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Supervisors hear hours of testimony as debate over San Francisco municipal golf courses continues

San Francisco Board of Supervisors Budget and Finance Committee · April 25, 2007
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Summary

Supervisors held an extended public hearing on possible management changes for six municipal golf courses, with Rec & Park staff outlining five policy goals and options and dozens of residents, labor representatives and environmentalists urging caution, more study and alternatives to outright privatization.

Supervisor Jake McGoldrick opened a hearing on the future of San Francisco’s municipal golf courses, saying he was “essentially very concerned” that earlier assumptions tied to investments at Harding Park had not produced the projected revenues and that the city now faces a growing general-fund subsidy. McGoldrick said the city must explore “creative solutions” before giving public land to private managers.

Dawn, a planning director with the Recreation and Park Department, told the committee the golf fund was created in February 2002 to segregate course revenues and that revenues have fallen while costs have risen. Staff identified five policy goals: eliminate the general-fund subsidy, steward public open space, ensure livable wages and benefits for course workers, keep golf affordable for residents, and provide a high-quality golf experience for users. The department outlined five scenarios the commission asked it to model: status quo; a nonprofit management lease; adopting National Golf Foundation (NGF) recommendations with increased maintenance and capital financing; raising fees; and course closure with Lincoln and Sharp Park named as likely candidates.

Supervisors pressed staff on underlying assumptions and data. The department said recent green-fee increases at Harding helped revenue but that expenditures — including higher labor and overhead costs and clubhouse operations — were substantially above early projections. Staff put the current general-fund subsidy at roughly $1.4 million and projected that, under a status-quo baseline, that figure could grow to roughly $3 million–$3.5 million over five years unless changes are made.

More than two dozen members of the public spoke, offering sharply differing views. Schoolchildren from Presidio Hill School asked supervisors to preserve parks and fields for youth. Neighborhood and recreation groups, including the Coalition for the Equitable Use of Open Space, presented a petition they said had over 1,600 signatures opposing the transfer of four courses to a nonprofit for $1 each and urging a professional study of alternative uses and costs. Labor representatives — including members of the union representing greenkeepers — warned privatization typically reduces wages and benefits and urged the city to retain control. Environmental advocates highlighted endangered-species habitat and drainage concerns at Sharp Park and urged that ecological impacts be a factor in any decision.

City staff and supervisors discussed immediate options to boost revenue without changing ownership: renegotiating the Kemper management contract at Harding Park, expanding advertising and sponsorship opportunities (subject to existing park prohibitions), marketing food and beverage and rental revenue, and exploring weddings or tournament site rentals. Rec & Park staff said they had replaced regional management at Harding and that the NGF evaluation suggested room to reduce reimbursable management costs; they said more detailed financial scenarios and elasticity analyses will be presented at an upcoming commission meeting.

After extended testimony and discussion, the committee agreed to leave the item open to the call of the chair so Rec & Park can return with more detailed scenarios and options and the budget analyst can prepare additional analysis. No formal transfer or privatization action was taken at the hearing.