DIXFIELD – Selectmen unanimously agreed Monday night to sign a three-year contract with the Mexico Water District for operation of the Dixfield Water Department.

Town Manager Tom Richmond said Tuesday morning that the agreement is contingent upon a review of the contract by the Water Advisory Committee.

As proposed, the contract would begin on Jan. 1, 2008, and cost $56,500 a year, plus about $13,000 for the first year for health insurance costs.

Richmond estimated the cost for health insurance to rise about $4,000 a year for each of the subsequent years of the contract.

A special meeting of the Water Advisory Committee has been set for 5 p.m. on Thursday.

The decision to stay with the Mexico Water District was made following a 45-minute closed door session.

Earlier in the meeting, the Mexico Water District trustees and district Superintendent Jim White appeared before the board to discuss the issue.

“We’re not going to do it for a loss,” said trustee Byron Ouellette. “For the same money, you will get three men instead of one and quarter or one and a third.”

Trustee Ernie Robichaud said the agreement should be a benefit to both towns.

The Mexico Water District has operated the Dixfield Water Department for much of the past two years.

In other matters on Monday, Rumford resident Phil Blampied appeared before the board to invite them to a economic development conference on Saturday morning.

“The economy should be higher than it is. There are programs available for economic development, to speed the regrowth of the area,” he said.

He said about 15 spots remain for the free conference, but reservations must be made by calling 866-296-4975.