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Chino Valley plans WIFA application to fund PFAS treatment at Brightstar well; towns share expected near $500,000
Summary
Town staff told council an updated class-3 cost estimate for a PFAS (PFOA) remediation system at the Brightstar production facility centers near $8.1 million and said ADQ has pledged about $5.1 million; staff recommended applying to WIFA for a second 90%-forgivable/10% loan pot that would limit the towns cash obligation to roughly $500,000. The council gave consensus to return May 26 for formal action.
A proposed treatment system to remove PFAS chemicals from water at Chino Valleys Brightstar water production facility is moving toward formal action after town and project partners outlined updated costs and funding options at a May 12 study session.
Town staff said Arizona Department of Environmental Quality (ADQ) has already committed roughly $5.1 million toward a remediation project based on an earlier Corollo Engineering estimate. Corollos more recent class-3 estimate presented May 12 shows an $8.1 million midpoint with an expected accuracy range of roughly $6 million to $10 million, primarily driven by site grading, a multi-sided site wall and other site-specific needs, the firm said.
"We received notice in 2023 and later learned the EPA established a PFOA maximum contaminant level of 4 parts per trillion," Corollos presentation to council noted. Staff told council Brightstar measured in the high single digits per trillion, above the final EPA standard. Town staff said compliance deadlines are set for 2029.
To bridge the gap, town staff said the town submitted a Project Priority List application to the Water Infrastructure Finance Authority (WIFA) for $5 million in a program that provides 90% forgivable principal and a 10% loan for PFAS-related projects. Combined with ADQs $5.1 million, staff said the two funding sources would produce roughly $10.1 million in project funding and leave the town with about $500,000 in net loan exposure under the proposed terms.
Corollo explained the project delivery method would be construction manager at-risk (CMAR), bringing a contractor in during design to limit cost growth. Staff said the project will require about one acre of adjacent land for the treatment footprint and a temporary gravel access road capable of supporting heavy equipment; a Phase I environmental assessment and an appraisal of the parcel are complete, and an ALTA survey is pending.
Council members pressed staff on several points, including the contingency built into earlier estimates, whether water and wastewater enterprise funds can be commingled (they cannot), long-term operations and media replacement costs, and whether third-party litigation (for example 3M or DuPont class actions) may offset town costs. Town attorneys and staff said the town has filed claims as part of national PFAS litigation but has not yet recovered funds.
Town staff asked for council concurrence to place a formal WIFA loan/grant approval item on the May 26 agenda. Council members gave general consensus to return May 26 for action rather than take formal action on May 12.
Next steps: staff will return May 26 with an action item to authorize the WIFA application and related intergovernmental agreements, and will provide more detail on land acquisition costs, annual operation and maintenance projections for media replacement, and the final WIFA loan terms if the application is approved.
