Anaheim Delays Decision on Privatizing Golf Courses : Government: Proposal is hotly debated, with backers citing increased revenue and foes a loss of control.

Citing a lack of “reliable” information, the City Council on Tuesday postponed a decision on a controversial proposal to privatize the operations of its two municipal golf courses.

The council directed the city manager to re-evaluate the proposal following conflicting testimony over how much additional revenue a private contractor could bring to city coffers.

“I believe there are legitimate arguments on either side,” said Mayor Tom Daly. But “until we have reliable numbers on the 20-year contract, I don’t think the citizens of Anaheim can know what will happen.”’

City analysts had recommended against privatization, saying financial benefits from having a private company operate the courses were minimal and did not justify the risk of losing control of the courses.

The issue of privatizing H.G. Dad Miller and Anaheim Hills golf courses was hotly debated among members of the audience Tuesday. Supporters said it would create additional revenue for the city, while opponents said the city would be losing control of a valuable asset.

Joe Guerra, executive vice president of American Golf, which came in with the best privatization bid, told the council that the company would make about $2 million worth of improvements to the courses’ irrigation systems immediately if it is awarded a 20-year contract. The company would also pay rent of at least $1.6 million a year.

According to a city study, the private contractor would also bring in about $100,000 more in business annually than the city.

City park and recreation officials, however, said they could make up the difference with additional cuts, belt tightening and aggressive marketing of the courses.

“There isn’t enough money in the deal to justify the risk, “ said Chris Jarvi, director of parks and recreation. “The city does not see a good return.”

Resident Carole Geronsin agreed. She said American Golf stands “to make a mint” over the life of the contract. “Allow us to keep those funds,” she said.

But Chris Davis, 33, of Anaheim said that if “the city can make money in any way, then it should privatize. I can’t see this hurting the city of Anaheim.”

Councilmen Bob D. Simpson and Fred Hunter said they opposed the privatization because they felt that the return wasn’t high enough to justify losing control of the courses and that the city should be loyal to its workers.