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HomeMy WebLinkAboutPackets - Council Packets (1845)        *AMENDED (2/5/24, 3:30 PM) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION FEBRUARY 7, 2024 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE For information on public comment procedures, please see the instructions for in person and/or virtual speakers at the end of the agenda. To watch and/or listen to the public meeting online, please visit https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 5:00 PM   CALL TO ORDER   ROLL CALL   EXECUTIVE SESSION    1.Pursuant to A.R.S. §38-431.03 (A)(1) and (A)(3) Personnel matter – Chief of Police annual performance review   RESUME REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   1.APPROVAL OF ANY DIRECTION TO THE TOWN ATTORNEY AND/OR NECESSARY STAFF AS DISCUSSED IN EXECUTIVE SESSION PERTAINING TO THE ANNUAL PERFORMANCE REVIEW OF THE CHIEF OF POLICE   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS Spotlight on Youth   TOWN MANAGER'S REPORT ON CURRENT EVENTS   ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING   INFORMATIONAL ITEMS   CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to discuss when completing the blue speaker card.   PRESENTATIONS   1.Presentation and update from Children's Museum Executive Director Hilary Van Alsburg   2.Presentation regarding the Town's progress implementing the Your Voice, Our Future General Plan   CONSENT AGENDA  (Consideration and/or possible action)   A.Minutes - January 10, 2024   B.Resolution No. (R)24-04, approval of a utility easement for the sole purpose of providing additional power to expanded Verizon telecommunications site at 551 W. Lambert Lane   REGULAR AGENDA   2.PRESENTATION, DISCUSSION AND POSSIBLE ACTION REGARDING THE FEASIBILITY AND CAPITAL IMPROVEMENTS FOR OPERATING THE PUSCH RIDGE GOLF COURSE   3.PRESENTATION AND DISCUSSION ON VALLEY VISTA SUBDIVISION SUBSIDENCE   FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)          *EXECUTIVE SESSION   2.*Pursuant to A.R.S. 38-431.03 (A)(1) for discussion and possible discipline regarding Councilmember Bohen's behavior towards residents, staff and council members, including those that occurred on 1/10/19, 6/1/22,12/18/23, and 12/19/23      *RESUME REGULAR SESSION   *CALL TO ORDER   4.*DISCUSSION, WAIVER OF EXECUTIVE SESSION PRIVILEGE, AND ANNOUNCEMENT OF DISCIPLINE FOR COUNCILMEMBER BOHEN, IF ANY, AND DIRECTION TO TOWN ATTORNEY, TOWN MANAGER AND NECESSARY STAFF TO CARRY OUT ANY DISCIPLINE      ADJOURNMENT The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.   POSTED: 2/1/24 at 5:00 p.m. by dt AMENDED AGENDA POSTED: 2/5/24 at 5:00 p.m. by dt When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at 229-4700. PUBLIC COMMENT ON AGENDA ITEMS The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual comment via Zoom. The public may provide comments remotely only on items posted as required Public Hearings, provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue speaker card to be recognized in person by the Mayor, according to all other rules and procedures. Written comments can also be emailed to Town Clerk Michael Standish at mstandish@orovalleyaz.gov for distribution to the Town Council prior to the meeting. Further instructions to speakers are noted below. INSTRUCTIONS TO IN-PERSON SPEAKERS Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the discretion of the Mayor. If you wish to address the Town Council on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the blue speaker card which item number and topic you wish to speak on, or, if you wish to speak during Call to Audience, please specify what you wish to discuss. Please step forward to the podium when the Mayor calls on you to address the Council. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by Council. You will only be allowed to address the Council one time regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During Call to Audience, you may address the Council on any matter that is not on the agenda. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public Hearing, please complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email you a link to the Zoom meeting the day of the meeting. After being recognized by the Mayor, staff will unmute your microphone access and you will have 3 minutes to address the Council. Further instructions regarding remote participation will be included in the email. Thank you for your cooperation.    Town Council Regular Session 1. Meeting Date:02/07/2024   Chief of Police Annual Performance Review Subject Pursuant to A.R.S. §38-431.03 (A)(1) and (A)(3) Personnel matter – Chief of Police annual performance review Summary Attachments No file(s) attached.    Town Council Regular Session 1. Meeting Date:02/07/2024   Requested by: Town Council Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: APPROVAL OF ANY DIRECTION TO THE TOWN ATTORNEY AND/OR NECESSARY STAFF AS DISCUSSED IN EXECUTIVE SESSION PERTAINING TO THE ANNUAL PERFORMANCE REVIEW OF THE CHIEF OF POLICE RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to... Attachments No file(s) attached.    Town Council Regular Session 1. Meeting Date:02/07/2024   Children's Museum Mid-year Update Subject Presentation and update from Children's Museum Executive Director Hilary Van Alsburg Summary This is an annual presentation for the Children's Museum as the Town contracts with the Museum for programming in the amount of $75,000. Attachments Annual Update for Oro Valley  Children's Museum Update August 2023  OV Children's Museum Presentation  7366 N Paseo Del Norte, Tucson, AZ 85704 | ph 520.297.8004 | www.childrensmuseumtucson.org Where Imagination and Learning Connect! Donor Update Children’s Museum Oro Valley Attendance FY 24 attendance to date • Tohono Chul Park: 13,989 • Free Chillin’ at the Chul: 1,753 • Free Community Outreach: 1,573 CMOV provided free programming during 17 Chillin’ at the Chul Summer evening events, HallOVeen Trunk or Treat and Oro Valley Festival of the Arts. 7366 N Paseo Del Norte, Tucson, AZ 85704 | ph 520.297.8004 | www.childrensmuseumtucson.org Where Imagination and Learning Connect! Funding Report Children’s Museum Oro Valley Attendance Fiscal Year 2016: 32,231 Fiscal Year 2017: 32,449 Fiscal Year 2018: 31,562 Fiscal Year 2019: 30,007 Fiscal Year 2022: 19,103 Fiscal Year 2023: 35,38* *Attendance since opening CMOV at Tohono Chul Park: 23,151 Storytime at CMOV at Tohono Chul Park welcomed 1,646 children and families since January Since July 2022 CMOV has held 10 free admission days and 5 free afterhours events More than 35,380 visitors in FY 2023 More than 23,000 visitors in first 6 months at Tohono Chul More than 1,800 people served through community outreach New partnership benefits both 35% increase in visitors to Tohono Chul in first 6 months 10-fold increase in visitors to TC younger than 5 33 free days and events 2,800 visitors at CMOV free days and Chillin at the Chul Continuing partnership each summer Programming complements existing Tohono Chul programs Story Time Nature Based Play/Movement Creative Activity Outdoor exhibits encourage nature play Clay Studio Mud Kitchen Water Table Outdoor Art Studio Build Space Book Nook Meditation Garden Fairy Land Looking forward: Expanding age groups up to 10 years old Renewing programs and exhibits Collaborating on community engagement    Town Council Regular Session 2. Meeting Date:02/07/2024   2023 YVOF Progress Report Subject Presentation regarding the Town's progress implementing the Your Voice, Our Future General Plan   Summary The Town's progress on implementing the Your Voice, Our Future General Plan is very significant. Since it was voter approved in 2016, 96% of the 310 actions have been completed, maintained or prioritized through a strategic plan to be completed soon. There is only one more strategic plan cycle remaining to accomplish the 12 remaining actions. The promise to the community was to address all actions within 10 years. The General Plan is a community-driven, long-range policy document that guides town decisions. This 10-year action plan reflects the community's vision, values and goals for public safety, housing, environment, recreation, water use, economic development and more. To ensure the community's vision becomes a reality, it also includes measurable actions for implementation over 10 years. Per the General Plan (see image to the right), the strategic plan is the primary avenue to prioritize and ensure all the actions are completed. Since 2016, there have been 4 strategic plans based on this general plan. Only 1 strategic plan is remaining to provide further guidance and allocate resources to complete the remaining actions. The Your Voice, Our Future (YVOF) General Plan was ratified by 71% of the voters in 2016. Extensive public outreach was conducted over a three-year period to produce a plan that resonated with the community and has remained relevant over time. It includes 310 measurable action items that are prioritized every two (2) years through the town's strategic plan.  Progress on implementing the 2016 YVOF General Plan This annual progress report is not only required by State law but also serves as a commitment to Oro Valley residents to provide transparency and deliver on the promises made during that three-year outreach period. Of the 310 total actions, 270 were completed or maintained between 2016-2022. Of the remaining 40 active items, 7 were completed or maintained and 21 are actively being worked on. The full 2023 progress report is in Attachment 1. Some notable accomplishments and upcoming projects include: 1) Recent accomplishments (notated as complete or maintained in Attachment 1)  Completion of a Public Art Maintenance Plan to service art owned by the Town.  Approval of the recreation area code amendment to achieve more meaningful private recreation areas in subdivisions, multifamily or mixed-use developments. Publication of the Oro Valley Housing Study, completed by Elliot D. Pollack & Company and WestGroup Research. The housing study provides pertinent information to help the community establish their housing goals and policies for the next 10 years. 2) Projects underway (notated as in progress in Attachment 1)  2) Projects underway (notated as in progress in Attachment 1)  Ongoing work to revitalize the Oro Valley Marketplace. Updates to the lighting code and design standards are anticipated for Commission consideration in 2024. A Trails Master Plan and Transportation Improvement Plan, both of which are included in the town's current strategic plan. Information from the public about roadways, bicycle and pedestrian connectivity, and trails will be collected through OV's Path Forward, which is the community's next 10-year plan.  There are 12 actions recommended for a future strategic plan to provide further guidance and allocate resources to complete them. As this general plan nears the end of its 10-year lifespan, it is imperative the remaining 12 actions be included in the next strategic plan to provide further guidance and allocate resources for completion.This includes:  Create or expand the town's community gathering places and neighborhood-scale growth by introducing a mixed-use zoning district, form-based code (focuses on design rather than uses), transit-oriented development, or other code requirements (Actions 11, 128, 129A-C) Develop additional measures to encourage private property owners to assist in invasive species removal (Action 77) Development and execution of a plan to place interpretive elements related to cultural resources in town facilities (Action 101C) Offering partnerships and incentives to local businesses to promote energy efficiency (Actions 110) Reviewing, identifying and addressing town policies and ordinances that enhance renewable energy production, efficiency and conservation (Action 113A &B) Create or re-evaluate street design standards to increase traffic safety, neighborhood esthetics and more (Actions 147 &151) To date, 96% of the YVOF General Plan's 310 actions have been completed, maintained or are in progress to being completed. Relationship to OV's Path Forward While staff's goal is to complete the remaining 12 YVOF actions, work on the community's next 10-year plan, known as OV's Path Forward, is underway. Similar to the previous effort, a high-level of effective community engagement is critical to its success. A Community Engagement Plan, approved by the Town Council in March 2023, established the principles, tools and methods for involving all community members in this effort. Many of the successes from 2016 are being used, such as booths at businesses, schools, community events and more, along with some new opportunities that offer a higher degree of convenience. This includes an interactive website, www.OVPathForward.com, which has informative videos and opportunities to discuss topics with the community.  The results of this outreach process will update the community's vision and values. It will also help build the community's goals and priorities for several areas that are critical to maintaining a high quality of life in Oro Valley. This includes public safety, housing, water use, environment, recreation, economic development and more. All community members, especially residents, are strongly encouraged to lend their voice by sharing their ideas in the community or online at www.OVPathForward.com. The feedback gathered will help create actions that will be implemented between 2026-2036.  This progress report and the two subsequent reports (2024 & 2025) will help inform the next 10-year plan. Any remaining items that are still relevant to the community's vision and goals may be updated or transferred to OV's Path Forward.  Attachments ATTACHMENT 1 - 2023 YVOF PROGRESS REPORT  Staff Presentation  1 YOUR VOICE, OUR FUTURE GENERAL PLAN 2023 UPDATE BRIEF SUMMARY TOTAL ACTION ITEMS 2016-2022 SUMMARY Community actions (pg. 2) 123 Completed or Maintained Items 270 Environment actions (pg. 8) 116 Remaining items being worked on over the past year (in progress) 24 Development actions (pg. 11) 71 Remaining items recommended for a future SP (future items) 16 Total 310 Total 310 2023 UPDATE ON THE 40 REMAINING TASKS ACCOMPLISHMENTS SINCE 2016 Completed items +5 Total Accomplished (completed or maintained) 277 89% Maintained items +2 Remaining Items: In Progress 21 In Progress 21 7% Future items 12 Future items 12 4% General Plan 2016-2026 Strategic Leadership Plans Town Department Work Plans Staff Resources/ Annual Budget Purpose The Your Voice, Our Future General Plan was ratified by the voters in November 2016. The General Plan consists of the community ’s vision and goals for the Town and is used as a guide in long range decision- making. The General Plan is a long-range 10-year policy document designed to guide the Town through 2026. Implementing the General Plan The community ’s vision and guiding principles provided the foundation for the goals, policies, and actions in the General Plan. The 310 actions were established to fulfill the goals and policies and are intended to be somewhat flexible as priorities and resources shift. The actions are prioritized every two years through the Town Council’s Strategic Leadership Plan. These priorities are translated to individual Town Department Work Plans for implementation. As a commitment to the Town Council and Oro Valley residents, the following information provides an update on the remaining 40 items to complete from the General Plan. TOTAL TASKS CURRENTLY IN PROGRESS REMAINING TASKS TO EVALUATE OR COMPLETE IN THE FUTURE Key Points: • 96% of the action items are either complete, maintained or actively being worked on. • There are three more years to prioritize and direct resources towards completing or evaluating the remaining 12 items. 2 COMMUNITY ACTIONS SUMMARY FROM PREVIOUS YEARS (123 TASKS TOTAL) 2023 UPDATE ON THE 15 REMAINING TASKS ACCOMPLISHMENTS SINCE 2016 (90%) TASKS TO COMPLETE (10%) Completed 42 Completed +3 Total tasks completed 45 Total tasks currently in progress 11 Maintained 66 Maintained 0 In Progress 13 In Progress 11 Total tasks maintained through ongoing operations 66 Remaining tasks to evaluate or complete in the future 1 Future items 3 Future items 1 ECONOMIC DEVELOPMENT- REMAINING TASKS NO. TASK TIME DEPT. STATUS ASSOCIATED PROJECTS/PROGRAMS STRATEGIC PLAN 2022 2023 6 Create private and public sector partnerships and programs for use, beautification, art displays or publicity on underutilized or vacant employment and retail centers. Medium CED In Progress In Progress • Revised Master Development Plan for the Oro Marketplace – Town Council approved a three- phase plan for a community gathering area in November of 2023. o Phase 1 includes a total of 2.9 acres with a new multi-use path connecting Tangerine Road and the CDO Loop. This area includes parcourse stations, benches and an approximately 30,500 sf. private park. o Phase II includes additional amenities if apartments are built north of the Keg Restaurant. o Phase III is an expansive area dependent on a potential economic development agreement in the future. • Comprehensive Economic Development Strategy (CEDS) – The strategy, which was adopted by the Town Council in 2019 is currently being assessed for possible updates. 1.3.1 7 Develop strategies that promote a range of retail options, including regional- serving, neighborhood-serving Medium CED In Progress In Progress • Comprehensive Economic Development Strategy (CEDS) – The strategy, which was adopted by the Town Council in 2019 is currently being assessed for possible updates. 1.1.1 3 and pedestrian-oriented, at appropriate locations. • Retail Study – An RFP to conduct the retail study is being drafted. Staff anticipates the study being complete by April 2024. • Housing Study – The housing study was completed in November 2023. It includes the amount of retail spending and supportable retail demand associated with apartments and single-family homes. • Business Summit – The annual summit was held in January 2023 to understand the challenges and opportunities associated with operating a thriving business. Another summit will be held in 2024. COMPLETE COMMUNITY- REMAINING TASKS 10 Develop a plan for designating areas in Oro Valley that serve as the community’s gathering places and are envisioned to: C. Emphasize the pedestrian experience. Short CED, P&R, PW In Progress In Progress • Existing code requirements -All new public roadway projects require a multi-use path. All private developments must have pedestrian connectivity from roadways to entry points and courtyards/recreation areas. Recent examples include the pedestrian/bicycle trail near Greenock and the loop connection near the Oro Valley Hospital. • Update to the Town’s Design Principles and Standards – Anticipated for consideration by the Town Council in 2024. 11 Update existing Town programs, plans and regulations to create or expand Oro Valley’s community gathering places, such as: A. Development and zoning regulations to include new designations, such as mixed-use zoning. Medium CED Future Item Future Item • Existing code requirements - The neighborhood commercial (C-N) zoning district has standards for residential and commercial developments. • Evaluation and possible creation of a mixed-use zoning district is recommended for a future strategic plan to direct further resources needed to complete this task. 12 Develop public/private partnerships in order to create Medium CED, P&R, In Progress In Progress • Parks and Recreation Master Plan – Completed in May 2021. 4 synergy and achieve common goals and desired improvements for Oro Valley’s community gathering places. TM, I&T • IGA with Amphitheater Unified School District – Staff continues to communicate with the school district about opportunities for partnership. • Revised Master Development Plan for the Oro Marketplace – Town Council approved a three- phase plan for a community gathering area in November of 2023. o Phase 1 includes a total of 2.9 acres with a new multi-use path connecting Tangerine Road and the CDO Loop. This area includes parcourse stations, benches and an approximately 30,500 sf. private park. o Phase II includes additional amenities if apartments are built north of the Keg Restaurant. o Phase III is an expansive area dependent on a potential economic development agreement in the future. 13 Creating development review strategies for commercial and retail areas that encourage public spaces. Medium CED In Progress In Progress • Existing code requirement - The code requires public spaces (courtyards) for all non- residential projects. • Update to the Town’s Design Principles and Standards – Anticipated for consideration by the Town Council in 2024. 30 Continue support of the Town's Public Art Program by: A. Developing an inventory and maintenance program, including training for staff on correct maintenance procedures Medium CED In Progress Complete • Public and private art database for internal use completed in December 2021. • Public Art Maintenance Plan - A public art maintenance plan was completed in February 2023. Implementation of the maintenance plan was implemented in September with soliciting repair quotes for the Quail Trail at Naranja Park, Welcome Oro Valley Sign (north of Oracle Road) and the mosaic tile lizard and mural at the rest stop on Oracle and 1st Avenue. 4.3.3 37 Develop cooperative Short TM In Progress In Progress • IGA with Amphitheater Unified School District 5 agreements with public school districts, private and charter schools to share school facilities for arts, recreation and education purposes. P&R – Staff continues to communicate with the school district about opportunities for partnership. 39 Evaluate and address the Town’s community park system conditions and needs by: B. Developing and integrating strategies that address park shortages, preservation needs and safety upgrades into the Parks Master Plan. Medium P&R In Progress Complete • Recommendations to prioritize larger neighborhood area parks and amenities – Code amendments to prioritize larger neighborhood parks and more meaningful amenities were approved by Town Council in October 2023. 44 Develop a strategy to acquire property for larger recreational and community use of sufficient size and location that access can be shared equitably by multiple neighborhoods and all residents. Long CED, PW, F, P&R, TM In Progress Complete • Recommendations to prioritize larger neighborhood area parks and amenities – See details in #39. Completed in October 2023. 45 Review opportunities to repurpose land for small and neighborhood parks by acquiring land or partnering with local stakeholders and agencies. Long CED, F, P&R, TM In Progress In Progress • Recommendations to prioritize larger neighborhood area parks and amenities – See details in #39. Completed in October 2023. • Analysis of private and public golf courses – A Request for Proposal for Golf Management Services (El Conquistador Golf) was conducted in the spring of 2020. The contract was awarded to Indigo Golf, formerly Antares Golf. o A Request for Proposal to Lease the Pusch Ridge golf course was conducted last 2020/early 2021. No qualified bids were received. As a result, the Town Council directed staff to work with Indigo Golf to open Pusch Golf Course for three fiscal years (FY21/22, 22/23, 23/24). Staff will analyze the feasibility 6 of continuing golf operations and report findings to Town Council in the spring of 2024. o The Town of Oro Valley took ownership of the former Vistoso Golf Course in July 2022. Now programmed as a Vistoso Trails Nature Preserve, staff is in the process of developing a Master Plan with an anticipated approval in spring 2024. 46 Plan for future trail needs in the community by developing and adopting a trails plan that: A. Establishes long-term strategies for trail development, linkages, management and upkeep in cooperation with other local jurisdictions Medium CED, P&R Future Item In Progress • The process of inventorying and mapping existing trails is underway. Staff anticipates presenting the findings to the Parks and Recreation Advisory Board and Town Council in Fall 2024. B. Integrates with the Parks Master Plan and is periodically updated. Medium CED, P&R Future Item In Progress 47 Create procedures, including public and private contributions, for integrating signs into parks, trailheads, trails and linear bicycle paths and near natural areas that: B. Inform users of site information and regulations. Medium CED, P&R In Progress In Progress • Existing code requirement - Requires signs in all private parks and for public trails on private properties. Signs include information and rules/regulations. Trailheads and trails have signage that include the name of the location and wayfinding directional arrows. New trails added through development are required to provide wayfinding directional signage. • Update to the Town’s Design Principles and Standards – Anticipated for consideration by the Town Council in 2024. 7 PUBLIC FACILITES AND SERVICES –REMAINING TASKS 50 Develop a plan for long-term municipal facilities that considers overall community needs and growth and that addresses parking, facility expansion, satellite offices, central offices, maintenance and fueling facilities and operations. Medium PW, TM, I&T In Progress In Progress • Town-wide space and facilities need study– The planning evaluation for the Rooney Ranch property has been completed and is closed. • Staff have reassessed this effort to use the work completed to date but hire a consultant that will finish the town-wide space needs assessment without limiting it to certain departments or specific locations. The scope of work for this phase of the project is currently being established. 4.3.4 8 SONORAN DESERT RESOURCE- REMAINING TASKS NO. TASK TIME DEPT. STATUS ASSOCIATED PROJECTS/PROGRAMS STRATEGIC PLAN 2022 2023 72 Maintain and improve night sky visibility by: A. Updating regulations to incorporate new technologies and best practices that minimize light pollution. Short CED, PW In Progress In Progress • Lighting Code Amendment – A regional approach to updating lighting is in progress. Once complete, updates to the Town’s lighting code will be recommended. B. Adhering to regional dark- skies initiatives. Ongoing CED, PW In Progress In Progress 74 Develop and implement the Town’s Tree Master Plan, which considers the benefits of trees in relation to overall community welfare, while making plans for infrastructure, facilities, new development, and the conservation of Oro Valley's scenic views. Medium CED, PW, P&R Future Item In Progress • Further guidance was provided in the strategic plan to include 50 trees in 2024 as part of Oro Valley’s 50th Anniversary Celebration. The cost of materials and possibility for donations to secure 50 trees is being researched and evaluated. 5.1 77 Develop measures that encourage private property owners to assist in invasive species removal. Short CED Future Item Future Item • Invasive plant species are identified and removed during the development process. The Zoning Code also includes a list of prohibited species (Addendum E) available to the public. Additional ENVIRONMENT ACTIONS SUMMARY FROM PREVIOUS YEARS (116 TASKS TOTAL) 2023 UPDATE ON THE 11 REMAINING TASKS TOTAL ACCOMPLISHMENTS SINCE 2016 (92%) TASKS TO COMPLETE (8%) Completed 48 Completed/No Further Action +1 Total tasks completed or no further action 49 Total tasks currently in progress 4 Maintained 57 Maintained +1 In Progress 6 In Progress 4 Total tasks maintained through ongoing operations 58 Remaining tasks to evaluate or complete in the future 5 Future Items 7 Future Items 5 9 measures are recommended for a future strategic plan to direct further resources needed to complete this task. WATER CONSERVATION- REMAINING TASKS 82 Reduce dependence on, use and diminishing of the groundwater supply by: A. Exploring the expanded use of stormwater harvesting and recharge areas. Medium WU Future Item No further action • Stormwater harvesting is already occurring and required by code. There are no measurable benefits to the aquifer by expending resources to expand this area. Other water conservation methods that yield more substantial and measurable benefits, such as the Water Smart Program, have been implemented instead. 83 Expand infrastructure and facilities that provide for a diverse water supply portfolio, including Central Arizona Project water and the use of reclaimed water for irrigation and other purposes. Long WU In Progress In Progress • NWRRDS Expansion - The Water Utility is expanding, and the Northwest Recharge and Recovery Delivery System (NWRRDS) to allow for the delivery of additional CAP entitlements for use in the community. Independent NWRRDS reservoir and booster station construction began in July 2023. • Water Utility is assessing the feasibility of expanding the reclaimed water system to support turf irrigation currently being irrigated by groundwater. 4.2.3 CULTURAL RESOURCE- REMAINING TASKS 101 Preserve and share significant cultural resources of Oro Valley with the community by: Medium CED, P&R In Progress Maintained • Some oral histories have been recorded with the Town and the Oro Valley Historical Society. A. Collecting oral histories from key persons related to Oro Valley history. Medium 10 B. Creating and executing a plan for the placement of interpretive elements related to cultural resource sites in existing and planned Town facilities and properties with the assistance of outside funding. Medium CED, PW, P&R Future Item Future Item • This action is recommended for a future strategic plan to direct further resources needed to complete this task. CLEAN ENVIRONMENT- REMAINING TASKS 110 Promote sustainable practices in the private sector by: Medium CED, WU Future Item Future Item • This action is recommended for a future strategic plan to direct further resources needed to complete this task. C. Partnering with local businesses to create incentives for the education, purchase and/or installation of resource conservation products. 113 Promote energy efficiency by: A. Reviewing, identifying, and addressing Town policies and ordinances that enhance renewable energy production, efficiency, and conservation. Medium CED, PW Future Item Future Item • This action is recommended for a future strategic plan to direct further resources needed to complete this task. B. Assessing emerging renewable technologies for potential application in the community. Medium CED, PW Future Item Future Item • This action is recommended for a future strategic plan to direct further resources needed to complete this task. 11 DEVELOPMENT ACTIONS SUMMARY FROM PREVIOUS YEAR (71 TASKS TOTAL) 2023 UPDATE ON THE 14 REMAINING TASKS TOTAL ACCOMPLISHMENTS SINCE 2016 (83%) TASKS TO COMPLETE (17%) Completed 24 Completed +1 Total tasks completed 25 Total tasks currently in progress 6 Maintained 33 Maintained +1 In Progress 8 In Progress 6 Total tasks maintained through ongoing operations 34 Remaining tasks to evaluate or complete in the future 6 Future items 6 Future Items 6 LAND USE AND DESIGN- REMAINING TASKS NO. TASK TIME DEPT. STATUS ASSOCIATED PROJECTS/PROGRAMS STRATEGIC PLAN 2022 2023 125 Maintain the unique character of Oro Valley by studying and updating: B. Site design standards. Medium CED In Progress In Progress • Development Review Process Code Amendment - This code amendment was approved in October 2022 and included some new requirements for site design and compatibility. This includes requiring a Master Development Plan for large areas of land. • Update to the Town’s Design Principles and Standards – Anticipated for consideration by the Town Council in 2024. C. Land use regulations that define and incorporate effective compatibility standards. Medium CED In Progress In Progress D. Regulations that enable a variety of architectural colors and textures, especially for commercial, that integrate with the community and don’t emphasize sameness. Medium CED In Progress In Progress 128 Develop detailed planning for designated neighborhood-scale growth areas at prominent intersections. Long CED Future Item Future Item • This action is recommended for a future strategic plan to direct further resources needed to complete this task. 129 Create development standards, policies and provisions and make available in appropriate locations for: A. Form-based code. Long CED Future Item Future Item • This action is recommended for a future strategic plan to direct further resources needed to complete this task. 12 B. Transit-oriented development. Long CED Future Item Future Item C. Mixed-use zoning. Long CED Future Item Future Item 135 Respond to and plan for the present and future housing needs of the community, while considering changes in demographics and overall growth by: A. Conducting a housing inventory. B. Developing a housing plan, that addresses the needs of a diverse community. Medium Medium CED CED In Progress In Progress Complete In Progress • Housing Study – A housing study, which includes an inventory of Oro Valley’s existing units, was completed in November 2023. The housing study is being used to further conversations with the community to develop goals, policies, and actions in the next General Plan to address housing needs identified. C. Developing zoning strategies that implement the housing plan. Medium CED In Progress In Progress INFRASTRUCTURE- REMAINING TASKS 137 Develop a plan for new development and infrastructure that: A. Identifies funding methods and techniques. Medium PW, F, I&T In Progress In Progress • RTA Next – The Town continues to participate and support RTA Next. The Technical Management Committee’s recommendations are scheduled to be presented to the RTA Board as soon as the project list is finalized. The City of Tucson and CAC continue to submit options for the project list. • Stormwater improvements - actively seek and receive exterior funding from Pima County Regional Flood Control and federal grants. 4.1.2 141 Coordinate infrastructure expansion and future utility services in Innovation Park and other key employment and commerce sites. Ongoing CED In Progress Maintained • Fiber Optics Plan – provided to Town Council in 2022. • TEP Summit –discussed capacity to serve Innovation Park in October 2022. 13 • Water budget for economic development projects – ongoing discussions between CED and the Water Utility to discuss long-term water needs to support economic development. TRANSPORTATION/CIRCULATION- REMINAING TASKS 147 Create a complete streets design manual that considers means to calm traffic, traffic safety, neighborhood aesthetics, stormwater management, access management, public health, safety, and community vitality. Short CED, PW Future Item Future Item • Transportation Improvement Plan- This will be part of the Transportation Improvement Plan, which was prioritized through the strategic plan. Progress will be made over the next 2 years. 4.1.1 148 Complete long-range planning for the roadway network that addresses: • RTA Next – The Town continues to participate and support RTA Next. The Technical Management Committee’s recommendations are scheduled to be presented to the RTA Board as soon as the project list is finalized. The City of Tucson and CAC continue to submit options for the project list. 4.1.2 B. Future transportation needs, access and development on major roadways. Medium CED, PW In Progress In Progress 151 Re-evaluate roadway design standards, especially for arterial and collector roads, to include methods for: A. Reducing fuel consumption, congestion and the number of vehicles starts and stops. Medium PW, OVPD Future Item Future Item • Transportation Improvement Plan- This will be part of the Transportation Improvement Plan, which was prioritized through the strategic plan. Progress will be made over the next 2 years. 4.1.2. Department abbreviations: CED- Community and Economic Development Department OVPD- Oro Valley Police Department I&T- Innovation and Technology P&R- Parks and Recreation PW- Public Works TM- Town Manager’s Office WU- Water Utility F- Finance GRFD- Golder Ranch Fire District Your Voice, Our Future General Plan Annual Progress Report Town Council February 7, 2024 Your Voice, Our Future (YVOF) 96% of the 310 measurable action items are complete, maintained or prioritized for completion Importance Turns the community’s vision into reality 310 measurable action items created to produce tangible results and implement the goals and policies Major actions are prioritized every 2 years through the Town Council adopted strategic leadership plan To date, 96% of the 310 actions are either completed, maintained or anticipated for completion within the next year. 2023: 40 active actions 2023 YVOF Progress Report Complete or Maintained 277 since 2016 •7 in 2023 In Progress 21 total Remaining 12 total Notable accomplishments and ongoing work 7 actions completed or maintained and 21 actions in-progress through various projects, code amendments, process improvements and more. Public Art Maintenance Plan Completed Private Rec Area requirements Completed OV Housing Study Completed Oro Valley Marketplace In Progress Lighting and design standard updates In Progress Trails Master Plan and tree planting In Progress Town -wide space needs assessment In Progress RTA Next and Transportation Improvement Plan In Progress Remaining actions 12 actions for larger or complex projects requiring additional resources May be prioritized through the FY24/25-FY25/26 strategic plan based on: Community NeedsDirection and GuidanceFunding and Resources Cultural resources education Energy efficiency Invasive species removal Mixed -use zoning districts Form-based code Relationship to OV’s Path Forward Any remaining actions may be updated or transferred to OV’s Path Forward Everyone’s voice is needed to create the vision, goals and measurable actions for the next 10 years Summary and Next Steps Represents a commitment to the community To date, 96% of the 310 actions are completed, maintained or actively being pursued One more strategic plan will be based off this General Plan to possibly prioritize the 12 remaining items OV’s Path Forward Participation is fun, convenient and meaningful Online conversations or in the community Community-wide survey available through March 15 www.OVPathForward.com    Town Council Regular Session A. Meeting Date:02/07/2024   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - January 10, 2024 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve the following changes), the January 10, 2024 minutes.  Attachments 1-10-24 Draft Minutes  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION JANUARY 10, 2024 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 5:30 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 5:30 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember Absent:Joyce Jones-Ivey, Councilmember EXECUTIVE SESSION   1.Pursuant to A.R.S. §38-431.03 (A)(2) and (A)(3) - for discussion and consideration of records exempt from public inspection, the records to be discussed are the minutes from the following executive session: October 4, 2023 to determine if any executive session information has been disclosed and for legal advice related to any disclosure thereof       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to go into Executive Session at 5:31 p.m., pursuant to A.R.S. §38-431.03 (A)(2) and (A)(3) - for discussion and consideration of records exempt from public inspection, the records to be discussed are the minutes from the following executive session: October 4, 2023 to determine if any executive session information has been disclosed and for legal advice related to any disclosure thereof  Vote: 6 - 0 Carried    Mayor Winfield announced that the following staff would be joining Council in Executive Session: Town Manager Jeff Wilkins, Deputy Town Manager Chris Cornelison, Town Attorney Nathan Rothschild, Legal Services Director Tobin Sidles, and Town Clerk Mike Standish. Councilmember Jones-Ivey joined the meeting via Zoom.   1/10/24 Minutes, Oro Valley Town Council Regular Session 1 RESUME REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER    Mayor Winfield resumed the Regular Session at 6:14 p.m.   ROLL CALL    Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember (Attended via Zoom) Josh Nicolson, Councilmember Steve Solomon, Councilmember   7.DIRECTION TO TOWN ATTORNEY FROM EXECUTIVE SESSION       Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to move as directed in Executive Session.  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen   PLEDGE OF ALLEGIANCE    Mayor Winfield led the audience in the Pledge of Allegiance.   UPCOMING MEETING ANNOUNCEMENTS    Town Clerk Mike Standish announced the upcoming Town Meetings and the Oro Valley Path Forward Community Events.   MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS    Councilmember Greene reported that he and Mayor Winfield had met with the Oro Valley Boy and Girl Scout troops to help them achieve a merit badge for Town Government. Councilmember Greene reported that as a result of the renovations done at the Oro Valley Community and Recreation Center, the Senior Olympics would hold some of their events in Oro Valley. Councilmember Greene also reported that work on the elevator at the Community and Recreation Center had begun. Councilmember Jones-Ivey encouraged citizens to volunteer for Project Graduation and to attend or participate in their workdays and fundraisers.   TOWN MANAGER'S REPORT ON CURRENT EVENTS   1/10/24 Minutes, Oro Valley Town Council Regular Session 2  Town Manager Jeff Wilkins reported the following information: The Hopi Conference Room will be set up for overflow if needed for tonight's meeting attendees. The Town celebrates its 50th Anniversary this year with various interactive events. The Community and Recreation Center entrance is anticipated to be completed by October 24, 2024. The Public Works Department, in coordination with ADOT, has been working on a multi-use path that will run along the north side of the road. Public engagement for this project will start in February 2024. The Move Across 2 Ranges event had sold out.   ORDER OF BUSINESS    Mayor Winfield reviewed the order of business and stated the order would stand as posted.   INFORMATIONAL ITEMS    There were no informational items.   CALL TO AUDIENCE    Oro Valley resident John McAlister spoke regarding his appreciation for Council and Town staff, for their service to the Town. Oro Valley resident Sue Dugan spoke regarding animal care services in Oro Valley. Mayor Winfield requested that Town Manager Jeff Wilkins provide a report to Council on the animal care services that have been contracted with Pima County, and how the Town might augment those services.   PRESENTATIONS   1.Presentation and possible discussion of the Town's Annual Comprehensive Financial Report and Single Audit for Fiscal Year ending June 30, 2023       Chief Financial Officer Dave Gephart provided an overview of the Town's Annual Comprehensive Financial Report and Single Audit for Fiscal Year ending June 30, 2023. Mr. Brian Hemmerle and Ms. Noemi Barter from Baker Tilly, continued the presentation and included the following: Executive summary Our responsibilities Required communications Nonattest services Communications with Town Council and Management Discussion ensued amongst Council, staff, and Mr. Hemmerle regarding presentation item #1.   2.Presentation and possible discussion of Town golf engagement performed by Baker Tilly      1/10/24 Minutes, Oro Valley Town Council Regular Session 3    Town Manager Jeff Wilkens provided a brief background of Presentation Item #2 and introduced Mr. Brian Hemmerle from Baker Tilly. Mr. Hemmerle presented item #2 and included the following: Executive summary Our responsibilities Agreed Upon Procedures Benford's Law results Ms. Noemi Barter of Baker Tilly, was available via Zoom to answer Council questions if needed. Discussion ensued amongst Council, Mr. Hemmerle and staff regarding presentation item #2.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to close the discussion on Presentation item #2.  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen    Motion by Vice-Mayor Melanie Barrett, seconded by Mayor Joseph C. Winfield to go directly to Regular Agenda item #1.  Vote: 7 - 0 Carried    Mayor Winfield stated that the Consent Agenda would be moved to the last item following the Regular agenda.   REGULAR AGENDA   1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION ON ORDINANCE NO. (O)24-01, REGARDING TWO APPLICATIONS RELATED TO THE PROPOSED DEVELOPMENT OF 88 SINGLE-STORY RENTAL UNITS ON AN APPROXIMATELY 8-ACRE PROPERTY LOCATED NEAR THE NORTHEAST INTERSECTION OF TANGERINE ROAD AND RANCHO VISTOSO BOULEVARD. THE TWO ITEMS INCLUDE: ITEM A: ORDINANCE NO. (O)24-01 RANCHO VISTOSO PLANNED AREA DEVELOPMENT (PAD) REZONING AMENDMENT FROM C-1 TO HIGH DENSITY RESIDENTIAL (HDR) ITEM B: ARCHITECTURE       Principal Planner Michael Spaeth presented item #1 and included the following: Purpose Location Map Avilla Rancho Vistoso Applicant's Proposal Background and Site History Item A: Rezoning - Zoning Transitions Item A: Rezoning continued - Commercial Viability Item A: Rezoning continued - Residential Density and Economic Potential Item A: PAD Amendment continued - Traffic and Access Item A: Rezoning continued: General Plan & Zoning Conformance Item B: Architecture Public Participation Summary and Recommendation 1/10/24 Minutes, Oro Valley Town Council Regular Session 4 Mr. Paul Oland with Paradigm Land Design, and representing the property owner and developer, and Mr. Mick Mathieu with Civ Tech Inc., continued the presentation and included the following: Concerns We've Heard: Access & Traffic Avilla Rancho Vistoso East and West - TIA Concerns We've Heard: Property Values, Safety & Crime Concerns We've Heard: "Renters" Concerns We've Heard: "Community Investment" Concerns We've Heard: Noise, Lights & Views Avilla Rancho Vistoso Concerns We've Heard: Commercial Viability Existing C-1 Commercial Zoning Concerns We've Heard; "Affordable Housing" General Plan Conformance areas Applicable General Plan Policy Conformance So, Why Should You Approve Avilla? Mayor Winfield recessed the meeting at 8:19 p.m. Mayor Winfield reconvened the meeting at 8:34 p.m. Mayor Winfield opened the public hearing. The following individuals spoke in support of item #1. Kristen Sharp, President and CEO of the Oro Valley Chamber of Commerce and Oro Valley resident Oro Valley resident Susan Swan Craig Finfrock The following individuals spoke in opposition of item #1. Oro Valley resident Bryon Barney Oro Valley resident Darlene Caproni Oro Valley resident Rick Bolash Oro Valley resident Joe Casey Oro Valley resident Frank Mayfield Oro Valley resident Shirl Lamonna Oro Valley resident Vickie Duprey Oro Valley resident Diane Mercer Oro Valley resident Kathy Shaheen Oro Valley resident Sharon Burns Oro Valley resident Gregg James Oro Valley resident Rosa Dailey Oro Valley resident Mark Nelson Oro Valley resident Patricia Howie Oro Valley resident Alfredo Benavides Oro Valley resident Eva Midobuche Oro Valley resident Billy Honomichl Oro Valley resident Janet Christopher Oro Valley resident Wayne Ilger Oro Valley resident John Swiencicki Oro Valley resident Henry Blicharz Oro Valley resident John Hutzler Oro Valley resident Ranna Patten-Carter Oro Valley resident Douglas McKinnon The following individuals spoke regarding item #1. 1/10/24 Minutes, Oro Valley Town Council Regular Session 5 Oro Valley resident Gayle Lopez Mayor Winfield closed the public hearing.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to deny Ordinance No. (O)24-01: the proposed Planned Area Development Rezoning Amendment, based on a finding that it does not conform with the General Plan or adequately address issues related to vehicular and pedestrian circulation. Discussion ensued amongst Council, staff, and Mr. Oland regarding item #1.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to deny Ordinance No. (O)24-01: the proposed Planned Area Development Rezoning Amendment, based on a finding that it does not conform with the General Plan or adequately address issues related to vehicular and pedestrian circulation.  Vote: 7 - 0 Carried   2.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION ON ORDINANCE NO. (O)24-02, REGARDING TWO APPLICATIONS RELATED TO THE PROPOSED DEVELOPMENT OF 119 ATTACHED AND DETACHED SINGLE-STORY RENTAL UNITS ON A 15.6-ACRE PROPERTY LOCATED NEAR THE NORTHWEST INTERSECTION OF TANGERINE ROAD AND RANCHO VISTOSO BOULEVARD. THE TWO APPLICATIONS INCLUDE: ITEM A: ORDINANCE NO. (O)24-02 RANCHO VISTOSO PLANNED AREA DEVELOPMENT (PAD) AMENDMENT REZONING FROM C-1 TO HIGH DENSITY RESIDENTIAL (HDR) ITEM B: ARCHITECTURE       Mr. Paul Oland with Paradigm Land Design, and representing the applicant, withdrew the application. No action was taken on this item.    Mayor Winfield recessed the meeting at 10:25 p.m. Mayor Winfield reconvened the meeting at 10:32 p.m.   3.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR A SERIES 12 (RESTAURANT) LIQUOR LICENSE FOR GMG CHINESE BISTRO, LOCATED AT 10370 N. LA CANADA DRIVE, STE 190       Town Clerk Mike Standish provided the information for item #3. Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing.    Motion by Councilmember Harry Greene, seconded by Mayor Joseph C. Winfield to recommend approval of the issuance of a Series 12 Liquor License to the Arizona Department of Liquor Licenses and Control for Kong Lin Ni for GMG Chinese Bistro, located at 10370 N. La Canada Drive #190.  Vote: 7 - 0 Carried 1/10/24 Minutes, Oro Valley Town Council Regular Session 6   4.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING ORDINANCE NO. (O)24-03, A PROPOSED ZONING CODE AMENDMENT TO ENABLE MOBILE FOOD UNIT COURTS AS A CONDITIONAL USE IN COMMERCIAL DISTRICTS (CN, C-1, AND C-2) AND ESTABLISH ASSOCIATED DEVELOPMENT STANDARDS. AMENDMENTS INVOLVE CHAPTER 23, ZONING DISTRICTS; CHAPTER 25, USE REGULATIONS; CHAPTER 31, DEFINITIONS, AND OTHER RELATED CHAPTERS       Senior Planner Kyle Packer presented item #4 and included the following: Purpose Mobile Food Units - Background Goals of Proposed Code Amendment Research Feedback and Responses Proposed Code General Plan Compliance Summary and Recommendation Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing.    Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Harry Greene to approve Ordinance No. (O)24-03, the proposed Zoning Code Amendment to enable Mobile Food Unit Courts as a Conditional Use in commercial districts (CN, C-1, and C-2) and establish associated development standards, including amendments to Chapter 23, Zoning Districts; Chapter 25, Use Regulations; Chapter 31, Definitions, and other related chapters and ask that there be a provision added to ensure that there is adequate electricity at each site, and that in the event of a regional electrical outage, generators could be used in an emergency. Discussion ensued amongst Council and staff regarding item #4.    Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Harry Greene to approve Ordinance No. (O)24-03, the proposed Zoning Code Amendment to enable Mobile Food Unit Courts as a Conditional Use in commercial districts (CN, C-1, and C-2) and establish associated development standards, including amendments to Chapter 23, Zoning Districts; Chapter 25, Use Regulations; Chapter 31, Definitions, and other related chapters and ask that there be a provision added to ensure that there is adequate electricity at each site, and that in the event of a regional electrical outage, generators could be used in an emergency.  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen   5.RESOLUTION NO. (R)24-03, PRESENTATION, DISCUSSION, AND POSSIBLE ACTION REGARDING FUNDING FOR THE 50TH ANNIVERSARY PARADE AND EVENTS       Parks and Recreation Director Rosalyn Epting presented item #5 and included the following: 1/10/24 Minutes, Oro Valley Town Council Regular Session 7  Parks and Recreation Director Rosalyn Epting presented item #5 and included the following: Summary of October 4, 2023 Council Study Session 50th Anniversary Events & Other Items 50th Anniversary Parade Overview 50th Anniversary Parade Cost Breakdown 50th Anniversary Celebration Event Overview 50th Anniversary Celebration Event Cost Breakdown Options Planting 50 Trees Total Request for Parade, Celebration Event, & Trees Action Items Discussion ensued amongst Council and staff regarding item #5.    Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Joyce Jones-Ivey to approve option A for the event funding in the amount of $105,100. Discussion continued amongst Council and staff regarding item #5.    Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Joyce Jones-Ivey to approve option A for the event funding in the amount of $105,100.  Vote: 6 - 1 Carried  OPPOSED: Councilmember Steve Solomon    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to approve option B, to ride in individual golf carts, for the parade participation.  Vote: 7 - 0 Carried   6.DISCUSSION AND POSSIBLE ACTION TO CANCEL OR RESCHEDULE THE JANUARY 24, 2024 TOWN COUNCIL REGULAR MEETING       Town Manager Jeff Wilkens provided background information regarding item #6.    Motion by Councilmember Steve Solomon, seconded by Mayor Joseph C. Winfield to cancel the January 24, 2024, Town Council meeting and hold the next Regularly scheduled Council meeting on February 7, 2024. Discussion ensued amongst Council and staff regarding item #6.    Motion by Councilmember Steve Solomon, seconded by Mayor Joseph C. Winfield to cancel the January 24, 2024, Town Council meeting and hold the next Regularly scheduled Council meeting on February 7, 2024.  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen   CONSENT AGENDA    Councilmember Bohen requested that Consent items (A), (B) and (D) be removed from the Consent 1/10/24 Minutes, Oro Valley Town Council Regular Session 8  Councilmember Bohen requested that Consent items (A), (B) and (D) be removed from the Consent Agenda for discussion. Vice Mayor Barrett requested that Consent item (C) be removed from the Consent Agenda for discussion.   A.Minutes - December 6, 2023       Councilmember Bohen requested clarification regarding staff attendance requirements at Council meetings. Town Manager Jeff Wilkens clarified staff attendance requirements at Council meetings.    Motion by Councilmember Tim Bohen, seconded by Mayor Joseph C. Winfield to approve Consent Agenda item (A).  Vote: 7 - 0 Carried   B.Appointments to the Budget and Finance Commission, the Parks and Recreation Advisory Board, and the Planning and Zoning Commission       Councilmember Bohen requested clarification regarding the nomination and interview process of the Planning and Zoning Commission. Vice Mayor Barrett clarified the nomination and interview process for the Planning and Zoning Commission.    Motion by Vice-Mayor Melanie Barrett, seconded by Mayor Joseph C. Winfield to approve Consent Agenda item (B). Discussion ensued amongst Council and Staff regarding Consent Agenda item (B)    Motion by Vice-Mayor Melanie Barrett, seconded by Mayor Joseph C. Winfield to approve Consent Agenda item (B).  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen   C.Resolution No. (R)24-01, authorizing and approving modifications to the communications facilities site lease agreement with Verizon Communications, Inc. for 551 W. Lambert Lane       Vice Mayor Barrett requested clarification regarding the attachments relating to Consent Agenda item (C). Town Manager Jeff Wilkens clarified the attachments relating to Consent Agenda item (C).    Motion by Vice-Mayor Melanie Barrett, seconded by Mayor Joseph C. Winfield to approve Resolution No. (R)24-01, authorizing application for zoning and permitting approvals to modify the communications site at 551 W. Lambert Lane, subject to all documents attached to Consent Agenda item (C).  Vote: 7 - 0 Carried 1/10/24 Minutes, Oro Valley Town Council Regular Session 9   D.Resolution No. (R)24-02, approving an Intergovernmental Agreement (IGA) between the Arizona Department of Revenue and the Town of Oro Valley for the unified tax administration, collection, audit, and licensing of privilege and affiliated excise taxes, pursuant to Arizona Revised Statutes §42-6001, et seq       Councilmember Bohen requested clarification regarding the Intergovernmental Agreement for Consent Agenda item (D). Town staff provided clarification regarding the Intergovernmental Agreement for Consent Agenda item (D). Discussion ensued amongst Council and staff regarding Consent Agenda item (D).    Motion by Councilmember Steve Solomon, seconded by Vice-Mayor Melanie Barrett to approve Consent Agenda item (D).  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen   FUTURE AGENDA ITEMS    No future agenda items were requested.   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to adjourn the meeting at 11:35 p.m.  Vote: 7 - 0 Carried     _________________________________ Micehlle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 10th day of January 2024. I further certify that the meeting was duly called and held and that a quorum was present. _________________________________ Michael Standish, CMC Town Clerk 1/10/24 Minutes, Oro Valley Town Council Regular Session 10    Town Council Regular Session B. Meeting Date:02/07/2024   Requested by: Cherie Odeski Submitted By:Cherie Odeski, Town Manager's Office Department:Town Manager's Office SUBJECT: Resolution No. (R)24-04, approval of a utility easement for the sole purpose of providing additional power to expanded Verizon telecommunications site at 551 W. Lambert Lane RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: This is the corollary to the request for the increased equipment at this site brought before the Council at the January 10, 2023, meeting, which was approved. Tucson Electric Power needs to supply power to 551 W. Lambert Ln. for the communications tower and the associated equipment.  TEP will be installing and maintaining the underground infrastructure necessary to provide power to this site. The access required is located in the easement which was previously granted to Verizon Communications for this site. BACKGROUND OR DETAILED INFORMATION: On May 6, 2015, the Town granted Verizon Communications, Inc., permission to sublease the ground lease to American Tower Corporation and subsequently lease back a portion of the site located at 551 W. Lambert Ln. from American Tower Corporation. In addition, the Town granted permission to Verizon Communications, Inc., to make modifications to the communications facilities located within the Communications Site Lease Agreement. This request was approved on January 10, 2024.  Tucson Electric Power needs to supply power to 551 W. Lambert Ln. TEP will be installing and maintaining the underground infrastructure necessary to provide power to this site. The access required is located in the easement previously granted to Verizon Communications.   FISCAL IMPACT: Standard permit fee revenue. SUGGESTED MOTION: I MOVE to (approve/deny) Resolution No. (R)24-04, authorizing and approving the granting of a utility easement for the sole purpose of providing additional power to an expanded Verizon telecommunications site at 551 W. Lambert Lane. Attachments (R)24-04 Resolution  permit request  RESOLUTION NO. (R)24-04 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, GRANTING A UTILITY EASEMENT TO TUCSON ELECTRIC POWER (TEP) FOR THE COMMUNICATION FACLITY LOCATED AT 551 W. LAMBERT LN. TO ALLOW TEP TO INSTALL AND MAINTAIN THE INFRASTRUCTURE NECESSARY TO PROVIDE POWER TO THIS SITE; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, the Town desires to grant a utility easement to Tucson Electric Power, so that power may be provided to the Communication Facility located at 551 W. Lambert Ln.; and WHEREAS, the Town owns the property that the Communication Facility is on and is currently leasing it to Verizon Communications, Inc.; and WHEREAS, in order to provide power to the Communication Facility, Tucson Electric Power (TEP) requires a utility easement allowing them access to the property to install and maintain the necessary infrastructure; and WHEREAS, it is in the best interest of the Town to grant the Easement, attached here to as Exhibit “A”, to TEP so that they may access the property located at 551 W. Lambert Ln. and install and maintain the necessary infrastructure to provide power for the Communication Facility. NOW, THEREFORE, BE IT RESOLVED by the Mayor and the Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Town of Oro Valley hereby grants the Easement, attached here to as Exhibit “A”, to TEP so that they may access the property located at 551 W. Lambert Ln. and install and maintain the necessary infrastructure to provide power for the Communication Facility. SECTION 2. That the Mayor of the Town of Oro Valley is hereby authorized to execute the Easement, attached here to as Exhibit “A”. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Resolution or the Easement, attached hereto as Exhibit “A”, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. All Oro Valley resolutions or motions and parts of resolutions or motions of the Council in conflict with the provision of this Resolution are hereby repealed. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7th day of February, 2024. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” W. O. # T33615 Easement, Page 1 of 2 VERIZON WIRELESS SITE UPGRADE 551 W LAMBERT LN, CE REVISED JAN 2016 UTILITY EASEMENT TOWN OF ORO VALLEY, ARIZONA, A Political Subdivision of the State of Arizona (hereinafter referred to as "Grantor"), hereby grants to Tucson Electric Power Company, an Arizona corporation, its successors and assigns (hereinafter referred to as "Grantee"), for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, a perpetual non-exclusive easement and right-of-way to construct, use, maintain, operate, alter, add to, repair, replace, reconstruct, inspect and remove at any time and from time to time electric lines and appurtenant facilities for the transmission and distribution of electricity, consisting of wires, underground conduits, cables, vaults, manholes, handholes, and including above-ground enclosures, markers, concrete pads, risers, poles, anchors, guy wires and other appurtenant fixtures and equipment necessary or useful for distributing electrical energy (the “Facilities”), in, over, under, across and along that certain real property described as follows (the “Easement”): SEE EXHIBIT "A" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. Grantor further conveys to Grantee, for purposes of ingress and egress to the Easement, a right of access over, upon or along Grantor’s property as is reasonably necessary to access the Easement. Grantee shall repair any damage to Grantor’s property that results from any such ingress or egress. Grantor agrees for itself, its successors and assigns, not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, landscaping, earth fill, walls or fences upon the Easement that would impair the repair, maintenance or removal of any or all of the Facilities. All Facilities, including electrical installed by Grantee in and upon the Easement, shall remain the personal property of the Grantee and shall not be deemed a part of the realty. Grantee and its contractors, agents and employees shall have the right to trim or top such trees and to cut such roots and remove such obstacles that could endanger or interfere with the Facilities, and shall have free access to the Facilities at all times for the purpose of exercising the rights herein granted. Grantee shall have the right during initial construction of the Facilities, to use for the purposes incidental to said construction, a strip of land 10 feet in width adjacent and contiguous to the Easement, said strip to be in whole or in part on each side of the Easement, said right to use said strip of land ceasing and being terminated at such time as said initial construction is completed. Grantor shall not increase or decrease the ground surface elevation within the boundaries of the Easement after approved final grade is established and meets Grantee’s construction standards. Subsequent to the construction, the ground surface shall not be penetrated to a depth in excess of 12 inches by any tool or implement, without having the underground facilities located and taking all necessary precautions to protect them. If subsequent to construction Grantor changes the grade in such a way as to require relocation or alteration of the Facilities, the cost shall be borne by Grantor or subsequent owners. Grantor hereby agrees that these covenants are made for the herein-described real property which is the subject of this Easement. Grantor hereby warrants and represents, and acknowledges Grantee’s reliance upon said warranty and representation, that Grantor has good and sufficient title to the real property in order to grant this Easement. W. O. # T33615 Easement, Page 2 of 2 VERIZON WIRELESS SITE UPGRADE 551 W LAMBERT LN, CE REVISED JAN 2016 In consideration of the mutual terms, covenants and conditions herein contained, this easement shall be binding upon and inure to benefit of any heirs, executors, administrators, permittees, licensees, agents, or assigns of Grantor and any successors and assigns of Grantee. In witness hereof, the Grantor has executed these presents this day of , 2023. Town of Oro Valley, Arizona, A Political Subdivision of the State of Arizona SIGNATURE PRINTED NAME TITLE STATE OF ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2023, by as for Town of Oro Valley, Arizona, A Political Subdivision of the State of Arizona. Notary Public Title: Project #: Date: Scale: Page: DESCRIPTION 090061385 10/20/23 EXHIBIT "A" DESCRIPTION FOR AN EASEMENT FOR UNDERGROUND UTILITIES, BEING IN BLOCK 2 OF THE SUBDIVISION VISTA DEL ORO I, IN SECTIONS 11, 12, AND 13, TOWNSHIP 12 SOUTH, RANGE 13 EAST OF PIMA COUNTY, STATE OF ARIZONA ROYEVRDat e Signed . O N ETACIFITREC U S DNALDERETSIGER44007 RYAN L. FIDLER .A ..U,AN SZI AR O jsultzbach@com-serv.comjsultzbach@com-serv.com N/A 1 OF 5 A 10.00 FOOT WIDE STRIP OF LAND FOR UNDERGROUND UTILITIES, BEING IN THE PROPERTY DESCRIBED IN THE WARRANTY DEED RECORDED AT SEQUENCE NO. 96159837 OF PIMA COUNTY RECORDS, STATE OF ARIZONA, RECORDED IN THE OFFICE OF THE CLERK OF SAID COUNTY ON SEPTEMBER 19, 1996, SAID PROPERTY BEING A PORTION OF BLOCK 2 OF THE SUBDIVISION VISTA DEL ORO I AS RECORDED IN BOOK 35, PAGE 94 OF MAPS AND PLATS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A BRASS CAP FLUSH LOCATED AT THE INTERSECTION OF WEST LAMBERT LANE AND NORTH HIGHLAND DRIVE, FROM WHICH A BRASS CAP FLUSH BEARS SOUTH 85°06'01" WEST, A DISTANCE OF 426.35 (BASIS OF BEARING); THENCE ALONG THE CENTERLINE OF SAID LAMBERT LANE SOUTH 85°06'01" WEST, A DISTANCE OF 219.92 FEET; THENCE DEPARTING SAID CENTERLINE SOUTH 00°00'00" EAST, A DISTANCE OF 75.28 FEET TO THE NORTHEAST CORNER OF SAID BLOCK; THENCE ALONG THE WEST LINE OF SAID BLOCK SOUTH 31°46'00" EAST, A DISTANCE OF 512.37 FEET; THENCE SOUTH 85°49'47" WEST, A DISTANCE OF 261.33 FEET TO A POINT ON THE WEST LINE OF THE UTILITY EASEMENT DESCRIBED IN DOCKET 12119, PAGE 4554 OF PIMA COUNTY RECORDS, ALSO BEING THE POINT OF BEGINNING; THENCE ALONG SAID LINE SOUTH 01°05'41" WEST, A DISTANCE OF 17.80 FEET; THENCE CONTINUING ALONG SAID LINE SOUTH 09°17'42" WEST, A DISTANCE OF 19.93 FEET; THENCE DEPARTING SAID LINE NORTH 80°42'18" WEST, A DISTANCE OF 10.00 FEET; THENCE NORTH 09°17'42" EAST, A DISTANCE OF 19.22 FEET; THENCE NORTH 01°05'41" EAST, A DISTANCE OF 17.08 FEET; THENCE SOUTH 88°54'19" EAST, A DISTANCE OF 10.00 FEET TO THE POINT OF BEGINNING. CONTAINING 370 SQUARE FEET, MORE OR LESS. LEGEND BRASS CAP FLUSH (BCFL) PROPERTY LINE CENTERLINE EASEMENT LINE POINT OF BEGINNING POINT OF COMMENCEMENT POB POC RIGHT-OF-WAYR/W ASSESSORS PARCEL NUMBERAPN EXISTINGEX Title: Project #: Date: Scale: Page: EXHIBIT 090061385 10/20/23 EXHIBIT "B"ROYEVRDat e Signed . O N ETACIFITREC U S DNALDERETSIGER44007 RYAN L. FIDLER .A ..U,AN SZI AR O jsultzbach@com-serv.comjsultzbach@com-serv.com N/A 2 OF 5 EXHIBIT FOR AN EASEMENT FOR UNDERGROUND UTILITIES, BEING IN BLOCK 2 OF THE SUBDIVISION VISTA DEL ORO I, IN SECTIONS 11, 12, AND 13, TOWNSHIP 12 SOUTH, RANGE 13 EAST OF PIMA COUNTY, STATE OF ARIZONA APN: 22427301B OWNER: TOWN OF ORO VALLEY DEED: SEQUENCE #96159837 WEST L A M B E R T L A N E EX 10' UTILITY EASEMENT (DOCKET 12119, PAGE 4554) L1L2 L3L4 S85° 06' 01"W 426.35'NORTH HIGHLANDS DRIVE(BASIS OF BEARING) 1" = 300' Title: Project #: Date: Scale: Page: EXHIBIT 090061385 10/20/23 EXHIBIT "B"ROYEVRDat e Signed . O N ETACIFITREC U S DNALDERETSIGER44007 RYAN L. FIDLER .A ..U,AN SZI AR O jsultzbach@com-serv.comjsultzbach@com-serv.com 1" = 300' 3 OF 5 P.O.C.; FOUND BCFL FOUND BCFL SEE PAGE 4 OF 5 EXHIBIT FOR AN EASEMENT FOR UNDERGROUND UTILITIES, BEING IN BLOCK 2 OF THE SUBDIVISION VISTA DEL ORO I, IN SECTIONS 11, 12, AND 13, TOWNSHIP 12 SOUTH, RANGE 13 EAST OF PIMA COUNTY, STATE OF ARIZONA APN: 22427301B OWNER: TOWN OF ORO VALLEY DEED: SEQUENCE #96159837 EX 10' UTILITY EASEMENT (DOCKET 12119, PAGE 4554) 10' UTILITY EASEMENT P.O.B. L4 L5L6L7L8L9 L10 1" = 10' Title: Project #: Date: Scale: Page: EXHIBIT 090061385 10/20/23 EXHIBIT "B"ROYEVRDat e Signed . O N ETACIFITREC U S DNALDERETSIGER44007 RYAN L. FIDLER .A ..U,AN SZI AR O jsultzbach@com-serv.comjsultzbach@com-serv.com 1" = 10' 4 OF 5 EXHIBIT FOR AN EASEMENT FOR UNDERGROUND UTILITIES, BEING IN BLOCK 2 OF THE SUBDIVISION VISTA DEL ORO I, IN SECTIONS 11, 12, AND 13, TOWNSHIP 12 SOUTH, RANGE 13 EAST OF PIMA COUNTY, STATE OF ARIZONA Title: Project #: Date: Scale: Page: EXHIBIT 090061385 10/20/23 EXHIBIT "B"ROYEVRDat e Signed . O N ETACIFITREC U S DNALDERETSIGER44007 RYAN L. FIDLER .A ..U,AN SZI AR O jsultzbach@com-serv.comjsultzbach@com-serv.com N/A 5 OF 5 EXHIBIT FOR AN EASEMENT FOR UNDERGROUND UTILITIES, BEING IN BLOCK 2 OF THE SUBDIVISION VISTA DEL ORO I, IN SECTIONS 11, 12, AND 13, TOWNSHIP 12 SOUTH, RANGE 13 EAST OF PIMA COUNTY, STATE OF ARIZONA LINE TABLE LINE L1 L2 L3 L4 L5 L6 L7 L8 L9 L10 LENGTH 219.92 75.28 512.37 261.33 17.80 19.93 10.00 19.22 17.08 10.00 BEARING S85° 06' 01"W S0° 00' 00"E S31° 46' 00"E S85° 49' 47"W S1° 05' 41"W S9° 17' 42"W N80° 42' 18"W N9° 17' 42"E N1° 05' 41"E S88° 54' 19"E    Town Council Regular Session 2. Meeting Date:02/07/2024   Submitted By:Karl Shaddock, Town Manager's Office Department:Town Manager's Office SUBJECT: PRESENTATION, DISCUSSION AND POSSIBLE ACTION REGARDING THE FEASIBILITY AND CAPITAL IMPROVEMENTS FOR OPERATING THE PUSCH RIDGE GOLF COURSE RECOMMENDATION: No recommendation. EXECUTIVE SUMMARY: The analysis includes an evaluation of the course as it is presently operated and provides the feasibility projection if assumed to be a continued golf course. The Town Council is not limited to actions of continuing the facility as a golf operation, and if it does decide to discontinue as a golf facility, then further research or review may be required by Town staff and/or consultants to bring back potential options. Discontinuation as a golf operation was not evaluated in this analysis. Activities completed to inform this analysis include multiple meetings among Town staff, golf course staff, and regular meetings with the Friends of Pusch Ridge Golf (FOPRG) and signatory HOAs to solicit input. The analysis team also completed a comprehensive tour of the facility and all its components, complete interviews with the Indigo Golf general manager and golf superintendent, and facility tours with Town Councilmembers.   BACKGROUND OR DETAILED INFORMATION: Town Council provided direction to staff over the course of two meetings in early 2021 regarding the continued operations of the Pusch Ridge Golf Course. Council approved the February 17, 2021, motion, "That the Town Council direct staff to return with a plan for operating the Pusch Ridge Golf Course to be evaluated within three years as to its continued feasibility, capital improvement requirements, while also looking at alternatives to look at water usage, potential new configurations and a third party lease." At the Town Council's March 3, 2021, Town Council meeting, staff presented a framework and timetable for the course that included action items such as:  Preparations and reopening the course Negotiating and finalizing an agreement with the surrounding 3 HOA's, to be approved by Town Council Researching, drafting and advertising a Request for Proposals to lease the course Analyzing course operations Developing turf/water reduction options, other operational improvements, market conditions and evaluate cost estimates Present options to Town Council While there would be ongoing monitoring of the Pusch Ridge Golf Course during its normal operation, at the end of both the first and second full year of seasonal operation, staff completed an analysis of the operations and current market conditions. Staff also worked with Indigo Golf in accordance with the Town’s contractual obligations to modify/adjust as appropriate. The annual reports also helped to inform opportunities to target research of options for continuing golf post-Year 3.  Under Item K. Research and develop turf/water reduction options of the 2021 Framework presented to Town Council, other operational improvements, market conditions & cost estimates/ROI, staff has looked at various areas to address these aspects. There was an increase in golf play during the COVID Pandemic, but it was unclear whether this level of play would be a sustained or temporary market change. The Town also would be shutting down each of its 18-hole golf courses in subsequent years, so staff was unsure of the impact to the Pusch Ridge Golf Course during those years as well. It will also allow for obtaining information from the Hilton/HSL regarding the resort’s recovery and likelihood that a financial contribution by HSL is feasible toward the operations, which HSL ultimately decided it would not lease the course. This timetable helped ensure the development of options and allow for a Town Council decision point to be done once, closer to the timing for an appropriation that can be incorporated into the FY23/24 budget, assuming the fund has capacity and Council were to approve the continued operations as a golf course. Regarding turf and/or water reductions, there are some opportunities mentioned in the Analysis (attached), for Town Council to consider. Please note on May 1, 2023, Town staff provided an assessment of engineering and costs estimated to bring reclaimed water to the Pusch Ridge Golf Course, per Town Council direction, which is also attached to this communication. Item M. Decision Point for post-Year 3 was intended to allow for Town Council direction to staff on the future of the Pusch 9 course so that the implementation can be incorporated in the FY 2024/25 budget (or beyond). Additional information included within attachments to inform Town Council, include: - An assessment and recommendations on the current condition of the Pusch Ridge course by Indigo's Director of Science and Agronomy, David Stout. Although Mr. Stout is unquestionably a knowledgeable and insightful golf course professional, it's crucial to acknowledge that his viewpoint may be subject to certain biases inherent in his role and profession. The Operational Analysis complements his analysis with input from internal experts and other experienced individuals to present a well-rounded view of the Pusch Ridge course, encompassing various insights that go beyond a single professional's perspective. - As part of the development of the Operational Analysis, the three homeowner associations that are making financial contributions to the course under a Council-directed agreement, along with the Friends of Pusch Ridge Golf, where asked to provide their input on what is working well, what ideas they have for improvement, and for capital project priorities. The full response for both groups is attached. - The Graffis Report is National Golf Foundation’s holistic state-of-industry overview for the 2022 calendar year. It compiles many key data points on the business of golf and the health of the game in a single publication. A few of these data points are cited in the Operational Analysis.   FISCAL IMPACT: Approximately $200,000 annually in capital expenses over the next 10 years. SUGGESTED MOTION: I MOVE to continue operating the Pusch Ridge Golf Course as a golf facility. OR I MOVE to discontinue golf operations of the Pusch Ridge Golf Course, effective ______, and direct staff to... Attachments Attachment 1  Attachment 2 -Response from HOAs and FOPRG for Input Regarding Pusch Ridge  Attachment 3  Attachment 4  Attachment 5  Staff Presentation  1 Pusch Ridge Operations Analysis 1 Analysis 1.1 Summary: This analysis includes a thorough review of the Pusch Ridge 9-Hole Golf Course (“Pusch Ridge”) operations and facilities on an ‘as-is’ basis, as well as an examination of the continued feasibility of the course and associated capital requirements. The analysis includes an evaluation of the system as it is presently operated and assumes continued operation as a golf facility. The Town can always consider outright closure of the golf course, although this would create a separate set of issues that would need to be reviewed and planned for, which are not considered in this analysis. The Pusch Ridge 9-Hole Golf Course is likely to be able to cover its operating expenses through its gross income. This is largely possible by strong annual numbers of golf rounds. Such a positive net operating income is made possible by a couple of key factors: 1. The course benefits from Indigo’s management and the associated economies of scale and shared resources that come from being part of a 45-hole golf operation. 2. The Friends of Pusch Ridge Golf (FOPRG) provide much assistance in sales, marketing, and organizing events, leagues, and a general sense of community at the course. This drives strong golf rounds numbers. The course’s operations do not cover capital expenses associated with the course. Regular capital expense items can largely be kept to around $150,000 annually. However, three large projects will likely be required in the next ten years and their associated estimated costs create spikes in capital expenditures: 1. Hole 7 bridge reconstruction; $318,270 anticipated in FY 2026 2. Cart path spot surface treatment and spray seal; $364,652 anticipated in FY 2028 3. Irrigation sleeving under roads; $210,153 anticipated in FY 2030 4. Pond bank stabilization/re-build; $517,505 anticipated in FY 2032 The Pusch Ridge 9-Hole Golf Course is irrigated using potable water. While some small reductions in water use can be found, there is no clear path to mitigating the course’s use of 30 to 40 million gallons of potable water annually. 2 1.2 Background 1.2.1 Policy History On February 17th, 2021, Council directed that “staff to return with a plan for operating the Pusch Ridge 9-Hole Golf Course (Pusch Ridge) to be evaluated within three years as to its continued feasibility, capital improvement requirements while also looking at alternatives to look at water usage, potential new configurations and a third-party lease.”. On March 3rd, 2021, staff presented to Council the Pusch Golf Major Action Framework and Recommended Timetable. Included within Item L of the Timetable was for staff to “present the potential options for course investment…” in January 2024. Mayor Winfield stated the majority of the Council was satisfied with the framework as presented and confirmed that the direction to staff was clear. With direction from Council, staff began preparations to reopen the course in November 2021, after having been closed since March 2020. This analysis includes a thorough review of the Pusch Ridge 9-Hole Golf Course (“Pusch Ridge”) plan of operations on an ‘as-is’ basis, as well as an examination of the continued feasibility of the course and associated capital requirements. Later sections of the analysis consider alternatives related to water usage, configuration, and management structure within the framework of assessing the feasibility of operations for the course. 1.2.2 History of Course In May 2015, the Town purchased the former El Conquistador Country Club (“El Conquistador”) from Hilton El Conquistador Golf and Tennis Resort (“Resort”). The acquisition included the following amenities:  45 holes of golf, driving range, maintenance facilities and pro-shops. Golf is comprised of two 18- hole courses (Conquistador and Cañada) and one 9-hole course (Pusch).  3,000 sq. ft maintenance facility (including cart storage area) at the Pusch Course. The Town contracted with a management company to provide golf, food and beverage, tennis, and swimming pool operations for the entire El Conquistador acquisition. In early 2019, Town Council tasked staff to further analyze and evaluate the Town’s golf course operations, with a desired outcome of reduced public subsidy and a long-term plan for the courses. In February 2020, Town Council entered a Memorandum of Understanding with the Resort, as the former owner, to exercise their option under the original purchase agreement to lease back the Pusch Course effective October 1, 2020. However, due to significant impacts of the coronavirus pandemic, the Resort notified the Town in late summer that it would be unable to take on the financial responsibility of the golf course. The Resort has expressed a willingness to consider some level of financial commitment towards supporting golf operations when their business is financially able. On February 17, 2021, the Town Council voted to operate and evaluate the Pusch Golf Course over the next three years to assess its continued feasibility and capital improvement requirements, look at 3 alternates for a reduction in water usage related to potential new course configurations and a lease with an outside lessee/operator. The Pusch Course is currently being managed by the Town’s contracted lessee/operator of the two 18-hole Conquistador and Cañada golf courses. Following direction from Council, staff conducted a competitive proposal process with the intent of seeking individual lessee/operators, joint venturers or firms who were interested in leasing and operating the Pusch Course. Under the proposed agreement, the lessee would be responsible for the day-to-day operation and management of the golf course, including, but not limited to, golf course maintenance, golf course operations, clubhouse operations, special events, promotion/marketing, and maintenance. The Town conducted a formal Request for Proposal in November 2021 and received no proposals from a responsible firm or team with demonstrated substantial experience in the operation and maintenance of golf courses and sufficient financial capability to operate and maintain the facilities. Ultimately, the Town was not successful in securing an outside operator. The Town’s golf facilities are currently operated via contract with Indigo Golf Management (“Indigo”), a nationally recognized golf management entity that has considerable experience in managing high quality golf facilities nationwide, including other clubs in the Tucson market area. Operation of Pusch Ridge was added to Indigo’s contract with the Town. In November 2021, Indigo began preparations to open the facility after being closed for 19 months. 1.2.3 Description of Course Originally conceived as an 18-hole course to serve the destination resort, legal battles and property disputes soon resulted in only nine holes being built. According to Jeff Hardin, the co-designer of the course, Pusch Ridge became an “orphaned” golf layout with no land on which to build a second nine holes. The resulting decision was to build an entirely new course further down on the slopes of the mountain, now the home to the El Conquistador 36-hole layout. Opened in the early 1980s, the course winds around the Hilton El Conquistador Resort and between patio homes. Distant views are dramatic, and even more so are views up to the Santa Catalina Mountains and the prominent Pusch Ridge feature. Design Pusch Ridge is an unusual 9-hole course in that it is generally a difficult layout with very tight and demanding holes. Most stand-alone 9-hole courses across the U.S. are typically easier layouts with many being well less than regulation par-36 designs. The par-35 design of Pusch Ridge is not for the faint at heart. Fairways are very narrow, lined with dense desert brush and are undulating. Elevated greens occur at five of the nine holes. The course plays to about 2,800 yards with some yardage flexibility from forward tees. Bunkering is sparse, but formidable - bunkers are deep and many require high recovery shots to reach the green. The course has dramatic views and, while technically walkable, is made difficult by the severe slopes and a few long spans between holes. Aside from a small practice putting green and hitting cages purchased by FOPRG, there are no practice facilities at the course. 4 It is noted that corridor widths of holes, while in some locations too narrow, are consistent with a course of this age. Design guidelines and golf use widths have increased over time, so it cannot be expected that older courses will have widths of golf corridors that match what would be required in recent times. Style and Course Description The Pusch Ridge golf course is a challenging and scenic 9-hole golf course incorporating unrivaled views of the Santa Catalina Mountains and dramatic elevation changes. Greens are Bermuda and over seeded with Poa Trivialis during winter months. The bunkers are very large and require both machine and hand maintenance. Edges are severely scalloped and require hand raking in many locations to complete bunker maintenance. The surrounds are severely sloped with noses and mounds that require careful maintenance. In large part, the course is a very simple design that was built minimally to take advantage of natural terrain and gradients. The water features, the bunkering and the changes in elevation create a dramatic and beautiful setting. Pusch Ridge Golf Course Acres: 47.05 Acres Total Grass Area: 36.6 Acres Turf/Rough Area: 25 Acres Greens Area: 1 Acre Fairway Area: 10 Acres Tee Box Area: 0.6 Acres Sand Trap Area: 0.1 Acres Food Concession Area There is currently no dedicated food or concession area at this location. Pro Shop The pro shop has a space for operations, space to display equipment inventory, restrooms, a front desk for point-of-sale transactions, limited food and beverage service including alcoholic beverages and a dedicated general storage space. Liquor License The liquor license for this property is currently held by Indigo Golf, the Town’s contracted golf operator for the Conquistador and Canada Courses. Indigo Golf is willing to surrender the license so that it would be available for the lessee/operator for the Pusch Course. Maintenance Facility The Maintenance Facility is a 3,000 sq. ft. building. Golf Cart Storage 5 The cart storage area is located within the maintenance building. The cart storage area provides stations for charging 28 electrical carts but may hold up to 40 carts. The Town installed new electrical service for the 28 cart charging stations. Irrigation System The Pusch Ridge course is irrigated with potable water as there is no available supply of effluent water. The irrigation system is old and simple. Water is pumped uphill from a small pond through a booster pump within the system. The single irrigation pond is reported to be soil sealed with no formal edge treatment. The irrigation system pump station is a Flowtronics system consisting of two (2) horizontal 75 HP variable speed pumps with a 10 HP jockey pump. The system is gravity fed. The pump station is in excellent condition. The irrigation control system consists of Toro Link system with radio-controlled irrigation capabilities. While the satellites appear to be in good working order, many stations are paired up on a single wire. While this allows basic functionality, this makes adjustability difficult. There is no weather station at this location. The Town has completed some irrigation replacement and repairs including to the pump system, as well as irrigation heads and valves. Water Usage-Water Allocation The Pusch Ridge Golf Course uses potable water provided by Oro Valley Water Utility. The use of reclaimed water is not available at this site. The Pusch Course is charged a fixed tier 1 potable water rate unless the water usage exceeds the Arizona Department of Water Resources allotment of 59 million gallons of water use annually. Fuel Tanks There are no fuel tanks at this location. Driving Range There is no driving range at this location. Friends of Pusch Ridge Golf (FOPRG), with help from the Town’s Public Works Department, has installed two (2) driving nets for golfers to warm up. 6 1.2.3.1 Indigo Assessment In August 2023, Indigo’s Director of Science & Agronomy, David Stout, prepared an assessment of the property through the lens of long-term sustainability. Below are highlights from that assessment. The full assessment can be found in the Appendix. Irrigation System: While the satellites appeared to be in good working order, it was discussed that many stations are paired up on a single wire. While this allows basic functionality, this makes adjustability difficult. Some components of the system are relatively new and are in great shape. The pump station looked to be in excellent condition and if maintained, should offer years of smooth operation. Putting Greens: The greens are maintained minimally during the summer closure; they are being maintained in an appropriate manner that will have them in good playing condition for the golf season in the fall. This is a sound strategy. More sand topdressing would make for enhanced playing conditions during the playing season. Bunkers: The bunkers are the weakest area of the course and require ongoing investment to keep them in acceptable condition. It would be recommended to remove as many of the bunkers as tolerable. Fairway and Rough Management: The fairways and rough are not maintained to playing conditions during the summer closure. Irrigating using the current potable source would be very costly and does not make financial sense in the current operation model. Further maintenance would require regular irrigation, which would come at a very large expense during a time of closure. Tees: The decision not to irrigate this turf saves millions of gallons of water per year and contributes to the ability to run the facility during the playing season. There has been no adverse effect on the overseed process, or the ability to produce high quality Ryegrass playing surfaces in the fall. 7 Water Features/Lake: The lake appears to be in need of additional maintenance. Cattails and other vegetation, in addition to algae can decrease water quality, and over time, can accumulate excessive organic matter and decrease the overall water holding capacity of the lakes. Additional devegetation around the lake edges would be recommended as well. Cart Paths: The cart paths were generally in good condition, and it appeared that there has been investment in recent years to protect them from deteriorating. Provided that there is an ongoing schedule for repair and seal coating, they should last as long as other courses that have asphalt paths. Equipment and Maintenance Facility: The equipment used to maintain the golf course could use some upgrades and additions. The shared use of equipment between Pusch Ridge and the other 36 holes of El Conquistador makes sense from an economy of scale perspective, but this means at times, some important cultural practices aren’t completed at the frequency they should. Sustainability and Financial Results: The Course operating calendar has created a very sustainable path forward. In the Desert Southwest, we have the unique scenario where our longest hours of daylight typically incur the highest operating expenses coupled with the lowest revenue generation; this is not the case for the majority of the country. Closing the course from mid-May through October has proven to be very wise. The savings in water from both a quantity and cost perspective are noteworthy and are a primary contributing factor as to why Pusch Ridge has a path forward where many courses in a similar situation may face a more difficult path. From an environmental sustainability perspective, this is simply a good story to tell. 1.2.3.2 Capital Investments and Major Repairs of Course and Facilities Since Council’s direction in February of 2021, the following capital investments have been made in the facility. FY 2021 - Irrigation system improvements: replacement of some sprinkler heads and repairs to the pump station - $15,842 - Pond services: pond treatment and cleanup - $4,700 - Gopher removal services - $7,709 - Cleanup of SE Corner of Oracle and El Conquistador Way - $14,310 FY 2022 8 - Pusch Ridge Booster Demolition: at the request of neighboring residents, demolition, and cleanup of unused structures within the pump station - $28,823 - Rehabilitation of Golf Cart Barn: primarily electrical infrastructure for cart charging - $19,828 - Tree trimming, removal, and planting: Tree trimming and removal to improve grass and playing conditions; tree planting to provide buffer for El Conquistador Way between holes 5 and 6 - $18,620 FY 2023 - Cart Path Resurfacing: Spot filing and surface treatment of cart path - $77,232 - Pusch Ridge Facility ADA and Code Compliance: Reconfiguration of the Pusch Ridge facility parking and pedestrian approach to meet or exceed ADA and code requirements - $142,000 - Pusch Facility ADA Access: Addressing a variety of accessibility issues within the clubhouse and surrounding area - $59,411 FY 2024 - Pusch Ridge Facility ADA and Code Compliance: Pusch Ridge Tennis Center restroom upgrade (utilized by golf operations) - $203,507 - Pusch Ridge Golf Course Improvements: releveling five tee boxes to improve playability - $59,530 1.3 Financial performance 1.3.1 Revenue The number of golf rounds played at Pusch Ridge has been strong and this has driven strong revenue numbers. The total U.S. average rounds per 18 holes for the 2022 season was 31,527 for public golf courses, with a figure closer to 35,000 for Arizona golf courses. This shows Pusch Ridge operating around the industry standard for a U.S. course, averaged to 9-holes. Nationally, there has a been a dramatic improvement in the overall financial health of U.S. golf facilities in recent years, a function of stabilizing participation, the closing of many lower-performing courses, and the added revenue generated by the surge in rounds played (NGF, 2023). The current financial condition of the course is on par with most public sector golf operations in the U.S., where 67 percent of municipal golf course operations can cover on-site expenses, but not able to cover both on-site expense and capital improvement (NGF, 2023). 9 Pusch Ridge 9-Hole Revenue, Actual and Projected Through FY 2024 Revenue Category FY 2022 Actual FY 2023 Actual % Change FY 2024 Projected % Change Golf Rounds 15,248 16,266 6.3% 18,000 9.6% Revenue Green Fees $299,097 $323,268 $370,000 Cart Fees $506 $235 $490 Golf Cards/Passes $19,783 Pro Shop Sales $14,231 $25,301 $27,000 Food & N/A Beverage $4,126 $4,464 $5,000 Alcohol $399 $18,092 $19,500 Other Golf Revenues* $6,208 $6,890 $11,000 Monthly Dues $13,750 $12,312 $14,000 Miscellaneous Income* $22,274 $26,363 $20,000 Total Revenue $380,374 $416,925 8.8% $466,990 10.7% Cost of Goods Pro Shop Sales $6,462 $15,167 $17,820 Food & N/A Beverage $1,097 $1,526 $7,350 Alcohol $120 $5,024 Total Cost of Goods $7,679 $21,717 64.6% $25,170 13.7% Gross Income $372,695 $395,208 5.7% $441,820 10.5%  Other Golf Revenues include club rentals, locker rentals and bag storage fees.  Miscellaneous Income includes event revenue from disc golf, weddings, etc. Green fee revenues account for 79 percent of all revenue at Pusch Ridge, whereas monthly membership dues account for only 3 percent of all revenue. When not accounting for discounts, the average weekend, peak-season green fee (with a cart) is $51 (NGF, 2023). This puts Pusch Ridge’s undiscounted, weekend green fee of $32 slightly out of market. However, the rise in rounds and contributing green fee increases are important factors in the improved financial health of the course. 1.3.2 Expenses The total expenses calculated here include the total cost of labor, maintenance and utilities, and other operational expenses. 10 Water utility costs dropped significantly for the FY 2023 year due almost exclusively to favorable weather and precipitation. Such savings are not expected to extend through FY 2024 and the loss of these costs savings largely accounts for the increased maintenance and utility expenses as well as the overall increase in total expenses. The cost of water to irrigate the course accounts for over one-third of all costs over the last full two years of operations. 11 Pusch Ridge 9-Hole Expenses, Actual and Projected Through FY 2024 Cost Type FY 2022 Actual FY 2023 Actual % Change FY 2024 Projected % Change Golf Rounds 15,248 16,266 6.3% 18,000 9.6% Labor Golf Operations Labor $38,696 $57,602 $62,793 Golf Course Maintenance Labor $43,471 $45,307 $47,000 Payroll Burden $5,039 $15,509 $9,981 Total Labor $87,206 $118,418 26.4% $119,774 1.1% Maintenance and Utilities Maintenance $37,459 $65,127 Utilities $155,559 $132,964 Total Maintenance and Utility $193,018 $198,091 2.6% $238,820 17.1% Other Operational Expenses Golf Operations $1,743 $4,190 $4,500 General and Administrative $9,124 $10,926 $12,995 Sales and Marketing $155 $2,163 $2,800 Leases, Taxes, and Insurance $20,778 $35,454 $35,236 Total Other Operational $31,800 $52,733 39.7% $55,531 5.0% Total Expenses $312,024 $369,242 15.5% $414,125 10.8% EBITDAR1 $60,673 $23,266 $27,695 Major Repairs and Improvements (Indigo) Golf Course Improvements (Tree trimming and removal; Tree planting) $18,620 Cart Path $27,500 Total Major Repairs and Improvements (Indigo) $18,620 $27,500 $0 Net Income $42,053 -$4,234 $27,695 The table above includes project expenses accrued by Indigo, which they categorize as capital expenses. Capital costs borne by the Town are detailed in the next section. 1EBITDAR represents earnings before deducting interest, taxes, depreciation, amortization, and rent. It is used to assess operating performance. 12 1.3.3 Budgeted Capital Improvements Capital investments in the course have already been summarized in earlier pages. In addition to those projects, two other large capital projects for Pusch Ridge were included in the FY 2024 Adopted Budget’s 10-Year Capital Improvement Program: - FY 2026: $275,000 for preservation of the golf course’s cart path. - FY 2027: $300,000 for erosion mitigation and bank protection improvements. 13 Pusch Ridge Golf Capital Improvements and Major Repairs - Actual and Projected in FY 2024 Budget Project FY 2021 Actual FY 2022 Actual FY 2023 Actual FY 2024 Projected FY 2025 Projected FY 2026 Projected FY 2027 Projected Irrigation System Improvement and Course Repair $42,561 Pusch 9 Pump Station Repairs $28,823 Pusch 9 Golf Cart Barn Repairs $19,828 Cart Path Resurfacing $77,232 Pusch Ridge Facility ADA and Code Compliance $142,000 $203,507 Pusch Facility ADA Access $59,411 Pusch Ridge Golf Course Improvements $59,530 Pusch Ridge Golf Course Pavement Preservation $275,000 Pusch Golf Course Pathway Bank Protection Improvements $300,000 Total Capital Expenses $42,561 $67,271 $278,643 $263,037 $0 $275,000 $300,000 14 In preparing this analysis, a detailed major repair and capital improvement program was developed for the Pusch Ridge 9-Hole facility and is detailed later in this report. 1.4 Usage Across the country, play remained strong throughout the 2022 and 2023 golf season, it paced more 11 percent above the 10-year rolling average (NGF, 2023). Rounds at Pusch Ridge started strong and continue to increase at a relatively high rate. Member rounds account for a small percentage (10.1 percent) of all rounds played. Pusch Ridge 9-Hole Rounds by Category, Actual and Projected Through FY 2024 Category FY 2022 Actual FY 2023 Actual % Change FY 2024 Projected % Change Rounds - Member 1,241 1,855 33.1% 1,900 2.4% Rounds - Outing 2,361 1,952 -21.0% 2,100 7.0% Rounds - Public 11,646 12,459 6.5% 14,000 11.0% Total 15,248 16,266 6.3% 18,000 9.6% 1.4.1 Usage by Sub-Category Indigo tracks specific sub-categories of rounds played at their point-of-sale system. These numbers are imperfect due to the challenge of accurately collecting full details at the point-of-sale system. For example, an Oro Valley resident may invite three friends who live in Marana to play. The Oro Valley golfer may pay the groups fee to be reimbursed later. In such a case, all four rounds would be categorized as OV Resident Riding rounds. Pusch Ridge 9-Hole Rounds by Sub-Category, Actual Through FY 2023 Sub-Category FY 2022 Actual FY 2023 Actual % of Total Public Riding 7,288 7,338 46.6% OV Resident Riding 2,381 2,391 15.2% Member 1,241 1,583 9.0% Neighborhood Outing 967 1,451 7.7% League Round Bundle 879 920 5.7% Comp Golf 713 876 5.1% OV Outing Round 573 1.8% Hotel Golf Package* 318 318 2.0% Hotel Riding 184 304 1.6% Public Junior 159 294 1.4% Member Guest 239 271 1.6% Public Walking 138 167 1.0% Neighborhood Riding 73 92 0.5% OV Resident Walking 51 35 0.3% Neighborhood Walking 73 0.2% Hotel Walking 8 33 0.1% Troon Card 3 6 0.0% Public Outing 3 0.0% Total 15,291 16,079 100.0% 15 *Hotel Golf Package includes 9-holes of golf, rental clubs, and a sleeve of balls for $45 per player. Over the first two full years of operations, Pusch Ridge saw only 505 walking rounds (public walking, OV resident walking, neighborhood walking, hotel walking). This represents 1.6 percent of all rounds played. Categorizing the rounds by sub-category into general geographic location of players suggests that many rounds played at Pusch Ridge are played by folks who live outside of Oro Valley. Pusch Ridge 9-Hole Rounds by Sub-Category, Actual Through FY 2023, By Player Location Sub-Category FY 2022 Actual FY 2023 Actual Public OV Residents Neighborhood Residents Public Riding 7,288 7,338 14,626 OV Resident Riding 2,381 2,391 4,772 Member 1,241 1,583 2,824 Neighborhood Outing 967 1,451 2,418 League Round Bundle 879 920 1,799 Comp Golf 713 876 1,589 OV Outing Round 573 573 Hotel Golf Package 318 318 636 Hotel Riding 184 304 488 Public Junior 159 294 453 Member Guest 239 271 510 Public Walking 138 167 305 Neighborhood Riding 73 92 165 OV Resident Walking 51 35 86 Neighborhood Walking 73 73 Hotel Walking 8 33 41 Troon Card 3 6 9 Public Outing 3 3 Total 15,291 16,079 18,150 10,564 2,656 16 1.4.2 Leagues and Events One of the keys to successful public golf operations and generating green fee revenue is the continued promotion and hosting of group activities such as leagues, outings, and tournaments. These activities are a key to maximizing rounds activity at public golf courses and there is strong correlation between an active calendar of organized events with strong economic performance. These events tend to stimulate activity and encourage repeat play, generating more rounds per golfer than without the event calendar. Current programs at Push Ridge include: • Pusch Ridge has several league playing opportunities for Men, Ladies, and couples. Most of the leagues at Pusch Ridge start in the morning and include a shotgun start; allowing for everyone to finish at the same time. o Monday: Monday Men’s Club 40-50 players weekly, morning shotgun o Tuesday: Lady Quails 30-40 players weekly, morning shotgun o Wednesday: Prickly Pairs couples’ event 40-50 players weekly, afternoon 3pm shotgun o Thursday: Pusch Ridge Ladies Club 30-40 players weekly, morning shogun • Pusch Ridge will play host periodically to local high schools for practice, PGA Junior League, and Pima Community College. • Free Green Fees for Juniors after 2:00pm with a paying adult. Pusch Ridge is a great place to learn the game or even “re-learn” the game if a golfer has been out of the game for a season or two. Juniors can play free after 2pm with a paying adult, promoting quality time on the golf course with families. • PGA Professional on site – On course playing lessons available for one on one, Juniors and couples. Putting and chipping lessons are also available. • Ten Dollar Wednesday Clinics – Every Wednesday (except the 1st Wednesday of each month) at 1:30pm. Clinic is for anyone interested in improving their golf game. Cost is $10 per person and the clinic runs for 30 to 40 minutes in length. 58% 34% 8% Pusch Ridge Rounds by Sub -Category, Player Location Public OV Residents Neighborhood Residents 17 During the FY 2023 fiscal year, Pusch Ridge played host to two disc golf events, including the Disc All Star event in February 2023. Pusch Ridge also hosted the PGA Jr. League Finals, two Oro Valley Chamber of Commerce Golf Tournaments, a Pusch Ridge High School golf match, and a 5K run for the International Doctors Alcohol Anonymous event in June. The Disc All Star event was the course’s most successful event. Taking place from February 15th – 19th, 2023, the event purchased all tee times over those days, resulting in $13,822 in revenue for the course. 1.4.3 Usage by Time Indigo was able to achieve high utilization of tee times at Pusch Ridge. A strong utilization average is between 50% - 65% per hour. Utilization data is important in setting fees and identifying time periods of revenue opportunities with leagues, events, and on course experiences. Pusch Ridge Rounds by Time by Month, Actuals Through FY 2023 Month 8-9 am 9-10 am 10-11 am 11 - 12pm 12-1 pm 1-2 pm 2-3 pm 3-4 pm Nov-21 X 89.3% 80.9% 69.3% 56.6% 83.3% 62.4% 38.6% Dec-21 X 78.6% 77.0% 72.3% 69.6% 57.8% 53.3% 26.4% Jan-22 X 94.2% 93.5% 93.7% 93.3% 84.8% 57.1% 41.1% Feb-22 83.8% 91.2% 89.1% 90.8% 89.0% 83.0% 73.6% 62.2% Mar-22 84.3% 87.9% 88.0% 86.4% 87.0% 84.7% 75.3% 67.2% Apr-22 87.8% 83.3% 84.6% 73.9% 66.4% 64.4% 57.3% 56.7% May-22 73.1% 55.4% 50.2% 34.8% 24.3% 29.2% 24.4% 41.5% Off-Season Nov-22 X 78.7% 68.3% 59.8% 61.1% 75.1% 69.1% 40.4% Dec-22 X 62.8% 42.8% 45.3% 49.7% 57.1% 46.1% 29.3% Jan-23 X 77.5% 66.9% 70.7% 70.0% 80.3% 70.1% 51.1% Feb-23 72.8% 73.4% 74.6% 76.6% 76.9% 87.6% 84.3% 62.0% Mar-23 78.7% 84.6% 86.7% 84.8% 88.3% 93.9% 91.3% 86.6% Apr-23 78.9% 78.4% 70.6% 55.9% 60.7% 76.3% 61.8% 72.4% May-23 66.4% 67.5% 58.6% 31.2% 31.8% 38.9% 40.9% 50.4% In reviewing data from the last two years of operations, we can see low utilization of the course later in the day in May and trends showing overall lower utilization as the weather warms up in April. Pusch Ridge Rounds by Time by Month Combined Actuals Through FY 2023 Month 8-9 am 9-10 am 10-11 am 11 - 12pm 12-1 pm 1-2 pm 2-3 pm 3-4 pm November x 84.0% 74.6% 64.6% 58.9% 79.2% 65.8% 39.5% December x 70.7% 59.9% 58.8% 59.7% 57.5% 49.7% 27.9% January x 85.9% 80.2% 82.2% 81.7% 82.6% 63.6% 46.1% February 78.3% 82.3% 81.9% 83.7% 83.0% 85.3% 79.0% 62.1% March 81.5% 86.3% 87.4% 85.6% 87.7% 89.3% 83.3% 76.9% April 83.4% 80.9% 77.6% 64.9% 63.6% 70.4% 59.6% 64.6% May 69.8% 61.5% 54.4% 33.0% 28.1% 34.1% 32.7% 46.0% The data shows a strong seasonality of the Pusch Ridge operation and suggests limited interest in summer golf outside of a few hours early in the morning. 18 1.4.4 Cart Usage The Pusch Ridge course has operated with 28 golf carts. With increased play, the average number of golf carts used per day was significantly above 28 carts, although there were very few incidents of golfers waiting for carts. Indigo was able to manage tee times and turn carts around multiple times in a day due to the quicker turnaround time of a 9-hole golf course. Pusch Ridge Golf Cart Average Use per Day by Month by Year Month 2021 2022 November 43 37.4 December 29.1 29.6 January 49.4 37.6 February 45.2 40.3 March 59.7 56.8 April 46.5 39.8 May 26.2 37.7 With increased play at Pusch Ridge, Indigo suggests increasing the course’s cart fleet by four carts up to thirty-two carts would be cost effective and offer a positive return on investment. 1.4.5 User Reviews A review of the major tee time booking and golf course review websites showed an overall strong impression of Pusch Ridge. The table below summarizes the three major review websites. It should be noted that most other booking websites refer to these major review websites (for example: teeoff.com and golfpass.com pull reviews from GolfNow; while supremegolf.com and barstool golf time pull from GolfDigest). Pusch Ridge User Reviews Site Rating (out of 5) # of Reviews GolfNow 4 467 GolfDigest 4 365 Google 4 64 A rating of four out of five on all three services represents strong performance. However, GolfNow allows for reviews to be categorized by time. In doing so, we see increasing ratings overall, especially in course conditions. 19 Pusch Ridge User Reviews by Sub-Category and Time Period Review Category Overall Last 12 Months Last 6 Months Overall Rating 4 4.2 4.6 Off-Course Amenities 3.3 3.5 3.8 Value 4.3 4.4 4.6 Pace of Play 4.2 4.1 4.5 Staff Friendliness 4.7 4.8 4.8 Course Layout 4.2 4.3 4.6 Course Conditions 3.8 4 4.6 1.5.6 Perception of Neighboring HOAs and Friends of Pusch Ridge Golf Over the last three years, a staff member from the Town Manager’s Office has been meeting every other week with a representative of FOPRG to share information, proactively address any issues on the course, and to simply maintain an open line of communication. FOPRG is a volunteer 501(c)(3) charitable organization open to anyone with an interest in increasing play and preserving and maintaining the Pusch Ridge Golf Course. The group heavily promotes Pusch Ridge, greatly assisting in the course’s sales and marketing efforts. Additionally, the group organizes the four leagues mentioned above, as well as hosts a number of events annually, including: - Cinco De Mayo Tourney (Spring) - First Tee of Tucson Golf Club Roundup (Spring) - Opening Tournament (Fall) - Hospitality Professional’s Open House (Fall) At the direction of the Town Manager and Mayor, a representative from each of the three neighboring Homeowner’s Association (HOA) was added to these regularly scheduled meetings beginning in November of 2023 to proactively discuss and identify any issues related to this evaluation. Per Council direction, the HOAs entered into a financial agreement towards the course maintenance and operations. Beginning in February 2022, the HOAs have annually contributed to the Town to continue operations of Pusch Ridge: El Conquistador Resort Patio Homes Association: $28,800 Shadows of the Ridge HOA #1: $1,950 Shadows of the Ridge: $3,300 Total $34,050 To aid in this analysis, each HOA and FOPRG were asked to provide their thoughts on what is working well, what are their ideas for improvement, and what capital projects would they prioritize over the next five years. The HOAs decided to collaborate and submit a single, combined response along with FOPRG. Full responses from both groups are within the appendix. In summary, both FOPRG and the HOAs were complimentary of where the course currently stands and cited Indigo as a strong partner in providing golf operations. 20 “Indigo Golf has been a great partner in fulfilling the expectations of the target markets for the golf course. The continued growth of play, customer satisfaction and price/value are exceeding all expectations… Indigo has established a consistency to the operation including guest services and the course’s physical product.” – FOPRG “Indigo, and the Town staff, have worked well with the HOAs and players to identify and address minor issues with the course, and have improved the course each year. The partnership between the Town and the HOAs has proven effective and HOA members are pleased with the current status and operation of the Pusch Course.” -HOAs 1.5 Financial Projections and Feasibility Indigo Golf developed five-year pro-forma in response to a request from the Town. Indigo Golf brings a wealth of experience and a proven track record in the golf industry. Additionally, Indigo Golf has valuable insights into the unique challenges and opportunities brought by the Pusch Ridge 9-Hole course, as well as municipal golf operations in Oro Valley in general. 1.5.1 Revenue Projections Revenue is expected to grow by around two percent per year, led by a gradual increase in golf rounds. 21 Pusch Ridge 9-Hole Revenue, Projected Through FY 2028 Revenue Category FY 2024 Projected % Change FY 2025 Projected % Change FY 2026 Projected % Change FY 2027 Projected % Change FY 2028 Projected % Change Golf Rounds 18,000 9.6% 18,680 3.6% 19,199 2.7% 19,391 1.0% 19,585 1.0% Revenue Green Fees $370,000 12.6% $379,250 2.4% $388,731 2.4% $396,506 2.0% $402,453 1.5% Cart Fees $490 $502 $512 $523 $533 Golf Cards/Passes Pro Shop Sales $27,000 $27,675 $28,229 $28,793 $29,369 Food & N/A Beverage $5,000 $5,125 $5,228 $5,332 $5,439 Alcohol $19,500 $20,183 $20,586 $20,998 $21,418 Other Golf Revenues $11,000 $11,330 $11,557 $11,788 $12,023 Monthly Dues $14,000 $14,560 $14,997 $15,297 $15,603 Miscellaneous Income $20,000 $20,400 $20,808 $21,224 $21,649 Total $466,990 10.7% $479,025 2.5% $490,647 2.4% $500,460 2.0% $508,487 1.6% Cost of Goods Pro Shop Sales $17,820 $18,266 $18,631 $19,003 $19,383 2.0% Food & N/A Beverage $7,350 $7,592 $7,744 $7,899 $8,057 2.0% Alcohol Total Cost of Goods Sold $25,170 13.7% $25,858 2.7% $26,375 2.0% $26,902 2.0% $27,440 2.0% Gross Income $441,820 10.5% $453,167 2.5% $464,272 2.4% $473,558 2.0% $481,047 1.6% 22 1.5.2 Expenses Expenses are predicted to grow in-line or slightly less than revenue, allowing for the course to continue covering operating expenses. Pusch Ridge 9-Hole Expenses, Projected Through FY 2028 Cost Type FY 2024 Projected % Change FY 2025 Projected % Change FY 2026 Projected % Change FY 2027 Projected % Change FY 2028 Projected % Change Golf Rounds 18,000 9.6% 18,680 3.8% 19,199 2.8% 19,391 1.0% 19,585 1.0% Labor Golf Operations Labor $62,793 $64,049 $65,330 $66,636 $67,969 Golf Course Maintenance Labor $47,000 $47,940 $48,419 $48,904 $49,393 Payroll Burden $9,981 $10,185 $10,297 $10,410 $10,525 Total Labor $119,774 1.1% $122,174 2.0% $124,046 1.5% $125,950 1.5% $127,887 1.5% Maintenance and Utilities Maintenance Utilities Total Maintenance and Utility $238,820 17.1% $254,445 6.1% $256,989 1.0% $259,559 1.0% $262,155 1.0% Other Operational Expenses Golf Operations $4,500 $4,635 $4,681 $4,728 $4,775 General and Administrative $12,995 $13,385 $17,719 $17,896 $18,075 Sales and Marketing $2,800 $2,884 $2,913 $2,942 $2,971 Leases, Taxes, and Insurance $35,236 $35,446 $35,518 $35,591 $35,664 Total Other Operational Expenses $55,531 5.0% $56,350 1.5% $60,831 7.4% $61,157 0.5% $61,485 0.5% Total Expenses $414,125 10.8% $432,969 4.4% $441,866 2.0% $446,666 1.1% $451,527 1.1% EBITDAR1 $27,695 $20,198 $22,406 $26,891 $29,519 1 EBITDAR represents earnings before deducting interest, taxes, depreciation, amortization, and rent. It is used to assess operating performance. 23 Water utility payments to irrigate the course are the primary driver of increased costs. To make these calculations, Indigo utilized the Oro Valley Water Utility’s proposed rate increases for a 4-inch meter at the Tier 1 consumption cost. Consumption Category FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Base Rate-4 Inch Meter 528.19 554.6 587.88 605.51 605.51 605.51 Tier 1 2.65 2.92 3.06 3.14 3.14 3.14 % Change 9.09% 4.76% 2.44% 0.00% 0.00% 1.5.3 Capital Improvement and Major Repairs To develop the list of potential capital projects, staff from Town Manager’s Office, Parks and Recreation, Public Works, Stormwater Utility, Water Utility, Community and Economic Development, and Innovation and Technology met with Indigo staff including the General Manager and Course Superintendent toured the facilities and course together to identify potential projects and needs. The list of projects was then analyzed by an internal, cross-departmental review of all project requests that were then prioritized with consideration for user safety, the preservation of Town assets, the maintenance or increase in service levels provided, and the community’s ability to pay for them in the most cost-effective manner possible. 24 Pusch Ridge Capital Improvements and Major Repairs Project Listing by Fiscal Year Project Budget Estimate (2024 Dollars) Ten-Year Spending (Adjusted Dollars) FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Pond bank stabilization/re-build $357,000 $517,405 $517,405 Cart path spot surface treatment and spray seal $300,000 $364,652 $364,652 Hole 7: Bridge replacement/modification $300,000 $318,270 $318,270 Irrigation system sleeving under roads $176,000 $210,153 $210,153 Non-course site maintenance $165,398 $15,000 $15,750 $16,538 $17,364 $18,233 $19,144 $20,101 $21,107 $22,162 Hole 9: Erosion remediation $257,000 $140,4151 $140,415 Equipment Replacement Program $108,973 $137,065 $10,897 $11,442 $12,014 $12,615 $13,246 $13,908 $14,603 $15,334 $16,100 $16,905 Cart Barn roof $70,000 $78,786 $78,786 Turf Reduction: PopUp sprinklers, labor, and beautification $70,000 $70,000 $70,000 Clubhouse and Cart Barn: Exterior paint and stucco repair $50,000 $54,636 $54,636 Cart Barn: Shade structure in maintenance yard $40,000 $41,200 $41,200 Hole 8: Install curbing for stormwater control $35,000 $37,132 $37,132 Clubhouse and Cart Barn: Electrical systems update $35,000 $37,132 $37,132 Extending fire service $25,000 $25,750 $25,750 Clubhouse: Internet infrastructure update $25,000 $25,000 $25,000 Clubhouse compliance updates $25,000 $25,000 $25,000 Cart Barn: Fence and gate for maintenance yard $20,000 $20,000 $20,000 Total $1,893,973 $2,267,994 $150,897 $485,926 $168,179 $527,226 $30,610 $242,294 $33,748 $552,840 $37,207 $39,067 1 Likely cost share 25 2 Alternatives Related to Water Usage, Configuration, and Management Structure 2.1 Water Usage The Pusch Ridge Golf Course uses potable water provided by Oro Valley Water Utility. The use of reclaimed water is not available at this site. The Pusch Course is charged a fixed tier 1 potable water rate unless the water usage exceeds the Arizona Department of Water Resources allotment of 59 million gallons of water use annually. In FY 2022, the course used over 39 million gallons of water. In FY 2023, the course used over 30 million gallons of water. Current water use spikes in October as the course is being prepared for play through overseeding and the associated heavy and repeated watering that is part of the process. Pusch Ridge Water Usage by Month Month FY 2022 FY 2023 FY 2024 July 2,864,000 230,000 3,466,000 August 1,533,000 121,000 3,568,000 September 2,483,000 609,000 2,517,000 October 10,382,000 10,473,000 12,390,000 November 4,045,000 2,706,000 4,948,000 December 1,641,000 1,105,000 2,384,000 January 940,000 204,000 February 2,630,000 1,227,000 March 3,529,000 2,671,000 April 5,007,000 5,900,000 May 3,214,000 2,977,000 June 1,397,000 2,181,000 Total 39,665,000 30,404,000 29,273,000 26 2.1.1 Capital Cost to Bring Reclaimed Water to Pusch Ridge In 2023, Town Council directed staff to estimate the construction costs to expand the reclaimed water system to serve Riverfront Park, the Pusch Ridge 9-Hole Golf Course and James D. Kriegh Park. Water Utility staff worked with a local firm that provides both engineering and construction services to develop cost estimates to determine the most feasible reclaimed water pipeline alignments, as well as cost estimates of the construction costs for those alignments. Two separate pipeline alignments were evaluated to serve Riverfront Park, the Pusch Ridge 9-hole golf course, and JDK Park. Alignments and costs for Pusch Ridge Golf Course and JDK Park assume reclaimed service to the other new areas (for example, JDK Park assumes a new reclaimed system delivered to Riverfront Park and Pusch Ridge Golf Course). The options were: Alignment A: • Service to Riverfront Park: o Construction: $4,109,950.00 o Engineering & Permitting: $493,194.00 o Contingency: $1,027,487.50 o Cumulative Total: $5,630,631.50 • Service to Pusch Ridge 9-Hole Golf Course: o Construction: $9,219,200.00 o Engineering & Permitting: $1,106,304.00 o Contingency: $2,304,800.00 o Cumulative Total: $12,630,304.00 Alignment B: 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Pusch Ridge Water Usage by Month FY 2022 FY 2023 FY 2024 27 • Service to Riverfront Park: o Construction: $4,231,350.00 o Engineering & Permitting: $507,762.00 o Contingency: $1,057,837.68 o Cumulative Total: $5,796,949.68 • Service to Pusch Ridge 9-Hole Golf Course: o Construction: $9,319,700.00 o Engineering & Permitting: $1,096,426.95 o Contingency: $2,329,925.40 o Cumulative Total: $12,746,052.35 While details differ, both potential routes to bring reclaimed water to the Pusch Ridge Course would cost well over $12 million. Examining only the segment dedicated to connecting Pusch Ridge (Segment 2) to a new segment required to bring reclaimed water to Riverfront Park (Segment 1) is estimated at over $5 million in direct costs in both scenarios. With engineering, permitting, construction management, and contingency costs factored in, both estimates exceed $6.7 million in total costs. The full study can be found in the Appendix. 2.1.2 Irrigated Turf Reduction Strategy The Pusch Ridge course is irrigated with potable water as there is no available supply of reclaimed water. The irrigation system remains operable but is old and simple. Water is pumped uphill from a small pond through a booster pump within the system. The booster pump was recently replaced and works well. Heads and controls are also older, and accuracy and coverage of irrigated areas is likely below industry standards. The single irrigation pond is reported to be soil sealed with no formal edge treatment. While the system does include some areas that have been patched together over the years, the overall system is in operable condition. Over the last two full years of operation, Indigo has spent just over $10,000 on average annually to perform irrigation repairs, lake maintenance, and pump repair. Improvements have been made in preparing the course for operations with capital projects, including significant irrigation improvements in FY 2021 ($15,842) and pump station repairs in FY 2022 ($28,823). Overall, the current irrigation system is aging but is still usefully operating. While a new irrigation system would allow for a complete rethinking of the course’s overall watering strategy, given the operable nature of the irrigation system, investment in a full new system is not warranted. Therefore, Indigo has designed an irrigated turf reduction strategy that will affect more than 9 percent of the total grass area without hurting the playability of the course. 28 The Pusch Ridge Golf Course has about 36 acres of total grass area. 11.6 acres of that is actively irrigated and managed. Actively irrigated areas include the greens, fairways, and tee boxes. Much of the remaining grass area is turf or rough that may benefit from some irrigated water flowing downhill but is not actively irrigated. Indigo’s General Manager and Golf Course Superintendent have identified actively irrigated areas of turf that could be reduced through the installation of popup irrigation heads that will improve the accuracy of the delivery of water. An example are the tee boxes at Hole 5 where the relatively small tee boxes are currently watered by larger irrigation heads that not only cover the tee boxes but also the adjoining turf areas. By installing smaller popup sprinkler heads that will irrigate only the tee boxes, Indigo can reduce the amount of water used without harming the playability of the hole. Overall, the turf reduction strategy is estimated to reduce current water use by a relatively marginal amount for a cost of $70,000 that will include the installation of new irrigation components and beautification for the areas that will be converted from turf. 2.2 Potential New Configurations In FY 2017, the Town contracted with the National Golf Foundation (NGF) to perform an assessment and provide recommendations for Town’s golf operations. Part of NGF’s recommendations included a full physical upgrade for the Pusch Ridge 9-Hole course, turning it into a 12-hole, par 3 course. NGF’s “Full Commitment” called for a complete transformation of the facility into a new golf experience. The “Dirty Dozen” concept envisioned spending $3.1 million for a complete redesign as a 12-hole course of all par-3 holes between 100 yards to 200 yards in length with the removal of current holes No. 5 and 6 for repurposing. The design called for the development of new tees, greens, and surrounds for nine holes, removal of holes 5 and 6 for conversion to non-golf parcels; as well as a new irrigation system with a newly sited reservoir and pump and the demolition and replacement of the maintenance facility. Given the nature of the proposed work, the increased costs in the construction market, and general inflation, the current price tag of such work is estimated to be drastically higher. For that investment, NGF estimated that the course may see 16,000 rounds played annually. Indigo was asked to comment on the current course configuration and offer any comments on reconfigurations that would offer an effective return on investment. In response, Indigo stated: “Based on current financials and market conditions, we do believe Pusch Ridge’s current setup is the best course of action. “Adding holes or reducing Pusch Ridge to a “par-3” golf course to save on turf and water would not be an effective ROI. The rough estimate to build a decent 18-hole golf course today is approximately $25 million or $1.4 million per hole. Adding three holes at $4.2M for a “Dirty Dozen” concept is not going to drive more rounds to Pusch Ridge and converting the course to a par-3 only course would reduce the 29 number of rounds we received annually, and the price point we offer would most likely need to be reduced in this concept and the water and turf saving would not make up the difference.” 2.3 Third-Party Lease Options On February 17, 2021, the Town Council voted to operate the Pusch golf course for three years provided the Town is not successful in leasing the course to an outside operator. The Town conducted a formal Request for Proposal in November 2021 and received one submittal. Ultimately, the Town was not successful in securing an outside operator. Indigo Sport began preparations to open the facility in November 2021 after being closed for 19 months. The Town of Oro Valley operates its golf facility through a fee-for-service management agreement with Indigo Golf, and direct oversight by the Parks and Recreation Director and Town Manager. In reviewing operations with a variety of stakeholders, ranging from the Town Manager to signatory HOAs and FOPRG, all agree that Indigo brings quality and professional management of golf operations to Pusch Ridge. In November of 2021, Town of Oro Valley conducted a competitive proposal process with the intent of seeking individual Lessee/Operators who are interested in leasing and operating the Town’s municipal Pusch Ridge 9-Hole Golf Course. The Request for Proposals (RFP) was flexible by design – allowing for an interested party to tailor their response in a way that would maximize their effectiveness and benefit (while still meeting the basic requirements of the Town). Town staff heavily promoted the RFP – sharing in all applicable forums, as well as making individual contact with every major player in the industry that we could. No single acceptable response was received. In reaching out to industry contacts in 2023, the environment has not changed dramatically since the last RFP was issued. While an outright lease of the facility would be an attractive option if the Town’s objectives in municipal golf were purely financial, and if a suitable partner could be found that would be willing to take on all operational risk or interested in bringing capital investments to complete some of the CIP projects identified. Currently, maintaining our relationship with Indigo is the best path forward for now. 30 3 Appendix 1. Reclaimed Water System Expansion Estimated Construction Costs- TC- CR- 5.1.2023 2. Pusch Ridge by David Stout 3. HOA Responses 4. FOPRG Responses 5. NGF The Graffis Report 2023 Joint Response from Supporting Homeowners Associations to Request for Input Regarding Pusch Ridge Golf Course Analysis December 15,2023 Introduction As part of an Agreement in 2021 between the Town of Oro Valley and the El Conquistador Resort Patio Homes Association,the Shadows of the Ridge Homeowners Association and the Shadows of the Ridge at El Conquistador Patio Homeowners Association (“HOAs”)to continue operating the Pusch Ridge Golf Course,Staff from the Town of Oro Valley is working with Indigo Golf to provide the Oro Valley Town Council with an “analysis of the continued feasibility, [and]capital improvement requirements ...for the Pusch Course ....”As part of the development of this analysis,Staff has invited the three HOAs that are making financial contributions under the Agreement,along with the Friends of Pusch Ridge Golf to provide their input.Staff is initially seeking input on three areas: A.What is working well? B.What are your ideas for improvement? C.What capital projects are a priority for your group over the next five years? This document contains the response from the three HOAs.The Friends of Pusch Ridge Golf will respond separately. Overview: Prior to addressing the three areas requested by Staff,the HOAs believe it is important to provide some general impressions regarding the first two years of the operation of the Pusch Course. There needs to be recognition of the efforts by the Town and Indigo Golf to make the Pusch Course a success.Following an exceptional resurrection of the course prior to reopening,in Golf Years 1 and 2,the Pusch Course has been operated and maintained well by Indigo Golf. Indigo,and the Town staff,have worked well with the HOAs and players to identify and address minor issues with the course,and have improved the course each year.The Pusch Course financials have reflected this success,exceeding expectations,with an operating profit,in both years.With these results,it is clear the Pusch Course,which showcases the beauty and majesty of the Pusch Ridge like no other Town owned facility,has reestablished itself as a unique 9 hole golf experience for players of all ages and abilities.Players of the Pusch Course have acknowledged their experience in playing the course,as reflected in the comments included in the Supplement to this Response. What is working well? ●The partnership between the Town and the HOAs has proven effective and HOA members are pleased with the current status and operation of the Pusch Course ●The presence of a functioning golf course helps resolve security and safety concerns of the surrounding neighborhoods that would otherwise exist if the Pusch Course was not open. ●The course’s success has resulted in the maintenance of historical trends of home values ●The marketing plan developed by the Friends of Pusch Ridge Golf has been successful, reflecting the private/public partnership between Friends of Pusch Ridge Golf and the Town is key to the success of Pusch Ridge ●There is consistent weekly player participation in multiple golf leagues ●There has been a growing awareness of the Pusch Course by visitors and people from throughout the greater Tucson community ●The variety of players has broadened to include members of all age groups and skill levels ●The Pusch Course is both the only the only practical 9 hole option and the only “walkable”public golf course in Oro Valley ●Indigo Golf has seen consistent advances in its operation of the course,including its interactions with patrons and maintenance of the course ●“Sponsor”businesses in Oro Valley have enjoyed increased business and community connections through their involvement in the course ●The Pusch Course serves as an added enhancement for guests who select the El Conquistador Hilton Resort for their business or vacation stays. ●The Pusch Course has met its promise to be Fast,Fun and Affordable and growing recognition as a unique and memorable golf experience in southern Arizona What are your ideas for improvement? It is difficult for the HOAs to address this request for input without a better understanding of the context in which it is asked.The question requires a clear understanding and picture of how the Town views the future for the Pusch Course.With that in mind,we provide the following: ●The Pusch Course should be seen as the jewel of the golf options available in Oro Valley.As such,efforts are needed to maintain this status and to market the course as the gem that it is,capitalizing on its unique views and as the only 9 hole golf experience in the area. ●There is a need for improved Town support for and involvement in marketing of the course. ●Enhance the quality of the operation and experience as an exceptional facility and not just a typical municipal course. ●The Town should explore opportunities to coordinate in marketing and promotion with the adjacent tennis facility ●Improve transparency of the Town’s expectations and plans for the Pusch Course, including financial performance and community value,as well as in accounting for how the HOA financial contributions are used ●Assess and evaluate opportunities for volunteer involvement by community members in the operation of the course. ●Financials should clearly account for how HOA contributions are spent and should not be used for improvement projects allocated for the course in the Town budget ●The Town and Indigo should continue efforts to maintain and enhance the desert areas on Town owned property between the course and the adjacent homes ●Expand the available golf season or consider “off season”uses that enhance golf skills, such as a practice range,in the areas adjacent to the pro shop. What capital projects are a priority for your group over the next five years? Because we do not have access to necessary financial or operational information,or the expertise to evaluate that information,the HOAs are not in a position to prioritize needed capital improvements to the facility or the property.We understand the complexity of developing a capital expenditure strategy that meets the demands of municipal budget development.We would welcome the opportunity to assist Staff and Indigo by commenting on their priority choices once those options are more fully developed.With that in mind,we can provide the following comments on the general topic of capital projects: ●Indigo Golf and Staff should identify any capital demands that are urgent and would threaten continued operation of the Pusch Course over the next two years. ●A primary focus should be on low or moderate cost needs that will maintain or improve the golf experience at the Pusch Course,while maintaining profitability. ●A secondary focus should be on improving operational efficiencies,including in water use,course condition maintenance or administrative costs. ●Facility improvements should be a lower priority for as long as practical ,unless they are necessary to maintain the operation of the course ●The capital improvement needs should be reevaluated in years 4-5. Finally,consistent with our comments regarding improvements,financial support for an expanded marketing plan for the Pusch Course should be part of any discussion. The HOAs appreciate the willingness of the Town staff and Indigo Golf to seek our continuing input.We thank you for this opportunity at this point in the development of the analysis and we look forward to working with you as this project moves forward. El Conquistador Resort Patio Homes Association Shadows of the Ridge Homeowners Association Shadows of the Ridge at El Conquistador Patio Homeowners Association 1 Response from Friends of Pusch Ridge to Request for Input Regarding Pusch Ridge Golf Course Analysis December 15, 2023 Introduction Staff from the Town of Oro Valley is working with Indigo Golf to provide the Oro Valley Town Council with an “analysis of the continued feasibility, [and] capital improvement requirements . . . for the Pusch Course . . ..” As part of the development of this analysis, Staff has invited Friends of Pusch Ridge Golf to provide their input. Staff is initially seeking input on three areas: A. What is working well? B. What are your ideas for improvement? C. What capital projects are a priority for your group over the next five years? We believe it is important for Friends of Pusch Ridge Golf to also comment on other aspects of analysis that the Town Staff identified and is compiling for the Town Council’s consideration: • Context, history and public policy o This is the major Town owned recreational facility east of Oracle Road o Because of its proximity to the El Conquistador Resort, this facility has been an introductory venue to thousands of first-time visitors to Oro Valley as well as to numerous businesses, associations and social groups. o The course has hosted and continues to serve multiple generations of golfers. o This facility showcases up close, the Pusch Ridge peaks like no other Town owned facility. • Description of course facilities and conditions o It is important to include within the description of the course, the tennis operation, access to the Linda Vista Trail, the parking facility, the building facility including racquetball courts and its congruence with the Town’s premier resort and conference center, The El Conquistador Resort. • Financial performance o Evaluation of the financial performance needs to be tempered consistent with all other Town owned recreational amenities and not primarily viewed as a traditional for-profit golf operation. o Financial performance needs to be assessed in terms of net costs to the town in relationship to its delivered benefits to the community – image, resident value and support to local business. • Public benefit activities o Diversity of users, number of users, frequency of use, events, social interactions and its contribution to a sense of community. 2 • Performance o Performance needs to be evaluated consistent with other Town owned recreational facilities – are the numbers of players and economic impact beneficial to the Town’s image, general plan and quality of life? Is the current level of use/popularity sustainable? Does its use reinforce Oro Valley’s desired sense of community? • Water analysis o The key is to have a long-term, continuous improvement plan to reduce water use via improved irrigation efficiencies, reduction in turf not impacting playability, and enhancement of desertscape. o Can this facility be used as a proving ground for innovations in recreational water use to sustain quality of life in the desert Southwest? • Public perception/Market conditions assessment o There has been a remarkable shift in the use and popularity of this golf course since the pandemic. We believe the shift is sustainable given a continued focus on serving the needs of the community. • Recommended practices for municipal golf courses (operational improvements) o Given the course’s influence on visitors and potential new residents / businesses, it needs to be marketed as a community showcase and not simply as a municipal golf course. • Capital Investments o Capital investments should also be evaluated in terms of a consensus vision for the facility and its contributions to economic activity for the Town and its private businesses. • What is working well? o Friends of Pusch Ridge Golf was formed to market the golf course to assure optimum value from this Town asset. Indigo Golf has been a great partner in fulfilling the expectations of the target markets for the golf course. The continued growth of play, customer satisfaction and price/value are exceeding all expectations. o The Friends marketing plan has been successful – attracting a strong base of weekly league play, increasing awareness of the course to visitors and apartment dwellers, increasing the diversity of those who play, support of local business and reinforcement of the theme, Fast, Fun and Affordable. o Indigo has established a consistency to the operation including guest services and the course’s physical product. • What are your ideas for improvement? o Friends of Pusch Ridge Golf appreciate Indigo Golf and the Town’s support of the marketing plan and strategies it has pursued during the three-year provisional period. However, any further suggestions for facility and operational improvements must be aligned with the Town’s vision for the facility in the longer term to realize its highest and best use. o The focus on improvements needs to be on supporting a consensus marketing strategy – enhancing the quality of the operation and experience as a resort facility and not just a municipal course. o Formalize the support from both the El Conquistador Resort and Westward Look. o Exploration of volunteer participation in course operations. o Formalize collaboration to market the entire Pusch Ridge Facility – golf and tennis. 3 • What capital projects are a priority for your group over the next five years? o Friends of Pusch Ridge Golf are not in a position to prioritize needed capital investments to the facility as they related to facility use, whether it remains a golf course or not. o Our desire for any capital investments are based upon the following criteria: § Improving the playability of the course to assure continued growth, in terms of rounds played, appeal to a diverse audience and a positive financial return on investment. § Assuring continuous improvement in the course’s environmental sustainability – water use efficiencies, wildlife habitat protection, stormwater management, etc. § Preservation of the facilities in ways that protect and enhance adjacent property values. § Enhancement of the facilities for the benefit of economic activity and tourism. o Pro shop building enhancements to create a more congruent perception with the adjacent tennis operation and the El Conquistador Resort. o Water use improvements to improve environmental sustainability and a better year around appearance / use. Stormwater harvesting, testing of other conservation technologies. o On course enhancements to justify strong value for price – sufficient carts to meet demand, cart path repair/replacement, signage updates, a more permanent on-course restroom, enhancements to the practice area, etc. o Improvements to landscaping, drainage, safety and security assets including the sanitation and aesthetic appeal of the pond area. o The ADA compliance investments at the facility resulted in several parking spaces being removed from general parking. The continued growth of play of both tennis and golf has resulted in complaints about limits to parking. The expedient staging of golf carts in parking spaces has also contributed to these complaints. Assuming use popularity remains the same and continues to grow, additional parking and a dedicated golf cart staging area separate from the parking area should be considered. Summary Response 1. What is working well? a. The Town – Indigo – HOA - FOPRG Golf Partnership 2. What are your ideas for improvement? a. Formalize a clear Town vision for the property consistent with the next general plan. b. A collaboratively developed marketing and operation plan to achieve and sustain this vision. 3. What capital projects are a priority for your group over the next five years? a. Friends of Pusch Ridge Golf are not in a position to prioritize capital needs. Our desire is for the Town to invest appropriately so that the facility can continue to positively serve the community. b. Capital investment in this facility should appropriately align with the Town’s vision for this asset. c. Capital investments should be consistent with OV’s Path Forward 2026 General Plan, and initially, invest to preserve the course and adjacent facility, enhance playability and environmental sustainability – with a critical focus on water use efficiency. Supplement to Response from Supporting Homeowners Associations and Response from Friends of Pusch Ridge Golf December 15,2023 Select sample of 2023 Review Comments for Pusch Ridge Golf posted on GolfNow.com Season to date,37 surveys with a 4.5 out 5 Overall Rating and 97.1%Would Recommend. Since reopening of the course,130 surveys with a 4.2 Overall Rating and 92.3%Would Recommend Below are the 19 reviews with comments thus far this season. Additional comments/recommendations are available at: https://www.golfnow.com/courses/1027059-pusch-ridge-el-conquistador-details# 1.Great experience 12/09/2023 Recommend A nice 9-hole challenge court with nice mountain view 2.Another fun day at Pusch Ridge 9 12/08/2023 Recommend As good as it gets for a 9-hole Public Course.We are members at a Nearby Private Course and we enjoy playing here as much as there.The attention to detail during the past year has been extraordinary…tee boxes,greens and fairways have never been better. 3.Much better 11/13/2023 Recommend The greens roll true at this beautiful course.I love the views!It is a quick play and always enjoyable.The grass around the greens is longer so balls don’t skitter off 4.Fun hidden gem 12/03/2023 Recommend Fun course with amazing views.Ron was fantastic at the club house.Made new golfing friends as well.5 stars for a great course!! 5.Challenging but lots of fun 11/28/2023 Recommend I have been playing PR for the past 6 years as a member of one of the leagues.This 9-hole course has it all:par 3s, par 4s and even 2 par 5s.The course is in great condition and the views from many of the holes are stunning.The staff is always ready with a smile and some helpful information to make your round more fun.The cost to play this course is really reasonable...Check it out if you want a challenging,but quick round of golf up in Oro Valley. 6.Community Golf 12/04/2023 Recommend Joining the Men's Club at Pusch Ridge has introduced me to players who live all over Oro Valley.This is really a valuable gift to a new resident such as myself.Monday mornings at Pusch Ridge Golf is the best way to start the week.Thanks,Pusch Ridge! 7.This course has it all 11/29/2023 Recommend Beautiful,challenging and affordable!How can you beat this course for interest,amazing views and budget.Not to mention the casual,welcoming atmosphere,this is a must-play 9-hole that will challenge the best golfers yet be a good learning course for the average player.What a hidden gem! 8.Great 9-hole course in Tucson for a low price 11/29/2023 Recommend My wife and I play on multiple leagues on this course.The course is always in great shape and run by excellent staff.This is our favorite place to play in Tucson and look forward to it every week.The holes are challenging but the course is always in amazing shape.This course must be kept in its exact shape and available for all of us locals to play. 9.Exceeded expectations 11/29/2023 Recommend Course staff was friendly and I was greeted with a golf cart at my car within a minute of parking.Awesome!Played in less than 2 hours and course layout was very fun for a quick afternoon round.I loved it so much I replayed the 9 immediately after. 10.Tough little 9-hole course with great views 11/27/2023 Recommend Pusch Ridge is hard.The first hole is a short par 5,but you need to hit a blind tee shot over a big tree down the left;so,I hit a 7 iron to the middle as there is nowhere to warm up for a tough first drive.The handicap 1 3rd hole requires a pin point drive and everything slopes right putting you under trees if you miss your drive line by a little. The 5th green is 70%surrounded by water and the greens slope away making a lost ball a risk.The 6th hole is elevated 30-40'requiring a pinpoint wedge or you will be chipping from a steep slope.At least 7,8 and 9 are basic holes so you can finish strong.The green undulations are befuddling.GREAT value,and a fun 9,but don't expect it to improve your handicap!Good luck. 11.Exceptional 9-hole experience 11/20/2023 Recommend This well-maintained hillside course is smack in the middle of a gorgeous setting with the Pusch Ridge mountains towering above and expansive views to the west.Love the #5 Par 4 water hole and the #3 Par 5 is a beast. 12.Challenging &Fun 11/20/2023 Recommend Always enjoy playing this 9-hole course,with its gorgeous views!Everyone on staff are helpful and kind.On November 9th,in the afternoon,I hit my first hole-in-one on the 9th hole,my husband was there to verify this exciting moment!! 13.Great Course 11/15/2023 Recommend I am a member at Pusch Ridge,cannot say enough good things about it love playing there,the layout,views,staff and comradery with the other players is great.I highly recommend this course.Let ’s keep it going strong. 14.Challenging,but worth it. 11/03/2023 Recommend Staff is wonderful.Course is in great shape.Pace of play and value,all good.Beautiful views too.Very enjoyable to play. 15.Amazing Course 11/13/2023 Recommend Most beautiful 2 hours of golf you can play anywhere.Challenging holes with spectacular views.Public course that feels like a country club.The staff is very warm and inviting.Adding this course to my list of favorites! 16.Fun Course to Play 11/14/2023 Recommend I've been playing Pusch Ridge Golf Course for years,and find it to be in great shape this fall.Much work has been done on the tee boxes and greens and landscaping to continue to improve the playing experience.The views are spectacular and it’s a quick 2-hour round.I highly recommend this course to folks of all ages and abilities. 17.Pusch On the Come Up 11/13/2023 Recommend El Con/Troon has Pusch tuned up real nice this season.It looks fantastic!Great fairways,greens rolled great.This course is tight and puts premiums both on shot making/accuracy and putting.If you’re up for the challenge,you’ll be rewarded not only feeling great about your game but some majestic views as well. 18.An Annual Vacation Challenge 11/02/2023 Recommend This 9-hole course is very pretty.I played it last year on a much hotter day,but yesterday's round was played on a moderately warm day.Looking over and up at the nearby mountain range is great,especially if you aren't regularly playing courses that are built right beside a small set of mountains.You must keep the ball in the fairway to avoid double-bogey or worse on a hole.The course was in great shape.The putting greens were excellent, allowing the ball to roll smoothly towards the cup. 19.It's in great condition 10/26/2023 Recommend The course is in the best shape that it has been in years.Newly leveled tee boxes and attention to the greens are great improvements from last year.The grounds crew has done a fantastic job mowing the fairways and fringe around the greens. August 30th, 2023 Darryl, Thank you very much for your time last week. It was a pleasure to catch up and see the Pusch Ridge Course again. There has been a number of different operating strategies for Pusch Ridge over the years, along some discussion as to what the best long-term solution would be for the course and all of its stakeholders. The foundation of the golf course is good, but will need some additional care, and capital investment for both equipment as well as course features. This report will cover each area of the course and will make recommendations pertaining to each. All of the recommendations here within are written towards long term sustainability over any other characteristic. Irrigation System: • It is recommended to perform an irrigation audit of the system as soon as practical. This will identify any immediate system performance issues. • The audit will identify exactly what heads are on each satellite and hole to ensure the central computer database is accurate. • This audit would also include arcs, nozzle selection, low heads, and heads that need leveled. • If the database is not correct, the system will not operate at peak performance. • More than anything, this will create time that is strictly dedicated towards reviewing the performance of your system and will identify areas for immediate improvement. • This will also improve workflow to the Irrigation technician, or dedicated staff and keep them moving forward with a road map of continual improvement. This is a more proactive approach to managing irrigation as opposed to a reactive one. • While the satellites appeared to be in good working order, it was discussed that many stations are paired up on a single wire. While this allows basic functionality, this makes adjustability difficult. This would be clearly shown during an irrigation audit, and again, would make sure the database matches what is in the field. • Some components of the system are relatively new and are in great shape. The pump station looked to be in excellent condition and if maintained, should offer years of smooth operation. That station is shown on the following page. The Flowtronex pump station appeared to be in very good condition and is well maintained. Putting Greens: • The greens were being maintained minimally during the summer closure; however, they were maintained in an appropriate manner that will have them in good playing condition once the course reopens in the fall. This is a sound strategy. • I would prefer to see more sand topdressing occur to keep organic matter diluted, which would make for enhanced playing conditions during the playing season. • The below photo shows a typical green on the day of the visit: Bunkers: • The bunkers were the weakest area of the course and would require significant ongoing investment to keep them in acceptable condition. • It would be recommended to remove as many of the bunkers as tolerable. There aren’t that many bunkers on the course and removing them would not have an adverse impact on the playing experience. • The photos below show several of the bunkers in the current unmaintained condition. Fairway and Rough Management: • The fairways and rough are not maintained to playing conditions during the summer closure. • They were thin due to the lack of monsoon rain. Irrigating using the current potable source is very costly and does not make financial sense in the current operation model. • With the installation of reclaimed water source likely not being an option, this is truly the most sustainable strategy. • Weed control through the use of properly timed pre-emergent herbicides would be recommended. This was mainly the case for grassy weeds such as crab and Goosegrass. Broadleaf weeds were low in number and should be relatively easy to control with a high-quality appropriate herbicide. • The photos below show the fairways on the day of the visit. • It’s worth repeating that further maintenance would require regular irrigation, which would come at a very large expense during a time of closure. So while, this isn’t the same condition as presented during the operating season, it is likely the most sustainable option and is large factor as to why the facility self-funds gross of Capex reserve. Tees: • Similar to fairways and roughs, the tees are not maintained during the summer closure, and as a result do not have turf on them year-round. The photo below shows a typical tee on the day of the visit. • The decision not to irrigate this turf saves millions of gallons of water per year and contributes to the ability to run the facility during the playing season. • There has been no adverse effect on the overseed process, or the ability to produce high quality Ryegrass playing surfaces in the fall. Lake Maintenance: • The lake appears to be in need of some additional maintenance. Cattails and other vegetation, in addition to algae can decrease water quality, and over time, can accumulate excessive organic matter and decrease the overall water holding capacity of the lakes. This is another area that will require some investment to keep from further deteriorating. • Additional devegetation around the lake edges would be recommended as well. This will not only enhance the aesthetics but will help stop any damage to the edges that roots may cause. • The photos below show the Lake and the surrounding areas on the day of the visit. It is unknown if the lake is leaking at this time, however it is likely the case. Cart Paths and Trees: • The cart paths were generally in good condition, and it appeared that there has been investment done in recent years to protect them from deteriorating. Provided that there is an ongoing schedule for repair and seal coating, they should last as long as other courses that have asphalt paths. The photo below shows a typical cart path. • Many areas on the periphery of the course are experiencing encroachment from trees. The photo on the next page shows an example of this: • Increased maintenance to include thinning and selective removal is recommended. • This will increase airflow and reduce the impact to the irrigation system from this overgrowth. • It would be recommended to perform this work during the summer closure, so it does not impact play. Equipment and Maintenance Facility: The equipment used to maintain the golf course could use some upgrades and additions. The shared use of equipment between Pusch Ridge and the other 36 holes of El Conquistador makes sense from an economy of scale perspective, but this means at times, some important cultural practices aren’t completed at the frequency they should. This is particularly the case for topdressing and spraying as these are shared between the courses. Beyond that, it’s recommended to create a minimum equipment list and try to procure these items. Off-lease, or used would be fine due to the low hour nature of only having the course open for six months. At a minimum, the facility should have the following equipment: • Tractor with a PTO that can be used for spreading fertilizer and seed. This tractor can also have a loader attachment for loading sand into a topdresser, or loading dumpsters. • Triplex Greens mower with both mowing reels and vertical mowing reels • Triplex Tee mower • Fairway mower • Rough mower • Trim Mower • Sprayer • Spin Style Topdresser mounted on a Heavy Duty vehicle such as a Toro Workman or John Deere Pro Gator. • PTO or tow behind fertilizer spreader such as a Lely • Sand Pro (if bunkers are not removed) • Greens Roller • Aerification equipment (can be rented if necessary) • Small equipment such as edgers, blowers, trash pump, hand tools. The maintenance facility itself is adequate and would just need cleaned out of that old parts in stock for equipment that is no longer used, and a reorganization to ensure it is more self- sufficient. Sustainability and Financial Results: The Course operating calendar has created a very sustainable path forward. In the Desert Southwest, we have the unique scenario where our longest hours of daylight typically incur the highest operating expenses coupled with the lowest revenue generation; this is not the case for the majority of the country. Closing the course from mid-May through October has proven to be very wise. The savings in water from both a quantity and cost perspective is noteworthy, and is a primary contributing factor as to why Pusch Ridge has a path forward where many courses in a similar situation may face a more difficult path. From an environmental sustainability perspective, this is simply a good story to tell. The financial results are also good for 2023. 9-hole courses can often times have a more difficult time in growing rate and volume when compared to their 18-hole counterparts. For 2023, this was not the case, as budget was exceeded in both rounds as well as topline revenue. For the period ending June 30th, 2023 EBITDA was 14% ahead of budget ($23,267 actual on a budget of $22,400). A quantity of $27,500 was taken for Capex reserves, which is crucial for the operation to generate its own funds as to not overburden one party when it comes time for replacement items, or enhancement projects. Summary and Recommendations for the Future: Pusch Ridge has a loyal following of both players and residents within the community. With the course performing fairly well financially, it remains a viable business and should remain open as a golf course. Any other uses for the land would not generate the type of revenue and flow through that is currently being produced. It would be great to see the course self-fund to include the capex reserve amount for 2024. It should be noted that if it were not for the historically high cost of seed in 2023 and unexpected pump repairs, the course would have self- funded beyond the capex reserve as those two line items comprised all of the $20,000 variance to budget. As far as the longer-term path for Pusch Ridge, I sense the community and or HOA could have an interest in a potential ownership scenario. The community and its residents would certainly have a vested interest in seeing the course remain operational. Being that it is currently near self-funding, or self-funding may be attractive to them. Many HOA owned courses have done well financially with minimal impact to the HOA dues of the residents. There are many different styles of HOA owned courses with some running a deficit that the HOA will subsidize as an amenity to its residents, while others are operated in a manner that self-funds with HOA dues being used as part of a scheduled capex plan. This seems like a potential best option for all stakeholders and one that should be at least investigated. Best Regards, David Stout Director, Science & Agronomy DATE: May 1, 2023 Town Manager's Office TOWN COUNCIL REPORT TO: Mayor and Councilmembers FROM: Chris Cornelison, Interim Town Manager Peter Abraham, Water Utility Director SUBJECT: Reclaimed Water System Expansion Estimated Construction Costs This report is intended to provide Town Council with the estimated construction costs to expand the reclaimed water system per previous Town Council discussion. DISCUSSION Council has asked staff to estimate the construction costs to expand the reclaimed water system to serve Riverfront Park, the Pusch Ridge 9-hole golf course and James D. Kriegh Park. The Water Utility staff worked with a local firm that provides both Engineering and Construction services to develop cost estimates to determine the most feasible reclaimed water pipeline alignments, as well as cost estimates of the construction costs for those alignments. It should be noted that the Utility also included pipeline alignments and estimates of construction costs to also serve Pusch Ridge Christian Academy and the Oro Valley Country Club's 18-hole golf course. Attached to this report is the consultant's technical memo and estimate of probable costs to expand the reclaimed water system. SUMMARY Two separate pipeline alignments were evaluated to serve Riverfront Park, the Pusch Ridge 9-hole golf course, and JDK Park. Alignments and costs for Pusch Ridge Golf Course and JDK Park assume reclaimed service to the other new areas (for example, JDK Park assumes a new reclaimed system delivered to Riverfront Park and Pusch Ridge Golf Course). The Graffis Report2023 Golf Industry 2022 – Year in Review Definitions PARTICIPATION COURSE SUPPLY RETAIL GOLF COURSE: A tract of land containing at least 9, and typically, 18 holes. GOLF FACILITY: A business location where golf can be played on one or more golf courses. 18-HOLE EQUIVALENT (18-HEQ): A measure of golf supply calculated by taking the total number of golf holes and dividing by 18. For example, one 18-hole golf course equals one 18-hole equivalent. Two 9-hole golf courses equal one 18-hole equivalent. GOLFERS (ON-COURSE GOLFERS): Individuals ages 6 and above who played at least one round of golf on a golf course during the survey year. OFF-COURSE ONLY PARTICIPANTS: Individuals ages 6 and above who didn’t play on a golf course, but participated at a driving range, Topgolf (or similar golf-entertainment) facility, or indoor simulator during the survey year. LATENT DEMAND: A measure of individuals (6 and above) who didn’t play golf during the survey year, but indicated they’re interested in playing golf on a golf course now. BEGINNING GOLFERS (BEGINNERS): Individuals ages 6 and above who played golf on a golf course for the first time during the survey year. RETURNERS/FORMER GOLFERS: An individual with golf experience who played on a course in the past 12 months after not playing a single time during the previous year. INACTIVE/LAPSED GOLFERS: Those who previously played golf on a course, but did not play within the past 12 months. ROUNDS PLAYED: A round is defined as an authorized start on a golf course, regardless of the number of holes played or amount paid. OFF-COURSE GOLF SPECIALTY STORE: Brick-and-mortar stores, unaffiliated with golf facilities, that specialize in selling golf-related products. REGIONAL/INDEPENDENT RETAILER: Brick- and-mortar golf retailers, typically family- owned and operated, that are unaffiliated with national golf specialty stores. NATIONAL RETAILER: A retailer with multiple locations spanning several states and regions, such as PGA TOUR Superstore, Golf Galaxy, etc. PUBLIC FACILITY: A golf facility that is open to the public, all or part of the time. It may offer memberships. MUNICIPAL FACILITY: A subset of public facilities, owned by a tax-supported entity such as a city, county or state and open to the public at all times. PRIVATE FACILITY: A golf facility where play is restricted to members and their guests. MULTI-COURSE OPERATOR (MCO): A management company that operates two or more golf facilities. RENOVATION: A construction project at a golf facility where a minimum of nine holes is temporarily closed for at least three months to conduct the work. COURSES IN PLANNING: Specifications are being made. Upon completion of the final plans and specifications, the owner will begin taking bids. COURSES UNDER CONSTRUCTION: The general contract and subcontracts for the course have been awarded. Work has started and ground has been broken. (Cover photo: Sterling Grove (AZ), courtesy of Troon Golf, Patrick KoenigPAGE - 2 Introduction KEY STATISTICS for 2022 (All statistics are for U.S., unless otherwise specified) 2023 THE GRAFFIS REPORT Golfers(in millions) Golfers Juniors Women Non-Caucasians Beginners Golf Facilities Golf Courses New Courses (18-HEQ) Course Closures (18-HEQ) Golf Courses Worldwide Rounds Played (On-Course) Average Rounds Per Golfer (On-Course) Average Price for Public Round (inc. resorts) Overall 41.1 7.3 13.0 11.9 On-Course 25.6 3.4 6.4 5.6 3.3 $38 13,946 15,945 10.5 105.5 37,724 510 million 19.9 Off-Course Only 15.5 3.9 6.6 6.3 The underlying themes for golf in 2022 were continued momentum, opportunity and evolution. In the second full year since the onset of Covid- 19, there were encouraging signs that much of the pandemic dividend is outlasting the pandemic. While the number of traditional, on-course golfers matched its biggest increase in almost two decades – climbing for the fifth straight year to 25.6 million – the number of Americans who engage in the increasing number of off-course offerings surpassed that of on-course play for the first time. Almost 28 million people hit balls with a club at golf entertainment venues, in simulators and screen golf hitting bays, or at traditional driving ranges in 2022. Of those, 15.5 million have yet to play on a golf course, pushing the overall on- and off-course consumer base to 41.1 million. It’s also the first time that total golf participation has topped the 40 million milestone. The new entry points for golf, from Topgolf or Five-Iron Golf for example, continue to show a positive effect on traditional golf. These less- intimidating and socially-driven onramps are encouraging on- course trials and driving record levels of interest in the green-grass game among those who have yet to play on a golf course. And while play and purchases in the traditional game are driven by a committed core golfer base, the broader participant pool is becoming increasingly diverse while rising to its highest level in 10 years. The demographic cohorts with the most significant growth on-course since the start of the pandemic include: youth (+36%), Black (+34%), Hispanic (+21%) and women (+15%). This evolution comes as record numbers of newcomers have taken to golf during the “Covid era,” with more than 3 million beginners in each of the past three years. There were also new high-water marks for on- course gender and racial-ethnic diversity in 2022, with females (25%) and non-Caucasians comprising approximately one quarter of golfers. These collective changes have in turn helped improve the game’s image among younger and more diverse audiences. Golf’s total reach jumped 12% year-over-year in 2022, meaning more than one-third of the total U.S. population over the age of 5 have played, watched or read about the game – over 119 million Americans in total. T o t a l U .S . O n -C o u r s e G o l f e r s (in m i l l i ons ) 2020 2021 2022 24.8 25.1 25.6 +5% vs 2019 PAGE - 3 Equilibrium? 2023 THE GRAFFIS REPORT Although rounds of golf didn’t quite match the record totals of the prior year, 2022’s nationwide play still ranks among the top four years in history. The total of approximately (510 million) rounds is close to the totals seen in 2000 and 2001, when there were not only over three million more golfers, but over 1,000 added courses. The 2% YOY dip in overall rounds was within the +/- 2% to 3% annual variance for weather, an indicator that demand remains strong. The recent surges in green-grass play have brought supply and demand back into a more reasonable and sustainable balance. While demand for golf course properties remains strong among developers and those looking to preserve green space for alternative uses near metropolitan areas, 2022 saw the fewest course closures (as measured in 18-hole equivalents) since 2005 – before the burst of the real estate bubble that precipitated the Great Recession. Annual course closings have now outweighed openings for 17 years in a row, yet the U.S. remains far-and-away the best supplied golf nation in the world. There are just under 16,000 courses at almost 14,000 facilities, the latter down just over 2,000 from its peak in the early 2000’s. But amid the correction and surges in play creating a better supply-demand balance, existing facilities are showing a dramatic improvement in overall financial health. Despite the positive momentum and growth opportunities at hand for recreational golf, headwinds remain. Retention and conversion continue to be a challenge, as evidenced by the net gain of 1.6 million on-course participants over the past five years – a period in which almost 15 million beginners played for the first time. Additionally, the Covid-era increases in participation and play weren’t necessarily caused by anything those in the golf industry did differently. So, while there are signs the U.S. golf market has found a new level of stability, questions remain about whether there could be a repeat of the so- called “Tiger-boom,” which saw a spike in participation driven by less-engaged players who didn’t stick with the game. Complacency and the expectation that positive momentum will continue can be a natural reaction, but the most successful operators recognize the need to improve retention and continually improve the customer experience. This is especially true in the face of a potential economic recession and as other activities and interests compete for discretionary dollars and consumers’ free time. It's also important to note the recreational side of the golf industry has benefited the past few years from generally favorable weather that’s helped sustain strong play. Prior to the Covid-era surges, the U.S. experienced two of the wettest years on record in 2018 and 2019, resulting in a 7% drop in rounds compared to the previous 10-year average. Weather will always remain an unknown variable when it comes to the nation’s Number. 1 pay-to-play outdoor sport, but new off-course forms of golf – from indoor simulators to the covered bays at golf entertainment venues – also provide an alternative outlet that can keep golfers engaged in with the game in cold, wet or snowy conditions. It’s another example of golf’s evolution. The traditional game continues to change, and with that comes opportunity. More non-golfers than ever before are interested in taking up the green-grass game, over 20 million in total. The likelihood of future participation growth and continued course correction begs the question of when the industry might reach a new supply/demand equilibrium on the green-grass side. Based on a number of assumptions (among them: Baby Boomers contributing to an annual 1% increase in total rounds played, the on-course golf population remaining relatively flat, and the number of facility closures continuing to outpace new openings), projections show there could be a new equilibrium for the U.S. golf market within the next five to 10 years. PAGE - 4 Participation The number of traditional, on-course golfers has risen five years in a row, reaching its highest level in more than a decade at 25.6 million. Over the past three years, since the onset of the coronavirus pandemic, there has been a net gain of 1.3 million green grass golfers. The game’s overall participant base has eclipsed 40 million for the first time, climbing to 41.1M in total when considering those who play both on- and off-course forms of the game. Off-course participation is defined by NGF as hitting a golf ball in the air with a golf club, with locations that include golf entertainment venues, simulators and screen golf setups, and/or at standalone driving ranges. Various forms of miniature golf are tracked separately, but aren’t counted in the broader off- course golf participation figure. For much of the past decade, the traditional golfer population has hovered around 24 million to 25 million, establishing what seems to be a new baseline. This is in line with the U.S. golfer population when Tiger Woods burst onto the professional golf scene in the late 1990s and sparked record participation levels. While the number of golfers briefly topped 30 million in the early-2000s, that high-water mark for the industry is misleading in some respects. This participation bubble reflected not only the influence of Woods’ popularity and success, but a confluence of other driving factors from the time: a healthy economy, a pre-social media society, and an influx of first-timers who gave golf a try because it was “cool,” but didn’t end up sticking with the game and moving the needle when it comes to play and purchases. 2023 THE GRAFFIS REPORT PAGE - 5 Participation 41.1 Million Total On & Off-Course Participants While on-course participation continues to inch upwards, there’s even more rapid growth away from the course. As has been projected for several years, the number of off-course participants finally surged past on-course, rising to 27.9 million in total. Of those, more than half (15.5M) only play off- course forms of golf. At least so far. The current participation level appears more stable and sustainable, with a strong base of approximately 18 million committed golfers. This group, defined as consumers who say they’re “very likely” to continue playing golf as long as they’re healthy and financially able, accounts for more than 90% of all U.S. rounds and golf spending. And golf, in general, remains one of the nation’s most popular participation sports, buoyed by a participant base that spans generations – both on and off the course. 2023 THE GRAFFIS REPORT PAGE - 6 2023 THE GRAFFIS REPORT Total U.S. Golf Participation There are some notable differences among the various segments of golf participants. Those who play only off-course forms of the game are considerably younger, on average, including almost 15 years junior to their counterparts who only play the traditional game. And while household income levels among both groups are very similar, there’s greater diversity when it comes to the overall off-course participant base – closer to that seen in the overall population even as on-course golf has seen increased diversity in recent years. (in millions, age 6+) PAGE - 7 3.9M 6.5M 6.4M 3.4M Golfer Segments The number of juniors (ages 6-17) who played on a golf course in 2022 has climbed to 3.4 million. The 900,000 rise over the past three years – a 36% jump -- is the most significant of any on- course participation segment over that time. This is the highest total since 2006, which is the year Facebook opened to the public and ushered in the social media era that’s reshaped the way in which people spend their free time. 2021 marked the first time that the total number of juniors ONLY playing off course forms of the game outnumbered those who play traditional on- course golf. There was another notable jump in 2022, a total that doesn’t include various golf-in-schools programs either. Juniors account for more than 25% of the 13.2 million Americans who exclusively played off-course. On the course and off, the junior golfer pool continues to be more diverse than the game’s overall participation base. When looking only at on-course junior golfers, 38% are females (compared to almost 25% of all golfers) and 28% are non-Caucasian versus 20% in the general golf population. The number of female, on-course golfers (adult and junior) has risen three straight years to 6.4 million. Since 2019 (pre-Covid), there’s been a 14% net gain in traditional female golfers, or a rise of about 800,000 in total. Comprising one quarter (25%) of all on-course participants, it's equal to the highest female representation on record. The 18-34 and 50-64 age groups have the most participants in this segment. Females continue to account for approximately one quarter of on- course golfers overall. Looking back 25 years, when the on-course golf population was about the same (24.7M), females accounted for 20% of the participant base. The increase has been driven in large part by girls, as the number of female golfers between the ages of 6 and 17 has increased by over 200% since 1995. When it comes to off-course only participants, women make up almost 45% of that group. This is a significantly higher proportion than on course participants that likely speaks to the more socially- driven element of golf entertainment venues that appeal to couples, families and groups. Total Junior Participants in Millions (On and Off Course) Total Female Participants in Millions (On and Off Course) Juniors Women 7 .3 1 2 .9 Highest On-Course totals since 2006 Three Straight Years of Increases 2023 GRAFFIS REPORT Off-course Only Off-course Only On-course On-course PAGE - 8 Golfer Segments Approximately 4.7 million Americans age 65-and-over played golf on a course in 2022, holding relatively steady for the fourth straight year. From 2016 to 2019, this pool of “senior golfers” saw a net increase of more than 1.4 million participants as Baby Boomers continue to cross the age threshold. This remains close to the highest total on record. The 65+ segment comprises just under 20% of the overall on- course participant base. This group could grow in coming years as Boomers -- the 73 million Americans born between 1946-64 – continue to hit age 65 at a rate of 10,000 a day. Retirement age golfers contribute significantly to the golf economy, playing almost twice as many rounds annually than all other adult golfers, and spending more on golf than all other age cohorts. Perhaps a surprise to some, young adults comprise the largest on-course participant group of all age segments, with 6.2 million golfers between the ages of 18 and 34. In total, young adults account for approximately one quarter (24%) of the traditional, on-course participant base. On-course participation among this age segment has remained exceedingly stable over the past decade, hovering between 6.1M and 6.3M outside of a slight dip in 2020 that was likely attributable to financial impacts created by the pandemic. Young adults also continue to make up a noteworthy proportion (39%) of the off-course only golfer base, showing avidity for both the social, technological and time-friendly aspects of golf- entertainment venues and golf simulators. Total 65+ Participants in Millions (On and Off Course Only) Total Young Adult Participantsin Millions (On and Off Course Only) Age 65+ Young Adults 6.1M 6.2M 5 .4 1 2 .3 0.7M 18-34 Is Biggest Age Segment, With 6M+ Highest Play Totals Among Adult Golfers 2023 GRAFFIS REPORT 4.7M Off-course Only Off-course Only On-course On-course PAGE - 9 Golfer Segments The number of non-Caucasian golfers rose to 5.6 million and matched its highest-ever representation (22%) within the overall on-course population. Participation levels in this segment have increased 30% the past four years. Asian, Hispanic and African-American golfers account for almost 22% of green-grass participants overall. Non-Caucasians now represent about 40% of the total U.S. population age 6-and-up, the highest proportion in history. In 2011, this representation was 35%. Among off-course only participants, 41% are non-Caucasian. The number of beginner golfers – those who tried golf on a course for the first time – has hit record levels for three straight years. More than 3.3 million in total tried golf in 2022, up slightly from the 3.2 million total in 2021. In 2020, the coronavirus pandemic helped spur a record increase of approximately 600,000 beginners to surpass the three million milestone for the first time. These influxes have been sparked by increases seen in the junior ranks (as many participants are counted in both categories) and latent demand, as well as the proliferation of off-course forms of golf that promote interest and engagement with the on-course game. Retention, and more importantly turning beginners into committed golfers, remains critical for future growth. While the number of on- course golfers has risen 1.8 million since 2017, approximately 14 ½ million people have given the game a try for the first time since then. New record # of beginning golfers in millions (On Course) Total Non-Caucasian Participants in Millions (On and Off Course-Only) Beginners Non-Caucasians 6.3M 5.6M 3 .3 1 1 .9 On-course beginners are more diverse and younger than the overall golf population. Record Representation On-Course Newcomers Top Previous High 2012 2017 2021 2023 GRAFFIS REPORT Off-course Only On-course Beginning golfers and qualified latent demand (in millions) PAGE - 10 Inflow and Outflow 2023 THE GRAFFIS REPORT Inflow – beginners and returners Outflow Annual Golfer Inflow and Outflow (in Millions) (Beginners & Returners)(Lapsed & Inactive) Great Recession Covid-19 3.7 3.5 2005 3.7 5.2 2010 5.0 5.0 5.7 6.2 2015 5.6 5.3 2021 5.0 5.0 Inflow Outflow PAGE - 11 Off-Course Golfers NGF research shows that approachable, non-intimidating environments for golf (such as Topgolf and golf entertainment venues like it) help to cultivate interest in the traditional game. The correlative rise in interest in playing on a course for the first time corroborates those findings. While traditional, on-course participation has grown by about 5% over the past three years - - the industry’s biggest rise since the early 2000s – engagement with off-course forms of golf is up almost 20% over the same period. Given the continued proliferation of golf entertainment venues and indoor simulator facilities, the number of off-course participants in 2022 surged past on-course players for the first time since tracking of the category began less than a decade ago. In 2014, there were 14.3 million off-course golfers, so that participant pool has almost doubled in total. 2023 THE GRAFFIS REPORT 20 10 30 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 "Very Interested" Non-Golfers (in Millions) Off & On course golfers Off-course Only 5.4 8.9 7 10.9 8.2 11.6 8.3 12.9 9.3 13.7 9.9 13.4 12.2 12.1 12.4 12.4 12.4 15.5 PAGE - 12 On-Course Growth When it comes to the question of where the growth in green grass golf is coming from, consider that the proportion of non-Caucasian and female golfers has climbed to an all-time high after trending upwards in recent years. The net growth in the traditional golfer ranks – half a million in both 2022 and 2020, and 300,000 in 2021 – has come largely from some historically underserved segments that align with the interest seen among non-golfers (latent demand). Among the most notable increases in recent years have been seen in the female, youth and non-Caucasian segments. 2023 THE GRAFFIS REPORT PAGE - 13 2023 THE GRAFFIS REPORT Proportion of "Green Grass" Golfers who are non-Caucasian and Female PAGE - 14 High school golf participation is up 3% compared to pre-pandemic figures, with girls driving that increase. During the pandemic, golf is one of only a few high school sports to see increases in both boys and girls participation. Over the past decade, the number of girls playing on high school golf teams has increased by 14% (compared to a 3% decrease in male competitors over the same period). Today, 35% of high school golfers are girls, higher than their 25% representation overall in golf. 2023 THE GRAFFIS REPORT PAGE - 15 Future Growth - (Latent Demand) Latent demand is a measure of those who didn’t play golf on a course within the past year but say they’re interested in doing so now. The number of these “non-golfers” who say they’re very interested in playing golf has climbed to 20.8 million, a 17% increase from 2021. In addition to those who have never played, the latent demand pool is comprised of lapsed golfers who played on a course previously, but not within the past year. Over the past decade, the pool of “very interested” prospects has almost tripled from 7.2 million in 2012. The proliferation of accessible and less-intimidating off-course forms of golf have contributed to this rise in non-golfer interest in taking up the traditional game. What’s notable is that even more Americans, 26.4 million, say they’re interested in trying entertainment golf. 2023 THE GRAFFIS REPORT Source(s): Physical Activity Council (PAC) activity survey and NGF's Participation and Engagement Survey (PES) PAGE - 16 Rounds Played Despite a slower start to the year, predominantly due to weather, 2022 finished as one of the top four years for rounds of golf on record. On a year-over-year basis, rounds fell about 2% shy of the record-setting U.S. play total in 2021. This decline is within the typical +/- 2% to 3% annual weather-related variance. With approximately 518 million rounds nationally, 2022’s total was roughly equal to play in 2000 and 2001, when there were over three million more golfers and 1,000 additional courses. 2023 THE GRAFFIS REPORT Engagement PAGE - 17 Rounds Played As play remained strong throughout 2022, it paced more than 10% above the 10-year rolling average. The tail-end of that period includes the Covid-driven surges in play. Prior to the last three years, the last time the U.S. market had over 500 million rounds played was in 2006. 2023 THE GRAFFIS REPORT Engagement PAGE - 18 Commitment and Avidity The industry continues to have a very stable base of approximately 20 million committed golfers, as measured by participants who say they’re “very likely” to continue to play golf in the future assuming they’re healthy and financially able. This participant pool, which accounts for around 90% of the overall rounds and golf spend, is up 5% in past five years. During the Covid era, we’ve said increased play was driven not just by more players, but by the most avid golfers playing with greater frequency. And yet, in recent years we’ve seen the number of Occasional golfers (defined as 1-7 rounds annually) increase while the number of Core Golfers (8+ rounds a year) has dipped 7% over the past decade. 2023 THE GRAFFIS REPORT Engagement PAGE - 19 Commitment and Avidity When it comes to keeping beginning golfers, there’s a notable difference between retaining those who give golf a try and seeing them make the transition to a committed participant. Developing beginners into committed golfers is crucial in terms of play and spend, with committed golfers playing seven times as many rounds and accounting for an even greater percentage of spend. Core Golfers: 8+ rounds past 12 months Occasional: 1-7 rounds Moderate: 8-24 rounds past 12 months Avid: 25+ rounds annually 2023 THE GRAFFIS REPORT Engagement PAGE - 20 Engagement Golf's Reach In addition to golf’s 41.1 million on- and off-course participants, another 78.1 million non- golfers followed the game on television or online, streamed coverage, read about it, or listened to a golf- related podcast, pushing golf’s total reach to more than 119 million. This figure represents approximately one-third of the U.S. population over the age of 5. Golf’s reach is up about 12% from 2021, a rise attributable not only to increased participation on and off the golf course, but heightened interest among non-golfers, and even greater awareness created by the controversial LIV Golf professional tour. 2023 THE GRAFFIS REPORT PAGE - 21 Golf's Reach In total, approximately 1 in 9 Americans actively engage with golf – hitting golf balls with a club either on-course or off – making it one of the nation’s leading participation sports. More people play golf in some form than play basketball, baseball, football, hockey or tennis. 2023 THE GRAFFIS REPORT Engagement PAGE - 22 Facilities / Supply With just under 16,000 courses at almost 14,000 facilities nationwide, the U.S. golf market remains the world’s best- supplied by a wide margin – totals that exceed the other top 10 golf nations combined. Even though course closures have outweighed new openings for 17 years running during the ongoing supply correction – a natural balancing of supply and demand -- golf options in the U.S. remain abundant. There are more U.S. golf courses than locations for popular and seemingly omnipresent chains such Starbucks (15,000+) or McDonald’s (14,000+). The U.S. accounts for more than 40% of worldwide supply, with over five times more courses than any other country. In each of the past three years, the number of annual golf course closures has declined, a sign the U.S. market may be moving closer to equilibrium. There have been more than 100 18-hole equivalent closures every year dating back to 2006, with this year’s total the lowest in that 17-year stretch. This reflects a drop of almost 66%, since the record high total in 2019. Amid the ongoing correction, which has led to a net decline of over 2,100 18-HEQ since 2006, the oft- missing context is that this drop was precipitated by an unprecedented and unsustainable spike in supply. Over a 20-year period from 1986 to 2005, the U.S. opened more golf courses (almost 5,000 18- HEQ) than any other country has in total. Many of those were built to sell real estate, so when the housing bubble popped after prices peaked in early 2006, it wasn’t surprising a supply correction in golf was a result. Total U.S. Supply 10.6 105.5 94 Golf Courses Courses Closed* Golf Facilities New Courses Opened* Re-Opened After Renovations* 13,946 15,945 (*As measured in 18-hole equivalents) 1930 1950 1970 1990 2010 2022 2023 THE GRAFFIS REPORT (1930-2022) PAGE - 23 Closures are still occasionally used as a proxy for the popularity of health of golf, but they don’t capture the full story. The majority of recent closures have skewed toward value-oriented, public facilities in competitive markets. With heightened demand for land, there are both developers eager to turn unprofitable golf courses – especially those in good locations – into profitable real estate projects, and longtime course owners embracing an exit strategy to cash in on their golf property. While businesses of all kinds regularly close and get sold off, golf courses have a natural appeal for developers, particularly in and around urban areas, given an average spatial footprint of about 150 acres. 2023 THE GRAFFIS REPORT PAGE - 24 Facility Health There’s been a dramatic improvement in the overall financial health of U.S. golf facilities in recent years, a function of stabilizing participation, the closing of many lower-performing courses, and the added revenue generated by the surge in rounds played. Two-thirds of public courses and 80% of private clubs report to be in “good” or “excellent” financial shape, another indication that the market is moving closer to equilibrium. With fewer facilities now financially “at risk,” it’s likely the rate of closures/conversions will continue to slow. In previous NGF studies (2009 and 2016), about one quarter of public courses reported being in poor financial shape. Among private clubs, 21% said they were doing poorly in 2009, a proportion that dropped to 14% in 2016. Now, fewer than 4% of golf facilities are in self- reported bad financial shape. 2023 THE GRAFFIS REPORT PAGE - 25 Cost of Golf Accessibility and Affordability Almost three-quarters of U.S. golf facilities are open to all players, close to the highest proportion on record. There’s also a wide range of offerings in the public sector, providing consumers a multitude of options at a variety of price points – from value-priced 9-hole facilities to high-end resorts. The number of municipal golf facilities totaled 2,562 in 2022, equaling the all-time high and up about 5% from a decade ago. The increase in recent years has primarily been driven by acquisitions, as some municipalities have purchased private or struggling daily fee clubs and converted them to municipal facilities in order to protect green space and provide a community amenity. Operators in certain markets have regained some pricing power in recent years thanks to increased demand. The average price paid for an 18-hole round at a public golf course rose to $41 in 2022, up from about $38 a year ago and a per-round increase of about $4.50 compared to pre-pandemic green fees. This pricing reflects peak fees that have been adjusted for discounts such as weekday rates, junior and senior discounts, walking, time of day, etc. When excluding resort courses, the average price drops to $36. The rise in play and rounds has been the main contributing factor to green fee increases, per operators, who also cite increased costs related to labor/wages, supplies and maintenance. While some also noted they rose rates to match competitors, many operators are essentially playing catchup on pricing that hadn’t been raised materially for years, if at all. Golf’s pricing adjustments, which haven’t kept pace with inflation in recent years, will help improve the financial health of many courses. And the most recent YOY increase is almost exactly in line with the 6.5% annual inflation rate for the U.S. in 2022. When not accounting for discounts, the average weekend, peak-season fee green fee (with a cart) is $51. PUBLIC GOLF SUPPLY 2023 THE GRAFFIS REPORT Daily Fee Municipal 0 2,000 4,000 6,000 8,000 2,562 7,724 PAGE - 26 2022 Golf Course Investment & Renovations Investment in existing U.S. facilities is substantial even if the opening of new courses remains limited. On average, between $800 million and $900 million annually is being invested at existing golf facilities to upgrade their golf course or improve their product. That equates to roughly $4 billion over the past five years. Since 2006, major course renovation projects have accounted for more than $4 billion. In 2022, almost 100 18-HEQ re-opened after these extensive reconstruction efforts, which require a minimum of nine holes being closed for at least three months. There is significantly more investment going on in terms of minor improvements or upgrades at thousands of facilities nationwide that has minimized disruption to golf operations, from individual holes being redone to bunker work, green and teeing ground restorations, re-grassing, cart path replacement or clubhouse upgrades. Over half of public and private U.S. golf facilities indicate they are planning or expecting capital investments such as irrigation work or clubhouse improvements in the next several years 2023 THE GRAFFIS REPORT PAGE - 28 Short Courses and Par 3 Facilities One out of every 10 golf facilities in the U.S. is of the Par 3 or Executive Golf variety, with approximately 1,500 “short courses” in total. While it may seem like Par 3 courses have been more popular recently – representing a higher proportion of recent course openings than their overall supply – the so-called executive facilities outnumber their shorter counterparts 3-to-2. A good number of the limited new course openings have been Par 3 courses at destination properties and high-end private clubs, but the number of Par 3 courses overall has declined 26% during the industry’s supply correction (as measured in 18-HEQ). Regulation courses have declined 11% over that same period, while Executive courses are down 13% 2023 THE GRAFFIS REPORT PAGE - 29 United States Japan United Kingdom Canada Australia Germany South Republic France Sweden China Spain South Africa New Zealand Ireland Argentina Netherlands Denmark Thailand Italy India 15,945 3,090 3,041 2,530 1,568 1,053 844 815 661 605 486 472 404 358 352 350 340 319 311 296 International Golf Supply Globally, there are 37,724 golf courses (at 31,439 facilities) in 207 of the world’s 245 countries. This total is down from 38,081 two years prior. Despite its worldwide reach, the sport still has significant geographic concentration, with 80% of supply located in the top 10 golf countries. The U.S. has more courses than the next 10 best-supplied golf countries combined, nine of which have more than 600 courses. North America is home to about 50% of worldwide supply, followed by Europe with 23% of the world’s total and Asia with a 17% regional share. The Top 20 Golfing Countries (by # of courses) Golf worldwide is predominantly played at public facilities, with approximately 80% of courses publicly accessible in some form on a “pay per play” basis. 37,724 2023 THE GRAFFIS REPORT PAGE - 29 Off-Course Golf Supply The growth of off-course golf has been dramatic in a relatively short period of time. Since the year Phil Mickelson won his second Masters title (2006), the number of off-course golf facilities has exploded. The proliferation of places to play off-course forms of golf is what has spurred a 20% participation increase over just the past three years and pushed the number of off-course golfers past those who play the on-course game for the first time. Topgolf continues to be the industry leader in the large venue golf entertainment category, comprising about 90% of the modern, golf entertainment range category (which also includes brands like Drive Shack, GolfSuites, 4ORE! Golf, Great Shots, Suite Shots and Big Shots, with others in development. As with the early growth of green grass golf facilities, off-course development is primarily located around populous major metropolitan areas. These venues appeal to both golfers and non-golfers alike, providing an engaging on-ramp to the traditional game. NGF research indicates about three-quarters of non-golfers who visit these golf- entertainment venues say they are interested in playing golf on a course, a far higher proportion than non-golfers without that experience. Beyond the large venue golf entertainment locations are the popular commercial indoor simulators, from single-bay units at stadiums, casinos and hotels to multi-bay locations at green- grass facilities and off-course locations. Among the notable brands are XGolf, Five Iron Golf, Golfzon, etc. There are also approximately 900 standalone golf ranges in the U.S. While this supply is 42% down from the high of 1,573 in 2000 (compared to a 12% decline in golf courses over the same period, an increasing number of standalone golf ranges have gained new popularity thanks to new technology (like Toptracer range), social components and some food & beverage options, coupled with increased engagement,. Over 16 million Americans played at a traditional range in 2022. 2023 THE GRAFFIS REPORT PAGE - 30 Retail Supply After a decade-long decline in the number of physical golf retail doors, supply has ticked up slightly the past two years. There were approximately 640 off-course golf specialty stores in the U.S. in 2022, a net increase of approximately 10 doors from a year earlier. These stores operate about 6.7 million square feet of retail space. National retail stores such as PGA TOUR Superstore, Worldwide Golf Shops and Golf Galaxy represent 45% of all golf specialty locations – 288 in total – but 76% of square footage. The 352 regional and independent stores, examples of which include Austad’s Golf, Carl’s Golfland and Moon Golf, represent 55% of the overall supply and, with a smaller footprint, 24% of square footage. Additionally, DICK’S, Academy Sports and Big 5 are among the more than 1,800 sporting goods stores across the U.S. that also sell golf equipment and apparel. The number of specialty club fitters continues to increase, with venues like Club Champion, GOLFTEC and True Spec gaining popularity in the golf retail space and totaling almost 300 locations between them. AVERAGE STORE SIZE IN SQUARE FEET STORES CLOSED STORES OPENED MILLION TOTAL SQUARE FEET 2023 THE GRAFFIS REPORT PAGE - 31 TOTAL STORES MEMBER RESOURCES • RESEARCH • CONSULTING • DATABASE SERVICES 501 N. HIGHWAY A1A, JUPITER, FL 33477 TOLL FREE (888) ASK-4NGF • WWW.NGF.ORG This publication and any part thereof may not be published or reproduced without written consent of the NGF. © 2023 NATIONAL GOLF FOUNDATION "People join the NGF because they believe in being more knowledgeable about the golf industry. They want to stay up-to-date on trends and have access to the industry's most accurate and objective measures of the game's vitality. Joining the NGF means connecting with a community of like-minded individuals who support the NGF's efforts to influence golf's long-term success. Memberships help fund the many research projects and publications that the NGF produces on behalf of the industry. WE’RE THE NGF. WE BRING GOLF BUSINESSES TOGETHER. DATA SETS THEM APART. OUR KNOWLEDGE DRIVES THEM FORWARD. 2023 THE GRAFFIS REPORT PRESENTATION AND POSSIBLE ACTION REGARDING FEASIBILITY AND CAPITAL IMPROVEMENT REQUIREMENTS FOR OPERATING THE PUSCH RIDGE GOLF COURSE February 7, 2024 1 Evaluation of continued feasibility and capital improvement requirements Consider alternatives related to: Water use Configuration Third -party lease Purpose Pusch Ridge Operational Analysis 2 3 Process Pusch Ridge Operational Analysis February 17, 2021 •Council direction: “…return with a plan for operating Pusch Ridge… to its continued feasibility, capital improvement requirements while also looking at alternatives to look at water usage, potential new configurations and a third- party lease.” March 3, 2021 •Pusch Golf Major Action Framework and Recommended Timetable presented, including to “present the potential options for course investment…” in January 2024. July 2022 •Indigo’s Pusch Golf Performance Report, FY 2022 August 2023 •Staff outlined analysis and began regular working group meetings September 2023 •Indigo’s Pusch Golf Performance Report, FY 2023 October 2023 •Capital Projects and Major Repair working group course and facilities tour November 2023 •Expanded Pusch Ridge Discussion Group meetings (FOPRG and HOAs) February 2024 •Presentation, Discussion and Possible Action Regarding the Feasibility and Capital Improvements for Operating the Pusch Ridge Golf Course Pusch Ridge Operational Analysis 4 Revenue and Expenses, Projected Through FY 2024 Pusch Ridge 9-Hole Revenue and Expenses, Actual and Projected Through FY 2024 FY 2022 Actual FY 2023 Actual % Change FY 2024 Projected % Change Golf Rounds 15,248 16,266 6.30%18,000 9.60% Gross Income $372,695 $395,208 5.70%$441,820 10.50% Operating Expenses $312,024 $369,242 15.50%$414,125 10.80% Net Operating Income $60,673 $25,966 $27,695 Pusch Ridge Operational Analysis 5 Revenue and Expenses, Projected Through FY 2028 Pusch Ridge 9-Hole Revenue and Expenses, Projected Through FY 2028 FY 2024 Projected FY 2025 Projected FY 2026 Projected FY 2027 Projected FY 2028 Projected Golf Rounds 18,000 18,680 19,199 19,391 19,585 Gross Income $441,820 $453,167 $464,272 $473,558 $481,047 Operating Expenses $414,125 $432,969 $441,866 $446,666 $451,527 Net Operating Income $27,695 $20,198 $22,406 $26,891 $29,519 Pusch Ridge Operational Analysis 6 Capital Improvement and Major Repairs Budget Estimate (2024 Dollars) Ten -Year Spending (Adjusted Dollars) $1,893,973 $2,267,994 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Pusch Ridge 9-Hole Capital Improvements and Major Repairs, Projected Through FY 2034 Pusch Ridge Operational Analysis 7 Water Use 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 July August September October November December January February March April May June Pusch Ridge Water Usage by Month FY 2022 FY 2023 FY 2024 Pusch Ridge Operational Analysis “Based on current financials and market conditions, we do believe Pusch Ridge’s current setup is the best course of action.” 8 Configuration “Adding holes or reducing Pusch Ridge to a ‘par-3’ golf course to save on turf and water would not be an effective ROI. “ Pusch Ridge Operational Analysis 9 Third-Party Lease November 2021 – Competitive Request for Proposal process seeking Lessee/Operators for Pusch Ridge 9-Hole Golf Course. No single acceptable response was received. Environment for management of municipal golf courses has not changed dramatically in the last three years. 10 Discussion    Town Council Regular Session 3. Meeting Date:02/07/2024   Requested by: Paul Keesler Submitted By:Paul Keesler, Public Works Department:Public Works SUBJECT: PRESENTATION AND DISCUSSION ON VALLEY VISTA SUBDIVISION SUBSIDENCE RECOMMENDATION: This is an informational item regarding Valley Vista Subdivision subsidence issue.  EXECUTIVE SUMMARY: Two homes within the Rancho Vistoso Valley Vista subdivision, 780 E Kalalau Dr. and 803 E Romsdalen Rd. have experienced substantial foundation settlement issues. Both homes experienced internal and external damage in the form of wall and floor cracking, driveway differential settlement and cracking, and perimeter wall settlement and cracking. These two homes are located on either side of a Pima County Wastewater Lift Station as depicted in the following: Specifically, Lots 19 (780 E Kalalau Dr.) and 20 (803 E Romsdalen Rd.) have experienced significant settling, with helical piers installed to effect repairs and abate any future building settlement. Additionally, soils near the lift station have shifted, causing cracks in the entry road asphalt to the lift station. The subdivision developer is the Pulte Group. Pima County Wastewater owns and operates the lift station.   While the house foundation settlement is an issue between the developer and the homeowner, the Town has become involved in seeking out information for two reasons:  To ensure the safety and welfare of impacted residents To ensure the Town understands the cause of subsidence in advance of acceptance of the deeded streets for public maintenance in accordance with Town Code Section 7-9-1 (Acceptance of Deeded or Dedicated Streets, Drainageways and Rights-of-Way). To wit, the Town staff sent the Pulte Group a message, dated June 29, 2023, stating that the Pulte Group must provide reports and mitigation regarding the subsidence issue Through extensive engineering evaluation and investigation, Town staff, the associated geotechnical experts hired to evaluate this situation, the developer and associated utility organizations (Oro Valley Water, Town’s Stormwater Utility and Pima County Wastewater) have traced the main cause of the subsidence to a private water service line break.   On December 29, 2021, a private 2” water service line at the Pima County Sewer Lift Station broke open and dumped over 84,000 gallons of water in a 14-hour period. This massive amount of water inundated the area, and unlike a typical main break, contained most of the escaping water subsurface, not giving those who fixed the situation an idea of how catastrophic this event was. Then, from the time of the event to present, this water has interacted with existing subsurface soil strata that is loosely consolidated and reactive to high moisture content, as well as generally subsiding down to the water table. In doing so, it has affected not only the lift station but caused large subsidence issues for the two identified lots described above. BACKGROUND OR DETAILED INFORMATION: The Town first became aware of the subsidence situation in March 2023, when Pulte applied for a foundation repair permit for lot 20. Then following in May, Pulte applied for another foundation repair permit for lot 19. And finally, on May 20 th , the owner of lot 20 reached out to Pima County Flood Control District to purchase his house because of the subsidence. Pima County subsequently forwarded that request to the Town where staff became informed about all the damage this house had experienced. The damage to lot 20 consisted of:  The driveway leading up to the garage subsided, to a point where cars could no longer access the garage Their yard had noticeably sunk Although the home structure itself had not sunk, Pulte installed 21 Ram Jack Piers around the perimeter of the house to proactively protect the structure from future sinking Listing and cracking of the exterior yard perimeter masonry wall The damage to Lot 19 was much more extensive and consisted of:  All the same issues lot 20 experienced The front portion of the home sunk approximately 19” The interior walls and flooring were showing signs of differential settlement and major cracking Cracking on the exterior of the home Cracking and visible subsidence of the yard perimeter masonry wall To reconcile what was happening to lot 19 subsidence, Pulte Group needed to Ram Jack the home back to its original elevation and install piers. For both properties, the jacks extend to around 70’ deep to Found against bedrock. In May, Town staff procured the services of a geotechnical consultant, Ninyo & Moore, to perform field analysis. Town staff also started coordination with the affected residents, Pulte Group, the design engineers of The WLB Group, Pima County Wastewater and the Town’s Stormwater Utility. The Town staff’s initial suspicion was that since the two homes experiencing subsidence were on either side of a sewer lift station, it was said lift station’s associated service mains causing a moisture incursion into the local soil strata. However, to be sure, staff needed to take a measured and logical approach to determine the root cause through a scientific process of elimination. First, since the issue is subsidence of earth, staff needed a soil test to see if any anomalies existed. So, the Town had hired independent expert Ninyo & Moore to drill some boring holes to retrieve soil samples. These drillings were deeper than normal testing, down to 20 feet. Pulte also had their contracted geotechnical engineer, Pro-X, do the same. The results of the Ninyo and Moore boring reports for both the Town and Pima County Wastewater are provided in attachments A and B, respectively. Both reports determined that there was a native soil stratum that is loosely consolidated and reactive to moisture. The borings in and around the area also had an elevated moisture content. With the boring investigation results, there was subsidence where there was elevated moisture content in the soil. Conversely, where moisture content was normal, there weren’t signs of subsidence. So, staff was able to conclude that moisture of some sort was the cause of subsidence. With that said, and because this damage was on either side of the lift station, staff asked Pima County Wastewater to test both their gravity sewer main flowing to the lift station, as well as the force main discharging out. After a couple of months to get this testing completed, but when Pima County was done, they were able to confirm that the gravity main, the lift station wet well, and the force main out were all intact and not leaking. Staff also requested that Pima County test the surrounding soil for E.coli, which the soil samples for bacteria came back clean as well. The next source of water could only be from one or more of the following water sources: precipitation, collection, conveyance of storm water, and/or from potable water. The opinion of Ninyo & Moore is that stormwater is not a viable source because it’s intermittent and not steady enough to cause this type of damage. As a result, staff asked the Water Utility to test their mains in the area for any signs of leakage. The Water Utility tested their mains and found them to be watertight and not leaking. However, during their investigation, they did unearth an old bill to Pima County Wastewater that exhibited an unusual amount of water used (see Attachment C for a copy of said water bill). This bill, and the registered water usage, exhibited over 84,000 gallons being discharged through the water meter in just 14 hours. To put this volume in perspective, that is almost 9 swimming pools or 10 semi-tanker trucks worth of water all discharged at the same time. Town staff checked with the geotechnical consultants, and they all confirmed that this volume of water was very well the source of the moisture. Town staff reached out to Pima County Wastewater to confirm that this usage was not normal nor carried within the pipes. They not only confirmed that there was an onsite pipe break but confirmed that they had fixed another leak that was causing some subsidence issues with their access driveway. Pima County confirmed the following:  There were asphalt cracks on the pump station driveway and a subsidence of the dirt area next to the driveway identified in the late part of November 2019 that led to the investigation of the source. The pothole investigation found the water line joint leaking. It was repaired under warranty in the January 2021 time frame. With this information, staff would say the leak may have started in November 2019 and was repaired in January 2021. There was a pipe burst on the same line that broke fully open in December 2021. With all the investigative work completed, concurrence from the geotechnical consultants, and the lack of subsidence spreading to other areas, it is staff's conclusion that the leaking of the Pima County water service line for two years, and then the catastrophic break a year later, inundated the local soil, causing the damage to not only the lift station, but to the adjacent properties of 780 E Kalalau Dr. and 803 E Romsdalen Rd. FISCAL IMPACT: The Town is currently projected to spend $14,900 on geotechnical consultant fees investigating and reporting on the area. SUGGESTED MOTION: This is an informational item. Attachments Attachment A  Attachment B  Attachment C  Staff Presentation  PRESENTATION AND DISCUSSION ON VALLEY VISTA SUBDIVISION SUBSIDENCE February 7, 2024 1 Issue History What happened Timeline of events when Town became involved Why did the Town get involved Why we brought in a Geotechnical consultant & who they are Subsidence is a soils issue Ninyo & Moore is a consultant the Town trusts and has used and many times Original Geotechnical Evaluation Did original geotechnical report recognize existing conditions Testing depths and frequencies of original geotechnical study were in compliance with industry standards Remedial measures for typical industry standard of care for subgrade preparation were recommended within the original report Construction contractor followed these recommendations Post Construction Geotechnical Evaluation Hired by the Town Investigation testing depths Findings – soil found at deep testing exhibited the potential for collapse due to water intrusion/infiltration These soils conditions are not uncommon for our region Why moisture causes subsidence What can be done to protect homes built over this type of soil in the future 5 Typical Boring Log 2023 N&M Valley Vista Study Post Construction Geotechnical Evaluation •Boring near pump Station •11 feet of fill -well compacted (dense) •Native alluvium below –loose sandy deposits Issue Resolution Soils testing – moisture is the most likely contributing factor Ninyo & Moore hired by the County as well Methodical approach – what are we looking for: Moisture from Sewer/Lift Station Tested for E.coli Moisture from Domestic Water Discovery of the water bill and its importance to this issue Issue Resolution County confirming the seepage and service line break Amount of water discharged – in layman's terms: 50x the water that fell in the Aug 14th Monsoon over this area 9 average swimming pools 10 tanker trucks Developer’s Responsibilities Town’s Responsibilities Questions