on the upswing. we also worked with the mta director of off street parking to review a bivarious strategied to come up with our recommendation. so our proposal is to increase weekday rates from $3.50 an hour, to $4.50 an hour. we are looking for a $1 increase on the weekends, from fort dollarsto $5 -- from $4 to $5 an hour. we have always paid at the performing arts garage just down the street, figuring that that patronage is similar to the patronage attending newseum functions. our daily maximums will remain

the same at 25 and $28 for weekday and weekend. we have eliminated the early bird rate because nobody was using it. and our monthly rate will remain the same. if you have any questions, i would be happy to answer them. supervisor chu: this is a question, perhaps could go to either the controller or to the department. with regard to the history of this car rides, generally, paid for by issuing debt, a private fund-raising, to create the parking garage. it is currently operating as a nonprofit organization that pays rent to be parks and recreation department and we receive tax revenue from that parking garage at the moment? >> correct. supervisor chu: when does the server to the ownership of the city? >> it reverts to the ownership

of the city once the bonds or loans -- we went from a bond situation to a loan situation with refinancing. we are projecting the term of that loan to end in 2039. we would love to have the resources to pay it off earlier and give it to the city much earlier than that. right now, 2039 is the date. supervisor chu: with regards to oversight, we received a question from community members about a concern of oversight. there is concern that if we approve this, the comptroller's office may not have oversight, that the board of supervisors may not have oversight. from my understanding, nothing would change in that process. the city, the comptroller's office would continue to publish things like cpi colas, making sure that all departments comply with those requirements.

from my understanding, the comptroller's office will continue to have oversight to publish a fee schedule that would include the the within it. from my understanding, the board of supervisors will today to see these fees come to us during the budget process. is that correct? ok. great. why don't we go to the budget analyst report. thank you for your presentation. >> madam chair, members of the committee, on page 4 of our report, we point out, for a 11- 12, there is a projected budgetary shortfall for the garage of $1.2 million. if you approve these rates, it would kick in in june and would provide an additional $93,000, still leaving a shortfall of $1.2 million. it has been reported to us that

there will -- that will be worked out through deferred payments. city park serves as the parking garage operator under a management agreement. with respect to the $1 per hour increase for the weekday and weekend, we estimate that would generate sufficient revenues to recover costs for fiscal year 2012-2013, including the debt service. we consider approval of this proposed ordinance to be a matter for the board of supervisors. supervisor chu: thank you. supervisor kim? supervisor kim: i appreciate the presentation on the music concourse parking garage rates. it makes sense that we make these changes, particularly because we are not meeting the debt service payments. i think this is appropriate.

regarding section 12.20, a different policy question, i had an amendment that i wanted to propose. i support deleting this provision because i think sometimes it is necessary to charge fees for services or facilities that exceed the property's cost of providing those services, so we can help pay for other programming, but i want to highlight when we do this. it is equally import we ensure the board and public are made aware when we do have fees that generate a surplus revenue and have an explanation of how we spend those fees, whether it goes to the clubhouses and programs for youth. that is a general sunshine that i want to propose. i want to read into the record the first line which is already in the existing ordinance. it starts with, no later than may 15 of each year, the comptroller will file a report to the border supervisors one, reporting the new fee schedule,

two, identifying any fees that produce revenue which is significantly more than the cost of providing the services for which the fee is assessed and describing how such revenue is used by the city or department. i have given copies to members of the budget committee. supervisor chu: thank you. this is an amendment supervisor kim is offering to the attorney. with these amendments be sensitive? >> they are not. supervisor chu: i have one clarification question. members of the public asked about the ceqa items, the findings of ceqa in the legislation. from my understanding of it, it is really just speaking to the fact that there is an increase in fees and would not require a ceqa analysis. correct? >> we did get back from planning a determination that the legislation is statutory exempt

from ceqa because it is a fee. supervisor chu: is there anyone from the public that would like to comment on this item? eric brooks. >> good morning, supervisors. eric brooks, speaking on behalf of the san francisco green party. i want to thank supervisor kim for introducing the amendment. the context here, from the point of view of advocates for the public and park spaces being opened to the public without fees at all is that the original legislation years ago that put the consumer price index increases on park fees in the first place is not good because we should be heading in the other direction, towards not raising fees and not having any fees at all.

then for rec and park to basically have this style language in a measure that is about raising fees for a particular parking garage that would then take the controllers certification that consumer pricêykyky36y index feet raisest excessive, out of the process, is unacceptable. it is headed in that exact opposite direction of what the occupy movement has been saying, of what the activities were about yesterday, which is that more and more people are wealthier and will appear at the top. they are paying fewer and fewer taxes or things like our parks. what we should be doing to fund the park system is taxing those people, real taxes, and funding the general fund so that rec and park does not have to scramble like this to find a clever ways to gradually raise fees on the 99% who already cannot handle it

and need to be able to go to public facilities and public comments about having to pay anything, so that they and what the people can share those facilities without any barriers i would say, with regard to 12.20, it would be cleared to strike that section rather than amend it. supervisor chu: thank you. other speakers who wish to speak on item 6? seeing none, public comment is closed. colleagues, i want to reiterate, this is increasing the fees for this particular time. it does not change any of the oversight that the comptroller's office would have on fees. the concourse authority in the situation would still have to approve any changes to fees appear generally, the rec and parks commission would have to see the budget and any fee increases. this board would have to see any fee increases. there is no change in the oversight with regard to the increase in fees. i just want to make sure that is

clear for us and for the members of the public. colleagues, we have an amendment, motion made by supervisor kim for the amendments she had read into the record. can we take that without objection? without objection. as to the underlying item amended. motion to send the item forward as amended. without objection. thank you. i would like to call one other item out of order, just to make sure we are being efficient. if we could call item 11. >> item 11. resolution approving and authorizing the execution of the third amendment to the masters tournament agreement with pga tour inc. for the use of harding park golf course for certain professional golf tournaments. supervisor chu: thank you. we have, and philip ginsburg with recreation and parks. >> good morning, supervisors.

in april 2002, the city entered into a master tournament everett with the pga tour to bring high- profile golf tournaments to harding park. the agreement has been previously amended twice, first in april of 2004, and then again in may 2007. this third amendment, which is before you today, simply address is necessary scheduling changes and possibly extend the agreement by one year. the current agreement as amended states the pga tour will hold six tournaments at harding over a 15-year period beginning january 1, 2005. he proposed a third amendment increases the number of tournaments to date, with the possibility of an night tournament, if the president's cup is held again at harding in 2021. this discussion was initiated by the pga out of a request to change some of the scheduling

components within the existing agreement as laid out. the result of negotiations and agreements before you will result we hope in net revenues from 2013 through 2021, ranging in net revenue increase of 5 under $21,000 to $1.2 million. the pga tour has agreed to increase their reimbursement rates for this and has agreed to make capital investments in harding. overall, we believe this is a positive amendment, a positive change to the second amendment. i do think it is worth noting, our relationship with the pga tour has been good in many ways. harding is considered to be one of the top three courses in the united states of america. while we try to have these tournaments every couple of years at parting, which increases the courses profile, it also results in what is a world class experience for our everyday san franciscans who golf there the rest of the year.

fees remain very affordable. the tournaments' themselves bring a significant amount of its economic impact to the city. the pga tour estimates the president's cup in 2009 brought $76 million worth of economic activity to the city. in just a couple of weeks, the u.s. open will not be on our course, but at the olympic club, where they estimate $150 million in overall economic activity, impact for the city. the -- there are different types of toward a mess that we have at harding. we have had a president scott, which is perhaps the highest profile international tournament we could possibly host. those tournaments will be more expensive for us to put on because of the maintenance associated with us in hosting the tournament, but we have also recently started holding champions tour events, which are for their over 50

professional tournaments, where they have proven, i think, much easier to put on and produce. another net positive of the overall agreement for us is -- i think there are some representatives from the tour who are here to speak. the tour events raise money for the first tee. that is an organization that teaches life values through gulf. -- golf. since we started hosting tournaments at harding, we have been able to generate about $1.8 million for the first tee, which has a site at various schools. it is really an incredible mechanism to give kids who might not otherwise have an opportunity to be exposed to the sport, an opportunity to learn it and the values associated with it.

the pga tour came to us to ask for some scheduling flexibility. we think we are presenting an amendment to you which actually increases the reimbursement rates for the department and for the city as a result of that, and brings more world class professional golf to san francisco. supervisor chu: thank you. let's go to the budget analyst report. >> madam chair, members of the committee, on page five of the report, we point out, under the existing master tournament agreement between the city and pga and rpd, to date, the net loss for holding the golf tournament is $667,113, including $141,000 under the first amendment. $526,094 under the second amendment.

that was the two tournaments with a balance of -- a balance of two tournaments basically breaking even where the department recovered its costs. on page 9 of our report, as shown on table for, under the proposed third amendment, from 2013 until 2021, based on the data that the rpd submitted to us, we estimate rpd could realize a net gain in revenues -- from $521,000 to $1.2 million. that depends upon which options the pga tour and looks for holding the tournament at harding park. we also point out, there has been no economic analysis to

date quantifying the economic benefits of holding the pga tournament tour events at harding park, including increased tourism and the resulting economic activity. we are economic activity. we are simply stating that there is no study documenting the precise amount of the benefits. on page 10 of our report, we estimate that the, as i stated, although we do estimate that there will be a net gain between those $500,000.10 $0.2 million, for the additional tournaments' to be held from 2013 through 2021, there are no assurances that these gains will be realized by the city. any loss to the fund made directly impact general funds in the city. first of all, approval is a matter for the board of

supervisors, but we also recommend that you request the department to submit a written report to the budget finance committee at the conclusion of the tournament that they would hold at hardy park in order to report on the games, losses, or any measures that could be taken if a loss was reported. supervisor chu: thank you. if there are no questions from the committee, -- for the committee, let's open this up to public comment. i have two public comment cards. if there are other members of the public of wish to speak, please lineup in the center aisle. >> good morning, supervisors. my name is tom clark, executive

director of the events held here in the park. we have had a great relationship. phil and his team, we have learned a lot and, in long way. the golf course is in spectacular condition. rounds of golf continue to increase. as of today we are 12% above last year at this time. overall, gulf is on the upswing at harding park. the pga tour, really, having events here at harding park has been fantastic, because it has, as phil mentioned, it is our largest international event for these four day events. as you move forward with charles schwab cup events, the champions

tour that they mentioned, it will also continue with our pga tour events as well, as you can see on the proposed amendment. on behalf of the pga tour, we are looking forward to providing additional financial assistance on the first tee of san francisco, allowing us to showcase san francisco to millions of golf fans on the golf channel, nbc, and provide an impact for the city. supervisor chu: thank you. just a quick question for mr. clarke. one of the things that harvey the budget analyst mentioned would be for you to perhaps share with us some of the economic benefits to the city larger than the tax revenue that comes in directly from fees. it would be interesting to understand the economic impacts in what they might be.

offline, if you could share that information, that would be helpful. >> absolutely. thank you. >> my name is sandy tatum. i have been involved in the whole process of resuscitating and renovating harding park. in my 55 years in the city, i was satisfied that it was one of the most available, most effective assets the city could possibly have. i saw it turn into a patch of weeds. i could not bear the thought that that asset was literally going to go down the drain. we were able to, one way or the other, resuscitate and renovate that golf course so that it stands today as a priceless asset. its value has two basic elements. one is as a recreational

resource. gulf, as i have experienced it, as well as millions of others, is a priceless recreational asset. it is a life and cancer and extender. it is a fact that people who play golf live substantially longer than people who do not. and it has another very important factor, this renovation. it created a facility for a headquarters for the first tee program here in san francisco. that program uses gulf and uses the attraction of learning to play golf to instill in these people, particularly these kids the core values that they are going to need to be effective, constructive human beings. what we have done with that program is we have gone into

schools in visitation valleys, on to huge, and used playgrounds, and we have established satellite programs that are absolutely incredible. it has worked very effectively. 5000 kids in this city are getting the benefit of that development. thank you very much. supervisor chu: thank you. are there other members of the public at which to speak on this item? seeing no one, public comment is closed. colleagues, the item is before us. supervisor kim? supervisor kim: i had some follow-up questions. i was happy to hear the pga is increasing the number tournaments' it wants to hold in san francisco. i understand, from talking to stafford art pd, there are

kickups as we learn how to manage a golf course on par with tournament courses. it is good to see that in the future we project revenue funds on top of potential tourism and increased fees that may have at harding park. obviously, there is no study, perce, but from your perspective, what have you seen? >> we have seen a couple of things. as tom made note, we have seen this year a 12% increase in the rounds being played, which means we are seeing the benefit of the extra attention out there. gulf generally dovetails with the economy. over the last few years it was down around the country. you are seeing what is happening

in particular, where we are tracking quite well. more importantly, for the average city -- san franciscan who plays golf, they are able to enjoy a truly unique experience. it is very rare that anyone around the country has the ability to utilize a public golf course of this quality. harding has achieved that level of quality where we have had some of the greatest golfers in the world who have publicly talked about how fantastic the golf course has become. i with the one to credit my staff. we have a variety of trades out there doing a fantastic job. they are very inspired and have done a fantastic job keeping this the jewel that it is. but the partnership with the tour that is not stated in any

of the reports, it was part of the letter of the agreement attached to the master, which is that we were provided with free economic support. the pga has given us a full-time person to help us to learn better practices, keep the golf course where it is, and ultimately reduce maintenance costs. over time you will see as hosting these tournament more efficiently. the advantage of having more tournaments', one every couple of years, is that we will be able to keep the golf course at a level that is special for san francisco to use year round. supervisor kim: what are the fees as in relation to other golf courses? is there a comparable private golf course? >> it ranges from $15 for a junior resident, up to $47 for a

san francisco resident. senior play is $32 and on the weekend it is a bit more. $17 for a junior -- $21 for a junior. supervisor kim: those other fees at harding golf course? >> those are higher than lincoln in glen eagle, but significantly lower than a private golf course. supervisor kim: how much would it charge for a compatible course? >> andy? [inaudible] >> [inaudible] we can certainly get that

information for you. there are various extremes. but private golf courses are going to be significantly higher. more than a few hundred dollars to play a round of golf for a non-resident. many of the clubs have memberships that you pay up front for the privilege of playing golf. it is tougher to tease out a daily round. supervisor kim: i do not play golf. in glad that we have these affordable courses of this caliber. that it is one of the benefits of this. by the way, i am a huge fan of the first tee program. i remember when it opened in that empty, concrete space, of which i think became better utilized with this investment. it is a great resource in that area. i know that at the time the

principal was very excited to have this additional program in his school. i am glad to see that the investment will continue. supervisor chu: colleagues, is there a motion to send the item for board of recommendation? we have a motion to send forward with recommendations. done without objection. thank you. ok, item number eight, please. >> item #8. resolution authorizing the lease amendment with sixth street baldwin house, llc, of approximately 1,932 rentable square feet of ground space located at 72-6th street for the san francisco police department. supervisor chu: this item is brought to us by the mayor and supervisor kim. supervisor kim, did you have any opening comments? supervisor kim: i know that bill barnes is here from the supervisor's office to speak on this item. i know that i spoke on this when i introduced it a couple of