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KITTITAS COUNTY <br />Board of County Commissioners <br /> <br />AGENDA STAFF REPORT <br /> <br />AGENDA DATE: January 19, 2021 Consent Agenda <br /> <br />ACTION REQUESTED: Acknowledge a request by DNR (Department of Natural <br />Resources) to forgive lease payment late fees. <br /> <br /> <br />LEAD STAFF: Ken Grannan, Airport Director <br /> <br />BACKGROUND: DNR signed a lease with Kittitas County on May 11, 1977, to lease <br />8.12 acres at Bowers Field with an additional 5.2 acres abutting <br />their current acreage in 2012. DNR has resided on that leased <br />property in good standing until July 2019. In July 2019 DNR’s <br />lease rate was up for negotiation and under unclear circumstances <br />those negotiations didn’t transpire until March 3, 2020. At this <br />time, it’s my understanding that DNR and Public Works could not <br />come to an agreement on new lease terms, hence DNR held <br />payment until the addendum was finalized. This addendum <br />included a late fee of 18% per annum, levied monthly, which was <br />signed on March 3, 2020. Payment was made in March 2020 <br />reflecting the 2019 payment, making the payment several months <br />late. DNR’s next payment would be due on July 1, 2020, to date <br />this payment has not been received. Per DNR this payment was <br />not made due to not receiving an invoice for the lease payment due <br />July 1, 2020. <br /> <br />DISCUSSION: There could have been a lack of communication due to the changes <br />with Public Works and the development of the new Airport <br />Department in 2020, resulting in a lack of invoicing. Looking at <br />billing and payment history, DNR had received invoices at <br />approximately the same time of the year with payment following <br />invoicing. Based on the timing of the payment and DNR being a <br />large institution, it could have easily been confused with their 2020 <br />annual payment. Due to the department change and lack of <br />invoicing, DNR is requesting a one-time forgiveness of late fees. <br /> <br />INTERACTION: Auditors Office, DNR <br /> <br />RECOMMENDATION: Airport staff relies on the decision of the BoCC based on the <br />information presented. We would offer a suggestion of accepting <br />one late fee of $682.05 if the BoCC considered not forgiving the