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