(1) The department, in addition to the economic evaluation required by RCW 79.01.095, shall periodically evaluate urban lands to determine the appropriate management prescription for each parcel.

(2) The department shall, as a part of its periodic evaluation, review the appropriate uses of urban lands with local governments in accordance with RCW 79.01.784.

(3) Where urban land is to be exchanged or sold, other than by public auction, the department shall have the value determined by a qualified appraiser. All appraisals shall be sent to the board at least ten days in advance of any board action on such exchange or sale.

(4) The department shall annually report to the board on its major activities and accomplishments in the past year and its plans for the ensuing year.