Town Attorney Tobin Rosen gave an overview of agenda item number five (5) and stated that at the February 23, 2011 Town Council Study Session, the Council directed staff to bring forward for discussion, a policy where the Council could appoint one or more members of the Council to be present during negotiations with the Public Safety group during negotiations which occured on an annual basis. The Memorandum of Understanding (MOU) was negotiated pursuant to the Town’s meet and confer ordinance found in section 4-1-8 of the Oro Valley Town Code. There was nothing in the ordinance that would prohibit Town Council participation in the negotiations or discussions. In its current form, the ordinance did not call directly for Council participation but rather had the public safety negotiations group meeting with a management group and then presenting an MOU to the Council for consideration and action. However, there was nothing in the ordinance itself that would prohibit the Council from designating one or more members as a liaison to the MOU negotiations.
Councilmember Hornat said the intent was not to be a negotiator but rather have a Councilmember in the room to hear both sides. The liaison would listen to both sides and would not participate in negotiations.
Councilmember Garner felt that it would set a bad precedence and it would politicize the whole activity. Since Council would become the arbitrator for any impasses during the negotiations, the liaison should not participate or cast any votes regarding the MOU since they would be privy to information and discussions that the rest of the Council would not be.
Councilmember Solomon felt that it would be irresponsible for Council not to be present during the negotiations as a neutral observer.
Councilmember Waters felt that there was no purpose in having a liaison present at the MOU negotiations since Council okayed the committee that conducted these negotiations.
Vice Mayor Snider clarified that the liaison would strictly be used for MOU issues, not all police matters. Councilmember’s had been present during MOU negotiations in the past. The liaison would not speak or offer any input.
Councilmember Gillaspie stated that a Council liaison to MOU negotiations would undermine the management team and influence the discussions. If there was an impasse, he would expect the union members and management to come before Council and discuss the impasse.
Mayor Hiremath said that the scope of discussions changed when a Councilmember was present in the room and it would undermine the political process. He noted that the Town of Marana did not have a Council liaison present at MOU negotiations.
Oro Valley resident Don Bristow felt that there was no need for the activity and it would defy the element of trust within groups.
No vote was taken.
Aquatics Manager Catherine Atalla introduced Ken Ballard, President of Ballard-King & Associates, Ltd and Doug Whiteaker, President of Water Technology Inc.
Mr. Ballard said that a market analysis was first completed in order to see who the pool was currently serving in order to determine opportunities for the future. The three service areas that were analyzed were: Town, Secondary Service Area, and Tertiary Service Area.
Mr. Ballard discussed other providers who had aquatic services in the area. These other providers included: City of Tucson, Pima County, Town of Marana, non-profit pools and private aquatic facilities.
Mr. Ballard highlighted possible opportunities for the Oro Valley pool which included:
-Only two other 50-meter pools in the area
-Existing pools did not have a strong recreational orientation
-HOA pools serve different markets
-A high performance competitive pool would give Oro Valley a strong identity
-There was a market for visitors and second homeowners
Mr. Ballard discussed possible constraints which included:
-The number of conventional pools in the area
-Easy access to a variety of aquatic facilities
-Existing facilities had very low fees
-Swim teams were paying low fees
-Expense of a high performance competitive pool
-50-meter pools required a substantial operating subsidy
-The limited number of swim meets
The study also included an aquatic event analysis which listed types of events that Oro Valley could attract either with the existing pool or with improvements to the pool. The aquatic event analysis included:
-Exploration of a world class aquatic event venue
-Regional and state meets were realistic
-Hosting 2-3 such events a year was possible
-These events would have a positive economic impact on the community
As part of the municipal pool study, input was received from Town Council interviews, Town Staff interviews and focus groups which consisted of current facility users from the competitive side as well as users from the recreational/program side.
The market/current users of the pool consisted of:
-Regional orientation
-Lacked a recreational appeal
-Greatest year round users were swim teams
-There were a variety of program offerings
-A number of swim meets were currently held
-The pool was used by a variety of age groups but mostly youth
-Difficult to support competitive swimming, programming and recreational swimming at the same site
Mr. Whiteaker gave an overview of the physical condition of the pool. He reported that overall, the pool had been very well maintained by staff.
-The mechanical system was in good condition
-The tank was in good condition but was too shallow at one end
-The wading pool was not viable
-The single tank required a single water temperature
-The greatest issues were with the support amenities
-Competitive swimming had a number of issues
-Was a perception of inadequate parking
Mr. Ballard noted that the pool was forty (40) years old but was still functional and would not have to be completely redone. The assessment also looked at the pool operations and concluded:
-Low cost recovery
-Very little promotion or marketing
-Controlling costs had resulted in limited hours and services
-Utilized Ellis Lifeguard training program
-External programs paid only 20% of revenues to the pool
-There was a demand for more lanes during high use times
-Pool must balance the aquatic needs of the community
Mr. Ballard discussed possible future directions of the pool which consisted of:
-Who should the pool serve? Local or regional?
-How important was increasing the cost recovery level?
-A world class competitive pool would require a significant capital investment
-A world class competitive pool would likely increase the operational subsidy which would require an equity partner
-Regional and national swim meets would be difficult to attract, would not be a revenue producer but would provide a strong economic impact
-Basic improvements to the facility were necessary and fees needed to be increased
Mr. Whiteaker discussed the recommended Phase I improvements which included:
-Locker room renovations
-Pool check-in relocation
-Expansion of the pool fence
-Improved lighting
-Removal of the kid’s pool and the addition of a splash pad
-Improved and expanded pool deck
-Add shade and furniture
-Improved pool gutters and depth
Mr. Whiteaker discussed the recommended Phase II improvements which included major upgrades & significant increases in attraction value:
-Assumed all of phase I was accomplished
-New changing facility
-New recreational pool
-More shade structures
-Additional deck furniture
Mr. Whiteaker noted that upon completion of Phase II improvements, the Town could conduct a competitive swimming meet and not have to close the swimming pool down for the rest of the community.
Phase III recommended improvements would expand the competitive venue. These improvements included:
-Assumed that phases I & II were accomplished
-New 6 lane x 25 yard lap pool
-Drop slide added to this pool
-Additional seating for the competitive pool
-Timing system and scoreboard installation
-New shade structures
Phase I would take approximately 2-3 months to design, 3-4 months to build and would cost approximately $1,999,680.
Phase II would take approximately 3-4 months to design, 4-6 months to build and would cost approximately $2,994,807.
Phase III would take approximately 2-3 months to design, 3-4 months to build and would cost approximately $1,200,364.
The total for all three phases was $6,194,851.
Mr. Ballard stated that in addition to the capital costs, the study also looked at the operational implications of the three phases. Phase I would produce a revenue of approximately $13,295. Phase II would produce a revenue of approximately $8,971 and Phase III would produce an expense of approximately $117,150. If all three phases were implemented, a net cost to the Town of approximately $94,884 would be realized.
An economic impact analysis was also calculated as part of the study. Phase I would produce approximately $111,490; Phase II would produce approximately $375,440; and Phase III would produce approximately $2,386,160 in economic dollars spent in the area.
Mr. Ballard discussed possible capital and operations funding which consisted of partnerships, fundraising, grants/endowments, naming rights and Town funds.
Mayor Hiremath inquired how much cost was recovered by current fees.
Mr. Ballard replied that in general, pools that had one large conventional body of water usually did not have a high cost recovery and also, the current pool fees were low which was typical for pools in Arizona.
Mayor Hiremath left the meeting at 7:20 p.m.
Councilmember Waters congratulated Mr. Ballard and Mr. Whiteaker on an excellent study and asked whether or not if the improvements were made; would there be a demand for the renovated pool?
Mr. Ballard replied that the Town would have to market the pool in order to bring in more users, especially to bring in major competitive swimming events.
Councilmember Garner asked what it would cost to replace the pool with a comparable pool in today’s dollars.
Mr. Whiteaker stated that to replace the current pool, it would cost approximately $3.5 to $4.2 million dollars.
Councilmember Garner was looking for a blending of the phases. He wanted to see a level of comfort where families could bring their kids to a safe environment. He would also like to see the locker rooms renovated in phase I and eliminate some of the add-ons such as a kid’s pool area. As revenue started to increase, then the extra amenities such as a splash pad could be built.
Mr. Whiteaker stated that there was a blending of the phases such as during the recommended removal of the wading pool, there would be a family recreational amenity available for use. This would provide a blend between recreational/family users and the high-end competitive users.
Councilmember Hornat asked what costs were currently not recovered by the pool.
Mr. Ballard stated that in the FY 09/10, the loss was approximately $400,000.
Councilmember Hornat asked how much would the annual loss be reduced by if the phase I improvements were made.
Mr. Ballard stated that with the phase I improvements, there would be an increase of approximately $13,295 on the operational side. The indirect economic impact from completing phase I would be approximately $111,490.
Councilmember Solomon said it was unfortunate that the item was being discussed at this time in light of the current budget deficit. It was important to take a step back and determine what the function of the pool was and what was the Town's role in operating and maintaining the pool. There seem to be a bias toward swim teams for generating revenue. The number of years it would take to recoup the costs of the improvements would be enormous.
Councilmember Waters said that the municipal pool study was intended to explore an economic engine generated by the pool for the enhancement of recreational activities in Oro Valley. In order to attract visitors to the community, there must be things for them to come and see.
Councilmember Gillaspie commended Mr. Ballard and Mr. Whiteaker on a great study and presentation. He felt that in order to make things happen, money had to be spent. Even though the pool was not a source of revenue, it could be utilized as an economic development engine for small businesses in Oro Valley. He also felt that if the pool had a splash pad or other amenities, it would help draw more families and children to the pool.
Councilmember Garner stated that swimming ranked fourth in the nation and third in Oro Valley and surpassed baseball, softball, running, etc. He would like to market the pool by leveraging the expertise of Olympic swimmer Nancy Neimeyer.
MOTION: A motion was made by Councilmember Gillaspie and seconded by Councilmember Waters to accept the municipal pool feasibility study.
MOTION carried, 6-0 with Mayor Hiremath absent.