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Friday
Oct282011

"Taxpayers Left To Pay U.S Open Tab?"

Delia Gonçalves of WUSA TV reports on Montgomery County wanting more money from the USGA for unanticipated overtime pay from this year's U.S. Open at Congressional.

The overall cost of Police and Fire overtime was $747,560 but the US Golf Association only reimbursed the county 10% leaving a balance of $678,265.

"I thought it was a fair deal, was it the best deal? We'll never know the answer to that," said the county's Chief Administrative Officer Tom Street.

"Other jurisdictions (who held prior U.S. Opens) had a better percentage," said Committee Chair Phil Andrews, "that's a whole lot of money and we're in a tough economic time.  We need to get a better reimbursement rate because that money could have gone to some valuable programs."

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Reader Comments (27)

That's it for Congressional. They will now be black-balled like Bethpage has been after NYAG Cuomo forced the USGA to honor all tickets for the Monday rain date.
10.28.2011 | Unregistered CommenterDel the Funk
Seems like this detail (% vs. $) should have been hammered out months before the event. In my experience, once those USGA trailers leave the site, all proceedings are over. This year's open was such a disaster (except for Rory) that it pains me to be reminded of it.
10.29.2011 | Unregistered Commentertcc
A budget that didn't work, with the words "fair" and "Congressional" involved. You can't make this stuff up.
10.29.2011 | Unregistered CommenterOld Hornet
And what was the economic benefit to the area? Certainly many times the amount of $678,265.
10.29.2011 | Unregistered CommenterRM
What about all those $10 plastic cups of beer?
10.29.2011 | Unregistered Commenterrb
Sounds like a shakedown by the county, which is not surprising based on that County (i live nearby)
10.29.2011 | Unregistered CommenterBrianS
Not sure why the fire department was involved and then again why do you have to pay overtime?

It's typical government mis-management. How is it possible to under estimate the need for police when it's a well known 1 week event, during the day?
10.29.2011 | Unregistered CommenterJSS
This county is run by buffoons. why didnt they call up the police chiefs from the towns that held the last three us opens and ask them "hey, how much did it cost you? what did you get out of the USGA?

why didnt they tell the usga to pound sand on a $69,000 reimbursement rate?
10.29.2011 | Unregistered Commentersmails
Just think what the bill would have been had the POTUS shown up.
10.29.2011 | Unregistered CommenterCheeks
As far as MD counties go, Montgomery is actually fairly well run. Of course it helps that it's one of the richest counties in the country. That being said a lot of Montgomery County FD and EMS (which is often under FD) is volunteer, which may have made staffing more costly and difficult then it would be in other areas.
10.29.2011 | Unregistered Commenterelf
The US Open's a money grab for everyone involved. These morons just cut a bad deal. I hope we never see another Open at Congressional. Rory was the perfume sprayed on that pig.
10.29.2011 | Unregistered CommenterAK47
I don't buy the "economic benefit" argument that seems to get made whenever event organizers want tax payors to finance their event. This is a big issue in Charlotte right now with the impending DNC. They can't prove that the incremental taxes collected will outweigh the expenses and in the absence if that information, it seems like a bad deal.
10.29.2011 | Unregistered CommenterDel the Funk
These government folks didn't mind taking my tax money when I ate every night in Bethesda, nor did they complain when I checked out of the Hilton Garden Inn and saw an enormous amount of taxes added to my bill, and no one offered condolences when I paid a whopper of a tax charge on my Hertz rental car at BWI. And machines at the Metro happily assessed my Visa card for the fare to the "free" shuttles.

These government people love to collect it but when they need to pay it out - blame everyone else.

I am guessing their management can't retire until age 50 1/2 now that all these extra expenses were discovered.
10.29.2011 | Unregistered CommenterFan
What does that say about Tiger Woods in Australia? Half his appearance fee was paid last year by the taxpayer (a very bad precedent in my view, but they used the economic-benefit-to-the-community argument. I don't know if it has ever been added up, and if it was. They did do the math in New Zealand and felt the community had been robbed).

Aside from traffic cops, how many cops do these events really need? Has certain people's paranoia about security been spreading through the playing population like wildfire? Nobody is out to get these players -- by the argument of many here, they have only heard of two of them. Crowd control can't be that labour intensive -- what are all these volunteer marshallls marshallong? A few cops at the gate, at the scoring tent, and that should be it.

The next venues need to get their terms straight before the fact, though. Whining after the fact is so demeaning.
10.29.2011 | Unregistered CommenterKCMG
KCMG, actually, with Tiger, it might just be one of the few cases where a direct link can be made between his appearance and additional sales, which can be calculated precisely. In the case of the Fry's it was 5X on ticket sales and 2X on corporate hospitality. Those can be calculated to the penny. Then there's 3X on the press credentials, what the additional journalists spend in the area is gravy.

So, I think the Aussie's could easily figure out if they got their money's worth. Now, the flaw in my argument is, I don't know where the extra dollars in tickets sales went. Did they go back to the govt to defray the appearance fee? I don't know. But in the case of Tiger, assessing his impact is a reasonably simple exercise.
10.29.2011 | Unregistered CommenterDel the Funk
Hopefully some of these civil servants that rec'd the OT live in MoCo and can therefore help defray the taxpayer cost. That being said the OT bill should be paid directly by the USGA for services rendered on their behalf to ensure public and traffic safety during the event. Its obnoxious that the USGA is in such a position to negotiate. But that bill does seem obnoxiously high because the civil servants get OT pay for special events no matter what. Its a money grab for sure but its necessary as long as its usual and some civil servants love special events OT pay for doing nothing more than waving a wand in an intersection.
10.29.2011 | Unregistered CommenterArdmoreari
Can you imagine what San Francisco and Olympic Club are doing right now? SFPD and the city have a bill of about $2 million waiting to be FedEx to Far Hills on Monday. They prefer to be paid in advance!
@Del some study done in Australia assessed TW's economic impact on '09 Masters at around 20mil to the local economy. How much of that gets back to the government, and whether making sure the government gets a return on its investment is a priority (i.e. does the govt need to make the money back in order to make it a worthwhile expenditure, or is it ok if the govt loses money as long as it helps the community), are two other questions.
10.29.2011 | Unregistered Commenterelf
elf, I hear ya.

And KCMG, to answer your question directly, the govt ponying up an appearance fee says absolutely nothing about Tiger Woods.

However, you could probably draw a lot of conclusions about the govt employees involved and their decision making abilities, if you chose to.
10.29.2011 | Unregistered CommenterDel the Funk
Those numbers just don't add up.

747K for a 7 day event (and the first 3 days are very light) is 106K a day. Say there were 250 police/fireman on overtime, that works out to $426 a day per employee in overtime.

I was out there and in my opinion if even 50 police/firemen were there the first few practice days I'd be suprised.

Maybe the local police pull in $150-200 an hour in overtime?
10.29.2011 | Unregistered CommenterSteve
Steve,

You are incorrect in your analysis. The listake is that you believe that a number of police personnel can be derived based solely upon those you saw. The reality is that there is a significant police & fire presence in the majority of areas that the USGA uses for the event and that you never even went near. For example, did you go to every parking lot and notice that there were officers at each round the clock? What about the out areas where the major networks and media keep equipment? Then there are the clubhouse player areas and player parking and special traffic control througghout the entire area.

On the other hand, the USGA is being attacked for something that was AGREED TO by the city & state 7+ years ago! They based all of their revenue stream mark-ups based upon what they hoped they would get to cover the costs as they believed should. Among these costs are the cost of every other USGA event as the Open is the ONLY USGA event that makes money for the organization.

The time for the citry and state to have gotten more money was during the original contract negotiations. They are the ones who agreed to accept what they signed for...
10.30.2011 | Unregistered Commenterphil the author
Phil's always got to be the smartest guy in the room ...
10.30.2011 | Unregistered CommenterAK47
I see that the Super Bowl is going to Glendale, AZ (Phoenix) in 2015. The residents of Glendale should be thrilled. The last time it was held there it cost the taxpayers $2,000,000. Oh, but I forgot about the "economic benefit." Exactly how did it benefit the taxpayers???? Let's get the US Open to Glendale.
10.30.2011 | Unregistered Commenterhogan
You needed to pay overtime to the fire department for what, in case a dropped cigarette accidentally ignited a fairway?
10.31.2011 | Unregistered CommenterJeff Smith
Last night I stumbled onto a story from a couple months ago about the Plainfield event, showed a nice picture of the front of the clubhouse.

In my mind I thought "that's a good looking clubhouse but who knew, I was never able to get anywhere near it". Now I know how cattle going to market feel, being herded through the chutes and all.

And security was absurd. You want to bring in an empty 8oz. water bottle? No sir. What, lady, you want to bring in a purse? No ma'am, ain't happening.

Ever been to a NASCAR race? Bring your wagon and load it up. As long as the container isn't glass you can bring all the beer and chicken you can carry.

It's like the Tour expects terrorism....Donny Smithern just ain't on the evil doer's hit list.
10.31.2011 | Unregistered CommenterDel the Funk
If we really want to see some huge revenues and massive benefit to the community, we should invite 'the girls who did Tiger Woods', that would attract some huge crowds. If they got them to wear bikinis or strip we could really start raking in the revenues.

Just because having a circus freak at events like the FRYS supposedly increased ticket sales etc, doesn't mean taxpayers should be ponying up for appearance fees for circus freaks - in Australia or anywhere else.
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10.31.2011 | Unregistered Commenterlinda

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