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Mr. Wolfe poimed out that Section 16.03, Appeal of City Decision, was a provision for appeal fights that would be available to the Operator, and should the Operator have a concern about a decision that the Director reached relative to fees, the Operator could appeal the Director's decision to the City Manager. To follow up on Ms. Ayala's previous question, Ms. McKeehan reported that the difference between the Operator Agreement and the Policy and Procedures is the Operator Agreement outlines the City's working relationship with CourseCo. The Municipal Golf Course Policy and Procedures Manual is telling CourseCo what the City wants it to do in terms of running the golf course. Mr. Brozosky noted that the discount to Pleasanton residents is mentioned in the staffreport but is not part of the contract. He asked if Council needed to make this part of the contract, or would it be determined during the review of the annual budget? Ms. McKeehan indicated that it was too early in the process to set the exact fee for Pleasanton residents. Ultimately, when Council establishes the first budget for the golf course, staff would bring this issue to Council. The percentages, as indicated in the staff report, were percentages that were discussed with the Golf Committee and Economic Research Associates (ERA). She indicated that staffwould not suggest that the discount fee for Pleasanton residents be placed in the Operator Agreement, as Council will need to set this rate annually and change it as part of the annual budget. Ms. Ayala felt it would be appropriate to put a statement in the Policy and Procedures that states that Pleasanton residents are going to receive a reduced fee and preferential tee times. She indicated that she would like this statement added. Mr. Wolfe noted that Council indicated preferential tee times and reduced rates for Pleasanton residents fi.om the beginning. Stafftried to provide a range that it had been using based on the ERA study and its initial discussions with CourseCo. Once a definite operating budget is established for the golf come, the matter will be brought back to Council, and in effect, the fees will be established. The discussions have been within the range of $40 to $45 for the basic rate and $60 to $65 on the weekends providing up to a 15 percent discount for residents, and also establishing a policy on preferential tee times. Ms. Hosterman believed the golf rates seemed high for a municipal golf course. She asked for rates as compared to different municipal golf courses. Ms. McKeehan pointed out that Callippe Preserve Golf Course is being designed as one of the highest quality municipal golf courses, which is why the rates will be higher. She compared the quality of the golf course to other high quality facilities in Pleasanton and noted that the subsidization of the golf course would go up dramatically if the fee is reduced to what other municipal golf courses are charging. Pleasanton City Council 12 01/06/04 Minutes