DIXFIELD – Selectmen on Monday unanimously signed a three-year contract with the Mexico Water District to operate Dixfield’s water department. They also approved a new policy governing use of town streets by all-terrain vehicles.

Both actions followed discussions and negotiations for as long as two years.

Dixfield will pay its neighbor $56,500 during 2008, $59,325 during 2009, and $62,292 during 2010 for the water operation service.

On top of that will be Dixfield’s share of health insurance and employee protection estimated by Town Manager Tom Richmond at about $13,000 a year, to be billed monthly.

That figure could rise as much as $4,000 annually, Richmond said.

The Mexico Water District has been operating the town’s water department for much of the past two years. The new agreement goes into effect on Jan. 1, 2008.

A new ATV policy puts the town in line with state guidelines. Several streets will allow access to the official ATV route for people who live within 1,500 feet of that route. Ellis Street was deleted from the new policy proposal because of traffic congestion and other traffic dangers in front of a convenience store at the site.

Board members also agreed to retain the 10 mph speed limit, as requested by several residents who appeared before the board to register concerns and complaints about speeding ATVs.

Vice-Chairman Brad Dyer said the best way to make the policy work was through enforcement.

Richmond said residents on streets where ATV speeding appears to be a problem should contact the Oxford County Sheriff’s Office so the complaint can be documented.

In other matters, the board approved using about $4,300 received from timber cutting at or around McGouldrick Park to operate the park’s hockey rink this winter.

Funds for operating the rink this year are not in the municipal budget, said Richmond, so the tree-cutting money will have to be used.

Volunteers will also be needed to help operate the rink.

He said a line item designating funds to operate the rink next year will be placed in the 2008-09 municipal budget.

Following the regular board meeting, a closed session was held to discuss a personnel matter.