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HomeMy WebLinkAbout2026-05-11-minutes-public-works-study-sessionKITTITAS COUNTY PUBLIC WORKS STUDY SESSION MINUTES COMMISSIONERS' AUDITORIUM, 205 WEST 5TH ROOM 109 Special Meeting MONDAY 1:30 PM MAY 11, 2026 Board members present: Chairman Cory Wright and Commissioner Laura Osiadacz. Others: Joshua Fredrickson, Arden Thomas, Lisa Godden, Public Works; Stephanie Hartung, Kittitas County Prosecutor's Office; One member of the public. At 1:30 PM Chairman Cory Wright opened the Public Works Study Session. NO CITIZEN COMMENTS REQUEST TO APPROVE A RESOLUTION TO AUTHORIZE EXECUTION OF THE CONTRACT AMENDMENT Arden Thomas briefed the Board of County Commissioners regarding a proposed amendment to the County's service contract with a private water bank. Arden Thomas stated the contract allows the County to issue mitigation from the private bank in the same manner as mitigation issued from the County's bank and helps ensure the water rights continue to mitigate new uses within Kittitas County. Arden Thomas advised the existing five-year agreement expires on May 18, 2026, and the water banker requested a five-year extension. Arden Thomas stated the amendment also recognizes an assignment of the water bank's interest to another entity. Arden Thomas explained the original contract only requires notice of the transfer; however, because the extension is being processed now, staff included the ownership change for clarity. Arden Thomas advised that the signatory entity remains the same and the change is effectively from a partial ownership model to a full ownership model with a revised name. Arden Thomas requested Board action to approve a resolution authorizing execution of the contract amendment. Commissioner Laura Osiadacz motioned for Public Works to prepare the enabling documents; Chairman Cory Wright seconded the Motion. Motion passed. 2026-05-11 MINUTES APPROVE A LETTER TO QUADCO AGENCIES Josh Fredrickson briefed the Board of County Commissioners regarding the QUADCO Rural Transportation Planning Organization and a proposed letter to the participating agencies. Josh Fredrickson stated QUADCO is a voluntary four -county regional transportation planning organization for Kittitas, Grant, Adams, and Lincoln Counties and the incorporated municipalities within those counties. Josh Fredrickson explained that the organization receives biennial Washington State Department of Transportation funding, a limited portion of which may be used for administration, with the balance intended to support regional planning work that can be leveraged for grants. Josh Fredrickson advised the rotating lead -agency model has become increasingly burdensome as state requirements for regional transportation planning have expanded. Josh Fredrickson stated the proposed letter would ask the other agencies to engage in discussion regarding QUADCO's current administrative model and future structure. Discussion was held regarding whether a standalone county RTPO could be explored in the future if that better serves Kittitas County's transportation planning needs. Josh Fredrickson requested approval of the letter to the participating QUADCO boards and agencies. Commissioner Laura Osiadacz motioned to approve a letter to QUADCO Agencies, Chairman Cory Wright seconded the Motion. Motion passed. CLE ELUM RIDGE Arden Thomas briefed the Board of County Commissioners regarding a draft letter to the Washington State Department of Natural Resources related to the Cle Elum Ridge project. Arden Thomas stated the project involves approximately 9,700 acres acquired for conservation purposes and currently managed by The Nature Conservancy while a long-term public landowner arrangement is being established. Arden Thomas advised the most recent proposal contemplates split ownership, with the northern two-thirds to be managed by the Department of Natural Resources and the southern one-third to remain with The Nature Conservancy and partners. Arden Thomas stated the Board has consistently identified three principal concerns: long-term capacity to manage wildfire risk and recreation demand, impacts to County infrastructure and services, and further reduction of the County's tax base through conversion of green -zone lands to permanent conservation status. Arden Thomas advised the proposed letter acknowledges that the Department of Natural Resources has been receptive to County concerns and asks the agency to assign staff to work with County staff on identifying green -zone parcels that may be appropriate for future surplus and 2026-05-11 MINUTES private economic opportunity. The Board indicated support for the proposed direction. KITTITAS COUNTY CWU TECHNOLOGY TRANSFER CENTER FEASIBILITY STUDY REPORT Josh Fredrickson briefed the Board of County Commissioners regarding the Kittitas County/Central Washington University Technology Transfer Center Feasibility Study Report, also referred to as the Old Heat Study. Josh Fredrickson reminded the Board that a draft report was previously presented in February and that staff had completed the next steps, including a capital stacking plan and grant support documentation, for future Board consideration. Josh Fredrickson stated the study was funded through the Washington State Community Economic Revitalization Board (CERB) with matching support from distressed county sales and use tax funds and was prepared in coordination with Central Washington University as owner of the building. Josh Fredrickson explained that the study evaluates how the existing facility could be repurposed to support entrepreneurship, technology, manufacturing, and broader economic growth in Kittitas County. Josh Fredrickson further advised the capital stacking plan identifies an estimated total project cost of approximately $10 million and outlines phased implementation options and potential funding strategies using public -private partnerships, local participation, state funding, grants, and business investment. Josh Fredrickson stated the materials are intended to support future grant applications and next -step planning with Central Washington University. Josh Fredrickson advised the final report, capital stacking plan, and supporting grant documentation would be bundled and brought forward at a future meeting for formal adoption. OTHER BUSINESS - NO ACTION TO BE TAKEN Arden Thomas briefed the Board of County Commissioners regarding recent FEMA communication on revised flood mapping for the eastern reach. Arden Thomas stated FEMA issued a Letter of Map Revision determination on April 29, 2026, establishing September 11, 2026, as the effective date for the revised mapping. Arden Thomas reminded the Board that the revisions had previously been reviewed in an August study session and that staff had already conducted community outreach. Arden Thomas advised that staff notified the individuals who requested direct follow-up once the effective date became known and that hard -copy maps have now been received. Arden Thomas further stated staff is working to obtain the digital FEMA products needed to provide parcel -specific mapping information when requested by the public. 2026-05-11 MINUTES No action was taken. Meeting concluded at 1:57 PM. (�L�Q - Lisa Godden, Administrative Assistant 2026-05-11 MINUTES KITTITAS COUNTY COMMISSIONER: KITTITAS COUNTY, WASHINGTON Cory Wright, Chairman KITTITAS COUNTY COMMISSIONERS Public Works Study Session Regular Meeting Monday May 115 2026 -1:30 PM BoCC Auditorium 205 West 5th Room 109 - Ellensburg 1. Call to Order 2. Citizen Comments (1 min. time limit) 3. Request to Approve a Resolution to Authorize Execution of the Contract Amendment 4. Approve a Letter to QUADCO Agencies 5. Cie Elum Ridge 6. Kittitas County CWU Technology Transfer Center Feasibility Study Report 7. Other Business - No Action to be taken 8. Concluded Created on 5/8/2026 10:08:54 AM KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: May 11, 2026 TOPIC: First Amendment to the Contract for Services Sale of Water Mitigation Certificates ACTION REQUESTED: Request to Approve a Resolution to Authorize Execution of the Contract Amendment LEAD STAFF: Arden Thomas RECOMMENDATION: Move to approve resolution to authorize execution of first amendment to the contract for services for sale of mitigation certificates BRIEFING SUMMARY: • Kittitas County operates a water banking program that provides for the sale of water mitigation certificates. • Kittitas County previously executed a 5-year Contract for Services for the sale of mitigation certificates with Nelson Gelbvieh Ranch Water Bank, LLC. • This contract expires on May 18, 2026. • Nelson Gelbvieh Ranch Water Bank, LLC wishes to assign its interest in this contract and all related water rights to Nelson Ltd Partnership. • All parties would like to extend the current contract for an additional five years. • A contract amendment has been prepared that assigns this interest pursuant to Section 12 of the existing agreement and extends the agreement for an additional five years. BACKGROUND: Kittitas County operates a water banking program that provides for the sale of water mitigation certificates. A water mitigation certificate enables applicants to demonstrate that they have legal access to water, as required by KCC 13.35.027. Water mitigation certificates are available through the County water bank and through private water banks. On May 18, 2021, Kittitas County executed a Contract for Services for the Sale of Water Mitigation Certificates with Nelson Gelbvieh Ranch Water Bank, LLC ("NGR"). This agreement enables Kittitas County to sell NGR water rights under the same terms under which the County sells county -owned water. Page 1 of 4 PUBLIC WORKS BOARD OF COUNTY CON IISSIONERS WORK SESSION STAFF REPORT Section 12 of the existing agreement enables NGR to assign its interest in the agreement to another person or entity by providing written notice to Kittitas County. NGR wishes to assign its interest in this contract and all related water rights to E. James Nelson Family Limited Partnership ("Nelson Ltd Partnership"). Kittitas County, NGR, and Nelson Ltd Partnership also wish to extend the term of the agreement. A contract amendment has been prepared to extend the agreement, document the assignment to Nelson Ltd Partnership, and update the notice provisions accordingly. DISCUSSION: These service contracts with private water bank entities help ensure that water held by private banks is retained for use within Kittitas County and further secure the availability of water for use within the County. FISCAL IMPACTS: By selling private mitigation certificates, Kittitas County continues to collect the revenue required to support program staffing and to collect the in -lieu fee for watershed management identified in Kittitas County's 2014 Settlement Agreement. The County foregoes collecting the cost recovery fee component, as this portion of the fee is directed to the private water bank. ATTACHMENTS: Exhibit 1: Resolution Exhibit 2: First Amendment to the Contract for Services Sale of Water Mitigation Certificates Page 2 of 4 PUBLIC WORKS BOARD OF COUNTY COMMISSIONERS WORK SESSION STAFF REPORT EXHIBIT 1: Resolution Page 3 of 4 PUBLIC WORKS BOARD OF COUNTY COMMISSIONERS WORK SESSION STAFF REPORT BOARD OF COUNTY COMMISSIONERS COUNTY OF KITTITAS STATE OF WASHINGTON RESOLUTION NO. RESOLUTION TO AUTHORIZE EXECUTION OF THE FIRST AMENDMENT TO THE CONTRACT FOR SERVICES FOR THE SALE OF MITIGATION CERTIFICATES WHEREAS: Kittitas County operates a water banking program that provides for the sale of mitigation certificates; and WHEREAS: Mitigation certificates offered through the Kittitas County Water Bank are backed by water rights that Kittitas County has purchased and that are held in the trust water program administered by the Department of Ecology and subject to a Trust Water Rights Agreement; and WHEREAS: Resolution 2021-077 authorized a contract between Kittitas County and Nelson Gelbvieh Ranch, LLC ("NGR") for the sale of water mitigation certificates; and WHEREAS: This contract enabled Kittitas County to sell water mitigation certificates associated with NGR water rights that are held in the trust water program administered by the Department of Ecology ("Ecology") and subject to a Trust Water Rights Agreement; and WHEREAS: NGR now wishes to assign its interest in the Agreement and all related Water Rights to the E. James Nelson Family Limited Partnership ("Nelson Ltd Partnership"); and WHEREAS: Kittitas County, NGR and the Nelson Ltd Partnership wish to assign NGR's interest to Nelson Ltd Partnership; and WHEREAS: Kittitas County, NGR and Nelson Ltd Partnership wish to extend the term of the Agreement; and WHEREAS: The First Amendment to the Contract for Services for the Sale of Mitigation Certificates is attached hereto and incorporated herein by this reference. NOW, THEREFORE BE IT RESOLVED that the Board of County Commissioners finds it to be in the best interest of the public to authorize execution of the First Amendment to the Contract for Services for the Sale of Mitigation Certificates. DATED this 1 lh day of May 2026, at Ellensburg, Washington. Attest: ❑ Clerk of the Board- Julie Kjorsvik ❑ Deputy Clerk of the Board- Mandy Buchholz BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Cory Wright, Chairman Brett Wachsmith, Vice -Chairman Laura Osiadacz, Commissioner EXHIBIT 2: First Amendment to the Contract for Services Sale of Water Mitigation Certificates Page 4 of 4 PUBLIC WORKS BOARD OF COUNTY COMMISSIONERS WORK SESSION STAFF REPORT First Amendment to the Contract for Services Sale of Water Mitigation Certificates THIS FIRST AMENDMENTTO THE CONTRACT FOR SERVICES FORTH E SALE OF WATER MITIGATION CERTIFICATES (the "First Amendment") executed on May 18, 2021 by and between KITTITAS COUNTY ("the County"), a political subdivision of the State of Washington, and NELSON GELBVIEH RANCH, LLC ("NGR") (hereinafter collectively referred to as the "Parties"), is hereby amended as follows: WHEREAS, the County and NGR are Parties to the Contract for Services for the Sale of Water Mitigation Certificates ("Agreement") dated May 18, 2021, for the processing and sale of mitigation water rights. WHEREAS, NGR is now wholly owned by the E. James Nelson Family Limited Partnership, a Texas Limited Partnership. WHEREAS, NGR now wishes to assign its interest in the Agreement and all related Water Rights to the E. James Nelson Family Limited Partnership ("Nelson Ltd Partnership"). WHEREAS, the County, NGR and the Nelson Ltd Partnership wish to assign NGR's interest to Nelson Ltd Partnership. WHEREAS, the County, NGR and Nelson Ltd Partnership wish to extend the term of the Agreement. NOW THEREFORE, the Parties agree as follows: 1. Time of Performance. Section 3 of the Agreement is amended to read as follows: "The term of this contract shall be until May 31, 2031 (the "Term"), with possibility of extending the length of the term on the mutual written agreement of the Parties." 2. Assignment. Section 12 of the Agreement is amended to read as follows: "The County acknowledges and consents to NGR's intent to assign its interest in this Agreement and the Water Rights to the Nelson Ltd Partnership. The assignment of NGR's interest in this Agreement to the Nelson Ltd Partnership shall become effective upon the agreement by Washington State Department of Ecology to assign the Trust Water Right Agreement from NGR to the Nelson Ltd Partnership. The Nelson Ltd Partnership shall not assign its interest in this Agreement to another entity without assigning the Water Right to the same person or entity and providing written notice to the County." 3. Notices. Section 13 of the Agreement is amended to read as follows: a. Nelson Ltd Partnership With Copy To: b. Kittitas County Jim Nelson 16234 6th Ave NW Shoreline, WA 98177 (206) 399-4995 Jessica Kuchan Confluence Law, PLLC 21 Ave A., Ste 4 Snohomish, WA 99201 (206) 502-4401 Kittitas County 205 W. 5th Ave., Suite 108 Ellensburg, WA 98926 4. Except as expressly amended and modified hereunder, the Agreement is affirmed, confirmed, and ratified by the County and Nelson Ltd Partnership and shall remain in full force and effect. 5. This First Amendment shall be effective upon its mutual execution and delivery by the County and Nelson Ltd Partnership, which may be executed and delivered by original instruments or electronic facsimiles in any number of counterparts, all of which together shall constitute one and the same document. Signatures on the following page IN WITNESS WHEREOF, the Parties have executed this Agreement this_ day of____, 2026. Nelson Gelbvieh Ranch, LLC By: Name: E. James Nelson, Member Date: E. James Nelson Family Limited Partnership By: Name: E. James Nelson, Partner Date: BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON By: Name: Cory Wright, Chair By: Name: Laura Osiadacz, Vice -Chair By: Name: Brett Wachsmith, Commissioner Date: Attest: Clerk of the Board Approved as to Form: Deputy Prosecuting Attorney KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: May 11, 2026 TOPIC: Quad County Rural Transportation Planning Organization (QUADCO) ACTION REQUESTED: Approve a letter to QUADCO agencies LEAD STAFF: Josh Fredrickson RECOMMENDATION: Direct staff to fmalize proposed letter and provide the letter to the BOCC office for signature and distribution. BRIEFING SUMMARY: • In 1990, the Washington State Legislature passed the Growth Management Act authorizing Regional Transportation Planning Program which allowed for the formation of Regional Transportation Planning Organizations (RTPOs). • Local government agencies came together and agreed to create an organization called the Quad County Regional Transportation Planning Organization. • Lead agency responsibilities for Quad County Regional Transportation Planning Organization (QUADCO) cycles between Adams, Grant, Lincoln and Kittitas counties. • RTPOs are positioned to develop and support regional priorities and opportunities • Evaluation of QUADCO's rotating administration model may be necessary to ensure an effective approach for the future. BACKGROUND: QUADCO provides regional transportation planning and implementation, within the region of Adams, Grant, Kittitas and Lincoln counties, through the coordination of all entities and for all transportation modes. Participation in QUADCO is voluntary and consists of the QUADCO Council and the Transportation Board. The QUADCO Council is the body of members who have been appointed to represent member agencies to carry out responsibilities of QUADCO. Administrative responsibilities cycle between the four counties. Kittitas County became lead agency on July 1, 2021, and completed tenure July 30, 2025. Lincoln County then became lead agency. The current QUADCO Bylaws have a four year rotation between counties acting as lead agency. During Kittitas County time as lead agency, the work program included updates to policies as well as managing financial aspects. The Human Service Transportation Plan (HSTP) was updated which allows member agencies to access transit funding through the Washington State consolidated grant program. Policies including Title VI, Code of Ethics and ADA policies were developed or revised. In addition, funding programs for the Unified Planning Work Program (UPWP) and the Surface Transportation Block Grant Transportation Alternative (STBG-TA) were successfully solicited and managed to completion. Work also began on coordinating with member agencies the required updates and reviews of the Transportation Element of agencies comprehensive plans. DISCUSSION: QUADCO is unique in its administrative method. While other RTPO's have dedicated staff, QUADCO has a rotation between the four Counties, each acting as lead agency for a set period of time. This structure has allowed minimal administrative costs, using available funds for member planning projects. Funding opportunities have changed over the years. As a result, RTPOs need to be positioned to effectively identify opportunities and coordinate regional priorities. With the need for stronger regional planning, there is a need to consider the administrative structure of QUADCO including alternative approaches. Any revision to the QUADCO administrative structure will require member agency approval. A letter has been prepared and attached, requesting QUADCO membership discuss the current administrative model and evaluate if a different model will better serve members and the region. FISCAL IMPACT: None anticipated ATTACHMENTS: Draft Letter to QUADCO members t L'SC 0,u[5 . To THE r Kittitas County, Washington k�a BOARD OF COUNTY COMMISSIONERS District One District Two District Three h rrir re Cory Wright Laura Osiadacz Brett Wachsmith May 11, 2026 Boards of County Commissioners Adams County Grant County Lincoln County 210 W Broadway Ave 35 C Street NW 450 Logan Street Ritzville, WA 99169 Ephrata, WA 98823 Davenport, WA 99122 RE: Regional Transportation Planning Capacity and QUADCO Administrative Structure Dear Commissioners, The Kittitas County Board of County Commissioners writes to invite a broader regional discussion regarding the future administrative structure and organizational capacity of the QUAD -COUNTY Regional Transportation Planning Organization (QUADCO). As transportation funding at both the State and Federal level becomes increasingly competitive, technical, and strategically driven, Regional Transportation Planning Organizations must be positioned to effectively identify opportunities, develop competitive projects, and coordinate regional priorities. Recent observations by members of our Board through engagement with statewide transportation funding and freight mobility processes have raised concerns that QUADCO may not currently be operating at the level necessary to maximize these opportunities for our region. This concern is particularly important given the significance of our region to Washington's freight and transportation system. QUADCO member counties encompass a substantial portion of the state's only east -west T-1 freight corridor, making regional coordination and project competitiveness critically important not only for our local communities, but for statewide economic mobility. In discussions with Washington State Department of Transportation staff and through review of recent transportation funding awards, it has become increasingly evident that Regions with dedicated planning and grant development capacity are often more successful in securing external transportation investments. By contrast, regional organizations relying primarily on rotating administrative responsibilities among member agencies may face structural limitations in sustaining long-term project development and competitive grant readiness. Kittitas County Courthouse 205 West 5'bAvenue, STE 108 - Ellensburg, WA 98926 (509) 962-7508 'FAX (509) 962-7679 .. We want to be clear: this is not a reflection on the dedication or performance of our county Public Works departments. Across all our counties, Public Works professionals are carrying substantial responsibility in maintaining critical infrastructure systems with limited resources and increasing demands. The issue before us is whether our regional administrative model is adequately structured to support the growing complexity of transportation planning and funding. We believe it is time to evaluate whether QUADCO's long-standing rotating administration model remains the most effective approach for the future. We also believe it is appropriate to consider alternatives, including dedicated staffing models or hybrid administrative approaches that could strengthen regional planning capacity, improve grant competitiveness, and reduce administrative burden on member Public Works departments. To begin this discussion, we propose convening an initial virtual meeting of QUADCO member county commissioners, Public Works directors, and municipal partners including administrators and Public Works leadership from incorporated cities within our member counties to discuss: • QUADCO's current organizational structure and administrative model • Regional competitiveness for State and Federal transportation funding • Opportunities for enhanced staffing or alternative governance models • Improved county -city coordination on regionally significant transportation priorities As construction costs continue to rise and local revenue sources face increasing pressure, our ability to secure outside transportation investment will become even more essential to maintaining and improving the infrastructure systems our communities depend upon. We respectfully request your participation in this discussion and ask that you indicate your interest in an initial meeting so scheduling can begin. We appreciate your partnership and shared commitment to strengthening transportation outcomes for our region. Sincerely, Cory Wright Brett Wachsmith Laura Osiadacz Chairman Vice Chair Commissioner Cc: WSDOT Tribal and Regional Integrated Planning Manager QUADCO County Public Works Directors Incorporated Cities and Towns of QUADCO Member Counties QUADCO City Public Works Directors Kittitas County Courthouse • 205 West 5u'Avenue, STE 108 Ellensburg, WA 98926 (509) 962-7508 -FAX (509) 962-7679 KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: May 11, 2026 TOPIC: Cle Elum Ridge ACTION REQUESTED: Direction to Staff LEAD STAFF: Arden Thomas RECOMMENDATION: Direct staff to finalize proposed letter and provide it to the BOCC office for signature and distribution. BRIEFING SUMMARY: • The Nature Conservancy is working on securing a long-term public landowner for the approximately 9,700 acres of within the Cle Elum Ridge Vicinity. • On July 14, 2025 representatives from the Nature Conservancy (TNC), Department of Natural Resources (DNR), Yakama Nation, and Mountains to Sound Greenway briefed the Board on two potential ownership options. • Subsequently, DNR provided written notification that DNR will own and manage the northern 2/3`d of the property and the southern 1/3 will be owned and managed by the Nature Conservancy and other partners as a Community Forest. • A concern with the Cle Elum Ridge project is the continued transfer of private land to public, especially of "green zone" property, which can be served by a mitigation bank for legal water availability. • Kittitas County staff has conducted an initial assessment to identify DNR-held parcels within green zone areas. It may be possible to petition the DNR to make these parcels available for private purchase. • Only an initial analysis has been conducted and additional work is needed to verify DNR support and finalize the analysis. BACKGROUND: The Nature Conservancy is working on securing a long-term public landowner for the approximately 9,700 acres of within the Cle Elum Ridge Vicinity. Kittitas County has consistently raised concerns regarding the cumulative impacts associated with continued transfers of private land into public ownership. County concerns have included impacts to the County tax base, the financial burden associated with recreation -related infrastructure and public services, and the limited supply of privately owned "green zone" lands that may support future development with mitigation -based water availability solutions. Page 1 of 3 Public Works "Work Session Staff Report", May 11, 2026 In April 2022, DNR acknowledged these concerns in correspondence related to the Cle Elum Ridge project and expressed interest in continued dialogue regarding ways to achieve benefits to the County and address recreation -related impacts to County infrastructure. On September 2, 2025, Commissioner of Public Lands Dave Upthegrove informed the Board of County Commissioners that DNR intends to actively manage approximately the northern two-thirds of the Cle Elum Ridge property as Trust Lands for commercial harvest and stated that the southern 1/3 will be owned and managed by the Nature Conservancy and other partners as a Community Forest. The letter also stated DNR's intent to continue coordinating with Kittitas County regarding recreation management and local impacts associated with public land ownership. DISCUSSION: County staff prepared the attached letter to acknowledge DNR's continued coordination and responsiveness to County concerns regarding the Cle Elum Ridge project. The letter recognizes DNR's commitment to manage portions of the property as Trust Lands for commercial harvest, which will continue generating revenue for Kittitas County and other taxing districts. The proposed correspondence also reiterates the County's ongoing concern regarding the cumulative reduction of privately owned green zone lands within upper Kittitas County. County staff conducted an initial review of undeveloped DNR-owned parcels located within green zone areas and identified several parcels that may warrant further evaluation regarding whether they could be appropriate candidates for private ownership. The proposed letter requests continued coordination with DNR staff to explore whether any such opportunities exist. FISCAL IMPACTS: No direct fiscal impacts are associated with approval of the proposed letter. The issues discussed in the letter relate to broader long-term fiscal considerations associated with public land ownership, County tax base limitations, recreation -related service demands, and the availability of privately owned developable lands within Kittitas County. ATTACHMENTS: Exhibit A Draft Letter Page 2 of 3 Public Works "Work Session Staff Report", May 11, 2026 EXHIBIT A DRAFT DNR Letter Page 3 of 3 Public Works "Work Session Staff Report", May 11, 2026 AUES.. rp TOY k R� rrITAS COC>NTY May 11, 2026 Kittitas County, Washington BOARD OF COUNTY COMMISSIONERS District One District Two District Three Cory Wright Laura Osiadacz Brett Wachsmith Dave Upthegrove Commissioner of Public Lands 1111 Washington Street SE mail Stop 47001 Olympia, WA 98504-7001 RE: Cle Elum Ridge Property Transfer and Green Zone Parcel Considerations Dear Commissioner Upthegrove, We appreciate the thoughtful engagement your department has demonstrated in discussions regarding the future ownership and management of the Cle Elum Ridge property, particularly with respect to County concerns about recreation -related infrastructure impacts and the effects of continued private - to -public land transfers on the County's tax base. Given the magnitude of this transaction, the fact that approximately 73% of Kittitas County is already in public ownership, the ongoing service demands associated with recreation on public lands, and the inclusion of extensive green zone properties in this transaction, the County continues to carefully consider the long-term economic implications associated with reductions in privately owned land. In particular, maintaining the tax base necessary to support critical governmental services remains an important consideration for the County and other local taxing districts. These considerations are especially significant given that water right mitigation constraints already limit the availability of land capable of supporting future development. The County's concern regarding green zone properties is heightened by the limited availability of land that can support development requiring water, due to water right mitigation constraints in significant portions of the County. Green zone properties are lands with access to legal water mitigation that can support new water uses. This contrasts with the nearly 40,000 acres of red zone property in private ownership that are essentially undevelopable due to the unavailability of suitable water rights to mitigate new uses. The transfer of additional green zone lands into public ownership further reduces the already limited inventory of potentially developable private land. As you have previously communicated, DNR intends to manage the Cle Elum Ridge lands transferred into your ownership as Trust Lands for commercial harvest, generating revenue for the County and other taxing districts. We appreciate DNR's commitment and responsiveness to our concerns. We also respectfully request that DNR work with Kittitas County staff to identify undeveloped green zone parcels currently owned and managed by DNR that could potentially be made available for private purchase. An initial review of DNR ownership suggests there may be several parcels that could have a higher and better use as developed property, contributing to the County's tax base. Thank you for your continued commitment to problem solving and for maintaining strong working Kittitas County Courthouse - 205 West 5'Avenue, STE 108 - Ellensburg, WA 98926 (509) 962-7508 FAX (509) 962-7679 www.co.kiftitas.wa.us relationships with local partners to address community concerns. We appreciate your partnership and ongoing collaboration. Sincerely, Cory Wright Laura Osiadacz Brett Wachsmith District 1 District 2 District 3 Cc: Kate Dean, WA DNR Policy Director Scott McFarland, WA DNR Southeast Region Manager Kittitas County Courthouse - 205 West 51hAvenue, STE 108 -Ellensburg, WA 98926 (509) 962-7508 •FAX (509) 962-7679 www.co.kittitas.wa.us KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: May 11, 2026 TOPIC: Kittitas County CWU Technology Transfer Center Feasibility Study Report ACTION REQUESTED: Informational Briefing, no action required. LEAD STAFF: Joshua Fredrickson RECOMMENDATION: Informational briefing — no action required by the Board. BRIEFING SUMMARY: • Kittitas County was awarded funding for a planning grant from the Washington State Community Economic Revitalization Board (CERB). • The grant supported the development of a feasibility study to repurpose the Old Heat building into a Technology Transfer Center. • The Conference of Government supported the next phases of the project • Capital Stacking and Grant Support Documents have been prepared. BACKGROUND: The Washington State Community Economic Revitalization Board (CERB) selected Kittitas County to receive planning grant funding. This grant, in addition to matching funds through the Distressed County Sales and Use Tax, supported the development of the Kittitas County CWU Technology Transfer Center Feasibility Study. In addition to the study, a Capital Stacking plan has been developed as well as grant support documents. DISCUSSION: This study has focused on the opportunities to transform the Old Heat building on the CWU campus into a center for innovation, training and economic growth. To help support economic growth the space within Old Heat has been identified for future use for technology, advanced manufacturing and entrepreneurship. As part of the study, the feasibility of a public/private partnership to share costs of construction and improvements has been explored. The feasibility study examined ownership models and identified the reuse and restoration of the building, rather than constructing something new, as the best path forward. Page 1 of 2 Public Works "Work Session Staff Report", May 11, 2026 This will allow the project to be broken into phases for raising private sector capital. This will lower the cost of entry for future business collaborations at the Technology Transfer Center. The Conference of Governments may be used to help support the funding mechanism or capital stacking, for this project as well. To support this effort, a capital stacking plan to identify a structured public -private investment strategy. A document identifying phased construction and estimated costs has also been prepared. This document will assist in focusing and applying for grant support. FISCAL IMPACTS: Project study was funded through grant awards and matching 0.09 funds. ATTACHMENTS: Old Heat Capital Stacking Old Heat Grant Support Page 2 of 2 Public Works "Work Session Staff Report", May 11, 2026 ./i c v MU) c .}d .0 c Bon. s Q U) D vi CL �_ c o co E �' C1 C U co > co (� "= U O C a) 0 Q CCU -0 � U E cu a) = , CO cn a) U E = C E C c6 CO 2i U> a) a) 0 a) .a — OU a)L CL C O Er L ++ a) >, CUaa)io •o-. 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