Golf

The New Mayor and Council Ultimately Vote to Retain Thirty-Six Holes of Golf

 

Following the election of the new Mayor and Council Members in August of 2018, the Town Manager makes a decision to postpone moving forward with the $6 million bond associated with the golf courses and the Community Center that is a part of the 2018-19 fiscal year budget.  The decision is made to allow the newly elected Council officials to take office and be allowed to express their desires with regard to this issue.

In September of 2018, long time MGA President John Gorman makes the decision to take a break and does not renew his membership at El Conquistador.  The MGA Treasurer, Mike Schoeppach, agrees to assume the role as MGA President.  This decision is based upon the fact that he has worked closely with Mr. Gorman over the past three years in the effort to preserve the 36 holes of golf at the Community Center and the Pusch Ridge course under Town ownership.  It is also based upon the fact that Mr. Schoeppach has served as a volunteer with the Town in a variety of capacities since becoming a member of the Town’s Development Review Board in 2007, and is familiar with many of the Town staff and political leaders.

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Prior to the new Mayor assuming his position on the Council, Mr. Schoeppach requested via email an opportunity to meet with him to introduce himself.  While the new Mayor and Mr. Schoeppach had both served on Committees for the Town’s “Your Voice, Our Future” process to establish the new ten-year plan, they had not actually, previously met.

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The two met for breakfast in October for approximately an hour.  Mr. Schoeppach explained at the beginning of the meeting that his intention was simply to introduce himself so that might serve as a basis for future discussions between the two, not to “lobby” the new Mayor or discuss the golf course issue.  After a period of time when each described their backgrounds, Mr. Winfield explained that he had initially believed at the outset of his mayoral campaign that the Town should close the golf courses.  However, he explained, he had since modified his position.  He explained that he now had two “interests” concerning the golf issue.  The first was to “preserve property values.”  The second was to “reduce the amount of tax subsidy provided to the Community Center Fund.”

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At this point, Mr. Winfield asked Mr. Schoeppach to give him his thoughts about the status of the golf courses.  While reluctant, since that had not been his intention for the meeting, Mr. Schoeppach explained he’d been a member at El Conquistador since the winter of 2001.  He said that at the beginning the courses had been in terrible condition, but at the present, the golf courses had never been in better shape.  He completely credited Troon Golf for that fact, saying that as a result, outside play had increased and golf memberships were no longer diminishing.  However, he said that the constant uncertainty about the continued operation of the course under Town ownership, and even previously, was a dark cloud over the enterprise that never seemed to be resolved.  He ended by stating that, if that ever was resolved, in his opinion, the property had the potential to become extremely successful.  Mr. Winfield never responded to these comments other than to say he would be in touch to pursue the subject further.

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After the new Mayor and Council Members were seated on the Council in November of 2018, the issue of the golf courses never became a topic of Council discussion, at least not before the public.  In December Mike Schoeppach inquired of the Mayor via email as to whether he intended to follow-up regarding their initial discussion in October.  Finally, in late December, the Mayor requested that Mr. Schoeppach attend a private meeting in January of 2019 with several other individuals to begin a discussion regarding the future of the golf courses.  Mr. Schoeppach agreed to participate in such a meeting.

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On the evening of January 22, 2019, from approximately 5:30 pm until about 7:45 pm, the meeting took place in the small conference room adjacent to the Law Department in Town Hall.  Those in attendance were Mayor Winfield; Guy Cook, a Des Moines, Iowa attorney, who had a winter home on the Pusch Ridge course, is a golfer, and was President of the El Conquistador Resort Patio Homes HOA; Dennis Larson, a member of the Mayor’s congregation and former El Conquistador golf member a number of years earlier; Dick Leonard, a former El Conquistador golf member, a “Snowbird” from Minnesota where he worked at a municipal golf course as a starter, and author of several Explorer letters-to-the-Editor critical of the Town’s ownership of the golf courses; and Mike Schoeppach, El Conquistador golf member and President of the El Conquistador Men’s Golf Association (MGA).

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The Mayor “facilitated” the meeting.  He began by saying that this was not a “confidential” meeting or in any way “secret” and those in attendance were free to share what was said during the meeting with anyone they felt they needed to, in any manner they deemed appropriate.  He explained that he had invited those present because, either during or after his campaign, each individual had spoken to him about the Town’s golf courses and had presented themselves as knowledgeable and reasonable in their interactions.  He hoped this meeting could be the beginning of a process to find some common ground whereby the fate of the golf operation would be acceptable to the Town’s citizens and meet the interests of as many as possible. 

The Mayor then requested that each participant provide a brief introduction of themselves, which each proceeded to do.

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Next, the Mayor explained that he was not a golfer and didn’t know very much about the sport.  He said that at the outset of his campaign he initially believed that all 36 holes of golf should be closed by the Town.  He explained that he had been a member of the Town’s Parks and Recreation Advisory Board at the time the courses were being considered for purchase by the Town Council and the Board had recommended against the purchase.  When the Council went ahead with the purchase, the Chairperson of the Board resigned, as did he.

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The Mayor then stated that he no longer held the position that the golf courses should be closed.  Instead, he repeated that he now had two interests, and repeated the same interests as he’d provided to Mr. Schoeppach during their earlier breakfast meeting; to protect property values, and to reduce the amount of tax subsidy going to the Community Center Fund.

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At this point, the Mayor asked who would like to begin to discuss their perceptions.  Guy Cook agreed to start.  Mr. Cook stated that he believed the decision by the Town to purchase the Community Center property was the correct one, though the process used should have been more inclusive and he saw the property as a valuable community asset.  He explained that he had approached HSL about taking over the Pusch Ridge operation and was willing to explore whether the adjacent homeowners would be willing to contribute to that operation.  That discussion had moved so far as for Troon to provide an estimated cost to HSL for their continued management of the property under a lease from the Town by HSL.  However, Mr. Cook explained that since the new Council had not authorized such an arrangement, things had not progressed beyond that point.

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Mr. Larson was next to provide his perspective.  He repeated that he was a golfer, a previous member at El Conquistador and other “Country Clubs,” and was familiar with the financial situation at the Community Center, because he had obtained the financial statements from the Town associated with it.  He conceded that the condition of the golf courses had vastly improved under Troon’s management.

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Mr. Larson then explained that he believed the model at El Conquistador was unique in the country to any other municipal golf operation.  He said the model was actually a Semi-private Country Club model, where there is a membership base, as well as a public daily fee component.  He stated that Oro Valley was the only municipality, as far as he was able to determine, that was attempting to operate such a model.

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Mr. Leonard next provided his perspective.  He disclosed that he was a Snow Bird, living in Oro Valley for six months and in Minnesota the other six months.  He said he got a job at his municipal golf course in Minnesota about six years ago and began to play some golf.  He stated that “Municipal golf got into my blood – I really love it.”  He made some observations about why municipal golf is so important and that El Conquistador should emulate that model.  From this point on in the meeting, Mr. Leonard did not significantly participate.

 

Mr. Schoeppach was the last to provide his perspective.  He explained his role at El Conquistador as President of the Men’s Golf Association, and his belief that the courses were in the best condition he’d experience in his 18 years of membership.   He said that Membership dues, cart/trail fees, and merchandise/food and beverage purchases represented $1.26 million annually in revenue to the Town.  He concluded by saying that the cost of Golf Membership was certainly negotiable, if  it was possible to have a discussion about what needs to be done to ensure the continued operation of the golf operation at the Community Center.

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At this point, the Mayor began to bring the meeting to a close, since it was after 7:30.  Mr. Schoeppach stated he hoped it would be possible to have, at least, one more meeting of the group.  The Mayor seemed in favor of the suggestion and asked if anyone believed someone should be added to the group.  Mr. Schoeppach said he thought a representative from Troon, such as Rob DeMore, would be a valuable addition who could be a good source of information about the industry.  The Mayor responded that, “Yes, Rob is going to be at our January 28th Study Session,” and wrote his name down in his notes.  Mr. Larson suggested adding the Director of Golf at The Views Golf Course to those in attendance, which Mr. Cook also endorsed, and the Mayor wrote his name down.  The Mayor encouraged everyone to attend the January 28th Council Study Session, describing the purpose for that Session, and stating that no public input or questions would be taken at that Session.  However, he said a second Council Study Session would be conducted on February 20th following a brief Council meeting, at which time public input and questions would be allowed.

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The Mayor concluded by thanking everyone for attending and saying he had been taking notes of the meeting that, while it would likely take several days, he would transcribe and provide a copy to all who had attended.

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Following the meeting, Mr. Schoeppach communicated via email with Mr. Larson.  He asked him to clarify his statement at the meeting that no other municipality in the country was attempting to implement the kind of golf operation that had both a membership and a public play component.  In the email, Mr. Schoeppach identified several municipal examples across the country that appeared to be doing so.  Mr. Larson never responded to his email.  After approximately a week, Mr. Schoeppach provided a copy of the email he had sent to Mr. Larson to all participants, with the explanation that he had received no response.

  

Participants at the meeting never received a copy of the notes Mayor Winfield took at the meeting that he said participants would be provided.

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At the Council Study Session on January 28, 2019, the Mayor and Council received a briefing by Town Manager Mary Jacobs regarding the golf courses and Community Center owned by the Town.  Part of that briefing included a review of the Golf Study that had been commissioned by the previous Council, including the various options of the 36 holes at the Community Center and the Pusch Ridge course.  The Mayor and Council were also briefed about why, generally, none of the options presented by the Consultants had been adopted and the existing 36-hole model had been continued.  No public testimony was accepted at the Session.  It was obvious based upon their statements at the meeting, however, that Mayor Winfield and Vice-Mayor Barrett questioned the appropriateness of continued town ownership of golf.  An article on February 13, 2019, written by The Explorer reporter Kathleen Kunz documented their comments.  The article also described the history of the Town’s ownership of the property and concerns by property owners that closing the courses would adversely affect their property values. 

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At the regular Council Session on February 20, 2019, the public was allowed to address the Council regarding the golf course issues, as Mayor Winfield had suggested would be the case at the January 22nd meeting.  There were 29 people, all but one Oro Valley residents, who addressed the Council during the Study Session dealing with the golf course issues.  A majority of those who spoke did so in favor of retaining the golf courses owned by the Town.

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Following these two Council Sessions, several months passed with no action or consideration given to the golf course issue by the Council, at least in public.  By April, those who were in support of retaining the Town-owned golf courses decided to take the initiative.

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The leadership of the El Conquistador Men’s Golf Association and Women’s Golf Committee created a “Steering Committee” composed of representatives from each of those two groups, as well as representatives from The Villages, Canada Hills and Pusch Ridge Patio Homes Homeowners’ Associations.  Later, representatives from a new organization, Oro Valley Thrives, were asked to join the Committee.

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The purpose for the Steering Committee was to develop a strategy that would result in the Mayor and Council reaching a decision to retain the Town-owned golf courses in their current configuration and fund the necessary infrastructure investments to insure they were sustainable into the future.  It was determined by the group that they should take actions that would address the two interests that Mayor Winfield had defined: protect property values, and; reduce the amount of tax support required by the Community Center Fund.

With respect to the issue of protecting property values, representatives from the Canada Hills Master HOA agreed to commission a Study by a qualified firm to describe the impact on property values adjacent to the golf courses, as well as within the Town, if the courses associated with the Community Center were abandoned.  A firm to conduct the Study was ultimately identified and the Study was completed.  It would subsequently be submitted to the Mayor and Council, as described later.

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The Committee also began an analysis to develop a proposal to address the issue of reducing the amount of tax support required by the Community Center Fund.  This proposal would include a component whereby the HOA’s adjacent to the two golf courses would make contributions to the Town for the operation of the courses, thereby reducing the amount of tax support required.  Such a proposal could be used to move the Council to address the question of the future status of the golf courses, given that things appeared to be stalled.

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By the middle of April, 2019, the Committee had created a proposal to begin discussions with representatives from the Town.  On April 23, 2019 Mayor Winfield, Vice-Mayor Barrett, Council Member Rodman and Town Manager Mary Jacobs were sent a letter of invitation to attend two meetings with representatives of the Steering Committee.  The first meeting was scheduled for the evening of April 29, 2019, from 5:30 until 7:30 pm.  The purpose for this meeting, as explained in the letter each potential participant received was “to provide you with a copy of a Proposal developed by the ECMGA and the Presidents of the Homeowners Associations that are adjacent to the two Golf Courses at the Community Center and the Golf Course at Pusch Ridge that are owned by the Town of Oro Valley.”  

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The second meeting was scheduled for the evening of May 6, 2019, also from 5:30 until 7:30 pm.  The purpose for this meeting was to answer any questions the participants might have had regarding the Proposal reviewed at the first meeting.  Both meetings were scheduled to be held in the Sunset Room at the Community Center.

Mayor Winfield, Council Member Rodman and Town Manager Jacobs accepted the invitation to attend.  Vice-Mayor Barrett declined the invitation, stating in an email reply that the Town would be conducting a thorough public process regarding the issue of the Town-owned golf courses.

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One other individual was invited to attend the two meetings and agreed to do so; Mike Zinkin, who continued to be publicly critical of the Town’s purchase and continuing ownership of the Community Center property.

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At the meeting on April 26, 2019, the Proposal developed by the Steering Committee was reviewed.  An advanced copy had not been previously provided to the participants identified above. It was explained that the Proposal was not a “demand,” but a place to begin the discussion.  Each of the elements of the Proposal were reviewed with participants.  These included discussions being implemented to lease the Pusch Ridge Course to HSL (consistent with the description that Guy Cook, who had become a member of the Steering Committee, had provided to the Mayor at the January 22, 2019 meeting), saving the Town an estimated $218,000, annually.  Specific current expenditure items were identified, resulting in Town savings of over $190,000.  Membership Dues would be increased by ten percent and outside play increased, to generate approximately $340,000 more revenue.  And, an Agreement would be established between the Town, and The Villages and Canada Hills Master HOA’s that would provide $200,000 per year to the Town for the support of the golf courses, to protect their property values.  These provisions, if implemented, would result in an annual reduction in tax support to the Community Center Fund of an estimated $940,000.

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At the end of the meeting, it was requested that the participants agree to attend the second scheduled meeting to more completely discuss the Proposal and address their questions.  Initially, Mayor Winfield had expressed the belief that the second meeting would probably not be necessary.  However, he was the first to agree he would attend, and all the other participants agreed to do so as well.

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The day before the May 6, 2019, meeting, Mayor Winfield advised Mr. Schoeppach via email, without explanation, that he would not be at the meeting the next day.

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All other participants were in attendance at the May 6th meeting.  However, Mr. Zinkin explained at the outset of the meeting that he needed to leave shortly after 6:00 pm, due to another commitment, which he did.

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Questions concerning the various elements of the Proposal were discussed and addressed.  The Town Manager explained that most of the elements were not new concepts to the Town, such as the potential lease of the Pusch Ridge Course to HSL, which Mr. Schoeppach acknowledged.  She did agree, however, that the concept of the HOA’s making contributions to support the facility was new, and a “potential game changer.”

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Discussions regarding the Proposal made by the MGA/WGC, and HOA leaders did not immediately generate negotiations that resulted in resolving the issues associated with the Town-owned golf courses.  After a number of weeks passed with no follow-up from Town representatives to the meetings of April 26, and May 6, 2019, Steve Jones, on behalf of the Canada Hills Master HOA, arranged a meeting with reporter Kathleen Kunz to review the Property Values Study that the HOA had commissioned and was now completed.  That Study had been submitted to the Mayor, Town Council Members, and Town Manager Mary Jacobs.  The article Ms. Kunz wrote appeared in The Explorer on May 29, 2019, and described the conclusions reached in the Study.

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In an effort to further press for some response to the MGA/WGC and HOA proposal that had been made, a meeting was arranged through the Canada Hills, Village 19 HOA for their HOA leadership to discuss the golf issues with Mayor Winfield and Town Manager Mary Jacobs.  The meeting was held the evening of June 6, 2019.  Besides the Mayor and Town Manager, Village 19 HOA President was in attendance with their Treasurer, Secretary, two Village 19 Members at large, and Steve Jones, Vice-President of the Canada Hills Master HOA.

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At this meeting, the Village 19 HOA leaders provided an extensive presentation to the Mayor and Town Manager.  They reviewed the initial Town purchase of the property; explained the fact that the Community Center and Golf Courses were the least tax-subsidized of all the other Parks and Recreation amenities/venues; described the impact of closing the golf courses on the surrounding property values, as examined in the Study commissioned by the Canada Hills Master HOA; pressed the Mayor and Town Manager to explain what alternative plans were being explored regarding re-purposing the golf course land if the courses were closed; and described the “down side” of closing the golf courses to the Oro Valley community.  It appears that this meeting was the first time in a public setting that Mayor Winfield described his alternative for re-purposing the golf course land by turning the acreage into what he described as “linear parks.”  When he was pressed to explain the concept further, he declined to do so, and could not or would not provide those in attendance an example of the concept that existed in any other setting.

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In early summer, the Mayor re-established a Commission that hadn’t existed for decades in the Town.  The new Budget and Finance Commission was composed of five Town citizens, one woman and four men.  Very shortly after it began operating, on June 18, 2019, it started to examine the issue of the Town-owned golf courses.  Some observers speculated that its real purpose was to provide “cover” to the Mayor and Vice-Mayor regarding any decision they might make to reduce or eliminate golf.  It was also immediately apparent that the new Commission had been provided very limited orientation regarding the standard operating procedure for such Town bodies.  For example, their meetings were initially not started with the “Pledge of Allegiance,” the standard procedure for all other Town Boards and Commissions. It wasn’t until a member of the audience suggested, at about the third Commission meeting, that this practice be implemented, which the Chairman said was fine with him.  From that point forward, the meetings were called to order in that fashion.  In addition, the Chairman seemed very perplexed and annoyed when members of the audience began attending the meetings and submitting the standard “Blue Card” to address the Commission on a particular issue.  Initially, the practice was not allowed.  Over time, it was permitted.

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Because Town representatives still made no attempt to engage in further discussions with representatives of the Golf Members and the HOAs, on June 25, 2019, Mike Schoeppach and Steve Jones had a meeting with Kathleen Kunz and editor Logan Burtch-Buss of The Explorer.  The purpose of that meeting was for Mr. Schoeppach and Mr. Jones to review the actions they had been taking to address the Town-owned golf course issues, and to review the proposal they had provided to Town representatives regarding contributions to the Town from the HOA’s to support retention of the courses and Community Center.  A copy of the HOA proposal was provided to the editor and reporter.  The meeting lasted more than an hour.

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The following week an article appeared in The Explorer that described the process and the HOA proposal.  An “editorial” by Butch-Buss and article written by Ms. Kunz appeared in The Explorer on July 10, 2019.  They described the content of the proposal that had been made to Town representatives.  Not long after that article appeared in The Explorer, a public process for determining the future of the Town-owned golf courses was finally announced by Town officials.

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After the June 18, 2019, Budget and Finance Commission meeting the subject of the future of the Town-owned golf courses became a standard subject of discussion at their meetings.  Increasingly, Oro Valley citizens became aware of this fact, and began regularly attending the meetings.  At the July 16, 2019, Commission meeting, the Chairman stated at the beginning of the meeting that a number of “Blue Cards” had been submitted by members of the audience to address the Commission.  However, he said, no “Blue Card” speakers would be allowed, since the issue of golf was on the agenda.  During the meeting, Mayor Winfield announced to those in attendance that there would be a “public hearing” with respect to the golf issue on July 24, 2019, and he encouraged citizens to attend.  

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The Council Special Session was conducted on July 24, 2019, for the purpose of providing public comment to the Council concerning the future status of the Town-owned golf courses.  Town Manager Jacobs had been encouraged by HOA and other leaders to schedule the Session in a larger venue than Town Hall, due to their belief that attendance would be well beyond the capacity of Town Hall to handle the projected crowd.  Ultimately, the meeting was moved to the Church of the Nazarene.

 

The Special Council Session on July 24, 2019 lasted for over three hours and thirty minutes.  Well before the Session began at 6:00 pm, the Church Sanctuary was filled well beyond capacity, and two other rooms held the overflow crowd who had video/audio access to the proceedings.  Media estimates of the crowd in attendance exceeded 800 people.  Following a presentation of golf options and financial estimates by Town Manger Jacobs, public testimony was allowed via the standard Council “Blue Card” process, limiting each speaker to three minutes.  Fifty people addressed the Council.  The overwhelming majority of the public comments advocated that the Town retain the existing 36-hole configuration at the Community Center.  Speakers ran the gamut from those who were members at El Conquistador Golf and Tennis; to citizens who lived adjacent to the courses and were concerned about their property values; to those who had never played golf, didn’t live on the courses, but valued the open space they provided; and two, young, female high school students on their school’s golf team who played and practiced at the El Conquistador courses.

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Following all of the public comment, and brief comments from several Council Members, the Mayor read a statement that, given its content, he had obviously written prior to the meeting.  His comments stood in stark contrast to the tenor of the vast majority of the public who spoke before him.  It appeared as if he had not heard what the members of the public who were present had to say who, by then, were exiting the facility, given the lateness of the hour.

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Because a number of citizens who had submitted “blue cards” to speak at the Council Session on July 24, 2019, were unable to do so due to the length of the meeting, they were provided the opportunity to speak at the Council Meeting the following week on July 31, 2019.  Forty-three people took the opportunity at that time to address the Mayor and Council.  As was the case at the meeting on July 24th, the vast majority of these speakers were in favor of the Council keeping all 36 holes of golf at the Community Center.

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Following a recess, Mayor Winfield directed Town staff to work with the Budget and Finance Commission to get one set of numbers for Troon financials as a starting point and clarify the total number of acres for each of the Town’s golf courses.  The Mayor then made a motion that was seconded by Vice-Mayor Barrett “for staff to issue a Request for Proposal (RFP) from qualified landscape architects to perform the following scope of work: proposed design to re-purpose golf holes, specifically, representative holes from the La Canada and El Conquistador golf courses, as natural desert open space with minimal maintenance consistent with the current deed restrictions. The proposal should include estimates of the costs to complete the proposed design, the time to implement the proposed design and the yearly maintenance costs associated with the proposed design.”  The motion passed 4 to 3, with Councilmembers Pina, Rodman and Solomon opposed.

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Next, Councilmember Solomon made a motion which was seconded by Councilmember Rodman “that the Town continues to operate the 36 holes of golf of both the El Conquistador and La Canada courses along with the Community Center and re-initiate discussions between the Town, homeowners and HSL for an acceptable solution for the Pusch Ridge golf course.”  No vote was taken on this motion, because a motion to table it was made by Vice-Mayor Barrett and seconded by Councilmember Nicolson which passed 4 to 3, again with Councilmembers Pina, Rodman and Solomon opposed.  The Mayor then recessed the meeting at 9:53 p.m.

Through August, 2019, efforts were organized to direct emails and letters to the Mayor and Councilmembers in support of retaining thirty-six holes of golf at the Community Center.  These efforts continued into the fall.  Early in September, leaders of the Oro Valley Thrive initiative began selling “Green Shirts” to supporters of the golf courses with the message “Save Thirty-Six Holes … Save Oro Valley.”  It is estimated that well over three hundred shirts were purchased by those supporting the effort.  At events, Budget and Finance Commission and Council meetings through November of 2019, the overwhelming majority of those attending wore the shirts in support of the effort to retain the thirty-six holes of golf.

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Following the second public hearing on golf at the Council meeting on July 31, 2019, no further discussion took place regarding golf until the August 20, 2019, Budget and Finance Commission.  At that Commission meeting, Town Manager Mary Jacobs and Troon Vice-President Rob DeMore made presentations to the Commission members that covered the Golf Study the Town had commissioned in 2018, and the status of the operation over the years the Town had owned the property.  Steve Jones representing the Canada Hills Master HOA also addressed the Commission and outlined the proposal that had been made to Town representatives in late April and early May that would result in contributions being made by the HOAs to support the golf operation and protect property values.  At the end of this meeting, a motion was made and passed unanimously by the Commission to have “representatives or a committee” begin discussions immediately with representatives of the HOAs regarding this issue.

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Throughout the discussion about whether to retain thirty-six holes of golf at the Community Center, the issue of the water rate charged by the Town’s Water Utility for irrigating the golf courses surfaced.  Soon after the Town purchased the property, water for irrigating the courses at the Community Center was transitioned from the use of potable water to reclaimed water.  The reclaimed water was purchased from Tucson and the infrastructure for the delivery of the product to not only the thirty-six holes at the Community Center, but also to the Vistoso, The Views and Stone Canyon golf courses, and other commercial customers had been established by the Town’s Water Utility District.  The Pusch Ridge Course, also owned by the Town, continued to use potable water for irrigation, because the infrastructure was never extended to that property to allow the use of reclaimed water.

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Obviously, from an environmental standpoint, using reclaimed water for the described users was important.  The use of potable water for these purposes negatively impacted the area aquifer, while using reclaimed water actually served to help recharge the aquifer.  However, the product was more expensive than potable water for these customers, particularly when the “surcharge” was added by the Water Utility to eventually pay for the cost of the required infrastructure to deliver the product.

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Two issues associated with the reclaimed water issue surfaced during the discussion concerning retaining thirty-six holes of golf at the Community Center.  The first issue was that the high cost charged by the Town’s Utility District to irrigate the Town-owned thirty-six holes put that property at a distinct economic disadvantage in comparison to other Municipal golf courses in the area and, in fact, state-wide.  This fact was uncontroverted.  For example, the golf courses owned by the City of Tucson were provided deep discounts in the water fees they paid to the Tucson Water District for their reclaimed water.  That fact was also the case with the County-owned Crooked Tree Golf Course, because Pima County also, significantly subsidized their water costs.  As a result, the “bottom line” for these publicly owned properties looked considerably better, just because of the fees they paid to irrigate their courses, compared to the Town-owned property.   In fact, across Arizona it was determined to be common practice for Municipal- owned golf courses to be provided varying forms of subsidy for the reclaimed irrigation water they purchased from Public Utilities.  If a similar “subsidy” were provided to the Town-owned courses, it would significantly reduce the amount of tax support required by the golf courses.  The Town-owned courses were also at an economic disadvantage to the Oro Valley Country Club Course which, because of the period when it had been established, continues to use potable water for irrigation through the use of the water provided by that property’s private well, which one might argue is not particularly environmentally sensitive.

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Regardless of the facts cited above, the Town’s Water Utility District refused to consider any initiative that might address the issue.  They argued that it would be unfair to provide a subsidy to the Town-owned golf courses, when all reclaimed water customers were currently paying the same rate.  It ultimately became apparent that, even though the Water Utility is a public entity, it operates in an independent fashion with respect to the Mayor and Town Council.

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A second issue regarding water rates surfaced during the discussion of the retention of thirty-six holes of golf owned by the Town.  That issue related to the alternative of repurposing the golf course property using the option suggested by the Mayor to convert the property to “linear trails.”  If, in fact, that option were implemented, even as it related to keeping eighteen holes of golf and converting the other eighteen holes consistent with the Mayor’s proposal, an unintended consequence was discovered.  The impact of that action would have a significant, negative impact upon the Town’s Water Utility District.  It would cause them to lose significant revenue from the reclaimed water rates approaching $1 million, annually, currently being paid by the Town’s golf courses.  It was ultimately conceded that, if that were to transpire, other user rates, both commercial and residential, would need to be raised to compensate for the revenue losses.  This action would have an obvious, negative economic impact upon these customers.

 

In the end, because of the decision made by the Mayor and Council in October of 2019, the second issue described above was avoided.  The first issue concerning the relative economic competitiveness of the Town-owned golf courses with other golf courses owned by Municipalities due to water rate subsidies has, to this day, never been addressed.

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On September 17, 2019, the Budget and Finance Commission again took up the golf issue.  Troon representative Rob DeMore was present via telephone and reviewed a Power Point presentation for the Commission regarding the golf courses.  However, technical difficulties did not permit Mr. DeMore to complete his presentation.  At the “Call to the Audience” at the end of the meeting, four citizens addressed the Commission in support of the Town retaining thirty-six holes of golf at the Community Center.  No citizens spoke in opposition to this position.

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There was a public hearing on the golf issues at the Council Meeting on October 2, 2019.  The Council Chamber was packed to capacity with a significant majority of those in attendance wearing the green “Oro Valley Thrives’ tee shirts.  The second item on the agenda dealt with the golf issue.  A presentation was made by Town Manager Mary Jacobs and Interim Chief Financial Officer Kevin Artz outlining a “Town Council Action Feasibility Analysis,” including a “Financial Summary” whereby the HOAs would make financial contributions for golf operations.  Following the presentation, eleven citizens spoke in favor of retaining thirty-six holes of golf at the Community Center and two spoke in opposition.

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After the public testimony, Mayor Winfield made a motion that was seconded by Councilmember Nicolson.  The motion selected the option to retain thirty-six holes of golf at the Community Center.  It stated the model would operate as “a municipal public course with a membership model that welcomes outside play on both courses.”  The motion also stated that “measurable and time sensitive targets for revenue, rounds played and memberships” would be established; “budgeted golf operations loss levels” were described for four fiscal years;” “a business development plan to grow membership to 275 members and reach 40K rounds of outside play by FY 21/22” would be coordinated; membership revenue would be increased by “10% by January 1, 2021;” an RFP would be issued “to obtain bids from regional or national companies experienced in managing municipal golf courses for operation of the 36 holes;” capital improvements would be accomplished on a “pay as you go basis” from the Community Center Fund; begin developing a plan “for a downstairs bar and grill to cost no more than $500,000,” and; “The 36 hole option is contingent upon reaching an agreement on the proposed HOAs financial contributions….”  At this point, Mayor Winfield recessed the meeting for nine minutes.

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(It should be noted that all of the “metrics” described in the motion passed on October 2, 2019, related to the establishment of a municipal public course, the Membership target of 275 Members, reaching 40,000 rounds of outside play, and increasing Membership revenue were actually met or exceeded by the end of March of 2021, a year before the 2021-2022 fiscal year threshold established in the motion.)

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Following the recess, a series of amendments were made, discussed and accepted making technical changes to the main motion.  Ultimately, a motion that contained these changes was made that also included a provision to “suspend the RFP for the landscape architect” to establish the estimated costs for repurposing the golf property which the Council had previously directed Town Staff to establish.  The amended motion was passed 6 to 1, with Vice-Mayor Melanie Barrett voting “No.”

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Just prior to and immediately after the Council vote on October 2, 2019, when the Mayor and Council confirmed that 36 holes of golf at the Community Center would be continued into the future, a Wall Street Journal reporter was in Oro Valley.  He was writing a story about golf courses closing across the country.  As part of that work, he requested an interview with Men’s Golf Association President, Mike Schoeppach to obtain his views about what was taking place with the Town-owned golf courses. The interview was conducted, and the reporter asked if Mr. Schoeppach would give him a tour of the golf courses, which was provided in the afternoon, after the interview.  During this tour of the courses, the reporter took video footage which was later processed into a video for by the Journal as a companion to their print story.  [Link to WSJ Video]

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The last Budget and Finance Commission meeting of any consequence regarding the golf issue took place on October 15, 2019.  At this meeting, the Chairman made a motion regarding the golf issue that contained three elements.  The first element stated that if the financial target set forth at the October 2, 2019, Council meeting were not met by the facility after three years that the HOAs would be responsible for making up the difference; that the tax support for the facility be limited to $750,000 per year, and; all capital expenditures be on a “pay-as-you-go” basis.  The second element was that if the HOAs won’t or can’t make up the differences described in the first element, that the Canada Course be closed, and the remaining course be capped at $500,000 of tax support.  The last element stated that one half of the half-cent sales tax dedicated to the Community Center Fund be redirected to pay for the unfunded liability in the Pension Fund.  At that point in the meeting, the Chairman recessed the meeting for fifteen minutes.  When the meeting was reconvened, the motion made by the Chairman died for the lack of a second.

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The next Council meeting took place on November 6, 2019.  Town Manager Mary Jacobs and interim Chief Financial Officer Kevin Artz provided a summary of the golf agenda item from the October 2, 2019 meeting; options for paying for the continued operation of thirty-six holes of golf at the Community Center; and the staff recommendation regarding that matter.  Three residents spoke in support of the agenda item, with no resident speaking in opposition.

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Mayor Winfield made a motion, which was seconded by Vice-Mayor Barret “to approve funding for all Golf Course repairs and improvements on a pay as you go basis from the Community Center Fund. . . .”  The motion called for irrigation replacement and repairs to first be done on the Conquistador course, followed by the Canada course; followed by Golf Clubhouse and restaurant improvements, with the Overlook Restaurant operation only supporting golf; reduced hours and labor costs for food service, consistent with a municipal golf course; issuance of an RFP for an outside vendor to operate the reduced golf food service, and; retaining a $100,000 minimum in the Community Center Fund for a reserve.

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Councilmember Solomon made a motion, which was seconded by Councilmember Pina to amend the main motion by approving the staff’s recommendation regarding funding for the golf course improvements and the Community Center.  The staff recommendation had been to use a combination of an Intra-Fund loan, bonding, and some pay as you go funding.  This motion to amend failed to receive a majority when Mayor Winfield, Vice-Mayor Barrett and Councilmember Nicolson voted no, and Councilmember Jones-Ivey abstained.

After discussion, Mayor Winfield made a motion that was seconded by Vice-Mayor Barrett to postpone the main motion to the next Special Session Town Council Meeting scheduled for November 20, 2019.  The motion passed six to one, with Councilmember Solomon abstaining.

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At the Special Session on November 20, 2019, the funding process for the golf courses and Community Center was continued.  Town Manager Mary Jacobs and Interim Chief Financial Officer Kevin Artz reviewed the funding options and staff recommendation that had been presented at the November 6, 2019 Council meeting.  Following discussion by Councilmembers, Mayor Winfield and Vice-Mayor Barrett withdrew the main motion they had made at the November 6, 2019, Council meeting.  Following this action, Mayor Winfield made a motion, seconded by Vice-Mayor Barrett, as follows:

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“to approve all golf course repairs and improvements to be funded on a pay as you go basis from the Community Center Fund.  No bonding will be undertaken for community center improvements.  Once the selected course operator is in place the investment sequence will be as follows: Conquistador irrigation and repairs completed in 2021.  Canada course irrigation and repairs completed in 2022.  Golf Clubhouse and restaurant improvements scheduled for 2021.  Staff will develop an RFP for competitive bids to operate the two town courses and review with Council.  Town staff will issue an RFP for irrigation design and construction for both the Conquistador and Canada courses.  The Town will manage the Overlook restaurant operation to support golf and reduce current losses.  Food service hours and menu offerings are to be consistent with the needs of a municipal golf course.  Oro Valley will retain a $100,000 minimum reserve in the Community Center Fund.”

 

Following discussion by Councilmembers, a motion was made by Councilmember Solomon and seconded by Councilmember Rodman to amend the main motion by substituting the main motion with the following:

“Proceed with the finalized design of the golf course irrigation and improvements to begin by the summer of 2020 and to complete those repairs and improvements by the end of 2021.  To bond for the Community Center and golf clubhouse improvements and begin those improvements by the end of 2020.  To have Town staff and consultants report back to the council regarding the different options for the restaurant and have public input on those options before a decision is made.  To fund the golf and irrigation improvements through the Community Center fund and if necessary through a loan from the General Fund savings in excess of the 25% General fund reserve policy which would be paid back through the Community Center fund over the next years.”

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Following Council discussion, the amended motion failed three to four when Mayor Winfield, Vice-Mayor Barrett, Councilmembers Jones-Ivey (via telephone) and Nicolson voted “No.”

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Again following Council discussion, Mayor Winfield and Vice Mayor Barrett requested a voluntary, editorial amendment to one sentence of their main motion.  Then, Mayor Winfield moved, and Vice-Mayor Barrett seconded to approve the following motion as amended:

“All golf course repairs and improvements to be funded on a pay as you go basis from the Community Center Fund.  No bonding will be undertaken for community center improvements.  Once the selected course operator is in place the investment sequence will be as follows: Conquistador irrigation and repairs completed in 2021.  Canada course irrigation and repairs completed in 2022.  Golf Clubhouse and restaurant improvements scheduled for 2021.  Staff will develop an RFP for competitive bids to operate the two town courses and review with Council.  Town staff will issue an RFP for irrigation design and construction for both the Conquistador and Canada courses.  The Town will manage the Overlook restaurant operation to support golf and reduce current losses.  Food service hours and menu offerings are to be consistent with the needs of a municipal golf course.  Oro Valley will retain a $100,000 minimum reserve in the Community Center Fund.”

 

Following some discussion amongst the Council, the above motion passed four to three, with Councilmembers Pina, Rodman and Solomon voting “No.”  This phase of the process had come to a conclusion.

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Several month passed.  Steve Jones and Greg Kishi, respectively on behalf of the Canada Hills Master and The Villages HOAs periodically interacted with Town Manager Mary Jacobs, via email and telephone, in an effort to get discussions started between the parties to establish a formal Agreement governing the HOAs’ contribution of $125,000 per year for five years to support the golf courses, consistent with commitments made during the October and November 2019 Council meeting deliberations.  While these interactions were always cordial and positive, the HOA leaders were not able to get such discussions started.

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Finally, in late February of 2020, the HOA representatives decided to utilize the approach that had initiated discussions with the Town regarding the golf courses back in April of 2019.  They made their own proposal to the Town Manager for an Agreement to govern the HOA contributions.  Very shortly after the Town representatives received the initial HOA proposal for such an Agreement, discussions began.  However, the process proved laborious.  Following several, initial face-to-face discussions between the parties in March and April of 2020, the exchanges devolved into email exchanges of proposals and counter-proposals, primarily between the attorneys representing the parties.

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The Canada Hills Master HOA came to general agreement regarding the ultimate language of the Agreement after several months of “discussions,” primarily via email and telephone exchanges.  However, The Villages HOA had more complex issues to resolve.  Because they had a specific Agreement with the Town regarding the status of the golf course holes south of Lambert Lane that are part of the Canada Course and contained within their HOA, they were cautious about protecting their interests as they related to the Agreement with the Town to provide the contributions to support the golf courses and protect their HOA Members’ property values.  As a consequence, attorneys representing their HOA and Town attorneys made numerous language proposals and counter-proposals to satisfy their mutual interests in this regard.

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Finally, after four months of discussions and countless exchanges, an Agreement was executed to govern the contributions made by the HOAs and the obligations the Town was responsible to meet for such contributions to be initiated and continued. [LINK TO HOA/TOWN CONTRIBUTION AGREEMENT]

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This was the final step that was required to close the chapter that resulted in the Town continuing to operate thirty-six holes of golf at the Community Center.  During the entire process, the vast majority of the public input received by the Mayor and Councilmembers regarding this issue, whether through public testimony, emails, letters, or personal contact was overwhelmingly in support of retaining thirty-six holes of golf, with only a handful in opposition.  Further, the diverse number of voices on the side of retaining golf far outweighed the few, “usual suspects” in opposition.  Those in support of golf were also diverse in another way.  Some played golf.  Some lived close to the courses.  But others were residents who had never played golf and didn’t live close to the courses.  They simply valued the open space in the middle of the Town and viewed the existence of the golf courses as a valuable community asset that attracted visitors and supported the economy and local businesses.  Apparently, this messages led the Mayor and members of the Council to take the action they ultimately took.  At least for the time being.

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