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7.02 Other CITY Approvals. Neither CITY's execution of this Agreement nor any consent <br /> or approval given by CITY hereunder in its capacity as a party to this Agreement shall waive, <br /> abridge, impair or otherwise affect CITY's power and duties as a governmental body. Any <br /> requirements under this Agreement that OPERATOR obtain consents for approvals of CITY <br /> are in addition to and not in lieu of any requirements of law that OPERATOR obtain approvals <br /> or permits. However, CITY shall use its best efforts to coordinate its procedures for giving <br /> contractual and governmental approvals so that OPERATOR's requests and applications are not <br /> unreasonably denied or delayed. <br /> 8.0 PAYMENT TO OPERATOR. <br /> Certain costs of operating and maintaining the Golf Course "Direct Costs," as more <br /> particularly defined in Section 8.01.1) shall be paid by OPERATOR from the Gross Revenues <br /> received and deposited in the Bank Account. The Gross Revenues are the property of CITY <br /> and are not part of the consideration paid to the OPERATOR by CITY for the performance of <br /> OPERATOR's obligations under this Agreement. <br /> 8.01 Definitions. <br /> 8.01.1 Direct Costs. Direct Costs shall be those costs which are directly related to the <br /> resident staff, operation and maintenance of the Premises and which are established by the <br /> Direct Costs Budget, including the following: <br /> a) Employee salaries. <br /> b) Employee benefits including vacation, sick leave, health insurance, disability <br /> insurance, worker's compensation insurance and retirement benefits. <br /> c) Purchase, lease and/or rental of equipment necessary for the operation of the <br /> Premises. If Director determines that purchasing any item of equipment would be most cost <br /> effective, then the annual Direct Cost associated with that equipment shall be OPERATOR's <br /> actual cost, provided the Director gives advance written approval of the amount of such cost, in <br /> the Director's sole and absolute discretion. <br /> d) Repair and maintenance of golf carts, irrigation systems and other equipment <br /> used solely in the operation of the Premises. <br /> e) Fuel, oil and lubricants. <br /> 0 Fertilizers, pesticides, chemicals and grounds maintenance supplies as <br /> described in Section 4.07 of this Agreement. <br /> g) Uniforms, laundry and linens. <br /> 29 <br />