Payson Town Council Regular Meeting - May 14, 2025

The Payson Town Council held a regular meeting on May 14, 2025, at 4:05 p.m. in the Town Hall Council Chambers. The meeting lasted until approximately 10:19 p.m. and covered a wide range of topics including proclamations, public comments, fee schedules, zoning changes, wildfire structure hardening, airport hangar management, and aquatic center location selection. Council members present: Mayor Stephen Otto, Council Members Charlie Bell, Jim Ferris, Brett Flaherty, Dallin Haws, Scott Nossek, and Vice Mayor Susan "Suzy" Tubbs (joined via Zoom at 5:02 p.m.).

Ceremonial; Announcements; Presentations; Introductions

• D.1 Proclamation declaring May 2025 as Older Americans Month, accepted by Janice Chesser of Payson Senior Center. She reported on upcoming activities including a talent show, lunch for 90, senior prom, and annual meeting; membership is $15/year for individuals 50 and finer.
• D.2 Proclamation recognizing May as Payson Adventure Month, accepted by Doni Wilbanks, Steve Richardson, and Julie Leonard. A promotional video has received over 506,000 views.
• D.3 Proclamation declaring May 12-17, 2025 as Payson Western Wear Days, accepted by the Payson Pro Rodeo Committee. 267 contestants expected at the Gary Hardt Memorial Spring Rodeo (May 15-17).
• D.4 Proclamation declaring May 18-24, 2025 as Emergency Medical Services Week, accepted by Fire Chief David Staub, Battalion Chief Dan Bramble, and fire department members. Chief Staub recognized Shelley Henry for her contributions as Prehospital Coordinator.
• D.5 Proclamation designating May 11-17, 2025 as National Police Week, accepted by Police Commanders Jesse Davies and Joshua Haines, and Officer Kevin Ruch on behalf of the Payson Police Department.

Consent Calendar

• B.1 Approved minutes from March 26, April 1, April 9, April 23, and May 8, 2025.
• B.2 Resolution No. 3442: Agreement with Payson Senior Center, Inc. for disbursement of public purpose funds.
• B.3 Resolution No. 3444: Amendment to intergovernmental agreement with Gila County for consolidated court services.
• B.4 Resolution No. 3445: Agreement with Humane Society of Central Arizona, Inc. for FY 2025-2026.
• B.5 Resolution No. 3446: Monetary support for the Mogollon Valley Pit Program (Blattner Brush Pit).
• All items were approved by a single motion, passed 7-0.

Public Comments & Testimony

Numerous residents spoke during the Call to the Public and during public hearings. Key themes:

• Aquatic Center: Many speakers advocated for the Malibu site (Roy Sandoval, Tom Dunning, Anna Van Zile, Deb Jones) citing better access, new construction, earlier completion date, and cheaper long-term maintenance. Others supported renovation of Taylor Pool (Inga Chouinard questioned figures and requested hard numbers; Lori Thompson argued renovation could be done for under $6 million and noted the school district prefers Rumsey). Barbara Underwood emphasized need for covered year-round pool with zero-entry access.
• Airport/Hangar One: Several speakers expressed concerns about proposed changes. Rodney Tang and Brad Lawrence highlighted aviation community contributions (scholarships, educational programs) and called for open dialogue. Dale Mueller cautioned against using tracking systems for landing fees. Adam Moore opposed exclusive rights for a private LLC to manage town-owned hangars, alleging cronyism. Christopher Giavarini urged FAA-funded FBO status and improvements. Tom West and Mike White (representing Payson Hangar One LLC) argued for continued management to keep costs low and maintain volunteer efforts. Marjie Oldenkamp advocated for an open RFP process.
• Fees: Tom West opposed new fees for flight instructors and runway incursions, citing financial hardship for students. Margie Oldenkamp opposed fees for the courtesy car. Lori Permenter raised concerns about water deposit increases causing hardship.
• Wildfire Structure Hardening: Bob Decker and Alan MacKay (RimWAT) supported the code, referencing recent wildfires. Kevin Sokol (builder) expressed concerns about cost increases of $10,000-$20,000 per home and urged communication with builders.
• Miscellaneous: Charlie Seraphin criticized sidewalk replacement on Airport Road as unnecessary and urged fiscal responsibility.

Discussion Items

• E.1 Public Hearing on Occupational Licensing: Town Clerk Tracie Bailey and Town Attorney Robert Wingo presented the requirement to continue existing licenses (peddlers, solicitors, mobile merchants, second-hand dealers) under state law. Public comment included questions about photo IDs and enforcement. Council voted unanimously to continue the licenses.
• F.1 Second Public Hearing on Fee Schedule (Resolution 3438): Finance Director Dana Ohanesian reviewed proposed fees. An error was corrected: Type 2/3 helicopter fee should be $0 for FY 2024-2025, increasing to $10/night. The airport commission requested elimination of the flight instructor fee. Discussion included concern about water deposits and other fees. Motion to approve with modification (zero fee for flight instructors) passed 6-1 (Council Member Bell dissenting).
• F.2 Second Public Hearing on Rezoning (Ordinance 969): Planner Nicole Adams presented rezoning 7.66 acres at 1500 E Frontier Street from R1-175 to R1-90 for a 5-lot subdivision. The Planning and Zoning Commission recommended approval (6-0). No public comments. Motion to approve passed 7-0.
• F.3 Second Public Hearing on Wildfire Structure Hardening Code (Ordinance 970): Fuels Manager Kevin McCully presented the code applying to new structures and substantial remodels. Builder Kevin Sokol expressed concerns about cost impacts ($10,000-$20,000 per home) and lack of clarity in dimensions. Council discussed compromise. Several members favored additional outreach to contractors. Council directed staff to engage with the development community and return with refinements.
• G.1 Presentation by Payson Hangar One LLC: Tom Thompson, Mike White, and Tom West presented arguments for a new 20-year lease, citing cost savings, volunteer maintenance, and FAA grant compliance. They argued hangar doors are repairable (structural engineer report) and that an RFP is unnecessary. Town Attorney Wingo stated the current lease is deficient and that an RFP would best meet FAA requirements.
• G.2 Council Decision Request to Assume Hangar One Management: Airport Coordinator Dennis Dueker presented concerns about liability, FAA grant assurances (especially non-discrimination), and the condition of hangar doors. He recommended town takeover with standardized one-year leases. After discussion, a motion to approve town management within 30 days and not renew the ground lease with PHO LLC passed 6-1 (Mayor Otto dissenting, citing lack of faith in town's ability to maintain assets).
• G.3 Council Decision Request on Aquatic Center Location: Rod Buchanan presented a high-level assessment of five options at Taylor Pool/Rumsey Park and Malibu site. Key differences: Malibu offers earlier completion (March 2027 vs. January 2028), new infrastructure, and room for expansion, but costs approximately $700,000 more for like-for-like. Parking costs were estimated at $1 million. Council debated tradeoffs, funding (potential GO bond), and community input. Motion to approve Option 5 at the Malibu location and authorize up to $1.48 million for construction documents and pre-construction services passed 4-3 (Mayor Otto, Council Members Bell and Ferris dissenting).

Key Outcomes

• Consent Agenda: Approved 7-0.
• Occupational Licensing: Continued existing licenses (motion carried 7-0).
• Fee Schedule (Resolution 3438): Approved with modification eliminating flight instructor fee for FY 2025-2026 (6-1; Bell no).
• Rezoning (Ordinance 969): Approved 7-0.
• Wildfire Structure Hardening (Ordinance 970): Direction given to staff to conduct additional outreach with builders and bring back refined code; no final vote.
• Hangar One Management (Council Decision Request): Council approved town assuming management within 30 days, not renewing ground lease, and freezing tenants for 30 days (6-1; Otto no).
• Aquatic Center: Council selected Option 5 at the Malibu location and authorized up to $1.48 million for construction documents and pre-construction services (4-3; Otto, Bell, Ferris no).