WEN.307 - TIMBER CRUISE PERFORMANCE WORK STATEMENT.pdf

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Timber Cruise Performance Work Statement Washington Cascades I-V – WEN.307 | 11/16/2021

TIMBER CRUISE PERFORMANCE WORK STATEMENT

FOR

Washington Cascades Phases I-V

WEN.307_SNO.217 & WEN.312_SNO.219

Scope

The USDA Forest Service seeks to contract for an appraisal of property for which a timber cruise is a necessary component of valuation.

National Forest Okanogan-Wenatchee Mt. Baker-Snoqualmie

Project Name Washington Cascades Phases I-V Case Number WEN.307_SNO.217 &

WEN.312_SNO.219

Case Type Land Purchase Land Size 18,376.23-acres

This Timber Cruise Performance Work Statement is included as part of an appraisal assignment package consisting of an Appraisal Performance Work Statement, Appraisal Specifications, and various Exhibits.

Timber Cruise

The value of the subject property to be appraised may be affected by the value of the timber resources present. Therefore, the Contract Appraiser is required to conduct a timber cruise for this assignment. The Contract Appraiser may use qualified staff foresters or may subcontract the cruise to a qualified forestry consulting firm. Staff qualifications or subcontractor qualifications will be reviewed by the Forest Service Review Appraiser and the Measurements Forester in conjunction with the cruise plan submission.

The Contract Appraiser shall submit the proposed design/plan for the timber cruise to the assigned Forest Service Review Appraiser for approval by USFS technical forest measurements staff prior to beginning the timber cruise field work. This shall include timber stand typing for stratification on an aerial photo or other imagery to establish timber types. The following are potential stratification considerations:

Site Quality Timber Types Species Composition Age Density Live/Dead Stands Volume Value

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Per Forest Service Handbook 5409.12 Appraisal Handbook Ch. 20, “The cruise will document the analysis undertaken to determine “current private open market practices” for the area and timber type. At a minimum, this analysis must include a discussion with private foresters who practice in the area. The objective is to base cruise standards and sampling errors on private open market expectations in the area when timber is sold with the land.

At a minimum, the cruise plan should include:

1. The cruise procedures to be used.

2. Definition of the sample populations.

3. Sampling error.

4. Merchantability specifications and measurements.

5. Area map.

6. Defect and grade rules.

7. The cruise program to be used to compute estimated net volumes.”

The Contract Appraiser shall cite the standard error used and the level of standard deviation. The cruise shall document the analysis undertaken to determine “current market practices” for the area and timber type. At a minimum, this analysis shall include a discussion with private foresters who practice in the area.

The Contract Appraiser shall include methodology for inventorying the pre-merchantable reproduction stands as part of the cruise documentation.

The Contract Appraiser will include a description and any relevant tables of sorts to be used in the cruise plan. The current local Bureau Log Scaling and Grading Rules will be used for log grades. Grading and sorting is required for all measured log segments.

The Contract Appraiser shall use the log scale rule appropriate for the area being cruised.

The objective is to base cruise standards and sampling errors on private market expectations in the area when timber is sold with the land. Local open private market practices will dictate the merchantable timber species and product specifications, the manner in which pre-merchantable timber contributes to market value, and any timber volume adjustments needed for restrictions on timber harvests under existing state and local forest practice rules, title restrictions, topography, riparian zones, wildlife areas, etc.

WEN.307 - Washington Cascades Phases I-V.kmz The Google Earth Pro file, which shows the general location of the subject property. It is not an official survey file.

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Timber Cruise Field Work

Timber cruise field work shall be completed as follows:

Timber is to be cruised to the highest value private market specifications (including both export and domestic sorts) using a variable log length cruise program (such as Atterbury SuperACE) capable of calculating volumes by species, sort and grade.

The Contract Appraiser shall securely monument plot and plot center with brightly colored ribbon, flagging is required to be visible to the check-cruiser locating the plots. The Contract Appraiser shall also include as part of the cruise plan a disclosure of the flagging color and monumentation procedures in the cruise documentation. The check cruiser will use the securely monumented plot center to recreate the IN/OUT trees. Plots not securely monumented may result in parcel check cruise failure and potentially require re-cruising of the entire property.

The Contract Appraiser is to determine the site index for the major tree species, measuring a minimum of 5 trees per type.

Check Cruise

After the timber cruise is completed, the Forest Service may conduct a check-cruise in order to ascertain whether or not the timber cruise is acceptable for use in the appraisal. It is important that the timber cruise should be completed as early as possible so that the check-cruise can be finished prior to completion of the appraisal report. Use of highly prominent markings in the field will assist the check-cruiser in locating the plots. The Forest Service check-cruiser will be assigned at a later date, and contact must be through the assigned Review Appraiser.

The Contract Appraiser shall provide the following to the Forest Service check-cruiser upon completion of field data collection:

• A copy of the plot detail data, plus codes used for species, sorts and grades.

• A copy of the net and gross volume table by species, sort and grade for each strata.

• A copy of the timber volumes by type, and total for each parcel.

• A copy of the combined statistics table for each parcel and land exchange/purchase as a whole.

• Stand strata and plot location maps. GPS point shapefiles or list of coordinates including map projection information.

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• An inventory of the parcel (including acres of merchantable timber, pre-merchantable reproduction stands, riparian areas, roads, brush, non-forest, etc.)

that adds up to the legal acreage.

The Forest Service check-cruiser will normally review 5-10% of the Contract Appraiser’s plots. A volume-to-volume comparison will be used to assess the validity of the cruise.

Timber Cruise Reporting

The results of the timber cruise shall be reported in writing and the timber cruise report shall be included in the appraisal report of the subject property. The data files from analysis software should also be provided to the assigned Review Appraiser in a hard-copy version or in a digital.

Timber Valuation Considerations

Only the timber allowed to be harvested under the existing State forest practice rules may be appraised at current values. Volume adjustments must be made for timber required to be retained for riparian, wildlife, or other purposes. These volume adjustments can be designed into the cruise (such as for riparian areas), made based on the stand table (such as wildlife tree retention requirements), or in some cases an acreage adjustment may be appropriate. Volume adjustments shall be documented. Timber that must remain under the existing rules but may be harvested at a later time (such as to meet green-up requirements) will need a growth projection to the time of harvest, then discounted to present value. The costs associated with meeting reforestation requirements where necessary (including site preparation and planting) must be addressed in the valuation.

Assigned Review Appraiser & Contracting Officer Representative (COR)

Bonnie Tanamor Senior Review Appraiser USDA Forest Service Pacific Northwest Region bonnie.tanamor@usda.gov cell (971) 325-6706

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