Chino Valley staff urge pause on $2M water design loan while WRF and PFAS plans advance

Town staff told the Chino Valley council they recommend pausing a $2 million design loan for a proposed water production facility and taking more time to align investments with updated master-planning and where growth is actually occurring.

Staff explained the water-reclamation-facility (WRF) expansion needs, describing a $10 million estimated capital need to prevent regulatory exceedances. At the same time, staff reported new financing terms indicating the design-only portion would carry follow-on costs and that, because the town is paying primarily for design now, the town could face significant future obligations if construction does not follow immediately.

“Because we are only doing design with this one, it's a two-year interval,” staff said when explaining state funding terms and the town’s potential $1.2 million exposure after the initial term if the project is not advanced. Councilors and staff discussed lower-cost resiliency alternatives — valves, pumps, emergency interconnects with Prescott, or targeted improvements that address fire-suppression needs — as potentially delivering needed resilience at a fraction of the cost.

The workshop also addressed PFAS/PFOS issues at Brightstar. Staff said state and federal partners are funding construction and preliminary design for PFAS treatment, but ongoing operations and maintenance costs will fall to the town once treatment is in place.

Council asked staff to provide updated cost scenarios, master-plan input and timing options before the next budget decision points in April. Staff will return with refined analyses of siting alternatives, potential interconnect costs, and implications for water rates and the general fund.