Banks, Plow Trucks, and Sand Bids
Tremont Gets Down to Business
TREMONT—After hearing proposals from two banks, the Tremont Select Board decided that Bar Harbor Bank & Trust (BHBT) will maintain the town’s operations accounts, and First National Bank (the First) has acquired the town’s investments accounts.
On Monday, September 16, Bar Harbor Bank & Trust (BHBT) and First National Bank (the First) presented their final proposals to the Select Board. Vice Chair McKenzie Jewett had an excused absence for this meeting.
At the Tremont Select Board’s September 3 meeting, members heard proposals from BHBT and the First regarding the town’s operations accounts and investment accounts and what each bank would offer for interest rates. Toward the end of those presentations, BHBT’s Senior Vice President, Regional Market Manager Lisa Parsons asked if they could come back at the next meeting and present a more formal proposal.
At the time of the September 3 meeting, BHBT was giving the town a 3.75% interest rate on both the operations and investment accounts.
BHBT’s Parsons and Senior Vice President, Director, Community Banking Steve Gurin joined the First’s Senior Business Development Officer Jake Miller, Commercial Loan officer Colleen Maynard, and the First’s Southwest Harbor Branch Manager Meredith Gabbard to answer questions. Dunbar and the Select Board members already had the proposals before them.
BHBT’s proposal was for an interest rate of 4.1% for the town’s operations accounts (approximately $3 million) and also for the town’s investment accounts (approximately $1.5 million). This rate was guaranteed by BHBT for 12 months.
According to Town Manager Jesse Dunbar’s memo to the Select Board for the September 16 meeting, this increased interest rate would result in an interest increase of approximately $10,500 for the approximately $3 million operations accounts.
The First’s proposal was for an interest rate of 4.2% for the town’s operations accounts and also for the town’s investment accounts. This rate was guaranteed by the First for 9 months. According to Dunbar’s memo to the Select Board for the September 16 meeting, this increased interest rate would result in an interest increase of approximately $13,500 for the approximately $3 million operations accounts. This is $3,000 more than BHBT; however, this $3000 difference is based upon an annualized interest rate and the First’s proposal is only guaranteed for nine months so the amount would be less in the shortened time frame.
“We do understand that their offer is a few months longer than what we are offering, however, we have been very proactive to work with municipalities, several of which are your neighbors up here on the island, for 13 months have been getting a 4.20% rate,” said Miller.
Miller said that they are committed to the 4.2% rate until June, but when June comes, “we don’t know yet what the rates are going to be. The rates could be the same, they could be higher, could be slightly lower, I am not sure. But we would work with the town to make sure that a proactive conversation is happening to ensure that you are getting the best deal possible to uphold your fiduciary responsibility.”
There was little talk about certificates of deposits (CDs) other than Dunbar saying that the Select Board can address that at a later date and take a little more time looking at forecasts, especially since the proposed rates are so close to current CD rates.
After very little discussion and a few clarifying questions, member Kevin Buck said that he is all for splitting the town’s banking between the two banks because he feels that it is good business.
Buck made a motion to give the First the approximately $1.5 million investment accounts at a rate of 4.2% for nine months. Buck’s motion was seconded by Howdy Goodwin and the vote was unanimous.
Buck made a second motion to let BHBT retain the approximately $3 million in the operations accounts at a rate of 4.1% for 12 months. Buck’s motion was seconded by Goodwin and the vote was unanimous.
TO REPLACE PLOW TRUCK NUMBER ONE OR NOT
The town’s large plow truck, truck number one, was supposed to be replaced due to maintenance needs. It requires, at least, some hydraulic repairs and a new sander body. The town has had a new International truck on order since 2022 and is still awaiting delivery from the factory.
Dunbar said his latest inquiry had garnered a response that the truck could be shipped in October, but there is no guarantee that will happen. Dunbar said that the delay is due to manufacturing issues and regarding the possible October delivery date, the seller said, “don’t hold your breath.”
The price of the International was $223,000. Dunbar said that he has spoken with the town’s attorney and was advised that at this time, the town can cancel that agreement without harm if it chose to do so. Dunbar also said that the company that has been waiting on the town to receive the International truck so they can install the snowplow, HP Fairfield, has a comparable Western Star truck on site but its cost is $292,000.
Dunbar also said that he has already scheduled a mechanic to come and give the truck a thorough inspection to see if there are any critical issues that they may not be aware of.
The town has two Internationals, two Ford F-550 trucks, and one Dodge truck in its plowing fleet currently.
Select Board Chair Jaime Thurlow said that the difference between the International truck and the Western Star truck is “night and day” with the Western Star being the better truck.
Goodwin said that the dangers he sees of canceling the current order and purchasing the Western Star is that if the town buys it and uses it for the winter and then it sits all summer like the big trucks tend to do, it “will be toast just as quick” as the International. He went on to say that he thinks the town would be better off to fix up the International and then move forward from there.
Thurlow suggested that the town should cancel the International order, fix truck one, and then use the money from the canceled truck order to buy another 550 or 650 class truck which is a large truck but has the added benefit of not requiring a commercial driver’s license when it comes to hiring new drivers.
The Select Board instructed Dunbar to get quotes on a Ford F-550 and a comparable Dodge as well as the equipment needed to outfit the truck body. They also instructed Dunbar to ensure there are no unknown major issues with truck one and then they would authorize purchasing the equipment needed to refurbish the truck at a later date.
Goodwin made a motion that the town cancel the International truck order with Colwell Diesel effective immediately. Buck seconded and the vote was unanimous.
AWARD OF WINTER SAND CONTRACT
The town received the following bids for winter sand.
Doug Gott & Sons - $10.80 per yard.
Beechfront Properties - $11.85 per yard.
John W. Goodwin Jr Construction – $14.65 per yard.
The Select Board voted unanimously to award the sand contract to Doug Gott & Sons.
MAKING SOME SPARE CHANGE VIA SURPLUS PROPERTY SALES
The Select Board approved the awarding of several bids to people who bid on surplus property that the town was offering for sale. All of the bids were awarded as stated below.
A Stihl chainsaw to Esther Jacobs for $150.
A bookshelf to Esther Jacobs for $15.55.
A riding lawn tractor to Esther Jacobs for $400.
A utility trailer to Esther Jacobs for $150.
A pole saw to Tyler Damon for $50.
A snow blower to Daniel Closson for $50.
A backhoe bucket to William Gott for $25.
A metal screener to William Gott for $250.
PUBLIC HEARING SET FOR ADOPTION OF GENERAL ASSISTANCE ORDINANCE AMENDMENTS
Maine law requires towns to amend their general assistance ordinances on occasion in order to stay current with area prices for any amenities that the town may assist with. Dunbar asked that the Select Board “pass a motion to adopt and sign the October 1, 2024, through September 30, 2025 Appendices A-H of the General Assistance Ordinance, pending a public hearing.”
The Select Board voted unanimously to adopt and sign the ordinance pending the public hearing which was set for the meeting of October 7.
Copies of the ordinance are available at the town office and will be available at the October 7 meeting for public review.
QUITCLAIM DEEDS APPROVED
The Select Board approved two quitclaim deeds to release any lien interests that the town may have had after tax liens had been placed on the properties. These two properties never had the liens discharged after any owed taxes, interest, or other associated costs were paid.
The first property was at 62 Noble Road, Tax Map 011, Lot 013. This lien was filed in 2017, all assessed costs were paid, and the lien was never discharged.
The second property was at 4 Bernard Road, Tax Map 016, Lot 014. This lien was filed in 2003, all assessed costs were paid, and the lien was never discharged.
Both quitclaim deed requests were unanimously approved.
The next Tremont Select Board meeting is scheduled for October 7 at 5:00 p.m., at the town office.
All photos: Shaun Farrar/Bar Harbor Story
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