City OKs operator for golf course City OKs operator for golf course (January 09, 2004)

Mayor questions pay, benefits for golf course employees
by Dolores Fox Ciardelli

The City Council approved an operator agreement with Pleasanton Golf, LLC - owned by CourseCo Inc. - to manage the municipal golf course now under construction, at its meeting Tuesday night. Mayor Tom Pico almost delayed the move, wanting to be assured that Callippe Preserve employees would have adequate benefits.

CourseCo will be responsible for the golf course operation and maintenance services, including payroll, and it will hire and train the staff. The employees will not be paid the same wages and benefits as Pleasanton city employees.

"I have concerns about these people," said Pico. "We're treating them as second-tier.... I don't want there to be a charge of us being a Wal-Mart." He said he wanted to see a pay schedule before approving the agreement with CourseCo.

"I'm not expecting folk to have the exact same package but I feel we have some responsibility to employees that will be indirect employees of the city to see it and approve it," he said.

Councilwoman Kay Ayala said what about looking at the other outside contractors the city uses.

"I think this is entirely different," said Pico. "We've invested millions of dollars... I want to make sure we as a city are socially responsible.... I want to make sure they have a reasonable health care plan so they don't become a burden on the rest of the system. I think there ought to be a minimal pension plan process."

After a break at 10 p.m., Pico returned to say he'd found out the company does provide its employees with a 401(k) program.

Ed McGovern, a member of the Golf Course Committee, voiced concern about raising the operating costs. "When we originally met we wanted to make this available to the 'regular guy' golfer," he said. "As we do things to raise the cost, we're pushing this guy out of the market."

The latest market analysis estimates the number of golf rounds in the first full year of operation at 55,000, growing to 60,000 by the third year. Green fees are being projected in the range of $60-$65 on weekends and $40-$45 on weekdays for non-residents, with residents paying approximately 15 percent less.

Ayala asked that the Policies and Procedures be changed to state that Pleasanton residents are going to pay less and have preferred tee times. "I want it real clear to an operator that residents of Pleasanton are paying off the bond and I want them to have preferential treatment on both tee times and rates," she said.

"Pleasanton Golf, LLC will make recommendations regarding the fee structure," said Jim Wolfe, director of Parks and Community Services. The Parks and Recreation Commission will set the fees and approve changes, he added, in order to "take the contentiousness out of fee discussions," although the City Council will approve them as part of the budget.

"For a municipal golf course, this does seem a little high," said Councilwoman Jennifer Hosterman.

"This is being designed as one of the highest quality courses you will ever see," said City Manager McKeehan, noting that the city will need to subsidize the course quite a bit if the fees are not set at that level.

The council voted unanimously to approve the operator agreement. Barring bad weather, the course should open Nov. 1. The perimeter trail will open at the same time.

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