Payson Town Council Work Study Meeting - March 4, 2025
Payson Town Council Work Study Meeting - March 4, 2025
The Payson Town Council held a work study meeting on March 4, 2025, from approximately 3:04 p.m. to 7:45 p.m. The meeting consisted of two major agenda items: a presentation from Arizona Public Service (APS) on the Public Safety Power Shut-Off (PSPS) program and a comprehensive discussion on Capital Improvement Projects (CIPs), fee changes, and the FY26 property tax levy rate. As a work study, no formal votes were taken, but council provided direction on several items.
Discussion Items
A. APS Public Safety Power Shut-Off (PSPS) Presentation
- Janet Dean (APS Public Affairs Manager) and Mike Shaw (APS Local Supervisor) presented the 2025 Wildfire Mitigation Program, covering vegetation management, grid hardening, asset inspections, monitoring via AI smoke detection cameras, and operational mitigations.
- The PSPS program is a last-resort tool that may shut off power to high-risk feeders during extreme weather to prevent catastrophic wildfires. In 2025, 65 feeders are designated as PSPS-critical, including two in Payson and one serving Star Valley.
- Council members expressed concerns about impacts on residents with medical equipment, water supply, and hospital operations. APS stated that the hospital has a redundant power feed and backup generation; the Water Department reported 9.6 million gallons of storage (approx. 50 hours) with backup generators already installed.
- APS encouraged personal preparedness, medical monitoring registration, and coordination with Gila County Emergency Management and Red Cross for sheltering and device charging centers.
- The Fire Chief is working with APS on contingency plans, with meetings scheduled through the Fire Chiefs Association.
B. Presentation/Discussion on CIPs, Fee Changes, and FY26 Property Tax Levy Rate
Property Tax Levy Rate
- Dana Ohanesian (Finance Director) presented the current rate of $0.2992 per $100 assessed value, generating ~$720,000 annually (4% of Gila County property taxes). The maximum rate without a Truth in Taxation hearing is $0.2855; the absolute maximum is $0.3820. The last increase was in 2006.
- Council reached consensus to reduce the levy rate to $0.2855, noting that rising property values will likely increase total revenue. Council Member Nossek warned that the public may perceive this as a tax increase despite the rate reduction.
Fee Changes for FY26
- Proposed fee increases were reviewed by each department. Key proposals included:
- Airport: new gate card fees, transient parking fees, courtesy vehicle rental, and penalties for runway incursions and off-leash dogs.
- Community Development: clarification of temporary CO fees, increased permit fees for mechanical/plumbing/electrical.
- Engineering: simplification of equipment rate table.
- Fire Department: increased response fees based on cost drivers.
- Library: restructured meeting room rental ($100 for two hours, $25/hour thereafter).
- Parks & Recreation: increased rodeo grounds fee ($325 to $350/day), reduced ball field light rate ($30 to $15/hour), flexible parade and sponsorship fees (council discussed but did not change a $50,000 upper limit on sponsorships).
- Police Department: new booking fee ($75), increased impound fee ($25).
- Water Department: increased security deposits, meter testing fee ($50 to $100), reinstatement fees.
- Council did not request any changes to the proposed fee schedules. Fees will go to a public hearing on April 9, 2025, with adoption expected May 14, 2025, effective July 1, 2025.
Capital Improvement Projects (CIPs)
- Finance estimated available CIP funding: General Fund $7-9M, HURF $9M, Water Fund $17M, Bed Tax $165K. Total requests were $113M, scaled to $47M. Staff requested council prioritization.
- Water Department CIPs (total ~$15M) included PFAS treatment (mandated $20M total, $5M in FY26), remote meter reading program (net $1M after WIFA grant), well replacement, and water main replacement. Council noted the water fund is not as flush as assumed.
- Police Department requested nine vehicle replacements, a Flock camera system (grant-funded), vehicle barricades (grant-funded), and property/evidence facility upgrades.
- Fire Department requested $1.65M for transition to the DPS 800 MHz trunk system (state-funded infrastructure, town pays for radios) and $1.6M for Station 11 and 12 repairs. A public safety campus conceptual design was discussed, potentially funded via a general obligation bond (estimated $15-16M).
- Parks & Recreation recommended a three-part site evaluation for the Taylor Pool/aquatic facility to compare repair, expansion, or new construction at Rumsey Park or Malibu site. Council requested this evaluation.
- Event Center pre-design work had been suspended due to lack of funding. Council provided direction to proceed with finishing the pre-design (conceptual design, environmental, stakeholder engagement) using $400,000 already budgeted. The motion passed 5-2 (Council Members Ferris and Nossek opposed, citing budget constraints and desire to first understand the overall fiscal picture).
- Other CIPs included drainage improvements, street projects (Goodnow Road, Longhorn/McLean roundabout, Forest Drive, etc.), and a request for an appraisal of the Town Hall complex.
- Council directed staff to approach the American Legion to explore a 50/50 partnership for a flagpole and flag at the Highway 260 south entryway sign.
Key Outcomes
- No formal actions taken (work study).
- Consensus to reduce the property tax levy rate from $0.2992 to $0.2855 for FY26.
- Proposed fee changes will proceed to a public hearing on April 9, 2025, with adoption on May 14, 2025.
- Direction to staff to proceed with finishing pre-design work for the Payson Event Center (5-2 vote).
- Direction to perform a three-part site evaluation for the Taylor Pool aquatic facility.
- Direction to approach American Legion for a joint flagpole project at the south entry sign.
- Council expressed interest in obtaining an appraisal of the Town Hall building and complex.
- No specific CIP funding allocations were finalized; further prioritization will occur in upcoming budget work sessions.
Meeting Transcript
This is the common council, the town of Payson. Work study meeting March fourth, two thousand twenty-five. Father, we also asked that thou bless all of our first responders, both here locally and throughout the country. Um, as we have had a um the dry season that our lakes and streams can be filled, and we saved things in the city of Jesus Christ. Yes let the record show that all council members are present except for vice chair codes and council member players purpose of a meeting goes right to item APS public safety power shutoff presentation. Good afternoon from the podium and I think it should be loaded for you there is well good afternoon mayor counsel I'm Janet Dean I'm the public affairs manager for APS for the northeast part of the state which means I help support our local leadership and division with working here in Payson. Also with me tonight we have Mike Shaw who is our local supervisor he runs our local dock and is the one keeping your lights on. So we really do appreciate the time in front of you tonight or this afternoon. We want to talk to you about what really keeps us up every single night and that is wildfire and how we as a utility prepare and mitigate against wildfire and then what all of the different um tools and tactics we use to make sure we're doing everything possible to keep our community safe because with electrical infrastructure there is an inherent risk and so we have been working very very hard for many years now on our wildfire mitigation program. So today with your indulgence I want to talk at a very high level about what our wildfire mitigation program looks like the components of it because we want you to understand everything that we are doing and then we will get to what we really know you're interested in and that is the newest tool in our toolbox which is a public safety power shutoff and how that is going to come into play in the PESI area this year. So our comprehensive wildfire mitigation plan has five primary pillars and this is a program that we've been building I've I've been with APS just over 10 years. We've been building this program the entire time I've been with APS. And really one of the hallmarks and foundations of it is that first pillar which is vegetation management. And that is our comprehensive right-of-way clearance that we do along our rights of ways and we do this on a cyclical basis and every couple of years we are going through all the rights of ways our forestry team is and doing every in clearing anything out of the right of way making sure they're safe we also have been building what we call defensible space around poles. So all of the poles on our sit on our system that have equipment on electrical equipment that could spark for some reason we're clearing defensible space a 10 foot perimeter around the base of those poles so that if something does happen if there is a spark we have a fuse blow it's the the spark's going to fall on clear ground and we also have what we call our hazard tree program and this is a program where we're working outside of our right of ways to proactively identify trees that look unhealthy that might be dead that are tall enough that if they fall they could impact our system and this is a program where we really rely on our partners like the Forest Service state land departments because in our rights of ways we can clear whatever we think we need to outside of our right of way we have to work with our partners we identify we um we notify them that we've found these trees and then we have to get permission to take those out so we're working very closely in partnership. And I'm just going to say Mike if there's anything you think I'm missing jump up and add with me. So that's our vegetation management pillar and like I said this is kind of the foundation we've been doing this for many many many years. The partnership also comes from the residents too as well not just that's right we're working with the private property owners because it could be that the hazard tree or vegetation that we need to clear is on their property so we're working very closely with them. Correct okay a second component is grid our grid hard hardening investments that we're making and we're spending I think it was something like 110 million dollars last year on this fire mitigation program and part of this is grid hardening so we're doing ongoing updates to our distribution system. We are with some of our poles, we're doing a fire wrapping, mesh wrapping of our poles. And you can really see an example of that between here and Pine Strawberry, because that line was just rebuilt a few years ago. And you can see it almost looks like black chicken wire that goes up, you know, so high on those poles. And that is equipment that that mesh is designed when it gets hot. It the way I've heard it described, it kind of expands like those old worms that you would light at 4th of July and see them crawl, kind of expands like that and protects the infrastructure. And we've seen where fires come through on one of those fire-wrapped poles or one of those these poles that have the defensible space around them, and we'll see those poles are still standing. And that really helps. It protects the system and helps us keep power on for customers. Anything on this there? Okay. Um we're adding fuses, trying always to reduce any risk of sparks, and then when we can, we're replacing wood poles with steel poles. Now that can't happen on every wood pole because steel poles aren't climbable, and so they have to be where we can get a truck up to them for access for our troubleman and linemen. So that's the grid hardening. Asset inspection. Really, what this means is that every year on the lines that we've identified as being in areas through vegetation that has a much higher risk of fire, we are doing annual inspections on those, usually coming out of winter before we hit high fire risk. Mike and his teams are patrolling those lines and making sure that we've identified anything that maybe got broken from wind or snow or is on the verge of breaking, so that that is repaired prior to going into heightened fire fire risk times. And we're using what foot patrols, truck patrols, helicopter patrols, drones with infrared cameras. We're using a wide variety of techniques to make sure we get those inspections done, and then any work that we've identified through the inspections finished before fire risks get gets really high. This year, of course, is an anomaly. We all know we're already in fire restrictions in February, which we haven't seen before. Anything to add there? No, yeah, we should do a year-round patrol too, not just for the fire season, but we also go to lines year-round. Yeah. Sure, that comes first year. We don't have to do this on a mass. Yeah. Um, an area that I am very excited about is our pillar of monitoring and awareness. We have put a lot of focus into this area, and this is really to help our team of fire specialists and system engineers. It's to help us make data-driven decisions about our system as we think about it in relationship to wildfire. Um, through these 10 years, we've built an internal fire mitigation department that has about 18 people in it. We've got three meteorologists, I believe, right now, and multiple fire scientists, and then support staff.
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