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HomeMy WebLinkAboutStaff Report DNR 1.19.2021KITTITAS COUNTY Board of County Commissioners AGENDA STAFF REPORT AGENDA DATE: January 19, 2021 Consent Agenda ACTION REQUESTED: Acknowledge a request by DNR (Department of Natural Resources) to forgive lease payment late fees. LEAD STAFF: Ken Grannan, Airport Director BACKGROUND: DNR signed a lease with Kittitas County on May 11, 1977, to lease 8.12 acres at Bowers Field with an additional 5.2 acres abutting their current acreage in 2012. DNR has resided on that leased property in good standing until July 2019. In July 2019 DNR’s lease rate was up for negotiation and under unclear circumstances those negotiations didn’t transpire until March 3, 2020. At this time, it’s my understanding that DNR and Public Works could not come to an agreement on new lease terms, hence DNR held payment until the addendum was finalized. This addendum included a late fee of 18% per annum, levied monthly, which was signed on March 3, 2020. Payment was made in March 2020 reflecting the 2019 payment, making the payment several months late. DNR’s next payment would be due on July 1, 2020, to date this payment has not been received. Per DNR this payment was not made due to not receiving an invoice for the lease payment due July 1, 2020. DISCUSSION: There could have been a lack of communication due to the changes with Public Works and the development of the new Airport Department in 2020, resulting in a lack of invoicing. Looking at billing and payment history, DNR had received invoices at approximately the same time of the year with payment following invoicing. Based on the timing of the payment and DNR being a large institution, it could have easily been confused with their 2020 annual payment. Due to the department change and lack of invoicing, DNR is requesting a one-time forgiveness of late fees. INTERACTION: Auditors Office, DNR RECOMMENDATION: Airport staff relies on the decision of the BoCC based on the information presented. We would offer a suggestion of accepting one late fee of $682.05 if the BoCC considered not forgiving the entire late fee f $3,510.25, providing the account is brought current in a timely manner. HANDLING: None ATTACHMENTS: Lease Agreement, Lease Amendment, Letter and Statement