Payson Town Council Regular Meeting - August 12, 2026
Payson Town Council Regular Meeting - August 12, 2026
The Payson Town Council held a regular meeting on August 12, 2026, at 4:00 p.m. in the Town Hall Council Chambers. Mayor Stephen Otto presided, and all seven council members were present. The meeting opened with a moment of silence for two Payson residents who died in a plane crash earlier that week. Key actions included approval of consent agenda items, three restaurant liquor licenses, a bond refinancing resolution (with amendments), a CDBG grant application, and allocation of $190,000 from council contingency funds for an affordable housing project.
Consent Calendar
- Approved the meeting minutes for June 24, July 8 (regular), and June 30 (special) 2026.
- Resolution 2026-031 authorizing an intergovernmental agreement with Gila County for centralized management of 9-1-1 grant funds.
- Resolution 2026-033 authorizing application for a Drinking Water State Revolving Fund loan from the Water Infrastructure Finance Authority of Arizona.
- Resolution 2026-037 authorizing an intergovernmental agreement with Star Valley for coordinated Community Development Block Grant applications.
- Resolution 2026-038 adopting a Fair Housing Policy affirming the town’s commitment to fair housing.
- Resolution 2026-039 authorizing an intergovernmental agreement with Star Valley for code enforcement services.
Public Comments & Testimony
- Tom Dunning: Encouraged the council to provide transparent and understandable information to the public regarding the potential refurbishing of Taylor Pool.
- Pat Lockwood: Requested that council direct staff to require Payson Concrete to hold a second public hearing regarding a potential zoning change for parcel 302-23-041, citing inadequate venue and unanswered questions for the more than 100 attendees.
- Robert Decker (Rim Wildfire Awareness Team): Supported town funding and support for fire hardening codes and urged proactive wildfire education.
- Ralph Townsend: Opposed the use of taxpayer funds for League of Cities and Towns dues, arguing the league protects municipal corporations rather than voter interests, and requested review and disclosure of league positions.
- Lori Thompson: Supported a practical, reasonable pool that could be used for swim lessons and competitions, citing drowning statistics and noting that Payson’s high school team has only 45 swimmers due to pool limitations.
- Jeff Robbins: Provided documents suggesting creation of a clean city commission and adoption of code compliance requirements similar to Star Valley, noting the current code is convoluted and enforcement takes too long.
- Richard Weland: Opposed emergency clauses for bond issues and higher taxes, supported business growth and public accountability.
- Charmaine Gurule: Opposed the American Library Association's Library Bill of Rights, arguing it undermines community values.
Discussion Items
- D.1 / H.1 – Woda Cooper Low Income Housing Tax Credit Project (Union Park Lofts): Omer Serig, Assistant Vice President of Development at Woda Cooper Companies, presented an update following the town’s earlier approval of tax breaks and fee waivers in March 2026. The project received tax credit reservation from the Arizona Department of Housing (selected from 37 applications, 11 awarded, 4 in rural counties). The proposed 74-unit community (19 one-bedroom, 39 two-bedroom, 16 three-bedroom) at 409 Beeline Highway will target workforce households earning 30%-60% of area median income ($20,000-$58,000 annually), with monthly rents ranging from $400-$950. Groundbreaking is tentatively scheduled for January-March 2027, with a 14-month construction period and pre-leasing in early 2028. The council discussed the need to allocate $190,000 from the Council Contingency Fund (as previously directed) to cover near-term costs; the sales tax waiver will be a later reimbursement. A motion to approve the use of contingency funds up to $190,000 passed 7-0. (The presentation followed the funding decision.)
- D.2 – Code Enforcement Presentation: Code Compliance Specialist Tiffany Brown-Cocroft provided an overview of code enforcement processes, policies, and legal frameworks (Fourth and Fourteenth Amendments, curtilage). She explained how violations are identified (complaint-driven, officer observation, limited proactive enforcement) and the step-by-step enforcement process (complaint intake, investigation within 5 business days, notice of violation with 30-day compliance period, reinspection, escalation). She clarified that code enforcement does not handle interior conditions, personal disputes, HOA rules, or aesthetic preferences. The goal is compliance through education and support, not punishment. Council discussion explored the “Clean to Compliance” program (grants for disabled/low-income residents), community dumpster events (currently once per year due to budget), and the need for more CDBG funding for housing rehab. The town currently enforces the 2018 codes; a new International Property Maintenance Code (IPMC) from the proposed 2024 code update would allow interior habitability enforcement.
- E.1 – AI Asian Bistro & Sushi Bar Liquor License: Public hearing opened and closed with no comments. Motion to approve the Series 012 Restaurant Liquor License passed 7-0.
- E.2 – Chicken Time Liquor License: Public hearing opened and closed with no comments. Motion to approve passed 7-0.
- E.3 – Fargo’s Liquor License: Public hearing opened and closed with no comments. Motion to approve passed 7-0.
- F.1 – Resolution 2026-034 (PSPRS Bond Refinancing): Zach Sakas of Greenberg Traurig and Jack Leeper of Stifel presented options to refinance the town’s Public Safety Personnel Retirement System (PSPRS) obligation. Three term options (10, 15, 20 years) were discussed; the 20-year was dismissed. Council debated amendments to limit the interest rate cap to 6.25% and the term to 11 years (to align with the original 2017 intention of retiring the debt). The motion stated “not to exceed an 11-year term after initial execution and not to exceed 6.25%.” The resolution does not contain an emergency clause, so the effective date is September 11, 2026 (30 days after adoption). Motion carried 7-0.
- F.2 – Resolution 2026-036 (CDBG Grant Application): Andrea Robles, Executive Director of Central Arizona Governments (CAG), explained the second public hearing to select a project for fiscal year 2026-2027 CDBG funds. The town expects approximately $187,208. Three projects were proposed at the first hearing (July 20, 2026): town sidewalk/curb ADA improvements, ADA park improvements, and ADA library improvements. No public comments were received. The motion to approve the resolution authorizing submission of the application with these projects passed 7-0.
- F.3 – First Public Hearing on Ordinance 2026-105 (International Building Codes): Doni Wilbanks, Public Works/Community Development Director, and Jerry Moore, Senior Plans Examiner, presented the proposed adoption of 2024 International Codes with local amendments, replacing the 2018 codes. The Building Advisory Board voted 5-0 to recommend approval. The slide summarizing changes (e.g., solar/battery storage, driveway materials) will be shared with council. A scrivener’s error in the caption (“BUSINESS REGULATIONS” instead of “BUILDING REGULATIONS”) was noted and will be corrected at the next hearing. No action was taken; a second public hearing will follow.
- H.2 – Taylor Pool Rehabilitation & Renovation RFQ Discussion: Town Engineer Nathan Larsen presented responses to the Request for Qualifications (RFQ) for design-build firms to rehabilitate Taylor Pool. Five firms submitted; the three highest-scoring were shortlisted: Chase Building Team, Core Construction, and Low Mountain Construction. The opinion of probable cost estimates varied widely due to different approaches (e.g., Low Mountain proposed building a shallower pool inside the existing structure, while Landmark proposed full demolition). The base rehab cost estimates ranged from approximately $7.8 million (Chase) to lower figures that may exclude overhead and profit. Council discussed the need to clarify features (leisure pool, 8- or 10-lane configuration, covered structure) and the procurement process (CMAR vs. design-bid-build). Town Attorney Matthew Podracky advised council members not to engage vendors outside public meetings to avoid appearances of impropriety. Staff will conduct interviews and bring firms back for council presentations before a selection is made.
Key Outcomes
- Consent Agenda: Approved 7-0.
- H.1 / D.1 – Woda Cooper Contingency Funds: Approved $190,000 from Council Contingency Fund (motion by Ferris, second by Haws), passed 7-0.
- E.1 – AI Asian Bistro & Sushi Bar Liquor License: Approved (motion by Vice Mayor Tubbs, second by Haws), passed 7-0.
- E.2 – Chicken Time Liquor License: Approved (motion by Flaherty, second by Bell), passed 7-0.
- E.3 – Fargo’s Liquor License: Approved (motion by Vice Mayor Tubbs, second by Flaherty), passed 7-0.
- F.1 – Resolution 2026-034: Approved as amended (11-year term, interest not to exceed 6.25%; motion by Vice Mayor Tubbs, second by Ferris), passed 7-0. Effective date September 11, 2026.
- F.2 – Resolution 2026-036: Approved (motion by Vice Mayor Tubbs, second by Bell), passed 7-0.
- F.3 – Ordinance 2026-105: First public hearing held; no action taken. Second public hearing scheduled.
- H.2 – Taylor Pool: Staff will continue interviews and bring top firms to council for presentations; no decision made.
Meeting Transcript
I call this meeting of the common council for the town of Payson a regular meeting August twelfth, twenty twenty six to order. And before we get started, I I would just like to offer a moment of silence for our two Payson residents that uh died in the plane crash and uh they will be missed greatly and uh I just uh just want to offer some time to t and respect for their families and uh to remember the impact they had on our town. So uh thank you. Uh with that done, I would like to invite invite Pastor Joe Tucson Hardy. You turn for Christ. Papa, we come to you, Lord, today for those of us who love Payson and seek your protection and guidance. Uh Holy Spirit, we ask you to fill our leaders with wisdom. Uh Lord, you uh run this meeting, be with each and every speaker, each and every decision that's made. Lord, we do lift up the family of those who've lost loved ones here in Payson Lord in that uh airplane crash, Lord. Pray you protect them and comfort them with the comfort we've been comforted with in times of tragedy. And uh Lord, we thank you for the entire town that's gathering around the families and providing for them. Lord, we ask you, Lord, again to meet us here, uh, be with our council and our mayor and uh everyone who's in leadership here in Payson Lord, we thank you for this wonderful town we have the privilege to live in. Pray you continue to just guide and lead us in order our steps, and Lord bless this time. In Jesus' name we pray. Let the record reflect that all council members are present. Thank you. When called to speak, please approach the podium, speak towards the microphone so your statements can be heard, give us your name. The town requests that you address your comments to the council as a whole. If you're speaking on an agenda item from today's meeting, you can wait until after that specific item is presented to speak, or you may state your comments now. Call to the public is regulated by time, place, and manner restrictions, and you cannot speak more than once at this meeting. Each speaker is limited to three minutes. If this disrupts the meeting and inhibits free speech rights, any person who engages in disruptive conduct may be removed or barred from the meeting if the person refuses to stop. So with that said, okay. Tom Dunning. I'm a 21 year resident of Payson. I'm glad to see that there's going to be a discussion of the pool on the agenda tonight. Because the people have a right to know. Should be a process that is open and understandable and transparent for the folks of Payson so that we don't buy a pig in a poke. Not only that, we would like to see the uh RFP, the actual description of the work to be done, the amount of money that it's going to cost, and whether or not all of the needed refurbishments will be done. The council can make this something that is open and accessible and understandable to the people of Payson. At this point, it's the beginning of the process, but I'm just asking, and the people of our town, I'm sure want to know how it's being done and how much it's going to cost, and what the final result will be. Thank you. Thank you. Pat Lockwood. Hi everyone. Thank you for allowing me to speak. My name is Pat Lockwood. I've been a resident of Payson since 2021. I currently live in Chaparral Pines. I'm a concerned citizen asking the town of Payson Council to understand the concerns of a significant number of property owners who may be negatively impacted by the request to change the zoning on tax parcel 3023041 from commercial C2 to mining and extraction for Payson Concrete. I, along with many others, attended a recent citizen participation meeting at Pays and Concrete's office. It was on Wednesday, July 22nd. There were more than a hundred people in attendance, foreign access to the 15 to 20 people that I believe Pays and Concrete staff had anticipated. Despite the information shared at that meeting, my neighbors and I continue to be alarmed at the scope and nature of the project. The venue was inadequate for the number of attendees, leaving most of us with unanswered questions. Among our concerns are the exact nature of the proposed commercial development, the amount of material to be extracted, and the restoration of the natural habitat once a project is complete. And even though town of Payson staff has told us that the applicant has met their obligations to hold a citizen's participation meeting, we believe that the nature of that meeting generated more questions than it answered and resulted in feelings of inadequate transparency and a fear that resident interests were not being protected. On behalf of my neighbors and me, we are asking the town of Payson Council to direct town of Payson staff to strongly encourage Payson Concrete, a second meeting that would adequately accommodate the number of concerned residents and to provide transparency and a more comprehensive picture of the project before the permitting even begins. Thank you. Thank you.
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