By Traci Chapman
Published on February 7, 2007

Momentum toward a May vote on a new county jail stalled Monday when Canadian County commissioners declined to hire a financial adviser, the next step in moving the project forward.

District 3 Commissioner Grant Hedrick made a motion to hire Edmond-based Municipal Finance Services. The firm specializes in jail and other municipal projects and was the “overwhelming recommendation” of project architect Bill Knowles.

District 2 Commissioner Don Young refused to sign off on hiring Municipal Finance, saying he wanted to look at other firms, and he felt the issue was being rushed toward a May election.

“The sheriff knew a year ago he wanted a new jail — why didn’t he come to us then,” he said. “We’re not ready to do this. We sat on this for two years and all of a sudden, we’re in a hurry. I don’t like being pushed into just hiring them (Municipal Finance).”

Although District 1 Commissioner Phil Carson said the firm met all of the requirements he believed were needed with the project, he declined to second the motion, saying, “I think it’s really important we’re all three on the same track.”

If commissioners can agree on a plan, voters will be asked to approve a sales tax increase to fund the new jail. The amount of the increase remains unknown, pending a determination of the facility and financing costs. Those numbers cannot be established until a financial adviser is hired, commissioners said.

Knowles is a partner in the Tulsa firm Bruton, Knowles and Love, which specializes in correctional facility design. At a special meeting Jan. 17, commissioners approved the final plans for the proposed facility and directed Knowles and El Reno attorney Andy Bass, who commissioners have employed to assist with the project, to coordinate locating potential financial advisers. At that time, commissioners asked Knowles for recommendations of financial advisers experienced in jail project financing.

Both Knowles and Bass recommended Municipal Finance, which has “extensive experience” in jail financing. Knowles said he worked with the company on the Payne County Jail, which he said is comparable to the proposed Canadian County project.

“Municipal Finance clearly has the edge in experience in a project like this,” he said.

Knowles provided the names of two other financial advisers — John Johanning of Oklahoma City and Steven Smith of Tulsa — to Bass and the commissioners, but he said their jail experience was limited.

“We’ve only done one jail project and two courthouses with Johanning and one jail and one courthouse with Mr. Smith,” he said. “I’m not saying they’re not qualified — I just don’t have the knowledge of them I do with Municipal.”

Commissioners individually interviewed principals of Municipal Finance. Bass said he did not contact any other firms for interviews because of time constraints and because of Knowles’ “obvious recommendation” for the Edmond firm and its president, Rick Smith.

Time is an issue, Bass and Smith said, if commissioners want to present the new jail to voters this year.

County officials narrowed the time for an election on the jail to May 13 in order for it to appear on a ballot separate from county, state and federal races coming later in the year.

“We think it’s important to let the issue stand on its own,” Smith said.

Bass agreed, saying, “If you don’t have this in May, there’s the possibility — really the probability — you won’t be able to do this until next spring.”

To call a May 13 election, which commissioners earlier said was their intent, a resolution must be delivered to the county election board by March 13. Smith said a delay — even a week — at this point could jeopardize the May election date.

A firm project cost has not been determined, but Smith estimated the project’s total cost at about $28 or $29 million based on his firm’s experience with similar projects. He said his firm’s fees for the project would be 0.5 percent of that cost or between $140,000 to $145,000. Smith said he would cap the fee at $140,000 if that would “make the commissioners feel more comfortable.”

Hedrick said the fees of both BKL and any financial adviser hired by the county are paid on a contingency basis — if voters reject the jail, neither firm is paid for the work it performed in connection with the project — and he felt Smith’s firm would serve the county’s interests.

Young refused to agree to the appointment of the firm even if it meant missing the May election date and said he had “concerns” about Smith’s proposed fee and the fact he hadn’t interviewed any other firms.

“I’m responsible for the citizens’ money, and I’m not sure this is the best deal,” he said. “What’s another year?”

Sheriff Lewis Hawkins said another year could mean big problems for the county. Hawkins said he was not at Monday’s meeting because the commissioners “asked him not to be there,” but he would be at the next meeting to “make sure citizens’ interests were protected.”

“This jail has serious problems. The people who control us are the state jail inspector’s office. If the state jail inspector chooses to shut us down or fine the jail for non-compliance, they can do it,” he said. “Our citizens need a quality jail facility that isn’t overcrowded and that lets us incarcerate everyone who should be there, while still maintaining standards for those prisoners. We simply cannot do that with the current jail.”

Hawkins said he has lobbied commissioners for a new jail for years. Those efforts have been stalled, he said, by the need to finish purchasing property for the new facility. With the exception of one parcel, which is not necessary for the first phase of construction and which is currently the subject of litigation between the county and one of the property’s owners, all property purchases were completed last year.

“It has been no secret we need a new jail,” Hawkins said. “I told them in 2004 about the failing heating, air and plumbing problems. I don’t understand how anyone can say we’re rushing into anything.”

Hawkins said the problem with the current jail is twofold: health and safety issues for prisoners and the potential for levies against the county for violations of state inspection standards — or worse.

“If we are not making valid headway to improve — and I mean substantially improve — our facilities, he (jail inspector) can show us the fire,” he said. “He can fine the jail for non-compliance or he can choose to shut down part or all of the jail. He can do it. I’ve seen him do it.”

If the project gets put on hold until next spring, Hawkins said he is worried the new project will suffer the fate of the current jail.

“In the mid-80s we were forced to outsource — send prisoners to other facilities — because we were being penalized for our facilities,” he said. “Because of that, county officials rushed around and were forced to build something that wasn’t right, they took shortcuts, and a jail that should have lasted 35 years lasted less than 20 without major problems.”

Bass said commissioners needed to weigh the cost of delay.

“A few dollars sometimes can cost you a lot of dollars in the end,” he said.