The good news
Recently, Town Manager, Mary Jacobs, removed Troon’s responsibility to oversee tennis. This reduced Troon’s management fee from $144,000 to $120,000 annually. As a result, Troon’s monthly stipend was reduced from $12,000/month to $10,000/month. These changes became effective on October 2, 2018.
I think we can all agree that this was a move that the Citizens of Oro Valley can applaud. Tennis has now become the responsibility of Jennifer Fuchs who, in the past, was the Director of Tennis for the El Conquistador Resort. Removing this responsibility from Troon was a great move because although Troon is known as the “Rolex of Golf,” they appeared to be the “Timex of Tennis.”
All the above changes are within Ms. Jacob’s area of responsibility.
The potential problem
At the same time these changes were made, she also extended the Troon contract for 6 months. Herein lies the problem.
During numerous communications with the Town, they have failed to show where Ms. Jacobs has the authority to extend Troon’s contract without Council approval. She has some authority to work within a $20,000 limit. However, the contract, which is now $10,000/month was extended 6 months. This means that she exceeded her $20,000 limit as the contract extension amounts to a $60,000 expenditure.
Town Policy #6, Unbudgeted Expenditures
This policy was adopted in March 1997 and reaffirmed in April 2005. It states that ALL expenditures not previously budgeted shall be approved by Council prior to issuance of payment. It goes on to state that it is the responsibility of the Town Manager to implement this policy.
Why does this matter?
The fiscal year ends on June 30, 2019. Ms. Jacobs extended the contract from June 30, 2019 to December 31, 2019. Therefore, the entire extension reaches into the next fiscal year, FY 2019/20. Until the Council passes the FY 2019/20 budget, there are NO expenditures authorized past June 30, 2019. So although the Town Manager may have the authority to extend the contract, there is no authorization to expend the funding without council approval. I wonder if Troon realizes that this 6-month extension is currently without funding.
Continuing with this kind of mentality, the Town Manager could promise employee raises of 5% next year or promise to give the Chamber of Commerce $75,000 next year...but unless and until the Town Council approves the spending, these are empty promises.
Where are the checks and balances? The Town’s Legal Director works for the Town Manager, therefore, his loyalties are with the Town Manager, NOT the Council.
The bottom line is that the Town Manager extended the Troon contract without Town Council authorization to fund it. Whether or not this current contract extension should be funded is now up to the current council when they deliberate on the 2019-20 budget. In the meantime, Troon has a contract without legally approved funding. This is not a good situation for them and it is not good for the Town.
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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.
