Sagamore Golf Club, Noblesville IN

Case Study Capillary Concrete Bunker
INTRODUCTION
PROJECT IMPACTS
FINANCIAL IMPACTS
2016
DAN GROGAN
COST BENEFIT ANALYSIS
INTRODUCTION
Capillary Concrete
The Project
Capillary Concrete is the technology platform with a patented
ability to control moisture levels in any material installed on top of
it. Through usage of macro-pores to regulate gravitational
drainage and micro-pores to replenish moisture through capillary
action, this material is well suited to sustain any kind of moisture
levels desired in any kind of constructed profiles top layer.
Purpose
The Purpose of this Case Study is to show clients, investors, golf
course superintendents and others how Capillary Concrete saves
money each year on maintenance costs, at the same time as the
playing condition is significantly improved.
Golf Club
The Case Study is performed at Sagamore Golf Club in Noblesville,
IN. together Golf Course Superintendent Dan Grogan.
Contact Information
Dan Grogan
[email protected]
(317) 773-2799
INTRODUCTION
PROJECT IMPACTS
Sagamore Golf Club is a high end private golf club which was
awarded with “Top Ten New Private Courses in America, 2004” by
Golf Digest. The course has been in an extremely good shape
ever since that day, but one big problem grew stronger and
stronger for each year, the bunkers.
After rainstorms, the bunkers flooded and wash-outs was a fact
every single week. As a result, a large amount of money was
spent each year, both on man hours to repair the damages, but
also to put in new sand because of contamination.
Another issue that grew was
the compaction of the sand.
It became hard to play from
the bunkers and therefore,
members started to complain.
In 2015, the club decided to
install Capillary Concrete in all
the bunkers, and the results
will now be quantified.
FINANCIAL IMPACTS
DAN GROGAN
COST BENEFIT ANALYSIS
PROJECT IMPACTS
Cost of renovating a 4 000 square feet bunker
Additional costs of installing Capillary Concrete
Type of cost
USD
Type of cost
USD
200 man hours to clear the bunker from old sand and install
new drainage.
$2 700
Cost of Capillary Concrete delivered to the course.
$6 120
42 man hours to install the new sand.
$567
42 man hours to install Capillary Concrete.
$567
77 tons of bunker sand at a 4 inches depth.
€6 160
Total cost of Capillary Concrete
$6 687
Cost to renovate a 4 000 𝐟𝐭 𝟐 without Capillary Concrete
$9 427
Assumptions
• The cost of Capillary Concrete is estimated to average $1,53
per square feet.
• The maintenance runs 250 days a year at Sagamore Golf Club.
• There are 3,5 Acres of bunkers on the course.
• The cost of sand is $80 per ton.
• A man hour costs $13,5.
• A 5 % discount rate is used.
INTRODUCTION
PROJECT IMPACTS
THE INITIAL INVESTMENT
•
The initial investment of installing Capillary Concrete in a 4 000 square feet bunker is
estimated to be $6 687, which makes the bunker about 70 % more expensive to renovate,
compared to the case where no bunker liner is installed.
•
This number will represent the present value of the costs in the cost benefit analysis, since
the negative cash flow comes at year 0.
FINANCIAL IMPACTS
DAN GROGAN
COST BENEFIT ANALYSIS
LONG RUN FINANCIAL IMPACTS
Benefits of Capillary Concrete
Cost Savings on a 4 000 square feet bunker
Weekly Maintenance
• Before the installation, it took on average 20 man hours per
day to maintain the bunkers. After the installation, the
maintenance is down to approximately 6 man hours per day.
• Looking at the 4 000 square feet bunker, the maintenance has
gone down from 0,5 to 0,15 man hours per day on average,
which equals a lowering of 87,5 man hours per year.
Wash-out Repairs
• Before the installation, it took on average 108 man hours, to
repair all the wash-outs after a heavy rain, 15 times a year. This
equals 2,85 man hours on the 4 000 square feet bunker.
• With Capillary Concrete, there are almost not a single washout, and therefore almost not a single man hour required.
Bunker Sand
• Before the installation, the bunker was filled with 3 tons of sand
every year because of contamination.
Life-Span
• Without Capillary Concrete, Dan estimates that a bunker has a
life-span of 5 years on average. With Capillary Concrete the
bunker is expected to be in good shape for at least 15 years.
• Therefore, after the 5th and the 10th year, there will be a cost of
$9 427 to renovate the bunker for them to be in good shape.
INTRODUCTION
PROJECT IMPACTS
Type of cost saving
USD
Maintenance (85 man hours x $13,5)
$1 180
Wash-out repairs (2,85 man hours x 15 times)
$575
Bunker Sand (3 tons x $80)
$240
Total yearly cost savings
$1 995
THE LONG RUN FINANCIAL IMPACTS
•
•
•
•
With Capillary Concrete, there are numerous benefits, both cost savings and increased
playing conditions that leads to indirect positive financial impacts.
Looking at the 4 000 square feet bunker, the club saves $1 995 each year.
There is also a need to include the cost of a new bunker renovation every five year. This
cost is estimated to equal the initial bunker renovation cost of $9 427.
These numbers will represent the cost savings/benefits in the cost benefit analysis. These
numbers will be discounted to a present value since the occur in the future.
FINANCIAL IMPACTS
DAN GROGAN
COST BENEFIT ANALYSIS
GOLF COURSE SUPERINTENDENT DAN GROGAN
Dan Grogan’s own words
“After heavy rains, there has never been a flood or
major wash-out which has damaged the esthetical
view of the course. My crew can now focus on the
Grogan on Twitter: "If only all of the bunkers looked like this ...
https://twitter.com/purdueturfy/status/705077048948170753?refsr...
turf instead of repairing
bunkers, improving the
condition
of theMessages
entire course”
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Dan Grogan
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@purdueturfy
Following
If only all of the bunkers looked like this after all
the rain,snow, & wind. Thank you @TedFist1 &
@CapConGolf
Dan Grogan
@purdueturfy
FOLLOWS YOU
Thoughts are my own. Sports
Junky. Love anything &
everything outdoors including
a topwater & a round of 18.
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Golf Course Superintendent
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”The feedback from our membership
in regards to the newly renovated
bunkers has been nothing but
positive feedback. It’s mainly due to
the consistency of the new bunkers
and how each bunker plays the
same.”
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Reply to @purdueturfy @TedFist1 INTRODUCTION
Pro/Angle Sand @ProAngleOhio · Mar 2
@purdueturfy @TedFist1 @CapConGolf @ProAngleOhio
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PROJECT
IMPACTS
FINANCIAL IMPACTS
DAN GROGAN
COST BENEFIT ANALYSIS
COST BENEFIT ANALYSIS – 4 000 SQUARE FEET BUNKER
Timeline of the cost and benefits at Sagamore Golf Club
$9 427
$9 427
Benefit
$1 995
$1 995
$1 995
$1 995
$1 995
$1 995
$1 995
$1 995
$1 995
$1 995
$1 995
Year
0
1
2
3
4
5
6
7
8
9
10
Cost
-$6 687
The Initial Investment
•
•
Present Value of Cost Savings
In our cost benefit Analysis, the initial investment is the
extra cost of installing Capillary Concrete during a
bunker renovation.
This includes Capillary Concrete d elivered to the
course and all the extra man hours required to do the
installation.
Present Value
•
•
•
-­‐$6 687
$1 995
$1 995
11
12
13
•
•
$33 880
Net Present Value $27 193
For a 4 000 square feet bunker at Sagamore Golf Club, the yearly cost saving equals $1 995, and since the bunker is
expected to last for at least 15 years, the net present value of the investment in Capillary Concrete equals $27 193.
Looking at the entire course, the club will have to spend an extra $254 875 in year 0 to install Capillary Concrete. The
present value of the cost savings will equal $1 291 336.
PROJECT IMPACTS
FINANCIAL IMPACTS
14
$1 995
15
The net present value is the present value of the
benefits minus the present value of the initial
investment.
Clearly, the net present is positive.
CONCLUSION
INTRODUCTION
$1 995
Net Present Value
The pres ent value of saving $1 995 every year for 15
years equals a present value of $20 700.
The pres ent value of saving $9 427 in 5 years equals a
present value of $7 385.
The present value of saving $9 427in 10 years equals a
present value of $5 785.
Present Value
$1 995
DAN GROGAN
COST BENEFIT ANALYSIS