LISBON — Last week’s defeat of a $1.3 million public works bond issue prompted council members Tuesday night to set a deadline of Aug. 1 to come up with alternatives.

Although voters passed bond issues for the School Department June 10, they voted down a bond to fund either an expansion of the public works garage or a new facility. The vote was 1,071 to 833.

The inadequate size of the building has plagued the town for years, and in February a truck caught fire, heavily damaging it. The garage was built in 1960.

Voters turned down similar proposals for a new public works garage in 2006 and 2007, prompting council Chairwoman Lisa Ward to say, “The town has never voted for a new public works garage. We have to look hard at reusing or expanding the existing building. We need to look at some other options and get some solid numbers.

“I look at this the way I look at my home budget: see how much money we have, and what we can do with it,” Ward said.

Interim Town Manager Dale Olmstead encouraged the council to look at a number of options.

“Do you want to take the insurance money and repair it or go through some other process?” he asked. The town has been negotiating with the insurance company which has offered $300,000.

Olmstead said the owners of the ETTI building and the Longchamps building, which the council had previously considered as future locations for the department, are still interested in working with the town, possibly on a rental basis. The insurance money could be used for rent, he said.

“My suggestion would be to appoint a small committee with two council members, two citizens and two staff members to look at the options,” Olmstead said.

“I wouldn’t mind doing that,” Councilor Roger Bickford said. He asked Councilor Chris Brunelle if he would join him and suggested that former council Chairman Fern Larochelle also be asked to serve.

Olmstead recommended that town engineer Ryan Leighton be on the committee along with the town’s finance director, Jessica Malloy. Other names that were suggested were Charles Smith and Carl Huston.

“We can also contact people who aren’t here tonight to see if they want to be involved,” Ward said.

“Put these people on a short leash,” Olmstead said. “Have them report back by Aug. 1.”

“That can be done,” Bickford said.

School Committee member Kathy Yergin said she “loved the idea of having a committee, but I would suggest inviting some new people.”

In other action, the council approved amendments to the town’s personnel policy as it relates to non-discrimination, sexual harassment and individuals with disabilities. The changes are posted on the town website, accessed from the June 17 agenda.

The council also approved a minor change to the council’s working rules. Agendas will now be posted on the Thursday prior to the regular Tuesday night meeting, instead of Friday.

Tracey Steuber, director of Economic and Community Development, announced that the foundation that has been poured for a new building next to Lisbon House of Pizza will house Aroma Joe’s Coffee. Volunteers are still needed for the Moxie Festival, Steuber said, which has been held on the second weekend of July since 1982.