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Lan lone on & Cathe��'
February 28, 2019
Mayor Joe Winfield
Town of Oro Valley
11000 N La Canada Drive
Oro Valley, AZ 85737
Dear Mayor Winfield,
We realize the enormity of your responsibility to make the right decision with respect to
the Community Center/golf courses since it includes so much more than just those
properties around the golf course. Too, after the two public meetings to discuss and
educate the public and Council, it is painfully evident that most all have no concept of
what to do except to say either close it or leave it open with no clear-cut objective as to
what owning this property means to Oro Valley except, since purchased, it's costing too
much to operate.
Even though we don't disagree that the operations are costing too much to keep open,
we do believe alternative options should be reviewed. Still amazing to us is that all of
`this' was purchased for a million dollars. To have built a new Rec Center, we heard the
price tag was right at $20M. Right there is an unbelievable savings that no one seems to
consider when deciding on the future of this purchase. Yes, the Center does have some
repair and ADA compliance issues, but from our vantage point, the improvements needed
won't cost anything near $20M.
As for the golf courses, my wife has lived in one of the patio homes whose backside is on
the main entrance to the Center. With a view of the number one hole on La Canada for
over 25 years, she knows the course activity has greatly dropped off. We both feel it will
probably never be as active, again, either. However, with no new courses being built in
Pima County and some already closed for financial reasons, with the population
continuing to increase in Oro Valley, Marana, Catalina and everything in between, this
course being one of the most beautiful courses in the Pima County area will become more
sought after, especially more so now that the rounds are affordable to a greater population
of golfers. For those that live around the course, the additional plus is that the courses
have never looked so good... not even in the beginning when the activity was higher. Yes,
it has cost to keep it at this level of play, but we believe given some time, the word will get
out to other golfers.
MUNICIPALITIES AND THE PRIVATE SECTOR doing business together is normally like
putting water and oil together. They don't mix. However, having had a 25 -year lease with
Pima County as the fixed -base -operator of the Avra Valley Airport during the late 70's,
early 80's, my wife can tell you first hand, it can work. It's our understanding the City is
already doing this with the tennis courts and should consider doing it with the work-out
area, the restaurant, and also, the golf courses.
LEASING OUT THE WORK-OUT AREA: Find a franchise that sees the benefit of having
their business in a Community Center. But let them bring in the equipment that they can
depreciate and let them have a good percentage of the revenue. The City could eliminate
salaries and equipment purchases/maintenance leaving the overhead of the space
occupied by them plus the upkeep on the locker rooms. The liability insurance would
probably go down with this arrangement, also.
LEASING OUT THE RESTAURANT: Yes, we know the restaurant is a sore -point, but if
you look at the view from the restaurant compared to any other restaurant in Pima County,
bar none, there is nothing that compares to the Community Center's OVERLOOK. We
believe this facility is the best kept secret not only in Oro Valley but in all of Tucson ... to
no one's advantage. We just ate at Sullivan's over the weekend, paid a hefty tab ... with
absolutely no view. Get a franchise like them or The Keg, making the modifications they
wanted, it would be a win-win. Spend even half of the $2.5M that was going to go towards
revamping the eating area downstairs to improve the kitchen and fix the acoustics, they'd
have no brick `n mortar expense, only a lease and the City would have a 5 -star restaurant
or one with high marks that would bring in activity to the Center equivalent to a plush
country club. You can visualize the positive ripple effect of new employees, new activity
being brought into Oro Valley, etc. It's a given the new occupants would do the right kind
of marketing that is needed for this place. With the 25 -year lease at Avra, my wife built
aircraft storage hangars she rented out, put in a restaurant that was leased out and put
up a building for a 135 charter operation that was also leased -out ... all of which brought
in more business to the airport and to her fixed -base -operation's bottom line. Don't
overlook this same type of opportunity for the City.
LEASING OUT THE COURSES: Has anyone looked into this option for the golf courses?
Once you get a new irrigation system in, at the expense of the City, lease -out the course,
split the cost of the watering expense and golf carts with the revenue going to whomever
leases the course in whatever configuration that ends up being a win-win for both the
leaser and the city. They would be responsible for the re -seeding for the seasons;
operating the course daily and marketing and arranging for tournaments plus work with
City in putting on events like the Spooktacular. For the City, this would eliminate all the
salaries related to the golf course and a big chunk of its maintenance, reducing operating
expenses maybe by half. Too, by putting the marketing responsibility on those that have
golf course experience, they have the know how to market the course using their dollars.
This arrangement also pretty much reduces the need for constant audits. Their success
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is dependent on their marketing. Again, what a sweet heart of a deal to not have the total
expense of operating a golf course but have a golf course like ours to make a profit.
Of course, the City would have the entrepreneurs with signed contracts for each of these
three suggestions before expending up -front costs to make the needed improvements.
Once each were operational, the expenses currently being incurred would be greatly
reduced so the general fund wouldn't have to be tapped into. The biggest pluses would
be the property values wouldn't decline and the City would realize the return on this
investment that was originally projected. All of this, in time, would make the City a
premiere example of a municipality and private business successfully providing a venue
for new residents and new businesses wanting to establish in Oro Valley.
We have two other suggestions. First and foremost, organize a Mayor's Task Force to
do the leg -work of determining the cost/benefit of different alternatives, to see what the
purchase would `look like' with each option including the lease -out options. It's our opinion
this is the only way to prove or not prove to the Council and residents what is best for
everyone. Attached is a guide on how to start this Task Force.
The other suggestion is to put a golf pro on the City payroll at a salary to draw a top-notch
specialist on how to run a golf course. It can't be repeated enough, it takes someone not
in government who knows bottom-line business operations to run the golf course properly.
To even begin to fairly and honestly determine what decision(s) should be made with
respect to the Center/courses future, certain members of the City Council along with some
of the Town's staff are doing a disservice to our whole community by continuing to bash
this purchase or the intent of its purchase. This only flames the fires to divide our
community. Further, for some to continue to attempt to negate the purchase without
looking at the whole picture, the consequences of the alternatives along with the long-
range planning of Oro Valley is reprehensible. Without facts more than numbers on a
page, to say we won by closing everything down, you lose by not knowing what the
potential of this purchase could bring to Oro Valley.
Thank you for reading our letter. It's hoped that some of the suggestions offered will be
reviewed as possible fixes for the City's investment. Although we no longer golf, we know
it is an amenity that should be included in a package of services made available to the
residents of Oro Valley and Pima County. We applaud your willingness to listen to the
residents and to learn the business operations of the asset purchased by Oro Valley with
the positive anticipation that you and the Council will make the best decision for the present
and future of the City and its residents.
Respectively,
�w & 61 1" Z" yi"e
Attachment
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OUTLINE OF SUGGESTIONS FOR A MAYOR'S TASK FORCE
Presented by Cathey Langione
February 28, 2019
I believe it is worth repeating to the readers the government's responsibility to
the residents of their sovereign.
Governments are responsible
1. for serving the needs of their citizens by focusing on city infrastructure,
basic services and safety concerns; and,
2. for providing essential services such as water and waste removal;
3. encouraging local business growth to increase employment opportunities
and helps reinvest tax revenues;
4. overseeing public safety concerns by working with the law enforcement
and community agencies; and
5. supports citizens to get involved in government activities to help make
decisions regarding quality of living conditions often engaging citizen
advisory boards or forming a public task force.
Rather than continuing to struggle with the abundance of 3 -minute, passionate
pleas to keep the Center/courses open compared to the few, but equally
passionate plea to close them and the staff juggling figures from the past to
project for the future, we feel it time for everyone to put their thinking caps on.
MAYOR'S TASK FORCE: After attending 2 meetings, it is evident that neither side of the
fence has a good idea of the pluses and minuses of keeping open or closing the
Center/golf course. No one has yet to say out loud this is our question that needs an
answer: `What is best for the Town of Oro Valley and its residents?' Assigning a task
force of individuals who have separate agendas provides the conduit to collectively do
the research and uncover the facts for productive dialog. By them identifying the
alternatives and associated costs, it accords credence to the final decision made by the
Council to present to the residents
WHO COMPRISES THE TASK FORCE: Limit the number of the group to no more than
12 with an equal number from each sector being impacted by what happens to the
purchase. It should include at least a resident whose property abuts the course; one
whose doesn't; the owner of an established business located in Oro Valley, the City
Manager or her appointee with knowledge of the City's interest; and, a member from each
of the main services offered at the Center (golf; recreational activities; and the
OVERLOOK). Also, have a facilitator, preferably from the privates sector familiar with the
operations of a Task Force; plus, and individual who could assist in doing the research,
keep all of the task force's research findings and meeting notes organized that would
assist in developing the package of alternatives to the Mayor. This person should be well -
versed in Excel and Word or equivalent.
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HOW TO SELECT MEMBERS OF PUBLIC TASK FORCE: Believing you, Mayor
Winfield, to be fair and open-minded as far as the eventual decision to the operations, it
is highly recommended you make the final decision on the appointees.
EDUCATING THE TASK FORCE: As an entrepreneur who has contracted with a
government agency, in my opinion, it's imperative that one of the first sessions be
dedicated to reviewing the difference in government, fund accounting and business,
bottom -fine accounting. Until these two accounting methods are adequately understood
by all on the task force, it will be almost impossible for the group to accurately present
alternatives to the Mayor.
AGENDA FOR FIRST MEETING OF TASK FORCE: After the accounting lesson, the
group should prepare a "T" account for the relevancy of the purchase. By each presenting
their pluses and minuses on one `T' account, probably for the first time, all factors affecting
the passions of this purchase are in one document. This will be the source from which the
different alternatives will be developed and analyzed. The below example combines both
the Center and the golf courses to give an idea of how a "T" account would look. However,
it is recommended to make two — one for the Center and another for the courses.
GAINS FROM PURCHASE
DISADVANTAGES OF PURCHASE
Property appraised at $3.25M with $42M
The $1 M purchase required a Y2 cent tax
amenities was purchased for $1 M.
increase to subsidize theoperations.
A 45 -hole, premiere municipal course is
The golf course irrigation system needs to
now available to a larger number of
be replaced to assure proper care of the
residents and customers from other areas
course and to reduce water expense from
of Tucson at reduced rates that does not
current leaks.
require membership.
The Center eliminated the need to build a
The Center needs to be upgraded to
$24M recreation center that includes an
comply with ADA regulations which
Olympic -size pool, tennis courts, work-out
includes major modification of the main
area and eating facilities.
entrance and the addition of an elevator,
at minimum.
The package is an amenity for the TOV for
The 25+ year old building needs repairs
pulling in new businesses and luring new
resulting from years of neglect.
homeowners that provides affordable
recreational services.
The location is accessible to most TOV
There is no public transportation that
residents, now with a stop light for safet .
currently services the location.
The OVERLOOK is an attribute to the
The OVERLOOK has yet to break even.
Center for fine dining and food service for
those using the facility.
Recreational functions are now made
There is not enough revenue supporting
available at an affordable price to not only
business to justify providing golf, tennis,
TOV residents, but also to the Pima
swimming, workout center and food
County community.
service.
A
By doing this small example, it becomes very clear that there are numerous factors
associated with the future success or failure of this $1 M purchases. All should be listed.
The next step would be to list them in categories with main headings that become evident
by preparing the list. The main headings for each group will be the basis for reviewing
the alternatives. So far, just from observations of the two meetings, the below alternatives
are what each of the main categories determined in the `T' account should have answers
in the way of tangible costs and intangible pluses for the City.
SUGGESTED ALTERNATIVES FOR THE PURCHASE TO DO COST ANALYSIS
BASED ON INPUT FROM TOV AND FROM RESIDENTS:
• Keep the purchase in the original format.
• Keep the purchase, but close or modify present functions.
Modifications listed with associated costs
• Dispose of the purchase by selling it.
• Selling parts of the functions including the land.
• Replacing functions such as reducing the course size.
Applying associated costs to terminated functions.
Now, the task of applying line item expenses and revenues to each alternative with many
being used in more than one alternative. Do the same with revenues.
The task force would present the top two or three alternatives to you Mayor which would
include a cover sheet providing in bullet form, a listing of the pros and cons along with the
detailed, supporting documentation. After you've had an opportunity to review these,
before going to the Council, it would be a good idea to first meet with the task force
facilitator to answer your questions. Although it might be more democratic to have the
Council then present the alternatives to the residents for a vote, this is not my
recommended way to make the final decision on which alternative.
I believe the Mayor should make the final decision on which alternative to present to the
Council for a vote. Yes, do present it to the community in an open meeting, but by this
point, the results should be somewhat predictable assuming the task force keeps the
community informed as they do their research and analysis. These are justifications for
the Council deciding:
1. They have been voted in by their constituents so should be making decisions for
the benefit of the voters.
2. They now have more knowledge than the majority of the residents so will make a
better decision than residents who have limited knowledge.
3. Finally, a joint decision by the Council would hopefully eliminate the `fence' of
animosity that has developed in the City between those for and those against the
purchase.
Finally, although a time line should be established to have different phases of the research
presented to the Mayor and Council, it should be adjustable since a final date set
arbitrarily prevents sound decision making being the priority.
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If you would like you discuss any of what we have suggested in our letter, we would be
pleased to meet with you at your convenience. As actively as some on the council are
trying to getting rid of this purchase, we are actively wanting the investment to remain
not openly operational but at considerably less cost than is presently hurting the City.
We realize you will be receiving all sorts of suggestions, alternatives and even strategies.
With our letter and ideas, it is not our desire to muddy the water for clear, decisive decision
making as you follow the process of finding the best match for all involved. However, we
can't emphasize enough that our biggest concern is what the decision will do to the Town
of Oro Valley for the present but for the future, too. Of course, if you make the choice we
feel would be the best, which would be some way to keep the Center/courses open, we
know our property value will not be adversely affected. If the decision goes the opposite,
you know without even putting a pencil to this, the property values will go down as will the
Oro Valley image. Maybe there are some ideas in here that might help.
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