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Home My WebLink About090721ra01Regular Agenda V 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Public Hea HEARING FORM JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS TO: FROM: DATE: SUBJECT: STATEMENT OF ISSUE: AGENDA REQUEST Board of County Commissioners Mark McCauley, Interim County Administrator Pinky Mingo, Environmental Public Health and Water Quality Director Tami Pokorny, Natural Resources Program Coordinator September 7, 2021 Agenda Request: Public Hearing and Possible Decision Regarding Applications for Conservation Futures Funding in 2021 On August 231d, 2021, the BoCC approved a Public Hearing Notice to hold a public hearing on the Conservation Futures Program project applications received in 2021 on September 7t1i, 2021 at 10:30 a.m. The notice was published in the Port Townsend & Jefferson County Leader on August 25' and September 1st, 2021. The Conservation Futures Program (JCC 3.08) requires a duly noticed public hearing to be held as part of the public process of allocating conservation futures funding to worthy projects that protect public open spaces. At the start of the hearing, Conservation Futures Citizen Oversight Committee (CF Committee) Chair Joanne Pontrello will provide an update of the Committee's recommendations. After the hearing, the BoCC may decide which project(s) to fund by passing resolution(s) to include a factual finding as to whether each project would reduce the county's capacity to accommodate growth. ANALYSIS/STRATEGIC GOALS: The five applications to the Conservation Futures Fund in 2021 are: 1. Big Quilcene River — Moon Valley Acquisitions, $89,500 towards the fee simple acquisition of 75.1 acres to protect portions of two separately owned parcels to protect the floodplain as part of a larger effort to restore the Big Quilcene River in the Moon Valley Reach. Proposed match is $818,469 in grants to the Hood Canal Salmon Enhancement Group (HCSEG) from the Salmon Recovery Funding Board and the Floodplains by Design program. The project sponsor is Jefferson County; The project applicant is the HCSEG. Project location: S23 T27N R2W. Community Health Developmental Disabilities 360-385-9400 360-385-9401 (f) Always working for a safer and healthier community Environmental Health Water Quality 360-385-9444 (f) 360-379-4487 The purpose of the CF Program is to address the "general and increasing need to provide a system of public open spaces ... for the health, welfare, benefit and safety of the residents of Jefferson County," and to maintain "Jefferson County as a desirable place to live, visit and locate businesses." Conservation futures tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing open space policies and objectives of the Jefferson County Comprehensive Plan. The goal of the program is to preserve and protect the county's open space resources from development, and from being "negatively and permanently affected." On January 3, 2006, the BOCC approved Ordinance No. 01-0103-06 in response to Chapter 449 of that year which allowed up to 15% of the conservation future levy monies raised in the preceding year to be used for operations and maintenance needs. Fifteen percent of the revenue collected in 2020 ($271,860) is $40,779. However, The CF Committee is not specifically recommending the award of operations and maintenance funding this year. Chapter 449 also states that local governments must consider and develop findings on whether or not new CF projects would reduce the County's capacity to accommodate planned growth. Grant agreements for approved projects between one or more of the project sponsors and the County will be developed by Environmental Public Health and submitted to the BoCC for approval. FISCAL RYWACT: The explicit purpose of the Conservation Futures Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. The following projects are anticipated to close during the remainder of 2021: Arlandia: $52,138 Big Quilcene River Moon Valley Reach (2nd of 2 properties): $2,500 Pending approval, Quimper Wildlife Corridor Additions: $69,500 The following previously approved projects are anticipated to close after 2019: Dosewallips River Lazy C: $7,649 Pending approval, Big Quilcene River — Moon Valley Acquisitions: $89,500 Pending approval, Camp Discovery Creek Acquisition: $140,000 Pending approval, Hannan Farm: $25,000 RECOMMENDATION: 1) Review the five project proposals brought forth by the CF Committee. 2) Hold a public hearing on September 7th, 2021 at 10:30 a.m. Consider the written and oral testimony at the public hearing and adopt any of the enclosed funding resolutions (with or without revisions) for project proposals and funding amounts that the Commissioners may wish to approve. REVIEWED BY: Mark McCauley, Community Health Developmental Disabilities 360-385-9400 360-385-9401 (f) C? Administrator 5/3 / /z- Always working for a safer and healthier community Environmental Public Health Water Quality 360-385-9444 (f) 360-379-4487 2. Camp Discovery Creek Acquisition, $140,000 towards the fee simple acquisition of 80.6 acres in one parcel to protect the second largest tributary to Tarboo-Dabob Bay located partly within the boundaries of the Dabob Bay Natural Area. Proposed match is $521,000 from the Navy Readiness and Environmental Protection Integration (KEPI) program and cash from the Northwest Watershed Institute. The project applicant and sponsor are Northwest Watershed Institute. Project location: S15 T27N RIW. 3. Hannan Farm, $25,000 towards the acquisition of a conservation easement on one parcel of residential and agricultural land totaling 115.8 acres along the east fork of Chimacum Creek approximately four miles south of Chimacum. Objectives include protecting scenic values, prime agricultural soils and supporting habitat improvements along the creek. Proposed match is a WWRP Farmland Preservation grant of $260,000 and $275,000 from the Navy REPI program. Jefferson Land Trust is the project sponsor and applicant. Project location: S3 T28N RIW. 4. Quimper Wildlife Corridor Additions, $95,000 towards the acquisition of Blocks 1-9 of David's Addition to the City of Port Townsend (4.95 acres) and $5,000 for operations and maintenance. The project will contribute to an existing protected 3.5-mile-long natural wetland, drainage, and wildlife habitat corridor. Proposed match is 2.3 acres of donated land contiguous with the Corridor with an estimated value of $50,000 and $116,790 in cash. Jefferson Land Trust is the project sponsor and applicant. Project location: S4 T30N RIW. 5. Schmidt Farm — Phase II of Quilcene Headwaters to Bay, $95,000 towards the acquisition of a conservation easement on two parcels of residential and agricultural land totaling 67 acres along Jakeway Creek northeast of Quilcene. The project also requests $5,000 for operations and maintenance. Objectives include protecting pastureland, scenic values and a creek buffer as well as extending a corridor between Quilcene Bay and forested upland areas. Proposed match is $250,000 from the Navy REPI program and $60,000 in cash. Jefferson Land Trust is the project sponsor and applicant. Project location: S18 T27N RIW. At its April 27'i' meeting, the Conservation Futures Citizen Oversight Committee (CF Committee) voted all in favor that four of the projects are worthy of funding and voted 8 in favor and 3 against that the Quimper Wildlife Corridor Additions was worthy of funding. The CF Committee developed specific award recommendations that were subsequently presented to the BoCC. In response to news that additional funds from a closed project had become available, the Committee met on July 12' to update their recommended funding levels. Chair Pontrello describes them in the accompanying memo. Due to the limited CF funds available, only four of the projects are recommended for funding and one, the Quimper Wildlife Corridor Additions project, at a reduced amount. The total of recommended awards, $324,000, is equal to the final amount of funds available in this cycle. A total of 454,500 is requested. This briefing packet contains: • Five conservation futures project applications and the relevant sponsor information. • Updated Conservation Futures Citizen Oversight Committee recommendations memo • Draft meeting summaries from the April 27'i' and July 12'i' CF Committee meetings • Map of conservation futures projects 2003-2020 • Letter from Joel Peterson, Jefferson County Department of Community Development, regarding the four projects located in the County. • Letter from Judy Surber, City of Port Townsend, regarding the one project located in the City. • Draft resolutions consistent with the recommendations of the CF Citizen Oversight Committee as described in Chair Pontrello's memo. Community Healfh Environmental Public Healfh Developmental Disabilities Wafer Qualify 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 The purpose of the CF Program is to address the "general and increasing need to provide a system of public open spaces ... for the health, welfare, benefit and safety of the residents of Jefferson County," and to maintain "Jefferson County as a desirable place to live, visit and locate businesses." Conservation futures tax levy collections, authorized under RCW 84.34.230 are an important means of retaining community character and accomplishing open space policies and objectives of the Jefferson County Comprehensive Plan. The goal of the program is to preserve and protect the county's open space resources from development, and from being "negatively and permanently affected." On January 3, 2006, the BOCC approved Ordinance No. 01-0103-06 in response to Chapter 449 of that year which allowed up to 15% of the conservation future levy monies raised in the preceding year to be used for operations and maintenance needs. Fifteen percent of the revenue collected in 2020 ($271,860) is $40,779. However, The CF Committee is not specifically recommending the award of operations and maintenance funding this year. Chapter 449 also states that local governments must consider and develop findings on whether or not new CF projects would reduce the County's capacity to accommodate planned growth. Grant agreements for approved projects between one or more of the project sponsors and the County will be developed by Environmental Public Health and submitted to the BoCC for approval. FISCAL IMPACT: The explicit purpose of the Conservation Futures Program is to fund acquisition projects to support a system of public open spaces. There is no impact to the General Fund for this effort. The following projects are anticipated to close during the remainder of 2021: Arlandia: $52,138 Big Quilcene River Moon Valley Reach (2" d of 2 properties): $2,500 Pending approval, Quimper Wildlife Corridor Additions: $69,500 The following previously approved projects are anticipated to close after 2019: Dosewallips River Lazy C: $7,649 Pending approval, Big Quilcene River— Moon Valley Acquisitions: $89,500 Pending approval, Camp Discovery Creek Acquisition: $140,000 Pending approval, Hannan Farm: $25,000 RECOMMENDATION: 1) Review the five project proposals brought forth by the CF Committee. 2) Hold a public hearing on September 7th, 2021 at 10:30 a.m. Consider the written and oral testimony at the public hearing and adopt any of the enclosed funding resolutions (with or without revisions) for project proposals and funding amounts that the Commissioners may wish to approve. REVIEWED BY: Mark McCauley, County Administrator Community Healfh Developmental Disabilities 360-385-9400 360-385-9401 (f) Date Always working for a safer and healthier community Environmental Public Healfh Wafer Qualify 360-385-9444 (f) 360-379-4487 ww�$ON 2021 Jefferson County Conservation Futures Program ti Property Acquisition and/or Operations and Maintenance Project Application 9g� I N G.SO 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 tookorny(@co.iefferson. 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(apnwsalmoncenter.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: tpokomy(aco.jefferson.wa.us This application was approved by the sponsor's legally responsible body (e.g., board, council, etc.) on: March 17th, 2021. 1 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 Logic RD, Quilcene WA 98376 Driving Directions from Port Townsend: Drive south to Quilcene WA. From Hwy 101, turn onto Glen Logic 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: 9702233001 - $171,408.00 9702233004 - $53,396.00 9702233005 - $78,065.00 #702233006 - $41,477.00 Appraisals and review appraisals were completed on both properties in August 2020. 4702233001 - $340,000 (floodplain section of parcel only) 9702233006 - $290,000 (including parts of 702233005 and 702233004. Boundary line adjustment in process). 8. Existing Conditions New Site: Yes G 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 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Proaram 2 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. 3 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Proaram 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 99 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. 4 2021 CF Program Application DRAFT http://wvvw.co.jefferson.wa.us/560/Conservation-Futures-Proaram, 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 I 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 % 5 2021 CF Program Application DRAFT http://wvvw.co.jefferson.wa.us/560/Conservation-Futures-Proaram, 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. I d. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution a proved? when? available now? when? SRFB $ 289,184.00 es No es No FbD $ 41,335.00 es No es No SRFB $ 404,891.00 Yes No 9/22/21 Yes 00 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 Xis 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? 6 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Proaram 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 I are not in place. 4 c. All parties X are _are not in agreement on the cost of acquisition. If "not" to any of the above, please explain below. 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/ru01 xmw6g5yga4b2c5mo9fl 9km5bvxkt). • 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. 7 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Proaram 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 roposed acquisition: 8 a. Xprovides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 8 b. X 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 ofspecies' use.' 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.httn 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 ' See, for example, http://www.dnr.wa.gov/researchscience/topics/naturatheritage/pages/amp nh.aspx hLtp://www.wdfw.wa.gov/conservation/phs/list/ hLtp://wwwl.dnr.wa.gov/nhp/refdesli/plants.htrnl v/nhp/refdesk/plants.html hLtp://wwwl.dnr.wa.gov/nhp/refdesk/pubs/wa ecological systems.pdf 8 2021 CF Program Application DRAFT http://wvvw.co.jefferson.wa.us/560/Conservation-Futures-Proaram, 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. 9 2021 CF Program Application DRAFT http://wvvw.co.jefferson.wa.us/560/Conservation-Futures-Proaram, 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 popula ions 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 resources3 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 10 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Proaram _ is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical or cultural resources. No known cultural resources are located in the acquisition areas. A cultural resource survey to further investigate this will be completed before any ground disturbing activities are started. O & M Stand Alone Projects 15. Applications for Operation and Maintenance funding only: Please describe in detail, the reason O&M funds are needed, proposed O&M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan, maps, field reports, work plan, budget, timeline, etc., to support the application, if appropriate. O & M projects must address a compelling, immediate need. N/A Verification 16. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project "report card" that will be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is required to submit pro ress r ports for three years and for any year in which O&M funds are expended. Initials Ate 17. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have not obtained the required matching funds, the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re -apply. If this application is approved for funding, I understand that we may be required to re -submit the applic tion if the project sponsor does not obtain the necessary matching funding within three year lnitial3 zG l 11 2021 CF Program Application DRAFT hun;I/wwW.i;U.j'IIG l�rtiotL.wtt.us/560/Conservation-f,'utures-Prop-rain Appendix A Project Attachments Overall Project Cost Conservation Futures Grant Request Match Property Costs 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 Operations and Maitenance Costs 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 Tota 1 $43,379.00 0 $43,379.00 Administrative Costs Item Qty Rate Project Administration 1 $39,680.00 $39,680.00 0 $39,680.00 Tota 1 $39,680.00 0 $39,680.00 Grand Total $818,469.00 $89,500.00 $728,969.00 Overall Project Cost Conservation FuturesMatch Grant Request 1 i 7— Big Quilcene River Moon Valley Project: Baclawski Property Aquisition. July, 2020 r - x 702233001 a + 'Y ' 702233005 702233001 40 702233006PAP PON del 702233006 • 1. �4 • ' N jk 702234001 Legend 702262000 '. Z3 1 MARK BACLAWSKI Big Quilcene River Moon Valley Project: Pollard Property Floodplain Aquisition Hood Canat+�t i ............... i i r r ient Group F"', -M"T MARK BACLAWSKI -* kf!. MARK BACLAWSKI L ECAMPS OF AMERI KEN#TH L MC EDWARDS TIMOTH L LOVE SHELBY J COLYOTT CYNTHIA L POLLARD • // RYAN NEWMAN t 6 CYNTHIA L POLLARD e�CYNTHIA L POLLARD ! a A.. t . ROBERT W BOLANDER I �i+ WORTHINGTON WOODLANDS LLC JEFFERS COUNTY 0o Ir - Legend 1 ■ �t�Uf E�:E ,.. �.'1 .k• , Liz :IZ!� �SP .� t\�.1: N...,�.�� 1�1 Big Quilcene River Moon Valley 0 0.125 0.25 �s Quilcene BaTA, 3 r� t� 7 2-1 OOD CA IV,, O IpC E N T E R JQ G � F�'HANCEMENS 0.5 . Miles Aerial View of Moon Valley , e ry, • ,. , ,rem,. •. ', ar; ,. - - a a i�` �" .ems• ;m - r : hr •� * � ,� � ter` � � _: �'' _ _ , v : - - • -04 Ar Ke ��F.' � Y.a. '..e _,s F, •r- � e^•�°1 r ... ;. �„°=p.�� ,S -.x� �' �5 �'� ��'y• , - Y � T� �' ., ,1, �'� :.. -. j-� a: a .. •. a ..{ r' u - :.d � e��- a',s Y. `� t,�� ' , R dt i * - y 4JOi� Ir Ir a II e . i 5 , u A — 1 i , .:-.-ATI, e F� a� s , { ! i k-1 y c _ a, Ap : .e ,a f e ' ■ e. , , Aw Q " . , Baclawski Property from the West Ar Ile -tar ttr, I 1- .1 ITPI Vol* 4 'r 4�, T 4,N 1 41 M L __734 Owl 71 Af 'W'v F"MMIML. iw- Baclawski Property N Jv, __ �. 71 ftc iti Pollard Property from the East 4 a' kv ti ! t!� � - 1 rt � . A. A '� 00 ' II IrI I ---J I I I I I I j / I I I I MAHAN I 1 I -- ---- BACLAWSKI BACLAWSKI I NEWMAN POLLARD evi. WH17AKER POLLARD I I MORGAN I , I --- 1� / �/DZIUBA WITT DUTTON00 o� PROPOSED RIPARIAN PLANTING ZONE *.I- I BROCKOPP S WHI I PROPOSED PROJECT BOUNDARY ----- / POLLARD I I ,. i. / / / I 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 CIS PORTAL. LEGEND I�I Izl I � O U Z O I � I I LL I I w I �I I I I I I I I I I I I I I I I I I PROPOSED CHANNEL EXCAVATION AREA PROPOSED CHANNEL FILL AREA EXISTING CHANNEL TO REMAIN FOR ALCOVE AND MAINSTEM FLOWS lL1SLSZSLd PLANTING AREA PROJECT AREA BOUNDARY PARCEL LINE SCALE 200 100 0 200 U) W J a Z) W U Z 0 om c w� N o � o ¢ J O N E o 3 N� I..L Z 7� O Z W Q W z O Q _ ��-/-� VJ Z W NW I..L 0 2 W J aJ`�z > o z V Z_ z U 0 ~ Q 0 co"--) w ,L o LULL 0 U G� DATE 00'05,2020 DRAWN FA DESIGNED I DE, M CHECKED ISM PROJECT# E318303,01 SHEE-TITLE SHEE-NUMBER 11 LANDUSE4 — Appendix H: Landowner Acknowledgement Form Appendix H: Landowner' c �r Acknowledgement Form�..`��y Landowner Information Name of Landowner: Landowner Contact Information: x Mr. Title: First Name: MARK Contact Mailing Address: 222 31st Avenue Seattle, WA 98122-6315 Last Name: BACLAWSKI Contact E-Mail Address: 1/0 or /<6 a e= G Contact Phone Number: a r> 6 — .7 9 6 -- q 5�T l Property Address or Location: APN 702 233 Doe Quilcene, WA 98376 1. (Landowner or Organization) is the legal owner of property described in this grant application. 2. 1 am aware that the project is being proposed on my property. 3. If the grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the roject sponsor, I will recuse myself from decisions made y Z oje pons work or purchase my property. Landowner Signature Date Project Sponsor Information Project Name: Big Quilcene Key Pieces Project Applicant Contact Information: ❑ Mr. ® Ms. Title Project Manager First Name: Tami Last Name: Pokorny Mailing Address: E-Mail Address: Public Health tpokorny@co.jefferson.wa.us 615 Sheridan St 360/379-4498 Port Townsend WA 98368 Page 109 Appendix F: Landowner Acknowledgement Form ° Appendix �� 0 � * X, 9 re, me, W Acknowledgement Form Landowner Information Name of Landowner: Mike and Cindy Pollard Landowner Contact Information: First Name: Mike Last Name: Pollard Contact Mailing Address: 330G|en Logie Rd, 0ui|osne\VVA98376 Contact E-MailAddress: �/"Jo�/c, «4 �~t/� '/,�� v 3oo " Property Address or Location: 330 Glen Logie Rd, Quilcene, WA 98376 t Mike and Cindy Pollard are the legal owners ofproperty described inthis grant application. 2. Iamaware that the project isbeingpn000sedonmyproperty ]. If the grant is successfully awarded, I will be contacted and asked to engage in negotiations. signatureriza i of project implementation. Y � / Landowner Signature Project Name: Big QuibeneMoon Valley Reach Acquisition and Planning Project Applicant Contact Information: Hood Canal Salmon Enhancement Group R K4c [—| Ms. Title First Name: Sarah Last Name: Heerhartz Mailing Address: PDBox 2169 BeKar,VVA9&S3D Manual 18, Salmon Recovery Grants ° March 2017 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 largerparcel: Appraiser Valuation Market Market Value Value of Damages Date Value — Value — Difference Property Before After Rights Project Project Acq uired Chad C. Johnson, 7-17-20 $510,000 -0- $510,000 $510,000 -0- MAI WA Cert No. (Scenario 1) 1101662 and Leslee A. Gilmore, WA Cert. $510,000 $240,000 $270,000 $238,500 $31,500 No. 1101840 (Scenario 2) $510,000 $285,000 $225,000 $187,200 $37,800 (Scenario 3) Chad C. Johnson, 7-17-20 $510,000 $170,000 $340,000 $340,000 -0- MAI WA Cert No. (Scenario 4) 1101662 and Leslee A. Gilmore, WA Cert. No. 1101840 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 I 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 52-021227CL. 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 2 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 3 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. MrMrM. ACOOSIMN AREA -SCEMW rM Under Scenario Three 20.80 acres located in the southerly portion of the properly 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. 0010Yiiin[M4ESIPTIMeiC� tii 43 SLR i�Y�4 I� Richard F. Duncan, MAI Page 4 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 5 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 6 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 7 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 8 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 9 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 WSDOTListofApproved 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 Richard F. Duncan, MAI Page 10 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 11 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 affect 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, or 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 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 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 12 RFDuncan 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 Richard F. Duncan, MAI Page 13 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. I 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 14 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" Richard F. Duncan, MAI Page IS RFDuncan 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 o f 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 16 RFDuncan 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 largerparcel: Appraiser Valuation Market Market Value Value of Damages Date Value — Value — Difference Property Before After Rights Project Project Acq uired Chad C. Johnson, 7-17-20 $510,000 $220,000 $290,000 $183,200 $106,800 MAI WA Cert No. 1101662 and Leslee A. Gilmore, WA Cert. No. 1101840 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. Richard F. Duncan, MAI Page 1 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 Richard F. Duncan, MAI Page 2 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 Richard F. Duncan, MAI Page 3 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 4 RF Duncan and Associates, Inc REVIEWER'S DETERMINATION OF VALUE NO. 1 DETERMINED VALUE BEFORE PROJECT DETERMINED VALUE AFTER PROJECT: VALUE DIFFERENCE DETERMINED: ESTIMATED JUST COMPENSATION: Reviewer's Allocation of Just Compensation Acquisition: Land Acquired in Fee 30.53 acres x $6,000/acre: Improvements Acquired: Damages: Special Benefits: Total Just Compensation This Larger Parcel: $510,000 $220,000 $290,000 $290,000 $183,200 -0- $106,800 -0- $290,000 Richard F. Duncan, MAI Page 5 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 WSDOTListofApproved 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 Richard F. Duncan, MAI Page 6 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 7 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 affect 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, or 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 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 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 8 RFDuncan 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 9 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. I 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 10 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" Richard F. Duncan, MAI Page II RFDuncan 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 o f 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 12 RFDuncan and Associates, Inc. Appendix B Application Sponsor Private Non -Profit Organization Attachments Applicant Resolution/Authorization Organization Name: Hood Canal Salmon Enhancement Group Project Name: Moon Valley Acquisitions This resolution/authorization authorizes the person(s) identified below (in Section 2) to act as the authorized representative/agent on behalf of our organization and to legally bind our organization with respect to the above Project(s) for which we seek grant funding assistance managed through Jefferson County. WHEREAS, grant assistance is requested by our organization to aid in financing the cost of the Project(s) referenced above, NOW, THEREFORE, BE IT RESOLVED that: 1. Our organization has applied for or intends to apply for funding assistance managed by Jefferson County for the above "Project" 2. Our organization authorizes the following persons or persons holding specified titles/positions (and subsequent holders of those titles/positions) to execute the following documents binding our organization on the aboveprojects: Nam Grant application (submission thereof) IMendy Harlow — Executive Director Project contact (day-to-day Ous Johnson — Project Manager administering of the grant and communicatin:; with Jefferson Coun=;,r) Jefferson County Grant Agreement Agreement amendments Authorizing property and real estate documents (Notice of Grant, Deed of Right or Assignment of Rights if applicable). These are items that are typical recorded on the property with the county. Mendy Harlow — Executive Director Mendy Harlow — Executive Director Mendy Harlow — Executive Director The above persons are considered an "authorized representatives)/agent(s)" for purposes of the documents indicated. Our organization shall comply with a request from Jefferson County to provide documentation of persons who may be authorized to execute documents related to the grant 3. Our organization acknowledges and warrants, after conferring with its legal counsel, that its authorized representatives)/agent(s) have full legal authority to act and sign on behalf of the organization for their assigned role/document 4. Grant assistance is contingent on a signed Agreement Entering into any Agreement with Jefferson County is purely voluntary on our part 5. Any grant assistance received will be used for only direct eligible and allowable costs that are reasonable and necessary to implement the project(s) referenced above. 6. Our organization acknowledges that if it receives grant funds managed by Jefferson County, the County will pay us on only a reimbursement basis. We understand reimbursement basis means that we will only request payment from the County after we incur grant eligible and allowable costs and pay them. Our organization acknowledges that any property acquired with grant assistance must be dedicated for the purposes of the grant in perpetuity unless otherwise agreed to in writing by our organization and the County. We agree to dedicate the property in a signed "Deed of Right" for fee acquisitions, or an "Assignment of Rights" for other than fee acquisitions to be recorded on the title of the property with the county auditor. Our organization acknowledges that any property acquired in fee title must be immediately made available to the public unless otherwise provided for in policy, the Agreement, or authorized in writing by the County. 8. This resolution/authorization is deemed to be part of the formal grant application to Jefferson County. 9. Our organization warrants and certifies that this resolution/authorization was properly and lawfully adopted following the requirements of our organization and applicable laws and policies and that our organization has full legal authority to commit our organization to the warranties, certifications, promises and obligations set forth herein. This resolution authorization is signed and approved on behalf of the resolving body of our organization by the following aut rizedl memf� ber(s): Signed — Title 7 0- S 11�- -56a, 4J' Ii� iiQ_ Date t' Z • �6 I ► :T� JiiILIL !/I This Applicant Resolution/Authorization was adopted by our organization during the meeting held: (Local Governments and Nonprofit Organizations Only): r 12-1 Location: Date: 3`I6 INTERNAL REVENUE SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE MONTEREY PARK, CA 91755-7406 Date: ,(': � , r HOOD CANAL SALMON ENHANCEMENT GROUP ATTN KATHERINE O MARSH PO BOX 7 BRINNON, WA 98320-0007 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 91-1518294 Case Number: 955332004 Contact Person: TYRONE THOMAS Contact Telephone Number: (213) 894-2289 Our Letter Dated: January 1992 Addendum Applies: No This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509 (a) (1) and 170 (b) (1) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a)(1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a section 509(a)(1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, Richard R. Orosco District Director Letter 1050 (DO/CG) HCSEG 2020 Budget REVENUE ■ r $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 In Thousands REVENUE FY 2019 FY 2020 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 $ 24,8S1.66 $ S0,000.00 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 $ 21,27S.00 $ 14,000.00 Membership $ 3,141.S0 $ 4,000.00 Crewlncome $ 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 I $ 2,828,264.00I $ 535,000.00 FCRP_Il„r4ah,ich Fcfi— 11.6 nc,innnrf C An 2SSM C 1nR mn nn 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 EXPENSES ■ FY 2020 PROPOSED ■ FY 2019 PRIOR YEAR $4,200 $4,400 34,600 $4,800 $5,000 $5,200 $5,400 $S,600 $s,800 In Thousands EXPENSES FY 2019 PRIOR YEAR FY 2020 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 Legalfees 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 W CC 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 Page 2 of 2 HCSEG - BOARD MEMBER ROSTER - JAN 2021 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 (Peggy passed away 360.471.7812 425-657-0517 (H) bphager@msn.com 98027 4-25-20) (does not carry on person) 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 flVbi112@aol.com 738 NW Westover Square, Portland OR 97210 and PO Box Mike Henderson Treasurer 1300, Belfair Donna 503-936-8395 360-275-8235 mchendo@me.com 16461 E St Rt 106 Belfair, WA 98528 (only Belfair UPS & fedx delivery) 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 Hawleyy Board Member PO Box 1254 All, n WA 98524 Shawna Stice- 360-620-9033 360-275-3420 (H) moosebugsy@wavecable.com Hawle Y cell 360-464-8446 Jeanne Robinson Boardmember (August 2019) 661 West Kamilche Lane, Shelton, WA 98584 Tina Robinson home 360-427-4273 360-819-9721 JeanneRobinson67@gmail.com (Tina) work 360-705-7154 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 10443 Occidental Ave S. Seattle WA 98168 - 206-779-1071 - KelliKohout dwt.com KelliKohout@dwt.com (August 2019) 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 22-23 ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; 24-25 REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 26-27 CLARKE WHITNEY, CPA, INC. 610 Warren Avenue Bremerton, WA 98337 CERTIFIED P UBLIC A CCO UNTANTS Phone: 360-377-4496 www.clarkewhitney.com 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. A I-(51 4�1 r4,. M . 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 With Donor Donor 2019 Restrictions Restrictions 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 1 $ 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 Revenues Revenues, gains and support Grants and contracts Contributions Dues -membership Program income Investment income (loss) Rental income Other income and gains Total revenues, gains and support Sales Sales revenue Cost of goods sold Gross profit Net assets released from restrictions Satisfaction for use restrictions Total revenues Expenses Program services Management and general Fundraising Total expenses Change in net assets Net assets, beginning of year Net assets, end of year Without With Donor Donor 2018 Restrictions Restrictions Total 41,551 1,738 57,354 10,800 105 111,548 8,984 (6,813) 2,171 1,312,041 1,425,760 1,352,516 95,947 1,448,463 ( 22,703) 1,405,026 $ 1.382.323 $ 2,245,673 10,189 (4,304) 2,251,558 (1,312,041) 939,517 939,517 1,747,889 $ 2,687,406 $ 2,245,673 51,740 1,738 57,354 (4,304) 10,800 105 2,363,106 8,984 (6,813) 2,171 2,365,277 1,352,516 95,947 1,448,463 916,814 3,152,915 $ 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 Staff salaries Staff payroll taxes Staff payroll benefits Total salaries and related expenses Advertising Bad debt Bank charges Contract labor Dues, licenses and subscriptions Education and outreach Equipment rental Insurance Interest expense Meetings and conferences Miscellaneous Postage Prizes and gifts Professional services Rental expenses Repairs and maintenance Research projects Restoration projects Scholarships Supplies Taxes Telephone Travel and transportation Utilities Total expenses before depreciation and amortization Depreciation and amortization Total functional expenses 2019 Program Management Fundraising Total $ 413,663 $ 50,202 $ - $ 463,865 44,456 5,383 - 49,839 58,703 7,124 - 65,827 516,822 62,709 - 579,531 2,706 - - 2,706 313 - - 313 - 3,027 - 3,027 157,951 - - 157,951 9,416 1,005 - 10,421 21,964 - 2,016 23,980 13,952 - - 13,952 12,243 3,061 - 15,304 75,649 18,912 - 94,561 5,211 - - 5,211 6 - - 6 1,132 - - 1,132 22,406 2,307 - 24,713 698 2,696 - 3,394 25,154 6,288 - 31,442 39,608 - - 39,608 937,900 - - 937,900 2,979 - - 2,979 3,978 - - 3,978 - 4,074 - 4,074 3,142 - - 3,142 3,808 - - 3,808 7,348 1,837 - 9,185 1,864,386 105,916 2,016 1,972,318 57,616 10,167 - 67,783 $ 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 2018 Program Management Fundraising 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 1,301,138 86,880 - 1,388,018 amortization 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 Cash flows from operating activities Change in net assets Adjustments to reconcile the change in net assets to net cash provided by operating activities: Depreciation and amortization Capitalized in -kind contributions Unrealized loss (gain) on investments Loss (gain) on sale of fixed assets (Increase) decrease in operating assets: Restricted and reserved cash Contracts and grants receivable Costs in excess of billings Prepaid expenses Increase (decrease) in operating liabilities: Accounts payable Accrued liabilities Lease deposit Net cash provided by operating activities Cash flows from investing activities Endowment fund investments Payments for the purchase of property and equipment Proceeds from the sale of fixed assets Appropriations from endowment fund investments Net cash used by investing activities Cash flows from financing activities Proceeds from borrowings Payments on borrowings Net cash provided (used) by financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 2019 $ 2,899,855 67,783 (1,761) (9,045) 527 (23,732) 18,116 (142,3 84) (8,800) 100,367 6,564 2,907,490 (2,380) (2,991,583) 250 (2,993,713) 2018 $ 916,814 60,445 5,726 (28,566) (130,475) 22,672 (1,760) 136,313 15,540 100 996,809 (2,154) (1,021,482) 732 (1,022,904) 192,157 125,382 (I16,342) (163,776) 75,815 (38,394) (10,408) (64,489) 29,588 94,077 $ 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. 0 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: Endowment net assets, as of January 1, 2019 Contributions Investment income (loss) Without Donor Restrictions With Donor Restrictions $ 64,198 Total Net Endowment Assets $ 64,198 - 11,425 11,425 Endowment net assets, as of December 31, 2019 $ - $ 75.623 $ 75,623 Investment income (loss) includes the following: Dividends and interest earned Unrealized gain/(loss) Realized gain/(loss) Amounts appropriated for expenditures Total 2019 $ 2,955 9,045 177 (752) $ 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 2021 2022 2023 Total 12,313 12,313 12,313 9,155 $ 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: 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. Less current portion of long-term debt Total notes payable, net current portion of long term debt Future maturities of debt over the next five years are as follows: Year ended December 31, 2020 2021 Total NOTE H - OPERATING LEASE COMMITMENTS 2019 1,108,670 (46,277) $ 1,062,393 46,277 1,062,393 $ 1,108,670 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 Level Level 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 Grantor/ Pass -through Pass -through Federal Entity Total Prior Years Current Total Project Remaining Federal Grantor/Program CFDA Identifying Grant Amount Matching Project Federal Year Federal Federal Budget for Agency or Cluster Title Number Name of Program Number Date Contribution Cost Expenditures Expenditures Expenditures Federal Exp Department of US Fish and 15.630 USFWS Passthrough F17AC00304 $ 137,339 $ $ 137,339 $ 136,919 $ 420 $ 137,339 $ the Interior Wildlife Service Funding July 5, 2017 Department of US Fish and 15.630 USFWS Passthrough FISAC00628 149,010 149,010 58,460 90,550 149,010 the Interior Wildlife Service Funding August 9, 2018 Department of US Fish and 15.630 USFWS Passthrough F19AC003685 137,063 137,063 - 92,061 92,061 45,002 the Interior Wildlife Service Funding August 1, 2019 Department of Washington 15.614 Big Beef Creek SEANCWCP- 980,000 367,949 1,347,949 980,000 980,000 - the Interior Department of Estuary Acquisition 2018-HoSEG- January 1, 2018 Ecology / USFWS 00013 Passthrough F I SP00148 Department of US Fish and 15.630 Big Quilcene Moon F17AC00378 35,000 35,000 12,426 22,574 35,000 the Interior Wildlife Service Valley Reach July 25, 2017 Acquisition & Plan Department of US Fish and 15.630 Moon Valley Reach F18AP00733 82,500 - 82,500 82,125 375 82,500 the Interior Wildlife Service Acquisition & July 25, 2017 Enhancement Project Department of Washington 15.508 WDFW RFEG Funds WDFW 17- 160,312 199,181 359,493 128,247 32,065 160,312 - the Interior Department of Fish 09066 July 19, 2017 and Wildlife Department of Washington 15.508 WDFW RFEG Funds WDFW 19- 178,521 10,218 188,739 - 63,447 63,447 115,074 the Interior Department of Fish 13695 July 1, 2019 and Wildlife Department of National Fish and 15.633 Hood Canal Weed NFWF- 163,996 - 163,996 144,127 1,250 145,377 18,619 the Interior Wildlife Management Area 1701.16.054383 January 18, 2017 Foundation Department of National Fish and 11.473 Lower Big Quilcene NFWF- 229,308 300,000 529,308 - 2,207 2,207 227,101 Commerce Wildlife River Restoration 0318.18.062599 November 11, 2018 Foundation Design Department of National Oceanic 11.411 Steelhead - Hood NOAA-133MF- $ 18,500 $ - $ 18,500 $ 6,269 $ 12,231 $ 18,500 $ - Commerce and Atmospheric Canal Steelhead 18-PNFFP0036 June, 29, 2019 Administration Project See accompanying notes to schedule of expenditures of federal awards 18 Federal Grantor/ Pass -through Pass -through Federal Entity Total Prior Years Current Total Project Remaining Federal Grantor/Program CFDA Identifying Grant Amount Matching Project Federal Year Federal Federal Budget for Agency or Cluster Title Numbe Name of Program Number Date Contribution Cost Expenditures Expenditures Expenditures Federal Exp Department of National Oceanic 11.411 Steelhead - Hood NOAA- $ 18,500 $ $ 1,800 $ - $ 8,457 $ 8,457 $ 10,043 Commerce and Atmospheric Canal Steelhead 1305M3-19- July 1, 2019 Administration Project PNFFP 0168 United States Environmental 66.951 HC Environmental EPA-OIJ36301 91,000 31,536 122,536 74,986 16,014 91,000 - Environmental Protection Agency Exploration and May 4, 2017 Protection Education Project Agency (EPA) United States Hood Canal 66.123 Hood Canal Reg EPA- 62,000 62,000 36,778 8,739 45,517 16,483 Environmental Coordinating Pollution ID and PCOIJ18001-0 June 26, 2017 Protection Council Correction Agency (EPA) United States Washington 66.123 Hood Canal LLTK-SSMSP- 10,150 10,150 741 365 1,106 9,044 Environmental Department of Zooplankton Sample 54 June 14, 2017 Protection Health Agency (EPA) United States Recreation and 66.456 Hood Canal Summer RCO 16-1476 189,141 33,380 222,521 63,989 125,152 189,141 Environmental Conservation Chum Riparian May 8, 2018 Protection Office Enhancement Agency (EPA) United States Recreation and 66.456 Big Beef Creek RCO 18-2228 1,945,716 1,229,065 3,174,781 1,880,062 1,880,062 65,654 Environmental Conservation Acquisition CE-OIJ31901 July 1, 2019 Protection Office Agency (EPA) Department of Recreation and 11.438 Tahuya River RCO 17-1058 208,930 51,879 260,809 42,786 83,685 126,471 82,459 Commerce Conservation Watershed Assessment August 22, 2018 Office Department of Recreation and 11.438 Hood Canal Forage RCO 16-1474P 17,609 27,650 45,259 8,270 9,339 17,609 - Commerce Conservation Fish Assessment January 31, 2017 Office Department of Recreation and 11.438 Duckabush Estuary RCO 16-1492 312,044 - 312,044 139,747 61,074 200,821 111,223 Commerce Conservation Restoration Supp February 20, 2018 Office Acquisition Department of Recreation and 11.438 Union River Reach RCO 17-1059 $ 122,635 $ 21,642 $ 144,277 $ 45,603 $ 62,616 $ 108,219 $ 14,416 Commerce Conservation Restoration Planning August 22, 2018 Office See accompanying notes to schedule of expenditures of federal awards 19 Federal Grantor/ Pass -through Pass -through Federal Entity Total Prior Years Current Total Project Remaining Federal Grantor/Program CFDA Identifying Grant Amount Matching Project Federal Year Federal Federal Budget for Agency or Cluster Title Numbe Name of Program Number Date Contribution Cost Expenditures Expenditures Expenditures Federal Exp Department of Recreation and 11.438 Union River Summer RCO 18-1242 $ 102,497 $ 87,643 $ 190,140 $ $ 46,149 $ 46,149 $ 56,348 Commerce Conservation Chum Out -Migration December 5, 2018 Office Assessment Department of Recreation and 11.438 Hood Canal Riparian RCO 19-1296 $ 191,250 $ 33,750 $ 225,000 $ $ 8,366 $ 8,366 $ 182,884 Commerce Conservation Enhancement and December 12, 2019 Office Knotweek Control Total Expenditures of $ 3,6 77,198 Federal Awards 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. 610 Warren Avenue Bremerton, WA 98337 CERTIFIED P UBLIC A CCO UNTANTS Phone: 360-377-4496 www.clarkewhitney.com 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. 610 Warren Avenue Bremerton, WA 98337 CERTIFIED P UBLIC A CCO UNTANTS Phone: 360-377-4496 www.clarkewhitney.com 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. arkG W f*4 f ;q�sac. 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? 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)? 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 yes yes 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 �1gON �� 2021 Jefferson County Conservation Futures Program Property Acquisition and/or I No Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer "N/A"for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at 379-4498 or tpokornyPco.iefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: Camp Discovery Creek Acquisition 2. Conservation Futures Acquisition Request: $140,000 Conservation Futures O&M Request: $0 3. Total Conservation Futures Request: $140,000 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? Northwest Watershed Institute 5. Applicant Information Name of Applicant or Organization: Northwest Watershed Institute Contact: Peter Bahls Title: Executive Director/Conservation Biologist Address: 3407 Eddy Street, Port Townsend, WA 98368 Phone: (360) 385-6786, ext. Email: peter@nwwatershed.org 6. Sponsor Information: (if different than applicant) Same Organization Name: Contact: Title: Address: Phone:. Fax: O - , ext. Fax: (360) 385-2839, ext. This application was approved by the sponsor's legally responsible body (e.g., board, council, etc.) on March 26, 2021 1 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program 7. Site Location Street Address or Description of Location: East of Toandos Road, headwaters of Camp Discovery Creek Driving Directions from Port Townsend: South on Coyle Road, right on Toandos Road and continue approx. % mile to property to the south of Toandos Road. Section: 15 Township: 27 N Range: 1 W Assessor's Parcel Number(s): 701-151-002 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. The parcel is to be acquired with CF funds Please list the assessed values for each property or APN, as applicable. $347,532 8. Existing Conditions New Site: Yes No Addition to Existing Site: Yes No Total Project Acreage (if different): Existing Structures/Facilities: No Number of Parcels: 1 Acres to Be Acquired: 80.6 Current Zoning: 1 per 80 Any current covenants, easements or restrictions on land use: No Current Use: Forestry Waterfront (name of body of water): Camp Discovery Creek Shoreline (linearfeet): % mile of Camp Discovery Creek and tributaries Owner Tidelands/Shorelands: NA 9. Current Property Owner X is is not a willing seller. Project Description 10. In 1,000 words or less, provide a summary description of the project, the match, overarching goal, and three top objectives. Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including: vegetation, topography, surrounding land use, and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition (including passive development), characteristics of the site which demonstrate that it is well -suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site relates to the larger project, and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. 2 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am Background, goals, and objectives Since 2002, Northwest Watershed Institute (NWI), Jefferson Land Trust, and over 40 partnering organizations have been working on a landscape scale project to protect and restore the Tarboo- Dabob Bay watershed, with over 4,000 acres conserved to date. The three main objectives of the conservation effort are to: 1) protect and restore the stream and wetland corridor, from the headwaters of Tarboo Creek to Dabob Bay, 2) conserve uplands for sustainable forestry, 3) preserve lands within the Dabob Bay Natural Area. For this project, NWI proposes to acquire and permanently protect upper Camp Discovery Creek, the second largest independent tributary to Tarboo-Dabob Bay and partly within the boundaries of the Dabob Bay Natural Area. The project includes streams, wetlands and riparian habitats and that support a high diversity of native species. Most of downstream Camp Discovery Creek is protected within the Dabob Bay Natural Area. Proposed uses The parcel will be owned and managed by NWI. The deed restriction and Navy restrictive easement will be sold that will prevent residential development. Selective timber harvest of the existing tree plantation is proposed to restore complex older forest structure and habitat. A walking trail system for supervised public school and other tours is planned. There is a possibility that in several years DNR will purchase the south half (40 acres) from NWI to reimburse NWI for part of the match for the initial purchase. Only the south 40 is already within the boundary of the Dabob Bay Natural Area where DNR has ability to purchase lands if they can receive funding in the future. Critical dates and urgency Rayonier has agreed to hold off on planned clearcutting of the property for a limited time to allow NWI to raise funding for purchase. Budget JCCF Match to Total Request JCCF Cost Timeline Acquistion Rayonier Property - fee simple 120,000 521,000 641,000 Jun-22 Acquisition Related Costs: 14,000 14,000 Sep-21 to Jun-2022 Project management and administration 6,000 6,000 Sep-21 to June-22 Total Project Costs 140,000 521,000 661,000 Percent match to JCCF 79% 3 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s) to be acquired, even if Conservation Futures funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies) to be Acquired: 641,000. Total Estimated Acquisition -related Cost (see Conservation Futures Manual for eligible costs): $20,000 Total Operation and Maintenance Cost: $0 Total Project Cost: $661,000 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition - related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Estimate of fair market value is based on a preliminary estimate from professional USPAP appraisal of timber and land by Greg Richards and Marty Strickland (forester) that is due for completion on April 2, 2021. O & M only go to question #15: Scored Questions 1 a. Sponsor or other organizations X will will not contribute to acquisition of proposed site and/or operation and maintenance activities. 1 b. If applicable, please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. 1 c. Matching Fund Estimate Acquisition O&M % Conservation Futures Funds Requested $140,000 $0 21% Matching Funds/Resources* $521,000 $0 79% Total Project Acquisition Cost $661,000 $0 100% * If aprior acquisition is being proposed as match, please describe andprovide 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? Navy REPI $200,000 Yes No 2022 Yes No 2022 4 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am NWI $321,000 Yes No 2022 Yes No 2022 NOTE: Matching funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation ofproperty or aproperty right will be considered as a matching resource. Donation of resources for on -going maintenance or stewardship ("in -kind" contributions) are not eligible as a match. 2 a. Sponsoring agency X is is not prepared to provide long-term stewardship (easement monitoring, maintenance, up -keep, etc.) for the proposed project site. 2 b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. Northwest Watershed Institute plans to manage the parcel long term, although the south 40 may be transferred to DNR for management as part of the Dabob Bay Natural Area. NWI will prepare a Stewardship Plan and conduct weed control. Long-term stewardship of the Camp Discovery Creek parcel can be efficiently incorporated into NWI's existing operations because NWI's main base of operation is the 400-acre Tarboo Wildlife Preserve in the Tarboo valley, located several miles from the proposed project. NWI already employs an experienced professional staff, including aquatic ecologist and botanist and field crew that conduct annual restoration projects, monitoring, and stewardship at properties in the Tarboo watershed. 3 a. Describe the sponsoring agency's previous or on -going stewardship experience. Northwest Watershed Institute is a nonprofit conservation organization that provides scientific, technical and on -the -ground support for watershed restoration and has been conducting habitat stewardship and restoration projects in the Tarboo watershed for 18 years. NWI has extensive experience stewarding and managing the Tarboo Wildlife Preserve and conservation properties owned by other landowners using professional staff, experienced field crew, and volunteers. NWI forestlands are certified by the Forest Stewardship Council and NWI recently completed a successful selective harvest in the Tarboo forest. 3 b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? No, neither the sponsor nor applicant has been involved in a project previously approved for Conservation Futures funds. X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: Yes. Nine conservation easement and one fee simple project proposed by NWI and JLT were previously approved for CF funding as part of the landscape scale conservation project in the Tarboo 5 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am watershed. Nine projects have been successfully completed and the 2020 Upper Tarboo Wetlands Project acquisitions were recently completed, with restoration planned for 2021. 4 a. Property X can _cannot feasibly be acquired in a timely fashion with available resources. 4 b. Necessary commitments and agreements are X are not in place. 4 c. All parties _are X are not in agreement on the cost of acquisition. If "not" to any of the above, please explain below. Rayonier has expressed their motivation to sell by July of 2021 and NWI is optimistic that purchase agreements can be secured. 5. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the 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 south % of the project is within the Dabob Bay Natural Area boundaries, as developed by DNR and partners through scientific assessment and public hearing process, and is a high priority for protection. Most of the remainder of Camp Discovery Creek is already protected or protection is underway. The project will fill the critical remaining gap in completing the protected stream corridor from the headwaters of Camp Discovery Creek to Dabob Bay. The project is identified as a conservation priority in the following plans: Jefferson Land Trust's Jefferson County Conservation Plan (2010) identifies the project area as within a priority habitat conservation stream corridor. https://www.saveland.org/wp- content/uploads/2016/06/2010 JLT Conservation Plan LoRes.pdf The project is within the Dabob Bay priority area of the Tarboo Creek/Dabob Bay Implementation Strategy, a Sub -Plan of JLT's Jefferson County Conservation Plan (2010). The project is a top priority in Northwest Watershed Institute's Tarboo Watershed Conservation Strategy to protect and restore Tarboo-Dabob Bay (objective 3) (http://www.nwwatershed.org/conservation-strategy.htm1). The proposed properties are within a priority terrestrial conservation area identified and mapped in the Willamette Valley- Puget Trough- -Georgia Basin Ecoregional Assessment (2004 Floberg et all. This priority area includes much of the Tarboo and Thorndyke watersheds. The Ecoregional plan, developed by Washington Department of Fish and Wildlife and The Nature Conservancy, is one of the primary conservation plans for Puget Sound and has received extensive public and scientific review. 6 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am 6. Conservation Opportunity or Threat: 6 a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 6 b. If applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. High urgency! Rayonier has plans to clearcut the parcel and has already surveyed in some road access locations. However, Rayonier has agreed to hold off on the proposed sale to see if NWI can do a conservation purchase. CF funding in 2021is urgently needed to leverage other potential funding from private donors and other grant sources. 7. Summarize the project's conservation values and how the CF funds requested support these values. The project represents a high benefit to cost ratio of CF funds because the CF funds are a small fraction (21%) of the overall project funding and the project has extremely high benefits for wildlife conservation, cultural resources, and education. The proposed project will fully protect and restore a critical gap in the stream and wetland conservation corridor that extends from the headwaters of Camp Discovery Creek to Tarboo-Dabob Bay, a priority in the landscape scale conservation effort for Dabob Bay. The 80 acres of forest, streams and ravien includes habitat, important to anadromous fish and many other native species and as a tribal cultural resource and valuable for environmental education. 8. The proposed acquisition: 8 a. X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 8 b. X provides habitat for a variety of native flora or fauna species. 8 c. X contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above, please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species' use.' Priority and Listed Species on -site Camp Discovery Ck and tributaries Western toad Pileated woodpecker Puget Sound steelhead -possible Hood Canal coho salmon Western Brook lamprey Priority Riparian Habitat State Candidate and Federal Species of Concern State Candidate State Candidate and Federal Threatened Federal Species of Concern Federal Species of Concern Listed Species benefited downstream in Tarboo-Dabob Bay (documented rearing habitat) ' See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/panes/amp_nh.aspx hLtp://www.wdfw.wa.gov/conservation/phs/list/ http://wwwl.dnr.wa. og v/nhp/refdesk/plants.htfnl hiip://wwwl.dnr.wa. og v/nhp/refdesk/pubs/wa_ecological, st�pdf 7 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am Hood Canal summer chum salmon State Candidate and Federal Threatened Puget Sound Chinook salmon State Candidate and Federal Threatened Provides habitat for a variety of native flora and fauna The project will protect and restore riparian, wetland and forest habitats that support a high diversity of at -risk fish, bird, amphibian, and mammal species, including western toad, waterfowl, and salmonids, and neo-tropical migratory birds. Camp Discovery Creek is the second largest stream entering Dabob Bay and the large property, with % mile of creek and tributaries, provides habitat for salmonids and the full complement of species that occur in PNW forests and streams. Wildlife corridor The proposed project, at the headwaters, is the last major step needed to protect the entirety of Camp Discovery Creek stream corridor. The project is located upstream of protected properties with the Dabob Bay Natural Area. The parcel is at the upper end of the stream corridor that functions as a single unit and a critical wildlife corridor for amphibians, fish, and other wildlife moving along Camp Discovery Creek. 8 d. Does the current owner participate in conservation programs that enhance wildlife habitat? If so, please provide details. Yes — the proposed owner is Northwest Watershed Institute which has been leading the Tarboo- Dabob Bay Conservation Program for 19 years. 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. This is a very important project for conserving anadromous fish species. The project will safeguard and restore the last major gap in protection along the upper mainstem of Camp Discover Creek, which provides documented spawning and rearing habitat for native coho salmon, coastal cutthroat trout, fall chum salmon, and potentially steelhead. 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 funds. N/A 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. 8 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am Protection and restoration of Camp Discovery Creek will maximize wetland functions of preserving water quality and wildlife habitat, while allowing sustainable harvest of timber and other forest resources. 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. NWI plans to conduct to selectively cut the 30+ year old plantation forest that is growing on the upland portions of the property to restore older forest structure, function and habitats and provide sustainable timber products. 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. Northwest Watershed Institute has been conducting forest related watershed restoration for 19 years including road removal, forest tree planting, stream culvert replacement and invasive species removal, and timber harvest. The proposed restoration will involve long term use of silvicultural practices to restore older forest habitat. 11 c. Describe how the property acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. The primary goal of the project is to preserve and restore Camp Discovery Creek and restore diverse older riparian forest habitat. 12 a. Describe how the proposed acquisition benefits primarily a _local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. The proposed project benefits a broad county area because it is a key part of the much larger conservation effort that spans from the headwaters of Tarboo Creek to the state's Dabob Bay Natural Area. In particular, the project will protect a critical "gap" in the Camp Discovery Creek corridor that will directly benefit salmon habitat and biodiversity and safeguard water quality in downstream Dabob Bay, which has been recognized as a state and national priority for conservation due to its diverse estuarine habitats and valuable shellfish production. 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. Yes, the project is in an under -represented area — on Toandos Peninsula 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 Upper Tarboo Creek Wetlands Preserve will serve as an important site for educating the public on forest protection and sustainable use. The site is easily accessible Toandos Road and NWI plans to 2 The words "education" and "interpretation" are interpreted broadly by the CF Committee. 9 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am develop a small foot trail system to host workshops, tours and other public events to expand understanding and adoption of forest restoration methods. As mentioned below, the property will also serve an important educational purpose as a place for the Tribes to pass on traditions of sustainable gathering of forest plants used for cultural purposes and ceremonies. The properties are also available for public access by prior permission, including deer hunting, berry picking, and mushroom picking, three important recreational uses in rural areas. 14. The proposed acquisition includes historic or culturally significant resources3 and is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite orprovide documentation of the historical or cultural resources. The JCCF grant application states that cultural resources include "...traditional, religious, ceremonial, and social uses and activities of affected Indian Tribes...". The Camp Discovery Creek wetlands are an important cultural resource under this definition. The Port Gamble S'Klallam Tribe, Jamestown S'Klallam Tribe, Lower Elwha S'Klallam Tribe, and Skokomish Tribe are signatories to the Point No Point Treaty and retain the right to hunt and gather within their Usual and Accustomed Area, including the Tarboo watershed. These Tribes continue to rely upon a diversity of intact native plant communities in the region, as they have for thousands of years, as places where they gather traditional food, medicine, and materials for use in all aspects of their cultural life, including social and religious. The project site's forests will eventually provide resources for tribal uses, such as cedar bark for basket weaving. If funded, the project will permanently conserve the forest while allowing sustainable harvest and gathering to maintain tribal cultural traditions. 3 Cultural resources means archeological and historic sites and artifacts, and traditional religious ceremonial and social uses and activities of affected Indian Tribes and mandatory protections of resources under chapters 27.44 and 27.53 RCW 10 2021 CF Program Application DRAFT hqp://www.co.jefferson.wa.us/560/Conservation-Futures-Pro rg_am U & M Stand Alone Projects 15. Applications for Operation and Maintenance funding only; Please describe in detail, the reason 0&M funds are needed, proposed O&M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan, maps, field reports, work plan, budget, timeline, etc., to support the application, if appropriate. 0 & M projects must address a compelling, immediate need. Verification 16. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project "report card" that wiII be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is 7ffd to submit progress reports for three years and for any year in which O&M funds are expended. Initials /'lot 14 Date Z, Zl 17. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have not obtained the required matching funds, the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re -apply. If this application is approved for funding, I understand that we may be required to re- it the application if the project sponsor does not obtain the necessary matching funding within three years. Initials Date 2021 CF Program Application DRAFT hitp:i/Nvww.co.jeffersoitwa. us/560/Conservation-Pithaes-Proaram r�Dabob'Bay Natural Area r ' A. s 1" j PROJECT I r+ IY" #� "r iA 7 t , Northwest Watershed Institute -- 3 2019 lidar imagery Projection, NAD 1983 State Plane Wash, North I 0 0.5 1 ` yl •=� I � a i l .� Miles Parcel Ownership Easement Type Li NW Watershed Rayonier County Park ell Conservation — Easement DNR NaturalArea + Under Appraisal Other - Private Land Boundaries WDWF Critical MJq DNR Trust Lands Other - Public Habitat Preserve Dabob Bay Natural Area 1. Project vicinity map A s i PROJECT 2. Project site in relation to Camp Discovery and Dabob Bay protected lands (green) 10 0 0.5 1 Mlles i 06 s i� Y, A z� Prev us purch s from P e Reso ces Proposed Upper 4 Camp Discover Ck Ak lK �i i A Landslide and Erosion High (93% of mapped sites) ' Moderate (5% of sites) None 3. Unstable slopes at project site and Dabob Bay Natural Area p I /'' � 1 Upper Camp ' nttr_ Discovery Creek �Toandos Road Ap ' } new road survey , I F. is �1,, .,,„ IF Dabob Bay 1 j Natural Area` 1 Boundary, r , 1 ' �J f YJj V1 � 'ource Esn, Max Eye, rthstar Geographiics. CNES/Airbus DS.. USDA, U! o. �nloru 4. Project site map in relation to Dabob Bay Natural Area boundary, Camp Discovery Creek ravine, and protected lands to west and south. 1 I 701104001 r� 701103001 � t 701105017 � tr • v O 701105016 ^ � � t 40 \ 1 s s �7 1152 00 " r ti ,r A A 701151002 y /01152002 701153 015 a • A V 60 N 701153009 701154002 e, ri Q 701153018 � 1Wanm= 701153003 70�`11055007 ds o r r G n n � r 1, f i wow 7011510 01 1 oq ; --A ra�u � s57 swL� v tie�EJvmp Ig , 59S81 Tbulk L6 U e'� L39 ,1�iA JL L L ar cA,w�m�NG�jo D�aiXirn4��e[ilpPlYi1�"�.GdixlNsc-tip-ct�ti3c ]w�, H O mo j'. tP � K• -� r 'p�� e'R_ - s"q�n � yam, ��e.., -'c "�- +'"^ ��•`.� rig ,' .. � � 'w�. � ;,I, `�vl- � �� ' w.�', I, r _ �Ypk F {�li. ��9� .'fix+ •. Via.. �s 1 r � �.1/�.�'^ -� _ .• „S' ...:r .. � � �� _ rr`r _�3.1 ry�'r ice_ .x � '!. f ` 10. Camp Discovery Creek on the project site. 11 S. ; Camp Discovery Creek provides habitat for coho and chum salmon and cutthroat trout and is the second largest independent tributary to Tarboo-Dabob Bay — important to Dabob Bay water quality. Rayonier Rayonier Forest Resources, L.P. 1 Rayonier Way Wildlight, Florida 32097 March 26, 2021 VIA EMAIL peter@nwwatershed.org Peter Bahls, Executive Director Northwest Watershed Institute 3407 Eddy Street Port Townsend, WA 98368 360-385-6786 www.nwwatershed.org Dear Mr. Bahls, Rayonier Forest Resources, L.P. ("Rayonier") understands that Northwest Watershed Institute ("NWI") is seeking funding to purchase fee simple interest in the Jefferson County tax parcel 701151002. Rayonier is a willing seller of fee simple interest in the above parcel to NWI, pending agreement on terms and value. These above parcels are also shown on the attached map. This is a non- binding letter and neither Rayonier nor NWI shall incur any liability or legal obligation to the other as a result of this letter. The legal rights and obligations of each party shall then be only those which are set forth in a signed purchase and sale agreement. Sincerely, Vd6c�:' Martin E. Harris Senior Manager, Real Estate Operations 936-213-5448 marty.harris@rayonier.com EXHIBITA 0 1 �, 6 -'A 16 % . I I \"T 1.4 23 Comwrtment#'s Tract dame: WA Jefferson Upper Camp Discovery Sale Area 27NDIVV Parcel #: 1 ather Rnyonier Lands Jefferson County, VVA LSS Acres: 80.60 mtNs map t maw DFIer :�t, -,=3mn �tar<d m m map is rg UM&Itl'a a BDC, 1.23C ZADI a-- : rdbterelkMw I I I I I I I I .: -1.1 Et O3,'15,2021 Page 1 2 Northwest Watershed Institute BOARD OF DIRECTORS 2021 Board Members and Affiliation and Term on the Board of Directors Officers Peter Bahls President, Vice -President, Peter Bahls is currently full time Executive Director and Treasurer Conservation Biologist for Northwest Watershed Institute. 3407 Eddy Street Term - 2020-2022 Port Townsend, WA 98368 360-385-6786 Gene Jones Board Member Gene Jones is a member of the Port Gamble S'Klallam Tribe and spiritual leader for four Tribes in the Olympic Peninsula region. 5860 NE Totten Road Poulsbo, WA 98370 Term - 2020-2022 360-535-3826 Janis Henry Secretary Janis Henry is a retired biotech patent attorney and chemist with over 30 years of experience in the bioinstrumentation and 14445 SE 55th Street biotechnical industry. She is a life long nature enthusiast and Bellevue, WA 98006 embraces adventure travel. Janis lives in Quilcene and Bellevue. Term - 2020-2022 Keith Lazelle Board Member Keith Lazelle is an award -winning nature photographer who lives on Dabob Bay. His work has been used by many PO Box 192 environmental organizations including Audubon, Hoh River Quilcene, WA 98376 Trust, The Nature Conservancy, and NWI. 360-765-3697 Term - 2019-2021 Jean Ball Board Member Jean Ball is a farmer and naturalist in Quilcene, Washington. 10221 Center Road, Term - 2019-2021 Quilcene, WA 98368 360-301-4415 Liz Hoenig Kanieski Liz Hoenig Kanieski has over 25 years of experience as a field biologist, environmental educator, and environmental planner. 1005 Lawrence Street Much of her work has focused on watershed protection, citizen Port Townsend, WA 98368 engagement and water resources. Term - 2019-2021 Northwest Watershed Institute STAFF ROSTER 2021 Staff member Positions Peter Bahls Executive Director and Conservation Biologist Judith Rubin Director of Stewardship and Public Outreach, and Botanist Suzanne Barnes Office Manager and Bookkeeper Wesley Meyers Field Crew Leader Kimo Ellison Seasonal Field Crew Natalie Urbian Seasonal Field Crew Daisy Janes Seasonal Field Crew Luca Geslinger Seasonal Field Crew INTERNAL REVENUE SERVICE P. O. BOX 2508 CINCINNATI, OH 45201 Date: 0 2 4 20 NORTHWEST WATERSHED INSTITUTE 3407 EDDY STREET PORT TOWNSEND, WA 98368-0000 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 93-1325820 DLN: 17053259778026 Contact Person: CLINTON L FORTNER ID# 31163 Contact Telephone Number: (877) 829-5500 Public Charity Status: 170 (b) (1) (A) (vi) Our letter dated JANUARY 2002, stated you would be exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code, and you would be treated as a public charity, rather than as a private foundation, during an advance ruling period. Based on the information you submitted, you are classified as a public charity under the Code section listed in the heading of this letter. Since your exempt status was not under consideration, you continue to be classified as an organization exempt from Federal income tax under section 501(c)(3) of the Code. Publication 557, Tax -Exempt Status for Your Organization, provides detailed information about your rights and responsibilities as an exempt organization. You may request a copy by calling the toll -free number for forms, (800) 829-3676. Information is also available on our Internet Web Site at www.irs.gov. If you have general questions about exempt organizations, please call our toll -free number shown in the heading. Please keep this letter in your permanent records. Sincerely yours, � Lois G. erner Director, Exempt Organizations Rulings and Agreements Letter 1050 (DO/CG) Northwest Watershed Institute Memo 3407 Eddy Street I Port Townsend, Washington 98368 voice 360.385.6786 fax 360.385.2839 email peter@nwwatershed.org I www.nwwatershed.org To: Tarboo Creek Conservation Project File From: Peter Bahls, Executive Director CC: Date: March 26, 2021 Re: Executive Committee Resolution to Submit Jefferson County Conservation Futures 2020 Application for Camp Discovery Creek Acquisition Project At its Annual Board Meeting of May 8, 2020, the Board of Directors of Northwest Watershed Institute unanimously approved the following resolution — An executive committee comprised of Peter Bahls and Janis Henry shall serve as an executive committee to have the power to make on -going decisions between Board meetings per the existing by-laws. 4n March 26, 2021 the executive committee approved the following resolution — DECIDED — Northwest Watershed Institute shall sponsor and submit a grant application for Jefferson County Conservation Futures 2020 Program for the Camp Discovery Creek Acquisition Project. ,ter Peter Bahls President A Janis Henry Board Member 12:04 PM 03/26/21 Accrual Basis Northwest Watershed Institute Profit & Loss January 2020 through February 2021 Ordinary Income/Expense Income 7000 • Timber Sale Proceeds Miscellaneous items Grant Revenue 4006 • County/Local Funds 4010 • Federal Funds 4030 • State Funds Grant Revenue - Other Total Grant Revenue Rental/Lease Income 4166 • Rental income - Lincoln 4166 • Olson tideland lease 4176 • Rental Income Reinertsen Rental 4182 • Rental Income - Yarr Caretaker Total Rental/Lease Income Consulting/Miscellaneous 4210 • Consulting Fees 4220 • Miscellaneous Income Total Consulting/Miscellaneous Contributed Income 4310 • Restricted 4320 • Unrestricted Contributed Income - Other Total Contributed Income Total Income Gross Profit Expense 6041 • Paypal Fees 66900 • Reconciliation Discrepancies 6010 • Advertising 6030 • Automobile Expense 6040 • Bank Service Charges 6080 • Education Insurance 6091 • Auto 6092 • Health benefits 6094 • HSA Contribution 6092 • Health benefits - Other Total 6092 • Health benefits 6093 • Liability Insurance Total Insurance Interest Expense 6120 • Loan Interest Total Interest Expense Land Acquisition 6170 • Closing Expenses 6160 • Land Total Land Acquisition Loan payoff Jan '20 - Feb 21 61,357.60 1,000.00 100,000.00 247,236.15 53,200.41 398.79 400,835.35 3,771.00 4,000.00 18,200.00 3,650.00 29,621.00 22,376.50 1,045.72 23,422.22 182,271.10 66,437.63 100.00 248,808.73 765,044.90 765.044.90 220.30 -0.01 74.50 6,808.38 146.80 0.00 4,039.50 8,200.00 31, 634.10 39,834.10 3,967.00 47,840.60 2,892.00 2,892.00 960.25 330,000.00 330,960.25 0.00 Page 1 12:04 PM Northwest Watershed Institute 03/26/21 Profit & Loss Accrual Basis January 2020 through February 2021 Jan '20 - Feb 21 Payroll Expenses Gross wages 6231 • Director 81,666.75 6232 • Stewardship Director 20,822.00 6233 • Project Assistant 1,760.00 6234 • Field Crew 50,234.75 Total Gross wages 154,483.50 Payroll Taxes 6246 • Paid Family and Medical Leave 113.14 6240 • Medicare 2,240.02 6241 • Social Security 9,577.96 6243 • Workers Comp 5,996.35 6246 • WA State Unemployment 562.07 Total Payroll Taxes 18,489.54 Payroll Expenses - Other 27.87 Total Payroll Expenses 173,000.91 6260 • Postage and Delivery 712.25 6260 • Printing and Reproduction 1,168.43 Professional Fees 6271 • Accounting 1,695.00 Total Professional Fees 1,695.00 Program Expense 6282 • Fees 3,363.85 6283 • Project subcontractors 30,815.00 6286 • Overrun 1,812.47 Total Program Expense 35,991.32 6290 • Rent 18,000.00 Repairs and Maintenance 6310 • Building Repairs 675.80 6320 • Computer Repairs 826.78 Total Repairs and Maintenance 1,502.58 Supplies 6420 • Field Supplies 7,621.32 6440 • Office Supplies 1,976.68 Total Supplies 9,598.00 Taxes 6630 • Forest Excise Tax 3,097.00 6610 • Property Taxes 4,887.32 6620 • Tax - State Excise 1,865.47 Total Taxes 9,849.79 Telephone/Communications 6660 • Mobile phone 1,443.60 6620 • Telephone - Local 1,924.38 6630 • Telephone - Long Distance 148.76 Total Telephone/Communications 3,516.74 Travel & Ent 6720 • Meals 72.75 Total Travel & Ent 72.75 Page 2 12:04 PM Northwest Watershed Institute 03/26/21 Profit & Loss Accrual Basis January 2020 through February 2021 Utilities 6810 • Gas and Electric Utilities - Other Total Utilities Total Expense Net Ordinary Income Net Income Jan '20 - Feb 21 9.25 13.21 22.46 644,073.05 120,971.85 120,971.86 Page 3 12:06 PM 03/26/21 Accrual Basis Northwest Watershed Institute Balance Sheet As of February 28, 2021 ASSETS Current Assets Checking/Savings 1020 • Checking - Kitsap Total Checking/Savings Accounts Receivable 1200 • Accounts Receivable Total Accounts Receivable Other Current Assets 1260 • Prepaid Insurance 1300 • Employee advance Total Other Current Assets Total Current Assets Fixed Assets 1664 • Trailers 1612 • Vehicle - Ford pickup 1630 • Kubota Tractor 1610 • Office equipment 1620 • Vehicle - Toyota pickup Property 1666 • Capital Improvements 1661 • Land 1662 • Earnest money Total Property 1690 • Accumulated Depreciation Total Fixed Assets Other Assets 1606 • Jeffco DCD - Bond Reinertsen Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 • Accounts Payable Total Accounts Payable Other Current Liabilities 2320 • SBA EIDC Loan 2100 • Payroll Liabilities 2106 • Fica, Medicare, FWH Payable 2109 • WA - Paid Fam Med Leave Emp. 2120 • Workers Comp Payable 2130 • SUTA & EAF Payable 2100 • Payroll Liabilities -Other Total 2100 • Payroll Liabilities 2260 • Rental Security Deposit Total Other Current Liabilities Total Current Liabilities Total Liabilities Feb 28, 21 135,725.86 135,725.86 -2,100.00 -2,100.00 2,963.00 79.96 3,042.96 136,668.82 4,000.00 4,150.00 16,709.10 7,666.35 3,007.00 3,035.20 652, 923.33 3,750.00 659,708.53 -33,214.00 662,026.98 4,388.40 4,388.40 803,084.20 3,864.98 3,864.98 7,000.00 4,417.46 177.58 2,339.88 176.70 27.87 7,139.49 2,300.00 16,439.49 20,304.47 20,304.47 Page 1 12:06 PM 03/26/21 Accrual Basis Northwest Watershed Institute Balance Sheet As of February 28, 2021 Equity 1110 • Retained Earnings Net Income Total Equity TOTAL LIABILITIES & EQUITY Feb 28, 21 690,579.04 92,200.69 782,779.73 803,084.20 Page 2 12:06 PM Northwest Watershed Institute 03/26/21 A/R Aging Summary As of March 26, 2021 Current 1 - 30 31 - 60 61 - 90 > 90 TOTAL ADMIN-001 0.00 0.00 0.00 0.00 0.00 0.00 PEAR-001 0.00 0.00 0.00 -2,100.00 0.00 -2,100.00 TOTAL 0.00 0.00 0.00 -2,100.00 0.00 -2,100.00 Page 1 12:44 PM Northwest Watershed Institute 03/26/21 Profit & Loss Budget Overview Accrual Basis July 2020 through June 2021 Ordinary Income/Expense Income 7000 • Timber Sale Proceeds Miscellaneous items Grant Revenue 4006 • County/Local Funds 4010 • Federal Funds 4020 • Foundation 4030 • State Funds Grant Revenue - Other Total Grant Revenue Rental/Lease Income 4166 • Olson tideland lease 4176 • Rental Income Reinertsen Rental 4182 • Rental Income - Yarr Caretaker Total Rental/Lease Income Consulting/Miscellaneous 4210 • Consulting Fees 4220 • Miscellaneous Income Total Consulting/Miscellaneous Contributed Income 4310 • Restricted 4320 • Unrestricted Total Contributed Income Total Income Gross Profit Expense 6041 • Paypal Fees 66900 • Reconciliation Discrepancies 6010 • Advertising 6030 • Automobile Expense 6040 • Bank Service Charges 6060 • Contributions 6080 • Education Insurance 6091 • Auto 6092 • Health benefits 6093 • Liability Insurance Total Insurance Interest Expense 6120 • Loan Interest Total Interest Expense Land Acquisition 6170 • Closing Expenses 6160 • Land Total Land Acquisition Loan payoff Jul '20 -Jun 21 61,357.00 1,000.00 110,000.00 250,000.00 10,000.00 120,682.80 0.00 490,682.80 4,000.00 15,600.00 3,600.00 23,200.00 25,000.00 0.00 25,000.00 190,000.00 70,000.00 260,000.00 861,239.80 861,239.80 300.00 0.00 100.00 7,000.00 2,000.00 0.00 0.00 1,335.50 28,933.29 3,673.00 33,941.79 9,492.00 9,492.00 1,200.00 375,000.00 376,200.00 0.00 Page 1 12:44 PM Northwest Watershed Institute 03/26/21 Profit & Loss Budget Overview Accrual Basis July 2020 through June 2021 Jul '20 -Jun 21 Payroll Expenses Gross wages 6231 • Director 70,000.07 6232 • Stewardship Director 14,273.00 6233 • Project Assistant 3,007.50 6234 • Field Crew 39,961.00 Gross wages - Other 0.00 Total Gross wages 127,241.57 Payroll Taxes 6246 • Paid Family and Medical Leave 240.36 6240 • Medicare 1,845.01 6241 • Social Security 7,888.98 6243 • Workers Comp 5,012.32 6246 • WA State Unemployment 490.53 Total Payroll Taxes 15,477.20 Payroll Expenses - Other 0.00 Total Payroll Expenses 142,718.77 6260 • Postage and Delivery 800.00 6260 • Printing and Reproduction 2,000.00 Professional Fees 6271 • Accounting 1,695.00 6273 • Land Appraisal 0.00 Total Professional Fees 1,695.00 Program Expense 6282 • Fees 1,577.61 6283 • Project subcontractors 150,000.00 6286 • Overrun 2,000.00 Total Program Expense 153,577.61 6290 • Rent 8,400.00 Repairs and Maintenance 6310 • Building Repairs 1,000.00 6320 • Computer Repairs 1,000.00 Total Repairs and Maintenance 2,000.00 Supplies 6420 • Field Supplies 15,000.00 6440 • Office Supplies 2,500.00 Total Supplies 17,500.00 Taxes 6610 • Property Taxes 5,000.00 6620 • Tax - State Excise 2,000.00 Total Taxes 7,000.00 Telephone/Communications 6660 • Mobile phone 1,500.00 6620 • Telephone - Local 2,000.00 6630 • Telephone - Long Distance 200.00 Total Telephone/Communications 3,700.00 Travel & Ent 6720 • Meals 100.00 6740 • Travel 0.00 Total Travel & Ent 100.00 Page 2 12:44 PM Northwest Watershed Institute 03/26/21 Profit & Loss Budget Overview Accrual Basis July 2020 through June 2021 Utilities 6810 • Gas and Electric Utilities - Other Total Utilities Total Expense Net Ordinary Income Other Income/Expense Other Income Gain (Loss) On Sale of Land Total Other Income Net Other Income Net Income Jul '20 -Jun 21 0.00 0.00 0.00 768,525.17 92,714.63 0.00 0.00 0.00 92,714.63 Page 3 2021 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Project Application Please complete the following application in its entirety. Be sure to answer "N/A" for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at 379-4498 or tpokorny@co.iefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: Hannan Farm 2. Conservation Futures Acquisition Request: $25,000 Conservation Futures O&M Request: 0 3. Total Conservation Futures Request: $25,000 4. Please indicate the type of interest contemplated in the acquisition process. Warranty Deed X Easement _ Other (Please describe below) In whose name will the property title be held after acquisition? Laurie J Hannan Living Trust with a conservation easement held by Jefferson Land Trust and a REPI easement held by US Department of Defense. 5. Applicant Information Name of Applicant or Organization: Jefferson Land Trust Contact: Sarah Spaeth Title: Director, Conservation and Strategic Partnerships Address:1033 Lawrence Street, Port Townsend Phone: (360) 379-9501 ext. 101 Email: sspaeth@saveland.org 6. Sponsor Information: (f different than applicant) Organization Name: Contact: Title: Address: Phone: O - ext. Email: Fax: O - , ext. This application was approved by the sponsor's legally responsible body (e.g., board, council, etc) on January 19, 2021 12 2021 CF Program Application FINAL http://www.co.jefferson.wa.us/560/Conservation-Futures-Program 7. Site Location Street Address or Description of Location: 4655 W. Valley Road, Chimacum, WA 98325 Driving Directions from Port Townsend: Drive south on SR19 to Chimacum. Take Center Road south to Egg & I Road. Head west on Egg & I to West Valley Road. Property starts on SE corner of intersection with Egg & I. Driveway to main house from W. Valley. Section: 3 Township: 28N Range: 1W Assessor's Parcel Number(s): 801 032 002 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. A conservation easement is proposed, so property ownership will remain unchanged with the Laurie J Hannan Living Trust. Please list the assessed values for each property or APN, as applicable. The current Assessed Market Value is $600,657, and the agricultural current -use Assessed Taxable Value is $387,705. 8. Existing Conditions New Site: Yes X No Addition to Existing Site Number of Parcels: 1 Yes No X Total Project Acreage (if different): Existing Structures/Facilities: Acres to Be Acquired: 115.8 Current Zoning: Ag Production 1:20 2 houses, each with an attached garage; historic barn with an attached milking parlor; a machine shed; and a concrete loafing area. 3500-gallon septic installed in 2009. Domestic well. Fenced garden, fenced and cross -fenced pastures. Any current covenants, easements or restrictions on land use: Easement for County road; 30'- wide strip "condemned for drainage canal" in the property's legal description, presumably for the Chimacum Drainage District; County covenants requiring treatment of the drinking water and monitoring of the septic system. Current Use: Agricultural and residential Waterfront (name of body of water): Chimacum Creek Shoreline (linear feet): 2000 feet of Chimacum Creek and 3000 feet of tributaries Owner Tidelands/Shore lands: 9. Current Property Owner X is _is not a willing seller. 12 2021 CF Program Application FINAL http://www.co.jefferson.wa.us/560/Conservation-Futures-Program 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. Hannan Project Description Jefferson Land Trust is applying for $25,000 to contribute to the purchase a conservation easement from willing landowners of one of the largest family farms left in the Chimacum Valley. We seek to keep this agricultural land as a single property available for farming in perpetuity. Jefferson Land Trust applied for a State Farmland Preservation grant in 2020 and the application ranked #3 in Washington State for easement funding. We expect to receive the state grant in July of 2021 and have the Navy's REPI program as additional match funding. The property is located —4 miles south of downtown Chimacum in the fertile bottomland of Center Valley. It is visible from West Valley Rd. and Egg & I Rd., and is surrounded by adjacent farmlands, forests, wetlands and open space. The Farm's structures are on a knoll in the NW corner of the property that rises about 100' above the Creek. The Hannan Farm consists of valley bottom pastureland. It includes approximately 2,000 feet of the east fork of Chimacum Creek bisecting the property, about 3,000 feet of seasonal streams, and a man-made pond in the SE corner which extends onto a neighboring property. While not natural or undisturbed, WDFW has identified this portion of the Creek as spawning habitat for winter steelhead and coho salmon, with cutthroat present as well; as having Freshwater Emergent and Freshwater Forested/Shrub Priority Habitats; and as being within'/4 mile of wood duck breeding areas (possibly on the pond in the SE corner). The county critical areas maps show much of the property as wetland; however the pasture rarely floods. A couple of areas are identified as Susceptible Aquifer Recharge Areas, and —24 acres are classified as FEMA Flood Zone A. These Flood Zones are on the north side of Chimacum Creek and well below all the structures and, unlike other parts of Chimacum Creek in the valley, here flooding only occurs when there is extreme precipitation. There is a domestic well to the east of the houses, and a 1973 surface water right for an "unnamed stream" of 0.01cfs, non -consumptive, continuously each year for "wildlife refuge, fish propagation and recreation." All the soils on the property are identified as Farmland of Statewide Importance or Prime Farmland (some if drained) by the NRCS. Almost all of the property is flat, open pastureland, and it is fenced and cross - fenced to keep livestock out of the Creek. Recent CREP fencing and plantings (15,000 trees) of 35-foot buffers on each side on Chimacum Creek, and 15-foot buffers on other streams have occurred. Only a few small areas of trees are present on the property — the southern boundary and in the central north. There are two gravity -fed livestock watering troughs, with an additional dam and lined -pond planned using Jefferson Conservation District (JCCD) help; previous JCCD BMP projects include manure storage areas and gutters on the barn. There are some mature trees and a sizable, fenced garden near the houses. The Hannan Farm is currently raising beef cattle and a few horses. The Farm stopped dairying in 1972; while the owners used to do direct marketing, they found it difficult to compete with other established local producers, so they now sell feeder cows and a few heifers. The owners/farmers would like to make further 12 2021 CF Program Application FINAL bttD://www.co.iefferson.wa.us/560/Conservation-Futures-Program improvements including reseeding the pasture for better hay production and replacing aging perimeter fencing. Two houses are on the property: a main house (2009) and a rental (1930), and an historical barn in good shape, built in 1900 and listed on the Washington Heritage Barn Register. The barn has an attached milking parlor and concrete loafing area for livestock, and there is a nearby machine shed. The Hannan Ranch property is zoned AP 1:20, with the two residences on site using 2 of the presumed 5 development rights (115 acres at 1:20). It is presumed that 2 ADUs could be added if the owners want to, without exercising any additional development rights. The landowners are interested in preserving the farm through a conservation easement to Jefferson Land Trust and a REPI easement that will eliminate the remaining unused development rights (presumably 3), and preserve the 115 acres for continued agricultural uses and habitat associated with Chimacum Creek. Overarching Goal: To preserve the 115-acre Hannan Farm, one of the largest farms in the valley, with easements that reduce the development potential from five to two residences; that protect prime agricultural soils and preserve the historical working farm, as well as Chimacum Creek riparian salmon and steelhead spawning habitat, and that maintain the scenic open space values of the property. Objectives: 1) Secure Jefferson County Conservation Futures funding, State Farmland Preservation funding (confirmation expected in July 2021), and Navy REPI support for purchase of a conservation easement 2) Draft the conservation easement and REPI easement with landowner input 3) Obtain appraisals to determine value of CE and REPI easements funding as a match for CFF program. Purchase easements in 2021 or early 2022. 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s) to be acquired, even if Conservation Futures funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies) to be Acquired: $500,000 Total Estimated Acquisition -related Cost (see Conservation Futures Manual for eligible costs): $60,000 Total Operation and Maintenance Cost: 0 Total Project Cost: $560,000 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition - related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): The value of the conservation easement and REPI easement are estimated to be worth $500,000 based on recent appraisal work completed on nearby farmland. An official appraisal process will take place once funding for the project has been secured. Both the conservation easement and REPI easement will be valued separately, though as in previous projects, the landowner is only paid the value of the more restrictive easement. 12 2021 CF Program Application FINAL http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Hannan Farm Easement related costs Timeline Est. Cost CFF Request Match Easement acquisition Winter 2021/2022 $500,000 $25,000 $475,000 Land acquisition related costs, i.e. appraisal, survey, Baseline document, Stewardship Plans, closing costs Late 2021 through 2022 or 2023 $40,000 $40,000 Project management, admin and legal fees 2019 - 2023 $20,000 $20,000 Total $560,000 $25,000 $535,000 Scored Questions 1 a. Sponsor or other organizations X will will not contribute to acquisition of proposed site and/or operation and maintenance activities. 1 b. If applicable, please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. Jefferson Land Trust expects to receive approximately 50% of the project cost from the State Farmland Preservation Program and has also requested match funding through the Navy's Readiness and Environmental Protection Integration program. 1 c. Matching Fund Estimate Acquisition O&M % Conservation Futures Funds Requested $25,000 4 % Matching Funds/Resources* $535,000 96 % Total Project Acquisition Cost $560,000 100% * If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 d. Source of matching Amount of Contribution funds/resources contribution approved? WWRP Farmland Preservation $260,0000 Yes No Navy REPI Program. $275,000 Yes No If not, Contribution If not, when? available now? when? June 2021 Yes No Fall 2021 Yes No at closing NOTE: Matching funds are strongly recommended and a higher rating will be assigned to those projects that guarantee additional resources for acquisition. Donation ofproperty or aproperty 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. 12 2021 CF Program Application FINAL btq2://www.co.iefferson.wa.us/560/Conservation-Futures-Program 2 a. Sponsoring agency X is _is not prepared to provide long-term stewardship (easement monitoring, maintenance, up -keep, etc.) for the proposed project site. 2 b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. Jefferson Land Trust will conduct stewardship and monitoring of the conservation easement terms, including at least annual monitoring of the property by professional staff and trained volunteers, extensive data collection and management, help with stewardship, enhancement and restoration goals, and legal defense of the conservation easement should it become necessary. Jefferson Land Trust has a legal defense fund of over $800,000 and continues to build this fund with each new easement acquisition, recognizing the legal obligation and responsibility of protecting the conservation values in perpetuity. In addition, Jefferson Land Trust carries legal defense insurance for conservation easements through a program called TerraFirma, developed through the national Land Trust Alliance (the national umbrella organization for land trusts). This program covers up to $500,000 in legal enforcement costs per conservation easement that Jefferson Land Trust holds and stewards. Protection actions for this property will be designed to both protect the agricultural soils and farmland values, while balancing the water quality and impacts on Chimacum Creek and needs for declining salmonid populations in line with regional salmon recovery priorities. The Conservation District is currently working with landowners in the region to restore salmon riparian and wetland habitat, providing technical expertise, support, and on -the -ground oversight of activities. On this property, the JCCD has implemented fencing and other projects for efficiently raising cattle (i.e. gravity -fed watering troughs), along with tree planting and other water quality protections for the creek. 3 a. Describe the sponsoring agency's previous or on -going stewardship experience. Over the 32 years since it was formed, Jefferson Land Trust has managed many acquisition projects and has been responsible for conducting or coordinating restoration activities with several project partner organizations, including Jefferson County, North Olympic Salmon Coalition, Jefferson County Conservation District, Hood Canal Salmon Enhancement Group and others. We hold 65 conservation easements on 4,205 acres and have helped with the preservation and stewardship of another 12,302 acres in Jefferson County. The Land Trust also holds title to over 721 acres of preserves, including the 135-acre Bulis Forest Preserve, portions of the Quimper Wildlife Corridor, and salmon habitat on Chimacum, Salmon, Snow and Donovan Creeks, the Big Quilcene and Duckabush Rivers. Stewardship activities are carried out by professional staff with the assistance of volunteer Preserve Stewards. The Hoh River Trust and Washington State Parks contract with Jefferson Land Trust to monitor and steward nearly 7,400 acres of land under their control. In addition, Jefferson Land Trust stewards land owned by Jefferson County, the City of Port Townsend and the Department of Natural Resources. Jefferson Land Trust stewardship and monitoring protocols were developed with the guidance of the Land Trust Alliance and adherence to those protocols is one of the requirements for our national accreditation. Collaboration is at the heart of our approach to conservation. We engage with partners in the "Chumsortium" to bring back vibrant salmon runs on Hood Canal, and in the Jefferson LandWorks Collaborative to support big -picture thinking around the ongoing economic viability of local farms and working forests. We partner with regional government, local and national agencies, Tribes, peer organizations, and individual citizens to safeguard the places we love and that are crucial to the health of our community, now and into the future. 3 b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? 12 2021 CF Program Application FINAL 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. X_Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: Jefferson Land Trust has sponsored many applications on behalf of private landowners interested in preserving their property through sale of a conservation easement, or as an applicant and sponsor for fee interest purchase of properties from willing sellers. These projects include: Sunfield Farm, 2003; Quimper Wildlife Corridor, 2004; East Tarboo Creek Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007; Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Ruck 2010; Quimper Wildlife Corridor 2010; Tamanowas Rock 2010; Chimacum Creek Carleson 2011; Winona Basin - Bloedel 2011; L. Brown 2012; Boulton Farm 2012; Quimper Wildlife Corridor and Short Family Farm 2013; Quimper Wildlife Corridor and Snow Creek Irvin and Jenks, 2014; Midori Farm, 2015; QWC 2016 Addition, Tarboo Creek, Farm and Forest 2016; Serendipity Farm, Snow Creek Taylor and Tarboo Iglitzin 2017; Chimacum Forest, Marrowstone Mize, Ruby Ranch and Snow Creek Mid -Reach Forest 2018; Quilcene Headwaters to Bay and Tarboo Forest Addition 2019 and 2020; Arlandia 2021. 4 a. Property _X—can cannot feasibly be acquired in a timely fashion with available resources. 4 b. Necessary commitments and agreements X are _are not in place All parties are in agreement, however WWRP State Farmland Preservation grant is not awarded until Summer/Fall 2021. 4 c. All parties _are X are not in agreement on the cost of acquisition Once funding is secured, we will be able to initiate the valuation process. Appraisals are necessary to determine the fair market value of the conservation easement and the REPI Easement. Once the appraisals and appraisal reviews are complete, we will be able to make the landowners an offer based on the higher valued conservation easement. 5. The proposed acquisition: is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the website of the plan if available or include the plan with this application. _X_complements an adopted open space or conservation plan, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project. The Jefferson Co. Comprehensive Plan says that "It is Jefferson County's intent to protect and foster opportunities for the successful practice of agriculture. Land with prime agricultural soils clearly must be preserved" and a soil productivity classification of 12 Animal Month Units puts the soils here in the highest-ranking class. The Agricultural Production zoning of the property also reflects the County's goals for this land. Jefferson Land Trust's Conservation Plan, based on community input, identifies "prime farmland soils and/or proven productivity" and "proximity to population centers" as priorities for agricultural protection, and calls out Center Valley as a specific agricultural priority area. It also identifies streams and wildlife corridors as priorities for habitat protection. 12 2021 CF Program Application FINAL bttD://www.co.iefferson.wa.us/560/Conservation-Futures-Program The American Farmland Trust's 2012 report Losing Ground: Farmland Protection in the Puget Sound Region includes a Jefferson County Scorecard which identifies the need for additional farmland protection and also acknowledges the important role of the Conservation Futures Fund in that effort. A 2009 State Office of Farmland Protection Report notes "The legislature finds that the retention of agricultural land is desirable, not only to produce food, livestock, and other agricultural products, but also to maintain our state economy and preferable environmental conditions." and this report also documents decreasing farmland acreage and land prices rising with development pressure. The Olympic Peninsula Resource Conservation & Development proposed Adaptation Strategies in their "Climate Change Preparedness Plan for the North Olympic Peninsula" (2015). In this plan, they suggest to "acquire and preserve existing vegetated, unprotected areas adjacent to river systems" and to "designate and prioritize funding for additional land designated for agriculture". This farm lies within the area mapped as "Above/Far Above Average Resilience" in The Nature Conservancy's 2015 Resilient Pacific NW Landscapes report. The proposed project supports identified goals in all of these plans. 6. Conservation Opportunity or Threat: 6 a. The proposed acquisition site _X—does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 6 b. If applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. As noted in #5 above, farmland is being converted as our area continues to experience population growth and consequently economic pressure on farmers to subdivide and sell. Here we have landowners who are willing to preserve 115 acres of productive family farmland surrounded by other farms, and an important segment of Chimacum Creek, (salmon spawning habitat in Center Valley), by reducing the development and subdivision potential and resulting impacts from five residential rights down to two, through the sale of a conservation easement to Jefferson Land Trust and a REPI easement to the Navy. We began discussions with the landowners in 2019, and they are eager to move forward with the preservation effort, and to continue to improve their farming and restoration practices. The mother -daughter team inherited the farm from Bob Bundy, former husband and father, respectively, and have been working to keep the farm viable. Purchase of the easement will provide funding for the landowners to increase their agricultural productivity, encourage restoration and enhancement efforts on Chimacum Creek, contribute to the long- term affordability of farmland by removing development rights, and preserve one of the few remaining large farms that have enough acreage to provide diverse farming options. 7. Summarize the project's conservation values and how the CF funds requested support these values. The conservation values to be protected are working agricultural land, surface water quality and groundwater recharge, and riparian habitat for threatened salmon and other species. With CFF funds, protection through a conservation easement will keep the property in single ownership, prohibit subdivision on this large farm property, and allow the family to continue farming on this land. 8. The proposed acquisition: 8 a. X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 8 b. X provides habitat for a variety of native flora or fauna species. 8 c. X contributes to an existing or future wildlife corridor or migration route. 12 2021 CF Program Application FINAL http://www.co.jefferson.wa.us/560/Conservation-Futures-Program If afrmative 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.' WDFW has identified this reach of Chimacum Creek as having spawning habitat for winter steelhead and coho, with cutthroat present as well. This will add another segment to the protected Chimacum Creek riparian corridor connecting the marine waters of Port Townsend Bay to forested uplands, thereby enabling species movement with changing climate and seasons. This property includes Priority Freshwater Emergent and Freshwater Forested/Shrub Habitats, as depicted in a WDFW Priority Habitat and Species report on this location. 8 d. Does the current owner participate in conservation programs that enhance wildlife habitat? If so, please provide details. There has been recent CREP fencing and planting (15K trees) of 35 feet on each side that buffers Chimacum Creek, and 15-foot buffers placed on other streams and drainages; and a man-made pond was built in the SE corner of the property which extends onto the neighboring property. These improvements, in addition to livestock watering troughs and fencing, enhance habitat by keeping livestock out of the Creek and shading the riparian 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. As described above, protecting this large farm and Chimacum Creek through an easement will eliminate the possibility of development into five parcels, thus keeping the 115 acres whole, and eliminating 3 development rights, thereby reducing the challenges of working with multiple landowners to retain intact habitat. In addition, the landowners have shown an interest in habitat protection and enhancement through their past projects along the creek including water quality protection efforts. The project will retain spawning habitat for winter steelhead and coho (identified on WDFW SalmonScape) and cutthroat trout (WDFW Priority Habitat and Species report) by allowing the CREP plantings to grow and shade the Creek, thereby helping stabilize water temperatures. 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. The Hannan Farm property has been farmed since early settlers came to Jefferson County and converted wetland and stream habitat to farmland; the existing barn was built in 1900 and is listed on the Washington Heritage Barn Register. Until 2016, it was owned by Bob Bundy, and for many years was one of several local dairies in operation. Currently the Hannans run 35-40 beef cattle, mostly registered Black Angus. They used to do direct marketing but found it difficult to compete with other established local producers, so now they sell feeders and a few heifers. The landowners' wishes for the property are to preserve a working farm raising hay and beef cattle and receive some support to enable improvements that include reseeding the pasture for better hay production and replacing some fencing. They would like to ' See, for example, hllp://www.dnr.wa.gov/researchscience/topics/naturalheritag`/pages/amp nh.aspx hLtp://www.wdfw.wa.gov/conservafion/Ths/list/ http://wwwl.dnr.wa. og v/nhp/refdesk/plants.html http://wwwl.dnr.wa. og v/nhp/refdesk/pubs/wa ecological systems.pdf 12 2021 CF Program Application FINAL bttD://www.co.iefferson.wa.us/560/Conservation-Futures-Program continue to work with JCCD on water quality and pasture improvements, and possibly additional enhancement activities in the riparian habitat. 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. As described above, there has been recent CREP fencing and planting and a man-made pond was built in the SE corner of the property that extends onto the neighboring property. Water quality projects include two gravity -fed livestock watering troughs with an additional dam and lined -pond planned (all with JCCD help), and previous JCCD best management practices (BMP) support was provided for gutters on the barn and manure storage space. The current owner's record of implementing best management practices that preserve and/or enhance soil, water quality, watershed function and wildlife habitat has been shown by the successful completion of numerous projects with JCCD, as described above. In fact, recently the owners completed a major "cleanup" around the farm and removed over 55 tons of scrap that had accumulated in the past. The farm is "unusually tidy" after this cleanup. From past projects with the JCCD and on their own, it is clear that, if provided with funding and help, the owners wish to continue to restore and enhance their farm and the riparian habitat along the creek and wetlands. 10 c. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. The acquisition of the conservation easement and REPI easement on the entire farm will provide protection against any subdivision of the property and limit the number of residences to the current two along with ADUs allowed under county code within the designated building envelope. Additionally, the conservation easement will include impervious surface limitations designed to preserve the prime soils and soils of statewide significance. The continuation of BMPs on the farm and continued protection and enhancement of the buffers on Chimacum Creek and on other streams and drainages will preserve soil, water and habitat quality. All of this will enhance the watershed function and habitat in the unfarmed areas. Continued responsible farming will help control runoff that could erode soils and add sediment to the Creek and be detrimental to habitat. Continued agricultural use will also reduce the likelihood of increased impermeable surfaces that often accompany development, and those surfaces would increase runoff and reduce groundwater recharge. 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. Silviculture is not a proposed use of this agricultural land. 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. NA 11 c. Describe how the property acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. NA 12 a. Describe how the proposed acquisition benefits primarily a _local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. 12 2021 CF Program Application FINAL http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Project is part of larger effort spearheaded by local agencies and organizations to protect important agricultural lands and to help landowners operate successful and viable businesses that will contribute to the local economy and secure food systems. Much of this effort has focused on prime agricultural lands and businesses in the Center and Beaver Valleys. The Jefferson LandWorks Collaborative is a model of land conservation and rural economic development, with the threefold goal: 1) to ensure that there is affordable prime agricultural land in large enough tracts that the farmer can be profitable, 2), to ensure that farmers have access to the business training, capital and know-how to be profitable, and 3) to ensure that there are both the consumer demand and robust markets to accommodate the farmers' needs. Protection of the Hannan Farm provides benefits as a member of the local farming community, which is becoming a prime area for local food-to-market/food-to-table agriculture, serving several stores, restaurants and farmers markets in Jefferson County and beyond. Local farms are critical to food security and to the local economy, and their food benefits residents of all ages. Jefferson County is fortunate in having farmers whose average age is below that of the national average, which bodes well for our future, and this could be tied to efforts like this to keep farmland relatively affordable. In addition, salmonid populations also benefit from preservation of Chimacum Creek and adjacent pasturelands and are critical species of concern in the Hood Canal and Puget Sound regions. The REPI (Readiness and Environmental Protection Integration) program is a national land -conservation funding source available through the Department of Defense. The Hood Canal region is of great strategic importance to the Department of Defense. As such, the Navy works with conservation partners to identify areas with common interest for preservation of working forests, farmland, and high -value wildlife habitat. The Hannan project represents an opportunity for the Navy and the Land Trust to work with willing landowners to conserve land, thus protecting and buffering military installations and operating areas from development. 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 Public access to this private farm is not planned, however, the farmers may choose to participate in the annual farm tour, and may be willing to allow access for supervised tours, educational programs, science surveys and research. 14. The proposed acquisition X includes historic or culturally significant resource s3 and X is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical or cultural resources. 2 The words "education" and "interpretation" are interpreted broadly by the CF Committee. s 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 12 2021 CF Program Application FINAL bttD://www.co.iefferson.wa.us/560/Conservation-Futures-Program Barn built in 1900 is on the Washington Heritage Barn Register. Verification 15. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project "report card" that will be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which O&M funds are expended. SS Initials3 f g, j Date 16. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have not obtained the required matching funds, the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re -apply. If this application is approved for funding, I understand that we may be required to re -submit the application if the project sponsor does not obtain the necessary matching funding within three years._S `- _Initials3 2-Date 12 2021 CF Program Application FINAL http://www.co.i on.wa.us/560/Conservation-Futures-Proram Landowner Acknowledgement Form' Project Applicant Information Applicant Name: Jefferson Land Trust Project Number/Name: Hannan Farm Contact: ❑ Mr. ® Ms. First Name: Sarah Last Name: Spaeth Title: Director of Conservation and Strategic Partnerships Mailing Address: 1033 Lawrence St. Port Townsend, WA 98368 E-Mail Address: sspaeth@saveland.org Property Information Address or Location: 4655 West Valley Road, Chimacum, WA 98325 County/Parcel Number: 801032002 Landowner Information Landowner Name: Laurie J Hannan Living Trust Representative: ❑ Mr. ❑ Ms. First Name: Last Name: Title: Mailing Address: 4655 West Valley Road, Chimacum, WA 98325 E-Mail Address: Ljhannan3324@me.com E -:7—. .14,a 1 • �-' ai ^/ 6' �(landowner name) is the legal owner of property described in the grant application being submitted to the Recreation and Conservation Office by the project applicant. 2. 1 am aware that the project being proposed in the grant application is on my property. 3. If a grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the project applicant, I will recuse myself from decisions made by the project applicant to work on or purchase my property. 6. There are / are not (circle one) tenants on the property. Tenants displaced as a result of this project may be eligible for relocation assistance. La d r/Re r en ati ure i Date ' "Manual 3: Acquisition Projects," Appendix H L� sULA •''. salmon i-Ial� O riL • %L „s v err I UIL T,.,trerrJ � a IU Hannan Farm Jefferson Land Trust Preserves Conservation E asements IJ LIICI4.0 II�CIYt]LIUIILt]II AIS Roads I �ws s ' � IsiarLd I,. I K haul HaII.-I �I P1ere La KW-ml lc-unty InKI P;k?iwrrallnn a A.I pClt lndranJsjj d Nor-ILULP 5" I P., I F I'm I, ,4 Pryor, r1--e � I fll LI J L�J L Col. n .�' xkl nl l ro7lt� InIrt - _ J R-acLIjn ❑ 1 rlort LLLJloin• ,,on Ludluw f "I"s—Fo s: Esri, HERE, Carmen ldteimap, inuennent P Ccrp., GEBCO, USGS, Cy,0, MPS, MRC M, CeoBase,'116- A lf�ed9ster M L, Ordn9nee Survey, Esri Ja,Ohn, MET1, Esri China ; Hong Kong), s,visstopo, 6 OpenStreetfdep 1 cmnbr&Apr�, and the CIS User Community s ,. ] 5.Ma 1 OOG 22A]I] Hannan rtt. I� la n nan Farm 2017Aerial Image (NA,IP) For informational purposes only All It Location Map data represented are from varying sources and approximate - Map created in F EBRUARY, 2 02 0 T p� f + I r � 40 y Lam" , J, a w Hannan Farm r I County Parcels :. 4� '� •��:��. -fir water course art:;, a �►' �. C.-, �+ p s ik 7' P Roads e Project 2017A,erial Image (NAIP) Hannan Farm r j t Boundaryap For info rmationaIpurposes onlyAll data represented are from varying sources and approximate_ Map created in FFBRUARI° 2 02 0 k HANNAN FARM PROJECT CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2021 rLAmpir Barn listed on Washington Heritage Barn Register On top of knoll, facing southeast East pastures ..t 1 1: ti ;1 i1 7w M A - XU >?! y k � RR r. r'i5'y;711 .Fm1 ..1:_ y `7P 9 rx h + v "e'Vn• In ' rid •e.x xab" `Y � � � ,�.hf'� _ ...k,, ;•�L�s.. +�.q SON 2021 Jefferson County Conservation Futures Program ti Property Acquisition and/or Operations and Maintenance Project Application i NO �O Please complete the following application in its entirety. Be sure to answer "N/A" for questions that don't apply to the project. Incomplete applications will not be accepted for consideration. Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at 379-4498 or tpokorny@co.iefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: Quimper Wildlife Corridor Additions 2. Conservation Futures Acquisition Request: $95,000 Conservation Futures O&M Request: $5,000 3. Total Conservation Futures Request: $100,000 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? Jefferson Land Trust will hold fee title to the properties acquired with both CF funds and acquired as match. 5. Applicant Information Name of Applicant or Organization: Jefferson Land Trust Contact: Sarah Spaeth Title: Director of Conservation & Strategic Partnerships Address: 1033 Lawrence St. Phone: 360-379-9501 ext. 101 Email: sspaeth@saveland.org 6. Sponsor Information: (f different than applicant) Organization Name: Contact: Fax: (- , ext. Title: Address: Phone: O - ext. Fax: ext. Email: This application was approved by the sponsor's legally responsible body (e.g., board, council, etc) on January 27, 2021 1 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program 7. Site Location Street Address or Description of Location: Taimay Jones Property: All of Blocks 1 through 9 of David's Addition to the City of Port Townsend, as per Plat recorded in Volume 2 of Plats, page 44, records of Jefferson County, Washington. —to be purchased with CF Funds ("Taimay Jones Property") Hertel Property: FOWLER'S PARK ADDITION BLK 35 LOTS 1 TO 20 — to be donated as partial match. Driving Directions from Port Townsend: Taimay Jones Property: Head west out of Port Townsend on Hastings Ave. From Hastings Ave, turn north onto Howard St and park at dead end. Walk north onto trails and walk west onto 39tb St trail until you reach the property. Section: 4 Township: 30N Range: 1W Hertel Property: Head west out of Port Townsend on Hastings Ave. Turn north onto Cook Ave and drive to the bottom of the hill and turn right onto Bell St. Drive to the dead-end and park along E Sapphire St. Section: 33 Township: 31N Range: 1W Assessor's Parcel Number(s): Taimay Jones property (CF Funds & match acquisition): 946500101, 946500201, 946500301, 946500401, 946500501, 946500601, 946500701, 946500801, 946500901 Hertel Property, owned by Fairbank Revocable Living Trust (Match acquisition) : 951903501 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. Described above. Please list the assessed values for each property or APN, as applicable. Taimay Jones property appraised value: $175,000 Hertel property assessed value: $50,000 8. Existing Conditions New Site: Yes No 2021 CF Program Application DRAFT btt.p://www.co.iefferson.wa.us/560/Conservation-Futures-Program Number of Parcels: 10 2 Addition to Existing Site: Yes No Acres to Be Acquired: 7.25 Total Project Acreage (if different): 244.5 acres protected in Quimper Wildlife Corridor 160.5 acres of which are owned/ facilitated by Jefferson Land Trust Current Zoning: R-I Existing Structures/Facilities: None Any current covenants, easements or restrictions on land use: None Current Use: Vacant land Waterfront (name of body of water): 100-Year Floodplain and Critical drainage Shoreline (linear feet): N/A Owner Tidelands/Shorelands: N/A 9. Current Property Owner is a willing seller. Yes, Jones property is willing to sell, Hertel property landowner is willing to donate. Project Description 10. In 1,000 words or less, provide a summary description of the pro] ect, 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 pro]ect, and whether the pro]ect 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. The Background Story Jefferson Land Trust is seeking funding for critical conservation pieces in the Quimper Wildlife Corridor project. The Land Trust is currently working to expand the extensive conservation efforts that have been going on since the mid 1990's. In this current phase of protection, we aim to protect 40 additional properties, totaling — 60 acres. These acquisitions will be possible through land donations, a state grant, community fundraising, and Jefferson County Conservation Futures funding. CFF will support this phase of the project with the acquisition of two priority properties —one to be acquired at fair market value, and one to be donated as match. The Quimper Wildlife Corridor (QWC) is located at the northeastern edge of Jefferson County near the confluence of the Strait of Juan de Fuca and Puget Sound. Jefferson Land Trust and the City of Port Townsend (PT) initiated this project together in the mid 1990's with the goal to protect a permanent "ribbon of green", stretching 3.5 miles across the Quimper Peninsula from Discovery Bay in close proximity to Protection Island, to Fort Worden State Park, following a natural wetland and drainage corridor, and connecting marine, upland, city, and forested environments near a growing urban area. The QWC provides safe passage and habitat critical to perpetuation of species diversity in an area of steadily increasing urban development. Project 3 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program partners have already protected significant portions of the QWC, but there are many remaining parcels in danger of development. In January 2020, the Land Trust contacted private landowners of over 120 priority parcels in the QWC to assess their interest in protecting their land for wildlife and trail access. The positive response rate was over 30%. The goal of this phase of the project (2021-2023) is to acquire and permanently preserve missing links in the corridor from numerous willing sellers that include important habitat and trail buffer parcels. The QWC encompasses a landscape that is biologically and culturally complex - a function of the topography, hydrology, and soils that produce a wide range of vegetation types including wetlands, shrub, prairies, mesic forests and dry upland coniferous forests. A series of perched freshwater and forested wetlands as well as the 100-year floodplain for City of PT form the backbone of the corridor. The QWC contains the largest swath of undeveloped habitat within the City extending out into unincorporated Jefferson County. The City, County, and Land Trust have successfully protected priority QWC habitat through fee simple ownership and conservation easements held by the Land Trust. This 24-year protection effort includes over 50 land transactions conducted by the Land Trust alone. Several DNR properties totaling 107 acres are leased to the County for 50 years through the Trust Land Transfer program and are core habitat areas of the corridor. Partners and the community have prioritized additional important connective habitat and trail buffers that once protected, will provide a more complete habitat corridor, and preserve the integrity of the existing trail system. The Application Properties The two properties that Jefferson Land Trust seeks to acquire using Conservation Futures funding this year are the result of our larger outreach to private landowners — with the goal to expand protection of many priority parcels within the QWC. The 7.25 acres described in this application are two of the critical properties part of this greater project expansion effort. Jefferson Land Trust aims to acquire the Taimay Jones property — nine parcels that total 4.95 acres- using CFF funds. This property contains import water drainage, intact forest habitat, and beloved trail access. The land match property (Hertel Property) is one parcel that totals 2.3 acres in the Bell St neighborhood — a rapidly expanding residential area. The match property provides a terrific buffer to the beloved trail systems, as well as intact forest habitat and critical stormwater drainage. In addition to Conservation Futures Funds and this proposal including the two properties, Jefferson Land Trust is applying for funds from the State, private foundations, and conducting community fundraising in an effort to raise $1.7 million to achieve the nearly 60 acres of expanded protection that is possible given the positive response to our outreach described above. Conservation Future's assistance in this effort is greatly needed to help with this critical community conservation effort. Overarchine Goal: Preserve the two properties described in this grant application that contribute to the current phase of —60 acre protection expansion being targeted by Jefferson Land Trust. Multiple funding sources are being pursued for this large phase of protection, and CFF funding for these two parcels is a critical contributor. 4 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Obiectives 1) Secure Jefferson County Conservation Futures funding for purchase of the fee simple acquisitions and match property donation —June 2021 2) Conduct due diligence activities and draft Purchase and Sale Agreements and deeds —mid 2021 3) Finalize the purchase and donation of each property —autumn 2021. 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. Quimper Wildlife Corridor Additions Timeline Est. Cost CFF Request Match project related costs Land to be purchased with CF Funds Fall 2021 $175,000 95,000 $80,000 (cash) Land to be donated as match Fall 2021 $50,000 50,000 (land donation) Land acquisition related costs (i.e., Mid 2021 $20,290 $20,290 appraisal, survey, attorney, closing costs) (cash) Project management, admin ongoing $11,500 $11,500 (cash) O&M ongoing $10,000 $5,000 $5,000 (cash) Total $100,000 $166,790 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): We had a certified appraisal conducted for both properties in February 2021. The acquisitions will include appraisal and review appraisal reports conducted by professional third party appraisers, attorney fees, land surveys, and escrow/closing costs. Project management costs include working with landowners and the title company, preparing deeds, and arranging the project for completion. Our attorney will review all documents before we acquire the properties. O & M only go to question #15: Scored Questions 1 a. Sponsor or other organizations X will will not contribute to acquisition of proposed site and/or operation and maintenance activities. 1 b. If applicable, please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. 5 2021 CF Program Application DRAFT btt.p://www.co.iefferson.wa.us/560/Conservation-Futures-Program I c. Matching Fund Estimate Acquisition O&M % Conservation Futures Funds Requested $95,000 $5,000 37% Matching Funds/Resources* $161,790 $5,000 63% Total Project Acquisition Cost $256,790 $10,000 100% * If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 d. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when? Land Donation $50,000 Yes No Yes No Cash $116,790 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 X is is not prepared to provide long-term stewardship (easement monitoring, maintenance, up -keep, etc.) for the proposed project site. 2 b. Describe any existing programs or future plans for stewardship of the property, including the nature and extent of the commitment of resources to carry out the stewardship plan. Jefferson Land Trust and the City mutually adopted the QWC Management Plan in 2008 and have shared management activities, meeting on occasion to discuss issues and strategies. We intend to update the QWC Plan to further define partner roles and prioritize future management activities to increase climate change resilience in the face of a changing landscape and population. Ecological and community benefits may be achieved by maintaining and enhancing structural and biodiversity in the corridor, including through the potential re-establishment of pocket prairies once maintained by the S'Klallam Tribes of the peninsula. As an accredited Land Trust, we have experience successfully managing and stewarding various types of preserves. We developed a Preserve Steward program, which provides an opportunity for long-term volunteerism through quarterly monitoring of all Land Trust preserves. Committed volunteers and neighbors have reported 1356 observations and identified 510 species in the QWC through the iNaturalist program. Volunteers contributed approximately 126 hours in 2019 alone on projects to install signage, assess habitat health and needs, remove trash, manage noxious weeds, and monitor properties within the QWC to ensure that conservation values are maintained over time. Volunteers are managed by the Land Trust preserve manager and City Parks Dept. staff. So far, the resources to fund this work have been absorbed by the City and Land Trust. Management activities associated with the current QWC protection effort include the need to survey property boundaries, demolish a few small unsafe structures, update signage, and update the joint Land Trust -City QWC Management Plan. These activities will be accomplished with staff, contractors 6 2021 CF Program Application DRAFT btq2://www.co.iefferson.wa.us/560/Conservation-Futures-Program and volunteers. The O&M funds applied for in this application will help go toward these ongoing management needs described above. Jefferson Land Trust conducts diligent and appropriate monitoring, stewardship, and management for all fee -simple properties that we own. This includes at least annual monitoring of the properties by professional staff and trained volunteers, extensive data collection and management, and legal defense of the conservation values should it become necessary. Jefferson Land Trust has a Stewardship Fund of over $700,000, and continues to build this fund with each new acquisition, recognizing the legal obligation and responsibility of protecting conservation values in perpetuity. In addition to the Stewardship Fund, Jefferson Land Trust carries legal defense insurance for preserves and conservation easements through a program called Terrafirma, developed through the national Land Trust Alliance (the national umbrella organization for land trusts). This program covers up to $500,000 in legal enforcement costs per property that Jefferson Land Trust holds and stewards. 3 a. Describe the sponsoring agency's previous or on -going stewardship experience. In addition to the above question, the Land Trust was founded in 1989 and is a nonprofit conservation organization dedicated to preserving the rural character and iconic landscapes of the Olympic Peninsula in Washington State. With a mission of "helping the community preserve open space, working lands, and habitat forever", we are actively engaged in preserving a sustainable environment where the needs of human communities and the natural world are in balance, and actively steward more than 17,000 acres of our region's most important places. We are accredited by the national Land Trust Alliance, and our efforts are guided by a long range Conservation Plan completed with our community in 2010. Collaboration is at the heart of our approach to conservation. We engage with partners in the "Chumsortium" to bring back vibrant salmon runs on Hood Canal, and in the Jefferson LandWorks Collaborative to support big -picture thinking around the ongoing economic viability of local farms and working forests. We partner with regional government, local and national agencies, Tribes, peer organizations, and individual citizens to safeguard the places we love and that are crucial to the health of our community, now and into the future. 3 b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? No, neither the sponsor nor applicant has been involved in a pro] ect previously approved for Conservation Futures funds. _X Yes, the sponsor and/or applicant for this project has been involved in a project previously approved for Conservation Futures funds. Please provide details: Jefferson Land Trust has successfully applied for and sponsored many successful land acquisition projects, and conservation easement funding on behalf of private landowners. These projects include: Sunfield Farm, 2003; Quimper Wildlife Corridor, 2004; East Tarboo Creek Conservation Project, 2005; Tamanowas Rock Phase 1, 2006; the Winona Buffer Project, 2006; Glendale Farm, 2007; Finnriver Farm, 2008; Quimper Wildlife Corridor, 2009; Brown Dairy, 2009; Salmon Creek Ruck 2010; Quimper Wildlife Corridor 2010; Tamanowas Rock 2010; Chimacum Creek Carleson 2011; Winona Basin-Bloedel 2011; L. Brown 2012; Boulton Farm 2012; Quimper Wildlife Corridor and 7 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Short Family Farm 2013; Quimper Wildlife Corridor and Snow Creek Irvin and Jenks, 2014; Midori Farm, 2015; QWC 2016 Addition, Tarboo Creek, Farm and Forest 2016; Serendipity Farm, Snow Creek Taylor and Tarboo Iglitzin 2017; Chimacum Forest, Marrowstone Mize, Ruby Ranch 2018 and 2020; Snow Creek Mid -Reach Forest 2018; Tarboo Forest Addition 2019; Quilcene Headwaters to Bay 2019 & 2020; Arlandia 2020 4 a. Property X can _cannot feasibly be acquired in a timely fashion with available resources. 4 b. Necessary commitments and agreements X are _are not in place. 4 c. All parties X are _are not in agreement on the cost of acquisition. If "not" to any of the above, please explain below. 5. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the 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 Land Trust, the City of Port Townsend, Jefferson County, state agencies, the local Audubon and Native Plant Society Chapters, and US Fish & Wildlife have been partnering on the project since the mid 1990's. Both City and County Comprehensive Plans speak to the importance of habitat corridors and trail networks and recognize the value of the QWC. The City's 2019 PT Stormwater Management Plan's key objective is to "define, provide, and protect a connected and well-defined built and natural drainage system" and this Plan identifies the QWC and its 100-year floodplain as a Level 1 ["the backbone or trunk of the system"]. The properties identified for acquisition were indicated in the Quimper Wildlife Corridor Management Plan that was adopted by the City of Port Townsend on May 19, 2008, Ordinance 2967. This management plan is available at the City's website, http://weblink.cityofpt.us/weblink/0/edoc/l 13226/Quimper%20Wildlife%20Corridor%20Manage ment%20Plan.pdf. Additional Cappy's Woods parcels are buffer lands to trail corridors that have been identified as important recreational priorities for the City of Port Townsend, as adopted in City Resolution No. 09-034. Additionally, the updated Jefferson County Comprehensive Plan states Policy OS-P-1.2, Partner to establish and conserve a sustainable system of open space corridors or separators to provide definition between natural areas and urban land uses. The Land Trust, the City of Port Townsend, Jefferson County, state agencies, the local Audubon and Native Plant Society Chapter, and US Fish & Wildlife have been partnering on the project since the mid 1990's. These parcels have been identified in the acquisition priorities of the project since the beginning due to the wetland, floodplain, buffer and upland forest values. Expanding forest and habitat connectivity is a primary value of protecting these properties. In addition, Jefferson Land Trust's Conservation Plan (2010)—prepared with the input of many 8 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program community members —specifically identifies the Quimper Wildlife Corridor as a priority. The plan is located on the JLT website at https://saveland.org/our-story/conservation-vision/. 6. Conservation Opportunity or Threat: 6 a. The proposed acquisition site X_does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 6 b. If applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. The two landowners listed in this application who are willing to sell or donate their properties provide a great opportunity to protect highly -utilized recreational trails, and habitat areas. The Taimay Jones parcels are close to development on northern Howard St. in Port Townsend, and could foreseeably be developed within several years. With current city zoning and plat configuration, the property could allow for the development of up to 22 residences. The current landowners are willing to sell the property at the appraised value. The Hertel property buffers the extensive habitat and trail corridors from the expanding Bell St neighborhood in northern Port Townsend. This 2.3-acre parcel is platted as one block with 20 lots, with 10 residences theoretically possible under the R-I zoning. While development of these 2.3 acres has thus been slowed by the Critical Drainage corridor, the southern portion of the block could be developed by bringing in access in a manner that conforms to City Code. The property was acquired by a community member for the express purpose of donating it to the Land Trust for protection. 7. Summarize the project's conservation values and how the CF funds requested support these values. Conservation values of extending protection of the Quimper Wildlife Corridor include preserving diverse second growth forest, providing habitat to resident and migratory wildlife, buffering existing trail corridors utilized by local citizens and visitors alike, and expanding the buffer of priority wetlands along the 100-year floodplain. The primary conservation values of the Taimay Jones Property is preserving extensive, scenic trails in the northern portion of the property, and protecting healthy, diverse habitat in the southern portion of the property. The 100-Year Floodplain runs right through this property, and has running water in the wet months. Mature conifer and hardwood trees, as well as standing snags and downed logs provide an excellent stretch of habitat that is not currently reached by trails in the southern portion of the property. If the Land Trust can purchase this property with CF funds, it will enhance the continuity of the existing protected wildlife corridor with permanent protection of one of the largest number of contiguous forested, individually -owned parcels. Protection of this property will prevent development close to an area of steeper slopes with the potential for accelerated runoff and erosion. The matching donation land includes Port Townsend's 100-Year Floodplain, a critical aquifer recharge, as well as the City's Critical Drainage. Protection by the Land Trust would extinguish all development rights, ensuring permanent buffer and habitat protection for the Quimper Wildlife Corridor to the south. In addition to the conservation values of extending the contiguous wildlife corridor and restricting floodplain development, this property acquisition will keep drainage basin hydrology intact, which is especially important in the face of changing climate. 9 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Conservation Futures Funds will make possible the acquisition of a fee simple property that aligns with the purpose of the CF Program to acquire green spaces and greenbelts. Jefferson County Conservation Futures Funds have been allocated to numerous land acquisitions in the QWC, and have been critical to the success of the project. 8. The proposed acquisition: 8 a. X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 8 b. X provides habitat for a variety of native flora or fauna species. 8 c. X contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above, please describe and list the Priority Habitat(s) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species' use.' The Quimper Wildlife Corridor provides critical habitat in an area of increasing urban development and is home to a wide variety of flora and fauna, from the humble rough -skinned newt and Calypso orchid to nearly 200 bird species and numerous small and large mammals. Protection Island, located just offshore of the western end of the corridor, is a National Wildlife Refuge and home to nearly seventy percent of the seabirds that nest and breed in all of Puget Sound. Washington Department of Wildlife and the local Audubon Society have identified several state priority species in the Quimper Wildlife Corridor that are sensitive, threatened or listed. These include: Bald eagle, Peregrine Falcon, Wood duck, Great Blue Heron, Band -Tailed Pigeon, Merlin, Olive Sided Flycatcher, black tailed deer, and bobcat. The corridor will allow these species and others the safety of cover to move between wetlands, forest ecosystems, and marine shoreline environments. 8 d. Does the current owner participate in conservation programs that enhance wildlife habitat? If so, please provide details. The current owners do not participate in any conservation programs. 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 two properties do not directly protect habitat for anadromous fish species. However, protecting the water quality of the city's largest drainage basin through providing filtration and reducing siltation is important for water draining to the Strait of Juan de Fuca. 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. 1 See, for example, hqp://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conser-vation/phs/list/ http://wwwl.dnr.wa. og v/nhp/refdesli/plants.html http://wwwl.dnr.wa. og v/nhp/refdesli/pubs/wa ecological_systems.pdf 10 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program No agricultural uses are planned for either property. 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. No agricultural uses are planned for either property. 10 c. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. No agricultural uses are planned for either property. 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. There is no current or planned commercial silvicultural use of the proposed site. Given the sizes of the parcels, they do not offer the opportunity for commercial timber production. If forest restoration ever becomes necessary due to external factors such as climate change, actions could be taken to enhance forest health. These actions could include selective thinning and diversifying species through understory plantings, which would be undertaken in accordance with a developed forest management plan. 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. None have been implemented. 11 c. Describe how the property acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. As described above, The Land Trust's acquisition of the proposed property will enhance the listed functions through expanding the existing wildlife corridor and floodplain and trail buffer zones of the greater Quimper Wildlife Corridor. 12 a. Describe how the proposed acquisition benefits primarily a _local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. Protection of the diverse second growth forest and wetland, buffer and floodplain habitats of the QWC provides particular benefits to local residents in that it provides storm -water filtration and floodplain retention. In general, however, protection of the Quimper Wildlife Corridor habitats and Cappy's Woods provides benefits not only to residents of Port Townsend and surrounding county areas, but also to the many visitors to our area. The corridor is used extensively for passive recreation by the community and visitors who enjoy walking the trails, bike riding and horseback riding. The wetlands and forests of the corridor provide education opportunities for users of all ages, and are field classrooms for a wide range of groups as described below. Field trips in the corridor are highlighted in continuing education courses offered to realtors from across the region, who visit this place to better understand wetland ecology. 11 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Bike trails in the corridor have been identified in a national mountain bike magazine. Locally, Jefferson Land Trust has conducted numerous tours to various parts of the corridor over the last 10 years as part of our ongoing community outreach efforts. The Land Trust's efforts to expand the Quimper Wildlife Corridor by —60 acres over the new few years will permanently protect many of these ecologically important properties, as well as continue to buffer to existing trail corridors. The two properties highlighted in this CFF application directly provide many of these benefits. 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, this project is not located in any of these areas listed. 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.' The Quimper Wildlife Corridor is increasingly utilized by numerous schools and community groups for educational purposes, including by school groups of all ages from the Port Townsend School District, the Swan School, CedarRoot Folk School, Jefferson Land Trust Natural History Society, Native Plant Society walks, Master Gardener training, Audubon walks and annual Christmas bird counts, plus countless others. The Land Trust has developed a Preserve Steward program, which provides an opportunity for long-term, committed volunteerism. It includes quarterly monitoring of all Land Trust preserves (including QWC) and an opportunity for interested citizens to create an intimate relationship with the land. Dozens of residents have participated in naturalist -led walks conducted by Jefferson Land Trust. Community members volunteer annually to help with stewardship activities in the corridor. Jefferson Land Trust has also created two interpretive displays that provide visitors to the corridor an understanding of the function of the corridor, as well directing people away from the more sensitive habitat areas. Visitors can now rest on several benches built by Land Trust volunteers that are in strategic locations in the QWC. Volunteers contributed approximately 45 hours last year alone on projects to assess habitat health and needs, remove trash, manage noxious weeds, and monitor Land Trust and City -owned properties alike to ensure that conservation values are maintained over time. Multiple entry points are located on Jefferson Transit bus routes and are a short distance from most City neighborhoods. City Parks Dept. and the Active Transportation Advisory Board coordinate the maintenance of the low -mobility accessible primary trails. 14. The proposed acquisition _ includes historic or culturally significant resources3 and ' The words "education" and "interpretation" are interpreted broadly by the CF Committee. 12 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program is registered with the National Register of Historic Places, or an equivalent program. _is recognized locally has having historic or cultural resources. X is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical or cultural resources. Jefferson Land Trust continues to strive to strengthen our relationships with local tribes, and in September of 2020 we brought tribal members from Port Gamble S'Klallam and Jamestown S'Klallam to tour the Quimper Wildlife Corridor. During this tour, the Port Gamble S'Klallam Tribal Historic Preservation Officer identified at least one culturally modified candelabra tree on one of the properties that Jefferson Land Trust will acquire in this phase of protection. While this important tree, over 600 years old, is not on the Taimay Jones or Hertel properties, the proximity of the culturally significant tree to these acquisition properties demonstrates the importance of the QWC to local indigenous peoples. As we have learned from the tribes, the candelabra trees can represent significant cultural value based upon traditional uses by indigenous peoples in the area —sites for lookout, trails, and laying the deceased to rest. Upon learning about the culturally modified tree in our project area, Jefferson Land Trust aims to incorporate the opinions of the S'Klallam people into land management ideas and decisions in this area. 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 13 2021 CF Program Application DRAFT btt.p://www.co.iefferson.wa.us/560/Conservation-Futures-Program O & M Stand Alone Projects 15. Applications for Operation and Maintenance funding only: Please describe in detail, the reason O&M funds are needed, proposed O&M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan, maps, field reports, work plan, budget, timeline, etc., to support the application, if appropriate. O & M projects must address a compelling, immediate need. Verification 16. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project "report card" that will be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is required to submit progress reports for three years and for any year in which O&M funds are expended. S Initials3 [ 2S" 2024 Date 17. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have not obtained the required matching funds, the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re -apply. If this application is approved for funding, I understand that we may be required to re -submit the application if the project sponsor does not obtain the necessary matching funding within three years. Initials, 2S Date 14 2021 CF Program Application DRAFT ham://www. co. i efferson, wa.us/560i'Conservation-Futures-Pro g.ran i Landowner Acknowledgement Form' M I - Project Applicant Information Applicant Name: Jefferson Land Trust Project Number/Name: Quimper Wildlife Corridor 2020 Contact: ❑ Mr. ® Ms. First Name: Sarah Last Name: Spaeth Title: Director of Conservation and Strategic Partnerships Mailing Address: 1033 Lawrence St. Port Townsend, WA 98368 E-Mail Address: sspaeth@saveland.org Property Information Address or Location: DAVID'S ADDITION BLK 3 LOTS 1 TO 4; DAVID'S ADDITION BLK 4 LOTS 1 TO 4; DAVID'S ADDITION BLK 9 LOT 1; DAVID'S ADDITION BLK 2 LOTS 1 TO 8; DAVID'S ADDITION BLK 5 LOTS 1 TO 8; DAVID'S ADDITION BLK 8 LOTS 1 & 2; DAVID'S ADDITION BLK 1 LOTS 1 TO 8; DAVID'S ADDITION BLK 6 LOTS 1 TO 8; DAVID'S ADDITION BLK 7 LOTS 1 & 2 County/Parcel Number: 946500301, 946500401, 946500901, 946500201, 946500501, 946500801, 946500101,946500601,946500701 Landowner Information Landowner Name: Taimay Jones Representative: Re p ❑ _ Mr. � Ms. First Name: j a�L � Last Name: Title: Mailing Address: 3003 218th Ave SE, Sammamish, WA 98075 E-Mail Address: 1 • . VI e, andowner name) is the legal owner of property described in the grant application b ing submitted to the Recreation and Conservation Office by the project applicant. 2. 1 am aware that the project being proposed in the grant application is on my property. 3. If a grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. My signature does not represent authorization of project implementation. 5. If I am affiliated with the project applicant, I will recuse myself from decisions made by the project applicant toanot or purchase my property. 6. There are ircle one) tenants on the property. Tenants displaced as a result of this project mayle for relocation assistance. "Manual 3: Acquisition Projects," Appendix H Landowner Acknowledgement Form' Project Applicant Information Applicant Name: Jefferson Land Trust Project Number/Name: Quimper Wildlife Corridor 2020 Contact: ❑ Mr. ® Ms. First Name: Sarah Last Name: Spaeth Title: Director of Conservation and Strategic Partnerships Mailing Address: 1033 Lawrence St. Port Townsend, WA 98368 E-Mail Address. sspaeth@saveland.org Property Information Address or Location: Fowlers Park Blk.7, lots 15 & 16; S4 T30 R1W W112 NE114, NW 1/4 (Less SE 1 AC SO); Tacoma Blk.9, lots 1 &2; Fowlers Park, Block 35 Lots 1-20 (i.e. all) County/Parcel Number: 951900-707; 001-042-001; 998-000 902; 998-000-903; 951-903-501 Landowner information Landowner Name: Sarah and Owen Falrbank Representative: El Mr. ❑ Ms. First Name: Owen Last Name: Fairbank Title: Mailing Address: 815 Van Buren St. Port Townsend, WA 98368 E-Mail Address: sofa irbanWED-olympus.net 1. We, Sarah and Owen Fairbank, are the legal owners of property described in the grant application being submitted to the Recreation and Conservation Office by the project applicant. 2. We are aware that the project being proposed in the grant application is on our property. 3. If a grant is successfully awarded, I will be contacted and asked to engage in negotiations. 4. Our signatures do not represent authorization of project implementation. 5. If we are affiliated with the project applicant, we will recuse ourselves from decisions made by the project applicant to work on or purchase my property. 6. There are not tenants on the property. April 16, 2020 Landowner Signatures Date I "Manual 3: Acquisition Projects," Appendix H iConservation Futures Parcels Trails Quimper Wildlife Corridor Geographic Area Raods Variously Protected Properties 100 Year Floodplain Other Interested Landowners Wetlands hd/ -'� urce: E-sri D g - � �Y.• IGN, nd she GiS Quirnper Wildlife Corridor Site Location eyy.,.nl Fort Worden w� 1 1 •� I � - l;. Abe„ GeoE�ye, E rthstar Geographic,, ONES/Airduky R6ro,G'RI,D CCromm n tv N' Me, , 0 300 600 1,200 1,800 2,400 3,000 Feet For informational purposes only. All data represented are from varying sources and approximate. 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Unless directed otherwise, use as much space as needed to answer each question. Contact program staff at 379-4498 or tpokorny@co.iefferson.wa.us with questions. Background and Eligibility Information 1. Project Title: —Schmidt Farm — Phase II of Quilcene Headwaters to Bay project 2. Conservation Futures Acquisition Request: $95,000 Conservation Futures O&M Request: $5,000 3. Total Conservation Futures Request: $100,000 4. Please indicate the type of interest contemplated in the acquisition process. Warranty Deed X Easement _ Other (Please describe below) In whose name will the property title be held after acquisition? Paul and Mary Schmidt with a conservation easement held by Jefferson Land Trust, and a REPI easement held by the US Department of Defense. 5. Applicant Information Organization Name: Jefferson Land Trust Contact: Sarah Spaeth Title: Director, Conservation and Strategic Partnerships Address: 1033 Lawrence Street Phone: (360) 379-1135, ext.101 Email: sspaeth@saveland.org 6. Sponsor Information: (f different than applicant) Organization Name: Contact: Fax: O - , ext. Title: Address: Phone: O - ext. Fax: O - ext. Email: 1 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program This application was approved by the sponsor's legally responsible body (e.g., board, council, etc) on January 19, 2021. 7. Site Location Street Address or Description of Location: 255 Jakeway Rd. Quilcene 98376 Driving Directions from Port Townsend: Take Center Road south to East Quilcene Road. Head east to Jakeway Road (just past head of Quilcene Bay). Turn left onto Jakeway Road and follow to 255 Jakeway at the end. Section: 18 Township: 27 N Range: 1 W Assessor's Parcel Number(s): 701 182 005, 701 183 003 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. Both parcels listed above are to be preserved with a conservation easement held by Jefferson Land Trust, along with a Navy REPI easement. Please list the assessed values for each property or APN, as applicable. 701 182 005 - $581,545 current market value assessed (includes improvements), and the total current use taxable value at $453,599 701 183 003 - $145,740 current market value, with total current use taxable value at $6,334 8. Existing Conditions New Site: Yes No X Number of Parcels: 2 Addition to Existing Site: Yes X No Acres to Be Acquired: 67 Total Project Acreage (if different): -195-acres (adjacent Jefferson Land Trust Preserve on Donovan Creek + Mahan conservation easement property + Schmidt project) Current Zoning: AP1:20 Existing Structures/Facilities: One residence, a loafing shed/shop, hay barn, silo, covered bridge and other small outbuildings Any current covenants, easements or restrictions on land use: None Current Use: Residential and agricultural uses Waterfront (name of body of water): Jakeway Creek Shoreline (linear feet): Approximate length - 2068 ft of Jakeway Creek 2 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Owner Tidelands/Shorelands: Directly adjacent to Quilcene Bay estuary and Donovan Creek riparian habitat 9. Current Property Owner X is _is not a willing seller. Project Description 10. In 1,000 words or less, provide a summary description of the project, the match, overarching goal, and three top objectives. Include information about the physical characteristics of the site that is proposed for acquisition with Conservation Futures Program funds including: vegetation, topography, surrounding land use, and relationship to parks, trails, and open space. Describe the use planned for the site, any development plans after acquisition (including passive development), characteristics of the site which demonstrate that it is well -suited to the proposed use, and plans for any structures currently on the site. If applicable, describe how the site relates to the larger project, and whether the project has a plan, schedule and funding dedicated to its completion. Please also list any important milestones for the project or critical dates, e.g. grant deadlines. List the dates and explain their importance. Please attach a spreadsheet of the budget. Jefferson Land Trust is seeking Conservation Futures funding in the amount of $100,000 for Phase II of the Quilcene Headwaters to Bay project, located at the head of Quilcene Bay. The goal of the project is to protect valuable farmland with prime soils and riparian habitat along Jakeway Creek as it flows from the forested headwaters on the adjacent Mahan property, preserved in 2020, through the Schmidt Farm to the Land Trust's Lower Donovan Creek Preserve and tidal areas of Quilcene Bay (please see attached maps for full project geography). The Schmidt property consists of mostly pastureland, is one of the largest agricultural parcels in the Quilcene area, and the gently sloped topography and prime agricultural soils contribute to its economic viability as a farm, making it a desirable addition to the larger conserved acreage of both farmland and habitat at the head of Quilcene Bay. As previously described in our 2019 and 2020 CFF applications for the Mahan property, Quilcene Bay provides rich habitat for salmonids including federally -threatened Hood Canal summer chum salmon, Puget Sound Chinook salmon, steelhead trout and coastal Puget Sound bull trout, as well as Strait of Georgia coho salmon (federal species of concern), pink salmon, and cutthroat trout. The salt marshes and Quilcene Bay also support eelgrass and dunegrass beds that provide cover and habitat for spawning forage fish, native shellfish, crabs, beavers, river otter, harbor seals and numerous shore and water birds including at least nine federal or state listed species. The Land Trust and other partners including the Hood Canal Salmon Enhancement Group, Jefferson County Conservation District (JCCD), Jefferson County and private landowners have been working on preserving and restoring upland forests, wetland, riparian and estuarine habitat of Quilcene Bay for nearly 30 years, and this project represents a unique chance to preserve a missing puzzle piece of prime agricultural land and habitat and expand on those earlier efforts. In Phase II of this Headwaters to Bay project, we have the opportunity to work with the Schmidts to preserve their 67 acres of historic, prime farmland and Jakeway Creek habitat. The pastureland that comprises most of the Schmidt Farm has been in agricultural use for nearly 100 years, almost exclusively for raising dairy cows and more recently for beef cattle and hay production. In addition to the one residence located in the NE corner of the farm, agricultural infrastructure includes one hay shed (former dairy barn), one concrete silo, a finished barn "loafing shed" that includes shop space. The pasture is currently set up with 6 large, fenced pastures, each of which provides limited access for cattle to drink out of Jakeway Creek. The property is zoned Agricultural Production 1 house per 20 acres. Located within the middle of the southern Schmidt parcel, an odd inholding of 1.28 acres is owned by another landowner, but the Schmidts (or any future landowners of the Schmidt property) 3 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program have the first right of refusal to acquire the small inholding when it comes up for sale. The Schmidts are of retirement age and are ready to sell the farm, but prior to selling they want to ensure that the property is permanently protected for agricultural use into the future. The sale of the conservation and REPI easements will help keep this farmland affordable for the next landowners — a goal that the Schmidts and the Land Trust share. A conservation easement and Navy REPI easement will restrict further residential development by retiring the estimated two additional development rights and will protect the pastureland for agricultural uses and the Jakeway Creek buffer area for habitat values. According to WDFW, Jakeway Creek hosts coho, cutthroat, waterfowl concentrations, trumpeter swans (plus fall chum and steelhead trout in Donovan Cr.), and includes Priority Freshwater Emergent and Freshwater Forested/shrub Habitat and a spotted owl management buffer. This project will also fill a gap in the protection of a continuous corridor from the marine waters of Quilcene Bay to the forested uplands, a connection that enables species movement from day to day and over time as the climate changes, thereby increasing resilience and supporting biodiversity. The Navy contribution will provide the majority of the match for the CFF program, but additional cash contributions may be added as match depending on the value of the conservation and REPI easements. To date, Jefferson Land Trust protects over 128 acres of riparian, wetland and estuarine habitat at the head of Quilcene Bay through two conservation easements and fee ownership of two preserves. The Schmidt Farm project adds an additional — 67-acres to this effort. Extensive restoration efforts have been undertaken over the past decade on Jakeway and Donovan Creeks by Jefferson County Conservation District (JCCD), Jefferson County, Jefferson Land Trust, and the Hood Canal Salmon Enhancement Group (HCSEG). Subsequent to the 2007 replacement of a 5-ft. culvert (identified as a fish barrier) under East Quilcene Road with a 70-ft. concrete bridge by both Hood Canal Salmon Enhancement Group and Jefferson County Public Works, Jefferson Land Trust worked with project partners on a major restoration project to restore lower Donovan Creek to its historic channel. We replanted the riparian buffer and wetlands with thousands of native plants in 2016 and have been managing the restoration site since. This effort, which is continuing, serves to enhance the natural estuary conditions at the head of Quilcene Bay, which provide critical habitat for juvenile salmon and other species discussed above. Other adjacent lands are owned by Pope Resources, DNR and private landowners. Protection of the Jakeway Creek tributary represents an important expansion of these investments and is being developed in close partnership with the Conservation District. See table below for budget spreadsheet. Overarching Goal: Preserve the 67-acre Schmidt property with easements that reduce development potential from three residential rights to one; protect the prime soils for agricultural uses, preserve the Jakeway Creek riparian habitat and water quality of Quilcene Bay, along with the scenic open space values of the property which are highly visible from Center Rd and E. Quilcene Road. The success of this project will help make the land more affordable for a future farmer/buyer and provide the Schmidt's the peace of mind that they have helped ensure the land stays available for farming and habitat values into the future. Objectives 1) Secure Jefferson County Conservation Futures funding for purchase of the conservation easement — June 2021 4 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program 2) Secure additional match funding through the Navy REPI program and other sources as needed 2021-2022. 3) Draft the easements with landowner input and conduct due diligence activities 2021-2022 4) Obtain appraisal to determine value of CE and REPI easement funding as match for CFF program. Purchase the two easements in fall 2022. 11. Estimate costs below, including the estimated or appraised value of the propert(ies) or property right(s) to be acquired, even if Conservation Futures funds will only cover a portion of the total project cost. In the case of projects involving multiple acquisitions, please break out appraisals and estimated acquisition costs by parcel. Estimated or Appraised Value of Propert(ies) to be Acquired: $350,000 Total Estimated Acquisition -related Cost (see Conservation Futures Manual for eligible costs): $50,000 Total Operation and Maintenance Cost: $10,000 Total Project Cost: $410,000 Basis for Estimates (include information about how the property value(s) was determined, anticipated acquisition - related costs, general description of operation and maintenance work to be performed, task list with itemized budget, and anticipated schedule for completion of work): Quilcene Headwaters to Bay Preserve Timeline Est. Cost CFF Request Match Phase II Project related costs Easement acquisition 2022 $350,000 $55,000 $295,000 Land acquisition related costs, i.e. Late 2021 and $35,000 $25,000 $10,000 appraisal, survey, Baseline document, 2022 Stewardship Plans, closing costs Project management, admin and legal ongoing $15,000 $15,000 fees O&M ongoing $10,000 $5,000 $5,000 Total $410,000 Total: $100,000 $310,000 The estimate for the value of the easement acquisition is based on the current Jefferson County fair market value assessment of the property, combined with our knowledge of the appraised value of other conservation easements on local farmland recently. Similarly, Jefferson Land Trust completes multiple acquisition projects a year which helps provide us experienced estimates for project management and other administrative costs that will be needed for this project. O & M only go to question #15: Scored Questions 5 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program I a. Sponsor or other organizations X will will not contribute to acquisition of proposed site and/or operation and maintenance activities. I b. If applicable, please describe below how contributions from groups or agencies will reduce the need to use Conservation Futures program funds. 1 c. Matching Fund Estimate Acquisition O&M % Conservation Futures Funds Requested $95,000 $5,000 24% Matching Funds/Resources* $305,000 $5,000 76% Total Project Acquisition Cost $400,000 $10,000 100% * If a prior acquisition is being proposed as match, please describe and provide documentation of value, location, date of acquisition and other information that would directly link the match to the property being considered for acquisition. 1 d. Source of matching Amount of Contribution If not, Contribution If not, funds/resources contribution approved? when? available now? when'? Navy REPI $250,000 Yes No Yes No At closing Jefferson Land Trust $60,000 Yes No Yes No At closing $ 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 ofproperty or a property right will be considered as a matching resource. Donation of resources for on -going maintenance or stewardship ("in -kind" contributions) are not eligible as a match. 2 a. Sponsoring agency X is _is not prepared to provide long-term stewardship (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. Protection and stewardship actions for this property are designed to protect the agricultural vitality of the region along with the habitat needs for declining salmonid populations and estuary functions in Quilcene Bay aligned with regional salmon recovery priorities. Jefferson Land Trust has developed a rigorous program for stewardship and monitoring of conservation easement terms over the 32 years since we were formed, including at least annual monitoring of the property by professional staff and trained volunteers, extensive data collection and management, help with stewardship, enhancement and restoration goals and legal defense of the conservation easements should it become necessary. As of 2021, Jefferson Land Trust has a legal defense fund of over $800,000 and continues to build this fund with each new easement acquisition, recognizing the legal obligation and responsibility of protecting conservation values in perpetuity. In addition, Jefferson Land Trust carries legal defense insurance for conservation easements through a program called Terrafirma, developed through the national Land Trust Alliance (the national umbrella organization for land trusts). This program covers up to $500,000 in legal enforcement costs per conservation easement that Jefferson Land Trust holds and stewards. 6 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program Our close partner, the Jeff. Co. Conservation District has worked with landowners in the Quilcene Bay watershed to implement best management practices on agricultural land and to restore salmon riparian and wetland habitat. They provided technical expertise, support, and on the ground oversight of restoration activities. The Schmidt project provides a potential future partnership opportunity for the Conservation District to conduct additional restoration and enhancement activities on Jakeway Creek, which would reduce sediment buildup and improve salmon habitat. 3 a. Describe the sponsoring agency's previous or on -going stewardship experience. Over the 32 years since it was formed, Jefferson Land Trust has managed many acquisition projects with several project partner organizations, including Jefferson County, The Trust for Public Land, Northwest Watershed Institute, North Olympic Salmon Coalition (NOSC), JCCD, HCSEG and others, and we have been responsible for conducting or coordinating restoration activities in partnership with many of those same agencies and organizations. We hold 65 conservation easements on 4,051 acres and have helped with the preservation and stewardship of another 12,302 acres in Jefferson County. The Land Trust also holds title to over 697 acres of preserves, including the 135-acre Bulis Forest Preserve, portions of the Quimper Wildlife Corridor, and salmon habitat on Chimacum, Salmon, Snow and Donovan Creeks, the Big Quilcene and Duckabush Rivers. Stewardship activities are carried out by professional staff with the assistance of volunteer Preserve Stewards. The Nature Conservancy and Washington State Parks contract with Jefferson Land Trust to monitor and steward nearly 7,400 acres of land under their control. In addition, Jefferson Land Trust stewards land owned by Jefferson County, the City of Port Townsend and the Department of Natural Resources. Jefferson Land Trust stewardship and monitoring protocols were developed with the guidance of the national Land Trust Alliance, and adherence to those protocols is one of the requirements for our formal land trust accreditation. Collaboration is at the heart of our approach to conservation. We engage with partners in the "Chumsortium" to bring back vibrant salmon runs on Hood Canal, and in the Jefferson LandWorks Collaborative to support big -picture thinking around the ongoing economic viability of local farms and working forests. We partner with regional government, local and national agencies, Tribes, peer organizations, and individual citizens to safeguard the places we love and that are crucial to the health of our community, now and into the future. 3 b. Has the sponsor and/or applicant of this project been involved in other projects previously approved for Conservation Futures funding? No, neither the sponsor nor applicant has been involved in a pro] ect previously approved for Conservation Futures funds. _X Yes, the sponsor and/or applicant for this project has been involved in a pro]ect previously approved for Conservation Futures funds. Please provide details: Jefferson Land Trust has worked with many willing landowners and sponsored 35 CFF applications over the years since Jefferson County approved collection of the conservation futures property tax and developed the program in 2003. These projects are found in almost all areas of East Jefferson County and range from fee simple acquisition of nature preserves that are held by Jefferson Land Trust, or by other entities such as the City of Port Townsend, Jefferson County or the Jamestown S'Klallam Tribe, to permanent conservation easements held by Jefferson Land Trust on privately owned properties. 7 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program 4 a. Property X can _cannot feasibly be acquired in a timely fashion with available resources 4 b. Necessary commitments and agreements _are X are not in place. 4 c. All parties _are X are not in agreement on the cost of acquisition. If "not" to any of the above, please explain below. Once CFF funding is secured, we will begin drafting the conservation easement and REPI easement documents in partnership with the landowners. The landowners are eager to complete the preservation effort and are in general agreement with the Land Trust on the provisions of the easement. We will work out the details, followed by the appraisal process and survey of the building envelope. The Land Trust will offer the Schmidts the fair market value purchase price of the higher -valued conservation easement. We hope to close on this in late 2022. 5. The proposed acquisition X is specifically identified in an adopted open space, conservation, or resource preservation program or plan, or community conservation effort. Please describe below, including the site's importance to the plan. Please reference the website of theplan if available or include the plan with this application. X complements an adopted open space or conservation plan, but is not specifically identified. Please describe below, and describe how the proposed acquisition is consistent with the plan. is a stand-alone project. The Jefferson Co. Comprehensive Plan says that "It is Jefferson County's intent to protect and foster opportunities for the successful practice of agriculture. Land with prime agricultural soils clearly must be preserved" and a soil productivity classification of 12 Animal Month Units puts the soils here in the highest-ranking class. The Agricultural Production zoning of the property also reflects the County's goals for this land. The American Farmland Trust's 2012 report Losing Ground: Farmland Protection in the Puget Sound Region includes a Jefferson County Scorecard which identifies the need for additional farmland protection and also acknowledges the important role of the Conservation Futures Fund in that effort. A 2009 State Office of Farmland Protection Report notes "The legislature finds that the retention of agricultural land is desirable, not only to produce food, livestock, and other agricultural products, but also to maintain our state economy and preferable environmental conditions." and this report also documents decreasing farmland acreage and land prices rising with development pressure. The Olympic Peninsula Resource Conservation & Development proposed Adaptation Strategies in their "Climate Change Preparedness Plan for the North Olympic Peninsula" (2015). In this plan, they suggest to "acquire and preserve existing vegetated, unprotected areas adjacent to river systems" and to "designate and prioritize funding for additional land designated for agriculture". Jefferson Land Trust's community -vetted Conservation Plan articulates the importance of preserving agricultural lands with the community vision - A thriving, sustainable agricultural industry is prominent in the local economy, culture, and landscape and is supported by a greater demand for local food." (pg. 29, Jefferson Land Trust Conservation Plan, 2010). It also identifies "prime farmland soils and/or proven productivity" and "proximity to population centers" as priorities for agricultural lands to be protected. The Conservation Plan also states the importance of healthy rivers and streams that enter into Hood Canal — "Many salmonid species spend a large part of their early life stages in the estuaries, and water quality conditions in Hood Canal are essential to their continued survival" (pg.14 and pg.17). It also states that we should "integrate aquatic corridor and watershed scale conservation tactics". 8 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program One of the most significant and unique features of this project is opportunity to protect a watershed that directly feeds into Quilcene Bay, where clean water is critical for ecosystem health. Because of substantial intact tidal marsh habitat, Quilcene Bay has been recognized as a priority ecosystem for protection and restoration by many groups. It is a priority nearshore conservation area according to The Nature Conservancy's Willamette Valley -Puget Trough -Georgia Basin Ecoregional Assessment (Floberg et al. 2004) because of its importance for conservation targets such as surf smelt (an important forage fish) and Olympia oysters. Priority Conservation Areas are defined as areas of biodiversity concentration that contain target species, communities and ecosystems and are considered the highest priorities for conservation. It is also a priority zone for the recovery of threatened Hood Canal summer chum salmon (Summer Chum Recovery Plan 2007) and Puget Sound bull trout (USFWS Draft Recovery Plan for the Coastal -Puget Sound Distinct Population Segment of Bull Trout 2004). Furthermore, Quilcene Bay and the estuarine and palustrine wetlands nearby provide many habitat and foraging values that are recognized by national and regional plans aimed at conserving shorebirds, waterfowl and water birds. Finally, the Schmidt property is specifically identified on Jefferson Land Trust's Climate Resiliency Spatial Conservation Planning maps that were recently created with resiliency data gathered and analyzed by an independent consultant. 6. Conservation Opportunity or Threat: 6 a. The proposed acquisition site X does _does not provide a conservation or preservation opportunity which would otherwise be lost or threatened. 6 b. If applicable, please carefully describe the nature and immediacy of the opportunity or threat, and any unique qualities about the site. Farmland in Jefferson County continues to be a desirable commodity and property values are escalating to a point that farmer/buyers are being priced out of access to available farmland. We have a window of opportunity to work with willing sellers to preserve and steward their 67 acres of working land and habitat conservation values on site and help make the property more affordable for the next landowner. This is key, as the Schmidts plan to sell the farm once the easements are in place. They demonstrated a commitment to conservation with the sale of over 20 acres of their lower pasture to the Land Trust in 2011 for habitat values. With sale of the easements on the 67-acre parcel, the neighboring landowners may be in a position to acquire the property to expand agricultural production beyond the current uses. The Jefferson LandWorks Collaborative may also play a role in linking a farmer/buyer with the land once the easements are in place if the interested neighbors are unable to acquire the property. With its central location and dramatic views of mountains and bay, future subdivision and development seem highly likely if this property is not protected as development pressure continues to grow in this scenic area accessible to the large urban areas of the Puget Sound region. 7. Summarize the prolect's conservation values and how the CF funds requested support these values. Conservation values of the Phase II Quilcene Headwaters to Bay project include an integrated approach to protection of a continuous corridor between the marine waters of Quilcene Bay and forested uplands, and Schmidt prime farmland acreage is a critical piece of that effort. Moreover, the project will support reducing sedimentation of salmon and shellfish habitat and herring spawning grounds, as well as connecting estuarine shoreline and low-lying agricultural lands with forested uplands in the Jakeway Creek watershed. Conservation Futures Funds will contribute to the purchase 9 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program of a conservation easement that will protect this significant agricultural parcel from subdivision and further development, allow for continued agricultural production and potential future restoration and enhancement activities on Jakeway Creek. Social and economic benefits include retaining prime agricultural land for local food production, and preserving the viewshed of Quilcene and nearby East Quilcene Bay Road. 8. The proposed acquisition: 8 a. X provides habitat for State of Washington Priority Habitat and/or State or Federal Threatened, Endangered or Sensitive species. 8 b. X provides habitat for a variety of native flora or fauna species. 8 c._ X contributes to an existing or future wildlife corridor or migration route. If affirmative in any of the above, please describe and list the Priority Habitats) and Threatened, Endangered, or Sensitive species below, and cite or provide documentation of species' use.' According to WDFW Priority Habitat and Species Report, Jakeway Creek hosts coho and cutthroat trout, and the project area includes WDFW Priority Freshwater Emergent and Freshwater Forested/shrub Habitats, and spotted owl management buffer. Water quality from the property is important to the health of Quilcene Bay and the conservation values of this tidal estuarine habitat as indicated in #5 above. Ecological values identified by the Land Trust include a riparian habitat corridor connecting upland forest to Quilcene Bay through the Mahan CE (to the east) and the Land Trust's Lower Donovan Creek Preserve (to the west and south). This property presents an important opportunity to fill in the gap of protection that the Land Trust and other partners have been working on at the head of Quilcene Bay for decades. Diverse species are found here including nesting wood ducks, black bear families, coho, cutthroat trout, nesting bald eagles, and proximity to spotted owl and trumpeter swan habitats. 8 d. Does the current owner participate in conservation programs that wildlife habitat? If so, please provide details. In 1995, the Jakeway Creek riparian corridor was improved (in its adjusted location) by the JCCD through a cost -share program with the landowner. Buffer plantings, a silt pond, and weirs were installed to retard down cutting in the creek as an effort to improve water quality and the Jakeway Creek habitat for salmonid species and other wildlife use. Jakeway Creek's Iandforms, wet spots, and old illustrations of creek placement show that the creek used to live farther south in both the Schmidt and Mahan properties. We believe that the previous landowner, Al Jakeway, relocated the creek for agricultural purposes many decades ago. Jakeway Creek now runs quite straight through the pastures of what was a dairy farm in the past, and prior to the JCCD work, the water in the creek tested high for fecal coliform. ' See, for example, http://www.dnr.wa.gov/researchscience/topics/naturalheritage/pages/amp nh.aspx http://www.wdfw.wa.gov/conservation/phs/list/ http://wwwl.dnr.wa. of v/nhp/refdesk/plants.html http://wwwl.dnr.wa.gov/nhp/refdesk/pubs/wa ecological systems.pdf 10 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program 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. Approximately 2,000 feet of Jakeway Creek transects the property traveling from the NE corner of the property to the SW corner as it feeds into Donovan Creek and the Quilcene Bay estuary. The JCCD restoration project in 1995 included planting a 10-15 foot buffer with conifer species to provide shade for salmonid species. The restoration efforts also included a remeander of the creek in the lower reaches near Donovan Creek and out into the salt marsh area from the Quilcene Bridge upstream on property that was previously owned by the Schmidts but is now in permanent protection as a Jefferson Land Trust Preserve. While the buffer plantings have increased shading of the creek, one section of trees has mostly died, the Creek has become more incised in some stretches, and the silt pond is filling up. The landowners have been frustrated with required permitting and delays to remove silt that has accumulated in the pond and to perform other maintenance which they believe may be responsible for making it more difficult for salmonids to get very far up Jakeway Creek in the last few years. There is the potential for further riparian restoration in the lower stretch, most likely with a subsequent landowner. 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. The Schmidt Farm is currently producing hay crops and is also used for grazing cattle. The landowners have leased the desirable farmland to various local farmers including Keith Kisler, Martin Mills and the Mahans, who currently hay the property and partner with Martin to graze his cattle. The soils include Wapato silty clay loam and Casey silt loam, both classified by NRCS as Prime Farmland soils if drained (and "if protected from flooding" for Wapato silty clay loam). The pasture is currently set up with 6 large, fenced pastures, each of which provides limited access for cattle to drink out of Jakeway Creek. There is a 15 gpm well for domestic and garden use. The larger size of this property contributes to its economic viability as a farm, and this would be further enhanced if it ends up being combined with the Mahan neighbor's 80-acre protected property. It is anticipated that animal production will likely be the primary agricultural use in the future, but other crop potential, such as grain and vegetable production has been considered by lessees of the property and would likely be explored by any future farmer/owner. As older family farms get subdivided and sold off, fewer and fewer larger agricultural properties are available, and the 67 acres here (or —80 acres total if joined with the farmland portion of the Mahan property) provides more ag options for farmers. Jefferson LandWorks partners and the Washington Farmland Trust could play a role in linking the Schmidt Farm opportunity with a potential farmer/buyer if the Mahans are unable to purchase the property. 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. The JCCD and landowner restoration partnership on Jakeway Creek as described above was focused on improving water quality, watershed function and wildlife habitat. At the time that the restoration took place the best management practices for animal husbandry was for controlled access for creek watering. These are now several other watering options that future landowners can explore to keep 11 2021 CF Program Application DRAFT htip://www.co.jefferson.wa.us/560/Conservation-Futures-Program livestock out of the Creek, with technical assistance from the JCCD on current best management practices. 10 c. Describe how the acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. The acquisition of the conservation easement and REPI easement on the entire farm will provide protection against any subdivision of the property and limit the number of residences to the current one along with ADUs allowed under county code within a designated building envelope. Additionally, the conservation easement will include impervious surface limitations designed to preserve the prime soils and agricultural viability. The continuation of BMPs on the farm and continued protection and enhancement of the buffers on Jakeway Creek will preserve soil, water and habitat quality. Continued agricultural use will also reduce the likelihood of increased impermeable surfaces that often accompany development —surfaces that increase runoff and reduce groundwater recharge. All of this will enhance the watershed function and contribute to the larger effort to connect the headwaters of Jakeway Creek to Quilcene Bay. Continued responsible farming will help control runoff that could erode soils and add sediment to the Creek and be detrimental to 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. NA 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. NA 11 c. Describe how the property acquisition or proposed easement will likely preserve and/or enhance soil, water quality, watershed function and wildlife habitat. NA 12 a. Describe how the proposed acquisition benefits primarily a _local area X broad county area including the area served, the nature of the benefit, the jurisdictions involved, and the populations served. Preservation of the Schmidt Farm through purchase of a conservation easement and REPI easement benefits our community on many levels. The scenic Schmidt Farm property is visually accessible from East Quilcene and Center Roads and is a missing link in the larger efforts spearheaded by local agencies and organizations to protect important agricultural lands in this Headwaters to Bay project. Preservation is the first significant step, as this is one of the largest agricultural parcels containing prime soils in the Quilcene area. Once protected and acquired by the next farmer, the project partners will then have an opportunity to help the next landowners operate successful and viable businesses that will contribute to the local economy and secure food systems. Partners have worked on significant agricultural landscapes in the Center and Beaver Valleys as well as with farms on the Highway 101 corridor like the Boulton, Kawamoto, Midori and Serendipity Farms. The Jefferson LandWorks Collaborative is a model of land conservation and rural economic development, with the threefold goal: 1) to ensure that there is affordable prime agricultural land in large enough tracts that the farmer can be profitable and provide food security to our communities, 2), to ensure that farmers have access to the business training, capital, and know-how to be profitable, and 3) to ensure that there are both the 12 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program consumer demand and robust markets to accommodate the farmers' needs. Jefferson County is fortunate in having farmers whose average age is below that of the national average, which bodes well for our future, and this could be tied to efforts like conservation to keep farmland relatively affordable. Quilcene Bay is recognized nationally as a critical estuary for commercial shellfish production, and good water quality from the watersheds above is paramount for this industry. Salmonid populations also benefit from preservation of pastureland (and potential restoration) of Jakeway Creek, and are critical species of concern in the Hood Canal and Puget Sound regions. The REPI (Readiness and Environmental Protection Integration) program is a national land -conservation funding source available through the Department of Defense. The Hood Canal region is of great strategic importance to the Department of Defense. As such, the Navy works with conservation partners to identify areas with common interest for preservation of working forests, farmland, and high -value wildlife habitat. The Schmidt Farm project represents an opportunity for the Navy and the Land Trust to work with willing landowners to conserve land, thus protecting and buffering military installations and operating areas from development. 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. Yes - the project is located at the top of the Bolton Peninsula. 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.' The Schmidt Farm represents an excellent opportunity to educate the public on a variety of sustainable land management practices in the Quilcene Bay watershed. The owners may be willing to allow access for educational programs, supervised tours, field science surveys, and research. The conservation easement reserves the right for the land trust to conduct such educational and scientific research with landowner permission. 14. The proposed acquisition _ includes historic or culturally significant resources' and is registered with the National Register of Historic Places, or an equivalent program. X is recognized locally has having historic or cultural resources. X is adjacent to and provides a buffer for a historic or cultural site. If affirmative in any of the above, please describe below, and cite or provide documentation of the historical or cultural resources ' 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 13 2021 CF Program Application DRAFT http://www.co.jefferson.wa.us/560/Conservation-Futures-Program According to Jamestown S'Klallam Tribal staff, the Schmidt Farm has not been archaeologically surveyed by the local tribes, but its' location is referenced on an 1856 map prepared by a member of Isaac Stevens treaty party as the site of a S'Klallam Indian village. We also learned that there is a recognized cultural site nearby that dates back 8,000- 10,000 years. The cultural site is located along a travel route in the Donovan Creek watershed as it moves from the Center Road area down to the head of Quilcene Bay. The tribal historian indicated that the Schmidt Farm was very likely included in that travel route. O & M Stand Alone Projects 15. Applications for Operation and Maintenance funding only: Please describe in detail, the reason O&M funds are needed, proposed O&M activities, and how they protect resources cited in the original acquisition project. Attach additional information such as up-to-date stewardship plan, maps, field reports, work plan, budget, timeline, etc., to support the application, if appropriate. O & M projects must address a compelling, immediate need. Verification 16. Sponsors of applications that are approved for funding by the Board of County Commissioners are required to submit a brief progress report by October 30 every year for three years after the award is approved, or three years after the acquisition funds are disbursed to the applicant, whichever is later. The progress report must address any changes in the project focus or purpose, progress in obtaining matching funding, and stewardship and maintenance. Sponsors receiving O&M funds will also submit an annual report for each year that O&M funds are expended. The Committee will use the information to develop a project "report card" that will be submitted annually to the Board of County Commissioners. If this application is approved for funding, I understand the sponsor is required to submit p5ogre. s reports for three years and for any year in which O&M funds are expended. _is Initials 3 25,' 2D ZI Date 17. If, three years after the date funding is approved by the Board of County Commissioners, the applicants have not obtained the required matching funds, the Committee may request the Board of County Commissioners to nullify their approval of funds, and may require the project to re -apply. If this application is approved for funding, I understand that we may be required to re -submit the application if the project sponsor does not obtain the necessary matching funding within three years._S S _Initials .2 2 Date 14 2021 CF Program Application DRAFT htLp://www.co. j efferson.wa.us/560/Conservation-Futures-Pro-grtm Landowner Acknowledgement Form' Proect Applicant I nformak an Appllw a Na•r = Jefferson land Truk Pro,act N nber{Nalnw. Rb#nldl Farm Cullad: ❑ Mr. Z !* First Name- S;imh Last Narne. Splirad iltla and Stmtaglr par•tnershhps fJs rig ndd"Fn 1033 LawverKe 4t Pork Townsend, YEA WISP E-tilaJ A drB€S :mpartth@sowland.org Pe " Inifarr "cn AddrrzarLo:--jisr:21%.kaberrayREl r$QUINCIP-MWA90:76 Co.lm-Rwcel NwvrlaeF 7011 20016 70US3003 Luliclow er Infortttadonl Lar'dtWINr hliiim-P*AA. end Mary Ssllmkilt lleprrserft2bw. ❑ Mr. ❑ MK Lirt Nara. I Y.-t N a nn p,. TW e: NPIa&rNJAedmw' P613ay 440 qu,"nw, WA 9a37541449 E-Mall Address: 031dDwm -Carle} sthe cg: one,cdp-cp", 4 :,e5U9dedinenegrant applirstion being al ¢.mi tge} tq ttE ;realm Ar{I CnrSpr.a7a^ QtACe Uy the prgRCt apoiCam Z 1 ar-1 awa-P thatV* project ts2lrl voposed In the gfe!t ap_:.icat'cn i= crl my prtrre'ty. 3 I° a Qrarlr •S.y,lrce,ytully jwwderr. 1 pill bF C:cmr;laktcl Arid eskertl;c E.ggage In ntvjt�@Qatiara. 4 -Mes,qTlabrm -crt rglirreront aithcn stion 131 prwlert Tplemamala a. 3 H I ale a(flllaW Wit -. the prv.jt;,n aPpi cart„ I will evrn dedSatxNs rnrdc xg'ht: pra)ect appicort to xnri cn or eurehse my pope" v fi. -^ere ��;(drda ire; terla^ktr ar the pvperty. Terarrrs diar7.3Ced es a mu,dl oaf t5is p`ajmzt may oa-gYgihi4 Wr*r,;Ca4'gn a5aslanee. e, r Wa7r z erllsuvv i9na irx , Date - d 7S 0 z p Schmidt Farm Jefferson Land Trust Nature Preserves Jefferson Land Trust Conservation Easements Creeks Jeff. Co Tax Parcels • 0 250 500 1,000 Schmidt Farm Feet For informational purposes only. All Project Boundary data represented are from varying . sources and approximate. N Map created in March, 2021 SCHMIDT FARM CONSERVATION FUTURES FUNDS ILLUSTRATIONS - 2021 Silo with view of Quilcene Bay to the south Lk Schmidt pastures with Jakeway Creek buffer, facing NNE Gates to partition 5 different pastures for seasonal grazing Western pasture, mature conifer riparian buffer, facing south toward Olympics. Ilk 1 4� ►aL1, A I D µ 4 'kap,afly?c k r5 r i s. INTERNAL REVENUE SERVICE DISTRICT DIRECTOR 2 CUPANIA CIRCLE•- MONTEREY PARK, CA 91755-7406 Date: MAY 0 3 1994 JEFFERSON LANs TRUST CIO DOUG MASON PRES PO BOX 1610 PORT TOWNSEND, WA 98368-0109 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 91-1465078 Case Number: 954109002 Contact Person: TYRONE THOMAS Contact Telephone Number: (213) 894-2289 Our Fetter Dated: May 08, 1990 Addendum Applies: No This modifies our letter of the above date in which we stated that you would he treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a)(1) and 2.70(b)(1)(A)(vi). Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a)(1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue service had given notice that you would no longer be classified as a section 509(a)(1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shownabove. sincerely yours, } / r4s ter Richard R. Orosco District Director Letter 1050 (DO/CG) JEFFERSON LAND TRUST 2021 OPERATING BUDGET INCOME Restricted Funds Federal, State & County Grants 195,600 Foundation Grants 85,000 Donor Restricted 130,000 Investment 28,000 Operations Income Annual Contributions 300,000 Special Events 200,000 Fee for Service 125,000 Investment Income 3,000 Other/Release from Restriction 310,030 Foundation Grants/Unrestricted 20,000 Total Income 1,376,630 EXPENSE Direct Program 82,850 Acquisition & Conveyance - Land/Easement Holding 77,950 Professional Services 496,950 General & Administrative 887,916 Total Expense 1,375,964 Net Income 666 "ritot._ l T t�A D TRUST Jefferson Land Trust Board of Directors Brian Rogers Board President Chancellor of University of Alaska Fairbanks, retired System's Finance Vice President, retired Nan Evans Vice President City of Port Townsend Planning Commission The Nature Conservancy, retired Marcia Schwendiman Treasurer Health policy analyst, retired Sherry Moller Secretary Plan Manager Washington FAIR Plan Robin Fitch, PhD Environmental Scientist CAPT, US Navy reserve, retired US Navy civilian, retired Rick York Botanist and Biologist, retired 2021 Barry Mitzman Reporter, retired Strategic communications director, retired Craig Britton General Manager for Midpeninsula Regional Open Space District, retired Historic Preservation Committee, City of Port Townsend Lucas Hart Executive Director Northwest Straits Commission Kellie Henwood Regional Small Farms Coordinator Washington State University Extension Tom Sanford Executive Director North Olympic Land Trust Marilyn Showalter Attorney, retired Brent Butler Age Friendly Seattle Program Manager, City of Seattle Former County Planner, Jefferson County JEFFERSON LAND TRUST ORGANIZATIONAL CHART ➢ BOARD OF DIRECTORS ➢ RICHARD TUCKER - Executive Director ➢ SARAH SPAETH- Director of Conservation and Strategic Partnerships ➢ ERIK KINGFISHER- Stewardship Director CARRIE CLENDANIEL- Preserve Manager VACANT — Stewardship Assistant ➢ KATE GODMAN- Director of Philanthropy SARAH ZABLOCKI-AXLING- Development Manager KRISTEN GERRISH — Development & Administrative Assistant REBEKAH KORENOWSKY- Education and Outreach Manager STEPHANIE WIEGAND- Communications Manager VACANT — Communications Coordinator ➢ PAULA McNEES- Finance Manager ➢ BLAISE SULLIVAN- Conservation & Stewardship Coordinator (Matrixed to Conservation and Stewardship) JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Financial Statements For the Years Ended December 31, 2019 and 2018 TABLE OF CONTENTS IndependentAuditor's Report ...........................................................................................................1 Consolidated Financial Statements: Consolidated Statement of Financial Position.......................................................................3 Consolidated Statement of Activities and Changes in Net Assets-2019...............................5 Consolidated Statement of Activities and Changes in Net Assets-2018...............................6 Consolidated Statement of Functional Expenses-2019.........................................................7 Consolidated Statement of Functional Expenses-2018.................. :...................................... 8 Consolidated Statement of Cash Flows.................................................................................9 Notes to the Consolidated Financial Statements....................................................................1 I Aiken angers, Inc PS 324 So. Main Street, Unit A, Montesano, WA 98563 CERTIFIED PUBLIC ACCOUNTANTS Telephone (360) 533-3370 Fax (360) 532-7123 & CONSULTANTS alkenandsandersoalken-sanders.com Independent Auditor's Re mort To the Board of Directors Jefferson Land Trust & Subsidiary Port Townsend, WA Report on the Financial Statements We have audited the accompanying consolidated financial statements of Jefferson Land Trust and Subsidiary (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31, 2019 and 2018, and the related consolidated statements of activities and changes in net assets, functional expenses, and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the JLT as of December 31, 20I9 and 2018, and changes in net assets and its cash flows for the years- then ended in accordance with accounting principles generally accepted in the United States of America. MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Aiken & Sanders, Inc., PS Certified Public Accountants & Consultants August 15, 2020 Montesano, WA 2 a Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2019 and December 31, 2018 Assets 2019 2018 Current Assets: Cash and cash equivalents $ 652,279 $ 347,504 Accounts receivable 43,746 10,497 Current pledges receivable 128,500 31,358 Note receivable -current portion 53148 4,827 Prepaid expenses 5,425 5,619 Total Current Assets 835,098 399,805 Land and Conservation Easements: Habitat land 5,380,364 5,194,681 Working land 97,728 97,728 Open space land 332,761 332,761 Conservation easements 63 60 Total Land and Conservation Easements 5,810,916 5,625,230 Fixed Assets: Furniture, equipment, and improvements 87,009 87,009 Less: Accumulated depreciation (60,668) (52,562) Fixed assets, net _ 26,341 34,447 Other Assets: Long term pledges receivable } Long term note receivable Land hold fee -net Investments ' Total Other Assets Total Assets 15,422 44,159 33,332 962,669 1,055,582 25,352 49,308 41,655 737,164 853,479 $ 7,727,937 $ 6,912,961 The accompanying notes are an integral part of these financial statements 3 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2019 and December 31, 2018 Liabilities & Net Assets 2019 2018 Current Liabilities: Accounts payable Accrued liabilities and deferred revenue Total Current Liabilities Long -Term Liabilities: Note payable Total Liabilities Net Assets: Without donor restrictions Undesignated Board designated With donor restrictions Total Net Assets Total Liabilities & Net Assets $ 9,849 $ 2,785 47,916 51,362 57,765 54,147 175,000 175,000 232,765 229,147 271,776 256,123 5,902,649 5,449,446 6,174,425 5,705,569 1,320,747 978,245 7,495,172 6,683,814 $ 7,727,937 $ 6,912,961 The accompanying notes are an integral part of thesefinancial statements 4 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2019 Support and Revenues: Gifts and contributions Fair value of easement acquisitions Grants and contracts Special events income, net of expenses of $27,297 Net investment return Net assets released from restriction Total Support and Revenue Expenses: Program services Management and general Fundraising Total Expenses Change in Net Assets Net Assets, Beginning of Year Net Assets, End of Year Without Donor With Donor Total Restrictions Restrictions 2019 $ 950,094 $ 432,938 $ 1,383,032 490,000 - 490,000 3,740,199 - 3,740,199 29,724 - 29,724 130,665 1,132 131,797 91,568 (91,568) - 5,432,250 342,502 5,774,752 4,551,652 - 4,551,652 190,391 - 190,391 221,351 - 221,351 _ 4,963,394 - 4,963,394 468,856 342,502 811,358 5,705,569 978,245 6,683,814 $ 6,174,425 $ 1,320,747 $ 7,495,172 The accompanying notes are an integral part of these financial statements 5 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2018 Without Donor With Donor Total Restrictions Restrictions 2018 Support and Revenues: Gifts and contributions $ 900,676 $ 185,556 $ 1,086,232 Fair value of easement acquisitions 339,000 - 339,000 Grants and contracts 2,129,618 - 2,129,618 Special events income, net of expenses of $22,021 101,525 - 101,525 Net investment return 804 1,161 1,965 Net assets released from restriction _ 153,325 (153,325) - Total Support and Revenue 3,624,948 _ 33,392 3,658,340 Expenses: Program services 1,103,736 - 1,103,736 Management and general 186,857 - 186,857 Fundraising 164,588 - 164,588 Total Expenses 1,455,181 - 1,455,181 Change in Net Assets 2,169,767 33,392 2,203,159 Net Assets, Beginning of Year 3,535,802 944,853 4,480,655 Net Assets, End of Year $ 5,705,569 $ 978,245 $ 6,683,814 The accompanying notes are an integral part of these financial statements 6 U Ri O C a\ w � U L -1 0 z a cl 0 w U El �O � tt t� �O .-• [� �O �D N [� O O� cn t� �O DD to DD 00 � 'cr � �/'� M N 00 N �O O O l0 l � M •--� �!l N O� M 00 M F+ N 6g � 00 00 V1 Ln v1 to \D .--� O C'1 M �!1 01 tt 00 O M 00 t� d- t n M tt M N r-+ M 69 64 tt •—� M M ON 'COD D .-. tt •—� a, M O N 00 d O as i, U No It O � M a1 M E 0 c 00 M N -h C .0 GOS lCos V1 N N l- M V) O 00 N N - to m O I'- N'7 00 N .--' 00 M Q\ CD \O M o0 M O� O DD �O DO O V1 O� to N do M \D M 'ct lq O cr d� N 00 1p O 00 �O O v1 �o M N M 00 r- N to - O •.� N 0, ,� Ln M It a 6e C 3 0 C a� 3 N N C o U k N Q C O. O 15 0 w �i co w 3 �= c a c -o a aco n o crj Ln 0E o Cd C c a. o U ti E n �, w to CIS N U O •� Q a i NCIS cd ca G1 j t �; cd O + •' to cad y o +�' N iU co- a� d E' A. > 40E- 0E-1:5 3rq t- rn 0 C O vOi V. 00 'O as D1. p .N W N cl u -ti cl L Y U 110 ID O 00 ct M I- IZI, 00 O N vl 00 N r- a1 D1 O J- N d' l� v1 \D v1 N O *� 00 CD(ON 00 n C�1 p N �t ' I D � o0 rn c•^ d �n �n O N 00 m O O N 00 00 M 00 l'- to �p v l� j lD 00 . 6g 69 C> 000 Ln O N 01 00 d' O V1 O\ 00 1 0011 .r'-� L O M O wa � � i. � N N � O cr to p � � O 'ct '� � '' Y � M O O ,-• � to -. cr 00 d CCU 64 69 l0 N \D 00 V) Q1 O1 M M — "t N 00 O — m l- N O O M d O G►. O �D (ON cy .-• O �t 0o O [- v1 [- 00 00 O -- M If �. vi m �h 00 N N c- � oo ct Ln N N d M N d •--� 6£ " .N-. -� C 6 Ct 0 `ti c o � R ti ts w •V a.i Cd O Z-S 0 w Cd i. cn w v� N � w tl C]. .- O 'y C Ca O 0 En .� 0 b i W o i O O y y cl cd V 0 Cd , � U 0 0 cFO V cl CIOa.W>a.aa�wQSaoE o r-0)f3A 00 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2019 and December 31, 2018 Cash flows from operating activities: Cash received from grantors, donors and customers Cash paid to suppliers and employees Cash received from interest Net cash provided (used) by operating activities Cash flows from investing activities: Cash paid for investments Cash received from investments Proceeds from notes receivable Cash paid for land Net cash provided (used) by investing activities Cash flows from financing activities: Cash received from loans Net cash provided (used) by financing activities Net increase (decrease) in cash & cash equivalents Cash & cash equivalents at beginning of year 2019 2018 $ 4,881,091 $ 3,105,763 (4,475,617) (1,107,752) 4,975 6,253 410,449 2,004,264 (125,643) 15,826 4,828 685 (105,674) 304,775 347,504 (58,245) 117,619 4,362 (2,195,136) 2,131,400) 175,000 175,000 47,864 299,640 Cash & cash equivalents at end of year $ 652,279 $ 347,504 The accompanying notes are an integral part of these financial statements 9 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2019 and December 31, 2018 Reconciliation of increase (decrease) in net assets to net cash provided (used) by operating activities: Increase (decrease) in net assets: Adjustments: Depreciation and amortization Land hold fee amortization (adjustment) Realized and unrealized losses (gains) on investments Donated land Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in pledges receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Increase (decrease) in accrued expenses and deferred revenue Net cash provided (used) by operating activities 2019 2018 $ 811,358 $ 2,203,159 8,380 8,380 8,331 8,331 (115,971) 5,485 (185,000) (292,000) (33,249) (87,212) 194 7,064 (3,446) $ 410,449 The accompanying notes are an integral part of these financial statements 10 5,228 63,619 3,560 (9,890) 8,392 $ 2,004,264 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization -- Jefferson Land Trust (The Land Trust) is a Washington not -for -profit corporation formed on April 7, 1989. The Land Trust's purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington State. The Land Trust has been accredited by the national Land Trust Alliance since August 5, 2009. On September 5, 2007, JLT Resources, LLC was formed with the Land Trust as its only member. JLT Resources, LLC was formed for the purpose of purchasing and holding land for conservation purposes. Principles of Consolidation- - These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLC (collectively, "JLT"). Inter -organization balances and transactions have been eliminated in consolidation. Basis of accounting -- The consolidated financial statements of JLT have been prepared on the accrual basis of accounting. Basis of resentati JLT follows accounting prescribed by the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) 958 Not -for Profit Entities. Under ASC 958, JLT 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 JLT is restricted by donor imposed stipulations that may expire with the passage of time or can be fulfilled or otherwise removed by actions of JLT. Without Donor Restrictions: Net assets that are not restricted by donor stipulation. Gifts of goods and equipment are reported as without donor restrictions unless explicit donor stipulations how the donated assets must be used. specify Pro ierty and Fixed Assets -- Improvements, furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference, less any amount realized from disposition, is reflected in earnings. Maintenance and repairs are charged to expense as incurred. Costs of significant improvements are capitalized. JLT provides for depreciation using the straight-line method over the estimated useful lives of the assets of five to ten years. JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value, with fair values generally based on independent professional appraisals. These assets fall into two primary categories: 11 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 Conservation Lands- Real property with significant ecological value for habitat, open space, or working lands. Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council -Certified, managed forest. Conservation Easements- Voluntary legal agreements between a landowner and a land trust or government agency to permanently protect the identified natural features and conservation values of the property. These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation Purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction in net assets to record the value of the public's benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes. Portions of two easements with a value of $490,000 were donated to JLT during 2019. One easement with a value of $280,000 and a portion of an easement with a value of $59,000 were donated to JLT during 2018. Accordingly, $490,000 and $339,000 of contribution revenue and $490,000 and $338,999 of related write down expense have been reported on the consolidated statements of activities for the years ended December 31, 2019 and 2018, respectively. Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Expense Allocation -- The costs of providing various programs and other activities have been summarized on a functional basis in the consolidated statement of functional expense. Program expenses represent expenses incurred to fulfill JLT's exempt purposes. Management and general expenses support that exempt purpose while fundraising expenses are incurred to raise resources to carry out program activities. Expenses are recorded, when appropriate, to the function receiving direct benefit. When expenses benefit more than one function, an allocation is made based on relative benefits provided to each function. Cash and Cash Eq uivalents-- For reporting purposes, JLT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash and cash equivalents. Concentrations-- JLT. maintains its cash in bank deposit accounts with three financial institutions. JLT's cash balances may, at times, exceed federally insured limits. At December 31, 2019, two donor's pledges represented approximately 83% of pledges receivable. 12 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 At December 31, 2018, three donor's pledge represented approximately 67% of pledges receivable. Investments_ Investments in marketable securities with readily determinable fair values are valued at their fair values in the consolidated statement of financial position. Certificates of deposit are carried at cost plus accrued interest in the consolidated statement of financial position. Unrealized gains and losses are included in the change in net assts. Grants and Contracts— JLT receives grants and contracts from federal, state, and local agencies, as well as from private organizations, to be used for specific programs or land purchases. The excess of grants receivable over reimbursable expenditures to -date is recorded as deferred revenue. Federal Income Taxes— The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3).Contributions to JLT are deductible as allowed under IRC Section 170(b)(I)(A)(vi). During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. Contributions_ Contributions are recognized when received or when a donor makes an unconditional promise to give to JLT. Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if the restrictions expire in the 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. Unconditional promises to give (pledges receivable) are recognized as revenues in the period the pledge is received. Long term pledges (collection expected in greater than one year) are discounted to the net present value of future cash flows. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promise becomes unconditional. Subseq uent Events— JLT has evaluated subsequent events through August 15, 2020, the date on which the consolidated financial statements were available to be issued. B. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS: JLT, although it expects to receive current support to fund operations for 2020 and later years, has $135,556 and $62,242 of financial assets available within one year of the statement of financial position dates on December 31, 20I9 and 2018, respectively, to meet cash needs for general operating expenditures. JLT also has $351,461 and $116,216, of board designated assets as of December 31, 2019 and 2018, respectively, that can be reallocated for general expenditures if needed. Financial assets available within one year consist of the following: 13 I Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 2019 2018 Financial assets at year end $ 1,851,923 $ 1,206,010 Donor restricted to purpose (1,305,325) (952,892) Long term (59,581) (74,660) Board designations (351,461) (116,216) Financial assets available to meet cash needs within one year $ 1353556 $ 62,242 C. NET ASSETS COMPOSITION: L JLT's net assets with donor restrictions consisted of the following at December 31, 2019 and 2018: Purpose Restriction: 2019 2018 For stewardship of Bullis Forest Preserve $ 64,805 $ 76,126 Fite 47,929 54,999 Campaign Readiness Fund 118,578 - Stewardship funding 699,311 635,711 Cross Foundation 100,000 - Gateway/Shorts Forest Campaign 29,189 60,463 Education Outreach Fund - 5,290 Other program restrictions 36,221 22,601 . Time Restriction: 1 ,096,033 855,190 Outstanding pledges 157,237 56,710 - Permanent Restriction Endowment Fund 67,477 66,345 Total Net Assets With Donor Restrictions $ 1,320,747 $ 978,245 14 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 Net assets without donor restrictions consisted of the following at December 31, 2019 and 2018: Designated: Quimper Wildlife Corridor Chimacum Creek Duckabush Riparian Forest Donovan Creek Duckabush Wetlands & Oxbow Bulis Forest Preserve Upper Snow Creek Forest Snow Creek Uncas Preserve Chimacum Commons Snow Creek Estuary Silver Reach Gateway Kilham Corner Fite & Fissler Valley View Discovery Bay Longmire Stewardship Fund CP Operations Reserve Karen Mckee Board Fund Operations Reserve Conservation easements Total Designated Undesignated Total Net Assets Without Donor Restrictions: 2019 2018 $ 473,103 $ 432,420 388,347 388,347 492,800 492,800 270,000 270,000 530,000 530,000 125,240 125,240 340,000 340,000 260,000 260,000 90,850 90,850 86,000 86,000 125,000 125,000 85,000 85,000 71,202 38,930 182,226 182,226 1,710,000 1,710,000 176,358 176,358 145,000 _ 124,307 59,245 5,522 9,622 124,283 _ 97,348 47,348 63 60 5,902,649 5,449,446 271,776 256,123 S 6,174,425 $ 5,705,569 Net assets of $66,705 and $75,268, respectively, were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of $24,863 and $78,057, respectively, were released due to the expiration of time restrictions for the years ended December 31, 2019 and 2018. D. PROMISSORY NOTE: JLT is subject to a promissory note dated December 27, 2018, in connection with the acquisition of the Mraz Discovery Bay parcel. The note is secured by the acquired land. The original note balance of $175,000 bears interest at a rate of 2% per year. The note requires a balloon payment of principal plus accrued interest on June 28, 2021. 15 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 E. ENDOWMENTS: The JLT endowment consists of one fund established to support general operations. As required by U.S. GAAP, net asset associated with endowment funds are classified and reported based on the e imposed restrictions. xistence or absence of donor - Nature of Endowments and Interpretation of Relevant Laws- JLT's Board of Directors has reviewed the Washington State Prudent Management of Institutional Funds Act (PMIFA) and, having considered its rights and obligations thereunder, has determined that it is desirable to preserve, on a long-term basis, the fair value of the original gift as of the gift date of the donor -restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this determination, JLT classifies as nets assets with donor restrictions (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor -restricted endowment fund that is not classified in net assets with permanent donor restrictions is classified as net assets with donor restrictions until those amounts are appropriated for expenditure by JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However, JLT has informed donors of its spending policy which states that no distributions will be made during the first five years of the fund's existence or until it reaches a threshold balance of $400,000. Since these milestones have not yet been reached, JLT adds all amounts earned to the permanently restricted balance. In accordance with PMIFA, JLT considers the following factors in making a determination to appropriate or accumulate donor -restricted endowment funds, (1) the duration and preservation of the various funds, (2) the purposes of the donor -restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of JLT, and (7) JLT's investment policies. Endowment net assets, all permanently restricted, totaled $67,477 and $66,345, respectively, at December 31, 2019 and 2018. Changes in endowment net assets for the year ended December 31, 2019 are as follows: Endowment Net Assets 1/1/2019 Contributions Investment Income Net Appreciation (Depreciation) Endowment Net Assets 12/31/19 Temporary Donor Restrictions Permanent Donor Restrictions Total 66,345 $ 66,345 1,132 1,132 $ - $ 67,477 $ 67,477 16 M L I Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 Changes in endowment net assets for the year ended December 31, 2018 are as follows: Endowment Net Assets 1/1/2018 Contributions Investment Income Net Appreciation (Depreciation) Endowment Net Assets 12/31/18 Temporary Donor Restrictions Permanent Donor Restrictions Total 65,184 65,184 $ $ 66,345 $ 66,345 Funds with Deficiencies- From time to time, the fair value of assets associated with individual donor -restricted endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual duration. In accordance with U.S. GAAP, deficiencies of this nature are reported in net assets with donor restrictions. There were no such deficiencies as of December 31, 2019 or 2018. Return Objectives and Risk Parameters- JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor -restricted funds that JLT must hold in perpetuity or for donor -specified periods as well as board -designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index made up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time. Strategies Employed for Achieving Objectives- To satisfy its long-term rate -of -return objective, 'JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond funds/ETF's, equity mutual funds, equity ETF's, and unconstrained bond funds. Spending Policy and How the Investment Objectives Relate to the Spending Policy- JLT's spending policy intends that no distributions shall be made from the Operations Endowment Fund for the first five years of its existence or until it reaches a threshold balance of $400,000, whichever shall first occur. After a five-year period which ended in December of 2014, or after achieving the $400,000 threshold, distributions shall be made on an annual basis as determined by the Board. Regular disbursements should be limited to a maximum of 5% of the value of the portfolio at the beginning of each fiscal year, or one-half of the income generated by the fund for the most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the invasion of the original amounts donated. 17 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 F. ACCOUNTS RECEIVABLE: Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after J management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Historically, bad debts have been immaterial. During 2019 and 2018, there were bad debts of $0 and $0, respectively. As of December 31, 2019, management estimated that all accounts receivable were collectible. JLT had no material amounts past due at December 31, 2019. G. PLEDGES RECEIVABLE: JLT received promises to give from a number of donors in 2019 and in years prior to 2019. JLT has provided an allowance for uncollectible amounts based on its assessment of the current status of individual pledges and has discounted pledges to current value using a rate of .15%. Pledges receivable at December 31, 2019 are to be received as follows: Less than one year Two to five years Thereafter Less discount to present value Less allowance for uncollectible 128,500 21,951 150,451 (329) (6,200) $ 143,922 JLT has implemented a new development strategy that will result in a significant reduction of pledge receivables over the next 5 years. This planned reduction is in response to several changes in JLT's constituency — an increase in foundation grants, an increase in an operating reserve that will provide emergency working cash equivalent to 6 months of operational expenses, and a desire by our donors to not request c relatively inflexible. ommitments that are H. NOTE RECEIVABLE: On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. A promissory noted was received in exchange. The promissory note is for the amount of $93,750 and is to be paid in monthly installments of approximately $600. The note matures on January 15, 2028 with an annual interest rate of 5%. Future expected amounts to be received at December 31, 2019 are as follows: 18 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 2020 5,148 2021 5,411 2022 5,688 2023 5,980 2024 6,285 Thereafter 20,795 $ 49,307 1. FURNITURE E )UIPMENT, AND IMPROVEMENTS: Furniture, Equipment, and Improvements consist of the following at December 31, 2019 and 2018: Furniture & Equipment, and Software 2019 2018 Accumulated Depreciation and Amortization $ 57,157 $ 57,157 (45,742) (40,621) 11,415 _ 16,536 Leasehold Improvements Accumulated Depreciation Fixed Assets -Net 29,852 (I4,926) 14,926 $ 26,341 29,852 (11,941) 17,911 $ 34,447 Accumulated Depreciation and Amortization was $60,668 and $52,562 at December 31, 2019 and 2018, respectively. w J. ECONOMIC DEPENDENCY: For 2019 and 2018, grant funding was primarily provided by the State of Washington Recreation and Conservation Office, State of Washington Department of Commerce, and Jefferson County. A reduction in this level of support, if it were to occur, could have a significant impact on JLT's operations. K. RETIREMENT PLAN: JLT maintains a Simplified Employee Pension — Individual Retirement Accounts Contribution Benefit Plan ("the Plan'). Eligible employees may join the Plan after one year of service. There were employer contributions of $12,372 and $13,166, respectively, for 2019 or 2018. 19 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 L. LAND AND CONSERVATION EASEMENTS: Land and conservation easements at December 31 are summarized as follows: Quimper Wildlife Corridor Chimacum Creek Duckabush Riparian Forest Donovan Creek Duckabush Wetlands & Oxbow Bulis Forest Preserve Upper Snow Creek Forest Snow Creek Uncas Preserve Chimacum Commons Snow Creek Estuary Silver Reach Gateway Kilham Corner Valley View Discovery Bay Fissler Longmire Conservation easements Total Unrestricted Net Assets M. LEASE AGREEMENTS: 2019 476,101 385,348 492,800 205,000 530,000 125,240 340,000 325,000 90,850 86,000 125,000 85,000 38,930 2,002,000 283,583 75,000 145,000 63 $ 5,810,916 2018 435,418 8 385,348 492,800 205,000 530,000 125,240 340,000 325,000 90,850 86,000 125,000 85,000 38,930 2,002,000 283,583 75,000 $ 5,625,230 On June 21, 2012, JLT entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease expired in June of 2014 and is now on a month to month basis. The agreement calls for monthly payments of $1,563 plus utilities. JLT also rents a storage unit on a month to month basis. Rent expense totaled $26,221 and $25,099, for the years ended December 31, 2019 and 2018, respectively. N. INCOME TAX & UNCERTAIN TAX POSITIONS: Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) are tax exempt non-profit organizations under the Internal Revenue Code Section 501(c)(3) and are not classified as a private foundation. Accordingly, the financial statements do not include any provision for income taxes. JLT files income tax returns in the U.S. federal jurisdiction. The Trust is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2016. Currently, there is no examination or pending examination with the Internal Revenue Service (IRS) or any other state or federal taxing authorities. 20 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1, 2009. As of December 31, 2019, there are no tax positions for which the deductibility is certain but for which there is uncertainty regarding the timing of such deductibility. O. INVESTMENTS AND FAIR VALUE MEASUREMENTS: JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 Measurements) and the lowest priority to unobservable inputs (Level 3 Measurements). The three levels of the fair value hierarchy under ASC 958 are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Trust has the ability to access. Level 2: Inputs to valuation methodology include: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets or liabilities in inactive markets. Inputs other than quoted prices that are observable for the asset or liability. Inputs that are principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2019. Stocks: Valued at quoted market prices in active markets for identical assets. Mutual Funds: Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by the JLT at year end. Certificates of Deposit: Valued at original investment plus received and accrued interest. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. 21 Jefferson Land Trust and Subsidiary N 0 Notes to Consolidated Financial Statements December 31, 2019 and 2018 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31, 2019- Assets at Fair Value as of December 31, 2019 Level Level Level Total Mutual funds $ 671,978 $ _ $ - $ 671,978 Total Assets at Fair Value: $ 671,978 $ _ $ - $ 571,978 Certificates of deposit, held at cost plus accrued interest 290,691 _ Total Investments $ 962,669 The following table sets forth by level, within the fair value hierarchy, JLT's assets at fair value as of December 31, 2018: Assets at Fair Value as of December 31, 2018 Level Level Level Total Mutual funds $ 546,529 $ - $ - $ 5461529 Total Assets at Fair Value: $ 546,529 $ $ - $ 546,529' Certificates of deposit, held at cost plus accrued interest 190,635 Total Investments $ 737,164 Investment return for the years ended December 31 consisted of the following: 2019 2018 Interest & dividend income $ 15,826 $ 6,253 Realized/unrealized (loss) gain 115,971 (4,288) Total $ 131,797 $ 1965, 22 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2019 and 2018 P. LAND PURCHASE AND HOLD FEE: JLT signed a purchase and sale agreement with a third party during 2015 for the purchase of approximately 850 acres of forest land in Jefferson County. The terms of the agreement, dated March 17, 2015, required JLT to purchase the property for an amount not to exceed the appraised fair market value of the property. •The terms of the agreement required the payment of a $100,000 non-refundable hold fee to the third parry to allow time for the purchase process to be completed and for JLT to raise the necessary funding to complete the purchase. The hold fee agreement was to expire on March 17, 2019. During 2016, JLT signed an amended agreement that resulted in the refund of $25,000 of the $100,000 hold fee and extended the agreement to nine year from the original five years, now expiring in 2023. JLT adjusted amortization of the hold fee to the new life of the agreement which resulted in an increase to the hold fee asset of $8,331 in 2016. Amortization expense of $8,331 was recognized during 2019 and 2018. 23 Jefferson Land Trust CONSERVATION FUTURES 2021 RESOLUTION January 19, 2021 WHEREAS, Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures Funding application, and Conservation Futures Funding Application process requires that Jefferson Land Trust prioritize its projects, AND WHEREAS, Jefferson Land Trust has been working since 1995 in partnership with Jefferson County, the City of Port Townsend, Washington Department of Natural Resources, the community and the U.S. Fish and Wildlife Service to acquire land lot by lot to preserve a 3.5-mile greenbelt and natural storm - water drainage -way called the Quimper Wildlife Corridor, and WHEREAS, professional naturalists and scientists have recommended that this corridor be expanded to provide further benefit for wildlife species, especially migrating birds, and to provide additional wetland buffers and recreational access, and WHEREAS, acquisition of 7.25 acres of high -priority identified lots in the Quimper Wildlife Corridor area from willing sellers would provide such wildlife and wetland protection, and recreational access and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, as spelled out in the City -adopted Quimper Wildlife Corridor Management Plan, Resolution, AND WHEREAS, Jefferson Land Trust has been working since 2006 in partnership with Jefferson LandWorks Collaborative whose mission is to keep the farms and forests of Jefferson County, Washington, working, productive and profitable, and WHEREAS, the historic Hannan Farm is indicated as priority agricultural and habitat land in several local and regional plans, and the landowner is eager to complete the project, and we have potential matching funds from Washington State WWRP Farmland Preservation grant and the US Navy through the REPI program, and WHEREAS, 115 acres of prime agricultural land on the Hannan Farm will be protected for prime agricultural soils, riparian habitat of Chimacum Creek and agriculturally zoned acreage by an agricultural conservation easement and REPI easement that will restrict future residential development and subdivision, and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, AND Jefferson Land Trust Page 1 of 2 WHEREAS, Jefferson Land Trust has been working for over a decade in partnership with Jefferson County Conservation District, the Hood Canal Salmon Enhancement Group and private landowners to preserve the watersheds of Quilcene Bay, and WHEREAS, the Schmidt Farm includes approximately 67 acres of lowland pasture of prime agricultural soils and Jakeway Creek riparian habitat and will be protected for water quality, agricultural uses and wildlife habitat in the Quilcene Bay area, and WHEREAS, the Schmidt Farm is directly adjacent to the Mahan protected property and other protected lands, and is indicated as priority forest and habitat land in several local and regional plans, and significant project funding is likely from the US Navy and the landowner is eager to complete the project, and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, AND BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its January 19, 2021 Board of Directors meeting to sponsor three applications to the Jefferson County Conservation Futures Program. The Board agreed that the highest priority is funding for acquisition of parcels in the Quimper Wildlife Corridor. The properties for sale in the corridor are high priority for protection due to the habitat and recreational qualities, and we have a significant cash and a floodplain land donation in the corridor to match the Quimper Wildlife Corridor Jefferson County Conservation Futures request. The second highest priority is funding for the acquisition of a conservation easement on the 115-acre Hannan Farm due to the prime agricultural soils, salmon habitat and other wildlife corridor habitat provided by the main fork of Chimacum Creek; open space views provide from West Valley and Egg and I Roads, landowner willingness, match from the State Farmland Preservation Program, and match from the US Navy REPI program. The Board agreed that Phase II Quilcene Headwaters to Bay is the third highest project priority for 2021 Conservation Futures funding for purchase of an easement on the —67-acre Schmidt property located on Jakeway Road at the head of Quilcene Bay, due to the opportunity to preserve the Jakeway watershed Farm and Fish conservation values, landowner willingness, available match from the US Navy REPI program and proximity to the Mahan property and other adjacent preserved lands. Signed this I-0- of March 2021. orized by Bo rd of Directors at their January 19,2021 meeting Jefferson Land Trust Jefferson Land Trust Page 2 of 2 615 Sheridan Street Port Townsend, WA 98368 www.JeffersonCountyPublicHealth.org Public Hea To: Jefferson County Board of Commissioners From: Joanne Pontrello, Chair Conservation Futures Citizen Oversight Committee Date: Originally June 15, 2021; Updated and revised August 24, 2021 Subject: Conservation Futures Citizen Oversight Committee — 2021 Funding Round Recommendations Each year, as authorized in RCW 84.34 and by the direction of the Jefferson County Board of County Commissioners, the Conservation Futures Citizen Oversight Committee (CF Committee) receives applications from the community to fund projects that will conserve open space lands within the county for future use and enjoyment by county residents. This cycle, the CF Committee received five applications for consideration, and I'm pleased to present our updated recommendations for funding. Two of the applications focus on farmland protections and three are primarily concerned with conserving wildlife habitat. With the addition in late -June of turned back funds from the Serendipity Farm project, up to $324,000 (originally $237,000) from the Conservation Futures Fund are available to award in 2021. The total request for funding is $454,500. We recommend that four of the projects be awarded, in sum, the new total amount available. After sponsors presented each project during our April 6t1i CF Committee meeting, members reviewed the written applications and site visit videos. Each person then separately scored the projects on a set of 15 questions in order to assess the merits of protecting each property for open space and its likelihood of project success. The project ranking, as determined by the scores alone, was reviewed, discussed, and confirmed at the April 27t1i meeting when all of the projects were declared worthy of funding. The top four projects scored in excess 70%. Only the Quimper Wildlife Corridor scored below that threshold but was still voted "worthy of funding". Recommended funding levels were also developed after discussion and presented to the BoCC on June 21st. At about that same time, it was learned that the Serendipity Farm project would not move forward, making an additional $87,000 available to 2021 projects. Another meeting of the CF Committee was held on July 12t1i to update its funding recommendations. The task of allocating funds was extra difficult this year given the large difference between requested funds and available funds. I wish we had been able to fund in full all of these projects, given their importance, timeline sensitivity and my respect for the organizations and individuals compiling these projects. I. Hannan Farm: Received 256.7 points out of a possible 321 points (80%). Requested $25,000; recommended funding: $25,000. 2. Camp Discovery Bay Acquisition: Received 254.8 points (79.4%). Requested $140,000; recommended funding: $140,000. 3. Big Quilcene — Moon Valley Acquisitions: Received 236.6 points (73.7%%). Requested $89,500; recommended funding: $89,500. 4. Schmidt Farm: Received 233.5 points (72.7%). Requested $100,000 (including $5,000 for O & M); recommended funding: $0. Community Health Environmental Public Health Developmental Disabilities Water Quality 360-385-9400 360-385-9444 360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487 Quimper Wildlife Corridor Addition: Requested 209 points (65.1%). Requested $100,000 (including $5,000 for O & M); recommended funding: $69,100 or remainder of funding ($69,500 is confirmed available). Thank you for your consideration of the CIF Committee's recommendations for the 2021 funding cycle. If you have questions, please contact me at pontrelloggmail.com or Tami Pokorny at tpokornykco.j e fferson .wa.us. Community Healfh Developmental Disabilities 360-385-9400 360-385-9401 (f) Always working for a safer and healthier community Environmental Public Healfh Wafer Qualify 360-385-9444 (f) 360-379-4487 �gON co Conservation F,ti,rPs Citizen Oversight Committee (CFCOC) Special Meeting by Remote Connection Draft Summary April 27, 2021 * Decisions and action items are indicated in bold font. Members Present: Phil Andrus, District 2; Mary Biskup, District 1; JD Gallant, District 3; Rob Harbour, Interest — Working Lands; Richard Jahnke, Interest — Coastal Areas; Joanne Pontrello, Chair, District 2; Ron Rempel, Interest — Wildlife Conservation Biology; Craig Schrader, Interest — Climate Change; Dave Seabrook, Vice Chair, Interest — Food Security; Lorna Smith, Interest — Ecotourism; Dave Wilkinson, District 1 Members Absent: Scott Brinton, Interest —Agriculture County Staff Present: Tami Pokorny, Public Health Rebekah Brooks, Recorder (Rebekah Brooks Contracting) Guests Present: Peter Bahls (Northwest Watershed Institute), Heidi Eisenhour (Jefferson County Commissioner) Call to Order: Chair Joanne Pontrello called the meeting to order at 2:02 PM. Welcome and Introductions III. Approval of Minutes: Dave Seabrook moved to preliminarily approve the April 6, 2021 CFCOC Meeting minutes as written; Rob Harbour seconded. The motion passed unanimously. Dave Seabrook moved to accept the January 11, 2021 CFCOC Meeting minutes; Mary Biskup seconded. The motion passed unanimously. IV. Approval of Draft of Agenda: Joanne Pontrello suggested pushing the Old Business and Subcommittee Reports to the end of the agenda. Rob Harbour moved to push the Old Business and Subcommittee Reports to the end of the agenda; Richard Jahnke seconded. The motion passed by consensus. http://www.co.'efferson.wa.us April 27, 2021 V. Guest Observer comments: Commissioner Heidi Eisenhour said she had been involved with projects for decades in the County and was interested in watching the recommendation and approval process for the Conservation Futures projects. VI. New Business A. Conflict of Interest Consideration Tami Pokorny reminded the group that the Jefferson County attorney no longer feels that it's necessary to use the Appearance of Fairness Forms, and that potential conflicts should interfere with members rating the projects as this body is advisory only. He suggested that members share any involvement they had in any projects for transparency. Rob Harbour and Mary Biskup mentioned their brief associations with the current projects and sponsors, which raised no concerns from the group. B. Review of Project Selection Process Joanne Pontrello went over the project award process. A motion would be needed for each project to determine whether it was worthy of funding. Following that, decisions would be made to decide funding allocations. C. Presentation of Composite Scores Tami Pokorny displayed the scores and ranking of each project, which were as follows: 1. Hannan Farm: 256.7 points 2. Camp Discovery Bay Acquisition: 254.8 points 3. Big Quilcene — Moon Valley Acquisitions: 236.6 points 4. Schmidt Farm: 233.5 points 5. Quimper Wildlife Corridor Addition: 209 points D. Develop Funding Recommendations JD Gallant discussed his concerns with the Big Quilcene — Moon Valley Acquisitions project. He supported the purchase of the land, but he felt that the way the project would be done could hurt Quilcene Bay and the River downriver from the hatchery. Rob Harbour clarified that the Committee would have the opportunity to participate throughout the permitting process. Phil Andrus moved that the Big Quilcene — Moon Valley Acquisitions project was worthy of funding as it scored above the 70% threshold; Ron Rempel seconded. The motion passed unanimously. Phil Andrus moved that the Camp Discovery Bay Acquisition project was worthy of funding as it scored above the 70% threshold; Mary Biskup seconded. The motion passed unanimously. Dave Seabrook asked about the guidelines for a project that the Committee might determine to be not worthy of funding if they were all above the 70% threshold. Discussion followed, and the Committee reviewed the Bylaws. The Committee reserved the right to deem a project worthy of funding regardless of where it scored on the threshold. The Committee could also decide in which order and what amount each project could be awarded funding, irrespective of ranking. Dave Seabrook moved that Hannan Farm and Schmidt Farm projects were worthy of funding because they both scored above the 70% threshold; Ron Rempel seconded. The motion passed unanimously. The Quimper Wildlife Corridor Addition scored below the 70% threshold. The Committee reviewed the scoresheet and corrected some scores that had discrepancies. Phil Andrus requested that the scoresheets be turned in earlier in the future so that the Committee could have the opportunity to review them prior to the Ranking Meeting. Mary Biskup moved that the Quimper Wildlife Corridor Addition still be considered worthy of funding; Richard Jahnke seconded. After discussion, the Committee voted with eight in favor and three opposed. The motion passed. Phil Andrus moved to fully fund Hannan Farm to the request of $25,000; JD Gallant seconds. Mary Biskup expressed concern that purely as a cattle farm, the project offered no climate change benefits. Discussion and agreement followed. The Committee recognized that the point was to preserve the land. The motion passed unanimously. David Wilkinson started the conversation about how to divide the remaining funds by stating that he would be in favor of partially funding rather than fully funding Camp Discovery Bay Acquisition. Discussion followed on the merits and problems of the next three highest ranked projects: Camp Discovery Bay Acquisition, Big Quilcene — Moon Valley Acquisitions, and Schmidt Farm, and various possible funding allocations. Phil Andrus moved to fund Camp Discovery Bay Acquisition at $122,500, and to fully fund Big Quilcene — Moon Valley Acquisition at $89,500; Lorna Smith seconded. The motion passed unanimously. VII. Old Business A. Bylaws Tami Pokorny will put the Bylaw revision on the next CFCOC meeting agenda. B. Sub -Committee Reports Rob Harbour reported that he and Tami had been working on a StoryMap of past projects to offer descriptions of the program and the projects to the public. They will continue after this funding cycle and bring an update back to the full Committee. Tami stressed the importance of photos, and asked the group to provide some high - resolution pictures of projects if they were able to do so. IX. Announcements/Administrative A. Staff Update Tami Pokorny mentioned that the sponsors were concerned that so many extensive questions were asked during the presentations. Phil Andrus requested a meeting to discuss the project questions, times of meetings, and the alignment of the score sheets with the application. The group agreed. B. Next Meeting The next meeting was scheduled for 6/1/21 from 4:00 PM to 6:00 PM. Dave Seabrook requested the attorney's comments in writing. Tami requested comments from the group for a press release about the projects that were approved for funding. X. Guest Observer Comments There were no comments. XI. Adjournment Rob Harbour moved to adjourn the meeting at 3:34 PM; Lorna Smith seconded. The meeting was adjourned by consensus. Action Items: Tami Pokorny will put the Bylaw revision on the next CFCOC meeting agenda. �gON co Conservation F,ti,rf-s Citizen Oversight Committee (CFCOC) Special Meeting by Zoom Connection O� Draft Summary �s�1Noc July 12, 2021 * Decisions and action items are indicated in bold font. Members Present: Phil Andrus, District 2; Mary Biskup, District 1; JD Gallant, District 3; Rob Harbour, Interest —Working Lands; Richard Jahnke, Interest — Coastal Areas; Joanne Pontrello, Chair, District 2; Craig Schrader, Interest — Climate Change; Dave Wilkinson, District 1 Members Absent: Scott Brinton, Interest —Agriculture; Ron Rempel, Interest— Wildlife Conservation Biology; Dave Seabrook, Vice Chair, Interest — Food Security; Lorna Smith, Interest — Ecotourism County Staff Present: Tami Pokorny, Environmental Public Health Rebekah Brooks, Recorder (Rebekah Brooks Contracting) Guests Present: Peter Bahls (Northwest Watershed Institute), Sarah Spaeth (Jefferson Land Trust [JLT]), Blaise Sullivan (JLT) Call to (briar - Chair Joanne Pontrello called the meeting to order at 4:00 PM. II. Welcome and Introductions III. Approval of Minutes: Richard Jahnke moved to preliminarily approve the April 27, 2021 CFCOC Meeting minutes as written; Rob Harbour seconded. The motion passed unanimously. The minutes from the April 6, 2021 CFCOC Meeting were accepted without comments. IV. Guest Observer comments: None V. Old Business None http://www.co.'efferson.wa.us July 12, 2021 VI. Sub Committee Reports None 1VII�0MM=. r4rI A. Serendipity Farm Project Closure and Residual Funds Tami Pokorny anticipated $86,600 additional funds would be available to reallocate due to the Serendipity Farm Project closure. She said that everyone did everything possible to try to salvage the project, but the outcome was disappointing. Sarah Spaeth reported that the landowner was not happy with the appraised or reappraised property values, and also decided they were not interested in the restrictions placed on the property, so they terminated the agreement. Expenses were accrued for the appraisal, survey work and other efforts, so JLT was seeking reimbursement from the County and State. The CFCOC reimbursed the JLT at the allowed rate. The returned funds could now be put towards one of the other projects from the 2021 cycle. B. Sponsor Supplemental Presentations Sarah Spaeth presented on the Quimper Wildlife Corridor, requesting that it be considered for the turned back funds. The Corridor is an ongoing project that has been funded for a number of years by the CFCOC, and was ranked internally by the JLT as the top priority project. Sarah said that Port Townsend residents contribute property tax to the project because it is within the City limits, and that she has heard citizens express concern that the CFCOC should fund projects inside the City limits. Phil Andrus suggested that those citizens who are concerned should give testimony directly to the Committee, where it might have more influence. Mary Biskup was in favor of funding the Quimper project because of its high value to the community. The project request was originally for $100,000. Sarah said that ideally, all of the remaining funds would be directed to this project, and the shortfall would be made up with additional money raised. Dave Wilkinson asked about the ability to raise the remaining funds, and what the viable time frame was for the project if it took more time to raise the difference. Sarah clarified that while some supplementary funds were being raised for this and other projects, the landowners are hoping to sell the Quimper property this fall, so securing additional funding was critical. Peter Bahls thanked the Committee for their participation in the process, but expressed dissatisfaction with the way the NWI projects have been funded in the past. While the NWI projects tend to rank very highly, $18,000 to $20,000 was regularly skimmed off the top of the requested amount to put toward a lower ranking project on the basis that NWI was good at securing additional funds. This year their project ranked second highest and $17,500 was skimmed off to fund projects down the list. The funds that were reduced were designated for the survey, appraisal, management and acquisition - related costs, in addition to administrative costs. He said he would really like to see this project fully funded based on the ranking criteria. Peter suggested that if the Committee really felt like the project should be scaled back, a request limit should be written in to the application guidelines or addressed by an application question about the sponsor's ability to raise additional funds. Phil asked for some clarification on project costs; Peter explained that while the acquisition amount was granted, there was no money available to actually work on the project because there were no real estate or appraisal funds provided. Rob Harbour asked about the ultimate ownership of the parcel. Most likely, NWI would make the entire purchase, although there was a possibility that the Department of Natural Resources could buy the south half as match. The purchase price was still unconfirmed, but was expected to be between $600,000 and $700,000. Dave asked about the ability of the Committee to recommend funding at a lower level than the ask. Tami confirmed that there was no legal barrier to the Committee making those recommendations. The Committee discussed their process. Phil asked Peter to put his suggestions in writing to the CFCOC so the Committee could go over these issues in more depth during their material revision process. C. Possible Additional Funding Recommendations Rob Harbour pointed out the two options to the Committee: to fully fund the NWI project first with $17,500, and direct the remaining $69,100 to the Quimper project; or to designate all of the remaining $86,600 to the Quimper project. The group discussed the two options, the merits of the two projects, and the uncertain abilities of both organizations to raise remaining funds. Phil Andrus moved to fully fund the NWI project with $17,500, and the remaining $69,100 to the Quimper Wildlife Corridor project; Mary Biskup seconded. The motion passed unanimously. Rob expressed thanks to the sponsors for their input and looked forward to a constructive review. Vill. Announcements/Administrative A. Staff Update Tami Pokorny said that Joanne Pontrello did a great job presenting the Committee's recommendations to the Board of County Commissioners. Some Committee members will need to attend the next presentation with the new recommendations. B. Next Meeting The next meeting was scheduled for 10/4/21 from 4:00 PM to 6:00 PM. It will include review of the bylaws, manual and application questions. Phil Andrus requested any ideas distributed in writing prior to the meeting. *Tami Pokorny said she did not know when the County attorney would have the bylaws reviewed, but she would keep the Committee posted. X. Guest Observer Comments None XI. Adjournment Richard Jahnke moved to adjourn the meeting at 5:18 PM; Rob Harbour seconded. The meeting was adjourned by consensus. Action Items: *Tami Pokorny said she did not know when the County attorney would have the bylaws reviewed, but she would keep the Committee posted. Puget Sound l7 fll. Conservation Futures ,.. Jefferson County, Washington & w ;N Sali>h Sea /// gg ID -de FO,. Gateway or Pt'. 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Prod—ed by 7efferaen Cerouy GIs .,,�_......_ icon c� JEFFERSON COUNTY '{ DEPARTMENT OF COMMUNITY DEVELOPMENT 621 Sheridan Street, Port Townsend, WA 983681 Web: www.co.mefferson.wa.usicommunitydevelopmen �j''► NC, Tel: 360.379.44501 Fax: 360,379.4451 1 Email: dcd@coJefferson.wa.us us SquareONE Resource Center I Building Permits & Inspections I Development Review I Long Range Planning TO: Tami Pokorny, Jefferson County Water Quality and Environmental Health FROM: Joel Peterson, Associate Planners-_. DATE: July 8, 2021 RE: 2021 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Project Applications: Summary of DCD Findings for 2021 Conservation Futures Program: Project Name Project Type 1. Big Quilcene River —Moon Valley Acquisition Acquisitions 2. Camp Discovery Creek Acquisition 3. Hannah Farm Easement 4. Schmidt Farm —Phase II of Quilcene Easement Headwaters to Bay Project The Department of Community Development (DCD) reviewed the proposed 2021 Jefferson County Conservation Futures Program Property Acquisition and/or Operations and Maintenance Projects and provides the following findings. When a local government chooses to use Conservation Futures Fund money to purchase an interest in land, it must consider and analyze whether taking land out of the 'stock' of land that can be developed leaves enough land subject to development to accommodate allocated housing and employment growth (RCW 84.34.240). From our analysis, we provide two findings to support this requirement and additional findings from the Jefferson County Comprehensive Plan. Methods: Housing Analysis: DCD reviews the estimated number of potential dwelling units that may be forgone by the Conservation Futures actions and the effect this may have on the County's ability to accommodate our projected 20-year population growth (2018-2038); and how the actions may affect the County's ability to provide employment growth in the same 20-year planning period. Note that any determination made in this exercise is only an estimate based on zoning and a map review of possible site conditions. Employment Growth Analysis: Potential impacts, resulting from the Conservation Futures program actions on Jefferson County's ability to provide for anticipated employment growth, were reviewed by observing current employment conditions in the vicinity of the project parcels, the prevalent employment sector in the area, and consideration of any other potential effects resulting from conservation action that may limit or enhance the County's ability to provide for economic development or jobs. Findings: Housing. The proposed acquisitions and easements of the 2021 Conservation Futures program would extinguish development rights, or purchase land for conservation purposes, which could preclude the opportunity for approximately 21 total theoretical single-family dwelling units and accessory dwelling units (ADUs). A large portion of the Conservation Futures program areas are those which would otherwise be challenging to develop. For example, the theoretical yield is based on acreage only, with the caveat that the area may be restricted by flood zones, wetlands, Channel Migration Zones, or geologically hazardous areas, and would require special permitting processes to develop. Jefferson County has a documented surplus of vacant and underdeveloped parcels which can accommodate the land needs of the County's projected population during the 20-year planning period (2018-2038 Comprehensive Plan Land Use Element). As found in past evaluations, the proposed 2021 conservation actions do not reduce the County's capacity to accommodate future planned growth. 2. Employment Growth. No commercial areas are included in the protected properties. None of the properties are within or near a rural commercial area or urban growth area. Employment or business development that could be forgone by loss of residential dwelling units may include potential home business or cottage industry opportunities. There has been no documentation to suggest there is a reduction in rural employment due to shortage of residential parcels that could support home business or cottage industry. Employment in the project areas would likely consist of agriculture, home businesses, cottage industries or in the natural resources sectors. Limited loss of timber harvest or pasture hay from resource and residential parcels would not make up a significant loss of commercial forestry in Jefferson County. Natural resource conservation has been identified as playing a role in economic development, contributing to a draw of economic development interests to the area due to the quality of life and healthy environment. Project proposals like the Camp Discovery Creek acquisition, continue to be managed for their resources and provide more opportunity for programs that could enhance future employment. Additional Findings from the Jefferson County Comprehensive Plan: 3. The action is consistent with the goals and policies of the Jefferson County Comprehensive Plan for the preservation and enhancement of open space. The Jefferson County Comprehensive Plan identifies goals and policies for the preservation and enhancement of open space as follows: • Policy LU-P-15.2 Protect open space consistent with the goals and policies of this plan and in cooperation with County Conservation Futures and other land conservation programs. • Open Space Goal OS-G-1 guides Jefferson County to "Preserve and improve the quality, value and extent of open space lands." Open Space Policy OS-P-1.4 "Identify and conserve critical wildlife habitat, including nesting sites, foraging areas, 2 and migration corridors within or adjacent to natural areas, open spaces, and developed urban areas. Preserve especially sensitive habitat sites that support threatened species and wildlife habitat in developed areas." • Natural Resources Goal NR-G-1 guides Jefferson County to "Encourage the conservation and long-term sustainable use of resource lands so their continued future use will not be precluded by other uses; and encourage the long-term sustainability of natural resource -based economic activities through Jefferson County. Economic Development Goal ED-G-6 guides Jefferson County to "Encourage economic development that sustains natural resources and open spaces, protects environmental quality, encourages non -motorized recreation and transportation, and enhances Jefferson County's overall quality of life." 4. None of the proposals include property in an Urban Growth Area or Rural Commercial area. Attachment: 2021 Conservation Futures Housing and Employment Analysis Spreadsheet Scope of Review: This review is conducted solely to ascertain the current Conservation Futures project's potential effect on housing supply and Employment growth. While reviewing the proposals, DCD observed potential issues regarding statements about the potential for future development or land divisions. All applicants are encouraged to take advantage of Community Development's customer assistance programs so that technical provisions of Jefferson County Code can be explained and applied to particular site -specific situations. Specifically, the following statement made in the Hannan Farm project regarding ADU allowances does not appear to be accurate: "The Hannan Ranch property is zoned AP 1:20, with the two residences on site using 2 of the presumed 5 development rights (115 acres at 1:20). It is presumed that 2 ADUs could be added if the owners want to, without exercising any additional development rights." (Application, P. 12. Emphasis added.) In this instance, a single parcel of land is allowed one SFR & one ADU. The current ADU exceeds the maximum ADU size of 1,250 s.f. gross floor area & was placed in the spreadsheet's "Current SFR" category for theoretical D.U. yield only. No additional residential structures or Accessory Dwelling Units would be allowed without a subdivision action, unless additional housing was being created pursuant to JCC 18.20.030(3)(e)(ii)(A), farmworker housing criteria. In the Moon Valley project, the Pollard property proposal included subdivision of an AL-20 parcel, leaving approximately 4 acres for a residential parcel. This action would require an exemption from the State and County subdivision regulations. It is not known that this can meet the exemption from state subdivision law, Chapter 58.17, restated at JCC 18.35.040(4), which pertains to acquisition by a public entity. Please contact Community Development for further review. [end] O O oif `o o a U a1 +5 f0 0 C U c o� N a o E- o al li E .Z. m v E Z C C v u O O o N OT ;, v rca o v o- cm, N n m c a 01 N n ar M - .2 0 a 7 E C d Y c O oo aEi ?` N O. v T Yn c 0 C 7 0_� E Mo ra v o Q o v m c a1 a c m ai v °- c m N v 3 la L C t' of J C O L N C JO 7 f0 C 0) `/ j 0 2 U D. C u d J c N O1 C U 7 L y O c U O °-0 ° u o E C o v N a c a -0 O d j m j N v¢ 7 al 7 0 p 0 7 a c c o o o o v '� o c 7 t o o v a u o = o m O m 3 3 u c a aci c o a`oo n v c v v v7 0 o ar m ° }T is uo Z a T E ° v a' u E u ° a, E m 0 o v a E (U = E m O :� o m o v o °Ca z v o n n m a O. Q H 7 >„ N O. Q O O. a• aJ N H D. E O a o0 -m L O 01 W Q 3 L L w L Q O�J N V D. � W a1 (0 O_ N w L o a E 0 al 0 O C O H •• v f0 f0� O O C c C C u C f C aJ 4! 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It is our understanding that the "Taimay Jones and Hertel Properties" involve conservation of forty (65) platted lots (approximately 7.25 acres) for the purpose of wildlife and trail access within the Quimper Wildlife Corridor (QWC). • Parcels available for acquisition include: All of Blocks 1 through 9 of David's Addition. • Parcels to be donated: Lots 1 to 20, Block 35 of Fowler's Park Addition. You had asked whether the fee simple purchase and donation of the project area for permanent conservation "would reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth, as adopted in the countywide planning policies". Based on our review of the projected population, Comprehensive goals and policies and existing zoning of the parcels, the answer is no, placing these parcels in permanent preservation would not reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth, as adopted in the countywide planning policies. In association with the City's 2016 GMA Periodic Update, population and employment projections were assessed. The updated forecast and allocation anticipated a significantly slower growth rate than was projected under the City's initial GMA Comprehensive Plan in 1996. In fact, the updated allocation anticipates Port Townsend's 2036 population will be 1,711 less than was projected for the year 2016 under the original GMA Plan. The analysis concluded that the City has adequate capacity to accommodate anticipated housing and employment growth. Of the 65 platted lots under consideration, 32 lots are wholly in and 2 partially in the City's "Potential Park and Open Space Overlay": All of Blocks 1, 6, 7 together with Lot 2 of Block 8 of David's Addition Block 35 Lots 4-16 together with portions of Lots 3 and 17 of Fowler's Park Addition This category includes areas that may have the potential to be included within a comprehensive and interconnected system of open space and trails. The P/OS (A) overlay appears in areas that could be valuable if maintained as open spaces, such as wooded areas, drainage corridors, and scenic vistas. Purchase of these properties was identified as a means of implementing the open space overlay. In addition, the Comprehensive Plan's Land Use Element encourages the City to consider preservation of habitat within Winona Wetlands and the Quimper Wildlife Corridor: • Policy 3A Designate and retain wetlands, drainage corridors and other areas that provide essential habitat for priority plant or wildlife species as passive open space. Sites that the City should consider acquiring include, but are not limited to: a. Winona Wetlands.... • Policy 3.5: Where possible, accommodate multiple functions within the open space and trails system, including stormwater management, viewpoints, protection of cultural resources, wildlife habitat, and passive recreation. • Policy 3.6: Coordinate with Jefferson County to identify and designate open space corridors and trails within and between urban growth areas, as required under the GMA. 3.6.2: Support the expansion of a Quimper Peninsula wildlife and open space corridor consistent with the Quimper Wildlife Corridor Management Plan. All the lots considered for acquisition are zoned R-I single-family up to 4 d.u. per acre for a gross yield of approximately 32 units; however, development yield would likely be less due to the presence of critical areas. The area is in Tier 3 of the city's infrastructure tiering strategy, reflecting the extended distance from roads and utilities. In addition, all of the subject lots are located within the QWC. Per the adopted QWC Management Plan " The QWC will ultimately consist of a patchwork of property owned by JLT, the City of Port Townsend, other public agencies such as Jefferson County, Washington DNR, and private individuals." In the preamble to Ordinance 2976, adopting the Quimper Wildlife Corridor Management Plan, City Council acknowledged: "Whereas, The Quimper Wildlife Corridor is a series of high quality wetlands, 100- year floodplains, drainage corridors, and forested connections that serves multiple functions and values including providing buffers, preserving view corridors, providing links between neighborhoods, providing wildlife corridors, and generally serving multi -purpose functions such as storm water treatment and conveyance, all of which contribute to the health, safety and welfare as well as quality of life that Port Townsend residents enjoy." "Whereas, the preservation of the QWC in open space substantially addresses the City's requirements under the Growth Management Act to retain open space while accommodating urban growth." Given that the Comprehensive Plan anticipated purchase and preservation of properties within the Potential Park and Open Space overlay and Council found the QWC Management Plan consistent with the GMA goal of accommodating urban growth, it is concluded that acquisition of the project for permanent conservation would not reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth as adopted in the countywide planning policies. The proposed acquisition is consistent with the goals and policies of the City's Comprehensive Plan. We are pleased to see it recommended for preservation and are hopeful that the Commissioners approve the application. Please feel free to contact me at (360) 379-5084 with any questions Sincerely, "�,t Judy Surber Planning Manager STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the Big Quilcene River — Moon Valley Acquisitions } Project as Authorized by and in Accordance with } RESOLUTION NO. Jefferson County Code Section 3.08.030(7) to } Provide a System of Public Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2021 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, Jefferson County, as project sponsor, requests funding towards the acquisition of portions of two parcels of land in S23 T27N R2W with Assessor's Parcel Numbers 702233001 and 702233006; and WHEREAS, the County retains enough developable land to accommodate the Big Quilcene River — Moon Valley Acquisitions project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: Jefferson County hereby dedicates up to $89,500 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least eighty-nine percent (89%) of the total project cost. Resolution No. re: Dedication of Conservation Futures Funds to the Big Quilcene River — Moon Valley Acquisitions project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPROVED AND ADOPTED this day of , 2021 in Port Townsend, Washington. SEAL: ATTEST: Carolyn Gallaway Clerk of the Board JEFFERSON COUNTY BOARD OF COMMISSIONERS Kate Dean, Chair Greg Brotherton, Member Heidi Eisenhour, Member STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the Camp Discovery Creek Acquisition project as } Authorized by and in Accordance with Jefferson } RESOLUTION NO. County Code Section 3.08.030(7) to Provide a } System of Public Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2021 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, Northwest Watershed Institute, as project sponsor, requests funding towards the acquisition of one parcel of land in S15 T27N RI with Assessor's Parcel Number 701151002; and WHEREAS, the County retains enough developable land to accommodate the Camp Discovery Creek Acquisition project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOL VED that: Jefferson County hereby dedicates up to $140,000 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least seventy-nine percent (79%) of the total project cost. Resolution No. re: Dedication of Conservation Futures Funds to the Camp Discovery Creek Acquisition project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPROVED AND ADOPTED this day of , 2021 in Port Townsend, Washington. SEAL: ATTEST: Carolyn Gallaway Clerk of the Board JEFFERSON COUNTY BOARD OF COMMISSIONERS Kate Dean, Chair Greg Brotherton, Member Heidi Eisenhour, Member STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the Hannan Farm project as Authorized by and in } Accordance with Jefferson County Code Section } RESOLUTION NO. 3.08.030(7) to Provide a System of Public Open } Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2021 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, Jefferson Land Trust, as project sponsor, requests funding towards the acquisition of a conservation easement on one parcel of land in S3 T28N Rl W with Assessor's Parcel Number 801032002; and WHEREAS, the County retains enough developable land to accommodate the Hannan Farm project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: Jefferson County hereby dedicates up to $25,000 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least ninety-six percent (96%) of the total project cost. Resolution No. re: Dedication of Conservation Futures Funds to the Hannan Farm project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPROVED AND ADOPTED this day of , 2021 in Port Townsend, Washington. SEAL: JEFFERSON COUNTY BOARD OF COMMISSIONERS ATTEST: Kate Dean, Chair Greg Brotherton, Member Carolyn Gallaway Clerk of the Board Heidi Eisenhour, Member STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the Quimper Wildlife Corridor Additions project as } Authorized by and in Accordance with Jefferson } RESOLUTION NO. County Code Section 3.08.030(7) to Provide a } System of Public Open Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2021 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, Jefferson Land Trust, as project sponsor, requests funding towards the acquisition of nine parcels of land in S4 T30N RIW with Assessor's Parcel Numbers 946500101, 946500201, 946500301, 946500401, 946500501, 946500601, 946500701, 946500801, and 946500901; and WHEREAS, the County retains enough developable land to accommodate the Quimper Wildlife Corridor Additions project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: Jefferson County hereby dedicates up to $69,500 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least sixty-three percent (63%) of the total project cost. Resolution No. re: Dedication of Conservation Futures Funds to the Quimper Wildlife Corridor Additions project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPROVED AND ADOPTED this day of , 2021 in Port Townsend, Washington. SEAL: ATTEST: Carolyn Gallaway Clerk of the Board JEFFERSON COUNTY BOARD OF COMMISSIONERS Kate Dean, Chair Greg Brotherton, Member Heidi Eisenhour, Member STATE OF WASHINGTON County of Jefferson Dedication of Conservation Futures Funds to the Schmidt Farm project as Authorized by and in } Accordance with Jefferson County Code Section } RESOLUTION NO. 3.08.030(7) to Provide a System of Public Open } Spaces } WHEREAS, conservation futures tax levy collections, authorized under RCW 84.34.230, are an important means of retaining community character and accomplishing the open space policies and objectives of the Jefferson County Comprehensive Plan that encourage the coordinated acquisition of key open space lands for long-term protection; and WHEREAS, Jefferson County is authorized by RCW 84.34.210 and 84.34.220 to acquire open space land, agricultural and timber lands as defined in RCW 84.34.220; and WHEREAS, the Conservation Futures Citizen Oversight Committee has reviewed project applications for 2021 and made its funding recommendations to the Board of County Commissioners in accordance with Jefferson County Code Chapter 3.08; and WHEREAS, under the provisions of the Jefferson County Conservation Futures Program, Jefferson Land Trust, as project sponsor, requests funding towards the acquisition of a conservation easement on two parcels of land in S 18 T27N RIM with Assessor's Parcel Numbers 701182005 and 701183003;and WHEREAS, the County retains enough developable land to accommodate the Schmidt Farm project as well as the housing and employment growth that it is expected to receive, thus satisfying the requirements of Chapter 449, Laws of 2005; and WHEREAS, Jefferson County considers it in the best public interest to contribute financially to this open space project. NOW, THEREFORE BE IT RESOLVED that: Jefferson County hereby dedicates up to $0 in conservation futures funds in the 2021 funding cycle for acquisition expenses contingent on a matching contribution of at least seventy-six percent (76%) of the total project cost. Resolution No. re: Dedication of Conservation Futures Funds to the Schmidt Farm project 2. This dedication of funding may be nullified if a submittal for reimbursement, accompanied by documentation of matching funds sufficient to complete the acquisition, is not received from the sponsor within three years of the signing of this resolution. APPROVED AND ADOPTED this day of , 2021 in Port Townsend, Washington. SEAL: JEFFERSON COUNTY BOARD OF COMMISSIONERS ATTEST: Kate Dean, Chair Greg Brotherton, Member Carolyn Gallaway Clerk of the Board Heidi Eisenhour, Member