Kay County Justice Facilities Authority

Friday, July 11, 2008

Newkirk, Oklahoma

 

 

The Trustees of the Kay County Justice Facilities Authority (JFA) met in regular session at 2:30 p.m., Friday, July 11, 2008, in the Commissioners Court of the Kay County Courthouse in Newkirk, Oklahoma.  Notice of the regular meeting was posted for public information on July 10, 2008, 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:  Trustees – Vice-Chairman Carl Giddens; Darrel Grossardt; Everette Van Hoesen, Kay County Sheriff; Wes Young; JFA Attorney David Cummings; Attorney Brent Clark; Paul Smith, Financial Advisor; Tom Thompson, D.A. Davidson & Co.; Stan Lewis, Architects in Partnership (AIP); Don Jones; Scott Cloud, The Newkirk Herald Journal; Sharon Rowen, Ponca City News; Tammy Reese, Kay County Clerk/Secretary (see sign-in sheet).  Norris Frederick and Laile Wilson were absent.

 

Motion made by Van Hoesen and seconded by Grossardt approving special meeting minutes of June 27, 2008.  Motion carried.

 

Motion was made by Van Hoesen and seconded by Grossardt upon board authorizing Chairman of JFA to enter into agreement with the Bank of Oklahoma as the Trustee Bank for services related to the issuance of the Authority’s obligations subject to approval of Board of County Commissioners.  Grossardt commented he felt all three banks who submitted proposals were qualified, Bank of Oklahoma had the lowest annual charges for services needed and recommend we go with bank that is lowest in cost.  Motion carried.

 

Motion was made by Grossardt and seconded by Young to use Eastman National Bank as the Depository Bank for services related to issuance of the Authority’s obligations.   Robinson spoke of the convenience of the bank being located in Newkirk as well as in Ponca City.  Motion carried:  Giddens, aye; Grossardt, aye; Robinson, aye; Stieber, aye; Van Hoesen, aye; Young, aye.

 

No presentations by prospective bond purchasers related to issuance of the Authority’s obligations were made.

 

 

 

 

 

 

Motion was made by Stieber and seconded by Grossardt to enter into agreement with Smith & Oakes, Inc., lowest bid, as surveyor for survey and initial analysis of potential site suitability and utilities upon criteria as recommended by AIP.  Motion carried.

 

Architect Stan Lewis said there have been revisions made in the new jail facility.

 

Robinson noted members of the board have been in contact with the City of Newkirk and Kay Electric concerning location of new jail facility.

 

No report was made from the Architect Liaison Committee.

 

Report on Jail Repair Status:  Undersheriff Steve Kelly said nine circuit boards are down, working on slider doors, short circuit in lights in the locking area, and inmates are keying doors to get them open.

 

Van Hoesen reported escapee Darrin Muegge has been captured and is currently locked down.

 

No report was made from the Jail Site Selection Committee.

 

Finance Committee Report:  Robinson said this committee had a very informative four hour meeting.

 

Paul Smith, Financial Advisor told the board they needed to start thinking in great detail on budgetary items to consider in the near future; Smith said Don Jones will play a key part in this area.

 

Tommy Thompson, D.A. Davidson & Co. and JFA’s Bond Underwriter, proposed a public bond offering, issuing two fixed rate, non-rated, level debt service, tax exempt and bank qualified series; one dated September 1, 2008, and the other January 1, 2009.  Thompson estimated a 4.76% interest rate over a twenty year non-rated transaction, callable at par in ten years.  Thompson said the bonds would be offered to local investors.

 

On the other hand, Paul Smith, JFA Financial Advisor, suggested a private bank placement.  Series 2008 would be a $10 million Term Loan with a fixed rate for approximately twenty years with a 4.40% Fixed Interest Rate based on market conditions as of July 10, 2008.  Series 2009 would be a $9,566,398 million Term Loan with a fixed rate for twenty years with a 4.45% Fixed Interest Rate based on market conditions as of July 10, 2008.

 

Much discussion took place concerning the public bond offering and the private bank placement options; both Smith and Thompson answered questions and presented handouts.

 

Smith recommended to the board to choose the lowest cost proposal.

 

No action or decision was made at this time. 

 

Attorney David Cummings suggested having a special meeting on Wednesday, July 16, 2008, at 2:30 p.m. so all JFA members could be present to vote on this subject and have a proposal presented to the Board of Kay County Commissioners for approval by July 28, 2008.

 

No action was taken on JFA Budget for FY 2008-09.

 

No unscheduled public appearances were made.

 

There being no other business, motion was made by Giddens and seconded by Grossardt to adjourn (4:07 p.m.).  Motion carried.

 

 

 

 

 

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Approved this 23rd day of July, 2008.

 

 

 

                                                                             _________________________________

                                                                             Bruce Robinson, Chairman

 

 

 

Attest:

 

 

 

________________________________________

Tammy Reese, County Clerk

County of Kay, State of Oklahoma

Secretary, Kay County Justice Facilities Authority

 

 

 

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