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Council members—I'll be sharing an update on our golf fees with the Council Budget Subcommittee on <br /> Wednesday. I've also responded to questions from the Snohomish County Tribune,and I wanted to <br /> provide you all with general background information in case you get questions from community <br /> members.We've shared this information with our Board of Parks Commissioners and at several public <br /> meetings over the past several months. <br /> Council members may recall Resolution 6039,approved in 2008, delegated golf rate fee setting <br /> authority to Administration. The resolution outlines the public process and states"Parks will notify City <br /> Council's Budget Committee(or successor) of new and/or proposed fee modifications prior to <br /> implementation." <br /> I will brief the Council Budget Subcommittee on February 7th. Golf rate changes are effective March 1, <br /> 2018. Attached are the 2018 golf rate references. The increase is$1.00 per round. I will provide details <br /> at Council Budget Subcommittee specific to the process and the data supporting the golf reference rate <br /> increases. <br /> In addition to the attached 2018 golf rate references,dynamic pricing will be implemented at Legion <br /> Memorial Golf Course on March 1st. We will implement dynamic pricing at Legion Memorial in 2018, <br /> which will allow us to evaluate the model before we determine whether to implement at Walter E. Hall. <br /> Dynamic pricing,also referred to as demand pricing, is a pricing strategy where businesses set flexible <br /> pricing based on market demand. Most occupancy based industries utilize dynamic pricing. It is <br /> commonly recognized with airlines and hotels. <br /> Dynamic pricing is consistent with our business strategy for our golf courses,which includes: <br /> • Maintaining a competitive and reasonable pricing structure to keep accessible and affordable <br /> golf viable for the Everett golfer <br /> • Maintaining a competitive position <br /> • Exceeding customer expectations on quality and meeting expectations on price <br /> • Optimizing play and revenue with pricing appropriate to value <br /> The courses already utilize differential pricing as can be referenced on the attached. The <br /> implementation of dynamic pricing through an automated solution is an extension of differential pricing; <br /> however,this model should provide more timely and reactive pricing based on market demand. With <br /> this model,we expect that: <br /> • Price-conscious golfers will be able to identify tee times at a lower rate when there is less <br /> demand. <br /> • Revenue opportunities will be optimized,especially during peak demand. <br /> • Local clubs and leagues will be protected to assure they receive the reference rates listed on the <br /> attached. <br /> It's difficult to predict how much more (or less)will a golfer pay with dynamic pricing because it will <br /> depend on demand. We anticipate that in 2018,golfers will generally experience an opportunity to play <br /> at the course at a lesser rate than the reference rate because of the golf course detention pond project. <br /> We anticipate more supply during construction. It is beneficial for Legion Memorial to implement <br /> dynamic pricing during construction as it will allow more opportunity to drive play to the course during <br /> construction by monitoring real-time demand and adjusting pricing accordingly. <br /> The rate proposal presented at public meetings and to the Board of Park Commissioners indicated the <br /> rate variation could be up to $10 higher during high demand tee times and up to$15 less during low <br /> 1 <br />