Jenn,
Selecting the right hotel is the by far the hardest thing about getting married. I live in Central California and I can understand your concerns about the quality food at Dreams. I had the same concerns which is why I'm not a big fan of AI Hotels. However, reading the previous brides wedding reviews changed my mind and I will be getting married there in a couple of weeks.
Just to ease your mind, We have a friend that is a multi-millionaire that actually went to a wedding there in July. I had him report back with a full review and he had nothing but good things to say. He said that he liked the food and that they had excellent service. He's a very picky person so I was happy to hear that he really enjoyed his stay.
As for the guest pass, about half of my guests are staying at different hotels and I was able to work a deal with my WC to waive the fee for the day of the wedding and pay the standard price as I would be doing for hotel guests. I'm sure that you can work something out with your WC.
Also, I'm not sure if you have a photographer but you should check out Jim Kennedy Photography. They are located in So. Cal and I used them for my BD shoot. There work is amazing.
Let me know if you have any questions.
Jess