2013-02-14T11:04:27-06:00 2012-06-30 271155496 ROBERT LEE & ASSOCIATES LLP 226 AIRPORT PARKWAY SUITE 350 SAN JOSE CA 95110 990 2011-07-01 942392007 PENINSULA OPEN SPACE TRUST PENI 6508547696 222 HIGH STREET PALO ALTO CA 94301 WALTER T MOORE 6508547696 2013-02-11 1 NASI RAISSIAN P01023106 4088556770 2011 2016-03-07 17:11:31Z WALTER T MOORE 222 HIGH STREET PALO ALTO CA 94301 131522180 0 X HTTP://WWW.OPENSPACETRUST.ORG/ X 1977 CA PROTECT AND CARE FOR OPEN SPACE, FARMS AND PARKLAND IN AND AROUND SILICON VALLEY. 14 14 36 180 0 0 6735175 15003663 433060 353929 5228210 7852802 0 0 12396445 23210394 4125578 18816193 0 0 2980909 2886795 0 0 1847584 3796600 2726436 10903087 24429424 1493358 -1219030 246168356 238471093 6954147 6806091 239214209 231665002 X PENINSULA OPEN SPACE TRUST (POST) PROTECTS AND CARES FOR OPEN SPACE, FARMS AND PARKLAND IN AND AROUND SILICON VALLEY. SINCE ITS FOUNDING IN 1977, POST HAS PROTECTED MORE THAN 70,000 ACRES OF LAND IN SAN MATEO, SANTA CLARA AND SANTA CRUZ COUNTIES. 0 0 19023022 18738196 AS PART OF POST'S WORK TO ADDRESS URGENT CONSERVATION NEEDS IN AND AROUND SILICON VALLEY, POST PROTECTED A TOTAL OF 9,199 NEW ACRES THROUGH FEE TITLE ACQUISITION OR UNDER CONSERVATION EASEMENT IN FISCAL YEAR 2012. WE ALSO TRANSFERRED A TOTAL OF 5,219 ACRES TO PUBLIC AGENCIES FOR PERMANENT PROTECTION. PROJECT HIGHLIGHTS ARE LISTED BELOW:IN AUGUST, 2011, POST TRANSFERRED 140 ACRES AT PILLAR POINT BLUFF NEAR MOSS BEACH TO SAN MATEO COUNTY. THE HABITAT-RICH BLUFF TOP WAS ADDED TO THE COUNTY'S JAMES V. FITZGERALD MARINE RESERVE FOR PERMANENT PROTECTION. THE PROPERTY INCLUDES A PORTION OF THE CALIFORNIA COASTAL TRAIL AND IS A POPULAR SPOT WITH HIKERS AS WELL AS WITH A WIDE VARIETY OF WILDLIFE, INCLUDING BIRDS AND SEA CREATURES.IN SEPTEMBER 2011, POST PURCHASED 160 ACRES OF CONSERVATION LAND IN SOUTH SANTA CLARA COUNTY NEAR MORGAN HILL. THE LAND, ADJACENT TO RANCHO CANADA DEL ORO OPEN SPACE PRESERVE, CONTAINS STEEP SLOPES AND CHAPARRAL-COVERED HILLSIDES AND IS STRATEGICALLY LOCATED TO HELP PRESERVE WILDLIFE CORRIDORS AND EXPAND PUBLIC TRAILS BETWEEN THREE MAJOR PARKS: ALMADEN QUICKSILVER COUNTY PARK, SIERRA AZUL OPEN SPACE PRESERVE, AND RANCHO CANADA DEL ORO OPEN SPACE PRESERVE. WORKING WITH ITS CONSERVATION PARTNERS TOWARD PERMANENT LAND PROTECTION, POST COMPLETED A LARGE AND IMPORTANT PROPERTY ACQUISITION IN FISCAL YEAR 2012: THE 8,532-ACRE CEMEX REDWOODS PROPERTY IN DAVENPORT. THE PROPERTY WAS ACQUIRED IN DECEMBER 2011 THROUGH POST'S PARTNERSHIP IN THE LIVING LANDSCAPE INITIATIVE, A COLLABORATION OF BAY AREA LAND CONSERVATION GROUPS INCLUDING POST, THE LAND TRUST OF SANTA CRUZ COUNTY, THE NATURE CONSERVANCY, SAVE THE REDWOODS LEAGUE AND SEMPERVIRENS FUND. THE ACQUISITION PRESERVES LARGE SWATHS OF REDWOOD FOREST AND WATERSHED LAND AND IS THE LARGEST LAND PROTECTION PROJECT IN THE HISTORY OF POST.WITH THE CEMEX REDWOODS ACQUISITION, POST LAUNCHED A NEW PROPERTY PROTECTION INITIATIVE CALLED THE HEART OF THE REDWOODS CAMPAIGN. THE EFFORT SEEKS TO PROTECT 20,000 ACRES OF THE LAST REMAINING REDWOOD FORESTS IN THE SANTA CRUZ MOUNTAINS OVER THE NEXT FIVE YEARS. POST HOPES TO RAISE $50 MILLION IN PUBLIC AND PRIVATE FUNDS FOR REDWOOD PROTECTION THROUGH THIS EFFORT, AND TO DATE HAS RAISED $20.9 MILLION TOWARD THAT GOAL.ALSO IN FISCAL YEAR 2012, POST COMPLETED THE LONG-AWAITED TRANSFER OF ITS RANCHO CORRAL DE TIERRA PROPERTY TO THE GOLDEN GATE NATIONAL RECREATION AREA (GGNRA). SEVEN YEARS AGO, CONGRESS APPROVED A BOUNDARY EXPANSION TO INCLUDE THE VAST MAJORITY OF THE 4,262-ACRE PROPERTY AS PART OF THE GGNRA, WHICH IS OWNED AND MANAGED BY THE NATIONAL PARK SERVICE. IN THE INTERVENING YEARS, POST PURSUED FEDERAL APPROPRIATIONS FOR THE PROJECT. ONCE THAT PROCESS WAS COMPLETE, WE WERE ABLE TO TRANSFER NEARLY 4,000 ACRES OF THE PROPERTY TO THE NATIONAL PARK SERVICE (NPS) SO THAT IT CAN SERVE AS THE SOUTHERN GATEWAY INTO THE GGNRA LANDS, WHICH ARE OWNED AND MANAGED BY THE NPS.IN APRIL 2012, POST ACQUIRED THE 117-ACRE HENDRYS CREEK PROPERTY IN LOS GATOS. BORDERED ON THREE SIDES BY THE SIERRA AZUL OPEN SPACE PRESERVE, THE SOUTH BAY LANDSCAPE IS RICH IN WATER RESOURCES AND FISH HABITAT AND IS STRATEGICALLY LOCATED FOR THE FUTURE EXPANSION OF SURROUNDING PUBLIC OPEN SPACE AND PARKLAND.FINALLY, IN JUNE 2012, POST ANNOUNCED A PARTNERSHIP PROJECT WITH SAVE THE REDWOODS LEAGUE AND THE PORTOLA AND CASTLE ROCK FOUNDATION TO KEEP PORTOLA REDWOODS SATE PARK OPEN. DURING THE RECENT BUDGET CRISIS FACING CALIFORNIA STATE PARKS, PORTOLA REDWOODS WAS PLACED ON THE IMMINENT STATE PARKS CLOSURE LIST. IN RESPONSE, POST AND ITS PARTNERS DEVISED A PLAN TO PROVIDE SHORT-TERM OPERATING FUNDS TO KEEP THE PARK OPEN FOR THE NEXT 12 MONTHS AS WELL AS SUPPORT FOR LONG-TERM INFRASTRUCTURE IMPROVEMENTS AND SUSTAINABILITY PLANNING SO THAT THE PARK CAN HELP SUPPORT ITSELF WITH INCREASED REVENUE. 1999704 78000 321548 POST CURRENTLY HOLDS 30,098 ACREAS IN FEE OR UNDER EASEMENT. THE ORGANIZATION HAS AN ESTABLISHED STEWARDSHIP PROGRAM FOR THE LANDS IT OWNS THAT INCLUDES RESOURCE CONSERVATION PLANNING AND MANAGEMENT, ALONG WITH ACTIVE USES OF LAND FOR CONSERVATION GRAZING AND AGRICULTURE WHERE APPROPRIATE. POST WORKS TO PROTECT AND MANAGE LANDS IN ITS POSSESSION THROUGH SITE SPECIFIC STEWARDSHIP PLANS FOR THE NATURAL RESOURCES ON EACH PROPERTY. POST STAFF AND VOLUNTERS ACTIVELY MONITOR THE ACREAGE ON WHICH POST HOLDS EASEMENTS OR RESTRICTIONS. VOLUNTEERS ALSO ASSIST WITH STEWARDSHIP PROJECTS ON POST OWNED LAND. IN TOTAL, POST VOLUNTEERS CONTRIBUTED AN IMPRESSIVE 3,847 HOURS OF WORK TIME IN THE PAST FISCAL YEAR. POST ALSO CONTINUES TO PLAY A LEADERSHIP ROLE AS PART OF A WORKING GROUP OF ORGANIZATIONS AND AGENCIES ADDRESSING THE THREAT POSED BY HYPERICUM CANARIENSE, A HIGHLY DAMAGING AND AGGRESSIVE INVASIVE EXOTIC PLANT THAT IS SPREADING ALONG THE SAN MATEO COAST. POST CONTINUES TO HOLD AND MANAGE THE 5,777 ACRE CLOVERDALE COASTAL RANCHES. POST ACQUIRED THIS LAND COMPLEX IN 1997. AT THE TIME, THE PROPERTY TOTALED 6,743 ACRES; OVER THE YEARS, POST HAS TRANSFERRED PORTIONS OF THE PROPERTY SUBJECT TO CONSERVATION EASEMENT TO OTHER OWNERS. A RESIDENT RANCH MANAGER IS ON SITE TO MANAGE EROSION CONTROL, COORDINATE FUELS REDUCTION PROJECTS, PERFORM HABITAT RESTORATION ACTIVITIES, MANAGE NON-NATIVE PLANT SPECIES REMOVAL PROJECTS, AND OPERATE A PUBLIC TRAIL. IN THE PAST FISCAL YEAR, POST CONTINUES TO WORK TO ELIMINATE THE INVASIVE EXOTIC WEED HYPERICUM CANARIENSE FROM THE PROPERTY, CONTROL PAMPAS GRASS AND IMPROVE CRITICAL POND AND WETLAND HABITAT FOR THREATENED AND ENDANGERED SPECIES ON THE LAND, INCLUDING THE CALIFORNIA RED-LEGGED FROG AND THE SAN FRANCISCO GARTER SNAKE. IN FISCAL YEAR 2012, POST ALSO CONTINUED ITS EFFORTS TO CONTROL EROSION PRONE AREAS ON THE PROPERTY. POST ALSO CONTINUES TO CONDUCT SIMILAR RESOURCE PROTECTION AND RESTORATION PROJECTS ON ITS OTHER FEE LANDS. 571648 32381 TO FURTHER ITS COMMUNITY OUTREACH AND EDUCATION EFFORTS, IN FISCAL YEAR 2012 THE ORGANIZATION HOSTED FOUR SPEAKERS AS PART OF ITS 19TH ANNUAL WALLACE STEGNER LECTURE SERIES, WHICH IS OPEN TO THE PUBLIC. THIS YEAR'S SERIES FEATURED FOUR SPEAKERS: AUTHOR AND SUSTAINABLE FARMER JOEL SALATIN, ETHNOBOTANIST AND AUTHOR WADE DAVIS, SCIENCE JOURNALIST AND AUTHOR ELIZABETH KOLBERT, AND WILDLIFE PHOTOGRAPHER FRANS LANTING. POST ALSO DEVELOPED AND MAILED THREE ISSUES OF ITS DONOR NEWSLETTER, "LANDSCAPES," TO APPROXIMATELY 8,000 FAMILIES AND OTHER INTERESTED PEOPLE. THE NEWSLETTER REPORTED ON POST'S LAND CONSERVATION WORK THROUGHOUT THE YEAR, INCLUDING ACQUISITIONS OF LAND AND CONSERVATION EASEMENTS AS WELL AS PROPERTY TRANSFERS AND LAND STEWARDSHIP PROJECTS (AS REPORTED ABOVE). POST ALSO CONTINUED ITS PARTICIPATION IN THE CALIFORNIA COUNCIL OF LAND TRUSTS, AN ASSOCIATION OF LAND CONSERVANCIES THROUGHOUT CALIFORNIA AND THE BAY AREA OPEN SPACE COUNCIL, AN ASSOCIATION OF LAND CONSERVATION ORGANIZATIONS THROUGHOUT THE SAN FRANCISCO BAY AREA REGION. 21594374 1 1 0 1 0 0 1 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 1 0 0 0 0 1 0 0 1 0 1 66 0 1 36 1 0 0 0 0 0 0 0 0 0 0 X 14 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X X HEATHER KANTOR 6508547696 222 HIGH STREET PALO ALTO CA 94301 X BRAD O'BRIEN 5.00 X X 0 0 0 ANDY CUNNINGHAM 1.00 X 0 0 0 DENNIS DEBROECK 1.00 X 0 0 0 DIANE GREENE 2.00 X 0 0 0 DONNA DUBINSKY 2.00 X 0 0 0 F WARD PAINE 2.00 X 0 0 0 JAN GARROD 2.00 X 0 0 0 JOHN CHAMBERLAIN 1.00 X 0 0 0 LARRY JACOBS 2.00 X 0 0 0 MARK WAN 3.00 X 0 0 0 MATT MILLER 2.00 X 0 0 0 PAUL NEWHAGEN 3.00 X 0 0 0 ROBERT C KIRKWOOD 2.00 X 0 0 0 SANDRA THOMPSON 1.00 X 0 0 0 WALTER T MOORE 40.00 X 229733 0 32797 KARIE THOMSON 1.00 X 0 0 0 HEATHER KANTOR 40.00 X 175880 0 23486 PATRICIA SUVARI 40.00 X 0 0 0 ANNE TRELA 40.00 X 155450 0 22047 PAUL RINGGOLD 40.00 X 102116 0 15553 MARK DAWSON 40.00 X 117927 0 17410 AUDREY C RUST 40.00 X 362943 0 20379 1144049 0 131672 6 1 1 0 0 15003663 2674028 15003663 RENTAL INCOME 531390 309263 309263 LECTURE SERIES INCOME 611600 32381 32381 MISC PROGRAM INCOME 900099 12285 12285 353929 4580945 4580945 111583643 108311786 3271857 3271857 3271857 23210394 353929 0 7852802 18816193 18816193 945506 441819 232367 271320 1573035 750391 227634 595010 85578 41964 10978 32636 167944 75102 23354 69488 114732 53274 17496 43962 58129 42271 15858 32421 32421 12000 12000 356490 356490 1152716 636238 16932 499546 214713 76022 9292 129399 5602 2788 581 2233 13467 13467 28266 21751 1761 4754 61913 20954 14302 26657 230 230 134615 53590 16733 64292 77893 55990 4522 17381 LAND MAINTENANCE 265034 265034 EVENTS/DONOR RECOG. 89068 6053 2055 80960 PROPERTY TAXES 86325 86325 AMORTIZATION ASSET OBLI 57029 57029 80525 66119 4460 9946 24429424 21594374 987466 1847584 886741 848913 1109336 2121384 8244097 9727342 13622500 13289167 43253 58139 6258314 696833 5619215 5561481 108904234 114616397 10871617 10850319 96867363 81397951 246168356 238471093 544738 557087 12180 6409409 6236824 6954147 6806091 X 232736851 224742187 5841828 6312215 635530 610600 239214209 231665002 246168356 238471093 X -1219030 -6330177 X X 0 1 1 X 0 X 21630267 13682464 3941686 6735175 15003663 60993255 21630267 13682464 3941686 6735175 15003663 60993255 6865849 54127406 5577256 4948168 3999427 4744897 4902493 24172241 85165496 0.63560 0.54980 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12000 12000 24336566 24348566 1000000 250000 0 0 903596 531399 695154 1000000 3130149 4695224 200000 400000 325500 12000 937500 225899 132850 173789 250000 782538 1173807 X X X 33 11715.00 0 1 1 2309.00 89165 711826 -24930 -644 26489 659763 556034 60030 112310 16548 711826 470118 25000 60916 556034 0.00000 0.92500 0.07500 0 0 2351899 2351899 3522523 469670 3052853 383892 227163 156729 5561481 OTHER RECEIVABLE 42301 ASSET OBLIGATION 865728 LAND HELD FOR CONSERVATION 80325422 PROPERTY HELD FOR SALE 164500 81397951 AGENCY TRUST FUNDS 582521 LIABILITY UNDER CRUT 2926217 CONDITIONAL ASSET RETIREMENT OBLIGATIONS 1807247 STEWARDSHIP FUND 920839 6236824 23210394 24429424 -1219030 -6330177 -6330177 -7549207 16858627 -6330177 334900 -356490 -6351767 23210394 0 23210394 24407834 334900 -356490 -21590 24429424 0 24429424 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: LANE STEWARDSHIP ENDOWMENT: THESE FUNDS MAY BE USED FOR EXPENSES TO MAINTAIN TRAILS, REMOVE INVASIVE AND EXOTIC SPECIES, UNDERTAKE EROSION PREVENTION AND REPAIR, AND RESTORE PLANT AND ANIMAL HABITATS. STEWARDSHIP ACTION VENTURES ENDOWMENT:THESE FUNDS WILL BE USED FOR FORWARD-LOOKING STEWARDSHIP ACTIVITIES THAT WILL HELP ENSURE THE PRESERVATION OF KEY RESOURCES ON POST-PROTECTED LANDS INTO THE FUTURE. WILBUR'S WATCH ENDOWMENT:THIS GRANT IS RESTRICTED TO ACTIVITIES RELATED TO THE MAINTENANCE OF THE TRAIL AT WILBUR'S WATCH ON POST'S CLOVERDALE PROPERTY. THIS INCLUDES ANNUAL STEWARDSHIP SUCH AS MOWING, PAMPAS GRASS REMOVAL, AND MONITORING; REPLACEMENT OF ITEMS SUCH AS THE BENCH, TELESCOPE, AND SIGNAGE; AND REPAIR OF THE TRAIL. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION EVALUATES ITS UNCERTAIN TAX POSITIONS AND WILL RECOGNIZE A LOSS CONTINGENCY WHEN IT IS PROBABLE THAT A LIABILITY HAS BEEN INCURRED AS OF THE DATE OF THE FINANCIAL STATEMENTS AND THE AMOUNT OF THE LOSS CAN BE REASONABLY ESTIMATED. THE AMOUNT RECOGNIZED IS SUBJECT TO ESTIMATE AND MANAGEMENT JUDGMENT WITH RESPECT TO THE LIKELY OUTCOME OF EACH UNCERTAIN TAX POSITION. THE AMOUNT THAT IS ULTIMATELY SUSTAINED FOR AN INDIVIDUAL UNCERTAIN TAX POSITION FOR ALL UNCERTAIN TAX POSITIONS IN THE AGGREGATE COULD DIFFER FROM THE AMOUNT RECOGNIZED. AS OF JUNE 30, 2012 MANAGEMENT DID NOT IDENTIFY ANY UNCERTAIN TAX POSITIONS. PART XII, LINE 2D - OTHER ADJUSTMENTS: INVESTMENT MANAGEMENT FEES -356,490. PART XIII, LINE 2D - OTHER ADJUSTMENTS: INVESTMENT MANAGEMENT FEES -356,490. 1 SEMPERVIRENS FUND 419 SOUTH SAN ANTONIA RD SUITE 211 LOS ALTOS CA 94022 942155097 501(C)(3) 239226 STEWARDSHIP PROJECT- CASTLEROCK PROTECTION OF OPEN SPACE SAN MATEO COUNTY PARKS 455 COUNTY CENTER 4TH FLOOR REDWOOD CITY CA 94063 943306697 GOVERNMENT AGENCY 1973199 APPRAISAL LAND TRANSFER OF PILLAR POINT TO SAN MATEO COUNTY PARKS NATIONAL PARKS SERVICE 300 BUSH STREET SUITE 500 SAN FRANCISCO CA 94104 521086761 GOVERNMENT AGENCY 13029170 APPRAISAL LAND TRANSFER OF RANCHO CORRAL DE TIERRA TO THE NATIONAL PARKS SERVICE COASTSIDE LAND TRUST PO BOX 3205 HALF MOON BAY CA 94019 943290067 501(C)(3) 823872 APPRAISAL LAND TRANSFER OF WAVECREST TO THE COASTSIDE LAND TRUST CITY OF HALF MOON BAY 201 MEDIO AVE HALF MOON BAY CA 94019 931219763 GOVERNMENT AGENCY 666065 APPRAISAL LAND TRANSFER OF WAVECREST PARCELS TO THE CITY OF HALF MOON BAY MIDPENINSULA REGIONAL OPEN SPACE DISTRICT 330 DISTEL CIRCLE LOS ALTOS CA 94022 263602066 GOVERNMENT AGENCY 2006661 APPRAISAL LAND TRANSFER OF MADONNA CREEK PROPERTY TO MROSD CALIFORNIA COUNCIL OF LAND TRUSTS 1029 K ST SUITE 48 SACRAMENTO CA 95814 010826246 501(C)(3) 78000 PASS THROUGH GRANTS TO SUPPORT ACCREDITATION, COMMUNICATION, AND OUTREACH 6 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: FOR GRANTS RECEIVED, POST MONITORS THESE FUNDS THROUGH EXTENSIVE BUDGET TRACKING AND REPORTING ON THE USE OF THESE FUNDS TO THE GRANTING ORGANIZATIONS. REPORTS DETAILING THE USE OF FUNDS ARE TYPICALLY SUBMITTED TO THE GRANTING ORGANIZATION AT THE INTERIM OF THE GRANT PERIOD, THE END, OR BOTH. IN MOST CASES, FUNDS MUST BE COMPLETELY SPENT AT THE TIME OF THE FINAL REPORT, ENSURING THAT THE GRANTING ORGANIZATION IS MADE FULLY AWARE OF POST'S USE OF THE GRANTED FUNDS. FOR GRANTS MADE, POST MONITORS THE USE OF THESE FUNDS THROUGH CLOSE COORDINATION WITH THE GRANTEE TO ENSURE FUNDS ARE UTILIZED FOR THE INTENDED PURPOSE AS AGREED UPON BETWEEN THE ORGANIZATIONS. IN SOME CASES, A GRANT AGREEMENT IS SIGNED BY BOTH PARTIES IN WHICH WE MAY REQUIRE THE GRANTEE TO SUBMIT UPDATES ON THE USE OF FUNDS BY SPECIFIC DATES. IF A THIRD PARTY IS INVOLVED AS THE GRANTOR, AND POST SERVES AS THE PASS-THROUGH ENTITY, WE WILL MANAGE AND BE HELD RESPONSIBLE FOR THE REPORTING REQUIREMENTS SET BY THE GRANTOR. X X X X X 0 0 0 0 0 0 0 0 0 WALTER T MOORE 229571 0 0 0 162 0 16964 0 15833 0 262530 0 0 0 HEATHER KANTOR 175632 0 0 0 248 0 5733 0 17753 0 199366 0 0 0 ANNE TRELA 155288 0 0 0 162 0 11401 0 10646 0 177497 0 0 0 AUDREY C RUST 311072 0 0 0 51871 0 13495 0 6884 0 383322 0 0 0 LARRY JACOBS DIRECTOR OF POST 18200 SEE PART V - CONTRACT BETWEEN DIRECTOR LARRY JACOBS OF JACOBS FARMS AND POST TO LEASE 52 ACRES IN FY 2012 FOR ORGANIC FARMING. 0 X 46 564675 AVG HI/LOW GIFT DATE X 1 2106500 APPRAISAL X WINE, FOOD AND GIFT CERTIFICATES 7 2852 FAIR VALUE 0 1 1 THIRD PARTY USE: PART I, LINE 32B: POST DIRECTS OUR INVESTMENT ADVISORS, SANDHILL GLOBAL ADVISORS, TO SELL ALL NONCASH CONTRIBUTIONS OF STOCKS OR SECURITIES UPON RECEIPT FORM 990, PART VI, SECTION B, LINE 11 EACH YEAR, PRIOR TO SUBMISSION, THE AUDIT COMMITTEE SHALL ENSURE THAT POST'S FORM 990 IS REVIEWED BY A MEMBER OF THE COMMITTEE OR A DESIGNEE OF THE COMMITTEE WITH APPROPRIATE QUALIFICATIONS. IN ADDITION, THE DRAFT SUBMISSION WILL BE MADE AVAILABLE TO THE BOARD FOR REVIEW AND COMMENT. FORM 990, PART VI, SECTION B, LINE 12C WHEN JOINING THE ORGANIZATION'S BOARD OR STAFF, AND ON AN ANNUAL BASIS, BOARD MEMBERS, MEMBERS OF THE FINANCE AND AUDIT COMMITTEE NOT CURRENTLY SERVING ON THE BOARD, AND TOP STAFF COMPLETE A CONFLICT OF INTEREST STATEMENT. IF A CHANGE IN A PERSON'S MATERIAL INTEREST IN A MATTER THAT COULD AFFECT POST OCCURS, THAT PERSON MUST AMEND THE CONFLICT OF INTEREST STATEMENT. ALL DISCLOSURE STATEMENTS SHALL BE SUBMITTED TO THE PRESIDENT AND FILED WITH THE MINUTES. THE CHAIR OF THE BOARD GOVERNANCE COMMITTEE AND PRESIDENT SHALL REVIEW THESE STATEMENTS WITHIN A MONTH OF THEIR SUBMISSION DATE. FORM 990, PART VI, SECTION B, LINE 15 IT IS THE POLICY OF THE COMPENSATION COMMITTEE TO ANNUALLY REVIEW THE COMPENSATION OF ALL OFFICERS UTILIZING A COMPENSATION STUDY WITH MARKET DATA FROM BAY AREA COMPANIES. THE COMMITTEE ALSO REVIEWS PUBLICLY REPORTED COMPENSATION INFORMATION FROM FORM 990 OF RELEVANT NON-PROFITS. THE COMMITTEE CONSIDERS MULTIPLE FACTORS THAT AFFECT COMPENSATION COMPARISONS SUCH AS GEOGRAPHICAL COST OF LIVING, EXPERIENCE, QUALIFICATIONS, AND PERFORMANCE ACHIEVEMENTS. THIS REVIEW IS CONTEMPORANEOUSLY DOCUMENTED IN THE COMPENSATION COMMITTEE MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS AND FORM 990 ARE MADE AVAILABLE VIA THE ORGANIZATION'S WEBSITE EACH YEAR. EXPLANATION OF OFFICER SALARIES FORM 990, PART VII PATRICIA SUVARI, VP OF ACQUISITION AND GENERAL COUNSEL, JOINED THE ORGANIZATION IN FEBRUARY 2012 AND THEREFORE RECEIVED NO COMPENSATION FOR THE CALENDAR YEAR ENDING DECEMBER 31, 2011. SHE IS LISTED HERE BECAUSE SHE WAS AN OFFICER DURING THE TAX YEAR ENDING JUNE 30, 2012. AUDREY RUST RETIRED AS PRESIDENT AT THE END OF FISCAL YEAR 2011 AND THE AMOUNTS SHOWN AS COMPENSATION HERE REFLECT PAYMENTS MADE IN CALENDAR YEAR 2011 PER THE 990 INSTRUCTIONS. MS. RUST DID NOT RECEIVE ANY COMPENSATION DURING CALENDAR YEAR 2012. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -6,330,177. AUDIT COMMITTEE OVERSIGHT FORM 990,PART 12. LINE 2C THE ORGANIZATION HAS AN AUDIT COMMITTEE THAT IS CHARGED WITH THE OVERSIGHT OF THE AUDIT. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEARS. LAKE LUCERNE MUTUAL WATER COMPANY 222 HIGH STREET PALO ALTO CA 94301 942689518 DELIVER WATER, FOR IRRIGATION USE ONLY, TO ITS SHAREHOLDERS AT COST CA 501(C)(12) 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LAKE LUCERNE MUTUAL WATER COMPANY D 42301