My 2 cents:
"I looked at the two options that directly estimate both epsilon and gamma (psi[1] and heterogeneity) but it is not clear how the former model can be designed to model covariate effects by survey."
With the psi(1),gamma,epsilon parameterization, you have 1 initial occupancy parameter and K-1 colonization (gamma) and extinction (epsilon) parameters (assuming K seasons). The colonization and extinction parameters apply to the intervals between seasons, so you need to decide if colonization between seasons i and i+1 is affected by your covariate collected in season i or season i+1. Since there is only 1 colonization and extinction estimate for each interval between seasons, you cannot use a "survey" covariate for them. You could create an average value of the covariate during each season and use that, if you wish.
If your covariate is something like "habitat quality"(HQ), then you might use HQ in in season 1 for both psi(1) and gamma(1) (and possibly epsilon(1)). Or, you might use it for psi(1), then HQ in season 2 for gamma/epsilon in the first interval (gamma(1),epsilon(1)). In any case, you'll need K-1 covariate values for the gamma's (and/or epsilon's). Since you've already run the seasonal psi and gamma model, you must have covariates for each season. You'll just have to decide how to assign them to psi(1) and the K-1 gamma's and epsilons.
The most common reason folks use the seasonal psi and gamma model is that they only want to estimate the effect of some covariate on the seasonal psi's. You cannot do that if psi(2)-psi(K) are derived estimates. I think it is more informative to make your hypothesis about what causes the change in occupancy over seasons and model the gamma's and epsilon's with whatever covariates are needed than to only model seasonal occupancy as a function of covariates. Another benefit of the psi(1),gamma,epsilon parameterization is that converges in cases where the seasonal psi,gamma parameterization might not. This is due to the way the epsilon parameter is computed using the seasonal psi's and gamma's. Also, it should solve the problem you're having with the negative lower confidence limits.