 Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 5 M Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule 0 contains a response or note to any line in this Part V n Yes No 1 a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable 1 al 7 ,'' , b Enter the number of Forms W-2G included in line 1 a. Enter -0- if not applicable 1 b 0 ' 3 c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming t,„, +. (gambling)winnings to prize winners? 1 c X 2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax State- ments,filed for the calendar year ending with or within the year covered by this return 2a 15M5,1',..1414141-iii-.. b If at least one is reported on line 2a, did the organization file all required federal employment tax returns? 2 b X Note.If the sum of lines 1 a and 2a is greater than 250,you may be required to e-file(see instructions) ``' 3a Did the organization have unrelated business gross income of$1,000 or more during the year? 3a X b If Yes'has it filed a Form 990-T for this year?If Wo'to line 3b,provide an explanation in Schedule 0 3 b 4a At any time during the calendar year,did the organization have an interest in,or a signature or other authority over,a financial account in a foreign country(such as a bank account, securities account, or other financial account)? 4a X b If'Yes,'enter the name of the foreign country: 3 TV See instructions for filing requirements for FinCEN Form 114,Report of Foreign Bank and Financial Accounts. (FBAR) ' 5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? 5a X b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? 5 b X c If'Yes,'to line 5a or 5b, did the organization file Form 8886-T? 5 c 6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? 6a X b If'Yes,'did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? 6b 7 Organizations that may receive deductible contributions under section 170(c). ,; ,' 1 a Did the organization receive a payment in excess of$75 made partly as a contribution and partly for goods and , services provided to the payor 7a X b If'Yes,' did the organization notify the donor of the value of the goods or services provided? 7 b c Did the organization sell,exchange,or otherwise dispose of tangible personal property for which it was required to file Form 8282? 7 c X d If'Yes,' indicate the number of Forms 8282 filed during the year I 7d1 I : e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? 7e X f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? 7f X g If the organization received a contribution of qualified intellectual property,did the organization file Form 8899 as required? 7 g h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? 7 h 8 Sponsoring organizations maintaining donor advised funds. Did a donor advised fund maintained by the sponsoring : ,, organization have excess business holdings at any time during the year? 8 9 Sponsoring organizations maintaining donor advised funds. k, ' 1 : 'l- a Did the sponsoring organization make any taxable distributions under section 4966? 9a b Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? 9 b 10 Section 501(c)(7)organizations.Enter: € "' a Initiation fees and capital contributions included on Part VIII, line 12 10a 4`; Al b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities 44, 4 11 Section 501(cX12)organizations.Enter: is a Gross income from members or shareholders Ma ; b Gross income from other sources (Do not net amounts due or paid to other sources '€ :} against amounts due or received from them.) 11 b E, 12a Section 4947(ax1)non-exempt charitable trusts.Is the organization filing Form 990 in lieu of Form 1041? 12a b If'Yes,'enter the amount of tax-exempt interest received or accrued during the year 112b1 13 Section 501(cX29)qualified nonprofit health insurance issuers. a a Is the organization licensed to issue qualified health plans in more than one state? 13a Note.See the instructions for additional information the organization must report on Schedule O. j E,, i b Enter the amount of reserves the organization is required to maintain by the states in r4 which the organization is licensed to issue qualified health plans 13b ',.- ?. :,. c Enter the amount of reserves on hand 113c € 1 14a Did the organization receive any payments for indoor tanning services during the tax year? 14a X b If'Yes,' has it filed a Form 720 to report these payments? If No,'provide an explanation in Schedule 0 14b BAA TEEA0105L 05/28/14 Form 990 (2014) Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 6 VIVI Governance, Management, and Disclosure For each 'Yes'response to lines 2 through 7b below, and for a 'No'response to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule 0. See instructions. Check if Schedule 0 contains a response or note to any line in this Part VI I^I Section A. Governing Body and Management Yes No 1 a Enter the number of voting members of the governing body at the end of the tax year 1 a 6 icy¢ If there are material differences in voting rights among members of the governing body, or if the governing body delegated broadr,q authority to an executive committee or similar committee, explain in Schedule 0. 4,;.1 Ful0 b Enter the number of voting members included in line la, above, who are independent 1 b 6 ,1' 2 Did any officer,director,trustee,or key employee have a familyrelationship or a business relationship with any other , officer, director, trustee, or key employee? SEE SCHDULE 0 2 X' 3 Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? 3 X 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? 4 X 5 Did the organization become aware during the year of a significant diversion of the organization's assets? 5 X 6 Did the organization have members or stockholders? 6 X 7a Did the organization have members, stockholders,or other persons who had the power to elect or appoint one or more members of the governing body? 7a X b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? 7b X 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by `I , the following: a The governing body? 8a X b Each committee with authority to act on behalf of the governing body? 8 b X 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? If'Yes,'provide the names and addresses in Schedule 0 9 X Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.) Yes No 10a Did the organization have local chapters, branches, or affiliates? 10a X b If'Yes,'did the organization have written policies and procedures governing the activities of such chapters,affiliates,and branches to ensure their operations are consistent with the organization's exempt purposes? 10 b 11 a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? 11 a X b Describe in Schedule 0 the process, if any, used by the organization to review this Form 990. SEE SCHEDULE 0 12a Did the organization have a written conflict of interest policy? If No,'go to line 13 12a X b Were officers,directors,or trustees,and key employees required to disclose annually interests that could give rise to conflicts? 12b X c Did the organization regularly and consistently monitor and enforce compliance with the policy? If'Yes,'describe in Schedule 0 how this was done....SEE..SCHEDULE.0 12 c X 13 Did the organization have a written whistleblower policy? 13 X 14 Did the organization have a written document retention and destruction policy? 14 X 15 Did the process for determining compensation of the following persons include a review and approval by independent E.. persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization's CEO, Executive Director, or top management official 15a X b Other officers or key employees of the organization 15b X If'Yes'to line 15a or 15b, describe the process in Schedule 0 (see instructions). 16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? 16a X b If'Yes,'did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? 16b Section C. Disclosure 17 List the states with which a copy of this Form 990 is required to be filed ► NONE 18 Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T(Section 501(c)(3)s only)available for public inspection. Indicate how you made these available. Check all that apply. Own website ❑ Another's website Upon request Other(explain in Schedule 0) 19 Describe in Schedule 0 whether(and if so,how)the organization made its governing documents,conflict of interest policy,and financial statements available to the public during the tax year. SEE SCHEDULE 0 20 State the name, address,and telephone number of the person who possesses the organization's books and records: ► PETER BAHLS 3407 EDDY ST PORT TOWNSEND WA 98368-4713 360-385-6786 BAA TEEA0106L 11/13/14 Form 990(2014) Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 7 :aI :: Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees,and Independent Contractors Check if Schedule 0 contains a response or note to any line in this Part VII ❑ Section A. Officers, Directors,Trustees, Key Employees,and Highest Compensated Employees 1 a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year. • List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. • List all of the organization's current key employees, if any. See instructions for definition of'key employee.' • List the organization's five current highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC)of more than $100,000 from the organization and any related organizations. • List all of the organization's former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. • List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons. ❑ Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. (C) Position(do not check more D E F (A) (B) than one box,unless person ( ) ( ) ( ) Name and Title Average is both an officer and a Reportable Reportable Estimated hours director/trustee) compensation from compensation from amount of other er the organization related organizations compensation week $ n 0 A =p (w-2/1099-MISC) (W-2/1099-MISC) from the (list any 9,{ c `1. -g 3 organization hours for"` ; o , and related related a organizations organiza- . o tions below sa 2 rn 2 dotted - line) cS (1) PETER BAHLS 40 PRESIDENT 0 X X 70,000. 0. 0. (2) GENE JONES 2 BOARD MEMBER 0 X 0. 0. 0. (3) JANIS HENRY 2 BOARD MEMBER 0 X 0. 0. 0. (4) JUDITH RUBIN 15 SECRETARY 0 X X 10,786. 0. 0. (5) KEITH LAZELLE 2 BOARD MEMBER 0 X 0. 0. 0. (6) JEANNE KOENINGS 2 BOARD MEMBER 0 X 0. 0. 0. (7) (8) (9) (10) (11) (12) (13) (14) BAA TEEA0107L 02/27/14 Form 990(2014) Form 990(2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 8 FP*Atil Section A. Officers, Directors,Trustees, Key Employees,and Highest Compensated Employees(continued) (B) (C) Poson (A) Average (do not check more than one (D) (E) (F) Name and titlehours box,unless person is both an Reportable Reportable Estimated per officer and a director/trustee) compensation from compensation from amount of other week = T the organization related organizations compensation (list any 9, n u relateO (w-2/1099-MISC) (W-2/1099-MISC) from the hours g— organization ford Sp g and related ' § -tions organizations osa �' `t below g 3 dotte line) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) 1 bSub-total ' 80,786. 0. 0. c Total from continuation sheets to Part VII,Section A 0. 0. 0. d Total(add lines lb and 1c) 80,786. 0. 0. 2 Total number of individuals(including but not limited to those listed above)who received more than$100,000 of reportable compensation from the organization ► 0 Yes No 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line la. If'Yes,'complete Schedule J for such individual 3 X 4 For any individual listed on line la, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If'Yes'complete Schedule J for such individual 4 X 5 Did any person listed on line la receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If'Yes,'complete Schedule J for such person 5 X Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. (A) (B) (C) Name and bsiness address Description of services Compnsation 2 Total number of independent contractors(including but not limited to those listed above)who received more than $100,000 of compensation from the organization► 0 BAA TEEA0108L 03/09/15 Form 990 (2014) Form 990(2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 9 125,M1 a5, Statement of Revenue Check if Schedule 0 contains a response or note to any line in this Part VIIL ❑ (A) (B) (C) D Total rvenue Reltd or Unreated Revenue exempt business excluded from tax function revenue under sections revenue 512-514 IS 0 1 a Federated campaigns 1 a f c b Membership dues 1 b orl c Fundraising events 1 c gd Related organizations 1 d „1 e Government grants(contributions).... 1 e 579,626 5, f All other contributions,gifts,grants,and 2 i similar amounts not included above... 1f22,235 rt-'.0 g Noncash contributions included in lines la-1f: $ v W h Total.Add lines la-1f • Business Code 5 2a SCIENTIFIC & TECH SUPPORT 29,035. 29,035. CC b LEASE INCOME 10,174. 10, 174. m ,g c Id ge f All other program service revenue.... a g Total.Add lines 2a-2f ' 39,209. 1 3 Investment income (including dividends, interest and other similar amounts) ' 23. 23. 4 Income from investment of tax-exempt bond proceeds..! 5 Royalties ' (i)Real (ii)Personal 6a Gross rents b Less: rental expenses c Rental income or(loss)... d Net rental income or (loss) 7a Gross amount from sales of (i)Securities (ii)Other assets other than inventory b Less:cost or other basis and sales expenses c Gain or (loss) d Net gain or(loss) 2 8a Gross income from fundraising events (not including..$ gi of contributions reported on line lc). It See Part IV, line 18 a 2 b Less: direct expenses b c Net income or(loss)from fundraising events ' 9a Gross income from gaming activities. See Part IV, line 19 a b Less: direct expenses b c Net income or (loss)from gaming activities ' 10a Gross sales of inventory, less returns and allowances a b Less: cost of goods sold b c Net income or (loss) from sales of inventory 0. Miscellaneous Revenue Business Code 11 a b c d All other revenue. e Total.Add lines l to-lid ' 12 Total revenue.See instructions ' 641,093. 39,209. 0. 23. BAA TEEA0109L 11/13/14 Form 990 (2014) Form 990(2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 10 I. WI Statement of Functional Expenses Section 501(c)(3)and 501(c)(4)organizations must complete all columns.All other organizations must complete column(A). Check if Schedule 0 contains a response or note to any line in this Part IX (A) (B) (C) (D) Do not include amounts reported on lines Total expenses Program service Management and Fundraising 6b, 7b,8b,9b,and 10b of Part VIII. expenses general expenses expenses 1 Grants and other assistance to domestic 1IJ1I organizations and domestic governments. `',' See Part IV, line 21 14,000. 14,000. 2 Grants and other assistance to domestic individuals. See Part IV, line 22 3 Grants and other assistance to foreign f organizations,foreign governments,and for- X1FE eign individuals. See Part IV, lines 15 and 16 , ;f r 4 Benefits paid to or for members 5 Compensation of current officers, directors, trustees, and key employees 80,786. 63,286. 17,500. 0. 6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1))and persons described in section 4958(c)(3)(B) 0. 0. 0. 0. 7 Other salaries and wages 31,032. 31,032. 8 Pension plan accruals and contributions (include section 401(k)and 403(b) employer contributions) 9 Other employee benefits 20,658. 15,493. 5,165. 10 Payroll taxes 11,153. 9,478. 1,675. 11 Fees for services (non-employees): a Management b Legal c Accounting 3,205, 3,205. d Lobbying e Professional fundraising services.See Part IV,line 17 .111: lJe f Investment management fees g Other.(If line 11g amt exceeds 10%of line 25,column (A)amount,list line 11g expenses on Schedule 0) 12 Advertising and promotion 377. 192. 185. 13 Office expenses 2,122. 2,122. 14 Information technology 15 Royalties 16 Occupancy 6,000. 6,000. 17 Travel 4,234. 2, 964. 1,270. 18 Payments of travel or entertainment expenses for any federal, state, or local public officials 19 Conferences, conventions, and meetings 20 Interest 21 Payments to affiliates 22 Depreciation, depletion, and amortization1,871. 1,108. 763. 23 Insurance 4 656. 1 496. 3 160. 24 Other expenses. Itemize expenses not „ covered above (List miscellaneous expenses i - in line 24e. If line 24e amount exceeds 10% , 3 ` a of line 25, column (A)amount, list line 24e aiL11 expenses on Schedule O.) a PROJECT COSTS 119,495. 119,495. b FIELD SUPPLIES 18, 954. 18,954. c TELEPHONE 3,899. 3,509. 390. d PROPERTY TAXES 2,245. 2,245. e All other expenses 1,330. 54. 1,276. 25 Total functional expenses.Add lines 1 through 24e326,017. 281,061. 44 956. 0. 26 Joint costs.Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here 1 if following SOP 98-2 (ASC 958-720) BAA TEEA0110L 05/28/14 Form 990(2014) r Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 11 Part kr 1 Balance Sheet Check if Schedule 0 contains a response or note to any line in this Part X 0 A (B) Beginning of year End of year 1 Cash— non-interest-bearing 55,196. 1 34,449. 2 Savings and temporary cash investments 179,022. 2 3 Pledges and grants receivable, net 3 4 Accounts receivable, net 2,331. 4 24, 694. 5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L 5 6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)),persons described in section 4958(c)(3)(B),and contributing employers and sponsoring organizations of section 501(c)(9)voluntary employees' beneficiary organizations (see instructions). Complete Part II of Schedule L 6 ;4• 7 Notes and loans receivable, net 7 i8 Inventories for sale or use 8 < 9 Prepaid expenses and deferred charges 2,131. 9 5,791. 10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 506,229. ', b Less: accumulated depreciation 10b 30, 680. 411,607. 10c 475,549. 11 Investments— publicly traded securities 11 12 Investments— other securities. See Part IV, line 11 12 13 Investments — program-related. See Part IV, line 11 13 14 Intangible assets 14 15 Other assets. See Part IV, line 11 500. 15 4,000. 16 Total assets.Add lines 1 through 15 (must equal line 34) 650,787. 16 544,483. 17 Accounts payable and accrued expenses 10,596. 17 2,135. 18 Grants payable 18 19 Deferred revenue 1,666. 19 20 Tax-exempt bond liabilities 20 21 Escrow or custodial account liability. Complete Part IV of Schedule D 21 si 22 Loans and other payables to current and former officers, directors, trustees, i key employees, highest compensated employees, and disqualified persons. Complete Part II of Schedule L 22 23 Secured mortgages and notes payable to unrelated third parties 23 24 Unsecured notes and loans payable to unrelated third parties 450,000. 24 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D. 100. 25 100. 26 Total liabilities.Add lines 17 through 25 462,362. 26 2,235. Organizations that follow SFAS 117(ASC 958),check here► 0 and complete • lines 27 through 29,and lines 33 and 34. w 27 Unrestricted net assets 33,743. 27 506,467. 11 m 28 Temporarily restricted net assets 154,682., 28 35,781. Is 29 Permanently restricted net assets 29 S Organizations that do not follow SFAS 117(ASC 958),check here 0- 8 and complete lines 30 through 34. a 30 Capital stock or trust principal, or current funds 30 31 Paid-in or capital surplus, or land, building, or equipment fund 31 32 Retained earnings, endowment, accumulated income, or other funds 32 I 33 Total net assets or fund balances 188,425. 33 542,248. 34 Total liabilities and net assets/fund balances 650,787. 34 544,483. BAA Form 990(2014) TEEA0111L 05/28/14 Form 990 (2014) NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 12 Reconciliation of Net Assets Check if Schedule 0 contains a response or note to any line in this Part XI ISI 1 Total revenue (must equal Part VIII, column (A), line 12) 1 641,093. 2 Total expenses (must equal Part IX, column (A), line 25) 2 326,017. 3 Revenue less expenses. Subtract line 2 from line 1 3 315,076. 4 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) 4 188,425. 5 Net unrealized gains (losses)on investments 5 6 Donated services and use of facilities 6 7 Investment expenses 7 8 Prior period adjustments 8 9 Other changes in net assets or fund balances (explain in Schedule 0} SEE SCHEDULE 0 9 38,747. 10 Net assets or fund balances at end of year.Combine lines 3 through 9(must equal Part X, line 33, column (B)) 10 542,248. Financial Statements and Reporting Check if Schedule 0 contains a response or note to any line in this Part XII I I Yes No 1 Accounting method used to prepare the Form 990: [Cash [Accrual ❑Other If the organization changed its method of accounting from a prior year or checked 'Other,'explain ; in Schedule 0. 2a Were the organization's financial statements compiled or reviewed by an independent accountant? 2a X If'Yes,'check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: € ; Separate basis [Consolidated basis [Both consolidated and separate basis b Were the organization's financial statements audited by an independent accountant? 2 b X If'Yes,'check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both: Separate basis [Consolidated basis [Both consolidated and separate basis c If'Yes'to line 2a or 2b,does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? 2c If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. 3a As a result of a federal award,was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133' 3a X b If'Yes,'did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule 0 and describe any steps taken to undergo such audits 3b BAA Form 990 (2014) TEEA0112L 05/28/14 Public Charity Status and Public Support OMB No.1545-0047 SCHEDULE AComplete if the organization is a section 501(cX3)organization or a section 201 4 (Form 990 or 990-EZ) 4947(a)(1)nonexempt charitable trust. P.Attach to Form 990 or Form 990-EZ. 3 " 14. ► Information about Schedule A(Form 990 or 990-EZ)and its instructions is 3 -0. #g��t Department of the Treasury - Internal Revenue Service at www.irs.gov/form990. Name of the organization Employer identification number NORTHWEST WATERSHED INSTITUTE 93-1325820 ',',,,"' Reason for Public Charity Status (All organizations must complete this part.) See instructions. The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.) 1 _ A church,convention of churches,or association of churches described in section 170(bX1XAXi). 2 _ A school described in section 170(bX1XAXii). (Attach Schedule E.) 3 _ A hospital or a cooperative hospital service organization described in section 170(bX1XAXiii). 4 A medical research organization operated in conjunction with a hospital described in section 170(bX1XAXiii). Enter the hospital's name, city, and state: 5 ❑An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1XAXiv). (Complete Part II.) 6 A federal, state, or local government or governmental unit described in section 170(bX1XAXv). El 7An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(bX1XAXvi). (Complete Part II.) 8 ❑A community trust described in section 170(bX1XAXvi). (Complete Part II.) 9 ❑X An organization that normally receives: (1) more than 33-1/3%of its support from contributions, membership fees,and gross receipts from activities related to its exempt functions—subject to certain exceptions,and(2) no more than 33-1/3%of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after _June 30, 1975. See section 509(aX2). (Complete Part III.) 10 An organization organized and operated exclusively to test for public safety. See section 509(aX4). 11 An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one —or more publicly supported organizations described in section 509(aX1)or section 509(aX2).See section 509(aX3).Check the box in lines 11 a through 11 d that describes the type of supporting organization and complete lines 11 e, 11 f, and 11g. a ❑Type I.A supporting organization operated,supervised,or controlled by its supported organization(s),typically by giving the supported organization(s)the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization.You must complete Part IV,Sections A and B. b ❑Type II.A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s).You must complete Part IV,Sections A and C. c ❑Type III functionally integrated.A supporting organization operated in connection with,and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV,Sections A,D,and E. d ❑Type III non-functionally integrated.A supporting organization operated in connection with its supported organization(s)that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement(see instructions). You must complete Part IV,Sections A and D,and Part V. e ❑Check this box if the organization received a written determination from the IRS that is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization. f Enter the number of supported organizations g Provide the following information about the supported organization(s). (i)Name of supported (ii)EIN (iii)Type of organization (iv)Is the (v)Amount of monetary (vi)Amount of other organization (described on lines 1-9 organization listed support(see instructions) support(see instructions) above or IRC section in your governing (see instructions)) document? Yes No (A) (B) (C) • (D) (E) c; c `_ry Total .w., , . ., ' „4 BAA For Paperwork Reduction Act Notice,see the Instructions for Form 990 or 990-EZ. Schedule A(Form 990 or 990-EZ)2014 TEEA0401L 07/16/14 • Schedule A(Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 2 fiL,' Support Schedule for Organizations Described in Sections 170(bX1XAXiv)and 170(bX1XAXvi) (Complete only if you checked the box on line 5,7,or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.) Section A. Public Support Calendar year(or fiscal year (a)2010 (b)2011 (c)2012 (d)2013 (e)2014 (f)Total beginning in) ► 1 Gifts,grants,contributions,and membership fees received.(Do not include any'unusual grants.) 2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf 3 The value of services or facilities furnished by a governmental unit to the organization without charge 4 Total.Add lines 1 through 3 5 The portion of total € a ' 0 contributions by each person (other than a governmental ' unit or publicly supported A _ organization) included on line 1 ° r that exceeds 2%of the amount shown on line 11, column (f) �, �,� ,� S ;If .p jail- 2-Ezr 6 Public support.Subtract line 5 �.. `f from line 4 �' 3 �[ �� Section B.Total Support Calendar year(or fiscal year (a)2010 (b)2011 (c)2012 (d)2013 (e)2014 (f)Total beginning in)► 7 Amounts from line 4 8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources 9 Net income from unrelated business activities,whether or not the business is regularly carried on 10 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) 11 Total support.Add lines 7 [41UP ppAft 3 through 10 ;. : :a ... 12 Gross receipts from related activities, etc (see instructions) 12 13 First five years.If the Form 990 is for the organization's first,second,third,fourth,or fifth tax year as a section 501(c)(3) ❑ organization, check this box and stop here Section C. Computation of Public Support Percentage 14 Public support percentage for 2014(line 6, column (f)divided by line 11, column (f)) 14 15 Public support percentage from 2013 Schedule A, Part II, line 14 15 16a 33-1/3%support test—2014. If the organization did not check the box on line 13, and the line 14 is 33-1/3%or more, check this box ❑ and stop here.The organization qualifies as a publicly supported organization b 33-1/3%support test—2013.If the organization did not check a box on line 13 or 16a, and line 15 is 33-1/3% or more, check this box ❑ and stop here.The organization qualifies as a publicly supported organization 17a 10%-facts-and-circumstances test—2014.If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the 'facts-and-circumstances'test, check this box and stop here.Explain in Part VI how ❑ the organization meets the 'facts-and-circumstances'test.The organization qualifies as a publicly supported organization b 10%-facts-and-circumstances test—2013.If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the 'facts-and-circumstances'test, check this box and stop here.Explain in Part VI how the — organization meets the 'facts-and-circumstances'test. The organization qualifies as a publicly supported organization 18 Private foundation.If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions BAA Schedule A(Form 990 or 990-EZ) 2014 TEEA0402L 07/16/14 Schedule A(Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 3 Support Schedule for Organizations Described in Section 509(aX2) (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part IL) Section A. Public Support Calendar year(or fiscal yr beginning in) P. (a)2010 (b)2011 (c)2012 (d) 2013 (e)2014 (f)Total 1 Gifts, grants, contributions and membership fees received. (Do not include any'unusual grants.') 213,351. 359,004. 336,862. 680,261. 601,861. 2,191,339. 2 Gross receipts from admis- sions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose 619,354. 20,459. 38,857. 38,840. 39,209. 756,719. 3 Gross receipts from activities that are not an unrelated trade or business under section 513. 0. 4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf 0. 5 The value of services or facilities furnished by a governmental unit to the organization without charge 0. 6 Total.Add lines 1 through 5832,705. 379,463. 375,719. 719,101. 641,070. 2, 948,058. 7 a Amounts included on lines 1, 2, and 3 received from disqualified persons 0. 0. 0. 0. 0. 0. b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of$5,000 or 1%of the amount on line 13 for the year 0. 0. 0. 0. 0. 0. c Add lines 7a and 7b 0. 0. 0. 0. 0. 0. 8 Public support (Subtract line t ,,° 2, 848,058. 7c from line 6.) ������ .„. Section B.Total Support Calendar year(or fiscal yr beginning in) P. (a)2010 (b)2011 (c)2012 (d)2013 (e)2014 (f)Total 9 Amounts from line 6 832,705. 379,463. 375,719. 719,101. 641,070. 2, 948,058. 10 a Gross income from interest,dividends, payments received on securities loans, rents,royalties and income from similar sources 7. 10. 14. 140. 23. 194. b Unrelated business taxable income (less section 511 taxes)from businesses acquired after June 30, 1975O. c Add lines l0a and 10b 7. 10. 14. 140. 23. 194. 11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on 0. 12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.).S.EE.PART..V1 8,454. 23,820. 32,274. 13 Total support. (Add lines 9, 10c, 11 and 12.) 832,712. 387, 927. 399,553. 719,241. 641,093. 2, 980,526. 14 First five years.If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here I I Section C. Computation of Public Support Percentage 15 Public support percentage for 2014(line 8, column (0 divided by line 13, column (f)) 15 98.91 % 16 Public support percentage from 2013 Schedule A, Part III, line 15 16 98.91 % Section D. Computation of Investment Income Percentage 17 Investment income percentage for 2014(line 10c, column (f) divided by line 13, column (f)) 17 0.01 % 18 Investment income percentage from 2013 Schedule A, Part III, line 17 18 0.01 % 19a 33-1/3%support tests—2014. If the organization did not check the box on line 14, and line 15 is more than 33-1/3%, and line 17 is not more than 33-1/3%, check this box and stop here.The organization qualifies as a publicly supported organization b 33-1/3%support tests—2013.1f the organization did not check a box on line 14 or line 19a, and line 16 is more than 33-1/3%, and line 18 is not more than 33-1/3%, check this box and stop here.The organization qualifies as a publicly supported organization ► _ 20 Private foundation.If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions _ BAA TEEA0403L 07/17/14 Schedule A(Form 990 or 990-EZ)2014 • Schedule A(Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 4 Supporting Organizations (Complete only if you checked a box on line 11 of Part I. If you checked 11 a of Part I, complete Sections A and B. If you checked 11 b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11 d of Part I, complete Sections A and D, and complete Part V.) Section A.All Supporting Organizations Yes No 1 Are all of the organization's supported organizations listed by name in the organization's governing documents? ie.S0'" If'No,'describe in Part VI how the supported organizations are designated. If designated by class or purpose, describe the designation. If historic and continuing relationship, explain 1 It- 2 Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If'Yes,'explain in Part VI how the organization determined that the supported organization was '' described in section 509(a)(1) or(2) 2 3 a Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If'Yes,'answer(b) and(c)below 3a b Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and L# satisfied the public support tests under section 509(a)(2)? If'Yes,'describe in Part VI when and how the organization made the determination 3b c Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) Kos,StS, purposes? If'Yes,'explain in Part VI what controls the organization put in place to ensure such use 3c 4a Was anysupported organization not organized in the United States ('foreign supported organization')? If'Yes'and - PP 9 9 (` 9 PP if you checked 1l a or 11b in Part I, answer(b)and(c)below 4a Tsarb Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported IE organization? If'Yes,'describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations 4b 5,2 c Did the organization support any foreign supported organization that does not have an IRS determination under '€E -t sections 501(c)(3) and 509(a)(1) or (2)? If'Yes,'explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B)purposes 4c 5 a Did the organization add,substitute,or remove any supported organizations during the tax year? If'Yes,'answer(b) " and(c)below(if applicable).Also,provide detail in Part W, including(i)the names and EIN numbers of the supported • i organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the • `; organization's organizing document authorizing such action, and(iv)how the action was accomplished(such as by 4 €°`'' amendment to the organizing document) 5a b Type I or Type II only.Was any added or substituted supported organization part of a class already designated in the `€ organizations organizing document? 5b c Substitutions only.Was the substitution the result of an event beyond the organization's control? 5c 6 Did the organization provide support (whether in the form of grants or the provision of services or facilities)to anyone other than(a) its supported organizations; (b)individuals that are part of the charitable class benefited by one ' or more of its supported organizations;or(c)other supporting organizations that also support or benefit one or more of the filing organization's supported organizations? If'Yes,'provide detail in Part VI 6 rqa [E 7 Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor "' (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with i ' regard to a substantial contributor? If'Yes,'complete Part I of Schedule L (Form 990) 7 8 Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If'Yes,' complete Part I of Schedule L (Form 990) 8 9a Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1)or(2))? _ .._ If'Yes,'provide detail in Part VI 9a b Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the IF AL: A supporting organization had an interest? If'Yes,'provide detail in Part VI 9b c Did a disqualifiedperson (as defined in line 9 a have an ownership in, or derive any "'3' q ( )) interest personal benefit from, � assets in which the supporting organization also had an interest? If'Yes,'provide detail in Part VI 9c 10a Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If'Yes,' ,t, answer(b)below 10a b Did the organization, have any excess business holdings in the tax year? (Use Schedule C,Form 4720, to determine u whether the organization had excess business holdings.) 10b BAA TEEA0404L 07/17/14 Schedule A(Form 990 or 990-EZ)2014 • Schedule A(Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 5 Supporting Organizations (continued) Yes No 11 Has the organization accepted a gift or contribution from any of the following persons? a A person who directly or indirectly controls,either alone or together with persons described in(b)and(c) below,the ' governing body of a supported organization? 11a bA family member of a person described in (a)above? 11b c A 35%controlled entity of a person described in (a)or (b)above? If'Yes'to a, b, or c, provide detail in Part VI 11c Section B.Type I Supporting Organizations Yes No 1 Did the directors,trustees,or membership of one or more supported organizations have the power to regularly appoint ,4 £ . or elect at least a majority of the organization's directors or trustees at all times during the tax year? If'No,'describe in /, Part VI how the supported organization(s)effectively operated, supervised, or controlled the organization's activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove 13 ,6 directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year 1 2 Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If'Yes,'explain in Part VI how providing such ;,Y benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the °' supporting organization 2 Section C.Type II Supporting Organizations Yes No 1 Were a majority of the organization's directors or trustees during the tax year also a majority of the directors or trustees i of each of the organization's supported organization(s)? If'No,'describe in Part VI how control or management of the 4 supporting organization was vested in the same persons that controlled or managed the supported organization(s) 1 Section D.All Type III Supporting Organizations Yes No 1 Did the organization provide to each of its supported organizations, by the last day of the fifth month of the , organization's tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3)copies of the organization's governing documents in effect on the date of notification, to the extent not previously provided? 1 2 Were any of the organization's officers, directors, or trustees either (i) appointed or elected by the supported organization(s)or(ii)serving on the governing body of a supported organization? If'No,'explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s) 2 3 By reason of the relationship described in (2), did the organization's supported organizations have a significant voice in the organization's investment policies and in directing the use of the organization's income or assets at all times during the tax year? If'Yes,'describe in Part VI the role the organization's supported organizations played --- 3 in this regard 3 Section E.Type Ill Functionally-Integrated Supporting Organizations 1 Check the box next to the method that the organization used to satisfy the Integral Part Test during the year(see instructions): a El The organization satisfied the Activities Test. Complete line 2 below. b The organization is the parent of each of its supported organizations. Complete line 3 below. c ❑ The organization supported a governmental entity.Describe in Part VI how you supported a government entity(see instructions). 2 Activities Test.Answer(a)and(b)below. Yes No �rEE, a Did substantially all of the organization's activities during the tax year directly further the exempt purposes of the I supported organization(s)to which the organization was responsive? If'Yes,'then in Part VI identify those supported W' 741-77-Pi organizations and explain how these activities directly furthered their exempt purposes, how the organization was - responsive to those supported organizations, and how the organization determined that these activities constituted —"` substantially all of its activities. 2a b Did the activities described in (a) constitute activities that, but for the organization's involvement, one or more of 3 the organization's supported organization(s)would have been engaged in? If'Yes,'explain in Part VI the reasons for the organization's position that its supported organization(s) would have engaged in these activities but for the organization's involvement 2b 3 Parent of Supported Organizations. Answer(a)and(b)below. a Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI 3a b Did the organization exercise a substantial degree of direction over the policies, programs,and activities of each of its supported organizations? If'Yes,'describe in Part VI the role played by the organization in this regard 3b BAA TEEA0405L 07/18/14 Schedule A(Form 990 or 990-EZ)2014 Schedule A(Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 6 Type Ill Non-Functionally Integrated 509(aX3)Supporting Organizations 1 ❑ Check here if the organization satisfied the Integral Part Test as a qualifying trust on November 20, 1970.See instructions.All other Type Ill non-functionally integrated supporting organizations must complete Sections A through E. Section A—Adjusted Net Income (A) Prior Year (B)(Current uPtional)Year 1 Net short-term capital gain 1 2 Recoveries of prior-year distributions 2 3 Other gross income (see instructions) 3 4 Add lines 1 through 3 4 5 Depreciation and depletion 5 6 Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) 6 7 Other expenses (see instructions) 7 8 Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) 8 Section B — Minimum Asset Amount (A)Prior Year (B)Current Year (optional) 1 Aggregate fair market value of all non-exempt-use assets (see instructions for short ;" ' , ' 3 1 tax year or assets held for part of year): M z v a Average monthly value of securities la b Average monthly cash balances lb c Fair market value of other non-exempt-use assets 1c d Total (add lines la, lb, and 1c) ld e Discount claimed for blockage or other _ if, 4 . 105 factors (explain in detail in Part VI): .1 • '0 : 4€ _ 2 Acquisition indebtedness applicable to non-exempt-use assets 2 3 Subtract line 2 from line 1d 3 4 Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions) _ 4 5 Net value of non-exempt-use assets (subtract line 4 from line 3) _ 5 6 Multiply line 5 by .035 6 7 Recoveries of prior-year distributions 7 8 Minimum Asset Amount(add line 7 to line 6) 8 Section C — Distributable Amount ` ... € Current Year 1 Adjusted net income for prior year(from Section A, line 8, Column A) 1 s ,0! 2 Enter 85% of line 1 24 3 Minimum asset amount for prior year(from Section B, line 8, Column A) 3AVEL.RAI; iegOr 4 Enter greater of line 2 or line 3 4 ' : 5 Income tax imposed in prior year 5i 6 Distributable Amount.Subtract line 5 from line 4, unless subject to emergency 11145'54 -+ w aP temporary reduction (see instructions) 6 16E ,1:04-51.i' 7 ❑ Check here if the current year is the organization's first as a non-functionally-integrated Type Ill supporting organization (see instructions). BAA Schedule A(Form 990 or 990-EZ)2014 TEEA0406L 07/18/14 Schedule A(Form 990 or 990 EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 7 T •e III Non-Functionall Inte•rated 50• a.3 Su• •ortin• Or•anizations continued Section D — Distributions Current Year 1 Amounts paid to supported organizations to accomplish exempt purposes 2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity 3 Administrative expenses paid to accomplish exempt purposes of supported organizations 4 Amounts paid to acquire exempt-use assets 5 Qualified set-aside amounts (prior IRS approval required) 6 Other distributions (describe in Part VI). See instructions 7 Total annual distributions.Add lines 1 through 6 8 Distributions to attentive supported organizations to which the organization is responsive(provide details in Part VI). See instructions 9 Distributable amount for 2014 from Section C, line 6 10 Line 8 amount divided by Line 9 amount 0) (ii) (iii) Section E — Distribution Allocations(see instructions) Excess Underdistributions Distributable Distributions Pre-2014 ssmaggim Amount for 2014 1 Distributable amount for 2014 from Section C, line 6 l w 2 Underdistributions, if any, for years prior to 2014(reasonable cause required — see instructions) �, 41,, ��;[,E ? 3 Excess distributions carryover, if any, to 2014B7./L a, '''_ a i .. ,l' 'Ea b € i :f1 .,1',115731-;,-' 1'3 r[ ,,,. 1.$46;°. ...itiiitiiiiii ,''''4,!!,:i;iii::'!T:''',''' ' '')i ilf4::::,;,i,r i: .',4111..,;',, j'''''.,1,-i,itili,,,,'':11. [ ' � m Ciiii e From 2013j� .. E:1 � �� f Total of lines 3a through e g Applied to underdistributions of prior years i; h Applied to 2014 distributable amount i Carryover from 2009 not applied (see instructions) �' j Remainder. Subtract lines 3g, 3h, and 3i from 3f 4 Distributions for 2014 from Section D, line 7: $ � � � �� ` ,E �� 14,',41110;':',',1.,,,, :� �'� '' a Applied to underdistributions of prior years l� b Applied to 2014 distributable amount c Remainder. Subtract lines 4a and 4b from 4 1. 5 Remaining underdistributions for years prior to 2014, if any. 1 r Subtract lines 3g and 4a from line 2 (if amount greater than , zero, see instructions) , ,, 6 Remaining underdistributions for 2014. Subtract lines 3h and 4b , , ,` - ,,,,,,,, 7,.::., ,,,,,,,, from line 1 (if amount greater than zero, see instructions) ,` .i,;', „mi:,; 'i- „:,...:w,, 7 Excess distributions carryover to 2015.Add lines 3j and 4c ' ® ,„'; , 8 Breakdown of line 7: �� ti :,,:,,,,i,7_,.,,,,,,,, . EE, EE [:. 333. ,, 111171,41P.''': rt 5 E€ t -- r ,u t C �., E t a C. a..”».n k' T d Excess from 2013 e Excess from 2014 BAA Schedule A(Form 990 or 990-EZ)2014 TEEA0407L 10/31/14 Schedule A(Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 8 r+ Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and Part III, line 12. Also complete this part for any additional information. (See instructions). PART III, LINE 12-OTHER INCOME NATURE AND SOURCE 2014 2013 2012 2011 2010 GAIN ON SALE OF ASSETS $ 16,610. $ 8,004. MISCELLANEOUS INCOME 7,210. 450. TOTAL $ 0. $ 0. $ 23,820. $ 8,454. $ 0. BAA Schedule A(Form 990 or 990-EZ)2014 TEEA0408L 08/18/14 SCHEDULE D Supplemental Financial Statements OMB No.1545-0047 (Form 990) ► Complete if the organization answered'Yes,'to Form 990, 201 4 Part IV,lines 6,7,8,9,10,11a,11b,11c,11d,11e,11f,12a,or 12b. P. Attach to Form 990. Department of the Treasury 1"- Information about Schedule D(Form 990)and its instructions is at www.irs.gov/form990. Internal Revenue Service °`. Name of the organization Employer identification number NORTHWEST WATERSHED INSTITUTE 93-1325820 :,i Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered 'Yes' to Form 990, Part IV, line 6. (a)Donor advised funds (b)Funds and other accounts 1 Total number at end of year 2 Aggregate value of contributions to(during year) 3 Aggregate value of grants from(during year) 4 Aggregate value at end of year 5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? _Yes ❑ No 6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefits ❑Yes [No di Al Conservation Easements. Complete if the organization answered 'Yes' to Form 990, Part IV, line 7. 1 Purpose(s)of conservation easements held by the organization (check all that apply). Preservation of land for public use (e.g., recreation or education) Preservation of a historically important land area Protection of natural habitat Preservation of a certified historic structure Preservation of open space 2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. 1111 Held at the End of the Tax Year a Total number of conservation easements Ea b Total acreage restricted by conservation easements 2 b c Number of conservation easements on a certified historic structure included in (a) d Number of conservation easements included in (c)acquired after 8/17/06, and not on a historic structure listed in the National Register 2d 3 Number of conservation easements modified,transferred, released, extinguished,or terminated by the organization during the tax year ► 4 Number of states where property subject to conservation easement is located ► 5 Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds ❑ ❑Yes No 6 Staff and volunteer hours devoted to monitoring, inspecting,and enforcing conservation easements during the year 7 Amount of expenses incurred in monitoring, inspecting,and enforcing conservation easements during the year 8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? [Yes ❑No 9 In Part XIII,describe how the organization reports conservation easements in its revenue and expense statement,and balance sheet,and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. ':rt:fAill Organizations Maintaining Collections of Art, Historical Treasures,or Other Similar Assets. Complete if the organization answered 'Yes' to Form 990, Part IV, line 8. 1 a If the organization elected, as permitted under SFAS 116(ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures,or other similar assets held for public exhibition,education,or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items. b If the organization elected, as permitted under SFAS 116(ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures,or other similar assets held for public exhibition,education, or research in furtherance of public service, provide the following amounts relating to these items: (I) Revenue included in Form 990, Part VIII, line 1 ►$ (ii) Assets included in Form 990, Part X .$ 2 If the organization received or held works of art,historical treasures,or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: a Revenue included in Form 990, Part VIII, line 1 ►$ b Assets included in Form 990, Part X $ BAA For Paperwork Reduction Act Notice,see the Instructions for Form 990. TEEA3301L 10/28/14 Schedule D(Form 990) 2014 Schedule D (Form 990)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 2 t Organizations Maintaining Collections of Art, Historical Treasures,or Other Similar Assets (continued) La ti:a 3 Using the organization's acquisition,accession,and other records,check any of the following that are a significant use of its collection items (check all that apply): a - Public exhibition d Loan or exchange programs b - Scholarly research e Other c - Preservation for future generations 4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIII. 5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization's collection? ❑Yes No Escrow and Custodial Arrangements. Complete if the organization answered 'Yes' to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1 a Is the organization an agent, trustee, custodian, or other intermediary for contributions or other assets not included on Form 990, Part X? ❑Yes U No b If'Yes,'explain the arrangement in Part XIII and complete the following table: Amount c Beginning balance 1 c d Additions during the year 1 d e Distributions during the year 1 e f Ending balance 1 f 2a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? U Yes No b If'Yes,'explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII .' Endowment Funds. Complete if the organization answered 'Yes' to Form 990, Part IV, line 10. (a)Current year (b)Prior year (c)Two years back (d)Three years back (e)Four years back 1 a Beginning of year balance b Contributions c Net investment earnings, gains, and losses d Grants or scholarships e Other expenditures for facilities and programs f Administrative expenses g End of year balance 2 Provide the estimated percentage of the current year end balance (line lg, column (a)) held as: a Board designated or quasi-endowment P- b b Permanent endowment ► % c Temporarily restricted endowment ► % The percentages in lines 2a, 2b, and 2c should equal 100%. 3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: Yes No (i) unrelated organizations 3a(i) (ii) related organizations 3a(ii) b If'Yes'to 3a(ii), are the related organizations listed as required on Schedule R? 3b 4 Describe in Part XIII the intended uses of the organization's endowment funds. Urtill Land, Buildings,and Equipment. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11 a. See Form 990, Part X, line 10. Description of property (a)Cost or other basis (b)Cost or other (c)Accumulated (d)Book value (investment) basis (other) depreciation 1aLand 473,015. .. , 'r' 473,015. b Buildings c Leasehold improvements d Equipment 27,866. 26,414. 1,452. e Other 5,348. 4,266. 1,082. Total.Add lines 1a through 1e. (Column (d)must equal Form 990, Part X, column (B), line 10c.) 475,549. BAA Schedule D(Form 990)2014 TEEA3302L 08/25/14 Schedule D (Form 990)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 3 Investments— Other Securities. N/A Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. See Form 990, Part X, line 12. p (a)Description of security or category(including name of security) (b)Book value (c)Method of valuation:Cost or end-of-year market value (1) Financial derivatives (2) Closely-held equity interests (3) Other (A) (B) (C) (D) (E) (F) (G) (H) (I) 33r: Total.(Column(b)must equal Form 990,Part X,column(B)line 12.)... -'s Investments— Program Related. N/A Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c. See Form 990, Part X, line 13. (a)Description of investment type (b)Book value (c)Method of valuation:Cost or end-of-year market value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total Column(b)must equal Form 990,Part X, column(B)line 13.).. %.i, E€F. 1: Other Assets. N/A Complete if the organization answered 'Yes' to Form 990, Part IV, line 11d. See Form 990, Part X, line 15. (a)Description (b)Book value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total. (Column (b)must equal Form 990, Part X, column(B), line 15.) Other Liabilities. Complete if the organization answered 'Yes'to Form 990, Part IV, line l le or 11f See Form 990, Part X, line 25 (a)Description of liability (b)Book value .' (1) Federal income taxes (2) RENTAL SECURITY DEPOSIT 100 (3) (5) ttc Ikea? t i (6) .4 # y 4„; i (8) "' 41 E (10) (11) k,1” � Total.(Column(b)must equal Form 990,Part X,column(B)line 25.) 100. , ' d,. 2.Liability for uncertain tax positions.In Part XIII,provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48(ASC 740).Check here if the text of the footnote has been provided in Part XIII ❑ BAA TEEA3303L 08/25/14 Schedule D(Form 990)2014 Schedule D (Form 990)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 4 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. N/A Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a. 1 Total revenue, gains, and other support per audited financial statements 1 2 Amounts included on line 1 but not on Form 990, Part VIII, line 12: a Net unrealized gains (losses) on investments 2 a b Donated services and use of facilities 2 b t c Recoveries of prior year grants 2c d Other (Describe in Part XIII.) 2 d €, e Add lines 2a through 2d 2e 3 Subtract line 2e from line 1 3 4 Amounts included on Form 990,Part VIII, line 12, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b 4a b Other (Describe in Part XIII.) 4b c Add lines 4a and 4b 4c 5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12) 5 'x Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. N/A Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a. 1 Total expenses and losses per audited financial statements 1 2 Amounts included on line 1 but not on Form 990, Part IX, line 25: mar.itam a Donated services and use of facilities 2a � b Prior year adjustments 2 b c Other losses d Other (Describe in Part XIII.) 2d e Add lines 2a through 2d 2e 3 Subtract line 2e from line 1 3 4 Amounts included on Form 990, Part IX, line 25, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b 4a bother (Describe in Part XIII.) 4b c Add lines 4a and 4b 4c 5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) 5 '= • :401 Supplemental Information. Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines la and 4; Part IV, lines lb and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information. 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Q .. v NV y V) 0 � 3 .2 N c c I C> o Z Z C ca -(''S rn .0 ° 1 u FA 0 cN c O Q (21.'6' caO a3 d rn ch I CO U L O E a) xE E = o 4-' i 45„c p — to o WI El i O OO- cc -c ° bH 3 Nr '. -a z, H- .NL R � 20, z w A I E E . w U O R D,c a_ -N+ 01 Cu a z r4 C C ° W `2.3.d NEl o'� .c C E z i z I is m L �^ o' W C'03 N N s Cf L.L. z a I s- s- a i 3 a� w I Q W M H 0 _ � H ti . a0 I W W 4 , c d Q N4 d0 c O r N N ^ I CO OBD N M Q O 2 Z e v ..-1 �.. v m § ui . w r.., -, ± / _1' E . 2k ƒ g , 2 m 0 \ \ -a Ix o E up m o ) k q O k■ 2 • awq -0 CD t0 § -0 ƒ oO � CD _\ \ g rzi u ah }§ % 0 }] ®U•_ < H i-.5-'-' aq §_ _01-3 tii c g k 3 E \ _ m / — . . 7 \ ¢ o B CSN) 0 / / // ƒ \ ° ) ƒ ) 55- k k- C1) - \ o_ E / Wg o o %.] -' $ f ƒ / _ % / k/ - 7 $ . ƒ ` ga % 0.4 � a) . i \ 2 k § a e k 3 a \ " SCHEDULE L Transactions With Interested Persons OMB No.1545-0047 (Form 990 or 990-EZ) ►Complete if the organization answered'Yes'on Form 990,Part IV,line 25a,25b,26,27,28a, 2014 28b,or 28c,or Form 990-EZ,Part V,line 38a or 40b. P.Attach to Form 990 or Form 990-EZ. Department of the Treasury ► Information about Schedule L(Form 990 or 990-EZ)and its instructions is lytir Internal Revenue Service at www.irs.gov/form990. Name of the organization Employer identification number NORTHWEST WATERSHED INSTITUTE 93-1325820 Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only). Complete if the organization answered 'Yes'on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b. (a)Name of disqualified person (b)Relationship between disqualified (c)Description of transaction (d)Corrected? 1 person and organization Yes No (1) (2) (3) (4) (5) (6) 2 Enter the amount of tax incurred by the organization managers or disqualified persons during the year under section 4953 ►$ 3 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ►$ ?CAM, ) Loans to and/or From Interested Persons. Complete if the organization answered 'Yes'on Form 990-EZ, Part V, line 38a or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22. (a)Name of interested person (b)Relationship (c)Purpose (d)f=n to or (e)Original (f)Balance due (g)In default? (h)Approved (i)Written with organization of loan the principal amount by board or agreement? organization? committee? To From Yes No Yes No Yes No (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total ►$ ` s ( .> .4.. 'a Grants Grants or Assistance Benefiting Interested Persons. Complete if the organization answered 'Yes' on Form 990, Part IV, line 27. (a)Name of interested person (b)Relationship between interested person (c)Amount of assistance (d)Type of assistance (e)Purpose of assistance and the organization (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) BAA For Paperwork Reduction Act Notice,see the Instructions for Form 990 or 990-EZ. Schedule L(Form 990 or 990-EZ)2014 TEEA4501L 10/13/14 Schedule L (Form 990 or 990-EZ)2014 NORTHWEST WATERSHED INSTITUTE 93-1325820 Page 2 'MP Business Transactions Involving Interested Persons. Complete if the organization answered 'Yes' on Form 990, Part IV, line 28a, 28b, or 28c. (a)Name of interested person (b)Relationship between (c)Amount of (d)Description of transaction (e)Sharing of interested person and the transaction organization's organization revenues? Yes No (1) PETER BAHLS X (2) (3) (4) (5) (6) (7) (8) (9) (10) i" Supplemental Information Provide additional information for responses to questions on Schedule L(see instructions). SUPPLEMENTAL INFORMATION THE PRESIDENT OF THE ORGANIZATION RECEIVED $6000 FOR RENT. Schedule L(Form 990 or 990-EZ)2014 TEEA4501L 10/13/14 SCHEDULE 0 Supplemental Information to Form 990 or 990-EZ OMB No.1545-0047 (Form 990 or 990-EZ) Complete to provide information for responses to specific questions on 2014 Form 990 or 990-EZ or to provide any additional information. Attach to Form 990 or 990-EZ. Department of the Treasury ► Information about Schedule 0(Form 990 or 990-EZ)and its instructions is - "- Internal Revenue Service at www.irs.gov/form990. Name of the organization I Employer identification number NORTHWEST WATERSHED INSTITUTE 93-1325820 FORM 990, PART VI, LINE 2- BUSINESS OR FAMILY RELATIONSHIP OF OFFICERS, DIRECTORS, ETC. THE PRESIDENT (PETER BAHLS) AND THE SECRETARY (JUDITH RUBIN) ARE HUSBAND AND WIFE. FORM 990, PART VI, LINE 11B- FORM 990 REVIEW PROCESS REVIEWED BY BOARD MEMBERS PRIOR TO SUBMISSION FORM 990, PART VI, LINE 12C- EXPLANATION OF MONITORING AND ENFORCEMENT OF CONFLICTS ANNUAL REVIEW FORM 990, PART VI, LINE 19-OTHER ORGANIZATION DOCUMENTS PUBLICLY AVAILABLE THE ORGANIZATION PLACES GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND WHISTLEBLOWER POLICY IN THE CORPORATE MINUTE BOOK WHICH IS AVAILABLE FOR REVIEW BY THE PUBLIC UPON REQUEST IN THE CORPORATE OFFICES. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES ADJUST PRIOR YEAR LAND DEVALUATION $ 64,062. LAND DEVALUATION -25,315. TOTAL $ 38,747. BAA For Paperwork Reduction Act Notice,see the Instructions for Form 990 or 990-EZ. TEEA4901t_ 08/18/14 Schedule 0 (Form 990 or 990-EZ)2014 C • rN o 0 0 o CO CO COoo 01 o 00 00 W 00 F Z� W 00 CO NJ NJ 0000 •\ W M ce W �a Q r— a 0 MU, U, U) U) U) U) JJ J J J J \ \ \ \ \ \ h Cr) N CO CO CO O CCD N- M n O O M M O O O 00 00 U) � U) O 00 00 �. 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Contact program staff at 379-4498 or tpokomy@co.iefferson.wa.us with questions. Background and Eligibility Information 1.Project Title: Marrowstone Mize 2.Conservation Futures Acquisition Request: $45,000 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $45,000 4. Please indicate the type of interest contemplated in the acquisition process. !Warranty Deed X Easement —Other(Please describe below.) In whose name will the property title be held after acquisition? Marrowstone Preserve LLC, with a conservation easement held by Jefferson Land Trust 5. Applicant Information Name of Applicant or Organization: Marrowstone Preserve LLC Contact:Anne Mize Address: 1815 11th Ave East, Seattle, WA 98102 Phone:(206) 860-2504 Email:abmize@comcast.net 6. Sponsor Information: (if different than applicant) Organization Name: Jefferson Land Trust Contact: Sarah Spaeth Title: Director, Conservation and Strategic Partnerships Address: 1033 Lawrence Street, Port Townsend, WA 98368 Phone: (360) 379-9501, ext. 101 Email: sspaeth@saveland.org This application was approved by the sponsor's legally responsible body(e.g., board, council, etc.)on February 20, 2018 1 2018 CF Program Application httr//www.co.'etierson.wa.us/560/Consen'ation-Futures-Pro ram 7. Site Location Street Address or Description of Location: The undeveloped Marrowstone Preserve property is located north of the Nordland Store on Schwartz Road Driving Directions from Port Townsend: Travel to Hadlock and take bridge over the cut to Indian Island and on to Marrowstone Island. Travel north on SR 116, past the Nordland Store. Veer to the right onto Schwartz Road and travel 1 mile to property. Property is to the left of the road and is identified by presence of a fence and gate with open pasture and scattered mature trees to the west. Section: 29 Township: 30 Range: 1E Assessor's Parcel Number(s): 021204012, 021291001, 021291035, 953700409, 975901102, 975901101, 975900801, 975900802, 975900803 Please differentiate current and proposed ownership of each APN and indicate if the parcel is to be acquired with CF funds or used as match. All parcels are under the ownership of the Marrowstone Preserve LLC and are proposed for preservation with a conservation easement held by Jefferson Land Trust. Please list the assessed values for each property or APN, as applicable. 021204012 - $166,100 021291001 - $120,100 021291035- $120,100 953700409 - $168,425 975901102 -$18,750 975901101 -$15,000 975900801 -$7,500 975900802 - $15,000 975900803 - $30,000 8. Existing Conditions New Site: Yes No Number of Parcels: 9 Addition to Existing Site: Yes No Acres to Be Acquired: 35.19 Total Project Acreage(if different): Current Zoning: RR 1:10 and RR 1:5 Existing Structures/Facilities: The only structures on site are several bridges over the ponds and wetlands, and a small shed. Any current covenants,easements or restrictions on land use: There are a couple of access easements indicated in the title report Current Use: Undeveloped 2 2018 CF Program Application 1tti://www.co.'efferson.wa.us/56O/Conservation-Futures-Pro ram Waterfront(name of body of water): Numerous wetlands (natural and man-made)on the property. Shoreline(linear feet): Owner Tidelands/Shorelands: 9. Current Property Owner X is is not a willing seller. Project Description 10.In 1,000 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 is seeking funding for purchase of a conservation easement on the -35 acre Marrowstone Preserve LLC property. The property is located on Marrowstone Island, approximately one mile south of Fort Flagler State Park, 1.5 miles north of WSU's Twin Vista Ranch (protected with a CE held by Jefferson Land Trust)and .3 miles NE of a forested property protected with a conservation easement also held by Jefferson Land Trust. Surrounding land use is mostly rural residential, though some larger parcels are managed for timber production with County timber tax designation. The property is in the center of the island and was the southern portion of a golf course that was proposed for the island. There are hints of that history in the presence of a few man-made wetlands and remnant infrastructure, including several bridges, a shed, and sections of decorative split-rail fence. The current property owner stepped in to acquire the property when the former landowner was subject to bankruptcy proceedings. The landowner's goal is to preserve the bulk of the property for wildlife habitat, open space, future agricultural uses and informal public access for island residents to walk and enjoy the existing trail system and scenic open space of the property. The Marrowstone Preserve property consists of mostly open, level pasture/grassland, with remnant forested pockets and scattered mature cedar, fir, Sequoia, birch and cottonwood trees. Not a lot of invasive plants are evident, but a little Scot's broom, Himalayan blackberry, thistle, pampas grass, and a couple of holly can be found scattered throughout. A significant natural wetland complex is located in the center of the property and is oriented north/south onto several other properties as well. WDFW identifies this as "freshwater forested/shrub" Priority Habitat. DNR and County maps indicate a fish- bearing stream flowing south across the property through the wetlands and continuing on to Mystery Bay State Park, but that is not apparent on site. The natural wetlands and two man-made ponds are a draw for local wildlife, including waterfowl, heron, eagles, red-tailed hawk, coyote, and bobcat-signs of which were seen on a recent site visit. WDFW maps communal roosts of Big brown bats in this area as well. Current zoning and parcel configuration would allow for up to 10 residences on the property. The proposed conservation easement will allow and designate one residential building envelope of approximately one acre, located on the west side of tax parcel #953 700 409. Subdivision and the remaining 9 development rights will be extinguished with the easement. Open space and associated 3 2018 CF Program Application htt ://www.co.'efferson.wa.us/560/Conservation-Futures-Pro ram habitat will become even more important as rural residential development continues on Marrowstone Island. As with these properties, there are numerous small parcels on the Island that were platted before zoning was put in place which enable significantly higher densities than the zoning would indicate. It has the potential for being productive farmland under future owners or lessees. Jefferson Land Trust was contacted several years ago about the future of the golf course property, one of few privately-owned large tracts on the Island. Foreclosure of the property a few years ago resulted in some division, and this is an opportunity to arrest that process on a significant acreage before it is divided further. In addition, this landowner is willing to sell a CE for well below market value; an opportunity that is not likely with other owners. A significant bargain sale of the easement is the proposed match for the Conservation Futures request of$45,000. Overarching Goal: Preserve the 35-acre Marrowstone property with a conservation easement that reduces development potential from up to 10 residential rights to one, and that protects the open space, habitat, wetland values as well as future potential for agricultural uses. Objectives 1) Secure Jefferson County Conservation Futures funding for purchase of the conservation easement at a bargain sale rate. 2) Draft conservation easement with landowner. 3) Obtain appraisal to determine value of CE and match for CFF program. 11 Estimate costs below, including the estimated or appraised value of the propert(ies)or property right(s)to be acquired, even if Conservation Futures funds will only cover a portion of the total project cost.In the case of projects involving multiple acquisitions,please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies)to be Acquired: $200,000 Total Estimated Acquisition-related Cost(see Conservation Futures Manual for eligible costs): $25,000 Total Operation and Maintenance Cost: none included at this time Total Project Cost: $225,000 Basis for Estimates(include information about how the property value(s)was determined,anticipated acquisition- related costs,general description of operation and maintenance work to be performed,task list with itemized budget, and anticipated schedule for completion of work): The easement value for the Marrowstone Preserve is estimated to be $200,000. An appraisal will be initiated once we have secured funding for the project. The landowner will be selling the conservation easement at a bargain sale rate of approximately$20,000. If the appraised value of the easement is determined to be higher than the $200,000, we request that the additional match be banked for a future O&M request. 4 2018 CF Program Application htt,://www.co.'efferson.wa.us/560/Conservation-Futures-Pro tram Marrowsone Preserve Project related ---, Timeline Est. Cost costs Conservation easement acquisition (to Spring 2019 $200,000 be acquired at a bargain sale rate) Land acquisition related costs, i.e. 2018 and early 2019 $20,200 appraisal, survey, Baseline document, Stewardship Plans, closing costs i---. 7management 9� - - g Pro ect mane ent,admin and legal ongoing $4,800 ( fees Total i $225,000 Scored Questions 1 a. Sponsor or other organizations X will _will not contribute to acquisition of proposed site and/or operation and maintenance activities. 1 b.If applicable,please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. 1 c.Matching Fund Estimate Acquisition O&M Conservation Futures Funds Requested $45,000 20% Matching Funds/Resources* $180,000 80% Total Project Acquisition Cost $225,000 100% *If a prior acquisition is being proposed as match,please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 d. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? Landowner bargain sale $180,000 Yes No Yes No $ Yes No Yes No $ Yes No Yes No $ Yes No Yes No 5 2018 CF Program Application htt //www.co._efierson.wa.us/560/Conservation-Futures-Protram NOTE: Matching funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation of property or a property right will be considered as a matching resource.Donation of resources for on-going maintenance or stewardship ("in-kind" contributions)are not eligible as a match. 2 a. Sponsoring agency X is _is not prepared to provide long-term stewardship(easement monitoring, maintenance,up-keep,etc.)for the proposed project site. 2 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 conduct stewardship and monitoring, including at least annual monitoring of the property by professional staff and trained volunteers, extensive data collection and management, help with stewardship, enhancement and restoration goals and legal defense of the conservation easements should it become necessary. Jefferson Land Trust has a legal defense fund of over$700,000, and continues to build this fund with each new easement acquisition, recognizing the legal obligation and responsibility of protecting conservation values in perpetuity. In addition, Jefferson Land Trust carries legal defense insurance for conservation easements through a program called Terrafirma, developed through the national Land Trust Alliance (the national umbrella organization for land trusts). This program covers up to $500,000 in legal enforcement costs per conservation easement that Jefferson Land Trust holds and stewards. 3 a.Describe the sponsoring agency's previous or on-going stewardship experience. Over the 29 years since it was formed, Jefferson Land Trust has managed many acquisition projects and has been responsible for conducting or coordinating restoration activities with several project partner organizations, including Jefferson County, NOSC, JCCD, HSCEG and others. The Land Trust holds title to over 500 acres of preserves, including the 135-acre Bulis Forest Preserve, portions of the Quimper Wildlife Corridor, and salmon habitat on Chimacum, Salmon, Snow and Donovan Creeks, the Big Quilcene and Duckabush Rivers. We also hold 58 conservation easements on nearly 3000 acres, and have helped with the preservation and stewardship of another 12,900 acres in Jefferson County. Stewardship activities are carried out by professional staff with the assistance of volunteer Preserve Stewards. The Hoh River Trust and Washington State Parks contract with Jefferson Land Trust to monitor and steward nearly 7400 acres of land under their control. In addition, Jefferson Land Trust stewards land owned by Jefferson County, the City of Port Townsend and the Department of Natural Resources. Jefferson Land Trust stewardship and monitoring protocols were developed with the guidance of the Land Trust Alliance and adherence to those protocols is one of the requirements for our national accreditation. 3 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 sponsored many applications on behalf of private landowners interested in preserving their property through sale of a conservation easement, or as an applicant and sponsor for fee interest purchase of properties from willing sellers. These projects include: 6 2018 CF Program Application htt)://www.co.-efferson.wa.us/560/Conservation-Futures-Pro/ram Sur,£old Farm, 2003: Quimper Wildlife Corridor, 2004; East Tarboo Creek Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007; Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Ruck 2010; Quimper Wildlife Corridor 2010; Tamanowas Rock 2010; Chimacum Creek Carleson 2011; Winona Basin - Bloedel 2011; L. Brown 2012; Boulton Farm 2012; Quimper Wildlife Corridor and Short Family Farm 2013; Quimper Wildlife Corridor and Snow Creek Irvin and Jenks, 2014; Midori Farm, 2015; QWC 2016 Addition, Tarboo Creek, Farm and Forest 2016; Serendipity Farm, Snow Creek Taylor and Tarboo lglitzin 2017. 4 a.Property X can_cannot feasibly be acquired in a timely fashion with available resources. 4 b.Necessary commitments and agreements are X are not in place. 4 c.All parties X are are not in agreement on the cost of acquisition. If"not"to any of the above,please explain below. Once funding is secured, we will begin drafting the conservation easement document in partnership with the landowner. The landowner is eager to complete the preservation effort, and is in general agreement with the Land Trust on the provisions of the easement. We will work out the details, followed by the appraisal process and survey of the building envelope. We hope to close on this in early to mid2019. 5.The proposed acquisition_is specifically identified in an adopted open space,conservation,or resource preservation program or plan,or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the website of the plan if available or include the plan with this application. X 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. Jefferson Land Trust's Conservation Plan assigns 1 and 2 (of a possible 4)habitat priority layers on this property, and Marrowstone Island is specified as a priority for farmland protection. Chapter 3 of the Jefferson County Comprehensive Plan enumerates the County's goal "to protect rural character and prevent low-density sprawl". Chapter 4 observes "Natural resource lands provide important environmental functions, including surface water protection, habitat enhancement, and ground water recharge." and Chapter 5 opens with Open spaces help conserve natural resources; protect environmentally sensitive areas; provide aesthetic, scenic and recreational benefits; and preserve cultural and historic resources. Therefore, the preservation of open space is important for the County's residents and visitors." The Washington Department of Fish and Wildlife Priority Species and Habitat map indicates the wetland on the property as Priority Habitat under the national wetlands inventory. 6. Conservation Opportunity or Threat: 6 a.The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 6 b. If applicable,please carefully describe the nature and immediacy of the opportunity or threat,and any unique qualities about the site. 7 2018 CF Program Application htt ://www.co.'efferson.wa.us/560/Conservation-Futures-Pro ram It has been the intention of the current landowner to preserve the property ever since she was able to acquire it through the bankruptcy proceedings of the former landowner. We have this window of opportunity to work with a committed landowner who is willing to donate the majority of the conservation easement value as match for the Conservation Futures grant request.The strong real estate market, combined with the availability of PUD water has increased Island development pressure. and the nature of this property would make it desirable for additional residential uses. With current County zoning and grandfathered parcels, the property could be divided and developed for up to 10 residential units. With the allowed density, open space, wildlife habitat, wetland function and water quality would be impacted, and the future potential for use of the property for agricultural production would be limited or lost. 7.The proposed acquisition: 7 a.X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened,Endangered or Sensitive species. 7 b.X provides habitat for a variety of native flora or fauna species. 7 c.X contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above,please describe and list the Priority Habitat(s)and Threatened, Endangered, or Sensitive.species below, and cite or provide documentation of species'use.' The mix of topography and vegetation on the property, i.e. open pasture, open water, wetland shrub, standing snags, and mature trees makes for a diverse mix of habitat types for multiple species. WDFW identifies the property as providing communal roost habitat for the Big brown bat, which is a PHS listed species. During site visits to the property, we have noted that the wetland system is a magnet for numerous species of birds, including a flock of herons, a pair of eagles and other waterfowl. Other island wildlife species have been noted to use the property, including black-tailed deer, cougar, bobcat, coyote, voles, moles, and otter. One reason for Jefferson Land Trust's interest in this property is to help establish protected open space and habitat on Marrowstone. With the Island's narrowness, fairly uniform topography, and rural residential development, opportunities for connective corridors are limited. 7 d.Does the current owner participate in conservation programs that enhance wildlife habitat?If so,please provide details. The current landowner is not currently involved with specific programs that enhance wildlife habitat, but is very committed to habitat preservation and future enhancement activities. It is that deep interest that has led to Jefferson Land Trust involvement in the property. The landowner is very open to management suggestions that the Land Trust and other organizations and/or private consultants may provide as we get to know the property better. These may include tips and techniques for enhancing forest health and resiliency; wetland and pond enhancement strategies and agricultural best management practices that contribute to wildlife habitat at such time agricultural rights are exercised. 1 See,for example,http://www.dnr.wa.uov/researchscience/topics/naturalheritacse/pages/amp_nh.aspx http://www.wdfw.wa.eov/conservation/phs/list/ http://www l.dnr.wa.gov/nhp/refdesk/plants.html http://www/.dnr.wa. ov/nhp/refdeskJpubs/wa_ecoloical=s‘stems.pdf 8 2018 CF Program Application htta://www.co.iefferson.wa.us/560/Conservation-Futures-Pro ram 8. Describe to what degree the project protects habitat for anadromous fish species(for example:marine snorennes, streauvrnvcr corridors including meander zones, and riparian buffers).Please provide documentation and maps that demonstrate the location,quality and extent of the existing buffer and adjoining habitat. NA 9 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. The landowner is not currently farming but is open to agricultural uses of the property by future landowners or lessees. All soils are classified by the NRCS as either'farmland of statewide importance' or'prime farmland if drained'. Neighboring lands are being used for commercial and hobby agricultural production. The other—39-acre half of the proposed golf course property is currently in sheep production, and was, until last year, the site of Moonlight Farm pork operations.WSU operates Twin Vista Ranch, located south of the Marrowstone Preserve by approximately 1.5 miles, and is eager to see additional lands preserved for their agricultural potential. 9 b.Describe any current or future management practices that promote the preservation of soil and water quality and good watershed function on the farm. The proposed conservation easement design will include wetland and pond buffer zones designed to protect water quality. The ponds and wetland areas retain precipitation so it can percolate and recharge groundwater in an area that is recognized on the County GIS system as susceptible aquifer recharge area and at high risk for seawater intrusion. 9 c.Describe how the owner employs agricultural management practices that will protect or enhance wildlife habitat. As mentioned above, the proposed conservation easement will buffer the wetland habitats from agricultural uses that will protect wildlife habitat as well as water quality. The easement design will also designate specific zones on the property, and a Stewardship Plan developed by the Land Trust and the landowner will identify recommendations and activities designed to enhance wildlife habitat. 10 a.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. No timber harvest is planned for the property at this time. DNR indicates that a majority of the property is Site Class III, with smaller parts Site Class IV and "marginal forest products or non-commercial forest" classification, so working forest would be possible, but probably not highly productive. The landowner may be open to augmenting and enhancing the forest composition with additional plantings to diversify species and age classes. The Stewardship Plan for the property may include guidance for activities to benefit forest ecosystem health, habitat and water quality functions. 10 b.Describe the silvicultural management practices that promote the preservation of soil and water quality and good watershed function on the property. See above 10 c.Describe the owner's timber harvest plan and harvest methods that will protect or enhance wildlife habitat on the property. 9 2018 CF Program Application httl://www.co.'etTerson.wa.us/560/Conservation-Futures-Pro ram NA 11.a.Describe how the proposed acquisition benefits primarily a X local area broad county area including the area served,the nature of the benefit,the jurisdictions involved,and the populations served. Primary beneficiaries of this open space, habitat, agricultural land and water protection effort will be Island residents. As described below in#12, controlled public access is anticipated,izA.A ,..-NA %). .., be publicized in ways that would encourage heavy use that could harm habitat values and increase maintenance requirements. 11 b. Is the project located in an area that is under-represented by CF funded Projects?Areas that Conservation Futures has not been able to support to date include Marrowstone Island, Toandos Peninsula, Dosewallips Valley,Bolton Peninsula, and the West End. Yes, the project is on located on Marrowstone Island, which is an area that has not had projects funded by the Conservation Futures Fund. 12.Describe the educational or interpretive opportunities that exist for providing public access,educational or interpretive displays(signage,kiosks, etc.)on the proposed site,including any plans to provide those improvements and any plans for public accessibility.2 The landowner is receptive to providing controlled public access for quiet enjoyment, observation and educational purposes. She currently allows Marrowstone residents and others to walk the trails and enjoy the scenic beauty of the property. She may be open to placing interpretive signs in key locations —details will be worked out once the funding for the easement is secured. 13.The proposed acquisition_includes historic or culturally significant resources'and is registered with the National Register of Historic Places,or an equivalent program. _is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above,please describe below, and cite or provide documentation of the historical or cultural resources. NA Verification 14. 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. Initials Date 2 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 10 2018 CF Program Application htt is//www.co.'effeison.wa.us/560/Conservation-Futures-Program 15. If, three years after the date funding is approved by the Board of County Commissioners,the applicants have —t alga 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. _ Initialse3j2. /I8 Date 11 2018 CF Program Application hit ://www.co.'eiterson.wa.us!560/Conservation-Futures-Pro=rain Landowner Acknowledgement Form Landowner Information Name of Landowner: Landowner Contact Information: ❑ Mr. ❑ Ms. Title: First Name: ANno Last Name: M t Contact Mailing Address: list 5 111.'Atte_GI, St.c.*+t, 1 9 sio D 2. Contact E-Mail Address: c.bm aeCvY,.,cr�sf ►���r- Property Address or Location: NIG-rvowshskD V�s-vv'� LAX._ is the legal owner of property described in this grant application. 2. I am aware that the project is being proposed on my property. 3. If the grant is successfully awarded,I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the project sponsor,I will recuse myself from decisions made by the project sponsor to work on or purchase my property. 312(/201S S Landowner Signature Date Project Sponsor Information Project Name: Marrowstone Preserve LLC Project Applicant Contact Information:Jefferson Land Trust ❑ Mr. ❑ Ms. Title First Name: Sarah Last Name: Spaeth Mailing Address:1033 Lawrence St, Port Townsend,WA E-Mail Address:sspaethL,saveland.or j a .1 - c . 2 Z U ii ! H F d. 2z 3L-r 8 3 �° 3 z" it —_ o P N Q • C e t iccicc W > co CL O p N N o Z � •u -E. d_U' o _ Qm O m ca 2o co N N 0_ Q P2 m O N - v TO 2 C - 0 o _• CEN (0 o_(0 •o . 4) ` Q. m N E o:a Q C N U U j 3 i cd 12 fl o _ N LL -2 N m n - / { b WY O �. In CP- d - �_mi ,\ ' \ 6� 4 ,` ,,, -...- N m E ., _,` �' "TMs . -J U= 0°n s� r ,rte, (n 0 S. -; ; a \ - ' '4,.../ �' 5Af`�- ' x.41 C \i, — ...AateV : V n ,,, 1 ■ _1 rA a „ter vrt r .`_y.. -e A _Q .", v. 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