Public Buildings Authority approves bond-fund processes, names requisition officer

The Public Buildings Administration (PBA) approved a process to access, track and report bond proceeds that are on deposit with a trustee bank and appointed a requisition officer for the series of projects those proceeds will fund.

The PBA voted to accept a workflow and reporting methodology intended to let the authority draw on bond proceeds while keeping the funds on deposit with the trustee bank. The authority also appointed Megan Detterman as requisition officer and approved related administrative officers for the bond series.

Why it matters: the approved procedures set how roughly $15 million that has been issued and is currently on deposit with the trustee bank will be encumbered and paid out for courthouse and other public-building work. Bond purchasers hold a lien on proceeds while funds remain with the trustee; the new process is meant to provide project tracking, purchase-order review and public reporting to the PBA so draws are authorized and transparent.

Keith, the PBA presenter, said the materials before the members include a packet listing projects and estimated costs and described the process for encumbering funds and presenting authorized draws to the trustee bank. He explained that the first issuance is on deposit and that the packet’s back pages list the projects that will be supported by those funds.

Jared Davidson of Public Finance Law Group, the authority’s bond counsel, said the approach reflects the trustee’s expectations that proceeds remain with the bank until proper authorization. "This is a process, that we've worked through. We think this is, the most transparent, you know, as possible," Davidson said. He described the transaction as a revenue bond structure in which bond purchasers have a lien on proceeds until formal draw authorization is completed.

David Gandahl, the independent auditor from DWG, and the PBA’s accountant, Steve Landreth, also participated in drafting the process and confirmed they were comfortable with the tracking and reporting mechanisms described for audit purposes. Jackie Gates Jefferson of Bank First was listed among participants involved in the banking/trustee role.

The packet enumerated intended uses for the first $15 million on deposit. Items listed included support for the ICB project to house the district attorney, design and construction of new courtrooms at the juvenile justice center (JJC), replacement of the courthouse roof, an 11th-floor emergency egress for detainees, demolition and roof work at a storage building at 7401 NE 23rd Street, and structural and storm-drain repairs at Metro Parking 12. The PBA said purchase orders, expenditures and final inspections would be presented to the authority as part of routine agenda reporting.

Members discussed how often status reports should appear on the public agenda; staff said project updates and purchase orders will be handled in the same public-cycle process as other PBA items so the activity will be included in meeting records. The authority also clarified that the bond funds are on deposit with the trustee bank (BOK/Bank First) and are not held directly by Oklahoma County government.

After discussion, a PBA member moved approval of the processes presented; the motion passed. The authority then moved and approved appointments: Megan Detterman as requisition officer, additional requisition officers for the 2024 bond series, and a receiving officer. The authority also approved quarterly appropriations tied to BBA properties, including a $72,000 appropriation for the Lincoln Building’s third-quarter funding.

The PBA concluded with no citizen participation and adjourned.