TNC-PCT_Solicitation.pdf

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 1. REQUISITION NUMBER PAGE 1 OF

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30 854429 36

2. CONTRACT NO. 3. AWARD/EFFECTIVE 4. ORDER NUMBER 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE

DATE

AG-046W-S-17-0040

DATE

04/28/2017

7. FOR SOLICITATION INFORMATION

CALL:

a. NAME

Leslie Solberg

503-668-1667

8. OFFER DUE DATE/ LOCAL

TIME: 3:00pm

05/22/2017

9. ISSUED BY CODE 10. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE: 100 % FOR

SMALL BUSINESS WOMEN-OWNED SMALL BUSINESS

HUBZONE SMALL (WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

BUSINESS SMALL BUSINESS PROGRAM NAICS:

SERVICE DISABLED EDWOSB

VETERAN- OWNED SIZE STANDARD:

SMALL BUSINESS 8(A)

Mt. Hood National Forest

16400 Champion Way

Sandy, Oregon 97055

11. DELIVERY FOR FOB DESTINATION

UNLESS BLOCK IS MARKED

SEE SCHEDULE

12. DISCOUNT TERMS 13a. THIS CONTRACT IS A RATED

ORDER UNDER DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE

See specifications.

16. ADMINISTERED BY CODE

See block 9.

17a. CONTRACTOR/ CODE FACILITY

OFFEROR CODE

18a. PAYMENT WILL BE MADE BY CODE

All invoices will be processed using the Department of

Treasury’s Invoice Processing Platform (IPP), visit http://www.ipp.gov to learn more. Contractors must follow the instructions on how to register and submit invoices via

IPP.

TELEPHONE N0.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN 18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

OFFER IS CHECKED

SEE ADDENDUM

19. 20. 21. 22. 23. 24.

ITEM N0. SCHEDULE OF SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Timber Cruise & Appraisal for TNC-PCT Properties

NAICS CODE: 531320

In accordance with the attached specifications, terms and conditions.

FAR Clauses and provisions incorporated by reference in this

Request for Quotation may be viewed in full text at the following web address www.arnet.gov/far

NOTE: Offerors must be registered in the System for Award

Management (SAM) https://www.sam.gov, including Online Representations and Certifications: FAR 52.212-3 (MAR 2015)

See web page: https://www.acquisition.gov.

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

See IAS requisition.

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE ARE NOT ATTACHED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______1________ 29. AWARD OF CONTRACT: REF. OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY DATED .. YOUR OFFER ON SOLICITATION ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED (BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS: ____________________

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION STANDARD FORM 1449 (REV.2/2012)

PREVIOUS EDITION IS NOT USABLE Prescribed by GSA - FAR (48 CFR) 53.212 http://www.ipp.gov/ http://www.arnet.gov/far https://www.acquisition.gov/

NAME OF OFFEROR OR CONTRACTOR:

DUNS #

ITEM NO. SECTION B SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Notice to Offeror:

Appraisal Services in the Pacific Northwest Region (Region 6)

Item 1

Appraisal Report for proposed land purchase, TNC-PCT Properties (WEN 299) 1 appraisal of six parcels of non-Federal land

Timber cruise for properties included in TNC-PCT Properties (WEN299) appraisal report

TOTAL

Estimated issuance of a Notice to Proceed is 09/11/2017.

See #6 of the evaluation factors on page 35.

Contracting Officer: Leslie Solberg

QUOTES DUE: 05/22/2017, 3:00PM

EMAIL QUOTES TO: lsolberg@fs.fed.us

Job

NSN 7540-01-152-8067 36-109 STANDARD FORM 36 REV. (10-83)

PREVIOUS EDITION USEABLE Prescribed by GSA mailto:lsolberg@fs.fed.us

REGION 6

TNC-PCT (WEN299)

The Nature Conservancy - PCT Properties

Lost Lake, Meadow Creek, Twin Peaks, N. Fork Little Naches II, Three Rivers and Blowout Mountain – (WEN299)

Real Property Appraisal Specifications

1. General Specifications

Scope of Service-

The Central Cascades Forest, LLC owns approximately 3,726.64 acres of private land, managed by The Nature

Conservancy, and that is offered for sale to the U.S. Forest Service. The property is located in Kittitas County, Washington. The U.S. Forest Service is the client for the appraisal report. Intended users of the appraisal are representatives of the USDA Forest Service and relevant personnel of The Nature Conservancy and Central

Cascades Forest, LLC.

The total project consists of a Timber Cruise and an Appraisal Report. A Statement of Work is provided for the Timber Cruise and a separate Statement of Work is provided for the Appraisal.

These specification are applicable to the appraisal.

Contract Appraiser shall furnish all materials, supplies, tools, equipment, personnel, travel (except those to be furnished by the Government as listed later), and shall complete all requirements including performance of the professional appraisal services listed herein.

For the purposes of these specifications, any appraisal report will be considered as meeting the “Uniform

Standards of Professional Appraisal Practice” (USPAP) requirements for an “Appraisal Report” if it has been prepared in accordance with the “Uniform Appraisal Standards for Federal Land Acquisitions” (UASFLA)

(2016; Sections 1 and 2). The report will provide an opinion of market value for the estate appraised and will conform to the most recent editions of USPAP as of the date of the report, published by The Appraisal

Foundation, as well as UASFLA 2016 edition. In case of conflict between the two sets of standards, the latter shall take precedence.

If clarification of these specifications is needed and/or to arrange for the site inspection and pre-work meeting, the Contract appraiser shall contact the assigned staff review appraiser at:

Greg Graybadger, Senior Review Appraiser

USDA Forest Service

1550 Dewey Avenue, Baker City, OR 97814 ggraybadger@fs.fed.us (208) 863-5969

The Contract appraiser will provide Greg Graybadger, Forest Service Regional Review Appraiser with one (1) electronic (pdf) copy of the complete appraisal report for review. Upon approval of the appraisal report the

Contract appraiser shall provide four signed copies of the approved final report and one electronic (pdf) copy.

PROPERTY TO BE APPRAISED:

The property to be appraised consists of six (6) parcels located in Kittitas County, Washington.

Parcel Name Tax Lot Number Legal Description Acres

Lost Lake Tax Lot 605835 T.21 N., R.11 E.

All of Section 9

Meadow Creek Tax Lot 186535 T.21 N., R.11 E.

All of Section 15

Blowout Mountain Tax Lot 625234 T.19 N., R.12 E.

All of Section 23

Twin Peaks Tax Lot 065234 T.19 N., R.11 E.

All of Section 25

N. Fork Little Naches II Tax Lot 265234 T.19 N., R.12 E.

All of Fractional Section 27

526.64

Three Rivers Parcel Tax Lot 615234 T.19 N., R.12 E.

All of Section 35

Total

3726.64

See attached LDV dated 8/5/16, signed by Leland D. Fischer, for detailed legal description.

mailto:ggraybadger@fs.fed.us

PURPOSE OF THE APPRAISAL

The purpose of the appraisal is to provide an opinion of the market value for potential purchase of the identified property by the United States. The property rights appraised are fee simple ownership, subject to interests and exceptions as noted in the Preliminary Title Commitment, File No. 84412AM, dated June 3, 2016.

Date of Value The date of the value opinion is the last date the Contract appraiser inspected the appraised property.

Appraisal Report The Contract appraiser will make a detailed field inspection of the subject property and conduct as many investigations and studies necessary to derive sound conclusions to prepare the appraisal report.

Pre-Work Conference The Contract appraiser will be required to attend a pre-work conference for discussion and understanding of these instructions. The conference may be conducted in conjunction with the field inspection of the property.

Examination Notice The Contract appraiser shall provide the land owner and the Government advance notice of the examination date and shall give the land owner, or the designated representative, and the Government an opportunity to accompany the appraiser during the inspection of the property. These notices shall be documented in the appraiser’s transmittal letter of the appraisal report. The appraiser shall certify that the appraiser has personally visited the appraised properties and all of the comparable transactions used in the comparative analyses.

Updating of Report Upon the request of the Government the Contract appraiser shall, during a 2-year period following the valuation date of the appraisal report, update the value as of a specified date. The updated report shall be submitted in original and one copy and shall include sales data or other evidence to substantiate the updated conclusion of value.

Definition of Terms Unless specifically defined herein or in either USPAP or UASFLA, definitions of all terms are the same as those found in “The Dictionary of Real Estate Appraisal” (Appraisal Institute), current edition. The UASFLA shall take precedence in any differences among definitions.

2. Technical Specifications

Application of These Specifications: These technical specifications reflect the standards for the appraisal of property to be acquired or conveyed by the Forest Service. Unless defined for the Contract appraiser in the assignment, the specifications require the Contract appraiser to analyze and determine the larger parcel. If it is determined that the estate to be appraised contains multiple larger parcels, the Contract appraiser shall consult with the assigned staff review appraiser for possible additional direction.

Larger Parcel Determination and Contributory Value:

The appraiser must analyze and determine the larger parcel. In addition, the assignment requires reporting the contributory value of the six (6) parcels identified in the property to be appraised description above: Lost Lake, Meadow Creek, Twin Peaks, N. Fork Little Naches II, Three Rivers and Blowout Mountain.

The appraiser should consider market evidence from the open and competitive market as to how a private sector seller and buyer would evaluate the larger parcel. See Uniform Appraisal Standards for Federal Land

Acquisition Section 1.4.6.

1. If the appraiser determines that there is one larger parcel, then the appraiser is to report that value and also report a contributory value for each of the individual six parcels.

2. If the appraiser determines that there are multiple larger parcels, then the value of those larger parcels will be reported. The appraiser will also report a contributory value for each of the individual six parcels.

3. The appraiser should also provide a market analysis and conclusion as to how the value of the property may be affected if offered for sale at one time.

Federal Law Controls: Federal law may differ from the laws of some states and supersedes State law when they conflict. Accordingly, it is incumbent upon the Contract appraiser to understand the applicable Federal law as it affects the appraisal process in the estimation of market value. Federal law is reflected in UASFLA. The specifications in this appraisal follow UASFLA format, with emphasis on issues of special concern to the Forest

Service. It should not be construed that the Contract appraiser is to consider only the emphasized items.

Appraisal reports shall be prepared in compliance with UASFLA standards and Forest Service appraisal instructions provided by the assigned staff review appraiser.

Unit Rule: One aspect of the UASFLA that the Contract appraiser should be aware of is the “unit rule.” A principle developed by the federal courts that dictates what is to be value for just compensation. Under the unit rule, the property being appraised must be valued as a unitary whole in single ownership. The value of the whole cannot be derived by adding together the separate values of various interests or components. As a result, summation or cumulative appraisals are improper under federal law. The unit rule relates to ownership interests

(estates) in real estate and to various physical components of real estate (such as timber, mineral deposits, farm land, and buildings). See UASFLA 2016 for more details.

UASFLA and USPAP Conflicts: Conflicts between UASFLA and USPAP are minimal. When there is conflict, UASFLA takes precedence. It may be necessary to invoke the Jurisdictional Exception Rule to USPAP to meet certain standards of the UASFLA. Invocation of the Jurisdictional Exception Rule should never be invoked lightly and must include citation of the over-riding Federal policy, rule, or regulation that requires it. Any jurisdictional exceptions not specifically cited in the UASFLA shall be discussed with the assigned staff review appraiser.

Comprehensive Review: Federal law requires review of all appraisals by a qualified review appraiser to assure they meet applicable appraisal requirements, including those in UASFLA, Forest Service policy, and these specifications. Compliance with USPAP will also be reviewed. Findings of deficiency shall be discussed and corrections requested once the appraisal report has been delivered for review. A value opinion is acceptable for agency use only after the assigned staff review appraiser has approved the appraisal report (FSM 5411).

Freedom of Information Act: Freedom of Information Act provisions may result in the release of all or part of the appraisal report to the public. Prepare the report so that:

a. Analytical methods and techniques are explained (in so far as possible) in a manner understandable to the public, as well as the reviewer.

b. If providers of information request confidentiality, this information is not included in the report.

Confidential information shall be made available to the staff review appraiser upon request, but shall not be incorporated in a Forest Service system of records.

Format. The report shall be typewritten on bond paper, sized at 8 1/2 by 11 inches, with all parts of the report legible, and bound with a durable cover. The face of the report shall be labeled to identify the appraised property and show the number, the Contract appraiser’s name and address, and the date of the appraisal. All pages of the report, including the exhibits, shall be numbered.

Contents. The suggested format outlined in items Part I through Part IV is based on UASFLA. Although it is not required that the Contract appraiser strictly adhere to it, all items must be addressed. It should be noted that in most instances, these specifications reference UASFLA without reprinting them here. Important items are noted below, but are not all-inclusive. It is incumbent upon the appraiser to read, understand, and comply with

UASFLA and these specifications.

Part I - Introduction. Follow the UASFLA format.

1. Title Page.

2. Letter of Transmittal.

3. Table of Contents.

4. Appraiser’s Certification. Follow the UASFLA and USPAP guidelines, but include the following:

"I have made a personal inspection of the appraised property which is the subject of this report and all comparable sales used in developing the opinion of value. The date(s) of inspection was __________, and the method of inspection was ___________________.” (If more than one person signs the report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property. The appraiser must inspect the appraised property.)

"In my opinion, the market value (or other value as required) is $ as of (date).

By (Appraiser’s signature)

Printed Name and Professional Accreditation

State General Certification No.

5. Executive Summary

6. Photographs of Subject. Provide original color photographs or high quality color copies of photographs of the appraised property. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales. Show the following information with each photograph:

a. Identify the photographed scene. Indicate direction of view, vantage point, and other pertinent information. A map may be used to show some of this information.

b. The name of the photographer.

c. The date the photograph was taken.

7. Statement of Assumptions and Limiting Conditions. All appraisal reports submitted to the Forest Service for review become the property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits distribution of the report is not permitted.

If the appraisal is made subject to any encumbrances against the property, such as easements, that shall be stated. It is unacceptable to state that the property has been appraised as if free and clear of all encumbrances, except as stated in the body of the report; the encumbrances must be identified in this section of the report.

The use of an uninstructed assumption or hypothetical condition that results in other than “as is” market value will invalidate the appraisal. Include only factors relating to the appraisal problem. Assumptions and limiting conditions that are speculative in nature are inappropriate. Do not include limiting conditions that significantly restrict the application of the appraisal.

In this section of the specifications, or in separate written instructions, the appraiser shall be instructed as to necessary hypothetical conditions or extraordinary assumptions

An appraiser cannot make an assumption or accept an instruction that is unreasonable or misleading. Agency instructions and/or legal instructions shall have a sound foundation, be in writing, and included in the appraisal report.

8. Description of Scope of Work. The appraiser shall use this section of the report to identify the seven critical elements that defined the appraisal problem to be solved:

Client

Intended Users

Intended Use

Definition of market value

Effective date

Property characteristics

Assignment conditions

This section shall include an explanation a description of the property rights appraised. The appraiser should describe the investigation and analysis that was undertaken in developing the appraisal. The geographical area and time span searched for market data should be included, as should a description of the type of market data researched and extent of market data confirmation. The appraiser should state the references and data sources relied upon in developing the appraisal.

The applicability of all approaches to value shall be discussed and the exclusion of any approach to value shall be explained.

For acquisition appraisals, use the following definition: “Market value is the amount in cash, or 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 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.” (UASFLA, 2016)

This definition makes no linkage between the estimated market value and exposure time. A specific exposure time shall not be cited in an appraisal report prepared under UASFLA standards. As USPAP requires a specific exposure time, the appraiser should state that the appraisal report is subject to the Jurisdictional Exception Rule.

Part II - Factual Data.

1. Legal Description. The legal description is provided to the appraiser in the appraisal assignment. If a lengthy description would disrupt the narrative flow, it may be placed in the addenda and referenced in the text.

2. Area, City, and Neighborhood Data. The use of boilerplate demographic and economic data is unnecessary and undesirable. Report only data that directly impacts the market analysis.

a. Area Map. Include a small-scale map showing the general location of the appraised property. It can be placed here or in the addenda.

b. Neighborhood Map. Show the appraised property and its immediate neighborhood. The map may be placed here or in the addenda.

3. Property Data. Include the following:

a. Site Description: Dimensions, size, shape, vegetative cover, soil types, topography, elevations, wetlands, flood plains, view, timber, water rights, effect of encumbrances, livestock forage, access, road frontage, utilities, location, or other characteristics that may affect value. A statement must be made concerning the existence or absence of mineral deposits having a commercial value. Exchange appraisals of National

Forest System lands with reserved public domain status must include a discussion of minerals and must be supported by a mineral report to be included in the addenda. Evidence, if any, of hazardous substances shall be described by the appraiser.

b. Improvements.

c. Fixtures.

d. Use History. A 10-year history is required.

e. Sales History. Include a 10-year record of all sales of the appraised property and, if the information is available, offers to buy or sell. If no sale has occurred in the past 10 years, the appraiser shall report the last sale of the property, irrespective of date.

f. Rental History. A 3-year rental history is required. An unsupported statement that the rent does not represent market or economic rent is unacceptable.

g. Assessed Value and Annual Tax Load.

h. Zoning and Other Land-use Restrictions. The appraiser shall identify, in addition to zoning, all other land-use and environmental regulations, outstanding rights, and reservations that have an impact on the highest and best use and value of the property.

Part III - Data Analysis and Conclusions.

1. Highest and Best Use. UASFLA defines highest and best use as “The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future.” The appraiser’s determination of highest and best use is one of the most important elements of the entire appraisal process. The highest and best use of the land, as if vacant, is addressed first. If the land is improved, the highest and best use of the property, as improved, is then addressed.

a. Four Tests – The four tests of highest and best use are physically possible, legally permissible, financially feasible, and must result in the highest value. Each of these four criteria must be addressed in the appraisal report. The level of supporting data and analysis presented in the report for each criteria will depend in part on the complexity of the appraisal problem. A property’s highest and best use will ordinarily be existing use, as an owner will normally put property to its maximum (highest value) use. A determination that the property has a different highest and best use than its existing use requires evidence that the property is physically and legally adaptable for that use and there is a market demand for that use in the reasonably near future.

b. Larger Parcel -The UASFLA requires the appraiser to make a larger parcel determination in all appraisals. The appraiser must describe the factual basis and analysis underlying the conclusion of the larger parcel analysis. The three tests developed under larger parcel analysis (unity of highest and best use, unity of title, and contiguity) must be reported in sufficient detail for the client and intended users to fully understand the factual and analytical basis for the conclusion.

Larger Parcel Determination for Fee Acquisitions. For direction on larger parcel determination for fee acquisitions by the USDA Forest Service, see FSH 5409.12, section 14.9.

Appraisal of non-Federal fee ownership for voluntary sale to the United States, specifically purchased by the United States Department of Agriculture (USDA) Forest Service, requires a larger parcel determination. As noted in Paragraph 1 of the section, the Uniform

Appraisal Standards for Federal Land Acquisitions (UASFLA) serves as the basis for determination that the appraiser should not consider lands outside the property in the proposed conveyance instrument for either larger parcel determination or in reaching a conclusion of highest and best use for exchanges and conveyances by the Forest Service.

The appraiser should consider market evidence from the open and competitive market as to how a typical private sector seller and buyer would evaluate the larger parcel for a specific fee acquisition by the Forest Service.

The use to which the Government will put the property after it has been acquired is, as a general rule, an improper highest and best use.

Appraisals in federal acquisitions cannot be based on noneconomic or nonmarket uses. To be an economic use, the use must contribute to the property’s actual market value, and there must be competitive supply and demand for that use in the private market.

If the highest and best use is for assemblage, describe and explain the relationship of the appraised property to the property to which it would be joined.

If speculation or investment is the highest and best use of the property, describe and explain its interim and most probable ultimate use.

A highest and best use must be reasonably probable. Elements affecting value that depend upon events or combination of occurrences which while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration.

The appraiser's opinion of a reasonable probability of a zoning change must have a factual foundation. The appraisal report shall include a description of the investigation undertaken to determine the probability of rezoning. The investigation shall include thorough research of the use(s) and zoning of properties situated similarly to the subject property within the area covered by the zoning authority. The stated rezoning conclusion shall be supported by facts surfaced in the research. A property cannot be valued as if it were already rezoned for a different use. The property must be valued only in light of the probability of obtaining a zoning change.

In reaching a conclusion regarding a property’s highest and best use and regarding the larger parcel, the appraiser must identify the most probable buyer and/or the most probable use of the subject property under that highest and best use. The appraiser must also reach a conclusion concerning the timing of any highest and best use that is different than the current use.

2. Land Valuation. The appraiser shall report the opinion of value of the land for its highest and best use as if vacant and available for such use. See UASFLA Sections 1.5.1 and 4.4.2 for a detailed discussion concerning the approaches to value and legal foundation for these standards. In all assignments, the sales comparison approach is the preferred valuation approach for forming an opinion of market value of the land as if vacant.

However, in some assignments the subdivision development may be appropriate.

Sales Comparison Approach. In reporting the results of the sales comparison approach for land valuation, the appraiser shall provide sufficient detailed description of confirmed sales of lands that have the same or similar highest and best use as the subject property. Differences between the comparable sales and the subject property shall be considered and adjustments made to the sales to address these differences. Items of comparison shall include property rights conveyed, financing terms, conditions of sale, market conditions, location, physical characteristics, economic characteristics, legal characteristics and non-realty components of value. The adjustments must be summarized in an adjustment grid and each adjustment (whether qualitative or quantitative) should be supported with market data.

Subdivision Development Method. In those circumstances where the property has a highest and best use for subdivision purposes and the appraiser has developed the subdivision method, the report must address all of the factors and assumptions used in sufficient detail for the client and intended users to understand the outcome of this method. The market support for each factor (lot sale price, absorption rate, development costs, expenses, time lag, and discount rate) used in this analysis must be clearly presented in the report. The discount cash flow analysis prepared as part of this analysis must be included in the report.

Cost Approach. This portion of the report should be in the form of computational data, arranged in sequence, beginning with reproduction or replacement cost. The report should state the source of all figures used. If the

Appraiser retained the services of a contractor or professional cost estimator to assist in the developing the reproduction or replacement cost estimate, this data should be referenced and the estimator’s report included in the addenda of the appraisal report. See UASFLA Section 1.5.3 for a discussion concerning the preferred methods of estimating depreciation.

Sales Comparison Approach. Nearby arm’s length transactions, comparable to the land under appraisement, and reasonably current, are the best evidence of market value. The Federal courts recognize the sales comparison approach as being normally the best evidence of market value. Each appraisal report must contain a sufficient description of the comparable sales used so that it is possible for the reader to understand the conclusion drawn by the appraiser from the comparable sales data.

Prior sales of the same property, if unforced, arm’s-length, for cash or its equivalent and reasonably recent to the date of valuation, are extremely probative evidence of market value. Accordingly, the appraiser must determine what the owner paid for the property being appraised. Prior sales of the same property are not categorically entitled to more weight than sales of other comparable properties. Relative importance of each must be analyzed under particular facts of the appraisal assignment. An unsupported claim that a sale of the subject property did not represent market value, or was not an arm’s-length transaction is not sufficient.

When supportable by market evidence, the use of quantified adjustments is preferred. Percentage and dollar adjustments may and often should, be combined. Resort to qualitative adjustments only when there is inadequate market data to support quantitative adjustments. Factors that cannot be quantified are dealt with in qualitative analysis. When quantitative and qualitative adjustments are both used in the adjustment process, all quantitative adjustments should be made first.

The documentation of each comparable sale in the addenda shall include:

a) Parties to the transaction.

b) Date of transaction.

c) Legal Description

d) Type of sale instrument

e) Document recording information

f) Price

g) Terms of sale

h) Confirmation of the transaction. Confirm the transaction with the buyer, seller, broker, or other person having knowledge of the price, terms, and conditions of sale.

i) Buyer motivation

j) Sale conditions. Verify if the sale was an arm’s length or distressed sale.

k) Location

l) Zoning

m) Present Use

n) Highest and best use

o) Brief physical description of the property including size, topography, vegetative cover, improvements, water influence, other characteristics

p) Plot plan, sketch or topo map of the property

q) Date of inspection and by who

r) Photographs showing the date taken and name of the person taking the photograph

s) Non-realty items.

t) Economic characteristics.

A comparable sales map showing the relative location of the comparable sales to the subject property shall be included in the addenda of the report. Inclusion of a copy of the transfer document (e.g., deed, contract) in the report is neither required nor desirable, unless there is something in the document that is unusual or particularly revealing.

In order to make meaningful comparisons between the sales and the appraised property, the Forest Service requires inspection of all sales directly compared with the appraised property. Unusual circumstances that preclude on-the-ground inspection or make inspection unreasonably difficult shall be discussed with the assigned staff review appraiser prior to completion of the appraisal report. Waiver of the comparable sale inspection requirement must be made in writing by the assigned staff review appraiser in the form of a supplemental appraisal instruction. There shall be no waiver of the requirement for inspection of the appraised property.

Include a list of the sales considered, but not actually used, in the addenda. Cite pertinent facts such as date, size, buyer and seller, price, terms, location, and explain why each sale was not used.

The appraiser shall adhere to UASFLA direction pertaining to comparable sales requiring extraordinary verification and weighting considerations. These include sales to governmental agencies, sales to environmental organizations, sales to parties desiring to exchange the land to the government, distressed sales, and other atypical or non-arm’s length sales.

In developing a final opinion of value by the sales comparison approach, the appraiser shall explain the comparative weight given to each comparable sale, no matter whether quantitative or qualitative adjustments or a combination thereof are used. A comparative adjustment chart or graph is required.

The Income Capitalization Approach. All data shall be market supported.

Correlation and Final Conclusion of Market Value. The appraiser must avoid making a summation appraisal.

Appraisers are responsible for the final opinion of value even if it relies upon estimates developed by others

(such as, timber cruisers, mineral appraisers, or cost estimators).

Part IV - Exhibits and Addenda.

Include the following items as applicable to the appraisal problem if not included in the body of the report:

1. Maps. Maps shall clearly identify the properties and be of sufficient quality to enable the staff review appraiser to locate the properties on the ground. Maps shall be dated, include a legend, scale, and north arrow.

The original copy of the report shall contain original maps or vivid color copies.

a. Area Map. This is a small-scale map showing the general location of the subject market area.

b. Neighborhood Map. This map shows the appraised property and its immediate neighborhood.

c. Tract Map or Plat. This map is a large-scale (2-inch/mile) United States Geological Survey

(USGS) or similar quality map that shows the appraised property and pertinent physical features such as roads, streams, and improvements. If portions of the appraised property are assigned separate values, such as in an assembled exchange, these areas shall be delineated on this map, or a separate map.

d. Comparable Sales Location Map. This map shall show the location of the appraised property and the sales. Delineate the boundaries of the appraised properties and comparable sales when the map is of sufficient scale to be meaningful. If all pertinent comparable sales cannot be shown on the same map as the appraised property, a smaller-scale map (such as a state road map) may be included in addition to the larger scale map.

2. Sale Transaction Forms. Include a completed form showing all information for each comparable transaction used in the appraisal. Include a plat (if available), a USGS topographic map (if appropriate), and color photo(s) of each sale. The transaction number must match the number of the transaction listed in the report.

3. Legal Description. Include a full legal description of the property appraised if not shown in the narrative section of the report.

4. Title Information. Include a copy of the preliminary title report for the non-Federal land and a statement of interest (status report) for the Federal land, as applicable.

5. Photographs. Provide quality color photographs of the appraised property and all comparable sales in the original and all copies of the final report. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales. Show the following information with each photograph:

a. Identify the photographed scene. Indicate direction of view, vantage point, and other pertinent information. A map may be used to show some of this information.

b. The name of the photographer.

c. The date the photograph was taken.

6. Other Pertinent Exhibits. Present additional data such as documents and charts pertinent to the valuation and referred to in the body of the appraisal. It may include:

a. A copy of an easement or other deed.

b. A copy of technical reports from specialists. This may include a timber cruise summary signed by a timber cruiser, a road plan signed by an engineer, or a mineral report signed by a geologist.

c. Property owner permission to appraise.

7. References. List sources of data, including documents and individuals.

8. Qualifications of the Appraiser. Include the qualifications of all appraisers or technicians who made significant contributions to the completion of the appraisal assignment.

The appraiser(s) must provide evidence of compliance with the certification requirements of the state(s) where the properties are located.

Format for Supplemental Appraisal Reports. Supplements or amendments to appraisal reports, such as for updating value estimates, changes in acreage, additional support or explanation, or to correct a previous appraisal report, shall be referenced for incorporation with the original report. The following format is recommended. All items must be addressed.

1. Title Page. Include the same information as on the original appraisal report. Label the report as a

"Supplemental" or "Updated" appraisal report.

2. Summary of Facts. Include (a) owner's name or other identification of the property, (b) size, (c) highest and best use, (d) new estimate of value, and (e) new valuation date.

3. Summary of Original Appraisal. Cite the date and value opinion from the original appraisal. If previous updates have been made since the original appraisal, cite value opinions and value dates from all updates as well as the original appraisal.

4. Changes. Explain the reason for the appraisal supplement; such as, to update an opinion of value, amend a previous appraisal report, add additional support or explanation, or other.

5. New Opinion of Value. Discuss the changes and market activity that have occurred since the original appraisal (or previous update). Discuss the method used to update the opinion of value and cite the evidence and/or analysis of trends that support the updated value opinion. Conclude with a statement of the new opinion of value and the valuation date, followed by the appraiser’s signature.

6. Certification.

7. Addenda. Include sales data detail for new sales cited, summaries of data and trend analyses, maps of sales analyzed, and any other information relied upon but not included in the text.

8. Binding. If the Supplemental Appraisal Report comprises more than four pages, it shall be bound in a durable report cover with appropriate identification.

Furnished Property, Data and Services

The Government shall furnish the following at the at the Contract appraiser’s request:

1. Use of aerial photographs of the appraised property and of such other aerial photographs as are available. (To be returned to the Forest Service upon completion of the appraisal, if not included as an exhibit to the report).

2. Copies of pertinent Forest Service administrative maps as available for use in the appraisal report.

Performance

The contract appraiser will provide one electronic (pdf) copy of the complete appraisal report for review by the assigned Forest Service review appraiser, Greg Graybadger within 60 days of the Notice to proceed. The assigned staff review appraiser will then review the final appraisal report for approval or recommend revisions.

If revisions are necessary, the revised report shall be submitted within 15 days of notification.

Information

For additional information or to arrange for the site inspection, contact Greg Graybadger, 208-863-5969

PAYMENT: Payment for contract work shall be made upon receipt and approval of the final appraisal report.

Special Instructions to the Appraiser:

1. A timber cruise is required to be completed by qualified cruisers. See Timber Cruise Statement of

Work for Specifics.

2. A formal pre-work meeting between the appraiser and TNC, FS representative - Amelia

3. The appraiser is to provide a separate appraised value for the Rowena Bluff parcel and the Rowena

Memaloose parcel. The final report value shall show the separate values unless considered as contributing to one final value if there is only one larger parcel that includes both parcels.

4. In the event of acreage discrepancies between the Land Description Verification (LDV) (Appendix

3) and any other source, the LDV is the official source for purposes of this appraisal.

5. The Contract appraiser is instructed to include a copy of the provided appraisal specifications and

Statements of Work in the addendum to the appraisal report. The specialist reports and supporting documents may be incorporated by reference.

APPENDICES TO SPECIFICATIONS

Note: Appendix items will be supplied to the Contract appraiser after contract award

Appendix 1 Estate to Be Appraised

Appendix 2 Title

Preliminary Title Commitment dated June 3, 2016, File No. 84412AM

Schedule B Documents

Encumbrance Evaluation Report - EER TNC-PCT: WEN299 – dated 8/22/2016

Appendix 3 Land Description Verification (LDV) and Inspections

LDV dated August 5, 2016

Certificate of Inspection

Worksheet 2

Appendix 4 Maps and Photos

Aerial Photos

Aerial Lost Lake

Aerial Meadow Creek

Aerial N. Fork Little Naches II

Aerial Three Rivers

Aerial Twin Peaks

Blowout Mtn Aerial

Encumbrances Aerial Photos

Encumbrances Blowout Mountain

Encumbrances Lost Lake

Encumbrances Meadow Creek

Encumbrances Three Rivers

Encumbrances Twin Peaks

Forest Map

WEN299ForestMap

Topo parcels

QuadMap_Northern

QuadMap_Southern

Appendix 5 Minerals and Water Rights

Appendix 6 Landowner Permission

Appendix 1

Estate to Be Appraised The fee simple estate to be appraised is all rights, title and interest to the described real property identified in the

Preliminary Title Commitments dated June 3, 2016, File No. 84412AM, found in Appendix 2.

Parcel Name Tax Lot Number Legal Description Acres

Lost Lake Tax Lot 605835 T.21 N., R.11 E.

All of Section 9

Meadow Creek Tax Lot 186535 T.21 N., R.11 E.

All of Section 15

Blowout Mountain Tax Lot 625234 T.19 N., R.12 E.

All of Section 23

Twin Peaks Tax Lot 065234 T.19 N., R.11 E.

All of Section 25

N. Fork Little Naches

II

Tax Lot 265234 T.19 N., R.12 E.

All of Fractional Section 27

526.64

Three Rivers Parcel Tax Lot 615234 T.19 N., R.12 E.

All of Section 35

Total

3726.64

Recommended Legal Description:

Willamette Meridian

Kittitas County, State of Washington

T.19 N., R.11 E., Sec. 25, All

T.19 N., R.12 E.;

Sec. 23, All

Sec. 27, Factional, All

Sec. 35, All

T.21 N., R.11 E.;

Sec. 9, All

Sec. 15, All

The area described contains 3726.64 acres, more or less.

Appendix 2

Title

Preliminary Title Commitment dated June 3, 2016, File No. 84412AM

Schedule B Documents

Encumbrance Evaluation Report - EER TNC-PCT: WEN299 – dated 8/22/2016

Appendix 3

Land Description Verification (LDV) & Inspections

LDV dated August 5, 2016

Certificate of Inspection

Worksheet 2

Appendix 4

Maps and Aerial Photos

Aerial Photos_Parcels

Aerial Lost Lake

Aerial Meadow Creek

Aerial N. Fork Little Natches II

Aerial Three Rivers

Aerial Twin Peaks

Blowout Mtn Aerial

Encumbrances Aerial Photos

Encumbrances Blowout Mountain

Encumbrances Aerial Lost Lake

Encumbrances Aerial Meadow Creek

Encumbrances Aerial Three Rivers

Encumbrances Aerial Twin Peaks

Topo_Parcels

Quad Map – Northern

Quad Map – Southern

Forest Map

WEN299 Forest Map

Appendix 5

Minerals and Water Rights

Mineral:

The mineral estate is outstanding for all 6 parcels. This includes minerals, oil, gas, and hydrocarbons.

Water Rights:

According to the DOE, there are existing water rights associated with the properties, but they are not tied to any particular property. The water rights are in favor of the United States and do not affect the subject parcels.

Appendix 6

Landowner Permission

Letter

Appraisal Statement of Work

SCOPE: The USDA Forest Service is seeking to contract for an appraisal of property owned by Central

Cascades Forest, LLC, (CCF) successor in interest to Plum Creek Timberlands, LLC. The property is managed by The Nature Conservancy (TNC). Six parcels located in Kittitas County, Washington have been offered for sale to the United States. These parcels vary from 526.64 acres to 640 acres in size and the total acreage is 3,726.64 acres.

SUMMARY OF PROPERTY TO BE APPRAISED:

Case Name: TNC-PCT (WEN299)

Ownership: Central Cascades Forest, LLC, 1917 First Ave

Seattle, WA 98101

General Location: All parcels are located in western Kittitas County, Washington

Legal Description: Refer to LDVs for complete legal description.

Willamette Meridian Kittitas County, State of Washington

T.19 N., R.11 E., Sec. 25, All (Twin Peaks)

T.19 N., R.12 E.;

Sec. 23, All (Blowout Mountain)

Sec. 27, Factional, All (N. Fork Little Naches II)

Sec. 35, All (Three Rivers)

T.21 N., R.11 E.;

Sec. 9, All (Lost Lake)

Sec. 15, All (Meadow Creek)

The area described contains 3726.64 acres, more or less.

Map:

Rights Appraised: Fee simple subject to all rights, title and interest in the real property as described in

Preliminary Title Commitment dated June 3, 2016, File No. 84412AM

Size:

Parcel Acres Lost Lake 640 Meadow Creek 640 Blowout Mountain 640 Twin Peaks 640 N. Fork Little Naches II 526.64 Three Rivers 640

Total 3,726.64

Parcel tax lot:

Parcel Tax Lot (Kittitas County) Lost Lake Tax Lot 605835 Meadow Creek Tax Lot 186535 Blowout Mountain Tax Lot 625234 Twin Peaks Tax Lot 065234 N. Fork Little Naches II Tax Lot 265234 Lost Lake Tax Lot 615234

Improvements: None

Physical/Legal Access: All of the parcels can be entered by open Forest Service roads that connect to the public highway. Some of these roads pass through what was previously Plum

Creek ownership and were under a cost share road agreement. The Nature

Conservancy has chosen to keep these roads open, and not block public access.

There is nothing blocking physical access to the parcels.

Water Rights: None

Minerals: Mineral rights are outstanding, including all minerals, oil, gas and hydrocarbons. These mineral rights were previously conveyed to Meridian Minerals Co. and Meridian Oil, Inc.

Hazmat: None known. No recognized environmental conditions were identified in connection with these properties according to the realty specialist that conducted the Environmental

Site Assessment.

Merchantable Timber & Timber Cruise:

The subject has been managed for timber and the property has been previously harvested. The current volume of merchantable timber is unknown. The appraiser will be responsible for providing an acceptable timber cruise for the property. A separate Timber Cruise Statement of Work is provided.

ITEMS NOT CURRENTLY OF RECORD: None known.

THE ASSIGNMENT:

Prepare an appraisal report of the described subject property in compliance with the following:

Statement of Work and Appraisal Specifications;

Current Edition - Uniform Standards for Professional Appraisal Practice (USPAP); and

Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA, 5th ed., 2016.

PURPOSE OF THE APPRAISAL:

The purpose of the appraisal is to provide an opinion of the market value (as defined in UASFLA 1.2.4) of the described property. See Specifications 2, Part I, 8.

CLIENT, INTENDED USE AND INTENDED USER(S) OF THE APPRAISAL:

Client: The USDA Forest Service is the client.

Intended Use: The intended use of the appraisal report is to establish market value as a basis for acquisition of the described property by the United States.

Intended User: The intended users of the appraisal report are representatives of the USDA Forest Service and relevant personnel of The Nature Conservancy and Central Cascades Forest, LLC.

The appraisal will be submitted to the assigned Forest Service Review Appraiser for technical review. Upon completion of the technical review, intended users will be provided access to copies of the approved appraisal report.

OTHER INSTRUCTIONS:

Hypothetical Conditions: None

Extraordinary Assumptions: None

Pre-work Meeting and Property Inspection

Appraiser will participate in a pre-work meeting conducted by the Forest Service Review Appraiser. Pre-work may be in conjunction with the property inspection. Representatives of the Forest Service, TNC, and

CCF (owners) will be given an opportunity to take part in the pre-work meeting and associated property inspection.

Legal Description or Property Rights Information

If you find any error(s), inaccuracy(s), or incomplete items from the provided property description documents and/or the property rights information please notify the Forest Service Review Appraiser to receive direction for modification or changes to the instructions.

Larger Parcel Determination

The appraiser should consider market evidence from the open and competitive market as to how a private sector seller and buyer would evaluate the larger parcel. See Uniform Appraisal Standards for Federal Land

Acquisition Section 1.4.6.

If the appraiser determines that there is one larger parcel, then the appraiser is to report that value and also report a contributory value for each of the individual six parcels.

If the appraiser determines that there are multiple larger parcels, then the value of those larger parcels will be reported. The appraiser will also report a contributory value for each of the individual six parcels.

The appraiser should also provide a market analysis and conclusion as to how the value of the property may be affected if offered for sale at one time.

Enclosures

The…