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3.0 OWNERSHIP AND MANAGEMENT OF GOLF COURSE. <br /> 3.01 Ownership. Ownership of the Golf Course, all Facilities, Furnishings and Equipment, <br /> Resale Inventory and Supplies acquired by CITY or acquired by the OPERATOR on behalf of <br /> CITY, and all alterations, additions or betterments thereto, shall remain with CITY. <br /> 3.02 Retention of OPERATOR. <br /> 3.02.1 Role of the OPERATOR. Subject to the terms of this Agreement, CITY hereby <br /> retains OPERATOR as an independent contractor, and OPERATOR agrees, to: (i) determine, <br /> establish, and implement the policies, standards, and schedules for the operation and <br /> maintenance of the Golf Course and all matters affecting customer relations, in accordance with <br /> this Agreement including the attached exhibits; (ii) hire, train, and supervise the General <br /> Manager, Golf Course Superintendent, Golf Professional and Food Service Manager <br /> (collectively "Management Staff and all Golf Course employees; (iii) supervise and direct all <br /> phases of advertising, sales, and business promotion for the Golf Course; (iv) establish <br /> accounting and payroll procedures and functions for the Golf Course; (v) procure and maintain <br /> all equipment necessary and appropriate for the profitable and efficient operation of the Golf <br /> Course; and vi) maintain the environmental impact mitigation areas in the Golf Course and <br /> manage compliance with all environmental plans, permits and agreements as related to the Golf <br /> Course. Parties understand that costs of undertaking the services above are reimbursed <br /> pursuant to Section 8 of this Agreement. Further, CITY may require OPERATOR, and <br /> OPERATOR agrees, to provide master planning and capital budgeting for the Golf Course <br /> operation. <br /> 3.02.2 Goal for the OPERATOR. CITY intends for the OPERATOR to operate the <br /> Golf Course with a priority emphasis on maintenance and customer service, within the fiscal <br /> constraints of the CITY. <br /> 3.03 Warranties. OPERATOR warrants and represents that it has full power and authority <br /> to enter into this Agreement and perform the obligations in this Agreement; that consummation <br /> of this Agreement will not create a default under any other agreement and will not violate any <br /> law, regulations, order, judgment, decree or rule; that OPERATOR has conducted its own <br /> review of the plans and specifications for the Golf Course prior to execution of this Agreement; <br /> and that OPERATOR is not relying on any representation of the CITY in connection with the <br /> execution of this Agreement. OPERATOR warrants and represents that it is authorized to <br /> transact business in the State of California and that all of OPERATOR's employees are properly <br /> licensed and trained for their respective positions and responsibilities. CITY warrants and <br /> represents that it has the full power and authority to enter into this Agreement and perform the <br /> obligations in this Agreement; and that consummation of this Agreement will not create a <br /> default under any other agreement and will not violate any law, regulation, judgment, decree or <br /> rule. <br /> 7 <br />