Payson Town Council Regular Meeting – November 13, 2024
Payson Town Council Regular Meeting – November 13, 2024
The Payson Town Council held a regular meeting on November 13, 2024, at 4:02 p.m. in the Town Hall Council Chambers. The meeting included public comments on airport hangar leases, approval of a development agreement for American Gulch, a fuel mitigation contract, appointments to the Planning and Zoning Commission, and an executive session resulting in authorization of a separation agreement with Town Manager Troy Smith. All votes were unanimous (7-0) on each item.
Consent Calendar
- B.1 – Approved the minutes of the October 23, 2024, regular meeting.
- B.2 – Approved Resolution No. 3425 adopting the Town of Payson Title VI Plan.
- B.3 – Appointed Greg Raymond to the Public Safety Retirement Board (PSPRS) for a term expiring June 30, 2028.
Public Comments & Testimony
- David Wilcox, Hangar One administrator, described the history of the member-managed LLC leasing 10 hangars from the town on a month-to-month basis since 2011, paying $1,425/month plus insurance and taxes. He noted the 30-day cancellation clause discourages major repairs.
- Dale Mueller, an airport user and operator of rental aircraft, urged the town to build more hangars, stating hangar access is key to attracting pilots. He noted airports rarely support themselves and need FAA grants.
- Thomas West, a founding member of Payson Aero Club, warned that significant rent increases would force out local aviation clubs and renters, arguing the market cannot support Sedona-level rates. He said the town should respect the investments of local users.
- Adam Moore, a resident pilot, argued the LLC receives a “sweetheart deal” at one-third of the town’s rates, while there is a 22-year waitlist for hangars. He urged the council to take control of the hangars and charge market rates to avoid perceptions of favoritism. The issue is scheduled for the December 4 Airport Commission meeting.
Discussion Items
- Current Events Presentation: Mayor Higgins presented the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting to Finance Director Dana Ohanesian, who recognized Finance Supervisor Emily Shy. Town Manager Troy Smith reported on various items including the Rumsey Park update, the state’s residential rental tax prohibition (effective Jan 1, 2025), the Payson Ice Rink and Electric Light Parade (Dec 14 through Jan 19), Beards on Patrol fundraiser for retired firefighter John Klein, and recent police and fire department staffing gains.
- Proclamation – Payson Area Food Drive Action Months: Vice Mayor Underwood read a proclamation declaring December 2024 and January 2025 as Payson Area Food Drive Action Months. Charles Proudfoot accepted, noting the 14-year-old drive supplies 2,600 individuals monthly via four food pantries. The 2024-2025 goal is 20,000 to 30,000 pounds of food and $30,000 to $50,000. The town is running a department competition to collect non-perishables.
- F.1 – Resolution No. 3427 – American Gulch Development Agreement: Town Engineer Larry Halberstadt presented a development agreement with ELS Ventures, LLC. The developer will donate approximately 3.6 acres of land from the Overman estate to the town for construction of flood control and a linear park (bike/pedestrian paths). In return, the town will grant ingress/egress and public utility easements for the developer’s primary access off Main Street, with secondary access on McLane Road. The developer will construct the necessary bridge or culvert crossing. The project has been planned since 2002; the town has already acquired other parcels. Council Member Mona commended Halberstadt’s persistence; Council Member Nossek thanked property owners and staff. The resolution passed 7-0.
- H.1 – Healthy Forest Initiative Fuel Mitigation Contract: Battalion Chief Kevin McCully requested approval of a one-year contract with Tree Crafters M-K, Inc. for up to $180,000. Of that, $65,000 is for clearing a 21.17-acre hazardous property on Malibu Drive (with $41,493 reimbursed via an Arizona State Wildfire Hazardous Fuels Grant extension), and $115,000 is for ongoing maintenance and future mitigation on town properties. Council Member Tubbs asked about safety of ingress/egress; Halberstadt noted secondary access would be provided. Approved 7-0.
- H.2 – Appointment to Planning and Zoning Commission (term expiring June 30, 2028): Council appointed Jimmy Lee. Motion by Vice Mayor Underwood, seconded by Council Member Mona; approved 7-0.
- H.3 – Appointment to Planning and Zoning Commission (term expiring June 30, 2027): Council appointed Jeremy Gephart. Motion by Vice Mayor Underwood, seconded by Council Member Nossek; approved 7-0.
- H.4 – Executive Session and Separation Agreement: The council recessed to executive session at 4:53 p.m., citing A.R.S. §38-431.03(A)(1),(3),(4) for discussion of employment conditions of a public appointee. Reconvening at 5:52 p.m., Council Member Mona moved to authorize the Mayor to execute a Separation Agreement with Town Manager Troy Smith consistent with terms discussed. Vice Mayor Underwood stated it was in the best interest of the town. Council Members Flaherty and Nossek thanked Smith for his service. Smith thanked the council, staff, and community, noting progress in infrastructure, technology, and culture. The motion carried 7-0.
Key Outcomes
- All votes were unanimous (7-0) on every item.
- Approved the consent agenda (minutes, Title VI plan, PSPRS appointment).
- Approved Resolution No. 3427 authorizing the American Gulch Development Agreement with ELS Ventures, LLC, including donation of 3.6 acres.
- Approved the $180,000 fuel mitigation contract with Tree Crafters M-K, Inc.
- Appointed Jimmy Lee and Jeremy Gephart to the Planning and Zoning Commission.
- Authorized the Mayor to execute a separation agreement with Town Manager Troy Smith.
- Meeting adjourned at 5:56 p.m.
Meeting Transcript
Welcome everyone to tonight's Payson Town Council meeting. I'd like to uh call the meeting uh to order. Um, if I could have Pastor Rory Gruders, please uh from Restoration Church come to the podium for the invocation. Everyone, you can please rise, remove your hat. Thank you. Lord Jesus, we thank you for our country and for our community. We thank you, Father, for taking us through this uh election season and cycle. We ask for wisdom, Father, on those whose candidates uh we ask for humbleness rather on those whose candidates won. We ask for grace on those who did not. We ask for a peaceful transition of administrations, both in our community and in our country. We thank you, Father, for the police officers and the firemen and women, and the town council and the ambulance workers and all of those who serve and protect our community. We pray your blessings upon them and their families. And Father, for this meeting today, we ask for your peace in all discussions and in our differences. We ask for wisdom for the town council's deliberations and in their decisions. And we thank you again for the privilege of living in this beautiful community that we call home, the town of Payson. We pray this in your name, Lord Jesus. Amen. Thank you, Pastor. Sir. I pledge allegiance. And to the republic for which one nation. Yeah, that another meeting. All right, so call to the public have a few speaker requests forms. Let's see, we'll start with uh Mr. David Wilcox. Yes, yep, if you uh pass a few the clerks there, perfect. One other hanger record. All right. Thank you, sir. If you could please state your name in yeah, three minutes. I'm David Wilcox. I am what you might call an administrator of Payson Hangar one, which is a uh a set of hangers, set of ten hangars that is on the airport property, and we lease the property and the building from the town of Payson. Uh this hangar, and this is just a background on the way things are today, was transported and erected here in 1990-91, something in that uh vintage. And we had a 20-year long-term lease on it. Uh lease ran out in 2011. And since then, we have been month to month uh with the town of Payson having the option to cancel our contract with nothing more than 30 days' notice. Okay. Uh I didn't realize this when I uh purchased my hangar. I thought I owned the hangar and we were just renting the plant. That turned out not to be the case. Um the reason we didn't get another long-term lease was because there was a plan to move the taxiway into the location where or near where the hangar was. And so they didn't renew a long-term lease, and thus we're still on the 30 uh 30-day thing. Basin hangar one is an LLC, and it is member managed. Uh, there is no manager uh uh per se, but I handle the checkbook. There are seven of the LCL uh LC members, and each one acts as if we own that hangar, although we're perfectly aware that we don't. But when it comes to maintenance or sale and resale renting to another person, we perform as though we own that hangar. Each member has a vote in all major decisions of the LLC, and uh four of the hangars are actually occupied by the person who's a member of the LSC. Three of the members rent their uh hangers out, and three of them are owned by the LLC without a specific owner, and we rent those out directly as uh as the company. Uh Basin's only available rental aircraft are in two of our hangars. Uh we're currently paying 1425 a month, uh about 17,000 a year for the for the lease, and we pay for insurance uh at the tune of uh $1,100 for the building, $2,500 for liability, and we also pay the property taxes and an electric bill on the property.
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