Yes, it is Ground Cone. Your photos of the mature cones look very much like California Ground Cone (Boschniakia strobilacea).  These strange plants grow in relationship with roots of  both madrone (Arbutus) and manzanita (Arctostaphylos spp.);They are perennial parasites. The blooms are purplish with a 3-lipped, somewhat hooded flower.   California Ground Cone is one of three species of Boschniakia on the west coast. It is found from Southern California to Southern Oregon.The other species are Vancouver Ground Cone, which is found  on salal and kinnikinnick  from southwestern British Columbia to Northern California and  Northern Ground Cone, which is tall and slender and not found south of  northern British Columbia. It wasn't stated whether the flowering plant was found in the same place: While it is also ground cone, the yellowish color of the blooms and the number of "lips" on the flowers suggests the pictured flower is from a Vancouver Groundcone. Just for fun, you might want to know that a single ground cone can produce more than a third of a million seeds!

Thank you Marjorie. The yellowish flower and the last photo are of the same plant that I took last year. I had planned on taking a photo of the plant this year, pre bloom, but a tree fell on my subject plant. I found an old cone close to where this plant was located and found it was sending up new growth, picture 1. At first we thought this might be a Fringed Pinesap but changed our mind when saw pictures and a description of Ground Cone. I have become a little obsessed with this strange plant. I hope to continue to take more photos throughout it's life cycle. I may have to plant a madrone to see if I can get the seeds to grow.
Again, thank you for your help! 

I'm going to try to send you two photos from Western Forests (an Audubon publication) and Plants of the Pacific Northwest, Pojar and MacKinnon.  The first shot is of  the California Ground Cone, described as 4-10 inches high with 5/8 inch flowers. The cone is.widest near the blunt tip.Flowers are somewhat lavender colored, with 3 lower lips and a hooded upper lip.  associated with madrone and manzanita. The second is Vancouver Ground Cone, 12 CM high ( about 4 inches and the flowers 1.5 CM long (about 1/2 inc salal (coastal), but also other members of the heather family, such as kinnikinnick. Since I can't help but wonder if you might have both species on the property, or you have Vancouver Grand Cone in both color phases, I hope the photos and measurements might help resolve the quandry. I can see why you are fascinated about this unusual plant. I guess we need to remember though that it is a parasite and may be weakening to its host. Thanks for sharing it with us.

Sorry--i forgot to add the pictures!