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Payson water officials warn PFAS mitigation could cost millions; town pursuing $5M state support
Summary
Water staff told the council that PFAS mitigation is a regulatory requirement and that initial feasibility estimates for the first treatment project grew from $4M to roughly $15M; staff said Arizona agencies have identified $5M for the first project while the town pursues additional funding.
Water department staff described an urgent compliance requirement for per‑ and polyfluoroalkyl substances (PFAS), saying, "PFAS is a federal regulation that we have to mitigate by 2031, I believe." The department reported earlier feasibility work had estimated an initial treatment project at about $4 million, but that the Arizona Department of Administration (ADOA) now estimates the first project could be about $15 million.
Staff said those revised estimates increased the town’s projected exposure for treatment across its system and that the town is actively pursuing outside funding. "Right now, we have $5,000,000 coming," a water official said, describing a multi‑party agreement being drafted with ADEQ and ADOA that would provide state funding for the first site while the town seeks additional resources.
Officials said uncertainty in project cost estimates means the town will seek a construction management‑at‑risk (CMAR) contractor to set a guaranteed maximum price (GMP) later in the year; staff said that GMP should be known in November after a CMAR selection process and cost validation. The water director said the town continues to seek federal and state grant funds, and staff noted an active contract out with ADOA to select a CMAR.
Council members and staff discussed the potential scale of the work: staff repeated past feasibility numbers (a $4 million pilot; a $25 million townwide figure in an earlier study) and acknowledged a wide range of estimates. Staff said the town will continue to pursue state and federal funding and lobbying efforts to reduce the local funding burden.
Next steps recorded in the workshop: finalize the ADOA/ADEQ agreement for council approval, pursue CMAR selection and return to council once the GMP and firm cost estimates are available. The transcript contains no final decision on funding or contractor selection.
