R2024-282 Resolution Authorizing a Real Estate Sales Agreement for Properties between Vulcan Lands Inc., and Vulcan Construction Materials, LLC, and the City of Decatur

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One exception to the steady progress on drought resiliency projects has been the planned acquisition of a former sand and gravel pit named Lake Charlie Rhodes (Alternatives 4A/413 in the report.)It was estimated to provide up to 900 MG of drought supply(29%of the gap). The reason for slow progress on acquisition of this site has been caution regarding the potential effect of an adjacent landfill on water quality,particularly as water quality regulations become more stringent over time. The report identified the Harristown Vulcan Pit(Alternative 7) as a preferred alternative if Lake Charlie Rhodes proved to be infeasible. At the time, the Harristown Vulcan Pit was an active sand and gravel operation, which affected its ranking as an alternative. However, in November 2023, Vulcan Materials Company closed their Harristown operation and approached the City regarding potential acquisition. The Harristown Vulcan Pit is an excellent alternative for increasing and diversifying the City's water portfolio. The Intera report estimated that this site could provide a drought supply of 3,000 MG(97%of the gap), and this estimate may be low. The site consists of two large ponds created by the extraction of sand and gravel deposits. The southern pond is of most interest, although the northern pond also has value. The southern pond alone has a surface area of about 82 acres and a depth of about 30 feet,which is equal to 801 MG of storage capacity, far exceeding any of the other former sand and gravel pits in the area. It is connected to the Sangamon River through a deep sand lens,which will allow the pond to be continuously recharged as it is pumped down. The water quality is expected to be better than Lake Decatur itself, as it does not receive significant runoff from the surrounding watershed. It should be relatively low in nitrates,reducing the need to operate the nitrate removal facility at the South Water Treatment Plant. Being lower in organic matter,water from this source should also reduce the formation of harmful disinfection by-products. Being deeper, water from this source will also be more moderate in temperature than Lake Decatur,which is an advantage for water treatment efficiency. In other words, it would not only supply nearly all of the estimated drought reserve but also facilitate a more efficient water treatment process. This additional drought-resilient water supply would also support the economic development of Decatur and Macon County. It would increase the overall water supply by about 30%. Availability of water is a prime feature of local and state economic development plans. The water from the Harristown Vulcan Reservoir would need to be pumped to the South Water Treatment Plant through a new pipeline,which would be a costly capital project. However,the large volume and reliability of the source make it the most cost-effective alternative supply, on a $/MG basis, as discussed in the Intera report. As part of the acquisition of the Harristown site,Vulcan Materials Corporation also asked the City to acquire a smaller property, an 11.7-acre former sand and gravel pit directly adjacent to the City's lime residual lagoons across the river from the South Water Treatment Plant. This site would not be used as a water supply but has other potential benefits to the water utility because of its adjacency to other City properties and facilities. — 2 —