Payson Planning and Zoning Commission Meeting - October 6, 2025

The Planning and Zoning Commission met on Monday, October 6, 2025, at 3:00 p.m. in the Town Hall Council Chambers. The meeting included approval of previous minutes, a public hearing for a conditional use permit (CUP), and a presentation by the Water Department on water resources and the development review process. The meeting adjourned at 4:04 p.m.

Consent Calendar

• Approval of Minutes (September 8, 2025): Motion by Laura Malone, seconded by Jeremy P. Gephart. Carried 5-0. (Present: Douglas Martin, Karen Schaier, Laura Malone, Jimmy D. Lee, Jeremy P. Gephart; absent: Nathan Morris.)

Scheduled Hearings

CUP25-001 – Conditional Use Permit for Residential Care Facility

• Applicant: Dustin Bullard, agent for Adams Real Estate Holdings LLC (property owner).
• Location: 300 W Wade Ln, tax parcel 30408125A (zoned R3).
• Proposal: Operation of a residential care facility/institution (Mogollon Treatment Center) for temporary care and rehabilitation within an existing residence. Use is conditionally allowed in R3 zoning.
• Key Details: Maximum 16 residents (occupants must be capable of self-evacuation); custodial care only (no acute medical/psychiatric care); on-site well disconnected; fire sprinklers required; changes in occupancy may require a tenant improvement permit; compliance with Unified Development Code (Chapter 152); 12 conditions recommended by staff.
• Staff Recommendation: Approval, subject to conditions.
• Applicant Comments: Dustin Bullard stated the estimated opening is possibly by January 1, 2026, depending on fire sprinkler and inspection timelines. He noted that his previous similar facility next door (male facility) took about 18 months to open. Bullard emphasized use of local contractors where possible and community engagement (e.g., donated dirt to bike park, plans to sponsor local sports). He explained that residents are voluntary (not court-ordered, though some may be on probation), and that disruptive individuals are not placed in Payson. He also noted the property has been improved from an eyesore. Bullard added that state audits are unannounced, and exceeding licensed capacity results in immediate license revocation.
• Commissioner Questions & Positions:
  • Jimmy Lee expressed support but encouraged the applicant to create a formal feedback loop for neighbors to address future concerns, given that circumstances may change. Bullard offered to add contact information on the website or a placard.
  • Doug Martin asked if occupants are court-ordered; Bullard clarified participation is voluntary.
  • Nicole Adams (Zoning Administrator) noted that code enforcement can address violations or nuisances, and changes in use would require a new CUP.
  • The applicant noted that the fire department would verify occupancy during certificate of occupancy inspection, and state audits occur unannounced.
• Motion: by Karen Schaier, seconded by Laura Malone, to approve CUP25-001 subject to staff-recommended conditions. Vote: 5-0 (all present voted yes). Unanimously passed.

Discussion Items

Water Department Requirements and Review Process Presentation

• Presenter: Tanner Henry, Water Department Director.
• Overview of Water Resources:
  • Average annual precipitation: 18 inches (varies widely; e.g., 1978 had ~33 inches, 2002 had <10 inches).
  • Current water consumption: ~1,800 acre-feet per year supporting a population of ~16,000.
  • Water portfolio capacity: ~4,500 acre-feet, enough to support up to ~44,000 people (town is landlocked, so 44,000 is unlikely).
  • Sources: Groundwater (38 wells; safe yield 2,520 acre-feet/yr; natural recharge ~2,282 acre-feet/yr); Green Valley Park (reclaimed water percolation that augments recharge); CC Cragin (Blue Ridge Reservoir) project (provides up to 3,000 acre-feet via a water treatment plant — note typo correction from 300 to 3,000).
• Groundwater Recharge & Storage:
  • Pre-2019, 100% groundwater; now CC Cragin water is injected into the aquifer via aquifer storage and recovery (ASR) wells. Since 2019, ~3,000 acre-feet total stored.
  • ASR wells use intelligent valves (V Smart) to maximize injection in fractured granite geology, a unique approach drawing international interest.
  • Monitoring shows recovery: groundwater levels dropped from ~80 ft to ~230 ft in early 2000s, then rebounded to ~110 ft after CC Cragin began.
• Development Review Process:
  • Staff reviews proposed developments for water demands, fire flows, and infrastructure needs.
  • If inadequate, developer must improve system (e.g., booster stations, new mains).
  • Public water main construction requires ADEQ approval after disinfection and bacteriological testing.
• Water Development Fees:
  • Fee per Equivalent Dwelling Unit (EDU): $3,391 (set by consultant per state code).
  • Meter installation: $500 if infrastructure exists; $1,000 if new service line required.
  • True-up period for commercial uses: 3 years.
• Resource Management:
  • Not in an Active Management Area (AMA), so no 100-year assured water supply designation required. Town is considering voluntary acquisition for readiness and to answer realtor inquiries, but cost is ~$250,000.
  • Town has drought stages in code based on consumption vs. production.
  • CC Cragin water right is a congressional allotment; use-it-or-lose-it risk mitigated by ASR injection or filing a water conservation plan with ADWR.
• Commissioner Interaction:
  • Commissioner Laura Malone asked about the