Payson Town Council Regular Meeting - October 14, 2026

The Payson Town Council held its regular meeting on October 14, 2026, at 4:00 p.m. in the Town Hall Council Chambers, 303 N. Beeline Highway, Payson, Arizona. All council members were present. The agenda included the consent agenda, public comments, presentations from Habitat for Humanity and BrainCo, procurement and zoning actions, the town manager's employment agreement, a traffic-control discussion, and an executive session on a property acquisition. The council approved consent items, Resolution 2026-044, the S.A.V.E. agreement, and the town manager's contract amendment; took no final action on the first-reading zoning ordinance; and directed staff on multiple follow-up items.

Consent Calendar

• Approved the September 23, 2026 regular meeting minutes.
• Approved a Bridging Agreement with Advance Network Management, Inc. under State of Arizona Contract No. CTR059864 for the Hyper-V Server Infrastructure Upgrade supporting Public Safety, Finance, and Water systems.
• Approved Resolution No. 2026-043, authorizing an Intergovernmental Agreement with the Water Infrastructure Finance Authority of Arizona for the Rumsey Park PFAS Treatment Facility.
• Item B.4, the Fiscal Year 2026-2027 Pension Funding Policy, was removed from the consent agenda because typos were found; it will return at a future meeting.
• The consent agenda passed 7-0.

Current Events & Announcements

• The Town Manager reported the town is developing a new website, held leadership training for staff, and would promote Payson's new trails at an upcoming international bikers event in Sedona.
• A council member was recognized by the League of Arizona Cities for eight years of service on the Payson Town Council.

Public Comments & Testimony

• Pat Lockwood, a Payson resident since 2021, expressed strong support for selling the town-owned Malibu property to Wild Horse Hospitality for a luxury RV and cabin resort, arguing the property has been vacant for about 18 years and the town should not reject a viable funded proposal. She said affordable housing could be better located in the downtown area and called for selling at fair value with strong development protections.
• Vicky Penwell urged the council to update town code and park rules to exclude battery-powered remote-control boats, other than sailboats, from Green Valley Lake, saying they are faster and louder than permitted uses and can disturb protected migratory birds and wildlife.
• Michael R. Fox, a retired police officer, criticized the reported police arrest of a 90-year-old man, saying it appeared to be a common-sense and accountability issue rather than training; he also said he knew only what he had read in the papers.
• Tom Dunning, a 21-year Payson resident, asked council and staff to over-explain agenda items, citing concerns about the pension funding policy being on the consent agenda, the procurement policy change, and the property acquisition under H.4.
• Mike Quinn opposed the Malibu RV resort proposal, saying the town could use land near the rodeo grounds instead and should plan carefully. He referenced a rough calculation of $450,000 per acre multiplied by 20 acres and compared preserving Malibu land to Central Park.
• During the F.2 public hearing, Payson resident Eric Bean, who lives on the golf course, said he would prefer an 18-hole course but that the applicant's alternative is far better than what could otherwise be built under current zoning; he raised concerns about traffic and lighting but appreciated the lower-density proposal.

Discussion Items

• Habitat for Humanity presentation: Paul Edwards of the Rim Country Housing Coalition introduced Eric Wolverton, CEO of Habitat for Humanity of Northern Arizona. Wolverton presented the starter home model: 500-650 square foot homes, $1,000 down payment, 0% interest loans, total monthly payments not exceeding $1,100, and about $833 per month in equity savings. Homes are deed restricted and sold back to Habitat between 3 and 10 years, with payouts of $30,000 at 3 years, $50,000 at 5 years, and $100,000 at 10 years. He asked the town to consider placing about three acres of the 21-acre Malibu property into a land trust and said a $30 per month land lease per home would provide ongoing revenue. He also asked the town to consider an incentive policy for tap, sewer, and permitting fees. He stated the program serves families earning below 80% of area median income, uses third-party HOAs, and is already developing a 40-home neighborhood in Flagstaff and two pilot homes in Payson on Presbyterian Church property. Council members asked about income qualification, financing, age-in-place options, HOA oversight, and the town's infrastructure responsibilities.
• BrainCo presentation: Staff introduced BrainCo, an AI company proposing a permitting pilot. Representatives said the platform offers an applicant-facing pre-submission completeness check and an internal review tool that evaluates plans against codes and identifies cross-document inconsistencies. The pilot is free and requires about 8-10 hours of staff time over 3-4 months; future costs could be $10-$100 per permit, a technology fee, or an annual software agreement. They cited anecdotal statistics of 70-90% incomplete applications and U.S. time savings of roughly 50-60%, and said the system keeps a human in the loop. Council members expressed interest in piloting and asked about consistency, liability, cost, and integration with existing systems.
• Resolution 2026-044 - Procurement Policy 504: Finance Director Dave Christian presented amendments aligning purchase-order thresholds with town manager authorization thresholds. Council discussion noted the amendments were cleanup and did not increase spending limits. The resolution passed 7-0.
• Ordinance 2026-109 first public hearing: Staff reviewed a request by Bowman Consulting Group on behalf of Payson Golf and Country Club LLC to rezone approximately 26.85 acres at 1504 W. Country Club Drive (Gila County Parcel No. 304-13-001F) from R-3 to Planned Area Development with a manufactured home overlay for a 125-lot detached single-family manufactured-home community. The proposal includes four home plans of about 1,000-1,300 square feet, 30% open space, private streets, a nine-hole golf course, pool and fitness amenities, and modifications to lot size, setbacks, lot coverage, and parking. Staff reported a neighborhood meeting on August 19, 2026, and a Planning and Zoning Commission vote of 5-1 on October 5, 2026, recommending approval with 12 conditions. Tonight was first reading only; second reading and action are scheduled for October 28, 2026.
• H.1 S.A.V.E. Procurement Services agreement: Capital Improvements Director Kyle Christiansen presented the Strategic Alliance for Volume Expenditures cooperative purchasing program, offered at no cost through the city of Mesa. The agreement allows Payson to piggyback on contracts already procured by other Arizona public agencies, potentially saving time and cost. Council approved entering the agreement 7-0.
• H.2 Town Manager employment agreement amendment: The amendment extends the town manager's contract by one year to July 1, 2028, provides a 2.88% salary increase from $198,000 to $203,702.40 retroactive to July 1, and increases the housing allowance by $1,300 per month to $2,800 per month. Council approved the amendment.
• H.3 Four-way stop sign at Main Street and Green Valley Parkway: Staff presented a Manual on Uniform Traffic Control Devices warrant analysis recommending against a four-way stop. Data showed no crashes in the last two and a half years, four crashes in the last three and a half years, an east-west to north-south volume split of roughly 5-to-1 in the AM peak and 4-to-1 in the PM peak, and 13 pedestrian/bicycle crossings observed during two hours. Council discussed school traffic, park users, pedestrian safety, and possible crosswalk or warning-sign alternatives. No formal vote was taken; staff was directed to look into options such as a crossing sign or a crosswalk west of the intersection.
• H.4 Property acquisition near Gila Community College: Council voted to enter executive session for legal advice and direction on negotiations regarding real property adjacent to Gila Community College along Highway 260. After the closed session, council voted to direct town staff to proceed as discussed in executive session on the property listed on the agenda.

Key Outcomes

• Consent agenda approved 7-0, with B.4 pulled.
• Resolution No. 2026-044 approved 7-0.
• S.A.V.E. Procurement Services agreement approved 7-0.
• Town Manager contract amendment approved.
• Ordinance 2026-109 will return for second reading and possible action on October 28, 2026.
• Staff to investigate crosswalk and warning-sign alternatives near Main Street and Green Valley Parkway; no four-way stop was approved.
• Council directed town staff to proceed on the Gila Community College-adjacent property acquisition as discussed in executive session.