Results for July and August better than budget
Oro Valley Municipal Golf exceeded budget targets in the first two months of fiscal year 2022. Golf operations lost $156K less than budget. Total losses were $166K. Key revenue drives, total rounds played, greens fees and monthly dues were comparable to budget; while food and beverage revenue far exceeded budget. Spending was under budget primarily due to lower utilities maintenance cost. According to Wendy Gomez of the town’s finance department, it is too soon in the fiscal year to project any change from annual budgeted financial result.
Challenge ahead regarding high cost of irrigation replacement
The town has committed to replacing the irrigation on its two 18-hole courses. The initial town estimate of this cost was $4 million. The latest bid for this is now almost $7.8 million. This doubling of cost is indicative of a national economy of shortages and rampant inflation.
The funding for the irrigation improvement is designated to come from the $25 million bond the council approved last month. Half of that bond money is committed to completing Naranja Park. This leaves $12.5 million for other projects identified for bond funds use by council in July. The golf course irrigation replacement is one of these.
If indeed, the council commits $7.8 million of bond funds for golf course irrigation, only about $4.2 million remain for two council designated bond fund projects: A community center parking lot improvement and a replacement of tennis and pickleball courts. These are costly projects, perhaps in excess of the $ 4 million that would be available.
Is there a "One Course" irrigation replacement option?
It may well be that the “wisest course” is to complete the irrigation on 18 holes of golf using bond funds, freeing $4 million for these other planned uses. Then, complete the irrigation on the other 18 holes using pay-as-you-go. One of our readers pointed this out to Mayor Winfield in an email: “The Town does not own the property south of Lambert (5 holes) yet the Town is watering and maintaining the property.” This is part of the Canada course. Why invest in changing the irrigation of these these holes?
Is there a "wait till inflation abates" option?
There is an option of waiting to do any of these improvements until prices "come down". At some point the world will get back to normal. There will be surpluses rather than shortages. Businesses will once again become competitive. Prices will come down in businesses such as those that install irrigation because competition will increase. The problem is that this may be 3-5 years from now, beyond the spending horizon of the bond funds. The town is required to spend the bond funds within three years of the issuance of the bond, per the bond indenture.
Challenge regarding the financial impact of the Pusch Course opening and its use of drinking water for irrigation
The 9-hole Pusch Ridge Course is opening on November 1. This course has always presented an economic challenge to the town. How it will fare and its impact on golf economics is yet to be seen. Fortunately, that course has a resident group, "Friends of Pusch Ridge Golf", who are committed to its financial success; and who understand that use of drinking water for irrigating the course must be alleviated in the near term and eliminated in the long term.
Nothing is simple when it comes to Oro Valley municipal golf financing and operations. In terms of challenges, it is “The gift that keeps giving.”
Bohen: I believe that [reported rounds played] is a fraud
During last week’s discussion of the use of the Pusch View Course for disc golf, Council Member Tim Bohen questioned the town provided “rounds of golf played” numbers relating to Pusch Ridge Golf. He wants the data to prove the numbers: “I’ve heard it anecdotally, but I want the point of sale data” to substantiate it.
Towards the end of last week’s council discussion on the use of the Pusch Ridge Golf Course, Bohen dropped the following challenge to those who support the course: "I don’t believe your numbers of 16,000 rounds. There is a way to prove me wrong. Show me the point of sale data. We can’t see it. I believe that [the rounds of play data] is a fraud. Prove me wrong.”
We asked Bohen why he chose to make this comment and to whom he was making it. He did not reply as of the date of this posting
Clearly miffed, Tony D’Angelo, President of Friends of Pusch Ridge Golf, emailed council with his response to Bohen’s comments. We are reprinting them here in their entirety. The highlighting is our to help our readers.
Homeowners respond to Bohen’s allegation of fraud: “They are the town’s numbers”
Mayor Winfield and members of the Town Council,
As President of Friends of Pusch Ridge Golf I feel I must respond to Councilman Tim Bohen’s wild allegation that somehow Friends of Pusch Ridge Golf has participated in a fraudulent misrepresentation of the performance of golf on Pusch Ridge.
Friends of Pusch Ridge Golf was formed to encourage golf play on the course, assist the Town and Indigo Golf in marketing golf play and to create a welcoming and fun experience for Oro Valley residents and visitors who choose to play golf. Our mission is also to work with the Town on finding ways to make the golf course more environmentally sustainable.
We do not run the course nor do we create any of the performance metrics of the course. We use the performance reports provided by the Town’s golf contractor, Indigo Golf Partners, to evaluate the impact of our efforts. We do not receive Indigo’s financial reports for Pusch Ridge until after they have been distributed to the Town Council. If Councilman Bohen doesn’t believe the numbers presented, it would seem that he is in a better position to verify them than we are.
Based upon what we are given, the first two years of Pusch Ridge Golf Course operations has required no tax subsidies – in both years, the course revenues have exceeded course operating expenses.
Councilman Bohen asserts that Indigo’s performance numbers are overstated. He provided no evidence. Nor did he offer any reason why Indigo Golf Partners would choose to overstate performance. They have no contractual incentives to do so. Overstating golf rounds would impact revenues per round and profitability. Overstating revenues would certainly be caught by the Town’s Finance Department and outside auditors. Indigo Golf Partners is part of Troon Golf which is a major golf operator with a stellar reputation. Why would they risk that?
During this past golf season, given the potential days of operations and hours of play available, the course had the potential to sell approximately 32,000 rounds of golf. The first year, available rounds were approximately 30,000 rounds. This would require four golfers to start play every 15 minutes from opening until close, regardless of weather. That’s a tall order for any golf course operation to fill every tee time, every day. During the time the Town operated Pusch Ridge Golf and prior to the reopening and support of Friends of Pusch Ridge, the course averaged around 4,000 rounds. The first year of operations in 2021-2022 the town established a budget of 6,675 rounds. It ended the year at 15,248 rounds. This season over 16,000 rounds. Performance represents over 50% of available rounds played. That is considered very good. During the second season the average rounds played per day was 86. Again, quite strong given the weather challenges we had. It is also important to understand that this is a “fast, fun and affordable” 9-hole golf course – it is positioned to serve players out to have fun, not to those who play every day, rain or shine.
Councilman Bohen says “he has been out there” and does not believe the course averages over 80 rounds a day. I did see him one day sitting in a chair Friends of Pusch Ridge Golf bought for the course. I was out there almost every day, talked to the pro shop team, reviewed the tee sheet and talked to golfers. I also checked the Golf Links booking engine via the GolfNow app multiple times a day to monitor how many tee times were available. Yes, there would be no shows and cancelations but I remain convinced the numbers reported were accurate. Of course, there was more play on some days vs. others. There was also a need for balance to keep it a fun experience. The Indigo Golf Pros made the decision to not overload the course with players given the skill levels of the target audience. It is more important to have players have a good time and return than to pack the course. We did not make up the numbers. I absolutely believe the 86 rounds per day was real.
It is also important to note that our commitment to the Town was to create an experience that welcomed all levels of golfers. We especially encouraged families to introduce children to golf. After 2:00 PM daily, kids 15 and under played free with a paying adult. Families took advantage of this and the numbers of “comps” reflected the kids free play. This impacted the revenue per rounds some but we still believe the overall financial performance was a success plus remember this is a municipal facility and not intended to be a profit center.
Councilman Bohen also asserted the best revenue weekends were during the Disc Golf Tournaments. It is important to point out that these tournaments would not have come to the course had it not been restored to a quality, green golf course. This is why ESPN broadcasted one event – the beauty of the course and the views make for great TV. These tournaments were required to buy out all tee times to provide for exclusive use, of course the revenues were strong. Again, without it being a golf course, the attraction would not have been there. By the way, we have supported scheduled and managed disc golf tournaments during the golf season from the beginning if they provide the Town extra income, support tourism and do not harm golf operations.
Councilman Bohen scoffed at the notion that the Town would introduce golf and disc golf on the course at the same time. That is exactly what Parks and Recreation first proposed nearly a year ago when they first met with us regarding disc golf. We had only had one year of operations under our belt and we feared this concept could only hurt what we were trying to create in terms of a golf experience. That is why we asked the Town Council to clearly keep golf and disc golf separate.
Councilman Bohen asserts that golf in Oro Valley cost the Town over $4,000,000 to operate this year. I believe he is trying to conflate the number by including the approved investment for the new irrigation systems on the 36-holes. By his logic, we would have to say Naranja Park cost over $17,000,000 to “operate” this year. Capital investments are separate from operating expenses. Golf operations – revenues from user fees and product sales minus the costs to generate those revenues will show a positive number. No other town recreational asset is performing this well and Councilman Bohen should know that.
Currently the Town is “testing” public play disc golf on the course for the summer at the same time the Town chooses to let the course go dormant – only maintaining the golf greens to keep them alive. The course is brown, with many patches of raw dirt exposed. It is not a pretty sight and it is unfair to the residents who live there. Not surprisingly, the course is averaging only about ten rounds of disc golfers a day paying $10 a round. I doubt anyone would pay the premiums to host a tournament under these conditions.
For some reason, Councilman Bohen does not like Pusch Ridge Golf or the Friends of Pusch Ridge Golf. He says he is now a disc golf player. We don’t believe the distraction of public play disc golf will help us with the sustainability of the golf course. He is entitled to his opinion and his recreational preferences.
He is not entitled to disparage us for trying to provide the Town’s residents with an amenity that is well received. We believe quality of life matters in Oro Valley. We don’t expect others to pay for the benefit of a few. That is why we have worked so hard to broaden the appeal of the golf course in the community and residents and visitors have responded. We know we have a water challenge and we want to work with the Town to mitigate it. We know the first step was proving there was sufficient demand to justify the effort. We believe we have done that and we appreciate the response from the community.
It seems very unfair to be accused of misrepresenting reality with no evidence. Shame on an elected town councilman for treating hardworking residents this way and thank you Oro Valley residents and businesses for supporting our efforts.
Finally, I want to thank Mayor Winfield, Vice Mayor Barrett, and council members Greene, Jones-Ivy, Nicholson, and Solomon for being open to our concerns and approving the motion that asserts the Town Council’s authority to define how the Pusch Ridge Golf Course is used and when it is used.
Respectfully,
Tony D’Angelo
Resident and President of Friends of Pusch Ridge Golf
On May 4th, the Town held a Q&A Session/Workshop at the Gaslight Theater to receive input from residents living along the golf courses as to what they believe should be the future of the Community Center golf courses.
The Consultants The meeting was facilitated by consultants from the Golf/Food/Beverage industry, hired by the Town to address the golf course and restaurant facilities. The Consultant team consists of Richard Singer of the National Golf Foundation (which has a consulting arm), Forrest Richardson & Associates (Golf Course Architects from Phoenix) and The WLB Group, (a local engineering and land development firm).
The presentation was handled by the National Golf Foundation consultant as the lead, with the Golf Course Architect group also presenting. We did not hear from the WLB Group representative. The Consultants introduced themselves, and told us about their backgrounds. One of them has 27 years experience in the golf industry and lives in Florida. They stated that they obtained this assignment by answering an RFP (Request For Proposal) put out by the Town.
The National Golf Foundation’s consulting arm works with a number of municipalities in assisting them to evaluate their golf courses and operations.
The Presentation The meeting began with an approximate 30-minute presentation from the consultant team, followed by an approximately 90-minute Question and Answer session with the audience. The only Town officials recognized at the meeting were Councilmember Bill Rodman and Assistant Town Manager, Chris Cornelison.
First Speaker: Richard Singer of National Golf Foundation The Consultants and the Golf Course Architects will do a thorough review of the golf courses and restaurant with the goal of assisting the Town to “Maximize their Assets.” They understand that the value and condition of the Town’s golf courses will affect the property values of surrounding properties as well as the value of the courses themselves.
He stated that they have seen a trend in municipalities acquiring private facilities and turning them into municipal facilities. Very few are sold for development. Privately owned golf courses, however, have been redeveloped as housing and/or commercial developments, usually with much community opposition.
They are aware of the history of how the Town acquired the golf courses and all the controversy surrounding it, although it appeared that they were not aware of the details of the contract. They were planning to meet with the hotel owner on Friday to ask questions and make suggestions for marketing the courses.
He stressed that they want to move forward and evaluate where the Town should go from here. Their task is to make recommendations for the continuing operation of the restaurant and all 45 holes of golf. Ideally, the Town would like to keep all the holes open, but the consultants are looking at all options, including a possible reduction in holes, reconfiguring some courses, etc. His job is to review the golf facility and see how it fits into the Oro Valley community. They will not be addressing any other Community Center activities.
Singer has done a lot of Economic Impact Studies on golf over the past 25 years. He stated that if you have one bad year, it takes five years to catch up. He stressed that a failing golf course does not help anyone and that it’s a tough business right now. It has a high fixed cost and is at the mercy of many things that you cannot control.
Second Speaker: Forrest Richardson, Golf Course Architect They met with Community Center Golf Members earlier in the day. The following day they are meeting with owners of the Hilton Hotel.
Although they will be evaluating everything, the Town has told them that their first priority is to keep all the holes open. His role is to crunch numbers on the facility.
They will be evaluating the efficiency of the course and of the irrigation system. The two 18-hole golf courses are now on effluent water, however, this is now almost as costly as ground or potable water.
Newer golf courses are being built with “Smart” irrigation systems which can precisely pinpoint and target irrigation at each hole. Our courses do not have such a system. Installing one could save 25% on watering costs, but the installation is costly and Oro Valley doesn’t have the money to do this.
As part of their work, they are obtaining the history of the golf course development, going back to the 1970s and 1980s. They have spoken with one of the original golf course architects, and also with the engineer who worked on the initial irrigation system. The architect told them that the housing developments around the courses actually drove the layout and design of the courses.
The Pusch Ridge 9-hole course is problematic from a golf perspective. It costs almost as much to operate as an 18-hole but does not bring in the same revenue stream. It is also a hilly course and not particularly easy to play. Part 2. Question and Answer session with the audience will be published on Thursday.
A recent political ad
In a political ad in a recent publication, Mayor Winfield states: “The Town’s two golf courses are now projected to require no Town tax subsidy for operations in 2021/2022 fiscal year.”
However, the most recent financial report covers the current fiscal year through February, which is 66% of the way through the year. The statement shows that the contracted expenses overshadowed the revenues by $1,079,143. Mr. Mayor this is a loss. The fiscal year ends on June 30, 2022. The Town closed the Pusch Ridge and Conquistador courses in May so that should limit the losses, BUT the golf courses will still see a loss and will require the tax subsidy.
NOTE: LOVE reached out to Mayor Winfield who informed us that the Town updated the golf subsidy projection after he submitted his political ad, and that, “The most recent golf subsidy projection for this fiscal year is now $78,000.”
The Golf Courses: How does FY 2022/23 look?
Page 7 of the Town Manager’s Recommended Budget shows that the 2023 Community Center Fund (CCF) budget is forecasted to lose over $2.1 million. The Council borrowed/bonded for $25 million, half of which is to go to the Community Center. This bond has indebted the Town for 20 years for over $2 million/year.
The Town’s two golf courses are going to cost us over $8 million for irrigation improvements, $276,000 for cart path improvements, $105,000 for bunker and turf reduction, and $159,000 for golf maintenance equipment replacement all in FY 2022/23.
If the tax subsidy is no longer required, just where is all this money going to come from?
Answer: The Capital Fund is picking up the slack
The mayor tells us that the money is coming from the Capital Fund. However, the CCF was set up to support all the needs of the community center (golf/tennis/fitness/Overlook restaurant, recreation). Because there is not enough money in the CCF to support these needs, the money is now coming from a different fund.
NOTE: The mayor provided the following information to LOVE regarding the $8 million in golf irrigation improvements that will be taken from the Capital Fund rather than the Community Center Fund:
FY 2023/24
Golf Course Irrigation (La Canada Course) - $2,000,000
The Bottom Line
The half-cent sales tax subsidy ($2 million annually), the HOA subsidies ($125,000 annually), and the $25 million bond are not enough, so additional money is needed which is now coming out of the Capital Fund.
- - - Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike 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.
The two challenges to operating the town's Pusch Ridge Golf Course
The continuing operation of the the Town of Oro Valley’s 9-hole Pusch Ridge course presents two challenges. One is economic. The other is its use of drinking water for irrigation. We discussed both of these with Tony D’Angelo of the group “Friends of Pusch Ridge Golf”, the group that saved this course from closure.
The Organization: "Friends of Pusch Ridge Golf"
Friends of Pusch Ridge Golf is a five hundred member organization that was created last year “…with the common goal of protecting, sustaining and optimizing its value to the town of Oro Valley.” Generally, members are residents who live adjacent to or near the course. They became active after the town stopped watering the 9-hole golf course. The course turned brown. It was becoming overgrown. It was destined for eventual closure after the course’s previous owner, HSL Properties, declined to lease it back. (You can read previous LOVE reports on that here.)
The course has such a history of poor financial results that the prior owner doesn't even want it back on a "cheap lease basis"
The course has been so severely underused over the years that the town, at one time, turned it into a frisbee course. They also tried bigger holes. Nothing worked. The course was economically unworkable regardless of scenario. It was only after the current town council was considering closing the course that those directly impacted rose up to fight for it.
"Friends of Pusch Ridge Golf" hope to turn the course around
The result has been a resurgence in their interest in the course. According to Tony D’Angelo, the group has focused this year on helping the town market the course and substantially increasing awareness and play. October 30 they are hosting a pre-opening event with two golf scrambles and a luncheon celebration. “These events sold out within 27 hours. That’s 104 golfers and over 150 total supporters attending. We are receiving strong support from local businesses providing prizes and prize money. Once the course opens to the public we will continue to promote these businesses to golfers using the course.”
This will be a continuing challenge
The challenge for the group and the town will be to continue to generate interest and use of the course for the long run so that the course sustains itself economically and generates added tourism dollars to the community.
According the D’Angelo, “Once open, Friends of Pusch Ridge Golf will continue to support fun golf leagues to establish a strong base of play. We have created three leagues – a men’s league, women’s league and a couple’s league. We will also host special events throughout the year with local businesses. All of these efforts are targeted to the new and casual golfer - we want the course to be accessible to all. The town has budgeted 6,600 rounds of play, we hope to help drive more than that assuming the renewed interest remains high.”
When we are successful, we believe the subsidy required by the town in support of operations to be well below expectations. When we factor in incremental tax revenues from surrounding businesses we believe Pusch Ridge Golf will be one of the town’s best performing assets.”
Even if economically successful, one huge challenge remains
If D’Angelo is right, the course will remain open, leaving the second major challenge, one that has yet to be addressed: Use of drinking water for irrigation.
This is the second part of a 2-part article. Part 1 was published yesterday. - - - - - - - - - - Summary Conclusion
“This facility is aging and has seen declines in activity and is now operating at a deficit, up to $2.1 million+. The loss on operations is a result of several influences…a recent recession, increasing competition, declining physical condition, and declining interest in golf.”
“The local golf market has changed dramatically in the last decade and as we look to the future of golf in Oro Valley, there is genuine concern that the full 45-hole allotment may not be a good match for the current state of golf demand. The cost to properly maintain a complement of 45 holes is large and growing. The National Golf Study (NGF) review in 2017 shows that the cost to maintain El Con Golf is much higher than any standard, mostly a result of high utilities expense that is caused, in part, by an antiquated irrigation system.”
“The current financial condition [of El Con Golf] is worse than most public sector golf operations in the U.S. where 67% of municipal golf course operations are able to cover on-site expenses.
“Given this and the change in demand, the NGF sees a 27-hole facility at El Con Golf and a modified par-3 golf course (possibly 12 holes) at Pusch Ridge as a much better option for Oro Valley to provide a more sustainable golf facility for the longer term going forward.”
Given the above noted findings, it is clear that the Town will not be able to continue the operation “as-is” and changes will be required.
The most important and actionable recommendations made by the National Golf Foundation are listed below, noted in priority order:
1. Improve the physical condition of El Con Golf, including clubhouse enhancements.
2. Take action to reduce the amount of irrigated turf on all golf courses.
3. Upgrade the irrigation system to include new controls and in-ground piping.
4. Reduce to 27 holes at El Con Golf, with three 9-hole courses of equal quality and appeal.
5. Lease out (or concession) the Food & Beverage operation to a third party.
6. Implement the plan to renovate Pusch Ridge into a “Dirty Dozen” concept.
7. Enhance marketing and implement new activities that appeal to less traditional golfer segments, especially female golfers.
Golfers within a 10 mile radius
In its 2009 publication, “The Future of Public Golf in America,” the National Golf Foundation hypothesized that the best predictor of a public golf course’s success was the number of golfers per 18 holes within a 10-mile radius, with 4,000 identified as the key number for projected financial stability. The NGF has estimated that there are only about 1,400 golfers per 18-hole course in the Oro Valley Community Center market, thus lowering chances for successful golf operations.
Site Negatives
The location of both facilities suggests to the public that the facilities may be private. The location within a large residential community conveys a private club operation. The Pusch Ridge course proximity to the Hilton Resort leads most to believe the course is only available for use by hotel guests.
The configuration of the property is wide and physically diverse, leading to challenges in managing the full 36-hole property. There are four separate parcels separated by major roadways and require golf cart crossings at several points. Thus it will always require a larger-than-standard operating staff.
It is expected that there will always be a higher-than-standard maintenance expense at El Con Golf and Pusch Ridge, even if the total irrigated acreage can be reduced.
Numerous changes to land ownership, development plans, and golf corridors contributed to the awkward routing of the courses. In several locations, the distance between holes is significant and it is often difficult for players to know where to go next. Further, this awkward routing mandates cart use and contributes to extra management and maintenance challenges.
Irrigation remains the greatest area of maintenance concern and has shown considerable decline since the original development. The aging system is a mismatch of controls, heads, and inefficient pipe sizes that have been patched together over the years…and is costing the Town considerably in terms of inefficient irrigation.
The conclusion of the team is that a major investment in irrigation replacement must be made regardless of how the courses are to be reconfigured.
Closure of all 36 holes of golf
Probable cost is approximately $3 million and includes removing managed turf areas, revegetation of desert varieties, reshaping to allow for natural surface drainage, applying a hydroseed mix of native desert seed and a bonding agent that will help prevent erosion and allow the seeds to germinate. Twenty percent of the cost ($600,000) would be for design and engineering.
The adopted budget gives authority to the Town staff on how to spend our taxpayer money. The Town Manager (Mary Jacobs) must present a balanced budget, that is, with every dollar of expenditures, there must be a dollar of revenue. In Part 1 of “Where did all the money go?” I noted numerous areas where there was no follow-through on the spending authorizations. I have since heard back from the Town and it gets even murkier.
Golf Course Irrigation Improvements I stated: “On page 244 of the adopted budget for FY 19/20 there is a Capital Improvement allocation for a $3,000,000 bond for golf course irrigation improvements. What happened? Was there a bond, and, if so, where are the improvements?”
The Town’s response: “There were not any bonds issued.”
Again, where did Jacobs get the authorization not to comply with the Council’s policy?
I stated: “On page 227 of the adopted budget for FY 20/21 there is a Capital Improvement allocation for $1,100,000 for golf course irrigation improvements. What happened? Where are the improvements?”
The Town’s response: “Town Manager Mary Jacobs provided this information to you in October 2020. The Town did not do the golf course irrigation but proceeded with the design, though construction documents and the remaining funds stayed in reserves.”
Where did the authorization come to disregard the Council direction and proceed with the alternative? The money was there in the balanced budget, but Jacobs did not follow through on $4.1 million dollars of authorized expenditures.
When challenged, Jacobs tells me:
“Town received one bid for the first irrigation project on the El Conquistador 18-hole course from an Illinois firm in the amount of $3.7+M. This extremely high cost and lack of bidders has resulted in my decision to postpone the irrigation replacement for this summer. Our Chief Procurement Officer will be reaching out to prospective bidders to find out the optimal time to rebid the project with greater lead time for a bidder to plan, in hopes of a more competitive bid. Increasing construction costs are concerning for other future Town capital projects and will be monitored closely."
There was $4.1 million authorized, and she states that the bid came in at $3.7 million. In other words, the money was there.
Jacobs admits it was her decision to postpone the authorized spending. If she is going to disregard the spending policy set by the Council, she must go before Council for permission, not simply publish her decision in an Executive Report.
Town Manager’s Office Personnel I stated: “On page 110 of the adopted budget for FY 21/22 there is a breakdown of the personnel allocated to the Town Manager’s office. In this breakdown there is no allocation for the position of CIP Director (Capital Improvement Projects). However, there was a recent Facebook posting advertising a position for a CIP Director -- a position that is not budgeted.”
Jacobs’ response: “The position for CIP Director is a temporary position and is budgeted within the CIP Funds.”
I responded by informing her that temporary or not, I still wanted to know if it was authorized. Jacobs then directed me to the Personnel Schedule found on page 109 of the FY 21/22 adopted budget. I read it and there is no authorization as she states.
However, Town Policy 6, “Unbudgeted Expenses” directs the Town Manager to go to Council for approval for any unbudgeted expenses. Was there Council approval for this unbudgeted position?
If this CIP position is temporary and budgeted within CIP Funds, does this mean that no general funds are being used? Does this position get benefits, such as health and retirement?
Is Jacobs in violation of ICMA ethics?
Tenet 6 of the International County/City Managers Association (ICMA) states: “Recognize that elected representatives are accountable to their community for the decisions they make; members are responsible for implementing those decisions.”
Who’s running the Town?
Why does the elected body allow her to get away with her arbitrary decisions? These decisions are contrary to the policies set forth by Council. If anybody voted for Mary Jacobs to run this Town, please advise me.
- - - Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike 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.
Town council to discuss options for replacing irrigation of two municipal golf courses tonight Tomorrow night, the Oro Valley Town Council will discuss replacing the irrigation on the town’s two 18-hole golf courses. According to the town, both courses need the irrigation replaced. The irrigation of both courses is from 31 to 40 years old. This is beyond the expected life of irrigation according to the American Society of Golf Course Architects.
Irrigation systems showing their age
Indeed, according to town staff, the irrigation system of both courses is showing its age: “Over the past five years, the Conquistador and Cañada courses have experienced a combined 175 main line breaks. These breaks have occurred on nearly every hole and vary in severity and impact. During this timeframe over $200,000 has been spent on irrigation repair. It is estimated over 5 million gallons of water have been lost due to these irrigation breaks.”
Bid for irrigation replacement for both courses total $7.8 million
Wadsworth Golf Construction Company is the low bidder for replacing the irrigation The bid is $7.8 million. That bid is well above what was anticipated when the town acquired the courses from HSL Properties (link) in 2015.
ARPA and Parks and Recreation Bond funds could be funding sources
“The Town is in a strong financial position and can currently afford to absorb the additional cost beyond the original budget using American Rescue Plan Act (ARPA) revenue replacement funds, which are unrestricted as to their use.”
According to staff calculations, $4.6 million of ARPA funds qualify as revenue replacement. Per town council direction in July, an estimated $4.5 million of the $25 million Parks and Recreation bond was planned for use towards the irrigation system replacement.”
Staff presenting three options
Staff is presenting three options for the council to consider this evening:
Full Irrigation Replacement The town use $3.3 million of ARPA Funds to supplement the July designated parks and recreation bond money if the council wants to move forward with a complete replacement of the irrigation on both courses.
Complete Canada Course only The Cañada course has experienced 20 percent more main line breaks than the Conquistador course over the last five years. Fully replacing Cañada’s irrigation system would be a form of triage that addresses the system with the most failures. The estimated cost of this option is $3.95 million.
Partial Irrigation System Replacement to Mitigate Catastrophic Loss Including Main line Section Running Underneath Major Roadways This option involves replacing various portions and equipment on both courses at a cost ranging from $3 to $8 million.
The Pusch Ridge Golf Course uses drinking water for irrigation
In reopening the Pusch Ridge Golf Course, the The Oro Valley Town Council committed to use drinking water to irrigate the course; enough drinking water to supply 400 plus single family homes. The commitment was made at a time when the Western US is facing a long-term drought, so severe that CAP water is now under a Level 1 restriction with a higher level restriction expected in the near future.
What to do is complicated
To date, we know of no action the council has taken to reduce the total drinking water use on this course. The council summarily dismissed the idea of bringing reclaimed water to the Pusch Ridge Golf Course. That would cost $4 million. The council has mentioned the idea of turf reduction. However, there are no announced plans.
Friends of Pusch Ridge Golf recognize the challenge
Enter into this situation, "Friends of Pusch Ridge Golf". As we wrote yesterday, they are working with the town to create an economically viable entity. The also understand the need to do something about the drinking water used.
Here are their thoughts, as presented by spokesperson Tony D'Angelo.
To some extent, they are waiting to see what the town wants to do
"Friends of Pusch Ridge Golf is very mindful of this challenge and the fact Pusch Ridge Golf currently uses potable water. At this point Oro Valley Water has offered no challenge to the golf course’s water use plan for this season. If and when more restrictive water limitations are imposed, our group will support whatever actions the town water authority believes are necessary to protect the town’s water supply."
Focusing, at the moment, of getting the most economic return from the course
"We do recognize that this use of water today may impact what is required sometime in the future to sustain resident families. Therefore, all we can do is work as hard as we can to get the most benefit from the water used to green the golf course and produce income. We believe we are doing this by working to make sure the amount of play and revenues generated provide a reasonable return on investment. The town council authorized three years of operation to see if it can be a true value to the town. We know the pressure is on. This first year is all about proving the course can be a net benefit to the town."
Sees turf reduction in non playable areas
"Assuming we are successful this season, we hope to work with the town before it reopens next year on plans to reduce turf in non-playable areas and therefore reduce water requirements. We hope to continue to grow the numbers of Friends of Pusch Ridge and offer financial support to the town beyond what the three HOA’s surrounding the course have committed to provide to tackle this challenge."
Ultimately, we have to find a way to get off potable water.
"It is unfortunate that when the state, years ago required golf courses to use reclaimed water, Oro Valley sought and received a waiver from the requirement for Pusch Ridge. Now the costs to do so are greater. Everyone in town has to be more creative in solving this challenge. The easy answer seems to be to just close down golf courses. The impact on the quality of life and the economics of such a decision seem to deserve we explore other options first.
We believe there are solutions out there
We just hope people and circumstances with the drought give us time to find a good one. Oro Valley is a great community that does deserve to excel. Friends of Pusch Ridge Golf sincerely wants to contribute to the town’s continued growth and sustainability."
"No on wants our public courses to succeed more than I do"
“In October 2019, I approved the 36-holes of golf. No one wants our public golf courses to succeed more than I do.”
Thus began Mayor Joe Winfield’s 8 minute explanation of why he supported spending almost $7.8 million to replace golf course irrigation. The council approved this expenditure by a 6-1 vote last week.
“I also supported broadening the half percent sales tax, broadening to all parks and recreation, including the golf course irrigation. Delaying repairs will just cost more in the future.”
Reason: "Golf is the most popular sport in our community"
Referring to the public outreach that was on for the 2020 Parks and Recreation Master Plan: “It does identify that golf is the most popular sport in our community.” It also identified many other resident needs parks and recreation items that are important to the community. “We did have a good response to each of these outreach efforts.”
Basis: As validated they the towns "statistically valid survey"
“When I looked at the statistically valid survey, the thing that really stood out to me was that half our community doesn’t use any of these amenities.” Winfield noted that despite this 93% of the community (users and non users)
indicated that the “Parks and Recreation System Program makes Oro Valley a more desirable place to live.”
"Nothing I like to see more than people on our golf courses"
Winfield noted that he doesn’t use many of the town’s parks and recreation facilities but “I know that it is important to our community and I want to invest in all these parks and recreation facilities and amenities, including golf because I know that golf is important to our community. There’s nothing I like to see more than people on our golf courses.”
Winfield stated that 22% of the respondents to the survey use the golf facilities.”I get a little weary of hearing that it is only 300 people. That’s nonsense.” According the Winfield, the national statistic for that is 9%. “And our facility is 22%.”
“I wish this bond was 50 million"
Winfield would like to build every part of the master plan now. “I wish this bond was 50 million.”
Winfield applauded town staff for recommending that $4.5 million of the golf irrigation replacement come from the $25 million parks and recreation bond, with the remaining $4.3 million coming from available reserves.
Mayor Winfield is confident in town staff's ability to get the irrigation rebuilt. “If we leave it to our staff to get the job done, they’ll make it happen.”
The type of Government we have in Oro Valley is based on the Town Council (elected officials) making the Town’s policies, and the Town staff (unelected officials led by the Town Manager), carrying out those policies.
However, in Oro Valley something is amiss.
Council sets policy. Staff implements.
The Council has study sessions and public meetings to ensure that the budget is fully vetted by both the policy makers and the public. The budget process is somewhat lengthy and detailed, and the vote to amend and approve is the most important vote the Council makes every year.
The Council should feel confident that their policies, as reflected in the annual budget, come to fruition
However, there is a real problem in Oro Valley in that the adopted spending policy has not been carried out.
We have heard how the Council allocated $750,000 to make the Community Center ADA compliant. What happened? Where did the allocated money go? The Council has enough on their plate without having to worry about their policies coming to fruition.
The State of Arizona requires that all budgets be balanced
If the Town Manager submits in the budget that an expenditure is $X, then there must be $X in revenues. For example, if there was $750,000 allocated for Community Center ADA compliance issues, then there has to be $750,000 in revenues.
Town Council’s adopted budgets are not being implemented
On page 244 of the adopted budget for FY 19/20, there is a Capital Improvement allocation for a $3,000,000 bond for golf course irrigation improvements. What happened? Was there a bond, and, if so, where are the improvements?
On page 227 of the adopted budget for FY 20/21, there is a Capital Improvement allocation for $1,100,000 for golf course irrigation. What happened? Where are the improvements?
On page 230 on the adopted budget for FY 21/22, there is a Capital Improvement allocation for $90,000 for tennis court resurfacing. However, the Council just passed a bond where some of the money is going to resurface tennis courts. What happened to the allocated $90,000?
On page 110 of the adopted budget for FY 21/22, there is a breakdown of the personnel allocated to the Town Manager’s office. In this breakdown there is no allocation for the position of CIP Director. However, there was a recent Facebook posting advertising a position for a CIP Director. This is a position that is not budgeted.
Where did the Federal Cares Act money go?
During the Call to Audience at the March 16th Town Council meeting, Town Council Candidate Bill Rodman stated that the Town received $5.3 million in Federal Cares Act money. Who authorized the spending of this money and where did it go? Did the Town even consider spending this money on piping reclaimed water to Jim Kriegh Park or Riverfront Park or to the Pusch Ridge Golf Course?
Town Policies are being ignored
There are adopted Town Policies which have been ignored by this Council and Town Manager. Town Policy 6, adopted on 3/5/97, and reaffirmed on 4/20/05 is titled “Unbudgeted Expenses”. It directs the Town Manager to go to Council for approval for any unbudgeted expenses. Where was the Council approval for the above-mentioned unbudgeted position?
The Council needs to fix this problem
It is unfortunate that our underpaid part-time Council members cannot rely on the Town Manager, who makes over $184,000/year to carry out adopted policies and procedures. The Council must ensure that their policies are carried out.
The Council must ask: What happened to the $750,000 for ADA compliance? What happened to the previously approved expenditure totaling $4,100,000 for golf course irrigation? Where did the allocation for a position in the Town Manager’s office come from?
It is too bad that our Town Council cannot expect their decisions to be carried out. Unfortunately, this delinquency is costing Oro Valley a lot of money.
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You can watch Zinkin's remarks to council on this matter above.
- - - Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike 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.
After the adjournment of last Wednesday’s standing room only Town Council meeting, the Council held a “listening session” with residents regarding the Community Center Golf Courses. Oro Valley resident, Kim Krostue, gave the following speech.
My name is Kim Krostue. I have owned a home on the tenth fairway of the Views golf course for 8 years.
I have reviewed the financials of the Town’s 45 holes of golf. Clearly the status quo is not financially sustainable. A change needs to be made.
First, the 9 holes need to be sent back to HSL.
Second, I have studied the National Golf Foundation’s 2018 report. There were 3 options discussed. The 18-hole option (Option C) is the correct one. However, the 18-hole configuration as outlined in the report seems artificial with a new 18-hole course carved out of the La Canada and El Conquistador courses, preserving holes on each course.
I would suggest changing this and just keeping the La Canada course as is. I would repurpose the El Conquistador course preserving the views of all current El Conquistador homeowners. By selecting the La Canada course, I believe the 4.2M conceptual reconfiguration cost outlined in the NGF report (Option C) could be reduced perhaps dramatically thereby leaving money for community center improvements. Plus the move to 18 holes could be done almost immediately with all required irrigation work being completed this summer.
I believe moving from 45 holes of golf to 18 is the best option to preserve the property values of all homeowners living on every golf course in Oro Valley and will also allow the La Canada course to operate in the black.
Mr. Krostue also submitted the following comments on Take Back OV (Facebook Page):
If you weren't there, take the time to watch. The attitude in the room demonstrated why Hiremath and crew were crushed in the election. The golf club members led the charge for a continued free lunch. No other way to say it. I do not remember anyone in the “keep 36 holes group” arguing that golf should operate financially in the black. The NGF study captured this group’s attitude in the 2017 study and nothing has changed.
I learned something significant at the meeting. The deed restrictions in the HSL contract apply to the La Canada course and the 9 holes, not to the El Conquistador course. It appears that the town manager (staff) did not understand what the deed restrictions actually were until after last month’s study session. Think about that for a second.
--- Editor’s Note: Mr. Krostue’s comment, “The NGF study captured this group’s attitude in the 2017 study and nothing has changed” was in reference to a comment by the National Golf Foundation after a 2017 meeting with El Con golf members and residents living along the golf courses.
“The feedback from these groups showed very little tolerance for change and lack of concern for the troubled facility economics." ~ Summary statement, Page 4, National Golf Foundation Study
This is the second of our postings on the five factors that played out in the 2018 Oro Valley election.
--- Factor 4: You can "dress-up the pig" but it is still a pig
The pig, in this case, is the town owned 45-hole "country club." This is also known and "The Oro Valley Community Center".
The town purchased this property in 2015 from the major campaign contributor to the Majority-4, Hector Lopez (HSL). The purchase of the golf course enabled Lopez to buy the El Conquistador Resort. Based on a town sponsored survey taken long before the purchase, a golf course and a community center were never among the 30 plus desires of the community.
The purchase of the El Conquistador Country Club veered Oro Valley off course. It split the council. It caused a referendum effort, an effort rejected by the town on technical grounds...
...despite thousands of lawful signatures. The referendum was rejected by a town clerk who, we are absolutely convinced, allowed a clerical mistake to go "unnoticed" until submission time. The thousands who signed the referendum never got to vote on it. Apparently, they never forgot the callousness shown by this town clerk, and by extension, the Majority-4, to the people of Oro Valley.
Now, the town was the enemy. Trust was lost.
And the leaders of the town, the Majority-4, were behind it.
Anyone with an open mind could see the many signs that this acquisition was going to be a financial disaster
The sport of golf is on the decline
The course and the community center were expensive to operate
The course and the community center required millions of dollars in investment
Supporting these losses required an increase in the sales tax
This year, they approved a $6 million bond. The funds will be used to replace aging and leaking golf course irrigation lines ($3.8 million) and to remodel the outdated community center ($2.2 million)
The golf course had a decreasing membership
The clubhouse, which is now the community center, was a run down, non code compliant building
And, when real accounting takes place, as documented on these pages in LOVE, this facility costs the town millions in losses.
Rather than propose alternatives, the Majority-4 "doubled-down" on their decision
Mayor Hiremath and his majority moved ahead with the purchase. They raised the sales tax to pay for operating losses. They faced and barely won a recall election. Then, this year, the council "doubled down" on their investment. They authorized a $3.8 million bond to pay for golf course improvements.
Voters saw all this.
Voters know a pig when they see one
In this case, it's a pig that gobbles up money that could be used for purposes with a much greater benefit to the many who live in Oro Valley.
The 2018 election told the Majority-4 that: "If it walks like a duck, talks like a duck and quacks like a duck then it is a duck"... regardless of what the Majority-4 tell you.
Leaders who do not recognize and deal with reality are not the leaders that the people want.
-- Next Up: Factor 3: "Views Matter"
Below are direct quotes from the National Golf Foundation (NGF) Study contracted by the Town of Oro Valley to assess the Community Center Golf and Restaurant Operations
(1) "The overriding trends in the golf industry will present challenges to the Town of Oro Valley in continuing golf course operations. The total number of “core” golfers is declining and total spending on golf is declining along with them…NGF has also documented rapid inflation in expenses to operate golf facilities in this market, especially related to the cost of water for irrigation." (Page 24)
(2) "The City of Tucson’s public golf courses are down 25% in rounds and 19% in revenue since 2008, and other public golf courses report similar reductions…Hotel facilities are an important factor for feeding golfers to the ECGT [El Con Golf and Tennis] and ECGT will have to do more to accommodate hotel operators in the hopes of attracting a greater share of play." (Page 24)
(3) "As a whole, the ECGT and Pusch Ridge golf facilities combined to produce total top-line revenue of just over $2.9 million in 2016, the vast majority of which comes from golf fees, member dues and Food and Beverage sales. The on-site operating expenses at the facility totaled around $5.2 million…resulting in a roughly (-$2.3 million) loss on operations (excluding other necessary costs such as capital upgrades and new investment in infrastructure). (Page 25)
(4) “The Current financial condition is worse than most public sector golf operations in the U.S, where 67% of municipal golf course operations are able to cover on-site expenses, but not able to cover both on-site expenses and capital improvement costs (only about 33% can cover both)." (Page 25)
The Recommendations
The Study provides options to the Town outside of closing the total golf operation. I will focus on Option B and the Pusch Ridge conversion since the below quote indicates that this is what the study recommends.
“…the NGF sees a 27-hole facility at El Con Golf and a modified par-3 golf course (possibly 12 holes) at Pusch Ridge as a much better option for Oro Valley to provide a more sustainable golf facility for the longer term going forward.”
I expect that the Mayor and Council will go along with this since they never think for themselves and they will simply say, “We paid for this study so we should follow the recommendations.”
Option B
This involves a reconfiguration of the 36 holes at the Conquistador and Canada Courses. This would be reduced to 27 holes (three 9-hole courses). The cost of this modification is estimated to be $4,639,115(Page 102)
All the holes south of Lambert would be removed causing a shock to the residents of "The Villages HOA" as they will now be totally responsible for the future of this acreage.
Pusch Ridge
The cost to convert the 9-hole Pusch Ridge course to a 12-hole, par-3 course, called the "Dirty Dozen,” is estimated to be $3,013,120. (Page 109)
The study mentions how the Pusch Ridge conversion would be an enhancement for the Hilton El Conquistador Resort. Do you think Humberto Lopez/HSL Properties is going to participate in the cost of this conversion? The study states that:
“HSL has indicated strong enthusiasm for the Dirty Dozen concept as a way to transform the existing course into something the resort can leverage as a must-play golf experience that will take less time, provide a truly unique one-of-a-kind golf experience in the region, and will fit a model where less resources and turf coverage are required to sustain the golf operation." (Page 64)
Double Trouble?
With these two options in place (Option B and Pusch Ridge) the Financial Analysis of Future Expected Performance reveals that even after spending $7,652,235 for improvements and upgrades, operating expenses are still expected to exceed revenues by approximately $1 million per year with no expectations of breaking even at Year-5 when the facility is still expected to lose $1,050,600. (From the 5-year projections chart on Page 81).
Although this loss will be offset by the $2,000,000+ in sales tax, keep in mind that there is NO discussion about the Community Center, other than the recommendation to contract the food and beverage operation. This is important to note because there will still be costs for continued capital improvements to the Community Center.
How about a Going-out-of-Business Sale?
The report states that closing the total golf operation will cost $80,000 to eliminate the Pusch Ridge course (Page 68), and about $3 million to close the remaining 36 holes (Page 67). In other words, by spending about $3.1 million, the Town can be out of the golf business. There would be a drastic reduction in employee costs, no need for cart leases, no more management fees, and utility expenses would be dramatically reduced.
The Town would still water, fertilize, and maintain the acreage in the summer, or they could just let the property return to its natural state. The $2+ million in sales tax revenue would more than cover this and the surplus dollars can go to improving the Community Center.
What do you think the odds are that this 7-member congregation will consider something reasonable, like cutting the Town’s losses (your losses) and moving on?
...............
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 in 1969. He worked as an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley after retiring in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. During his time on council, he was named as one of 23 Leadership Fellows 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.
Losses are just shy of $9 million through May 2019
• I’ve read the 286 pages of letters submitted to the town by residents of the golf communities, primarily Canada Hills. Their unwavering opinion is that all 36 holes must be retained. In my observation, that’s not the opinion of thousands of other Oro Valley residents who find that unreasonable.
The Town’s original revenue projections indicated that the half-cent sales tax and the Community Center Fund would cover ALL expenses including capital improvements. Troon projected golf losses of $2M through FY 2017/18 with a slightly positive return starting in FY 2018/19. Instead, the losses are just shy of $9M through May 2019. Yet now we’re supposed to believe that golf will only require $1M in annual sales tax support if the Town retains 36 holes and if they spend almost $4M to replace the irrigation system and refurbish holes as part of the $6M bond package?
Two key points in the National Golf Foundation Study were quite clear:
(1) The financial condition of Oro Valley’s golf operation is considerably worse than most public sector golf operations in the U.S. where 67% of municipal golf course operations are able to cover their expenses.
(2) There are far fewer permanent households and resident golfers in the greater Tucson markets to support each 18 holes of golf in the area.
While I understand the concerns of those that paid premium prices for golf course views, there are many others in town who also paid higher premiums and lost their views due to the rampant development in town.
Golf is in decline, water is a precious resource, and real estate law does not guarantee property values
• I play golf but I cannot afford to live in a golf community. The Town of Oro Valley purchased the golf courses despite a large segment of the community voicing dissent. The face of our Town government has changed in large part due to that decision. The revenue and expense projections have proven to be faulty and continued support of the golf properties are a drain on the town budget with taxpayer money that would be better spent on services enjoyed by the entire community…Golf is in decline, water is a precious resource, and real estate law does not guarantee property values…There are many other golf options available. I use them. Those who want to play golf can use those options just like I do.
Troon's forecasts are not accurate and are not to be relied upon
• The purpose of a forecast is to as accurately as possible, project the future both in revenues and in costs so that when management makes a strategic decision, they have the best basis for doing so. In witnessing the Town’s forecast for the 36-hole option, I don't believe it does that. The town implies that the 36-hole option will cost only $11M in the future 10-year period. It understates the cost and misrepresents the losses that the town will incur.
In December 2014, the same forecasters, Troon and the town, said that we would lose $2M before turning golf profitable this year. Through May of this year, we have lost over $8.8M in golf and restaurant operations and are budgeted to lose more than $1.8M this year. That will be $10.5M in operating losses in 5 years.
The Town forecast conveniently picks a period of time 3 years in the future. This occurs after repairs costing us another $4M are completed and provides a best case hypothetical of what the 36 holes could look like if everything went right. And that hypothetical said that we will still lose $1M a year…I find that very unlikely.
The forecast conveniently ignores over $5M in losses for the next 3 years - the $1.8M this year and the several millions that we will lose while we’re restructuring the courses. The town says that since the irrigation repairs will be so disruptive, the losses can’t be estimated. Troon’s wage and benefit inflation increased $100,000 over the past year. A first look by the Budget & Finance Commission showed that the 36-hole option might cost $30M over the same period.
The Town’s projection indicates that the 36-hole option is probably the best, and in my opinion, it’s the worst. For the council to decide on what makes the best decision, the financial basis of that must be based on accurate forecasts, and the town and Troon have shown in the past that their forecasts are not accurate and are not to be relied on.
I know that decision-making can be difficult, especially for complex and controversial issues like this. For 6 years before I retired, I was the Director of Planning for the largest park and recreation district in (it sounded like he said Oregon)… It was generally recognized that almost all facilities and programs required some level of subsidy. So it’s not surprising to me that golf courses would have to be subsidized for the long-term.
The question is, how much subsidy should they receive from the town relative to other recreational facilities and programs that the town provides? It seems to me that subsidies should be highest for facilities and activities that are used by the greatest number of town residents such as parks, ball fields, and multi-use paths.
A Flash-Vote survey by the town earlier this year showed that multi-use paths were the recreational facilities most used by the town residents. Although I’m not a golfer, I’m not against subsidies for a golf operation, I just don’t think that golf should be subsidized to the detriment of other parks and recreation facilities and programs.
Of the options under consideration, I think retaining an 18-hole public golf course with conversion of the other 18 holes to well-manicured park space and pathways would be your best choice unless other parties, such as the HOAs, are also willing to participate in subsidizing a 36-hole operation.
Listen to Anna Clark’s speech below. A partial transcript appears below the video.
One percent of the population is utilizing 75% of the Parks and Rec Budget
• Golf alone consumes about 75% of the Parks and Recreation budget. What about the rest of us who don’t golf? I have 4 sons who play field sports. Oro Valley desperately needs more soccer and baseball fields to accommodate the many other families with children who play sports….At Naranja Park, because of the lack of field space for kids, soccer players of all ages are forced to practice on the same field at the same time. This is a recipe for disaster…What about the kids who want to play basketball? The Town only has one basketball court.
All of us are paying an extra half-cent tax on everything we buy in Oro Valley, but what is our money getting us? Why are we subsidizing an under-used Town golf course for less than 1% of Oro Valley residents? We need to reduce the number of golf holes to match the demand for golf and make it pay its own way. Imagine what Parks and Rec could offer our residents if it was no longer shackled with millions of dollars in golf losses.
Part 4 will be published on Monday and will include closing comments from Mayor Winfield and Vice-Mayor Barrett.
Town Manager: Two "most viable options" The town has two "most viable options" regarding what to do about the Pusch View 9-hole golf course. This according to a memorandum to the Oro Valley Town Council from Town Manager Mary Jacobs.
The options are: To permanently convert the 9-hole course back to natural open space for passive recreation use; or to operate etc Pusch Course during the peak season beginning next fall.
Golf is the most costly option
Over the next five years, operating the course will cost the town about $2.6 million. Allowing it to revert to natural space for recreational use will cost a minimum of $1.6 million. There is a third option the memo does not mention. The difference in cost of $1million is significant. (See panel)
LOVE identifies Option 3: Add this decision to the Parks and Recreation Master Plan Study
The town is engaged in a lengthy process of developing a ten year parks and recreation master plan. This property should be included in that study.
There is no reason to rush a decision. HSL, the owner of the resort, can not force the town to do anything as dictated by the original contract. This is because contractual agreements usually have a "Force Majeure" clause. That clause suspends enforcement of a contractual agreement clause when there is an "act of god". The pandemic is such. Certainly, the town's purchase agreement with HSL for the property has such a clause.
We suspect that the pandemic will not be officially declared over by the federal government until mid 2022, assuming that the actual infections rate is close to zero by year end. Then, in 2022, the town can reengage HSL, the resort owner, in a discussion of them taking back the course if that is the course of action it chooses.
As for homeowners and the homeowner associations next to the course, they can wait.... Just like the rest of us. What happens regarding this property is important to all of us.
Drinking water is a huge issue if a golf course is maintained The course uses drinking water for irrigation The town will have to use substantial amounts of drinking water to maintain the course. The course will use up to 45 million gallons annually. That’s equivalent to 139 acres of water covered to a depth of one foot. That’s enough water for more than 500 homes for a year!
Town admits error
"Under-billed" water to course for twenty years
In addition, the town has been billing the water at a bargain rate. The course pays on the the rate for the first tier of the water rate. That’s intended for up to 7,000 gallons per month. After that, there are two other tiers with water costing more per gallon used.
According to the memo, the town just discovered this error in billing while doing the options analysis.
“For the past 20 years, the course has continually been billed at the Tier 1 rate.’ Jacobs has no idea when it happened or how it happened. This means that the town was incorrectly billing water before the town owned the property.
The memo suggests that the town create a “turf” water rate at the tier 1 rate just to keep the cost down. If the correct rate were applied, the estimated added cost of water would be $70,000 per year. That is a yet another golf subsidy.
Creating a community natural space amenity not a “slam dunk”
To be clear, the Town of Oro Valley did not get a bargain when it purchased this course. Much of the asphalt paving is cracking, uneven or in need of replacement. The memo notes that it is estimated that 70% of the pathways need to be replaced. In addition, the memo states, and we do not agree, that there may be some short-term negative impact on neighboring property values. The memo also voices concern that there may be people from outside of Oro Valley who will want to walk the trail. This, they claim, could cause safety issues.
Council to discuss Wednesday The council will discuss what to do with the course this Wednesday. We imagine that many residents in or near the course and their homeowner's association will attend the meeting in an effort to pressure council to make a decision that favors their interests. This approach worked last year for those who wanted the town to continue to maintain the two 18-hole courses. Both Mayor Winfield and Council Member Jones-Ivey are highly susceptible to this approach.
Pusch Ridge Golf course used 34 Million Gallons of drinking water so far in 2021
On December 8, 2021, I sent an email to the entire Town Council delineating the monthly drinking water usage for 2021 at the Pusch Ridge 9-hole golf course. The total was 34,608,000 gallons.
Ten million gallons of drinking water were used in October
The bill due 11/24/21 indicated drinking water usage of 10,382,000 gallons for the month of October.
I wrote to the Water Utility to question if I was reading the bill correctly since October drinking water usage was about 4 – 5 times the amount of normal monthly usage. The response I received was “The [drinking] water increase was due to the over-seeding process and watering of the seed.” The cost of over-seeding was $37,367.16 of your tax money.
The mayor’s response
When I informed the Mayor/Council, in an earlier communication, that the drinking water usage at Pusch Ridge for the bill due 12/22/21 was 4,045,000 gallons, the response from Mayor Winfield was: “The Council by a 6 to 1 vote agreed to operate the Pusch Ridge Golf Course for three years. We are in the first of a three year commitment. The course is operated in the cooler months of the year to reduce water consumption.“
Mr. Mayor, November is one of our cooler months and still the usage was over 4 million gallons. I have to wonder, does the mayor (and council) not care about drinking water waste? Are we all supposed to just suck it up because the Council voted to continue operating the Pusch Ridge course for another 3 years? That decision along with the associated waste of millions of gallons of our drinking water is irresponsible.
Stop wasting drinking water
Let me put the total usage of 34,608,000 is perspective. The average home in Oro Valley uses 7,000 gallons a month, or 84,000 gallons a year (7,000 x 12). This means that the amount of drinking water wasted on the Pusch Ridge course in 2021, is enough to service over 412 homes a year (34,608,000 divided by 84,000). The complete Silverhawk development along First Ave is only 215 homes.
Heavy use of drinking water to irrigate the Pusch Ridge Golf Course is real and it is not going away
There are real issues with the CAP drinking water and Colorado River allotments. However, the Pusch Ridge course irrigation uses drinking water, not reclaimed water or CAP water.
Take action
We (me and you) need to scream at the council: "STOP THE DRINKING WATER WASTE." “Kicking the can” down the road to another council is simply not acceptable.
- - - Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike 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.
