R2024-297 Resolution Rescinding R2024-282 and 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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COUNCIL MEMORANDUM DATE: September 3, 2024 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason, City Manager Jon Kindseth,Deputy City Manager Matt Newell, P.E., Public Works Director Robert Weil, P.E.,Water Production Manager SUBJECT: Resolution Rescinding and Authorizing a Real Estate Sales Agreement for Properties Between Vulcan Lands Inc.And Vulcan Construction Materials, LLC, and the City Of Decatur SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution rescinding the previous resolution and re-authorizing the Mayor or City Manager to sign a property acquisition agreement with Vulcan Materials Corporation for two former sand and gravel pit sites: 1) a 473- acre site near Harristown, and 2) an 11.7-acre site in Decatur near the City's lime residual lagoons. The only thing that has changed is that the acquisition cost has increased from the previously approved$6.35M to $6.5M. The resolution, agreement and a location map are attached, along with other backup materials. PRIOR COUNCIL ACTIONS: • October 15, 2018—Council approved a professional services agreement with Intera Geoscience and Engineering Solutions in the amount of$277,324 for an Additional Water Supplies Study. The report was completed and distributed to the Council in 2019. • September 25, 2023—Study session in which the Mayor and City Council were briefed on options to increase the City's water portfolio by 8 — 12 MGD to support economic growth. • January 11, 2024—Council renewed its priority goal related to the water system, "Collaborate with others in ensuring integrated and wholistic management of city-owned open spaces, transportation corridors, and especially Lake Decatur." BACKGROUND: The droughts of 1988 and 2012 were difficult for the City of Decatur. As a result,Mayor and Council have long placed a high priority on drought resiliency including alternatives to Lake Decatur as the sole water supply for the residents of Decatur and our wholesale customers and emergency connections. The 2019 report by Intera Corporation on alternative water sources has been instrumental in guiding the pursuit and development of drought resiliency, and this site acquisition was contemplated in that report. Intera recommended a series of projects to fill an estimated 3,100-million-gallon (MG) gap in water supplies during the design drought. The executive summary from that report is provided as — 1 —