ompare the two options in terms of Net Present Value and conclude which is the better option for the City of Atlanta to pursue. Be sure to clearly state your assumptions and discuss your methods in your report.

A significant drought in recent years has placed a significant strain on Lake Lanier and other water sources that the City of Atlanta uses as a main source for its drinking water.  As a result, the city has been investigating the acquisition and use of water rights for lakes and reservoirs farther from the city as a means to expand its drinking water supply capacity. In particular, the city has been looking for water resources that are not connected to the Chattahoochee River and the legal battles surrounding use of it waters.

Survey teams for the City of Atlanta have identified two candidate lakes that could be used as additional water supplies for the City of Atlanta, Carter’s Lake north of the city near the town of Oakman and Jackson Lake southeast of the city near the town of Jackson.  Although the use of both of these lakes would be subject to negotiations with the local municipalities involved, the counties in which the lakes
are located, and the State of Georgia, the city would like to do some initial cost estimating to determine which of the projects is likely to be more cost effective before moving ahead with further designs and negotiations. Your team has been assigned the task of doing a first pass cost estimate of the pumping and piping systems required to build a system capable of delivering half the required water demand rate for the City of Atlanta.  Statistics for last year showed the daily water use per capita in the City of Atlanta at 161 gallons/day, which when combined with the current city population of approximately 450,000 people results in an average water demand for the city of roughly 50,000 gallons/minute.  Therefore, your task is to develop plans for a system that can deliver 50,000 gallons/minute from either of the two lakes in question.

Relevant data:
1. Carter’s Lake Elevation (water surface at most likely water withdrawal point) = 748 ft above sea level

2. Jackson Lake Elevation (water surface at most likely water withdrawal point) = 530 ft above sea level

3. City of Atlanta Main Water Treatment Facility Elevation (at water discharge point into temporary holding reservoir) = 738 ft above sea level
4. Water will be discharged into open holding reservoir at water treatment facility at atmospheric pressure.

5. Detailed routing for pipelines available through Georgia Power right of ways are shown in the attached diagram.  Elevations of the major points along the routes are also shown.  Assume that the grades (i.e. angles of elevation changes) along the main routes for the pipelines can be treated as constant along each straight section of right of way.

Assignment:
1.Perform preliminary designs and cost estimates of the designs that can be used to supply the requested amount of water from the two lakes. Include in these cost estimates calculations associated with issues such as: (1) determination of the optimum pipe sizes, (2) required pipe schedules (i.e. related to pipe wall thickness), (3) pump locations and powers, (4) pipeline costs, (5) fitting costs, (6) pump
costs, (7) power usage and costs. You should try to use as detailed information as possible on your actual pump selection (i.e. you hopefully should have a pump curve(s) that represent the pumps you are selecting for your various designs, and certainly at least for your final design to make sure it is feasible.
Be sure to show diagrams of your rough design in your report.

2. Compare the two options in terms of Net Present Value and conclude which is the better option for the City of Atlanta to pursue.  Be sure to clearly state your assumptions and discuss your methods in your report. You can assume an annual interest rate of 10% for discounting of the cash flows. You can assume that the lifetime of the equipment is only 10 years, and thus the capital equipment can be
depreciated on a 10 year schedule.  Also, assume that yearly maintenance costs are 10% of total initial capital investment each year (this includes equipment, parts, and all labor required to maintain the system).

3. Your results should be presented in terms of a report to the City of Atlanta Water Department. It should include: (1) a transmittal cover letter, (2) an executive summary, (3) background and introduction, (4) discussion of design methods, (5) discussion of economic analysis methods, (6) optimization strategies, (7) results and discussion, and (8) conclusions.

Note:  An interesting and free utility for making engineering sketches and drawings can be found at
http://sketchup.engineeringtoolbox.com/ that can be used with Google SketchUp. Some of you may find
this useful in this or later engineering projects.

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