HomeMy WebLinkAbout2021 Big Quilcene River - Moon Valley Acquisitions Final Application1
2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
Please complete the following application in its entirety. Be sure to answer “N/A” for questions that don’t apply
to the project. Incomplete applications will not be accepted for consideration.
Unless directed otherwise, use as much space as needed to answer each question.
Contact program staff at 379-4498 or tpokorny@co.jefferson.wa.us with questions.
Background and Eligibility Information
1. Project Title: Big Quilcene River – Moon Valley Acquisitions
2. Conservation Futures Acquisition Request: $89,500.00
Conservation Futures O&M Request: $0
3. Total Conservation Futures Request: $89,500.00
4. Please indicate the type of interest contemplated in the acquisition process.
X Warranty Deed __ Easement __ Other (Please describe below.)
In whose name will the property title be held after acquisition?
Property Title will initially be held by Hood Canal Salmon Enhancement Group after acquisition.
Property Title will be transferred post-restoration.
5. Applicant Information
Name of Applicant or Organization: Hood Canal Salmon Enhancement Group (HCSEG)
Contact: Gus Johnson
Title: Project Manager
Address: PO BOX 2169 Belfair, WA 98528
Phone: (360) 275-3575, ext. 115 Fax: (_____) _____-________, ext. ____
Email: gus@pnwsalmoncenter.org
6. Sponsor Information: (if different than applicant)
Organization Name: Jefferson County Environmental Public Health
Contact: Tami Pokorny
Title: Natural Resources Program Coordinator
Address: 615 Sheridan St. Port Townsend, WA 98368
Phone: (360) 316-9870, ext. ____ Fax: (_____) _____-________, ext. ____
Email: tpokorny@co.jefferson.wa.us
This application was approved by the sponsor’s legally responsible body (e.g., board, council, etc.) on:
March 17th, 2021.
2021 Jefferson County Conservation Futures Program
Property Acquisition and/or
Operations and Maintenance Project Application
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
7. Site Location
Street Address or Description of Location: 330 Glen Logie RD, Quilcene WA 98376
Driving Directions from Port Townsend: Drive south to Quilcene WA. From Hwy 101, turn onto Glen Logie Rd.
Property is located at end of road.
Section: 23
Township: 27N
Range: 2W
Assessor’s Parcel Number(s): 702233001, 702233006
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.
#702233001 – Currently owned by Cynthia and Michael Pollard. Proposed ownership HCSEG. Parcel to be
acquired with CF funds.
#702233006 - Currently owned by Mark Baclawski. Proposed ownership HCSEG. Parcel to be acquired with CF
funds.
Please list the assessed values for each property or APN, as applicable.
Assessed values according to title report:
#702233001 - $171,408.00
#702233004 - $53,396.00
#702233005 - $78,065.00
#702233006 - $41,477.00
Appraisals and review appraisals were completed on both properties in August 2020.
#702233001 - $340,000 (floodplain section of parcel only)
#702233006 - $290,000 (including parts of 702233005 and 702233004. Boundary line adjustment in process).
8. Existing Conditions
New Site: Yes No __________________________ Number of Parcels: 2
Addition to Existing Site: Yes No ______________ Acres to Be Acquired: 75.1 acres
Total Project Acreage (if different): 97.1 acres Current Zoning: AL-20 - Local Agriculture
Existing Structures/Facilities: None
Any current covenants, easements or restrictions on land use: Parcel 702233005: Easement 2081764 State of
Washington (25’ strip adjacent to river left bank for public access); Conservation Easement 549560- Jefferson
Land Trust
Current Use: Designated Forest Land / Vacant
Waterfront (name of body of water): Big Quilcene River
Shoreline (linear feet): 4,367 feet
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
Owner Tidelands/Shorelands:
9. Current Property Owner __ 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 County Public Health, in close partnership with the Hood Canal Salmon Enhancement Group (HCSEG
with headquarters in Belfair, WA) is seeking funding from the Jefferson County Conservation Futures Fund to
purchase areas of historic floodplain along the Big Quilcene River in the Moon Valley reach and protect this land
as open space. These acquisitions include a 31 acre portion of the existing 84 acre Baclawski parcels, and a 45
acre portion of the existing 49 acre Pollard parcel. These portions of the existing parcels encompass the areas
closest to the river and offer the greatest potential benefits for conservation and restoration. A boundary line
adjustment will be needed to officially create the boundaries of these acquisitions, and a boundary line adjustment
application has recently been submitted for the Baclawski portion.
The purchase of these two newly created parcels of vacant land will conserve over 75 acres of historic floodplain,
almost a mile of riverfront and are adjacent to a similar 22-acre parcel that HCSEG acquired in 2019. These
acquisitions are not only important because of the inherent attributes and value of the land. HCSEG plans to use
this land as the footprint for a large-scale salmon habitat restoration project in the Moon Valley reach in the next
few years.
The overarching goal of the Moon Valley Reach Project is to reconnect the Big Quilcene River to its historic
floodplain in Moon Valley. By reconnecting the river to its historic floodplain, these three project goals will be
met:
1. Restore salmon habitat within the reach with a focus on ESA listen Hood Canal Summer Chum.
2. Normalize sediment dynamics in the lower Big Quilcene River and reduce flood related impacts in the
Quilcene community.
3. Provide increased recreational opportunities for the public.
The topography in this area is essentially level, extensive floodplain with steep banks to the south side of the river
and at the northern extent of the properties. The surrounding land use is forestry and rural
residential. The Hwy 101 bridge over the Quilcene River and the Quilcene National Fish Hatchery are
located upstream of the project area. A 25’ DFW access easement and trail, used largely during the
fishing season, runs through both of the subject parcels along the north bank of the river and ultimately to the
community of Quilcene in the vicinity of the county’s Riverside Park. A parking area to
serve this access route is located just upstream of the Hwy 101 bridge.
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
Lawn and pasture grasses occupy a large portion of the project area. The riparian zone is native conifer forest
along the south bank, where steep slopes have prevented development of the land. Along the north bank, where
the historical land use is agriculture, the riparian buffer is a mix of native trees of different stages of maturity and
areas dominated by noxious weeds.
The Pollard property (702233001) was formally pastureland. The large meadow is now used as a hayfield and
harvested at least once each year. Surrounding the field are mature stands of trees and riparian areas of the Big
Quilcene River. The Baclawski property (702233006) was formally pasture and
forestland. It now includes protected open space, a young fruit and nut orchard, and mature stands of forest. A
conservation easement held by the Jefferson Land Trust on approximately 18 acres of land spanning the river
includes 1,750’ of frontage on the north bank and 575’ on the south bank.
In the Moon Valley Reach, the Big Quilcene River was moved, straightened, and diked to support agricultural use
of the floodplain. As a result of the altered stream hydraulics and extensive diking along the north bank, the
channel is now incised to a depth of up to ten feet. The artificially steep stream gradient along with the scouring
force of higher flood velocities has resulted in a coarse cobble/boulder streambed lacking spawning gravels
suitable for ESA-listed summer chum salmon. This has also contributed to sediment aggradation problems
downstream in Quilcene and beyond the river mouth where an extensive delta cone of sediment has formed.
The Moon Valley section of the Big Quilcene River has been identified as a target for restoration in the Summer
Chum Recovery Plan and in the Hood Canal Coordinating Council's 3-Year Work Program. Specifically,
restoration and protection of freshwater reaches in the lower watershed are identified as the highest priority action
for summer chum recovery in the Big Quilcene River, with habitat diversity, channel stability, flow moderation,
and sediment load identified as key features for restoration.
The project will allow for improved salmon habitat in the lower watershed and estuary and contribute to
restoration efforts already underway there by attenuating floods, reducing downstream sediment transport, and
contributing to temperature and flow regulation. Restoration and protection of the Moon Valley floodplain will
contribute to improved water quality, better rearing conditions for juvenile salmon, expanded habitat for other
wildlife (including birds and beavers), and an enhanced trail system and outdoor experiences for students,
recreationists, and visitors in Quilcene.
The Moon Valley Restoration project has already acquired one of the three parcels needed for the project
footprint. This 22-acre property was acquired in 2019 and is directly upstream of the two parcels whose
acquisition is discussed in this project description. All structures and most utilities on site have been removed, and
the property has generally been converted back to a natural state. A 30% restoration design has also been
completed. HCSEG has submitted a $5 million dollar grant request to the Floodplains by Design (FbD) program
to fund final design and construction of the project. The request was ranked #9 and at this time has a high
likelihood of being funded. The acquisition of these two parcels of land is the final piece needed to proceed with
this important restoration project. Matching funds for this acquisition will come from other grant sources,
specifically the Salmon Recovery Funding Board (SRFB) and Floodplains by Design (FbD).
Throughout the duration of the project, HCSEG has partnered with Jefferson County Public Health, the
Jamestown S’Klallam Tribe, and the United States Forest Service. These agencies have provided numerous types
of support including technical review, land acquisition assistance, and general project planning. The Jefferson
County Board of County Commissioners wrote a long and detailed letter of support for the Moon Valley project
in November of 2020.
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.
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
Estimated or Appraised Value of Propert(ies) to be Acquired:
702233001 appraised cost of acquisition area: $340,000.00
702233006 appraised cost of acquisition area: $289,000.00
Total Estimated Acquisition-related Cost (see Conservation Futures Manual for eligible costs):
702233001 estimated acquisition-related cost: $53,205.00
702233006 estimated acquisition-related cost: $53,205.00
Total Operation and Maintenance Cost:
702233001 estimated operation and maintenance cost: $21,690.00
702233006 estimated operation and maintenance cost: $21,690.00
Total Project Cost:
702233001 estimated total project cost: $434,735.00
702233006 estimated total project cost: $383,735.00
Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition-
related costs, general description of operation and maintenance work to be performed, task list with itemized
budget, and anticipated schedule for completion of work):
Property values are based off of recently completed appraisals (September 2020). Anticipated acquisition related
costs are based off of project specific quotes, and costs from similar projects recently completed in the Quilcene
area. Operation and maintenance work consists of creating and implementing a stewardship plan, controlling
noxious weeds, and installing fencing and signs along the property boundary. Please note that no O&M funding is
requested from the Conservation Futures grant. Anticipated schedule for completion of work hinges directly on
property sale closing date occurs. All work is anticipated to be completed within 1 year of property closing date.
Please see attached budget spreadsheet for detailed budget explanation.
O & M only go to question #15:
Scored Questions
1 a. Sponsor or other organizations __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.
Around 89% of this acquisition project will be funded by Salmon Recovery Fund Board (SRFB) or
Floodplains by Design (FbD). This largely encompassing amount of other funding will reduce the need for
CF program funds, and result in only 11% of the project being funded by the CF program.
1 c. Matching Fund Estimate Acquisition O&M %
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
Conservation Futures Funds Requested $89,500.00 $0.00 10.9%
Matching Funds/Resources* $645,910.00 $83,059.00 89.1%
Total Project Acquisition Cost $735,410.00 $83,059.00 100%
* 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?
SRFB $ 289,184.00 Yes No _________ Yes No ________
FbD $ 41,335.00 Yes No _________ Yes No ________
SRFB $ 404,891.00 Yes No 9/22/21 Yes No 12/31/21
______________________ $_________ Yes No _________ Yes No ________
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 __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.
Hood Canal Salmon Enhancement Group will hold the properties and steward them utilizing grant funds until all
phases of restoration are completed. Both the Skokomish and Jamestown S’Klallam Tribes as well as Jefferson
Land Trust have expressed interest in taking title post-restoration and in providing long-term stewardship
consistent with existing conservation and public access easements and state grant requirements (Deed of Right).
Jefferson Land Trust stewards the existing conservation easement on the Baclawski parcel and would be closely
involved if the conservation easement on the Baclawski property is expanded or, otherwise, requires amendment.
3 a. Describe the sponsoring agency’s previous or on-going stewardship experience.
Jefferson County has acquired, restored and/or stewards floodplain properties on the Dosewallips, Duckabush
and Big Quilcene River (for the purpose of salmon recovery) in coordination with partner agencies and
organizations.
Hood Canal Salmon Enhancement Group has acquired, restored, and stewards many properties across the Hood
Canal watershed including a property neighboring the proposed acquisitions.
3 b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for
Conservation Futures funding?
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
_____No, neither the sponsor nor applicant has been involved in a project previously approved for
Conservation Futures funds.
_____Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for
Conservation Futures funds. Please provide details:
HCSEG has been awarded funds from the Jefferson County Conservation Futures grant for the Moon Valley
project twice before. $2,500 was awarded in 2016 and used for the purchase of the Whittaker parcel in 2018.
Another $2,500 was awarded in 2018 for the upcoming purchase of the Baclawski parcel.
4 a. Property __can __cannot feasibly be acquired in a timely fashion with available resources.
4 b. Necessary commitments and agreements __are __are not in place.
4 c. All parties __are __are not in agreement on the cost of acquisition.
If “not” to any of the above, please explain below.
HCSEG is currently working with Mark Baclawski to negotiate a purchase and sale agreement. The
finalization of this PSA is imminent, as we are just waiting for the boundary line adjustment to be completed
in order to proceed.
HCSEG has had ongoing positive discussions with the Pollards about the acquisition of their land within the
floodplain. The Pollards have recently signed a notice of just compensation for the appraised price of the
proposed acquisition area, and have expressed interest in making a sale once funding is in place.
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.
__complements an adopted open space or conservation plan, but is not specifically identified. Please describe
below, and describe how the proposed acquisition is consistent with the plan.
__is a stand-alone project.
• The lower river is identified in local salmon recovery chapter “Guidance for Prioritization” (see
https://hcccwagov.app.box.com/s/ru01xmw6q5yga4b2c5mo9f19km5bvxkt).
• The lower river is identified in Total Maximum Daily Load (TMDL) implementation plan (or through
consultation with TMDL lead for Ecology) as a high priority for protection and/or restoration of riparian
cover.
• The lower river is identified in Pollution Identification and Correction (PIC) planning process (or through
consultation with PIC leads) as a high priority for protection and/or restoration and protection and/or
restoration of riparian cover can contribute to stated goals for shellfish beds.
6. Conservation Opportunity or Threat:
6 a. The proposed acquisition site __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.
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
This is a unique opportunity to acquire a highly significant stretch of the Big Quilcene River for
comprehensive conservation and restoration. The acquisition phase is the first phase of a project that will
result in multiple positive benefits and contribute significantly to the overall productivity of the Big Quilcene
River. Opportunities to work with adjacent willing sellers of such high-potential properties to help reverse
mistakes of the past on a large scale are exceedingly rare.
7. Summarize the project’s conservation values and how the CF funds requested support these values.
The historic floodplain in Moon Valley has enormous conservation and restoration potential. Purchasing this
significant area and placing it into conservation will help to ensure that it cannot be developed, and will be
preserved in perpetuity for the benefit of fish, wildlife, and public recreation. Conservation values include
increasing both natural habitat and the abundance of fish and wildlife populations, including the ESA listed Hood
Canal Summer Chum and Puget Sound Steelhead. Conservation Futures funds will aid in making this vision a
reality by contributing to the purchase price of the Moon Valley floodplain area.
8. The proposed acquisition:
8 a.____ provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened,
Endangered or Sensitive species.
8 b.____ provides habitat for a variety of native flora or fauna species.
8 c.____ 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.1
ESA-listed species utilizing the Big Quilcene River include:
-Hood Canal Summer Chum
-Puget Sound Summer and Winter Steelhead
Species use documented at: http://www.ecy.wa.gov/services/gis/maps/wria/sasi/sasi.htm
ESA-listed spotted owls as well as bald eagles, harlequin ducks and cutthroat trout occur in the area. These
acquisitions will enhance the riparian wildlife corridor linking Olympic National Forest and Olympic
National Park with Quilcene Bay and Hood Canal.
8 d. Does the current owner participate in conservation programs that enhance wildlife habitat? If so, please
provide details.
The Baclawskis have placed 18 acres of their land in a conservation easement with Jefferson Land Trust. The
terms of this conservation easement serve to enhance wildlife habitat by preventing any future development in the
easement area.
9. Describe to what degree the project protects habitat for anadromous fish species (for example: marine
shorelines, stream/river 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.
The main focus of the Moon Valley restoration project is to improve, create, and protect habitat for all
anadromous fish in the Big Quilcene River, including the ESA listed Hood Canal Summer Chum and Puget
1 See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp_nh.aspx
http://www.wdfw.wa.gov/conservation/phs/list/
http://www1.dnr.wa.gov/nhp/refdesk/plants.html
http://www1.dnr.wa.gov/nhp/refdesk/pubs/wa_ecological_systems.pdf
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
Sound Steelhead. Before anthropogenic stresses occurred, Moon Valley was one of the most productive areas for
salmon on the entire river. In the early 1900s, the river was artificially constrained against the far side of the
valley in order to create pastureland. When this happened, the river’s access to its floodplain was severed, and
much of the existing salmon habitat was destroyed. The purchase of these proposed acquisitions will allow for
restoration work to take place in Moon Valley. The implementation of this restoration project will restore habitat
forming processes and features in the valley, bringing it back to most of its pre-disturbance potential for
productivity. The area of the acquisitions proposed for funding will allow for a large meander belt and extensive
riparian buffers to be placed in the valley. Reconnecting the river to its historic floodplain will create a number of
desirable habitat features to the main river channel, and develop side channel and off channel habitat. Decreased
flow velocities resulting from restoration will allow for spawning gravels to remain in the reach and reduce the
scour potential of incubating salmon eggs.
10 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.
No agricultural uses are planned for either property as part of this project. Topsoil was removed from portions of
the Baclawski parcels by a previous owner, and efforts to establish a fruit and nut orchard on that property have
met challenges due to the drought-prone, rocky character of the remaining soil. Hay is currently cut from the field
on the Pollard property at least once a year. Agriculture is largely incompatible with a naturally functioning Big
Quilcene River floodplain as evidenced by efforts of the past to move, straighten, and dike the river channel. This
project is the first step in recreating the historic floodway and channel migration zone of the Big Quilcene River.
It will benefit habitat for ESA-listed salmon while lessening flood impacts in Quilcene, improving forest health
and water quality, restoring native soils, improving hydrologic and geomorphic function, promoting carbon
sequestration, and enhancing aquifer recharge and summertime flows.
10 b. Describe the current owner’s record of implementing management practices that preserves and/or enhances
soil, water quality, watershed function and wildlife habitat on the farm.
N/A
10 c. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality,
watershed function and wildlife habitat.
Acquisition of the proposed properties will allow for comprehensive restoration activities in Moon Valley. By
restoring the Big Quilcene River’s access to its historic floodplain in Moon Valley, the reach will once again
become a sediment deposition/storage reach. The ability for floodwaters to deposit sediments in the reach will
steadily enhance soil quality and also improve water quality downstream. The restored floodplain will serve its
intended function in the watershed which include decreased flow velocities and improved/increased fish, wildlife,
and riparian habitat.
11 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 commercial silviculture is planned or anticipated. The Baclawski conservation easement precludes the
pruning, cutting down, or other destruction or removal of live and dead trees and other vegetation within the
conservation zones. Commercial harvest of any kind is unlikely to be consistent with the terms of the RCO Deed
of Right for Salmon Recovery or other grant-related rules and requirements, and would go against the objectives
of our habitat restoration project.
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2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program
11 b. Describe the current owner’s record of implementing management practices that preserves and /or enhances
soil, water quality, watershed function and wildlife habitat.
N/A
11 c. Describe how the property acquisition or proposed easement will likely preserve and/or enhance soil, water
quality, watershed function and wildlife habitat.
Acquisition of the proposed properties will allow for comprehensive restoration activities in Moon Valley. Much
of the acquisition area is pastureland, and by planting it with the appropriate native trees and shrubs, a vibrant
riparian forest will once again exist in Moon Valley. The proposed restoration plan will lengthen the river channel
though the valley, which will decrease flow velocities and encourage sediment deposition in the reach. A newly
lengthened river channel and riparian forest will enhance soil and water quality, improve watershed function, and
restore fish and wildlife habitat.
12 a. Describe how the proposed acquisition benefits primarily a __local area __broad county area including the
area served, the nature of the benefit, the jurisdictions involved, and the populations served.
As a high priority restoration goal for the Big Quilcene River, this project will support the productivity of the
lower river with benefits cascading into the estuary and Hood Canal. Restoring healthy sediment dynamics in
Moon Valley will significantly reduce the ongoing issues with increased sediment deposition lower in the river
where it flows though the community of Quilcene and enters Quilcene Bay. It is hoped that this project, in
conjunction with a separate on-going floodplain restoration program in the lower mile of the river will lead to
additional intervening acquisitions and/or conservation easements to ultimately lead to the best possible
restoration outcomes ecologically for salmon, and also to meet the needs of the community for recreation,
educational opportunities and economic vitality.
12 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.
No
13. 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 established WDFW pedestrian corridor provides public access along the Big Quilcene River in Moon Valley.
After restoration is complete, a trail complete with educational signage is planned to be placed on the WDFW
corridor to improve access and educational opportunities.
14. The proposed acquisition __ includes historic or culturally significant resources 3 and
__ is registered with the National Register of Historic Places, or an equivalent program.
__ is recognized locally has having historic or cultural resources.
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
Appendix A
Project Attachments
Overall Project Cost Conservation Futures
Grant Request Match
Item Qty Rate
Land and improvements (Pollard)1 $360,000 $340,000.00 $44,750.00 $295,250.00
Land and improvements (Baclawski)1 $290,000.00 $289,000.00 $44,750.00 $244,250.00
Appraisal 2 $7,500.00 $15,000.00 $15,000.00
Appraisal Review 2 $1,000.00 $2,000.00 $2,000.00
Title Reports and Insurance 2 $575.00 $1,150.00 $1,150.00
Closing Costs and Taxes 2 $14,030 $28,060 $28,060.00
Recording Fees 2 $130 $260.00 $260.00
Hazardous substance Survey / Report 2 $4,025.00 $8,050.00 $8,050.00
Boundary Line Survey / Adjustment 2 $3,795.00 $7,590 $7,590.00
Cultural Resource Survey 2 $22,150.00 $44,300.00 $44,300.00
Total $735,410.00 $89,500.00 $645,910.00
Item Qty Rate
Stewardship Plan 2 $7,425.00 $14,950.00 0 $14,950.00
Signs 4 $1,725.00 $6,900.00 0 $6,900.00
Noxious Weed Control 1 $7,550.00 $7,550.00 0 $7,550.00
Fencing 1 $13,979.00 $13,979.00 0 $13,979.00
Total $43,379.00 0 $43,379.00
Item Qty Rate
Project Administration 1 $39,680.00 $39,680.00 0 $39,680.00
Total $39,680.00 0 $39,680.00
Grand Total $818,469.00 $89,500.00 $728,969.00
Overall Project Cost Conservation Futures
Grant Request Match
Property Costs
Operations and Maitenance Costs
Administrative Costs
702233005
702233001
702234001
702224008
991700001
702233004
702221002
702233006
702274002
702233006
702262000702262002 702262001
702232002 702232022
702233001
702231012702232004702232017702232021702232021 702231030
O 0 500 1,000 1,500 2,000250Feet
Legend
Proposed Aquisition 30.5334 Acres
Baclawski Parcels
Proposed Aquistion
Jefferson County Parcels
B i g Q u i l c e n e R i v e r M o o n Va l l e y P r o j e c t : B a c l a w s k i P r o p e r t y A q u i s i t i o n . J u l y, 2 0 2 0
Hood Canal Salmon Enhancement Group
CYNTHIA L POLLARD
WORTHINGTON WOODLANDS LLC
ROBERT W BOLANDER
MARK BACLAWSKI
MARK BACLAWSKI
CYNTHIA L POLLARD
MARK BACLAWSKI
KENNETH L MC EDWARDS
SHELBY J COLYOTT
RYAN NEWMAN
BASECAMPS OF AMERICA
CYNTHIA L POLLARDBASECAMPS OF AMERICA
JEFFERSON COUNTY
CYNTHIA L POLLARD
TIMOTHY L LOVE
O 0 500 1,000 1,500 2,000250Feet
B i g Q u i l c e n e R i v e r M o o n Va l l e y P r o j e c t : P o l l a r d P r o p e r t y F l o o d p l a i n A q u i s i t i o n
Hood Canal Salmon Enhancement Group
Legend
Jefferson County Parcels
Proposed Aquistion
44.59 Acres
Pollard Remaining Property
3.95 Acres
Baclawski
Pollard
HCSEG
Aerial View of Moon Valley
WHITTAKER
BROCKOPP
WITTDZIUBADUTTON
MORGAN
WHITTAKER
BACLAWSKI
POLLARD
SKOKOMISH INDIAN TRIBE
ANDERSON
MAHAN
BACLAWSKI
BACLAWSKI
POLLARDNEWMAN
POLLARD
BACLAWSKI
BOLANDER
ANDERSON JEFFERSON COUNTYHIGHWAY 101LAND USE #
CHECKED
SHEET NUMBER
PROJECT #
SHEET TITLE
DESIGNED
DATE
DRAWN DESCRIPTION#DATEBYFile: T:\Geomorph\ALL PROJECTS\Moon Valley\CAD\Sheets\MNV-Planting Plan.dwg, Tab: 11 PLANTING PLANPlot Stamp: 6/10/2020 4:24:44 PM - Farnaz AslkhodapasandPLANTING PLANMOON VALLEY RESTORATIONHOOD CANAL SALMON ENHANCEMENT GROUPJEFFERSON COUNTY----
11
06/05/2020
FA
DE, M
SM
E318303401
CONCEPTUAL DESIGN----PRELIMINARYNOT FORCONSTRUCTION0
SCALE
200200100 SEATTLE801 SECOND AVE, STE 1150, SEATTLE, WA 98104TEL: (206) 269-0104 FAX: (206) 269-0098www.cardno.comPROPOSED PROJECT BOUNDARY
NOTE:
1- AERIAL IMAGERY SOURCE: NATIONAL AGRICULTURAL IMAGERY PROGRAM (NAIP) PUBLISHED ON 12/04/2017.
2- ORDINARY HIGH WATER MARK WAS TAKEN FROM HERRERA 2010 AS-BUILT PLANS.
3- PARCEL BOUNDARIES WERE DOWNLOADED FROM JEFFERSON COUNTY GIS PORTAL.
BIG QUILCENE RIVER
HIGHWAY 101
BRIDGE
PROPOSED RIPARIAN PLANTING ZONE
PROPOSED CHANNEL EXCAVATION AREA
PROPOSED CHANNEL FILL AREA
EXISTING CHANNEL TO REMAIN FOR ALCOVE AND MAINSTEM FLOWS
PLANTING AREA
PROJECT AREA BOUNDARY
PARCEL LINE
LEGEND
______________________________________________________________________________________
Richard F. Duncan, MAI Page 1
RF Duncan and Associates, Inc.
REVIEW APPRAISER’S CERTIFICATE NO. 1
Agency: Hood Canal Salmon
Enhancement Group
Parcel No. 702233001 and
702233007
Owner: Cynthia and Michael
Pollard
Federal Aid No. N/A
Project: N/A
Map Sheet: N/A
Map Approval Date: N/A
Date of Last Revision: N/A
From: Richard F. Duncan, MAI, RF Duncan and Associates, Inc.
To: Hood Canal Salmon Enhancement Group
Date of
Review: October 9, 2020
The following appraisal has been made on the subject larger parcel:
Appraiser Valuation
Date
Market
Value –
Before
Project
Market
Value –
After
Project
Value
Difference
Value of
Property
Rights
Acquired
Damages
Chad C. Johnson,
MAI WA Cert No.
1101662 and Leslee
A. Gilmore, WA Cert.
No. 1101840
Chad C. Johnson,
MAI WA Cert No.
1101662 and Leslee
A. Gilmore, WA Cert.
No. 1101840
7-17-20
7-17-20
$510,000
(Scenario 1)
$510,000
(Scenario 2)
$510,000
(Scenario 3)
$510,000
(Scenario 4)
-0-
$240,000
$285,000
$170,000
$510,000
$270,000
$225,000
$340,000
$510,000
$238,500
$187,200
$340,000
-0-
$31,500
$37,800
-0-
Appraisal Review Comments and Conclusions
The Hood Canal Salmon Recovery Group proposes either a total acquisition (Scenario 1) or three partial
acquisitions (Scenarios 2,3 and 4) which are described in the body of this review. Appraisal # 1 analyzes
the impacts under Scenarios 1 thru 3, and Appraisal # 2 analyzes the impact under Scenario 4. I have
analyzed all four scenarios in this review. Appraisals 1 and 2 are prepared consistent with the Uniform
Standards for Professional Appraisal Practice (USPAP).
Description of Subject Ownership
The subject of the appraisal consists of a rural property located along at the terminus of Glen Logie
Road, southerly of U.S. Highway 101 in the community of Quilcene in an unincorporated area of
______________________________________________________________________________________
Richard F. Duncan, MAI Page 2
RF Duncan and Associates, Inc.
Jefferson County, Washington. In the before situation, the subject site consists of a total area of 48.53
acres. The subject has approximately 2,400 lineal feet of frontage along the Big Quilcene River, which
bisects the property in the southeasterly portion of the site. Of the 48.53 acres that comprise the subject
property, approximately 8.53 acres is located southeasterly of the Big Quilcene River and does not have
either legal or physical vehicular access.
The portion of the subject property located along Glen Logie Road where the improvements are located
is relatively level. The site then slopes downward drastically towards the center of the property where
the pasture and area of the site that is associated with the Big Quilcene River is located. On the
southeasterly side of the river the site then slopes upward dramatically in a southeasterly direction.
According to the Jefferson County GIS maps, the subject site ranges in elevation from approximately
100 feet above sea level in the northwesterly corner of the site in the vicinity of Glen Logie Road down
to a low of approximately 60 feet above sea level in the vicinity of the Big Quilcene River, then upward
again in the southeasterly corner of the site to an elevation of approximately 240 feet above sea level.
The subject has power and telephone and it has access to a shared well located on the parcel directly
to the north of the property. In addition, the manufactured home is served by its own septic system.
The subject is encumbered with a pedestrian travel and sport fishing easement that runs along the
shoreline of the Big Quilcene River. This easement allows the general public to traverse along the bank
of the Big Quilcene River for recreational purposes. The easement is limited to pedestrian access only.
The Big Quilcene River is identified as a Shoreline of the State, and thus, development within 200 feet
of this waterway is subject to the regulations of Jefferson County’s Shoreline Master Program.
Specifically, the Big Quilcene River in the vicinity of the subject property is classified as a “Conservancy”
shoreline environment.
The improved portion of the subject property located along Glen Logie Road is identified as being located
in an area outside the 100-year and 500-year flood plain, as per Flood Insurance Rate Map, Number
530310884C, effective date June 7, 2019. The central and southerly portion of the subject property
located along the valley floor is identified as being located in a Zone AE. Zone AE is defined “an area
inundated by 1% annual chance flooding (usually an area of ponding), for which based flood elevations
have been determined.” Typical flood depths can range from one to three feet. Additionally, the area of
the subject property associated with the Big Quilcene River along the southerly and easterly boundary
of the site is classified as a floodway.
Based on information within the Jefferson County GIS mapping system, the Big Quilcene River in the
vicinity of the subject property is classified as a Conservancy Shoreline environment, which requires a
building setback from the river of 150 feet. According to the Jefferson County GIS mapping system,
portions of the site associated with the Big Quilcene River could be impacted by wetland/buffer areas.
In addition, there are two potential wetland areas along the toe of the slope in the northerly portion of
the site.
In addition to the shared well located on the adjacent property, the subject has a water right for
irrigation that draws from a spring associated with the Big Quilcene River. The Certificate of Water Right
was recorded on January 10, 1973 under certification number S2-021227CL. According to the owner of
the subject property, this allows for irrigation of the pasture and lawn areas located on the subject site.
The subject is zoned Local Agricultural (AL-20), which allows agricultural development and residential
uses at a minimum density of one home per 20 acres.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 3
RF Duncan and Associates, Inc.
The subject site is currently improved with a Fleetwood, one-story, wood frame manufactured single-
family residence that was constructed in 1999. The owner of the subject property has not gone through
the title elimination process for the manufactured home. Thus, this structure is assessed under its own
personal property Assessor’s Number (702233007). The manufactured home has 3 bedrooms, 1.75
baths and approximately 1,200 SF.
The site is also improved with a five-bay equipment shed with a total area of 1,014 square feet. Four of
bays are open with the fifth bay being enclosed. The building is of wood frame construction. The building
is improved with a wood truss roof with a mixture of a composition shingle and metal cover. The four
open bays have a dirt floor and the enclosed portion has a concrete floor. The enclosed area of the
structure contains an area of 384 square feet. According to county records this structure was constructed
in 1947. The site is also improved with a woodshed with an area of 160 square feet.
In addition to the home, the property is also improved with an equipment shed and a woodshed.
The appraisers concluded a highest and best use for the subject for residential development, coupled
with ancillary agricultural/recreational use, and with the potential to develop the site with one additional
home site in the future when demand dictates. The appraisers concluded a highest and best use as
improved is for continued use as a single-family residence. In my opinion, the appraisers’ highest and
best use conclusions are reasonable and well supported in the appraisal.
Valuation-Before Situation
The appraisers applied the sales comparison approach to value the subject land. Neither the cost nor
the income approaches were appropriate for this assignment, and they were not utilized. Since the
building improvements are not impacted by the proposed partial acquisition, they were not valued in
the appraisal, which is reasonable and appropriate.
The appraisers analyzed four comparable sales in supporting the value of the subject land in the before
situation. Due to the lack of sales of large parcels with river frontage in Jefferson County, the appraisers
included sales from neighboring Thurston, Mason and Clallam counties along with one sale from
Jefferson County. The sales range from approximately $8,168 to $9,653 per acre, prior to adjustments,
and from $8,393 to $10,304 per acre, after applying adjustments for market appreciation since each
sale.
After comparing and contrasting the comparables to the subject for major value influencing
characteristics including size, river frontage, location, water rights, and site utility, the appraisers
concluded a value for the subject land of approximately $9,000 per acre or approximately $435,000®
overall (48.53 acres x $9,000/acre) which is considered to be reasonable and well supported.
The appraisers applied the cost approach to support the contributory value of the subject’s
manufactured home and other improvements of approximately $75,000 which is considered to be
reasonable.
The value of the subject as improved is approximately $510,000 ($435,000 (land) + $75,000
(improvements).
______________________________________________________________________________________
Richard F. Duncan, MAI Page 4
RF Duncan and Associates, Inc.
Proposed Acquisition and Remainder Description
As indicted the Hood Canal Salmon Enhancement Group proposes three partial acquisition scenarios
which are referred to as Scenarios Two, Three and Four, and each are discussed below.
Scenario One is a total acquisition of the subject which has a total value of approximately $510,000.
Scenario Two:
Under Scenario Two, 26.50 acres located in the southerly portion of the property along the Big Quilcene
River will be acquired. Under this scenario the northerly 22.03 acres
(inclusive of all improvements) will be retained by the property owner.
According to the agency all of the subject’s river frontage will be
acquired and the remainder will have no river frontage or river access.
(I note that the exhibit in the appraisal shows a small amount of river
frontage in the remainder’s northeasterly corner, however the
appraisers indicate that they were instructed to assume that all of the
subject’s river frontage will be acquired.) The highest and best use of
the remainder will be for continued use as a single-family residence.
Under Scenario Three 20.80 acres located in the southerly portion of the property along the Big Quilcene
River will be acquired. Under this scenario 27.73 acres (inclusive of all improvements) will be retained
by the property owner. According to the agency all of the
subject’s river frontage will be acquired and the remainder will
have no river frontage or river access. (I note that the exhibit
in the appraisal shows a small amount of river frontage in the
remainder’s northeasterly corner, however the appraisers
indicate that they were instructed to assume that all of
subject’s river frontage will be acquired.) The highest and best
use of the remainder will be for continued use as a single-
family residence.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 5
RF Duncan and Associates, Inc.
Scenario Four This scenario includes the acquisition of all but 3.94 acres which is where the building
improvements are located. The subject will no longer have
frontage along the Big Quilcene River and the owners of the
subject will no longer have legal/private access to the river
from their property. Under this scenario, the residential
building site area located along Glen Logie Road will remain
unchanged. In the after situation, the potential wetland areas
and the areas that are impacted by flood plain issues are all
located in the portion of the subject that will be acquired by
the Hood Canal Salmon Enhancement Group and thus, do not
impact the subject property in the “after” scenario. There are
views of the Big Quilcene River valley from the home located on the property, but direct views of the
river are impacted by intervening vegetation over which the owner no longer has control. The highest
and best use of the remainder will be for continued use as a single-family residence.
Valuation of Remainder(s)
Scenario Two (22.03-acre remainder)
The appraisers analyzed four comparable land sales in analyzing the value of the subject remainder
under this scenario. The sales range from approximately $4,017 to $9,091 per acre prior to adjustments,
and from $4,248 per acre to $10,273 per acre after adjusting for market appreciation since each sale.
After comparing and contrasting the comparables to the subject for major value influencing
characteristics including size, location and site utility, the appraisers concluded a value for the subject
land of approximately $7,500 per acre or approximately $165,000® overall (22.03 acres x $7,500/acre)
which is considered to be reasonable and well supported.
The subject’s improvements will have the same value as in the before situation or approximately
$75,000. The value of the remainder under Scenario Two is approximately $240,000 ($165,000 +
$75,000).
The value impacts under this scenario are allocated as follows:
Value of Subject in Before Situation: $510,000
Value of Remainder: $240,000
Value Difference: $270,000
Value of Land Acquired (26.50 acres x $9,000/acre): $238,500®
Damages ($270,000-$238,500): $31,500
Scenario Three (27.73-acre remainder)
The appraisers analyzed four comparable land sales in analyzing the value of the subject remainder
under this scenario. The sales range from approximately $4,017 to $9,091 per acre prior to adjustments,
and from $4,248 per acre to $10,273 per acre after adjusting for market appreciation since each sale.
After comparing and contrasting the comparables to the subject for major value influencing
characteristics including size, location and site utility, the appraisers concluded a value for the subject
land of approximately $7,500 per acre or approximately $210,000® overall (27.73 acres x $7,500/acre)
which is considered to be reasonable and well supported.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 6
RF Duncan and Associates, Inc.
The subject’s improvements will have the same value as in the before situation or approximately
$75,000. The value of the remainder under Scenario Three is approximately $285,000 ($210,000 +
$75,000).
The value impacts due to the proposed acquisition are allocated as follows:
Value of Subject in Before Situation: $510,000
Value of Remainder: $285,000
Value Difference: $225,000
Value of Land Acquired (20.80 acres x $9,000/acre): $187,200®
Damages ($225,000-$187,200): $37,800
Scenario Four (3.94-acre remainder)
The appraisers analyzed four comparable sales of sites improved with manufactured homes in analyzing
the value of the subject remainder under this scenario. The sales range from approximately $150,000
to $195,500, prior to adjustments, and from $155,775 to $210,971 after adjusting for market
appreciation since each sale. After comparing and contrasting the comparables to the subject for major
value influencing characteristics including size, quality and condition of home, location and site utility,
the appraisers concluded a value for the subject under this scenario of approximately $170,000, which
is considered to be reasonable and well supported. Deducting the $75,000 worth of improvements, the
residual value to the land is approximately $95,000 or approximately $24,111 per acre for the 3.94-
acre remainder site ($95,000/3.94 acre) which is significantly higher than $9,000 per acre as supported
for the 48.53-acre subject in the before situation.
The higher unit value in the after situation is due to the fact that very small sites tend to sell for much
higher per acre land values than do larger 40+ acre parcels and not due to the proposed project. In
my opinion, the much higher unit value for the remainder site is market reflective and it off-sets any
damages to the loss of the subject’s river frontage.
The value impacts due to the proposed acquisition under this scenario are allocated as follows:
Value of Subject in Before Situation: $510,000
Value of Remainder: $170,000
Value Difference: $340,000
Value of Land Acquired (40.59 acres x $8,376/acre): $340,000
Damages- none: -0-
The appraisal of the remainder under each scenario is made subject to the hypothetical condition that
the proposed acquisition has occurred when analyzing the value of each remainder.
The appraisal has numerous other general assumptions and limiting conditions which are typical for
similar appraisals in Washington State.
There are some minor typographical errors in the appraisal but correction of these would not change its
value conclusions.
The title report identifies several easements and restrictions which are typical for competing properties.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 7
RF Duncan and Associates, Inc.
There are no tenant-owned realty items taken or affected. The appraisal and this review
use the correct methods and techniques. The market data in the appraisal are adequate
and appropriate to solve the appraisal problem. The conclusions of value reached in the
appraisal and in this review are reasonable and fit the market evidence. In my opinion, the
appraisal report which is under review complies with the Uniform Standards of Professional
Appraisal Practice (USPAP).
______________________________________________________________________________________
Richard F. Duncan, MAI Page 8
RF Duncan and Associates, Inc.
REVIEWER’S DETERMINATIONS OF VALUE NO. 1
Scenario One
DETERMINED VALUE BEFORE PROJECT $510,000
DETERMINED VALUE AFTER PROJECT: -0-
VALUE DIFFERENCE DETERMINED: $510,000
ESTIMATED JUST COMPENSATION: $510,000
Reviewer’s Allocation of Just Compensation
Acquisition:
Land Acquired in Fee 48.53 acres x $9,000/acre: $435,000
Improvements Acquired: $75,000
Damages: -0-
Special Benefits: -0-
Total Just Compensation This Larger Parcel: $510,000
Scenario Two
DETERMINED VALUE BEFORE PROJECT $510,000
DETERMINED VALUE AFTER PROJECT: $240,000
VALUE DIFFERENCE DETERMINED: $270,000
ESTIMATED JUST COMPENSATION: $270,000
Reviewer’s Allocation of Just Compensation
Acquisition:
Land Acquired in Fee 26.50 acres x $9,000/acre $238,500
Improvements Acquired: -0-
Damages: $31,500
Special Benefits: -0-
Total Just Compensation This Larger Parcel: $270,000
______________________________________________________________________________________
Richard F. Duncan, MAI Page 9
RF Duncan and Associates, Inc.
Scenario Three
DETERMINED VALUE BEFORE PROJECT $510,000
DETERMINED VALUE AFTER PROJECT: $285,000
VALUE DIFFERENCE DETERMINED: $225,000
ESTIMATED JUST COMPENSATION: $225,000
Reviewer’s Allocation of Just Compensation
Acquisition:
Land Acquired in Fee 20.80 acres x $9,000/acre: $187,200
Improvements Acquired: -0-
Damages: $37,800
Special Benefits: -0-
Total Just Compensation This Larger Parcel: $225,000
Scenario Four
DETERMINED VALUE BEFORE PROJECT $510,000
DETERMINED VALUE AFTER PROJECT: $170,000
VALUE DIFFERENCE DETERMINED: $340,000
ESTIMATED JUST COMPENSATION: $340,000
Reviewer’s Allocation of Just Compensation
Acquisition:
Land Acquired in Fee 40.59 acres x $8,376/acre $340,000
Improvements Acquired: -0-
Damages: -0-
Special Benefits: -0-
Total Just Compensation This Larger Parcel: $340,000
______________________________________________________________________________________
Richard F. Duncan, MAI Page 10
RF Duncan and Associates, Inc.
APPRAISAL REVIEW SALIENT INFORMATION
Property Rights Appraised
Unless specified otherwise in this review, the property rights appraised constitute the fee simple
interest.
Date of Value
The effective date of the value opinion for the property in this review is 7-17-20 per Appraisal #1.
Competency of Reviewer
The undersigned reviewer has the knowledge and experience required to competently perform this
review; detailed resumes are available upon written request. The undersigned reviewer is approved by
the Federal Highway Administration (FHWA) and the Washington State Department of Transportation
(WSDOT), lead agency for all eminent domain appraisal matters, to perform fee appraisal reviews for
all public agencies and quasi-public agencies in Washington State. The undersigned reviewer is a state
certified appraiser holding the General classification #1100496 and is on the WSDOT List of Approved
Fee Reviewers.
Purpose of this Review
Overall, the purpose is to estimate the total Just Compensation due the owner for the taking of privately-
owned real property for the public project identified. For a partial taking, this is done by: estimating the
Fair Market Value of the subject Larger Parcel in the Before Situation; estimating the Fair Market Value
of the subject Larger Parcel in the After Situation; then subtracting the latter from the former. When a
larger parcel’s major improvements are unaffected by the taking/project other than simple cost to cure,
the jurisdictional exception allows a Strip Appraisal Procedure wherein said improvements need not be
valued.
Use of this Review
This review estimates Just Compensation due the owner and will be used to establish the first offer
amount to be made to the owner by the agency.
Scope of this Review
The commonly recognized valuation methods and techniques most appropriate for valuing the subject
Larger Parcel were performed in this review. This review involved a reasonably detailed inspection of
the subject property, the subject neighborhood, and surrounding/competing neighborhoods. Sales and
listings of competing properties were investigated before any conclusions of value were made.
Unless otherwise stated above, the Income and Cost Approaches to value were not employed in this
review because the Sales Comparison Approach is sufficient to solve the subject appraisal problem.
Definition of the Larger Parcel
The “Larger Parcel” is the parent parcel; it is the real property that is the subject of this review. It is
that real property that has Unity of Use, Unity of Ownership, and Contiguity.
Definition of Market Value
Market Value, as defined by the Uniform Appraisal Standards for Federal Land Acquisitions, 2016 Edition,
is: “…the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the
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Richard F. Duncan, MAI Page 11
RF Duncan and Associates, Inc.
property would have sold on the effective date of the appraisal, after a reasonable exposure time on
the open competitive market, from a willing and reasonably knowledgeable seller to a willing and
reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due
consideration to all available economic uses of the property at the time of the appraisal.”
Definition of Cash Equivalent
A price expressed in terms of cash (money) as distinguished from a price which is expressed all or partly
in terms of the face amount of notes or other securities which cannot be sold at their face amount.
Market data in this review are compared to the subject on an all cash basis to satisfy the definition of
Fair Market Value.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 12
RF Duncan and Associates, Inc.
APPRAISAL REVIEW ASSUMPTIONS and LIMITING CONDITIONS
1. The property description supplied to the reviewer is assumed to be correct;
2. No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection with such
matters. Title is assumed merchantable and vested as noted herein;
3. No responsibility is assumed for matters of a legal nature affecting title to the properties, nor is any opinion of title
rendered;
4. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify
such information; however, no responsibility for its accuracy is assumed by the reviewer;
5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified in review. The
property is assumed to be under responsible ownership and competent management;
6. It is assumed that there are no hidden or unapparent conditions of the property, its subsoil, or its structures which would
render it more or less valuable. No responsibility is assumed for such conditions or for engineering or testing which may be
required to discover them;
7. Unless otherwise stated, the existence of hazardous material, which may or may not be present in or on the property, was
not observed by the reviewer. The reviewer has no knowledge of the existence of such materials on or in the property. The
reviewer, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -
formaldehyde foam insulation, or other potentially hazardous/toxic materials may a ffect the value of the property. The value
estimate in this review is predicated on the assumption that there is no such material on or in the property that would cause a
loss in value. No responsibility is assumed for
any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an
expert in this field if desired;
8. Unless otherwise stated, no environmental impact studies were either requested or made in conjunction with
this review, and the reviewer hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based
upon any subsequent environmental impact studies, research, or investigation;
9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations
and laws unless noncompliance is specified, defined, and considered in this review;
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless
nonconformity has been specified, defined, and considered in this review;
11. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local, state, o r
national governmental or private entity or organization h ave been or can be obtained or renewed for any use on which the
value estimates contained in this review are based;
12. The reviewer will not be required to give testimony or appear in court because of having made this review
unless arrangements have been previously made therefore,
13. Possession of this review or a copy thereof, does not carry with it the right of publication. It may not be used for any
purpose by any person other than the client without the written consent of the reviewer and in any event , only with properly
written qualification and only in its entirety;
14. Neither all nor any part of the contents of this review, or copy thereof, shall be conveyed to the public through
advertising, public relations, news, sales, or any other media without written consent and approval of the reviewer. Nor shall
the reviewer, client, firm, or professional organization of which the reviewer is a member be identified without the written
consent of the reviewer;
15. The liability of the reviewer, employees, and subcontractors is limited to the client only. There is no accountability,
obligation, or liability to any other party. If this review is placed in the hands of anyone other than the client, the client shall
make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The reviewer is
in no way responsible for any costs incurred to discover or correct any deficiencies in the properties;
16. It is assumed that the public project which is the object of this revie w will be constructed in the manner proposed and in
the reasonably foreseeable future. It is also assumed herein that the taken landscaping will not be required to be
replaced on the remainder;
17. Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 13
RF Duncan and Associates, Inc.
CERTIFICATE OF REVIEW APPRAISER
I, the review appraiser, certify to the best of my knowledge and belief:
1. The facts and data reported by the review appraiser and used in the review process are true and
correct.
2. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and
limiting conditions stated in this review report, and are my personal, unbiased professional analyses
opinion, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report and I have
no personal interest or bias with respect to the parties involved;
4. I have no bias with respect to the property that is the subject of this report or to the parties involved
in this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
6. My compensation is not contingent on an action or event resulting from the analyses, opinions, or
conclusions in, or the use of, this review report.
7. My analyses, opinions, and conclusions were developed and this review report was prepared in
conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), with the Uniform
Appraisal Standards for Federal Land Acquisitions (USFLA, the “Yellow Book”) and with 49CFR Part 24.
8. I personally inspected the subject property of the appraisal under review and the comparable sales
analyzed in the report.
No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons
signing this certificate.
I further certify that if this review is to be used in conjunction with a Federal Aid Highway Project or
other federally funded project, none of the approved just compensation herein is ineligible for Federal
reimbursement.
Signature: _______________________ Date Signed: 10-9-20
Richard F. Duncan, MAI, Review Appraiser,
Washington State Certified Real Estate Appraiser: General, # 1100496
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Richard F. Duncan, MAI Page 14
RF Duncan and Associates, Inc.
CONCURRENCE and AUTHORIZATION for PAYMENT of JUST
COMPENSATION
The Hood Canal Salmon Enhancement Group does hereby indicate concurrence with the above
certification and does authorize further action to proceed according to established procedures with the
acquisition of the property.
1. I have no present or prospective personal interest in the property that is the subject of this report.
2. I have no personal interest or bias with respect to the parties involved.
3. My compensation is not contingent on an action or event resulting from this report.
_______________________________________________________________ ______
Authorized Representative of Hood Canal Salmon Enhancement Group Date
______________________________________________________________________________________
Richard F. Duncan, MAI Page 15
RF Duncan and Associates, Inc.
Review Appraiser's Qualifications
Richard F. Duncan, MAI
Experience:
• Partner, The Granger Company
• President, R.F. Duncan and Associates, Inc.
• Fee Appraiser, Anderson Appraisal, Inc., Olympia, Washington
• Real Estate Appraiser, Clark County, Department of Public Works
• Real Estate Appraiser/Right-of-Way Agent, Washington State Department of
Transportation
.
• Real Property Manager, Phoenix Properties, Inc.
Education:
The Evergreen State College, Olympia, Washington
Bachelor of Arts, Major – Business Management, 1987
Appraisal Education:
Real Estate Courses:
"Real Estate Law"
"Real Estate Finance"
"Real Estate Practices"
"Principles of Real Estate Appraisal I"
"Principles of Real Estate Appraisal II"
"Uniform Standards of Professional Appraisal Practice"
Appraisal Institute Courses:
Successfully challenged "Real Estate Appraisal Principles"
Successfully challenged "Basic Valuation Principles"
"Capitalization Theory and Techniques Part A"
"Capitalization Theory and Techniques Part B"
"Report Writing and Valuation Analysis"
"Advanced Applications"
"Standards of Professional Practice Part A"
"Standards of Professional Practice Part B"
International Right-of-Way Association Courses:
"Appraisal of Partial Acquisitions"
"Principles of Real Estate Acquisition"
"Engineering Plan Development and Application"
"Ethics and the Right-of-Way Profession"
"Communication in Real Estate Acquisition"
"Bargaining Negotiations"
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Richard F. Duncan, MAI Page 16
RF Duncan and Associates, Inc.
"Relocation Assistance"
"Land Titles"
National Highway Institute Courses:
"Appraisal and Appraisal Review for Federal Aid Highway Programs"
"Moving Cost Estimating"
Business and Professional Organizations:
• Member, Appraisal Institute
• Certified Real Estate Appraiser (General) – State of Washington
#1100496
Types of Appraisal Assignments:
Apartments
Eminent Domain Takings – Strip and Before/After Reports
Funding Feasibility Studies for Governmental Projects (roads, parks, bike trails, etc.)
Office Buildings
Retail
Special Benefit Studies
Subdivisions
Undeveloped Land
Warehouses
Wetlands/Open Space
Appraisal Review
______________________________________________________________________________________
Richard F. Duncan, MAI Page 1
RF Duncan and Associates, Inc.
REVIEW APPRAISER’S CERTIFICATE NO. 1
Agency: Hood Canal Salmon
Enhancement Group
Parcel No. 702233004, 702233005,
702233006
Owner: Mark Baclawski
Federal Aid No. N/A
Project: N/A
Map Sheet: N/A
Map Approval Date: N/A
Date of Last Revision: N/A
From: Richard F. Duncan, MAI, RF Duncan and Associates, Inc.
To: Hood Canal Salmon Enhancement Group
Date of
Review: September 17, 2020
The following appraisal has been made on the subject larger parcel:
Appraiser Valuation
Date
Market
Value –
Before
Project
Market
Value –
After
Project
Value
Difference
Value of
Property
Rights
Acquired
Damages
Chad C. Johnson,
MAI WA Cert No.
1101662 and Leslee
A. Gilmore, WA Cert.
No. 1101840
7-17-20 $510,000 $220,000 $290,000 $183,200 $106,800
Appraisal Review Comments and Conclusions
Appraisal #1 is referred to as “the appraisal” herein. The appraisal is an Appraisal Report as defined by
USPAP. The Hood Canal Salmon Recovery Group proposes a partial acquisition of the subject parcel.
Description of Subject Ownership
The subject of the appraisal consists of a rural property located along Glen Logie Road, southerly of
U.S. Highway 101 in the community of Quilcene in an unincorporated area of Jefferson County,
Washington. The subject site consists of three Jefferson County Assessor’s parcels and contains a total
area of 84.31 acres. The subject has approximately 1,750 lineal feet of frontage along the Big Quilcene
River, which bisects the southeasterly corner of the site as well as traveling along its southerly boundary.
The site is for the most part unimproved.
There is an equipment shed located on the property with an area of 576 square feet. In addition, there
is a cargo container and a small one-room cabin located on the site with an area of 196 square feet.
The cabin is not affixed to a permanent foundation and the owner stated he can move its location easily.
Thus, the cargo container and the cabin are considered personal property. The equipment shed is part
of the real estate. Site coverage includes the buildings, an agricultural area that is currently planted with
fruit and nut trees, and forested areas.
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Richard F. Duncan, MAI Page 2
RF Duncan and Associates, Inc.
Vehicular access to the subject property is from Glen Logie Road. Due to its location and steep
topography, access to the portion of the subject property located southerly of the Big Quilcene River is
not feasible.
The northerly portion of the subject is relatively level. The site then slopes downward drastically towards
the center of the property where the agricultural portion and the area of the site that is associated with
the Big Quilcene River is located. On the southerly side of the river the site then slopes upward
dramatically in a southeasterly direction. According to the Jefferson County GIS maps, the subject site
ranges in elevation from approximately 180 feet above sea level in the northwesterly corner of the site
down to a low of approximately 75 feet above sea level in the vicinity of the Big Quilcene River, then
upward again in the southeasterly corner of the site to an elevation of approximately 430 feet above
sea level.
Electrical and telephone service are extended to the subject property. The subject site is not served by
public water or sanitary sewer service. The subject is improved with a well. Any residential development
of the property will require that a septic system be installed.
The subject is encumbered with a pedestrian travel and sport fishing easement that runs along the
shoreline of the Big Quilcene River. This easement allows the general public to traverse along the bank
of the Big Quilcene River for recreational purposes. The easement is limited to pedestrian access only.
On February 2, 2010, the owner of the subject property entered into “Grant Deed of Conservation
Easement” (Auditor’s Number 549560) which created a conservation zone impacting approximately 18
acres of land on the northerly and southerly side of the Big Quilcene River.
The Big Quilcene River is identified as a Shoreline of the State, and thus, development within 200 feet
of this waterway is subject to the regulations of Jefferson County’s Shoreline Master Program.
Specifically, the Big Quilcene River in the vicinity of the subject property is classified as a “Conservancy”
shoreline environment.
The majority of the subject property is identified as being located in an area outside the 100-year and
500-year flood plain, as per Flood Insurance Rate Map, Number 530310884C, effective date June 7,
2019. The most southerly and easterly portions of the site located along the valley floor are identified
as being located in a Zone AE. Zone AE is defined as “an area inundated by 1% annual chance flooding
(usually an area of ponding), for which based flood elevations have been determined.” Typical flood
depths can range from one to three feet. Additionally, the area of the subject property associated with
the Big Quilcene River along the southerly boundary of the site is classified as a floodway.
According to the Jefferson County GIS mapping system, portions of the site associated with the Big
Quilcene River could be impacted by wetland/buffer areas. In addition, there is a small potential wetland
located in the central portion of the property.
In addition to the well located on the property, the property owner indicated that he is allowed to draw
water from a spring/pond located on the property for agricultural irrigation, though the appraisers were
unable to find supporting documentation for the irrigation rights.
The subject is zoned Local Agricultural (AL-20), which allows agricultural development and residential
uses at a minimum density of one home per 20 acres.
The appraisers concluded a highest and best use for the subject for development with one home site,
coupled with ancillary agricultural/recreational use, and with the potential to develop the site with up to
three additional home sites in the future when demand dictates. The appraisers concluded a highest
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Richard F. Duncan, MAI Page 3
RF Duncan and Associates, Inc.
and best use as improved is to retain the equipment shed and develop the subject for residential use.
In my opinion, the appraisers’ highest and best use conclusions are reasonable and well supported in
the appraisal.
Valuation-Before Situation
The appraisers applied the sales comparison approach to value the subject land. Neither the cost nor
the income approaches were appropriate for this assignment, and they were not utilized. Since the
building improvements are not impacted by the proposed partial acquisition, they were not valued in
the appraisal, which is reasonable and appropriate.
The appraisers analyzed four comparable sales in supporting the value of the subject land in the before
situation. Due to the lack of sales of large parcels with river frontage in Jefferson County, the appraisers
were forced to includes sales from neighboring Thurston, Mason and Clallam counties along with one
sale from Jefferson County. The sales range from approximately $3,504 to $8,776 per acre, and from
$3,846 to $9,829 per acre, after applying adjustments for market appreciation since each sale.
After comparing and contrasting the comparables to the subject for major value influencing
characteristics including size, river frontage, location and site utility, the appraisers concluded a value
for the subject land of approximately $6,000 per acre or approximately $505,000® overall (84.31 acres
x $6,000/acre) which is considered to be reasonable and well supported.
The appraisers applied the cost approach to support the contributory value of the subject’s 576 SF
equipment shed of approximately $5,000 which is considered to be reasonable.
The value of the subject as improved is approximately $510,000 ($505,000 (land) + $5,000 (equipment
shed).
Proposed Acquisition and Remainder Description
The Hood Canal Salmon Enhancement Group proposes to acquire, in fee, approximately 30.53 acres
located in the southerly portion of the site in the vicinity of the Big Quilcene River. The northerly 53.78
acres (inclusive of all improvements) will be retained by the property owner.
After the proposed acquisition has been completed, the subject property will have an area of 53.78
acres, with no frontage along the Big Quilcene River, and the owners of the subject will no longer have
legal/private access to the river from their property. The area of the site where the equipment shed is
located is not within the acquisition area. The southerly approximately 18 acres that are part of the
conservation easement that impacts the subject property are located in the acquisition area. Thus, in
the “After” scenario the conservation easement is no longer impacting the subject property.
The appraisers conclude that the highest and best use of the remainder site as vacant is for the use of
the site to support development of one home, with ancillary agricultural/recreational use, with the
potential to develop the site with a second home site in the future when demand dictates. The appraisers
conclude that the highest and best use of the remainder as improved is to retain the equipment building
and incorporate this structure into the development of the remainder site with a residential use. In my
opinion, the appraisers’ highest and best use conclusions for the remainder are reasonable and well
supported.
Valuation of Remainder
The appraisers analyzed four comparable sales in analyzing the value of the subject remainder. The
sales range from approximately $3,026 to $5,885 per acre prior to adjustments, and from $3,337 per
acre to $6,430 per acre after adjusting for market appreciation since each sale. After comparing and
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Richard F. Duncan, MAI Page 4
RF Duncan and Associates, Inc.
contrasting the comparables to the subject for major value influencing characteristics including size,
location and site utility, the appraisers concluded a value for the subject land of approximately $4,000
per acre or approximately $215,000® overall (53.78 acres x $4,000/acre) which is considered to be
reasonable and well supported.
The subject’s equipment shed has the same value as in the before situation or $5,000. The total value
of the remainder is approximately $220,000 ($215,000(land) +$5,000(shed).
The value impacts due to the proposed acquisition are allocated as follows:
Value of Subject in Before Situation: $510,000
Value of Remainder: $220,000
Value Difference: $290,000
Value of Land Acquired (30.53 acres x $6,000/acre): $183,200®
Damages ($290,000-$183,200): $106,800
The appraisal is made subject to the hypothetical condition that the proposed acquisition has occurred
when analyzing the value of the remainder.
The appraisal has numerous other general assumptions and limiting conditions which are typical for
similar appraisals in Washington State.
There are some minor typographical errors in the appraisal but correction of these would not change its
value conclusions.
The title report identifies several easements and restrictions which are typical for competing properties.
There are no tenant-owned realty items taken or affected. The appraisal and this review
use the correct methods and techniques. The market data in the appraisal are adequate
and appropriate to solve the appraisal problem. The conclusions of value reached in the
appraisal and in this review are reasonable and fit the market evidence. In my opinion, the
appraisal report which is under review complies with the Uniform Standards of Professional
Appraisal Practice (USPAP).
______________________________________________________________________________________
Richard F. Duncan, MAI Page 5
RF Duncan and Associates, Inc.
REVIEWER’S DETERMINATION OF VALUE NO. 1
DETERMINED VALUE BEFORE PROJECT $510,000
DETERMINED VALUE AFTER PROJECT: $220,000
VALUE DIFFERENCE DETERMINED: $290,000
ESTIMATED JUST COMPENSATION: $290,000
Reviewer’s Allocation of Just Compensation
Acquisition:
Land Acquired in Fee 30.53 acres x $6,000/acre: $183,200
Improvements Acquired: -0-
Damages: $106,800
Special Benefits: -0-
Total Just Compensation This Larger Parcel: $290,000
______________________________________________________________________________________
Richard F. Duncan, MAI Page 6
RF Duncan and Associates, Inc.
APPRAISAL REVIEW SALIENT INFORMATION
Property Rights Appraised
Unless specified otherwise in this review, the property rights appraised constitute the fee simple
interest.
Date of Value
The effective date of the value opinion for the property in this review is 7-17-20 per Appraisal #1.
Competency of Reviewer
The undersigned reviewer has the knowledge and experience required to competently perform this
review; detailed resumes are available upon written request. The undersigned reviewer is approved by
the Federal Highway Administration (FHWA) and the Washington State Department of Transportation
(WSDOT), lead agency for all eminent domain appraisal matters, to perform fee appraisal reviews for
all public agencies and quasi-public agencies in Washington State. The undersigned reviewer is a state
certified appraiser holding the General classification #1100496 and is on the WSDOT List of Approved
Fee Reviewers.
Purpose of this Review
Overall, the purpose is to estimate the total Just Compensation due the owner for the taking of privately-
owned real property for the public project identified. For a partial taking, this is done by: estimating the
Fair Market Value of the subject Larger Parcel in the Before Situation; estimating the Fair Market Value
of the subject Larger Parcel in the After Situation; then subtracting the latter from the former. When a
larger parcel’s major improvements are unaffected by the taking/project other than simple cost to cure,
the jurisdictional exception allows a Strip Appraisal Procedure wherein said improvements need not be
valued.
Use of this Review
This review estimates Just Compensation due the owner and will be used to establish the first offer
amount to be made to the owner by the agency.
Scope of this Review
The commonly recognized valuation methods and techniques most appropriate for valuing the subject
Larger Parcel were performed in this review. This review involved a reasonably detailed inspection of
the subject property, the subject neighborhood, and surrounding/competing neighborhoods. Sales and
listings of competing properties were investigated before any conclusions of value were made.
Unless otherwise stated above, the Income and Cost Approaches to value were not employed in this
review because the Sales Comparison Approach is sufficient to solve the subject appraisal problem.
Definition of the Larger Parcel
The “Larger Parcel” is the parent parcel; it is the real property that is the subject of this review. It is
that real property that has Unity of Use, Unity of Ownership, and Contiguity.
Definition of Market Value
Market Value, as defined by the Uniform Appraisal Standards for Federal Land Acquisitions, 2016 Edition,
is: “…the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the
property would have sold on the effective date of the appraisal, after a reasonable exposure time on
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Richard F. Duncan, MAI Page 7
RF Duncan and Associates, Inc.
the open competitive market, from a willing and reasonably knowledgeable seller to a willing and
reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due
consideration to all available economic uses of the property at the time of the appraisal.”
Definition of Cash Equivalent
A price expressed in terms of cash (money) as distinguished from a price which is expressed all or partly
in terms of the face amount of notes or other securities which cannot be sold at their face amount.
Market data in this review are compared to the subject on an all cash basis to satisfy the definition of
Fair Market Value.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 8
RF Duncan and Associates, Inc.
APPRAISAL REVIEW ASSUMPTIONS and LIMITING CONDITIONS
1. The property description supplied to the reviewer is assumed to be correct;
2. No surveys of the properties have been made by the reviewer and no responsibility is assumed in connection with such
matters. Title is assumed merchantable and vested as noted herein;
3. No responsibility is assumed for matters of a legal nature affecting title to the properties, nor is any opinion of title
rendered;
4. Information furnished by others is assumed to be true, correct, and reliable. A reasonable effort has been made to verify
such information; however, no responsibility for its accuracy is assumed by the reviewer;
5. All mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless so specified in review. The
property is assumed to be under responsible ownership and competent management;
6. It is assumed that there are no hidden or unapparent conditions of the property, its subsoil, or its structures which would
render it more or less valuable. No responsibility is assumed for such conditions or for engineering or testing which may be
required to discover them;
7. Unless otherwise stated, the existence of hazardous material, which may or may not be present in or on the property, was
not observed by the reviewer. The reviewer has no knowledge of the ex istence of such materials on or in the property. The
reviewer, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -
formaldehyde foam insulation, or other potentially hazardous/toxic materials may affect th e value of the property. The value
estimate in this review is predicated on the assumption that there is no such material on or in the property that would cause a
loss in value. No responsibility is assumed for
any such conditions, or for the expertise or engineering knowledge required to discover them. The client is urged to retain an
expert in this field if desired;
8. Unless otherwise stated, no environmental impact studies were either requested or made in conjunction with
this review, and the reviewer hereby reserves the right to alter, amend, revise, or rescind any of the value opinions based
upon any subsequent environmental impact studies, research, or investigation;
9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations
and laws unless noncompliance is specified, defined, and considered in this review;
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless
nonconformity has been specified, defined, and considered in this review;
11. It is assumed that all required licenses, consents, or other legislative or administrative authority from any local, state, o r
national governmental or private entity or organization have been or can be obtained or renewed for any use on which the
value estimates contained in this review are based;
12. The reviewer will not be required to give testimony or appear in court because of having made this review
unless arrangements have been previously made therefore,
13. Possession of this review or a copy thereof, does not carry with it the right of publication. It may not be used for any
purpose by any person other than the client without the written consent of the reviewer and in any event, only with proper ly
written qualification and only in its entirety;
14. Neither all nor any part of the contents of this review, or copy thereof, shall be conveyed to the public through
advertising, public relations, news, sales, or any other media without written consent and approval of the reviewer. Nor shall
the reviewer, client, firm, or professional organization of which the reviewer is a member be identified without the written
consent of the reviewer;
15. The liability of the reviewer, employees, and subcontractors is limited to the client only. There is no accountability,
obligation, or liability to any other party. If this review is placed in the hands of anyone other than the client, the client shall
make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The reviewer is
in no way responsible for any costs incurred to discover or correct any deficiencies in the properties;
16. It is assumed that the public project which is the object of this review will be constructed in the manner proposed and in
the reasonably foreseeable future. It is also assumed herein that the taken landscaping will not be required to be
replaced on the remainder;
17. Acceptance and/or use of this review constitutes acceptance of the foregoing assumptions and limiting conditions.
______________________________________________________________________________________
Richard F. Duncan, MAI Page 9
RF Duncan and Associates, Inc.
CERTIFICATE OF REVIEW APPRAISER
I, the review appraiser, certify to the best of my knowledge and belief:
1. The facts and data reported by the review appraiser and used in the review process are true and
correct.
2. The analyses, opinions, and conclusions in this review report are limited only by the assumptions and
limiting conditions stated in this review report, and are my personal, unbiased professional analyses
opinion, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report and I have
no personal interest or bias with respect to the parties involved;
4. I have no bias with respect to the property that is the subject of this report or to the parties involved
in this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
6. My compensation is not contingent on an action or event resulting from the analyses, opinions, or
conclusions in, or the use of, this review report.
7. My analyses, opinions, and conclusions were developed and this review report was prepared in
conformity with the Uniform Standards of Professional Appraisal Practice (USPAP), with the Uniform
Appraisal Standards for Federal Land Acquisitions (USFLA, the “Yellow Book”) and with 49CFR Part 24.
8. I personally inspected the subject property of the appraisal under review and the comparable sales
analyzed in the report.
No one provided significant appraisal, appraisal review, or appraisal consulting assistance to the persons
signing this certificate.
I further certify that if this review is to be used in conjunction with a Federal Aid Highway Project or
other federally funded project, none of the approved just compensation herein is ineligible for Federal
reimbursement.
Signature: _______________________ Date Signed: 9-17-20
Richard F. Duncan, MAI, Review Appraiser,
Washington State Certified Real Estate Appraiser: General, # 1100496
______________________________________________________________________________________
Richard F. Duncan, MAI Page 10
RF Duncan and Associates, Inc.
CONCURRENCE and AUTHORIZATION for PAYMENT of JUST
COMPENSATION
The Hood Canal Salmon Enhancement Group does hereby indicate concurrence with the above
certification and does authorize further action to proceed according to established procedures with the
acquisition of the property.
1. I have no present or prospective personal interest in the property that is the subject of this report.
2. I have no personal interest or bias with respect to the parties involved.
3. My compensation is not contingent on an action or event resulting from this report.
_______________________________________________________________ ______
Authorized Representative of Hood Canal Salmon Enhancement Group Date
______________________________________________________________________________________
Richard F. Duncan, MAI Page 11
RF Duncan and Associates, Inc.
Review Appraiser's Qualifications
Richard F. Duncan, MAI
Experience:
• Partner, The Granger Company
• President, R.F. Duncan and Associates, Inc.
• Fee Appraiser, Anderson Appraisal, Inc., Olympia, Washington
• Real Estate Appraiser, Clark County, Department of Public Works
• Real Estate Appraiser/Right-of-Way Agent, Washington State Department of
Transportation
.
• Real Property Manager, Phoenix Properties, Inc.
Education:
The Evergreen State College, Olympia, Washington
Bachelor of Arts, Major – Business Management, 1987
Appraisal Education:
Real Estate Courses:
"Real Estate Law"
"Real Estate Finance"
"Real Estate Practices"
"Principles of Real Estate Appraisal I"
"Principles of Real Estate Appraisal II"
"Uniform Standards of Professional Appraisal Practice"
Appraisal Institute Courses:
Successfully challenged "Real Estate Appraisal Principles"
Successfully challenged "Basic Valuation Principles"
"Capitalization Theory and Techniques Part A"
"Capitalization Theory and Techniques Part B"
"Report Writing and Valuation Analysis"
"Advanced Applications"
"Standards of Professional Practice Part A"
"Standards of Professional Practice Part B"
International Right-of-Way Association Courses:
"Appraisal of Partial Acquisitions"
"Principles of Real Estate Acquisition"
"Engineering Plan Development and Application"
"Ethics and the Right-of-Way Profession"
"Communication in Real Estate Acquisition"
"Bargaining Negotiations"
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Richard F. Duncan, MAI Page 12
RF Duncan and Associates, Inc.
"Relocation Assistance"
"Land Titles"
National Highway Institute Courses:
"Appraisal and Appraisal Review for Federal Aid Highway Programs"
"Moving Cost Estimating"
Business and Professional Organizations:
• Member, Appraisal Institute
• Certified Real Estate Appraiser (General) – State of Washington
#1100496
Types of Appraisal Assignments:
Apartments
Eminent Domain Takings – Strip and Before/After Reports
Funding Feasibility Studies for Governmental Projects (roads, parks, bike trails, etc.)
Office Buildings
Retail
Special Benefit Studies
Subdivisions
Undeveloped Land
Warehouses
Wetlands/Open Space
Appraisal Review
Appendix B
Application Sponsor
Private Non-Profit Organization
Attachments
HCSEG 2020 Budget
FY 2019 FY 2020
REVENUE PRIOR YEAR PROPOSED
Fundraisers and events 109,806.73$ 100,000.00$
USFWS operating funds 165,952.00$ 150,000.00$
WDFW operating funds 212,402.00$ 200,000.00$
RCO-Lower Big Quilcene Master plan 107,517.00$ 190,000.00$
USFWS - Lower Big Quilcene Master Plan 2,725.84$ 500.00$
Floodplains by Design - Lower Big Quilcene Master Plan and Moon Valley 217,901.00$ 1,000,000.00$
RCO- Big Quilcene Moon Valley acquisition and planning 28,170.70$ 300,000.00$
USFWS - Big Quilcene Moon Valley 24,851.66$ 50,000.00$
RCO - IMW- Lower Big Beef Creek Restoration - Phase 3 236,054.69$ 20,000.00$
WDFW ALEA - Forage Fish Assessment 3,958.55$ 1,000.00$
Union River Griswold Culvert replacement -$ 106,601.00$
WSDA - Knotweed Control 22,845.00$ 8,000.00$
RCO-Riparian Enhancement Project 130,431.09$ 100,000.00$
NFWF - Cooperative Weed Management Area 5,821.00$ 14,000.00$
WDFW ALEA - Summer Chum Outmigration 25,769.00$ 26,000.00$
RCO- Seabeck Creek Bridge 112,234.25$ 1,500,000.00$
WDFW ALEA - Steelhead Project 7,000.00$ 7,000.00$
WDFW ALEA - Summer Chum Project 3,907.07$ 3,000.00$
NOAA Steelhead Project 21,186.54$ 21,000.00$
Scholarship Fundraiser 8,093.00$ 9,000.00$
Camp Registrations 2,017.48$ 1,000.00$
Farm income 4,809.00$ 5,000.00$
Farm Sponsorships 2,162.00$ 4,000.00$
Rental income 21,275.00$ 14,000.00$
Membership 3,141.50$ 4,000.00$
Crew Income 32,000.00$ 50,000.00$
Other Income 3,953.76$ 4,000.00$
DNR Hahobas Camp 160,000.00$ -$
USFWS NCW, WWRP, ESRP and SRFB - Big Beef Creek Acquisition 2,828,264.00$ 535,000.00$
ESRP - Duckabush Estuary Design support 60,355.00$ 108,000.00$
Tahuya River Estuary Preliminary Design 4,688.09$ 12,000.00$
Union River Reach Restoration Planning 106,601.00$ 10,000.00$
Tahuya River Watershed Assessment 110,984.45$ 109,000.00$
RCO-Riparian Stewardship (Applied for, not yet received)-$ 10,000.00$
RCO- Duckabush Estuary Restoration Design and Acquisition (new grant)-$ 1,000,000.00$
RCO- Moon Valley Reach Preliminary Design (new grant)289,000.00$
TOTALS $4,786,878.40 $5,961,101.00
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000
In Thousands
REVENUE
FY 2019 FY 2020
EXPENSES PRIOR YEAR PROPOSED
Salaries 448,076.50 475,000.00
Benefits 67,018.00 70,000.00
Payroll taxes 51,003.00 52,000.00
Utilities 11,473.00 12,000.00
Travel and meetings 3,923.82 10,000.00
A-133 Audit 11,665.00 13,000.00
Office Supplies and Equipment 4,171.15 4,200.00
Printer lease and maintenance 13,887.76 14,000.00
Farm supplies and maintenance 6,136.90 7,000.00
Facilities Maintenance 25,446.00 15,000.00
Vehicle maintenance 3,901.25 5,000.00
Membership Dues, licenses and subscriptions 8,866.29 10,000.00
Staff Development and training 5,211.00 3,000.00
Legal fees 0.00 2,000.00
Insurance 15,304.17 16,000.00
Volunteer/Donor gifts and Prizes 1,521.21 2,000.00
Postage 1,132.10 700.00
IT Services 0.00 1,000.00
Web fees (website, meeting space, etc.)250.00 250.00
Trail maintenance 485.92 500.00
Outreach Supplies and Events 19,247.96 20,000.00
Education supplies 322.65 1,500.00
Research Supplies 22,995.00 15,000.00
Data Analysis 16,612.62 15,000.00
AmeriCorps 27,200.00 30,000.00
Internship Stipends and Salaries 24,009.76 20,000.00
Scholarships 4,500.00 3,000.00
Restoration Design and Construction Services 724,183.77 3,500,000.00
Advertising 2,706.40 6,000.00
Grounds Maintenance and Equipment 2,000.00 6,000.00
WCC Crew 120,669.55 160,000.00
Interest Expense 95,136.26 100,000.00
Land acquisitions 2,930,000.00 1,000,000.00
TOTALS $4,669,057.04 $5,589,150.00
$4,200 $4,400 $4,600 $4,800 $5,000 $5,200 $5,400 $5,600 $5,800
In Thousands
EXPENSES
FY 2020 PROPOSED FY 2019 PRIOR YEAR
Page 2 of 2
First Name Last Name Title Mailing Address Partner Cell Phone Phone #s Email
Robert Hager Director Emeritus 100 Timber Ridge Way NW Apt. 5302 Issaquah, WA
98027
(Peggy passed away
4-25-20)360.471.7812
(does not carry on person)
425-657-0517 (H)bphager@msn.com
John Poppe Chair 9278 Morningside Drive Silverdale, WA 98383 Rhonda Brown 360-340-8372 360-698-1290 (H)poppe.john@gmail.com
Michael Siptroth Vice -Chair 2160 E. Trails End Dr. Belfair, WA 98528 Bill 360.275.8441 flybill2@aol.com
Mike Henderson Treasurer
738 NW Westover Square, Portland OR 97210 and PO Box
1300, Belfair
16461 E St Rt 106 Belfair, WA 98528 (only
UPS & fedx delivery)
Donna 503-936-8395 360-275-8235
Belfair mchendo@me.com
Denny Hamilton Secretary 381 NE Tiger Way, Belfair, WA 98528 Marcia 360-275-0900 425-444-4950 dennyhamilton@hotmail.com
Tom Brown Board Member 260 E. Happy Hollow Lane, Belfair, WA 98528 Dorinda 360-689-6398 360-275-1317 (H)dorindatom@q.com
David Hawley Board Member PO Box 1254, Allyn, WA 98524 Shawna Stice-
Hawley 360-620-9033 360-275-3420 (H)moosebugsy@wavecable.com
Jeanne Robinson Boardmember (August 2019)661 West Kamilche Lane, Shelton, WA 98584 Tina Robinson
cell 360-464-8446
home 360-427-4273
work 360-705-7154
360-819-9721
(Tina)JeanneRobinson67@gmail.com
Greg Shimek Board Member 7813 Agate Dr. SW., Lakewood, WA 98498 Marilyn 206-979-5840 253-588-7606 (H)gregs47@icloud.com
Mac McLean Board Member PO Box 143, Allyn, WA 98524 Diane 907-460-6137 360-275-2476 (H)mcleanrobertf@gmail.com
Kelli Kohout Interim Secretary
Boardmember (August 2019)10443 Occidental Ave S., Seattle, WA 98168 - 206-779-1071 - KelliKohout@dwt.com
HCSEG - BOARD MEMBER ROSTER - JAN 2021
Hood Canal Salmon Enhancement Group Staff Roster 2021
Mendy Harlow – Executive Director
Clayton David – Salmon Biologist
Alex Papiez – Stewardship Coordinator
Lucas Marin – Education and Outreach Coordinator
Alexandra Ehrich – Communications Manager
Anna Robinson – Project Manager
Gus Johnson – Project Manager
Andy Hokit – Project Manager
Joanne Tejeda – Design & Marketing Associate
Kim Gower – Project Administrator
Dana Delhaute – Finance Manager
Heather Hamilton – Farm Caretaker
Kassie Crissman – Environmental Educator / AmeriCorps
Megan Bertucci – Environmental Educator / AmeriCorps
Sophie Savoie – Sustainability Coordinator / AmeriCorps
Lotte Off – Sustainability Coordinator / AmeriCorps
HOOD CANAL SALMON ENHANCEMENT GROUP
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
DECEMBER 31, 2019
INDEPENDENT AUDITOR'S REPORT 1-2
FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION 3
STATEMENTS OF ACTIVITIES 4-5
STATEMENTS OF FUNCTIONAL EXPENSES 6-7
STATEMENTS OF CASH FLOWS 8
NOTES TO THE FINANCIAL STATEMENTS 9-17
ADDITIONAL INFORMATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 18
NOTES TO SCHEDULE OF FEDERAL AWARDS 21
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
22-23
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT
ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY OMB CIRCULAR A-133
24-25
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 26-27
CLARKE WHITNEY, CPA, INC.
CERTIFIED PUBLIC ACCOUNTANTS
www.clarkewhitney.com
610 Warren Avenue
Bremerton, WA 98337
Phone: 360-377-4496
Fax: 360-377-4497
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
Hood Canal Salmon Enhancement Group
Belfair, Washington
Report on the Financial Statements
We have audited the accompanying financial statements of Hood Canal Salmon Enhancement Group,
which comprise the statement of financial position as of December 31, 2019, and the related statements of
activities, functional expenses, and cash flows for the year then ended, and the related notes to the
financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the 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
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of as of December 31, 2019, and the changes in its net assets and its cash flows for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Report on Summarized Comparative Information
We have previously audited the Hood Canal Salmon Enhancement Group's 2018 financial statements, and
we expressed an unmodified audit opinion on those audited financial statements in our report dated
November 18, 2019. In our opinion, the summarized comparative information presented herein as of and
for the year ended December 31, 2018, is consistent, in all material respects, with the audited financial
statements from which it has been derived.
Other Matters
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required
part of the financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated, in all material respects, in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 15,
2020, on our consideration of Hood Canal Salmon Enhancement Group’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on Hood Canal Salmon Enhancement Group's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering Hood Canal Salmon Enhancement Group’s internal control over financial
reporting and compliance.
Clarke Whitney, CPA, Inc.
Bremerton, Washington
November 15, 2020
2
HOOD CANAL SALMON ENHANCEMENT GROUP
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2019 AND 2018
2019 2018
Assets
Current assets
Cash and cash equivalents $19,180 $29,588
Restricted and reserved cash 125,377 101,645
Contracts and grants receivable, net of allowance for doubtful
contracts of $0 (2019) and $0 (2018)164,685 182,801
Costs in excess of billings 154,468 12,084
Prepaid expenses 21,600 12,800
Total current assets 485,310 338,918
Endowment investments 75,623 64,198
Property and equipment, net 7,917,734 4,992,950
Total assets $ 8,478,667 $ 5,396,066
Liabilities and net assets
Current liabilities
Accounts payable $336,697 $236,330
Accrued liabilities 50,879 44,315
Lease deposit 100 100
Credit cards 12,737 2,748
Current portion of long-term debt 46,277 41,400
Total current liabilities 446,690 324,893
Long-term debt 1,062,393 1,001,444
Total liabilities 1,509,083 1,326,337
Net assets
Without donor restrictions 1,323,329 1,382,323
With donor restrictions 5,646,255 2,687,406
Total net assets 6,969,584 4,069,729
Total liabilities and net assets $ 8,478,667 $ 5,396,066
See the accompanying notes to the financial statements and independent auditor's report.
3
HOOD CANAL SALMON ENHANCEMENT GROUP
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2019
Without
Donor
Restrictions
With
Donor
Restrictions
2019
Total
Revenues
Revenues, gains and support
Grants and contracts $-$4,787,795 $4,787,795
Contributions 16,501 88,707 105,208
Dues-membership 3,142 -3,142
Program income 9,564 -9,564
Investment income (loss)5 11,425 11,430
Rental income 21,700 -21,700
Other income 1,419 -1,419
Total revenues, gains and support 52,331 4,887,927 4,940,258
Sales
Sales revenue 8,913 -8,913
Cost of goods sold (9,215)-(9,215)
Gross profit (302)-(302)
Net assets released from restrictions
Satisfaction for use restrictions 1,929,078 (1,929,078)-
Total revenues 1,981,107 2,958,849 4,939,956
Expenses
Program services 1,922,002 -1,922,002
Management and general 116,083 -116,083
Fundraising 2,016 -2,016
Total expenses 2,040,101 -2,040,101
Change in net assets (58,994)2,958,849 2,899,855
Net assets, beginning of year 1,382,323 2,687,406 4,069,729
Net assets, end of year $1,323,329 $5,646,255 $6,969,584
See the accompanying notes to the financial statements and independent auditor's report.
4
HOOD CANAL SALMON ENHANCEMENT GROUP
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2018
Without
Donor
Restrictions
With
Donor
Restrictions
2018
Total
Revenues
Revenues, gains and support
Grants and contracts $-$2,245,673 $2,245,673
Contributions 41,551 10,189 51,740
Dues-membership 1,738 -1,738
Program income 57,354 -57,354
Investment income (loss)-(4,304)(4,304)
Rental income 10,800 -10,800
Other income and gains 105 -105
Total revenues, gains and support 111,548 2,251,558 2,363,106
Sales
Sales revenue 8,984 -8,984
Cost of goods sold (6,813)-(6,813)
Gross profit 2,171 -2,171
Net assets released from restrictions
Satisfaction for use restrictions 1,312,041 (1,312,041)-
Total revenues 1,425,760 939,517 2,365,277
Expenses
Program services 1,352,516 -1,352,516
Management and general 95,947 -95,947
Fundraising ---
Total expenses 1,448,463 -1,448,463
Change in net assets ()22,703 939,517 916,814
Net assets, beginning of year 1,405,026 1,747,889 3,152,915
Net assets, end of year $1,382,323 $2,687,406 $4,069,729
See the accompanying notes to the financial statements and independent auditor's report.
5
HOOD CANAL SALMON ENHANCEMENT GROUP
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2019
Program Management Fundraising
2019
Total
Staff salaries $413,663 $50,202 $-$463,865
Staff payroll taxes 44,456 5,383 -49,839
Staff payroll benefits 58,703 7,124 -65,827
Total salaries and related expenses 516,822 62,709 -579,531
Advertising 2,706 --2,706
Bad debt 313 --313
Bank charges -3,027 -3,027
Contract labor 157,951 --157,951
Dues, licenses and subscriptions 9,416 1,005 -10,421
Education and outreach 21,964 -2,016 23,980
Equipment rental 13,952 --13,952
Insurance 12,243 3,061 -15,304
Interest expense 75,649 18,912 -94,561
Meetings and conferences 5,211 --5,211
Miscellaneous 6 --6
Postage 1,132 --1,132
Prizes and gifts ----
Professional services 22,406 2,307 -24,713
Rental expenses 698 2,696 -3,394
Repairs and maintenance 25,154 6,288 -31,442
Research projects 39,608 --39,608
Restoration projects 937,900 --937,900
Scholarships 2,979 --2,979
Supplies 3,978 --3,978
Taxes -4,074 -4,074
Telephone 3,142 --3,142
Travel and transportation 3,808 --3,808
Utilities 7,348 1,837 -9,185
Total expenses before depreciation and
amortization
1,864,386 105,916 2,016 1,972,318
Depreciation and amortization 57,616 10,167 -67,783
Total functional expenses $ 1,922,002 $116,083 $2,016 $ 2,040,101
See the accompanying notes to the financial statements and independent auditor's report.
6
HOOD CANAL SALMON ENHANCEMENT GROUP
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2018
Program Management Fundraising
2018
Total
Staff salaries $413,518 $38,855 $-$452,373
Staff payroll taxes 48,211 5,596 -53,807
Staff payroll benefits 50,551 12,638 -63,189
Total salaries and related expenses 512,280 57,089 -569,369
Advertising 1,619 --1,619
Bad Debt 200 --200
Bank charges 798 57 -855
Contract labor 111,056 --111,056
Dues, licenses and publications 10,557 --10,557
Education and outreach 19,973 --19,973
Equipment rental 12,840 --12,840
Insurance 16,784 4,196 -20,980
Interest expense 70,812 17,703 -88,515
Meetings and conferences 1,239 --1,239
Miscellaneous 2,569 --2,569
Postage 453 --453
Printing and publications 205 --205
Prizes and gifts 8,924 226 -9,150
Professional services ----
Rental expenses 25 3,515 -3,540
Repairs and maintenance 13,276 --13,276
Research projects 17,960 --17,960
Restoration projects 464,284 --464,284
Scholarships 11,921 3,750 -15,671
Supplies 3,883 --3,883
Taxes -344 -344
Telephone 6,989 --6,989
Travel and transportation 2,861 --2,861
Utilities 9,630 --9,630
Total expenses before depreciation and
amortization
1,301,138 86,880 -1,388,018
Depreciation and amortization 51,378 9,067 -60,445
Total functional expenses $ 1,352,516 $95,947 $-$ 1,448,463
See the accompanying notes to the financial statements and independent auditor's report.
7
HOOD CANAL SALMON ENHANCEMENT GROUP
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
2019 2018
Cash flows from operating activities
Change in net assets $2,899,855 $916,814
Adjustments to reconcile the change in net assets to net cash
provided by operating activities:
Depreciation and amortization 67,783 60,445
Capitalized in-kind contributions (1,761)-
Unrealized loss (gain) on investments (9,045)5,726
Loss (gain) on sale of fixed assets 527 -
(Increase) decrease in operating assets:
Restricted and reserved cash (23,732)(28,566)
Contracts and grants receivable 18,116 (130,475)
Costs in excess of billings (142,384)22,672
Prepaid expenses (8,800)(1,760)
Increase (decrease) in operating liabilities:
Accounts payable 100,367 136,313
Accrued liabilities 6,564 15,540
Lease deposit -100
Net cash provided by operating activities 2,907,490 996,809
Cash flows from investing activities
Endowment fund investments (2,380)(2,154)
Payments for the purchase of property and equipment (2,991,583)(1,021,482)
Proceeds from the sale of fixed assets 250 -
Appropriations from endowment fund investments -732
Net cash used by investing activities (2,993,713)(1,022,904)
Cash flows from financing activities
Proceeds from borrowings 192,157 125,382
Payments on borrowings (116,342)(163,776)
Net cash provided (used) by financing activities 75,815 (38,394)
Net decrease in cash and cash equivalents (10,408)(64,489)
Cash and cash equivalents, beginning of year 29,588 94,077
Cash and cash equivalents, end of year $19,180 $29,588
Cash paid for interest $98,027 $82,174
See the accompanying notes to the financial statements and independent auditor's report.
8
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Activities
Hood Canal Salmon Enhancement Group (the Organization) is a not-for-profit organization that was
formed as a corporation in the State of Washington to protect and enhance the genetic diversity and
populations of Wild Salmon (naturally spawning salmon) in Hood Canal by the protection and restoration
of habitats, water quality, education, wild salmon incubators and other means to achieve an abundance of
Wild Salmon. The Organization also does business under the names: Pacific Northwest Salmon Center
and Farm at the Water's Edge.
Basis of Accounting
The financial statements have been prepared on the accrual basis of accounting in accordance with
generally accepted accounting principles.
Financial Statement Presentation
The Organization follows the recommendations of the Financial Accounting Standards Board in its
Accounting Standards Codification (ASC) 958 Not-for-Profit Entities. Under ASC 958, the Organization
is required to report information regarding its financial position and activities according to two classes of
net assets: with donor restrictions, and without donor restrictions.
With Donor Restrictions:Net assets that result from contributions whose use by the
Organization is restricted by donor imposed stipulations that may expire with the passage of
time or can be fulfilled or otherwise removed by actions of the Organization.
Without Donor Restrictions:Net assets that are not restricted by donor stipulation.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses in the financial statements. Actual results could differ from
management’s estimates.
Credit Risk
The Organization maintains cash balances in one local bank, which is insured by the Federal Deposit
Insurance Corporation (FDIC) up to $250,000. As of December 31, 2019 the Organization's cash balance
did not exceed the FDIC limit at its financial institution.
9
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Cash and Cash Equivalents
The Organization considers all highly liquid investments with a maturity of ninety days or less to be cash
equivalents. Restricted and reserved cash are limited in use, as designated by donors or the reserved
intent. These financial instruments are valued at fair market value due to their short-term maturity and low
risk nature.
Investments
Investments in marketable securities with readily determinable fair values and all investments in debt
securities are reported at their fair values based on quoted prices in active markets in the statement of
financial position. Unrealized gains and losses are included in the change in net assets. Investment
income and gains restricted by a donor are reported as increases in unrestricted net assets if the restrictions
are met (either by passage of time or by use) in the reporting period in which the income and gains are
recognized.
Contracts and Grants Receivable
Grants and contracts receivable are valued at their net realizable value. The calculation of allowance for
doubtful contracts is based on an assessment made by management, which determined which of the
outstanding contracts receivable are not expected to be collectible.
Fixed and Intangible Assets
Fixed and intangible assets are stated at cost for purchased assets and fair market value for donated assets.
It is the Organization's policy to capitalize expenditures for these items in excess of $1,000. Lesser
amounts are expensed. Donated equipment is recorded at its fair market value at the date of receipt.
Depreciation and amortization is computed using the straight-line method over the estimated useful lives
of the assets as follows:
Buildings and capital improvements 40 years
Office furniture and equipment 5 to 7 years
Vehicles 5 years
Intangible assets 5 to 15 years
Revenue Recognition
Grant and contract revenues and fees for service are recognized when the service is provided.
10
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Contributions
Contributions are recognized when the donor makes a promise to give to the Organization that is, in
substance, unconditional. Contributions that are restricted by the donor are reported as increases in net
assets without donor restrictions if the restrictions expire in the fiscal year in which the contributions are
recognized. All other donor-restricted contributions are reported as increases in net assets with donor
restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets
without donor restrictions. Restrictions on gifts of fixed assets or cash for the purchase of fixed assets
expire when the asset is placed in service.
Functional Allocation of Expenses
The costs of providing various programs and other activities have been summarized on a functional basis
in the statement of activities. Accordingly, certain costs have been allocated among the programs and
supporting services benefited based on the programs and supporting services actual and estimated
incurrence of such expenses.
Advertising
The Organization expenses advertising costs when they are incurred. The total advertising cost incurred
during the year ended December 31, 2019 was $2,706.
Income Taxes
The Organization has been determined to be exempt from federal income taxes under Internal Revenue
Code Section 501(c)(3) by the Internal Revenue Service. However, income from certain activities not
directly related to the Organization’s tax-exempt purpose is subject to taxation as unrelated business
income. Interest and penalties from such unrelated business income taxes are recognized as separate
expenses when incurred, for which there were none incurred for the year ended December 31, 2019. The
Organization believes that it has appropriate support for any tax positions taken, and as such, does not
have any uncertain tax positions that are material to the financial statements.
The Organization’s federal Exempt Organization Business Income Tax Returns for 2017, 2018, and 2019
are subject to examination by the IRS, generally for three years after they were filed.
Land Held for Conservation
Land held for conservation is recorded at cost when purchased and at fair market value at the date of
acquisition, if donated. Management reviews each parcel periodically to determine if there has been an
impairment to the value that is recorded in the statement of financial position.
11
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Costs in Excess of Billings
The Organization receives most of its revenues through contracts and agreements that require billings to
be on a reimbursement basis. The costs in excess of billings account allows the Organization to recognize
revenues as soon as reimbursable costs are incurred.
Subsequent Events
The COVID-19 outbreak in the United States has caused business disruption through mandated and
voluntary closings of multiple business and nonprofit entities. While the disruption is currently expected
to be temporary, there is considerable uncertainty around the duration of the closings. The related financial
impact and duration cannot be reasonably estimated at this time. There were no other subsequent events
discovered up to November 15, 2020, which is the date the financial statements were available to be
issued.
NOTE B - RESTRICTED AND RESERVED CASH
The Organization receives restricted donations from donors, which are limited for use in programs
designated by the donor. The Organization also holds reserved funds related to the repayment of debt and
for payments related to the maintenance and repair of its facilities, as required under loan covenants. The
balances of restricted and reserved funds as of December 31, 2019 are as follows:
2019
Donor restricted funds
Education fund $2,500
Restoration fund 2,530
Whittaker cabin rent fund 2,015
Scholarship fund 622
Farm animal fee and care fund 502
Dog park restricted fund 750
Trail project restricted fund 6,193
Founder's restricted fund 30,279
Cutthroat assessment restricted fund 46,134
4-H club fund 502
Amphitheater fund 15,865
Dan O'Neil memorial fund 1,595
Total donor restricted funds 109,487
Board designated reserve funds
Facility repairs and maintenance reserve fund 15,890
Total board designated reserve funds 15,890
Total restricted and reserved cash $125,377
12
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE C - ENDOWMENT FUND - DONOR DESIGNATED
The Board of Directors of the Organization established an endowment fund for the purpose of supporting
the scholarship and internship programs. This endowment has been funded with restricted donor
contributions. This endowment fund has a spending policy that only appropriates interest and dividends
generated by the endowment as well as any capital gains in excess of 7.00%. The endowment fund has an
investment policy that restricts the ability to manage the funds to three elected trustees who are members
of the Board of Directors of the Organization.
Composition of and changes in endowment net assets for the year ended December 31, 2019 were as
follows:
2019
Without donor restrictions $-
With donor restrictions 75,623
Total net endowment assets $75,623
Changes in endowment net assets as of December 31, 2019 are as follows:
Without
Donor
Restrictions
With Donor
Restrictions
Total Net
Endowment
Assets
Endowment net assets, as of January 1, 2019 $-$64,198 $64,198
Contributions ---
Investment income (loss)-11,425 11,425
Endowment net assets, as of December 31, 2019 $-$75,623 $75,623
Investment income (loss) includes the following:
2019
Dividends and interest earned $2,955
Unrealized gain/(loss)9,045
Realized gain/(loss)177
Amounts appropriated for expenditures (752)
Total $11,425
13
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE D - FIXED AND INTANGIBLE ASSETS
Total depreciation and amortization expense incurred by the Organization for the year ended December
31, 2019 was $65,719 and $2,064, respectively. The Organization's land, works of art, construction in
process and certain educational equipment are non-depreciable. The Organization had fixed and intangible
assets as of December 31, 2019 that consisted of:
2019
Land $6,294,448
Capital improvements 121,127
Buildings 1,766,170
Furniture and equipment 397,384
Vehicles 8,127
Construction in process 36,591
Works of Art 15,400
Intangible assets 14,475
Total fixed and intangible assets 8,653,722
Accumulated depreciation and amortization (735,988)
Total fixed and intangible assets, net $ 7,917,734
NOTE E - OPERATING LEASES
Non-cancelable lease
The Organization entered into a non-cancelable sixty month operating lease for a copy machine in
December of 2018. Total rental expense incurred under this lease for the year ended December 31, 2019
was $13,952. The future minimum payments under this lease are listed in the table below.
Year Ended December 31,
2020 12,313
2021 12,313
2022 12,313
2023 9,155
Total $46,094
NOTE F - REVENUE CONCENTRATIONS
The Organization receives substantial support from the State and Federal government to operate various
programs. A material reduction in funding or a change in the eligibility to receive such funding could
have an adverse impact on the Organization's ability to continue its operations.
14
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE G - LONG-TERM DEBT
The Organization incurred the following debt as of December 31, 2019:
2019
Secured mortgage with Craft 3 Capital Corporation has a monthly payment of principal
and interest of $11,968 and one irregular last payment estimated at $1,049,851, incurs
interest at a fixed rate of 8.5%, was entered into on April 1, 2016 and terms were
renegotiated on January 3, 2019 by the Organization, and is secured by the first deed of
trust on the buildings and property located at 600 NE Roessel Road, Belfair,
Washington.1,108,670
Less current portion of long-term debt (46,277)
Total notes payable, net current portion of long term debt $ 1,062,393
Future maturities of debt over the next five years are as follows:
Year ended December 31,
2020 46,277
2021 1,062,393
Total $ 1,108,670
NOTE H - OPERATING LEASE COMMITMENTS
The Organization also owns residential property, which it leases to tenants on a month-to-month basis.
The tenants, that have occupied the property since it was purchased and have provided rental income
during the year ended December 31, 2019, in the amount of $21,700. There was no schedule of future
minimum rental receipts prepared, since the tenants are on a month-to-month basis. Leases from two such
properties were terminated during the year ended December 31, 2019, but were considered short-term
leases to tenants that were vacating a newly acquired conservation property.
NOTE I - LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS
2019
Financial assets, at year end $8,478,667
Less those available for general expenditures within one year due to:
Contractual or donor-imposed restrictions:
Restricted by donor with time or purpose restrictions (5,646,255)
Financial assets available to meet cash needs for general
expenditures within one year $ 2,832,412
15
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE J - RESTRICTIONS ON NET ASSETS
Restrictions on net assets at December 31, 2019 consist of the following:
2019
Without donor restrictions $1,323,329
With donor restrictions:
Land held for habitat restoration/conservation 5,461,145
Endowment fund 75,623
Donor restricted donations 109,487
Total with donor restrictions 5,646,255
Total net assets $ 6,969,584
The Organization has obtained properties that were either purchased by or donated to the Organization for
habitat restoration and/or conservation, but only the use of the property is restricted and not the sale or
transfer thereof. The value of these temporarily restricted properties held by the Organization was
$5,461,145 as of December 31, 2019.
The Organization received restricted donations, which were restricted by the donors for various limited
uses and purposes. As of December 31, 2019, the balance of these restricted donations was $109,487 of
these restricted donations.
The Organization has an endowment fund that is restricted, as noted in Note B - Endowment Fund -
Donor Designated. The amount of funds available to fund scholarships as of December 31, 2019 was
$30,144. The Organization received $0 in donations deposited into the restricted endowment fund for
college scholarships during the year ended December 31, 2019 and the principal balance in this account,
which is permanently restricted, was $45,479 as of December 31, 2019.
NOTE K - DONATED SERVICES AND MATERIALS
The Organization records various types of in-kind contributions. Contributed services are recognized at
fair value if the services received (a) create or enhance long-lived assets or (b) require specialized skills,
are provided by individuals processing those skills, and would typically need to be purchased if not
provided by donation. Contributions of tangible assets are recognized at fair value when received. The
amounts reflected in the accompanying financial statements as in-kind contributions are offset by like
amounts included in expenses or additions to property and equipment.
The Organization received contributed materials during the year ended December 31, 2019, with a fair
value on the dates of donation of $2,461.
16
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2019
NOTE K - DONATED SERVICES AND MATERIALS (CONTINUED)
In addition, a number of volunteers donated a total of 12,636 hours to the Organization's program and
support services during the year ended December 31, 2019. These contributions in-kind are not reflected
in the financial statements since these services do not meet the criteria for recognition.
NOTE L - FAIR VALUE MEASUREMENTS
The Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) 820-201,
establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair
value. This hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in
active markets for identical assets and have the highest priority, Level 2 inputs consist of observable
inputs other than quoted prices for identical assets, and Level 3 inputs have the lowest priority. The
Organization uses appropriate valuation techniques based on the available inputs to measure fair value of
its investment. When available, the Organization measures fair value using Level 1 inputs because they
generally provide the most reliable evidence of fair value. Level 2 and 3 inputs are used only when Level
1 inputs are not available.
The following table presents the fair value measurements of assets recognized in the accompanying
statements of financial position measured at fair value on a recurring basis and the level within the fair
value hierarchy in which the fair value measurements fall at December 31, 2019.
Level 1 Level 2 Level 3 Total
Investment at Edward Jones $75,623 $-$-$75,623
Following is a description of the valuation methodologies used for assets measured at fair value on a
recurring basis and recognized in the accompanying statements of financial position, as well as the general
classification of such assets pursuant to the valuation hierarchy.
Level 1: Quoted market prices in active markets for identical assets and liabilities
Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or
liabilities, quoted prices in inactive markets, or other inputs that are observable or can be
corroborated by observable market date for substantially the full term of the assets or liabilities.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to
the fair value of the assets or liabilities.
The Organization's investments are classified as Level 1. Carrying Value and the Fair Value amounts are
the same for the year ended December 31, 2019. Due to the level of risk associated with certain
investment securities, it is at least reasonably possible that changes in the values of investment securities
will occur in the near term.
17
HOOD CANAL SALMON ENHANCEMENT GROUP
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
Federal
Agency
Federal Grantor/
Pass-through
Grantor/Program
or Cluster Title
Federal
CFDA
Number Name of Program
Pass-through
Entity
Identifying
Number
Grant Amount
Date
Matching
Contribution
Total
Project
Cost
Prior Years
Federal
Expenditures
Current
Year Federal
Expenditures
Total Project
Federal
Expenditures
Remaining
Budget for
Federal Exp
Department of
the Interior
US Fish and
Wildlife Service
15.630 USFWS Passthrough
Funding
F17AC00304 $137,339
July 5, 2017
$-$137,339 $136,919 $420 $137,339 $-
Department of
the Interior
US Fish and
Wildlife Service
15.630 USFWS Passthrough
Funding
F18AC00628 149,010
August 9, 2018
-149,010 58,460 90,550 149,010 -
Department of
the Interior
US Fish and
Wildlife Service
15.630 USFWS Passthrough
Funding
F19AC003685 137,063
August 1, 2019
-137,063 -92,061 92,061 45,002
Department of
the Interior
Washington
Department of
Ecology / USFWS
Passthrough
15.614 Big Beef Creek
Estuary Acquisition
SEANCWCP-
2018-HoSEG-
00013
F18P00148
980,000
January 1, 2018
367,949 1,347,949 -980,000 980,000 -
Department of
the Interior
US Fish and
Wildlife Service
15.630 Big Quilcene Moon
Valley Reach
Acquisition & Plan
F17AC00378 35,000
July 25, 2017
-35,000 12,426 22,574 35,000 -
Department of
the Interior
US Fish and
Wildlife Service
15.630 Moon Valley Reach
Acquisition &
Enhancement Project
F18AP00733 82,500
July 25, 2017
-82,500 82,125 375 82,500 -
Department of
the Interior
Washington
Department of Fish
and Wildlife
15.508 WDFW RFEG Funds WDFW 17-
09066
160,312
July 19, 2017
199,181 359,493 128,247 32,065 160,312 -
Department of
the Interior
Washington
Department of Fish
and Wildlife
15.508 WDFW RFEG Funds WDFW 19-
13695
178,521
July 1, 2019
10,218 188,739 -63,447 63,447 115,074
Department of
the Interior
National Fish and
Wildlife
Foundation
15.633 Hood Canal Weed
Management Area
NFWF-
1701.16.054383
163,996
January 18, 2017
-163,996 144,127 1,250 145,377 18,619
Department of
Commerce
National Fish and
Wildlife
Foundation
11.473 Lower Big Quilcene
River Restoration
Design
NFWF-
0318.18.062599
229,308
November 11, 2018
300,000 529,308 -2,207 2,207 227,101
Department of
Commerce
National Oceanic
and Atmospheric
Administration
11.411 Steelhead - Hood
Canal Steelhead
Project
NOAA-133MF-
18-PNFFP0036
$18,500
June, 29, 2019
$-$18,500 $6,269 $12,231 $18,500 $-
See accompanying notes to schedule of expenditures of federal awards
18
Federal
Agency
Federal Grantor/
Pass-through
Grantor/Program
or Cluster Title
Federal
CFDA
Numbe Name of Program
Pass-through
Entity
Identifying
Number
Grant Amount
Date
Matching
Contribution
Total
Project
Cost
Prior Years
Federal
Expenditures
Current
Year Federal
Expenditures
Total Project
Federal
Expenditures
Remaining
Budget for
Federal Exp
Department of
Commerce
National Oceanic
and Atmospheric
Administration
11.411 Steelhead - Hood
Canal Steelhead
Project
NOAA-
1305M3-19-
PNFFP 0168
$18,500
July 1, 2019
$-$1,800 $-$8,457 $8,457 $10,043
United States
Environmental
Protection
Agency (EPA)
Environmental
Protection Agency
66.951 HC Environmental
Exploration and
Education Project
EPA-01J36301 91,000
May 4, 2017
31,536 122,536 74,986 16,014 91,000 -
United States
Environmental
Protection
Agency (EPA)
Hood Canal
Coordinating
Council
66.123 Hood Canal Reg
Pollution ID and
Correction
EPA-
PC01J18001-0
62,000
June 26, 2017
-62,000 36,778 8,739 45,517 16,483
United States
Environmental
Protection
Agency (EPA)
Washington
Department of
Health
66.123 Hood Canal
Zooplankton Sample
LLTK-SSMSP-
54
10,150
June 14, 2017
-10,150 741 365 1,106 9,044
United States
Environmental
Protection
Agency (EPA)
Recreation and
Conservation
Office
66.456 Hood Canal Summer
Chum Riparian
Enhancement
RCO 16-1476 189,141
May 8, 2018
33,380 222,521 63,989 125,152 189,141 -
United States
Environmental
Protection
Agency (EPA)
Recreation and
Conservation
Office
66.456 Big Beef Creek
Acquisition
RCO 18-2228
CE-01J31901
1,945,716
July 1, 2019
1,229,065 3,174,781 -1,880,062 1,880,062 65,654
Department of
Commerce
Recreation and
Conservation
Office
11.438 Tahuya River
Watershed Assessment
RCO 17-1058 208,930
August 22, 2018
51,879 260,809 42,786 83,685 126,471 82,459
Department of
Commerce
Recreation and
Conservation
Office
11.438 Hood Canal Forage
Fish Assessment
RCO 16-1474P 17,609
January 31, 2017
27,650 45,259 8,270 9,339 17,609 -
Department of
Commerce
Recreation and
Conservation
Office
11.438 Duckabush Estuary
Restoration Supp
Acquisition
RCO 16-1492 312,044
February 20, 2018
-312,044 139,747 61,074 200,821 111,223
Department of
Commerce
Recreation and
Conservation
Office
11.438 Union River Reach
Restoration Planning
RCO 17-1059 $122,635
August 22, 2018
$21,642 $144,277 $45,603 $62,616 $108,219 $14,416
See accompanying notes to schedule of expenditures of federal awards
19
Federal
Agency
Federal Grantor/
Pass-through
Grantor/Program
or Cluster Title
Federal
CFDA
Numbe Name of Program
Pass-through
Entity
Identifying
Number
Grant Amount
Date
Matching
Contribution
Total
Project
Cost
Prior Years
Federal
Expenditures
Current
Year Federal
Expenditures
Total Project
Federal
Expenditures
Remaining
Budget for
Federal Exp
Department of
Commerce
Recreation and
Conservation
Office
11.438 Union River Summer
Chum Out-Migration
Assessment
RCO 18-1242 $102,497
December 5, 2018
$87,643 $190,140 $-$46,149 $46,149 $56,348
Department of
Commerce
Recreation and
Conservation
Office
11.438 Hood Canal Riparian
Enhancement and
Knotweek Control
RCO 19-1296 $191,250
December 12, 2019
$33,750 $225,000 $-$8,366 $8,366 $182,884
Total Expenditures of
Federal Awards
$ 3,607,198
See accompanying notes to schedule of expenditures of federal awards
20
HOOD CANAL SALMON ENHANCEMENT GROUP
NOTES TO SCHEDULE OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2019
NOTE A -BASIS FOR PRESENTATION
The accompanying schedule of federal expenditures of federal awards includes the federal grant activity of
Hood Canal Salmon Enhancement Group and is presented on the accrual basis of accounting. The
information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ
from amounts presented in, or used in the preparation of, the basic financial statements.
21
CLARKE WHITNEY, CPA, INC.
CERTIFIED PUBLIC ACCOUNTANTS
www.clarkewhitney.com
610 Warren Avenue
Bremerton, WA 98337
Phone: 360-377-4496
Fax: 360-377-4497
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
To the Board of Directors
Hood Canal Salmon Enhancement Group
Belfair, Washington
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of Hood Canal Salmon
Enhancement Group (a nonprofit organization), which comprise the statement of financial position as of
December 31, 2019, and the related statements of activities, functional expenses, and cash flows for the
year then ended, and the related notes to the financial statements, and have issued our report thereon
dated November 15, 2020.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered Hood Canal Salmon
Enhancement Group’s internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of Hood Canal
Salmon Enhancement Group’s internal control. Accordingly, we do not express an opinion on the
effectiveness of Hood Canal Salmon Enhancement Group’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
22
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether Hood Canal Salmon Enhancement Group’s
financial statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Organization’s
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Organization’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Clarke Whitney, CPA, Inc.
Bremerton, WA
November 15, 2020
23
CLARKE WHITNEY, CPA, INC.
CERTIFIED PUBLIC ACCOUNTANTS
www.clarkewhitney.com
610 Warren Avenue
Bremerton, WA 98337
Phone: 360-377-4496
Fax: 360-377-4497
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Directors
Hood Canal Salmon Enhancement Group
Belfair, Washington
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
We have audited Hood Canal Salmon Enhancement Group’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of Hood Canal Salmon Enhancement Group’s major federal programs for the year ended
December 31, 2019. Hood Canal Salmon Enhancement Group’s major federal programs are identified in
the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
MANAGEMENT'S RESPONSIBILITY
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on compliance for each of Hood Canal Salmon Enhancement
Group’s major federal programs based on our audit of the types of compliance requirements referred to
above. We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Unifrom Guidance). Those standards and the
Unirform Guidance require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on a test
basis, evidence about Hood Canal Salmon Enhancement Group’s compliance with those requirements
and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of Hood Canal Salmon
Enhancement Group’s compliance.
24
OPINION ON EACH MAJOR FEDERAL PROGRAM
In our opinion, Hood Canal Salmon Enhancement Group complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect on each
of its major federal programs for the year ended December 31, 2019.
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Management of Hood Canal Salmon Enhancement Group is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to above.
In planning and performing our audit of compliance, we considered Hood Canal Salmon Enhancement
Group’s internal control over compliance with the types of requirements that could have a direct and
material effect on each major federal program to determine the auditing procedures that are appropriate
in the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of Hood Canal Salmon
Enhancement Group’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control
over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Clarke Whitney, CPA, Inc.
Bremerton, WA
November 15, 2020
25
HOOD CANAL SALMON ENHANCEMENT GROUP
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section I—Summary of Auditor's Results
Financial Statements
Type of auditor's report issued : unmodified
Internal control over financial reporting:
• Material weakness(es) identified? ______ yes ___X___ no
• Reportable condition(s) identified that are not considered to be material weaknesses? _____ yes
___X___ none reported
Noncompliance material to financial statements noted?______ yes ___X___ no
Federal Awards
Internal control over major programs:
• Material weakness(es) identified? ______ yes ___X___ no
• Reportable condition(s) identified that are not considered to be material weakness(es)? ______ yes
___X___ none reported
Type of auditor's report issued on compliance for major programs : unmodified
Any audit findings disclosed that are required to be reported in accordance with
OMB Uniform Guidance? ______ yes ___X___ no
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
66.456 Big Beef Creek Estuary Acquisition
15.614 Big Beek Creek Acquisition
Dollar threshold used to distinguish between type A and type B programs: $750,000
Auditee qualified as low-risk auditee?______ yes ___X___ no
Section II—Financial Statement Findings
There were no reportable findings.
26
HOOD CANAL SALMON ENHANCEMENT GROUP
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2019
Section III—Federal Award Findings and Questionable Costs
There were no reportable findings
Section IV—Prior Year Audit Findings
There were no prior year audit findings
27