a Question 3 (17 marks= 45 minutes) Two options (shown in Table Q3a) are being considered to supply water to yard taps in a section of the township (very low-income population) whose 2030 population was forecasted in Question 2. As Municipal Manager, you have setup a project task team (comprising the councillor, youth leaders, political party representatives, interested stakeholders and the Johannesburg Water representatives). The task team has agreed on one project objective i.e.: to provide each household with at least 200 litres per day The preferred option will cater for 300 households. Assume that each household will contribute a total of R240 during the first year and this annual contribution will increase by the prevailing interest rate until the end of the 10-year period. Both options have a life span of 10 years and the prevailing annual interest rate is 5% The council will pay for 90% of the capital cost of the preferred option while households will pay 10% of the capital cost PLUS 100% of the Operation, Maintenance and Replacement (OMR) costs. The OMR cost will increase by a fixed amount annually from the end of the 2nd year. Develop a matrix to screen the two options below. After developing the matrix, screen the 2 options and recommend the preferred option to the Mayor. Table Q3b lists the typical steps involved in developing a screening matrix and the mark allocation. Table Q3a Option 1 - Yard taps Option 2 - Taps receive water from a receive water from a bulk municipal water system of boreholes, supply connection pumps and tanks R1 200 000 R1 000 000 Capital cost OMR cost: i. At the end of the 1 year R8 000 R12 000 R2 000 R4 000 Annual increase from the end of the 2nd year until the end of the 10th year a Question 3 (17 marks= 45 minutes) Two options (shown in Table Q3a) are being considered to supply water to yard taps in a section of the township (very low-income population) whose 2030 population was forecasted in Question 2. As Municipal Manager, you have setup a project task team (comprising the councillor, youth leaders, political party representatives, interested stakeholders and the Johannesburg Water representatives). The task team has agreed on one project objective i.e.: to provide each household with at least 200 litres per day The preferred option will cater for 300 households. Assume that each household will contribute a total of R240 during the first year and this annual contribution will increase by the prevailing interest rate until the end of the 10-year period. Both options have a life span of 10 years and the prevailing annual interest rate is 5% The council will pay for 90% of the capital cost of the preferred option while households will pay 10% of the capital cost PLUS 100% of the Operation, Maintenance and Replacement (OMR) costs. The OMR cost will increase by a fixed amount annually from the end of the 2nd year. Develop a matrix to screen the two options below. After developing the matrix, screen the 2 options and recommend the preferred option to the Mayor. Table Q3b lists the typical steps involved in developing a screening matrix and the mark allocation. Table Q3a Option 1 - Yard taps Option 2 - Taps receive water from a receive water from a bulk municipal water system of boreholes, supply connection pumps and tanks R1 200 000 R1 000 000 Capital cost OMR cost: i. At the end of the 1 year R8 000 R12 000 R2 000 R4 000 Annual increase from the end of the 2nd year until the end of the 10th year
