Fairlee — The day after voters defeated a proposed $4.1 million fix to its water woes, Fairlee officials are grappling with how to address a failing water tank, aging water lines, and water quality issues.

The bond, which failed on an 89-77 vote, would have spent $1.4 million on a filtration and softening system to address manganese levels that have, at times, flirted with maximum allowable limits established in state health standards.

The manganese is the root cause of complaints about water taste among the town’s residents. Last year, of 27 municipal water users who responded to a mailed survey, 12 said they had problems with the water taste.

Water Department Chief Operator Lance Colby typically responds to such complaints by swapping out the hot water heater’s anode rod, which he said sometimes reacts with the manganese to affect the flavor.

“Ninety percent of the time, that fixes the problem,” he said.

But Selectboard Chairwoman Cathy McGrath said the problem goes beyond taste and could constitute a health concern, because tests of manganese levels have come close to the maximum concentration of .3 milligrams per liter allowed by the Vermont Department of Health.

McGrath said tests performed over the past 25 years have shown levels ranging from .096 — about a third of the maximum allowable level — to .27 milligrams per liter.

Although she said the data is difficult to interpret, because levels fluctuate according to season and specific testing location within the system, it seems to her that levels are slowly rising.

“Based on the numbers that have been presented to me, my perception is that it’s getting worse over time,” she said.

In low doses, manganese is an essential mineral for human health, but too much of it can be a bad thing. It can cause damage to the nervous system, particularly in very young children, according to the Vermont Department of Health.

“Infants and children up to 1 year old should not be given water containing manganese over 0.3 mg/L because they could have greater difficulty processing manganese than older children and adults,” according to the health department.

McGrath said it’s important to address the issue before levels cross the permissible threshold.

“We don’t want to be in a situation that a big boss comes in and says, ‘You’re now out of compliance.’ We don’t want to be forced to address them at a time when we haven’t made the plans to do so. We want to be ahead of the curve.”

McGrath and other bond supporters argued that this was a good time to pursue the water bond, because town officials had laid groundwork for an application for funding under a USDA’s Water & Waste Disposal Loan & Grant Program that could pay for as much as 45 percent of the town’s out-of-pocket costs for the project.

But Colby said he voted against the bond himself, in part because he feels the project has been rushed to meet the USDA’s application deadline in August.

“Now we’ve got time, not to step back, but to work on things and see, OK, how much of this do we really need to do?” he said. “Are there things that are less expensive alternatives, but that are still good?”

McGrath said she wasn’t ruling out the possibility of seeking a revote on the bond, in part because the issue brought out only 166 voters, less than half of the 385 who turned up to reaffirm support for an $850,000 town hall renovation project earlier this year.

If community members petitioned for a revote, she said, it would have to be done on a tight timetable that would include a 30-day warning period before the USDA’s August grant deadline.

If a revote does not happen, she said, she would look to an advisory committee formed by the Selectboard to come up with recommendations on other paths forward.

Other issues facing the town’s water system include the failing 265,000 gallon water tank on Bald Top Road. The town hopes to recover the $1.1 million replacement costs from the company that built the tank in 2004.

Chris Callahan, the Springfield, Vt.-based lawyer who’s representing the town in the effort, said the process is in its early stages, and that no legal complaint has been filed.

“We’re going to have a site inspection with the various parties,” he said. Callahan said that if the parties couldn’t come to an agreement, a formal complaint likely would be filed later this summer. Colby said the town is testing the water on a weekly basis to guard against potential contamination caused by the deterioration of the tank’s concrete roof.

The bond would have also paid for the replacement of 1.6 miles of water main for $1.4 million. Colby has said he believes only a subset of that main actually needs to be replaced.

McGrath cast the issues as important for the continued economic development of the town. “Clearly, we can’t ignore these needs in the water system,” she said. “We need to address them. Folks have to know that we have good water in the town of Fairlee.”

Matt Hongoltz-Hetling can be reached at mhonghet@vnews.com or 603-727-3211.