Kay County Justice Facilities Authority

Friday, April 3, 2009

Newkirk, Oklahoma

 

 

The Trustees of the Kay County Justice Facilities Authority (JFA) met in regular session at 2:30 p.m., Friday, April 3, 2009, in the Commissioners Court of the Kay County Courthouse in Newkirk, Oklahoma.  Notice of the regular meeting was posted for public information on April 2, 2009, at the Courthouse front door, Commissioners Court, and basement handicapped entrance of the Kay County Courthouse in Newkirk, Oklahoma.

 

Chairman Bruce Robinson called the meeting to order.  Those present were as follows: Vice-Chairman Carl Giddens; Trustees –Darrel Grossardt; Jim Stieber; Everette Van Hoesen, Kay County Sheriff; Laile Wilson, Kay County Commissioner; Don Jones, Jail Consultant; David Cummings, JFA Attorney; Tommy Hayes, Butch Byrd, Kent Crow, Sedalco; Stan Lewis, Architects In Partnership (AIP); Joe Harris, Jon Ihrig, Kay Electric; Bill and Claude Williams, Taxpayers for Transparency; Scott Cloud, Newkirk Herald Journal; Charles Abbott, Blackwell Journal; Sharon Rowen, Ponca City News; Steve Kelly, Undersheriff; Stephanie Ringgold, Jail Administrator; Tammy Reese, Kay County Clerk/Secretary (see sign-in sheet).  Members Norris Frederick and Wes Young were absent.

 

Motion was made by Everette Van Hoesen and seconded by Darrel Grossardt approving regular meeting minutes of March 20, 2009, and special meeting minutes (no quorum) of March 27, 2009.  Motion carried.

 

Van Hoesen reported six inmates were taken to Lexington Department of Corrections.

 

Stan Lewis, AIP, mentioned he had received approval from the State Fire Marshal; he also pointed out the people that examine the plans are not the same as the people who review the project.

 

Chairman Robinson said letters were sent out regarding engagement of auditing firm to serve the Authority. 

 

Attorney David Cummings said he did an informal survey and five firm names were received.  Cummings said he did reference checks on firms and discussed background of firms.  Finley and Cooks proposal was approximately half the cost of the other firms.  Cummings suggested sending this firm an engagement letter; stating that an engagement letter is basically our contract to hire them to go to work for us.

 

Motion was made by Giddens and seconded by Van Hoesen authorizing Chairman Robinson to execute an engagement letter to hire the auditing firm from Shawnee, Oklahoma, Finley and Cook.  Motion carried.

 

 

Lengthy discussion was made regarding Sedalco’s Guaranteed Maximum Price (GMP) Addendum to the Construction Manager at Risk Agreement with itemization of vendors, costs, expenses and fees. 

 

Cummings said he was pleased with the numbers and the process Sedalco came up with; the fixed fee price at 4.5 percent, the GMP price $16,912,784.00, $760,000.00 is Sedalco’s fee which is real close to 4.5 percent.  Sedalco will hold their fee even if the price goes over by $500,000.00, if it goes over that JFA will pay Sedalco 4.5 percent on the excess.  If the price goes down JFA will save.

 

Cummings went on to say that most of this contract is a listing of what they are relying upon.  Cummings discussed contract in more detail stating what JFA would pay for on materials, testing, legal fees, etc.  Cummings also talked about the second schedule the general conditions, out-of-pocket expenses, etc.

 

The contingency was discussed, Cummings said Sedalco will retain four (4) percent contingency that will cover missed costs, and JFA should receive some of that back.

 

Tommy Hayes, Sedalco Project Director, discussed the bidding process, where it was held, etc. and the procedure that was followed according to Oklahoma Statutes.  Hayes said there were 2,400 prospective bidders with 80-90 present at Pioneer Technology Center for the actual bid opening.

 

Robinson said all bids were opened and read aloud.

 

Hayes answered questions regarding bidders being individually bonded stating that bids over $50,000.00 must be bonded under that amount they do not.

 

Motion was made by Grossardt and seconded by Stieber to approve authorizing Chairman to enter into the GMP Agreement in the amount of $16,912,784.00 based on Sedalco returning with bond and insurance as required.  Motion carried.

 

Regarding approving certain bids and bidders on jail construction project as proposed by Sedalco upon the terms of the Construction Manager at Risk Agreement:  Cummings said in order for Sedalco to proceed, the contract provided that they would do all the bidding. The contract is between Sedalco and the subcontractor.  Cummings said local contractors getting the bid were Rick Scott for some miscellaneous carpentry, Wells Plumbing and Wards Heating and Air Conditioning.

 

Motion was made by Grossardt and seconded by Stieber approving Sedalco to enter into contract with the following list of bidders as recommended by Sedalco:  Cherokee Builders-Tulsa, OK; ACE Exterminators-Oklahoma City, OK; Cantera Concrete-Oklahoma City, OK; Gay & Sons Masonry-Stephenville, TX; SpeedFab-Ft. Worth, TX; FADCO-Tulsa, OK; Rick Scott-Ponca City, OK; Universal Roofing-Moore, OK; Felix Thompson-Fort Smith, AR; Oklahoma Waterproofing-Oklahoma City, OK; Tulsa Overhead Door-Tulsa, OK; T&D Systems-Aledo, TX; Allen’s-Oklahoma City, OK; Applications-Sand Springs, OK; Architectural Sign & Graphics-Yukon, OK; Sierra Detention Systems-Golden, CO; MSSI-Golden, CO; Markham Restaurant Supply-Fort Smith, AR; Western Fire Protection-Tulsa, OK; Wells-Ponca City, OK; Wards A/C-Ponca City, OK; Faith Technologies-Tulsa, OK.  Motion carried.

 

Motion was made by Grossardt and seconded by Giddens authorizing the Chairman to execute a Notice to Proceed to Sedalco upon satisfaction of conditions precedent.  Motion carried.

 

Discussion of liability and builders’ risk insurance acquisition:  Cummings said most of the insurance and bonds are provided by the contractor/subcontractor but JFA will need liability and builders’ risk insurance.  Cummings said the estimated cost of those is included in Sedalco’s numbers; Cummings asked that Sedalco would secure that insurance for JFA in amounts that are reasonable.   Other options for the JFA would be State/Association of County Commissioners of Oklahoma (ACCO) or a private company, Don Jones will direct JFA on this matter.  Cummings suggested having this in place before project begins.

 

Motion was made by Grossardt and seconded by Van Hoesen to enter into Executive Session, pursuant to Oklahoma Statues Title 25 Section 307(B)(4) for the purpose of discussing litigation in lawsuit affecting annexation and access to utility services (3:09 p.m.).  Motion carried.

 

Motion was made by Wilson and seconded by Grossardt to return to regular meeting of JFA (3:59 p.m.).  Motion carried.

 

Robinson stated in regards to the litigation in lawsuit affecting annexation and access to utility services filed against Newkirk the authority feels it is in their best interest to join that lawsuit as a participant.

 

Cummings said the procedure would be to file a motion to intervene; it is our opinion that what happens in that lawsuit could have a huge critical effect on our project and we wish to participate as the court will allow and be heard in the matter.

 

Motion was made by Grossardt and seconded by Stieber to direct our legal counsel, David Cummings, to take the necessary legal steps to intervene in this lawsuit.

 

Joe Harris, Kay Electric, spoke in relation to this matter and presented the Authority with a letter from Jonathan C. Ihrig, Attorney for Kay Electric Cooperative and Kay County District No. 3.

 

Motion carried.

 

There were no unscheduled public appearances.

 

There being no other business, motion was made by Van Hoesen and seconded by Giddens to adjourn (3:25 p.m.).

 

 

 

 

 

 

 

 

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Approved this 17th day of April, 2009.

 

 

 

                                                                             _________________________________

                                                                             Bruce Robinson, Chairman

 

 

 

Attest:

 

 

 

________________________________________

Tammy Reese, County Clerk

County of Kay, State of Oklahoma

Secretary, Kay County Justice Facilities Authority

 

(This meeting was audio recorded and the recording is available for public inspection)

 

 

 

 

 

 

 

 

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