NEWPORT, Maine – Though temperatures outside were as hot as they’ll probably be this year, Newport selectmen were focused on preparing for winter and the construction of a new sand and salt shed during their meeting Wednesday night.
With construction set to begin in the coming weeks, the town solicited bids from the four banks in town to finance the project. Only Merrill Bank responded, offering a 10-year note on $175,000 at an interest rate of 3.501 percent. The total cost of the loan will be about $209,000, with the first payment of $21,711 due next year.
There was some discussion among board members about soliciting bids from other banks outside Newport, but Town Manager James Ricker recommended going with Merrill since that bank’s offer already had been made public.
“This is the first time this has ever happened,” said Ricker of receiving only one bid for a municipal bond. He said he’ll solicit bids from outside Newport next time. Selectman Doug Franklin agreed.
“If [the in-town banks] are not interested, we’ll take our business elsewhere,” he said.
Newport has no sand and salt shed and stores that material in an open lot. The new facility, which has been approved by voters at town meeting at a principle cost of up to $200,000, will be located on Cemetery Road, which is located off Ridge Road.
In related business, the board discussed a request from Penobscot County to participate in a bulk purchase of salt, but ultimately decided to maintain its own contract.
Participating in the county contract would have saved the town a maximum of about $216 per year, but other stipulations made the deal not worth it. Newport buys its salt all at once but has it delivered as needed so it can be mixed with sand in small batches. Under the county deal, the town would have to take delivery on all 75 to 100 tons of salt at once or send town trucks to Portland to pick it up.
“Sometimes something like this works,” said Ricker. “Sometimes it creates more trouble than it’s worth. I think we’re going to save money by not going in with their contract.”
In other business, the board voted unanimously to lower the speed limit on Libby Hill Road from 45 mph to 35 mph. Recent surveys conducted by Newport Police Department found that most drivers travel between 30 and 40 miles per hour – but the board agreed that 45 mph is too fast for the condition of the road.
The new speed limit will go into effect as soon as new signs are ordered and erected.
