RANDOLPH -- Residents will see a slight increase in their sewer bills if they agree to a $750,000 pump station upgrade at their annual town meeting July 29.

The town has been offered $333,000 in grants and $417,000 in federal loans for the project from the U.S. Department of Agriculture's Rural Utilities Service.

Peter Hanley, chairman of the Board of Selectmen, said the project is a must.

"If we don't do it, we're in violation of the (combined sewer overflow) into the Kennebec," Hanley said. "If we don't correct it and make it right, we're going to be faced with heavy fines from the Environmental Protection Agency. Plus, it's going to be a great safety feature for the pump station operator. If you want to clean out the wet well or do any cleaning, you have to have rescue people standing by to meet the specifications. There's so many things the town has to do or it will be liable."

Without the upgrade, heavy rain or melting snow could overwhelm the sewer system and push untreated sewage into the Kennebec River.

Hanley said the $333,000 grant will pay 43 percent to 47 percent of the cost. The town would finance the rest of the project with a 30-year federal bond, he said. Payments for the $417,000 loan would be $23,000 a year, he said. He said there also could be more money coming to the town from the federal stimulus package.

"It's going to affect the sewer rate," he said. "It will be about $8.31 (more) a quarter, or between $2 and $3 a month."

The town hired AECOM Water in South Portland as the design engineer for the project. Aubrey Strause, project engineer, said operator safety and potential failure of the existing pumps -- resulting in a potential discharge of raw sewage to the Kennebec River -- were the highest priorities to the town as it considered replacement options.

"The pumps proposed in this design will allow the operator ground-level access to the pumps for routine maintenance or repair," Strause said. "Entrance to the wet pit -- a hazardous confined space -- will not be required."

She said town officials plan to advertise the project for bidding this month. Construction will begin in late summer or early fall.

The town will host an meeting for residents to discuss the project at 6 p.m., July 21, at the Town Office.

Bob Davis, a former selectman who serves on the Wastewater Committee, said this project has been in the works for years.

"The town selected this option based on life cycle costs, safety, and efficiency, and it represents the best overall value to the residents served by the sewer system," AECOM project manager Charlie Smith said.

Mechele Cooper -- 623-3811, ext. 408

mcooper@centralmaine.com