NEW GLOUCESTER — Selectmen on Wednesday endorsed submitting a public water grant proposal to the Cumberland County Community Block Grant program requesting a minimum of $375,000 to build a public water supply for Upper Gloucester.

Town Manager Sumner Field III said Town Planner Paul First would complete the grant application and submit it for a Community Development Block Grant by Feb. 3.

At last week’s public hearing held for residents living within a designated area in Upper Gloucester, engineers, an attorney, a state Department of Environmental Protection official, a Maine Rural Water official and other experts gave details about the proposed public water system.

The project is expected to cost between $2 million and $3 million, depending if fire suppression is included.

Residents who have contaminated wells will be hooked up to the public system if it is approved and funded.

Others living in the district may voluntarily elect to join.

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A well source identified at the New Gloucester Fairgrounds can supply water to residents and business establishments along a proposed distribution area bounded by the Bald Hill Road at the Maine Turnpike bridge toward the blinking light at Route 100 in the Upper Village, along the Upper Village Road plus a portion of Peacock Hill Road, the Hatch Road and a section of Route 231 to Memorial School.

Groundwater contamination from several small gas stations, road salt and uranium from granite bedrock exceeds primary drinking water standards.

The gravel/bedrock source from a well at the Bald Hill Road fairgrounds property has sufficient capacity and quality to meet the current and future needs of the Upper Village, officials said.

Registered voters living within the boundaries of the proposed water district will vote on proceeding to form the water district on Jan. 25 from noon to 7 p.m. at the New Gloucester Town Hall. Absentee ballots will be available, Field said.

The project would require funding assistance from several sources to proceed.

In other business, selectmen received a draft budget proposal developed by the town manager for 2012-13 in preparation for selectmen workshops that begin at 7 p.m. on Jan. 23 at the Community Building.

A citizen-appointed Budget Committee to advise selectmen starts in-depth reviews of the budget on Feb. 8.

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