Bits and Pieces

Yikes! Pusch Ridge Golf used more than 805 homes-worth of drinking water in the past three months

When the Town Council decided in July to reopen the Pusch Ridge 9-hole course, it did not address the fact that this course uses drinking water for irrigation. 

In the past three months, the course used drinking water equivalent to that used by 805 average Oro Valley homes. The council did not even consider, for an instant, the idea of extending the reclaimed water system to this course. Instead, they left this drinking water use problem for a future council, since this council committed to operating the course for the next three years.

Big economic development win: Leonardo Electronics US coming to Innovation Park

"I’m pleased to report that today, the official announcement was made regarding the future relocation and expansion of Leonardo Electronics US Inc. to Innovation Park in Oro Valley. Leonardo will be constructing a new state-of-the-art semiconductor laser manufacturing facility comprising of approximately 120,000 square feet. They anticipate construction to begin this spring. The total capital investment will be approximately $100 million and 170 net new jobs. Sun Corridor estimates a total economic impact to the Tucson region of $374 million over the next 10 years. 

The Town has been working with Leonardo, Sun Corridor, Arizona Commerce Authority, and other partners on this potential expansion for about three years. Countless hours have been spent working with the company, and an economic development agreement consistent with the Town Council’s Incentive Policy will be placed on Council’s January regular agenda for approval. " (Source: Town of Oro Valley Town Manager Report, December 2021)

Read the company's press release.

Town to swap land for expansion of Community Center parking lot

"I signed a Memorandum of Understanding with Chris Phillips, the owner of the dirt lot adjacent to the Community Center’s parking area. This MOU provides the framework for a land swap with the Town that will allow us to maximize the property available for the planned reconfiguration of the entire parking area. The MOU also provides for the Town’s continued lease of the lot for overflow parking until the land swap is consummated. Town staff will now complete the details required per state law to affect this transaction. We expect to bring the required action to Council in February or early March." (Source: Town of Oro Valley Town Manager Report, December 2021)

Study session on Oro Valley Marketplace changes on December 14

The applications for the proposed development at the Oro Valley Marketplace have been resubmitted by the applicant and are under review. The project is scheduled for a Planning and Zoning Commission Study Session on December 14.  The tentative Public Hearing schedule for the applicant’s requests is: 

• January 6, 2022 – Planning and Zoning Commission Public Hearing
• January 2022 – Town Council Study Session - (TBD) Timing is dependent upon the applicant's final acquisition of ADOT right-of-way along Tangerine and Oracle Roads.
• February 2022 – Town Council Public Hearing - (TBD) Timing is dependent upon the applicant's final acquisition of ADOT right-of-way along Tangerine and Oracle Roads.

Community Center membership approaching pre pandemic levels...Golf memberships steady

 "In the last month, the CRC added 150 members, bringing its total membership to 1,850 members. The facility is quickly approaching its pre-pandemic membership numbers, which typically averaged around 2,200. To accommodate the growth, patrons can use the dirt lot for overflow parking..Indigo Golf is reporting 329 full memberships with six corporate memberships"(Source: Town of Oro Valley Town Manager Report, December 2021)

Oro Valley To Make Cost Saving Moves To Reduce Golf Course Losses

The Town Of Oro Valley is planning to announce cost savings moves to its owned golf courses to members over the next several week.

Golf and restaurants continue to be money losers
As LOVE (and only LOVE) has reported, the golf and restaurant losses since the town has taken over these facilities has been enormous (read previous LOVE postings).  These planed changes are projected to save the town almost $470,000 over the remaining 7 fiscal months. That level will merely lesson  a bit but not negate the significant losses these facilities are accruing.

The changes were not made available until after the November election yet most certainly must have been planned for months.

Coming Changes
The changes, according to a November 13 Troon document, are

• The "gourmet' restaurant, the Overlook will close monday's  and reduce operating hours on other days.
• The garden cafe will close
• Beverage cart operating hours will be cut in half
• The golf shop will close Mondays and reduce operating hours on other days
• The golf course will close Mondays

Caton steps up
For the first time, Town Manager Caton, one of the architects of the purchase of the facility, has publicly recognized that losses on the facility are even worse than planned:

"...revenues at the facility have been trending under budget and expenses have been trending above budget for the first several months of this fiscal year."

As recently as October the Majority-4 members of council urged caution on revising planned spending on the golf course. Council Member Hornat, in particular, urged that a full year of operations be in place before it is even determined that spending changes should be implemented.

Nothing has changed
The trend of this purchase being an even wider financial burden on the community is real. Cost cutting is a good thing in this instance. We expect, however, that much more will be required.

For another perspective read the Arizona Daily Independent.

Oro Valley Golf: Losses Mount in September

We learned from Council Member Mike Zinkin that the Oro Valley golf course was, once again, woefully short of its revenue forecast in September.

LOVE projects September Oro Valley golf course losses at -$295,576
The town had budgeted a net loss of $241,566 in September. This budget assumed that there would be 4,351 rounds of golf played at an average revenue per round of $40.17. The actual result for the month of September was 3,762 rounds at an average revenue per round of $31.89, for total revenue of $119,970.18. The actual golf round revenues fell short of the budgeted golf round revenues by $54,010, or 31%. This lost revenue equates to added losses because there are virtually no costs that go away when a round of golf is not played. So, we project the actual loss for the month to be $295,576.

LOVE estimates total losses on golf since ownership began: -$1,619.350
We previously reported on September 14 that we had estimated losses on golf to be $1,323,864 for the first four months of club ownership (May through August, 2014.) We can now add to this our estimate of September's losses.  So, as of September 30, we estimate losses be $1,619,350.

LOVE optimistic forecast of golf losses for first 14 months of ownership: -$3,100,667
The Oro Valley town budget includes $662,581 in budget golf course financial losses for the remainder of the town's fiscal year, October through June).  The actual revenue from golf rounds has be 31% less than the town's budget for the first three months of this year. If this "underachievement" of revenues continues to occur, and we see no reason to assume otherwise, then an additional $818,436 will happen. A conservative projection of remainder of year loss would be -$1,481,347 in losses. Add this to loses to date and the total estimated loss for the year is $3,100,667.

LOVE conservative forecast of golf losses for first 14 months of ownership: -$3,500,000
We think that the $3.1 million loss estimate is optimistic. We say that because the town's budget appears to be based on a forecast of golf rounds and average revenue per rounds that increases dramatically for the month's of November through April. For example, budget actual revenue per round increases to $55.29 by next June. Golf in Oro Valley is very competitive. There is every reason to believe that local course golf pricing will keep a "lid" on Oro Valley's ability to raise prices. So, we've added another $400,000 in under performance to our optimistic estimate.

Greg Caton enjoying a lighter moment

Is it possible that Oro Valley did not do sufficient diligence on its forecast of golf revenues?
Council Member Zinkin has requested information from Oro Valley town manager Greg Caton on the assumptions used to create the town budget for the golf course. Caton told Zinkin that it is too much work to get this information for him and that the council must vote to tell him to do so.

Zinkin was asking for a very simple thing. The assumptions used to prepare the golf budget. These should be readily available. They should require no effort to find.

We we do know is that the town's golf financial revenue budget is greater than the Hilton had planned in its final year of ownership: Greater by about 10%. One source of this is the average revenue per golf round. The town budgeted it at $44.60. Hilton achieved $38.15 in its final year of ownership. The difference is a 17% planned increase due to town ownership.

Majority-4 don't think there is a problem
Despite mounting losses in excess of budget, the Majority-4 do not foresee a problem.

According to Council Member Mary Snider: "We need a year's worth of" actual results before the town can decide what to do. "I will not support anything to do with reevaluating the golf projections."

"It is time to redo the numbers," according to council member Mike Zinkin. "We need to understand the financial impact of this."

Zinkin and the other two minority council members, Burns and Garner, asked that the town do just that at this past Wednesday's council meeting. Their idea was rejected by yet another 4-3 vote.

Watch the video of this discussion among the council members at last Wednesday's council meeting.
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Want to learn more?

Learn about this from Council Member Burns. Listen, at the 60 minute mark, to his discussion of the seriousness of the situation with KNST morning show host Garrett Lewis this past Friday.

Read Tim Stellar's (Arizona Daily Star) report on this.

Read the Arizona Daily Independent report on this.
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Bits and Pieces

Oro Valley's Golf Course losing even more than projected
Mayor Hiremath, Council Members Hornat, Snider and Waters and the Town Of Oro Valley do not tout the financial results of Oro Valley's new golf course. Though they would like you to think otherewise, the golf course is the centerpiece of why they face recall in November.

The financial results of the golf course are awful!

The July results for golf at the El Conquistador Country Club golf course are in. Total revenue from Golf was $98,781 That is $65,826 less than the budget. That is a 40% shortfall from the Troon based budget of $164,608.

Remember, every dollar of lost revenue increases the loss by $1. This is a loss of  in addition to what the town projected the golf course would lose in July. That number was a loss of $259,252. Add this loss in, and we project that course lost well over $325,000 in just one month.

Why didn't the revenue even come close to plan? Actual rounds were only 71.82% of the projected rounds. Actual revenue per round were only 83.56% of projected revenue.

Troon, the contract manager of the golf course, projected in the budget for July 4,556 rounds of golf at $36.13 per round. The actual number of round played in July was 3,272 at $30.19 per round.

As of July, there are a total of 198 golf members.

Fortunately, Oro Valley's minority council members are keeping a close eye on the situation. This from council member Brendan Burns: "If we continue on the trajectory of achieving only 71.82% of the projected rounds and only 83.56% of projected revenue, the effect on our budget will be catastrophic"

Our feeling is that Oro Valley is in big trouble even if it reaches what now appear to be optimistic financial projections.

Others question Oro Valley's sustainability
This from council member Mike Zinkin: "At the League of Cities and Towns I reconnected with friends from throughout the State. The common question was: What is going on in Oro Valley? When I told them about the purchase of 45 holes of golf, a restaurant and a bunch of tennis course, they had one common question: 'How confident are you that Oro Valley can sustain themselves into the future?'"

Mike's conclusion: "With losses on the golf course alone, not including the the community enter and restaurant, along with the needed improvements, I am not very confident that Oro Valley can continue without robbing the Contingency Fund or asking for a bond."  

Are you kidding? Hornat claims to be a"Proven Fiscal Conservative"
Council Member Joe Hornat lists "proven fiscal conservative" as a reason that you should vote for him in November. He provides no facts to support his assertion. We see no basis for it.

The fact is that, while he has been on council, Oro Valley spending has nearly doubled. He voted to double the utility tax. He voted to increase the sales tax one half percent. His actual actions make him a big spender.

Cox creates website supporting Majority-4
Oro Valley resident Don Cox has created a web site to support the Majority-4. This one is funded by his Triple-E Pac. You can see it at http://www.keepovstrong.com. The site uses the same picture as the ""Stand For Civility" site that is funded by Council Members Hornat, Snider and Waters.

According to Cox: "Triple E PAC was formed in January 2015, for the purpose of informing folks about what turned out to be a botched referendum effort. Since then the purpose has changed and it is now being used to show support for the Mayor, and the three council persons. We are receiving support from a broad base of constituents and keepovstrong.com is one of the products of that support. You'll see more."

Bristow creates "Accountable Government Now"-A PAC seeking change
Oro Valley resident Don Bristow created a PAC called "Accountable Government Now" ("AGN"). According to their press release: "Accountable Government Now has a two-fold purpose. First, to assure Steve Didio, Ryan Hartung, Shirl Lamonna and Patrick (Pat) Straney get elected to serve us, the residents, on the Oro Valley Town Council. Second, to help these new candidates overcome the misinformation and half-truths being put out there by the group of 4; Mayor Hiremath and Councilmembers Hornat, Snider, and Waters. Our messages will be truthful and informative"

Learn more here.

Has The Community Center rebuild gone awry?
The town is refurbishing the El Conquistador Country Club house and restaurant to try to make it into a community center. It held design meetings for the public in the past several weeks seeking resident input. We received several reports on the meeting.

According to these reports:

• "The people attending the first meeting were former Country Club members who wanted the restaurant redone. It's as though they want to have a country club at our expense."
• At the second one, there a large numbers of the Oro Valley Youth Advisory Board requesting all sorts of fun stuff. Most of them will ever use it given that they are graduating and leaving town. 

"Attendees at the second meeting was almost exclusively from three groups: The old youth advisory council, current members of the community center, Majority-4 sycophants.This is not  a cross section of Oro Valley residents," writes one resident.

The resident warns: "If the residents don't like the final outcome/impact of the comm center they have no one to blame but themselves." 

"Full steam ahead" on community center restaurant
Paul Kessler of Oro Valley's Development and Infrastructure Department, stated at the community center remolding meeting of August 17, that support for a restaurant was overwhelming.  Therefore, planning for a full scale restaurant and bar is proceeding.

One resident wrote us: "I would like to know when and how it was determined support was overwhelming. I do know at the first remolding meeting there was overwhelming support. Overwhelming meaning approximately 30 current members, including Hornat and Waters and their wives."

The resident continued: "There has been no effective public outreach since the first meeting. It is full speed ahead with what the Council and staff want with little input for all Oro Valley citizens. The citizens are paying 1/2% sales tax to remodel and operate this facility. It isn't owned by the small percentage of residents/non-residents who are members."

We wonder: Why does Oro Valley want to compete with private enterprise?

Better option: Close the restaurant down; Use the space for community center.

Rape Aggression Defense class begins this weekend
Oro Valley, Arizona (August 19, 2015) - The Oro Valley Police Department (OVPD) is hosting a free self-defense class called Rape Aggression Defense (R.A.D). The training is for females ages 15 and older.

R.A.D. System is a program of realistic, self-defense tactics and techniques. It begins with awareness, prevention, risk reduction and avoidance, while progressing on to the basics of hands-on defense training.

The dates for the next course are August 22 and 29, 9 a.m. to 3 p.m. at the Oro Valley Church of the Nazarene East Campus, 440 W. Calle Concordia.

Attendees should wear comfortable workout attire, as this is a physical class. Please bring a lunch. To register, contact Sgt. Amy Graham at (520) 229-5081. (Oro Valley Police Department Press Release)

Guest View-Don Bristow: Oro Valley Should Consider Alerternatives To A Full Sevice Community Center Restaurant

Monday, you have the opportunity to meet with the architect, Klindt Brenenridge, who is working on the rehabilitation of the Oro Valley Community Center and Recreation Center. In this guest view, Resident Don Bristow shares his thinking about the project.
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Included in the initial proposed remodeling of the Oro Valley Community Center is the second floor restaurant area. Before committing the residents’ money and this area to a full-service restaurant operation, there must be a discussion regarding the need and economics of the Town operating a restaurant.

Is the Community Center what the name implies or is it a County Club? If it is a County Club, a full-time full service restaurant is appropriate.

Operating a full time restaurant will result in increased operating and maintenance costs and most likely additional tax dollar subsidies. It also requires competing with the private sector restaurants within Oro Valley. Operating a restaurant is difficult and takes full-time commitment to make a profit. Just ask the owners of restaurants operating in Oro Valley. Who in the Oro Valley government is capable of evaluating Troon’s restaurant management performance or offering professional advice? There are alternatives that must be presented and evaluated.

One viable alternative for the everyday operations of a Community Center restaurant, is a snack bar type operations which is open for a continental breakfast to early evening. It could also serve as a coffee and tea access point. A walled off bar, operating during scheduled golf hours, would meet the needs of most patrons. The kitchen could remain, but be used by outside catering companies which would be hired and paid for by the sponsor of golf outings or other events.. A full-service catering company would supply all necessary support items such as tables and chairs, linens, china,  and silverware. There are other alternatives that can and must be publicly discussed before any of the residents’ tax dollars are spent for a full-service full or part time restaurant.

The large area currently dedicated to the restaurant could utilize moveable walls to create multifunctional rooms. As the available square footage of the Center is limited, this would be a good potential use and have much lower operating and maintenance costs.

What do you think?

Attend the Architect Open House at the Community Center on June 29, 2105, from 6 to 7 p.m. However, in a one-hour time frame there may not be sufficient time for the residents to be heard. Therefore, after the meeting contact our Councilmembers and Town Manager to share your thoughts.
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Don Bristow is a long-time Oro Valley resident and 2014 candidate for Oro Valley Town Council. Don is a frequent speaker at Oro Valley council meetings and has been a member of various Oro Valley committees.