Scope of Work for Forest Management Assessment and Planning
                  Strategy
                  The objective of this agreement is to provide Bremerton
                    Public Works & Utilities (PW&U) with accurate forest
                    stand information to maximize water protection, revenue production,
                    and water production within the specified constraints for
                    the duration of the planning period. Primary constraints
                    include, but are not limited to: Surface Water Treatment
                    Rule (SWTR); Forest Practices Regulations; and sustained
                    yield harvest principals. This information is intended to
                    update and supplement constraints and information contained
                    in the December 1996 Utility and Forest Land Management Plans. 
                  Abstract
                  The objective of the attached proposal is to
                    provide Bremerton Public Works and Utilities (PW&U) with
                    accurate forest stand information to best manage the forest
                    resource on a sustainable basis for water protection, revenue
                    production, and water production within specified constraints
                    into the future. The University of Washington, College of
                    Forest Resources, Rural Technology Initiative (RTI) will
                    use forest inventory, geographical, historical, and other
                    information as data inputs for the Landscape Management System
                    (LMS©), a publicly available forestry software program,
                    and ArcView©, a proprietary Geographical Information System
                    (GIS)
                    program, in collaboration with the PW&U Forestry Division
                    and other consultants, to create an assessment of current
                    and future conditions on Water Utility forestlands under
                    different management approaches. Alternative approaches to
                    meeting the multiple-use goals of PW&U for these forestlands
                    will be developed and evaluated on a temporal and spatial
                    basis using a combination of ecological and economic models.
                    A report on comparisons of alternate management approaches
                    will result and be provided to PW&U. The report will
                    include estimates of sustainable harvest volumes as well
                    as other pertinent metrics of forest resource analysis associated
                    with PW&U management goals. RTI will also train PW&U
                    personnel in the use of LMS and provide the PW&U Forester
                    copies of the LMS software as well as electronic versions
                    of all data and mapping capabilities generated from this
                    project. The planning horizon will be 50 years developed
                    in 5-year management cycles. 
                  Background
                  The Bremerton Water Utility owns 8,186 acres
                    of land in Kitsap County that were originally purchased and
                    are managed to protect and enhance the water quality and
                    resource for public water supply. Most of this Water Utility
                    land is located within the contiguous ownership of 7,660
                    acres. The major drainages within these lands are the Union
                    River, and Gorst Creek. The City prepared a comprehensive
                    Plan to manage these lands in 1986 and an update to the Plan
                    in 1996. As part of the 1996 planning effort, a field inventory
                    of forest resources was conducted and digital mapping capability,
                    through the use of GIS, was established. An examination of
                    the 1996 field inventory data indicates that the Utility
                    has 7,108 acres of land in forest. The soils and climate
                    are conducive to production of timber resources. In 1996,
                    the average site index from King Site Index (King, 1966)
                    was determined to be 106, which is a medium site class III.
                    The slope of the land ranges from 0 to 60% with predominant
                    south and southwest facing slopes.
                  Of paramount concern to the City of Bremerton PW&U is
                    the continued high quality of its surface water resources.
                    The Water Utility operates the Union River Reservoir as an
                    unfiltered surface water supply that provides for 60% of
                    customer water use. The remaining 40% is taken from 12 wells
                    located on Utility lands outside of the Union River Basin.
                    To continue to operate as an unfiltered source, the Water
                    Utility must maintain source water quality as defined by
                    a number of state and federal regulations. In 1996, the Utility
                    Land Management Plan estimated, that if water quality declined
                    below required surface water standards, the PW&U could
                    be required under law to build a filtration plant. The estimated
                    costs of a filtration plant at that time were $12 million
                    for construction and $1.3 million annually in operation and
                    maintenance costs. 
                  Timber harvest activities provide the PW&U with substantial
                    revenues ($1-1.5 million annually) that are dedicated primarily
                    to reduction of Utility operating expenses. The result is
                    considerable ratepayer savings. Logging activities conducted
                    in the Union River Basin, however, may be limited to insure
                    adequate protection of the unfiltered status of the Union
                    River water source.
                  The forest management term used most often to refer to an
                    individual management unit or area is stand. Forest stands
                    may be as small as less than an acre or as big as several
                    hundred acres. For GIS purposes, stands may be referred to
                    as polygons. When developing management plans for forested
                    landscapes, the characteristics of multiple stands must be
                    considered. 
                      
                      The majority of the forestland base is covered with second
                      growth forest (96%) with an average age of 50 years. These
                      forests were naturally regenerated as a result of a combination
                      of logging and fire activity. Douglas-fir is the dominant
                      tree species present accounting for 79% of the inventory.
                      The remaining tree species are western hemlock (11%), red
                      alder (7%), big leaf maple (2%), western red cedar (1%),
                      and a small component of western white pine and black cottonwood.
                      For many years, laminated root disease, which attacks Douglas-fir
                      trees, was found to be a problem throughout the utility
                      lands. Since the writing of the 1996 Plan, the major thrust
                      of forest harvest activities has been the removal of trees
                      (primarily Douglas-fir) from areas infected by root rot.
                      Species, such as red cedar, western white pine, western
                      hemlock, and alder that are resistant to root disease,
                      were propogated in harvested root rot pockets. Today much
                      of the root rot infestation has been controlled. 
                  Since 1996, substantial changes to the Forest Practices
                    Regulations of Washington State have been made to protect
                    native fish and water quality. The current regulations are
                    referred to as the Forest and Fish Rules. Regulatory changes
                    include new protocols for stream typing and riparian buffer
                    delineations. As a result of these new regulations, a larger
                    portion of the forest area within Utility owned forests,
                    than was expected in 1996, could be unavailable for timber
                    harvest. Other protected species can also impact availability
                    of stands for harvest. 
                  As the forest becomes older, larger portions of the forests
                    will need to be scheduled for final harvest and regeneration.
                    The scheduling and location of such harvest activities may
                    be sensitive to a wide assortment of issues including impacts
                    to surface water turbidity and impacts to viewscapes. 
                  The 58,000 residents that are served by the City of Bremerton
                    Water Utility enjoy the benefits of unfiltered clean water
                    delivered to their homes at rates well below what neighboring
                    community water customers are required to pay. Receipts from
                    the sale of forest products have historically generated $1-1.5
                    million annually in fiscal return to the Water Utility. These
                    revenues are primarily used to reduce expenses for the water
                    system and lessen the level of user rate increases. Presently
                    most of the forest is mature; a strategy to broaden the distribution
                    of ages classes and species mixtures may be desirable to
                    help insure a future sustainable flow of revenues from harvest
                    activities. 
                  Because of the above-mentioned issues and other challenges
                    to forest management such as maintenance of sites for biosolids
                    applications and reservoir/intake protection areas, there
                    is need for PW&U to reassess and update forest resource
                    planning. Developments in technology will be helpful to such
                    a process. 
                  Objective
                  The objective is to provide PW&U with accurate
                    forest stand information and alternative landscape management
                    plans to maximize water protection, revenue production, and
                    water production within specified constraints for the duration
                    of the planning period. 
                  Management of forest resources under variable
                    and sometimes conflicting objectives has become complex and
                    problematic.
                      At the University of Washington, College of Forest Resources,
                      there is a program designed to utilize the latest science
                      and best technology to assist forest managers and decision
                      makers in the creation of forest plans. This program is
                    called the Rural Technology Initiative (RTI). 
                  RTI has assembled a team of professional scientists,
                    staff, and graduate students to utilize and develop software-modeling
                      capabilities in support of problem solving for complicated
                      natural resource management challenges. Software capabilities
                      include the Landscape Management System (LMS), a publicly
                      available forestry software package developed at the UW.
                      LMS utilizes forest inventory data and GIS layers to create
                      a virtual model of the forest landscape. Incorporated in
                      LMS are growth and yield models, analytical programs, and
                      visualization capabilities from both the stand and the
                      landscape perspective. Another important software program
                      utilized
                      by RTI in the development of alternative forest plans is
                      the virtual mapping program, ArcView, developed by the
                      Environmental Systems Research Institute (ESRI). ArcView
                      technology allows
                      the operator to create spatial simulations such as viewscapes
                      and riparian buffer overlays. Such combined capabilities
                      bring needed powerful modeling and analytical support to
                    the forest planning process.
                  It is the objective of this proposal that RTI
                    personnel work directly with PW&U staff to develop alternative landscape
                      plans for the forestlands owned and managed by the Water
                      Utility. A range of management alternatives and inventory
                      information updated from the 1996 Land and Forest Management
                      Plans and the accompanying 2000 Addendum will be helpful
                      to PW&U as new decisions are needed concerning the intensity
                      of forest management within the watershed. All new information
                      derived from this project is primarily for the benefit of
                      PW&U managers and staff but may be secondarily beneficial
                      to help members of the public to better understand forest
                      management issues on Water Utility lands. The planning horizon
                      will be 50 years examined in 5-year growth and operational
                      cycles.
                      
                      Methods
                  Approach
                  Goals and constraints within water supply areas
                    are unique. Therefore this project will treat the PW&U
                    forestlands as two distinct watershed-planning units, “Union
                    River” Forestlands and “Other” Lands. PW&U
                    has provided a preliminary set of goals and constraints unique
                    to each planning unit. 
                  Union River Forestlands: The Water Utility
                    currently owns 2,777 acres in the Union
                    River drainage basin.
                    The Union
                      River Basin is heavily forested and the composition of
                    the
                      forest and vegetation is greatly influenced by previous
                    logging and fire history. Much of the timber is 50–60
                    years old. The Union River and minor creeks in the drainage
                    convey
                      water to the Union River Reservoir from which water is
                    drawn for municipal consumption. The primary goal of this
                    watershed
                      planning area is to maintain the present unfiltered status
                      of the surface water supply through meeting requirements
                      of federal and state regulations. The secondary goals include
                      forest health, annual timber revenues, and sustainable
                    volumes of harvestable timber supply. Constraints to timber
                    management
                      include surface water quality and treatment regulations,
                      other regulations such as state forest practice regulations,
                      current distributions of stand ages and characteristics,
                      spatial proximity of forest stands to reservoir/intakes,
                      topographical limitations on operations, and viewscape
                    concerns.
                  Other Lands: In 1997, based on GIS
                    analysis, the Water Utility estimated that PW&U lands
                    outside of the Union River Forestlands comprised 5,409 acres.
                    These lands are Gorst
                      Creek Drainage Basin (2892 acres), Heins Creek Drainage
                    Basin (435 acres), Anderson Creek Drainage Basin (347 acres),
                    and
                      other scattered parcels (1,735 acres). Within these drainages
                      are located 12 wells from which PW&U extracts 40% of
                      its available water supply. Since protection of surface
                      water is not as critical of a concern for this area, PW&U
                      has identified the generation of sustainable income from
                      timber
                      harvest activities as the primary management goal for these
                      forestlands. Forest health and transitional strategies
                      toward future sustainability of harvest volumes through
                      age class
                      distribution adjustments are important goals here as well.
                      Unique to this area is the practice of recycling biosolids
                      from the City wastewater treatment plant to produce soil
                      improvements and increased forest productivity while disposing
                      of wastewater. The City has estimated that its program
                      for the application of biosolids (currently on about 430
                      acres)
                      saves the City approximately $200,000 annually. Identified
                      to be considered, as management constraints on timber harvest
                      within these lands are regulations, stand characteristics,
                      financial needs/markets, the need for appropriate forest
                      conditions in adequate supply for use as biosolid application
                      sites, and concerns over viewscape quality.
                  Geographical Information Systems 
                  Modern forest management planning processes
                    for the integration of multiple values that maximize prioritized
                    outputs
                        have been aided tremendously by developments in Geographical
                        Information System (GIS) technologies. Spatial issues
                        such
                        as road distributions,
                        stand inventory locations, stream buffers, sediment flows,
                        unstable slopes, wildlife habitat areas, and others can
                        be examined with unprecedented analytical capability.
                        The result
                        is more accurate predictability of environmental consequences
                        associated with management choices and subsequently greater
                        operational efficiencies. In this project, the RTI GIS
                        Specialist will work with PW&U to assemble all useful mapping layers
                        and orthophotos for virtual spatial analysis for the Bremerton
                        PW&U. This spatial database will be linked with inventory
                        information. Individual management unit polygons (stands)
                        will be delineated for all operationally unique areas located
                        within the two PW&U planning units (landscapes). Outputs
                        from growth and yield simulations for each planning period
                        and for selected proposed management alternatives will be
                        presented with spatial reference. All mapping capabilities
                        that are generated as part of this project will be made available
                        to the PW&U Forest Manager.
                  Landscape Management System
                  Suggested management alternatives will involve
                    in-depth analysis of specific consequences and tradeoffs
                    of
                        various management
                          actions. Management alternatives will need to be spatially
                          and temporally sensitive. It has been identified as
                        an important objective of the PW&U, for example, that harvest volumes
                          and revenues associated with timber management be sustainable
                          into the future. Estimation of such output flows through
                          time will require sophisticated modeling and analytical capabilities.
                          The Landscape Management System (LMS) has been developed
                          at the University of Washington for just this purpose. LMS
                          is a computerized system that integrates landscape level
                          spatial information, stand-level inventory data, and individual
                          tree growth models to project changes through time across
                          forested landscapes. LMS coordinates the execution and information
                          flow between many different computer programs (40+). These
                          programs: format, classify, summarize, and export information;
                          project tree growth and snag decay; manipulate stand inventories;
                          and present stand and landscape level visualization and graphics. 
                  Portfolio Alternatives
                  The two virtual planning units, Union River Forestlands
                    and Other Lands, will be created as LMS “portfolios” which
                    will be made up of all stand polygon information associated
                    with each of the two planning units (landscape areas). RTI
                    staff will work with PW&U and other consultants to assemble
                    all needed data for the preparation of two LMS portfolios
                    for PW&U forestlands designated for investigation. Most
                    forest inventory information available for the study areas
                    is from fieldwork accomplished as part of the planning process
                    in 1996. This data will be “grown” forward used
                    the Pacific Northwest Variant of the Forest Vegetation Simulator
                    (FVS), a regional growth model. In areas where harvest activities
                    have occurred with the last six years some new inventory
                    data has been collected and will be used. Where inventory
                    data is found to be insufficient RTI staff will work with
                    PW&U to generate needed information. Two portfolios will
                    be created from which to develop alternative management approaches
                    for PW&U use. Upon completion of portfolio construction
                    for Union River Forestlands and Other Lands, RTI staff will
                    work with PW&U to develop and model alternative approaches
                    for the management of the two planning units for 50 years.
                    Outputs from the modeled alternatives will be presented in
                    5-year increments. These 5-year increments will be considered
                    as management cycles. Objectives of all management alternatives
                    to be developed for the two planning units will be reflective
                    of the stated objectives of the Water Utility. All alternatives
                    will be designed to protect City water quality and to meet
                    the requirements of all applicable laws. Differences in alternative
                    approaches will reflect a variety of strategies conceived
                    to maximize desired outputs within the operational opportunities
                    and constraints identified by the Water Utility. Alternatives
                    will be evaluated relative to metrics of economic and ecological
                    performance over time.
                  A market assessment of potential forest outputs will characterize
                    transitional issues required to reach sustainable levels
                    of income and harvest volumes as well as the ability to cover
                    management costs while producing reasonable returns to the
                    Utility. The economic activity produced by operations will
                    also support the local economy while contributing to improved
                    environmental amenities. Pertinent to examination of sustainable
                    timber harvest flows will be issues of age class distribution
                    and future land use conversion. Different estimations of
                    the impacts of these two issues will be incorporated into
                    the management alternatives.
                  Active management and rotation age adjustments can interact
                    to produce a shifting mosaic of forest conditions. Visualizations,
                    graphical analysis, and mapping imagery for each management
                    scenario will be made to aid Utility managers in determining
                    and understanding the consequences and/or tradeoffs of each
                    alternative. 
                  Simulations of alternatives for comparison will be conducted
                    on 5-year growth cycles for a total planning period of 50
                    years. It is the suggestion of the project team that, in
                    the spirit of adaptive management, 5-year intervals are appropriate
                    periods of time to anticipate a need for revisitation of
                    all planning assumptions and output estimates. However, since
                    a goal of this project is to plan for a transition of activities
                    within the forestland base towards output levels of enduring
                    sustainability, a longer time frame than one growth cycle
                    is needed for strategic investigation. Fifty years was selected
                    as the planning cycle for this project to be representative
                    of the time interval from regeneration to final harvest for
                    an idealized forest stand within the watershed. Fifty years
                    is also a sufficient time period to begin to see the implications
                    of adjustments to age class distributions and species mixtures
                    to estimates of revenue and harvest flow sustainability.
                  Deliverables:
                  1) Preliminary and Final Report 
                  2) All data and modeling outputs 
                  3) Presentations by RTI staff to Utility personnel as requested