Desert Control and Woodland Hills CC Finalize Service Agreement for Water Conservation
Desert Control and Woodland Hills Country Club Finalize Service Agreement
In a significant move towards water conservation in the golf industry, Desert Control (DSRT) has announced the execution of a pivotal agreement with Woodland Hills Country Club (WHCC). This partnership, facilitated through Desert Control Americas Inc. (DCAM), will see the full deployment of an innovative water conservation solution covering 43 acres of the WHCC golf course. This initiative is set to commence operations around mid-April 2025, marking a new chapter in sustainable landscape management.
Key Features of the Agreement
The service agreement is based on the Pay-As-You-Save (PAYS) model, allowing Desert Control to fund the implementation of their proprietary technology. Under this model, revenue for Desert Control will directly relate to the water cost savings achieved through their system. This is measured by comparing actual water usage against a predefined historical baseline, ensuring transparency and accuracy in both savings and revenue recognition.
This unique structure allows WHCC to benefit from reduced operational costs related to irrigation while maintaining the quality of their golf course. The agreement promises to convert the golf club’s most significant operational expense into a manageable and sustainable cost, thus enhancing the overall experience for club members and guests alike.
Economic Impact and Growth Potential
The anticipated financial upside for Desert Control from this agreement could exceed NOK 8.5 million over a five-year period, contingent on achieving water savings of more than 25%. This becomes a cornerstone for WHCC, which is keen to reduce rising water costs without compromising the quality conditions of their golf course facilities.
Marty Weems, Managing Director of Desert Control Americas Inc., commented on the agreement: "This partnership reflects a results-based approach that is advantageous for both parties involved. We aim to support WHCC in reducing their water expenses while simultaneously enhancing our inbound revenue model through quantifiable savings. As irrigation costs continue to increase, our innovative solution is designed to ensure that golf courses can manage their resources efficiently."
Moreover, the agreement underscores Desert Control’s commitment towards a sustainable service model, which is integral in today's economic climate where environmental concerns are paramount. The operational framework for Desert Control's solutions is recognized under major water conservation incentive programs offered by California’s Metropolitan Water District, further ensuring profitable growth while promoting efficient resource use.
Future Expansion
The successful implementation of this agreement could pave the way for Desert Control's expansion into more high-cost water markets across California and potentially beyond. The company is strategically placed to navigate the challenges posed by international tariffs, thanks to its domestic supply chains and locally sourced materials for all U.S. projects.
In conclusion, the partnership between Desert Control and Woodland Hills Country Club is not only a step towards enhancing operational efficiencies within the golf industry but also a necessary evolution for resource management. As the demand for sustainable practices increases, such innovative agreements will likely become more prevalent, showcasing a model for success in environmental stewardship in recreational enterprises. With the groundwork laid for mutual success, both Desert Control and WHCC are poised to thrive in an era where sustainability and profitability coexist.