HomeMy WebLinkAboutAgenda Report - January 15, 2003 I-05CITY OF LOD
COUNCIL COMMUNICATION
AGENDA TITLE: Update and Obtain Council Direction to Continue Negotiations with the Railroads on
the Alternative Project Proposed by the Railroads to Implement the Lodi Central City
Railroad Safety Improvement Project
MEETING DATE: January 15, 2003
PREPARED BY_ Public Works Director
RECOMMENDED ACTION: That the City Council direct staff to continue negotiations with the
Railroads on the alternative project proposed by the Railroads to
implement the Lodi Central City Railroad Safety Improvement Project.
BACKGROUND INFORMATION: The Lodi Central City Railroad Safety Improvement Project, as
approved by the City Council in 2002, is based an a Memorandum of
Understanding (NICU) between the City and the Railroads
(Union Pacific, Burlington Northern & Santa Fe and Central California
Traction Company).
The It OU provides the City will design improvements that include reactivating the unused Kentucky
House Branch (KHB) line along Lockeford Street, thus eliminating the need for the CCT tracks in
Lodi Avenue between the Union Pacific mainline and east of Beckman Road, This allowed the City to
pave over and abandon the CCT tracks in Lodi Avenue last year. The City has appropriated $7,269,000
for the project, $6,694,000 of Measure K Grant Funds and $815,000 of Local Street funds. The current
MOU caps the City's contribution toward the project construction cost of $6,694,000. The project cost
does not include. preliminary design, final design or land acquisition costs, which will be borne by the
City.
The agreement included a provision that allowed the Railroads to offer a substitute project that meets
the goals of the project as described in Section 7 of the MCU (copy attached), The Railroads have
recently suggested such an alternative which would involve using the funds appropriated to rebuild the
KHB, to rehabilitate the CCT tracks between Lodi and Stockton. This would allow CCT to haul
larger/heavier train cars from the Railroads' main lines, while eliminating all east/west Central City train
traffic between the UPRR main line and the CCT, significantly decreasing the number of rail crossings
and increasing public safety.
If the Railroads agree to rehabilitate the CCT between Stockton and Lodi, the portion of the KHB
between the UPRR main line and the CCT will riot be needed. It is staff's recommendation that
negotiations continue to include the abandonment of the KHB corridor and transfer the right-of-way to
the City. A portion of this right-of-way is needed to accommodate future widening of State Highway 12
from the CGT westerly to State Route 99 and could become a pedestrian/bicycle corridor connecting to
the downtown area,
Api,RovL�x
n Flynn --- City Manager
CU pd9le
, ProjectAllon iativw
0V07/03
Update and Obtain Council Direction to Continue Negotiations with the Railroads on the Alternative Project
Proposed by the Railroad to Implement the Lodi Central City Railroad Safety Improvement Project
,January 15, 2003
Page 2
Staff is prepared to continue to negotiate with the Railroads on this project. However, last year's
success was in a large part due to Mayor Pennino's involvement and staff would welcome the Council
designating one of their members to continue this role.
FUNDING: Not applicable,
Richard C. Prima, i
Pubiic Works Director
Prepared by Charles Swirney, Jr., Senior Civil Engineer
RCP/CS/PMf
Attachment
cc: Randy Hays, City Attorney
Wally Sandelin. City Engineer
Sharon Welch, Senior Civil Engineer
Wes Fujitani., Senior Civil Engineer
Paula Fernandez, SeniorTraffic Engineer
C'Updato _PmjectAN, rrv) t 1"i e 01/07103
MEMORANDUM OF UNDERSTANDING
City of Lodi, Califorrila
Removal of Tracks From Lodi Avenue
UIS MEMORANDUM OF UNDERSTANDING IS ENTERED INTO TFIIS
DAY OF September, 2002 by and among the City of Lodi, a municipal corporation of the State
�fCaiitotn`a, (hcr4t..after referred to as "City") the Central California Traction Company
"CCT"), 1, a California corporation owned jointly by The Burlington Northern and Santa Fe
Railway Company (" BNSF") and the Union Pacific Railroad Company ("C?P"), both UP and
BNSF being Delaware corporations, (CCT, UP and BNSF hereinafter referred to collectively as
"Railroads" ).
WHEREAS, City desires to remove the rail tracks owned and operated by the CCT from
the center of Lodi Avenue between the connection to UP's Fresno Subdivision near Main St. and
the east line of Beckman Road within the City of Lodi; and
WHEREAS, removal of the CCT rail tracks in Lodi Avenue involves reconstruction of
the UP rail tracks and right of way between the crossing of the CCT main lime near Brandywine
station, (MP 105.2) and UP's Fresno Subdivision main Line in Lodi, generally along Lockeford
Street and State Highway 12 and also known as the former Southern Pacific Kentucky House
Branch ("ITI-[13") or providing a suitable alternative; and
WHEREAS, CCT and its owners, UP and BNSF, are agreeable to the removal of CCT's
rail tracks located in Lodi Avenue in return for the City's agreement to fund a sufficient capacity
plan to accornmodate rail operations per this MOU.
NOW, 'THEREFORE, it is mutually agreed and understood by and between the City and
Railroads:
1. City and Railroads have generally agreed on a conceptual replacement plan as
shown on Exhibit A ("Rail Plan") attached hereto and by this reference made a part hereof'.
Within six (6) months following execution of this Memorandum, City shall, at no cost to
Railroad, prepare engineered plans and specifications for construction of the Rail Plan, which
shall be used by Railroads to obtain competitive bids for construction of the project. Railroads
shall have the right, collectively, to review and approve the plans and specifications during
preparation thereof, which process shall not be unreasonably delayed by Railroads. Railroads
shall not be required to construct any portion of the Rail Plan that they have not previously
approved through this process.
2. Railroads agree that upon execution of this Memorandum by all parties, the City shall
enter into a contract for design and preparation of bidding specifications for Rail Plan. Upon
execution of said contract by City and the selected design contractor, but after approval by the
Surface Transportation Board of CCT's abandonment of the tracks in Lodi Avenue, City shalt
have the right to remove and/or pave over the tracks, ties, other track material and all appurtenant
track fixtures owned by CC's' in Lodi Avenue, as shown in the Rail Plan. Upon execution of this
Memorandum by City and railroads, CCT shall, as quickly :as possible, take all action necessary
at its sole cost and expense to obtain aUthority as needed to abandon and retire in place the said
railroad facilities M Lodi Avenue, in accordance with the mail Plan. Thereafter, neither CC's'
indivi.duall, nor the Ralk-oads collectively or singly shall have any responsibility or duty to
re.movx , dispose of, andlor pave over any CCT rail tracks or other facilities in Lodi Avenue,
notwvithstandinIg any franchise or ordinance requirements, if any, to the contrary. if City
Fc MOVes, disposes of, and/or- paves over any CCT rail tracks or facilities in Lodi Avenue prior to
atminnietat by CCT of all necessary regulatory authority, then City small do so at its own risk and
agi,ccs to hold Railroads harmless firoen any cost, expense or fine, 1'e1curred by the Railroads that is
in any wav related to such action by the City.
?. City a -rets that Rail flan design costs and the removal and appropriate disposal
of rail axes and sail, and/or paving over of C:CT's rail tracks and other facilities located in Lodi
Avenue teferred to in Section 2, shall be undertaken by City at City's sole cost and expense and
sUch cost. shall not be included in the Project Cost for the bail Plan, nor shall Railroads have any
liability whatsoever for the cast of siech work or any liability, present or future, for the condition
of the property.
4. CCT and tJP shall ptovidea., at no cost to the City, any weal property owned by
either ole therm that is necessary for track reconstruction or improvements to complete the Dail
Pian. Excess CCT or I'P right-of-way not accessary for the Rail Flan, or for any other railroad
purpose,, shall be made available to City as shown on the Rail Plan. This consists of strips of
Railroad right-of-way for street purposes as shown in the Rail Plan which will be dedicated to
City at no cost, as well as other parcels as identified in the Rail Plan which will be offered for
sale; to the City at fair ;market value.
5. City shall acquire in fee the real property accessary for the connection between
the CCT main lime and the east end of the reconstructed K11:B near Brandywine Station along
State. Hi hwav 1?, rne� e�tirT; the specifications as shown in the approved Rail Plan. Said real
property shall be conveyed by City to CCT at no cost to the railroads, and the cost to acquire
said real property in fee by City shall not be included in the Project Cost.
6Railroads agree to obtain all required federal and Ctalifornia public Utilities
Commission regulatory approvals and to construct, or have constructed the Rail Plan as per the
find plans and specifications for the Rail Plan. City shall use its best efforts to assist Railroads
with obtaining such permits and approvals. City, through the San Joaquin Council of
Governn-lents, has obtained $6,691,000 in Measure K funds for this project and will appropriate
the additional funds necessary for design and land acquisition as necessary to implement this
Memorandum of Understanding, Railroad will begin construction upon final approval, which
shall not bo unreasonably delayed, of construction contracts by City. upon execution of
construction contract(s) by Railroads, City shall advance tent percent (101/1) of the contract
arnount to Railroads, and then pay Capon invoice by Railroads for construction work, up to the
maximum arno€znt of the City's contribution toward Project Costs as set forth in Section g. In the
event the City makes payments later than thirty (30) days after invoice, the City agrees to pay the
Railroads interest on the unpaid invoice balance at a rate of 1% per month.
2
i. Railroads may designate alternate: improvements, meeting the goals of this
project, but at a shall make the necessary improvcments to:
a) abandon the. Lodi Ave. tracks west of the east Right -of -Way of Beckman Rd.;
b) pi�ov isle service: to Lodi industrics comparable to the existing service;
c) provide an at -grade pedestrian crossing on the. KHB at Central Ave, abed:
d) provide street right of way and property per Section 4.
K If necessary to accomplish the goals of the Dail Plan., UP agrees to lease to CCT'
property it leas �;va<l��ble that is r races aLy to maintai�� effiei�,��t mil service to Lodi, This ii -.eludes
the K1+B and property for the interehange; tracks to be located along the Fresno Subdivision as
depicted oa the Rail Plan,
9. The. City agrees to contribute not more than 56,694,000 toward the "Project Cost„
of the Rail Plan. City and Railroads agree the cost of the Rail Plan, along, with unforeseen
expenditures, shall collectively be referred to as "Proiec:t Costs". Deviations from approvedpla s
do not constimo unforeseen expenditures as provided for herein, The party or parties requesting
deviations (change orders) from the, approval plans shall bear the cost of such changes, except
that designated alternate; improvements per Section i shall be considered Project Costs.
10, City an(! Railroads agree that all contractors hired. by Railroads to complete the
Rail Place, shall be required to provide normal. and customary insurance naming City and
Railroads as additional insured, Railroads shall abide by all applicable; wage laws in the
construnon. of the Dail Place.
11. Railroads shall give appropriate notice to their tenants to remove and/or relocate
tenant facilities that are within areas of construction of the: Bail Place and said relocations shall be
at. 110 expen,., to City.
[Signatures on f=ollowing Pagel
Accepted For.
City of .Lodi, a municipal corporation
Nanw, H. Dixon I-I'vim
Tide, Cily mmmuer
�Np m'%'ed �s to
1?kat dail r , days, Cir Attar7ey
Attest:
` L1sIt , 11ackstc , City, Clerl
Accepted For,
lnion Pacific Railroad Company
t�
Nar-ne: Duff
Tide.- Executive Vice Presidetat Opermion
Accepted For:
+tee ntraj,C,a if a ' rac
amc� Jeff' L. V a haal
Title: President
Accepted For:
The Burlington Northern and
ompny