The Northampton County Board of Commissioners voted to award the construction contract for the Phase 6 water system improvements to the low bidder, Ralph Hodges, and authorized short- and long-term financing needed to build the project.
Commissioners approved the resolution awarding the construction contract to Ralph Hodges after the county’s public works representative said Hodges was the low bidder on the publicly advertised project. The contract covers improvements serving Stanley Drive, Big John Store Road, Galatia Road, Horn Road and Weitz Avenue, among other local roads identified during the presentation.
Davenport, the county’s financial advisor on the project, presented two final financing actions tied to the same Phase 6 project: adoption of a bond anticipation note (interim construction financing) in the amount referenced in the county packet as $6,418,000, and a bond order authorizing issuance of USDA water and sewer revenue bonds that will be the long-term takeout for the construction loan. Davenport staff said USDA requires interim financing because USDA does not issue its long-term loan until after construction and inspection are complete; the interim instrument lets the county pay construction costs now and have USDA “take out” the note later.
A commissioner asked about up-front costs to the county for the bond process; Davenport said the Local Government Commission application fee for the revenue bond anticipation note was $1,250 and confirmed a bond counsel engagement fee in the range of $20,000 was incurred. Davenport staff said the USDA path gives the county flexibility and a federal backstop because USDA will ultimately purchase the bonds if the project meets USDA’s requirements.
Votes at a glance
- Construction contract award to Ralph Hodges (Phase 6 water system improvements): motion passed; precise roll-call names were not all read into the record; public roll-call included at least Commissioner Brian Eckstiller voting "Aye." (Outcome: approved)
- Bond anticipation note (interim construction financing, packet amount listed $6,418,000): motion passed on a 4–1 vote (Outcome: approved)
- Bond order authorizing USDA long-term revenue bonds (takeout financing): motion passed on a 4–1 vote (Outcome: approved)
Why it matters: The Phase 6 work will connect sections of the county’s water network, improve pressure and service in the western half of Northampton County, and provide infrastructure the county described as a foundation for future growth. The financing decisions commit the county to interim debt to cover construction costs and to the USDA financing plan for long-term repayment.
County staff and consultants emphasized that the interim note is a standard part of USDA procedures: USDA generally funds long-term loans only after construction and inspection. County staff also noted that the project and financing were previously discussed at a special meeting and that these actions memorialize the final approvals the board already began at that prior meeting.
The county identified several implementation details during the discussion: the board has locked in a rate through the lender referenced in the packet (United Community Bank at 4.7% was stated in the presentation materials), the Local Government Commission has approved the county proceeding with the note, and Davenport confirmed that the application fee for the interim note was $1,250 and that bond counsel fees had been incurred.
Ending
The board carried the final financing and contract decisions so work can proceed under the Phase 6 schedule; county staff said USDA will complete its inspection and long-term loan takeout after construction is finished. Additional project details, including the fully executed construction contract and final project timeline, were not read into the record and were marked in the county packet.