11-29-2011 City Council Study Session PacketCity of Grand Island
Tuesday, November 29, 2011
Study Session Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
Mary Lou Brown
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Larry Carney
Linna Dee Donaldson
Scott Dugan
Randy Gard
John Gericke
Peg Gilbert
Chuck Haase
Mitchell Nickerson
Bob Niemann
Kirk Ramsey
Call to OrderCity of Grand Island City Council
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
Invocation
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item -1
Discussion Concerning Burlington Northern Railroad Double
Track Project Contract
Tuesday, November 29, 2011
Study Session
City of Grand Island
Staff Contact: Tim Luchsinger
City of Grand Island City Council
Council Agenda Memo
From: Timothy Luchsinger, Utilities Director
Meeting: November 29, 2011
Subject: Discussion Concerning the Burlington Northern Railroad
Double Track Project Contract
Item #’s: 1
Presenter(s): Timothy Luchsinger, Utilities Director
Background
In 1993, Burlington Northern Railroad completed an elevated rail overpass to eliminate
traffic conflicts caused by an at-grade crossing with the Union Pacific Railroad. In April
of this year, the City was advised by Burlington Northern Santa Fe Railway that they
were proceeding with a project to widen this overpass to a double track to alleviate traffic
congestion as a result of multiple tracks reducing to a single track through Grand Island.
As a result of this, multiple electrical, water, and sewer utility crossings by the City
across BNSF right-of-way will need to be modified to accommodate the track
improvement project. These modifications include either relocating utilities or
encasement of the utilities to current railroad crossing standards. BNSF would also like to
acquire portions of Utilities Department properties adjoining BNSF property south of the
JBS facility and at the Burdick Station. Crossing agreements currently in place with
BNSF require that utilities conflicts in railroad right-of-way be corrected at the City’s
expense. Relocations outside of railroad right-of-way and acquisition of City property are
subject to negotiations regarding compensation.
Discussion
In order to expedite some of the regulatory processes needed to meet their project
schedule, BNSF has offered to undertake the design and relocation of all utility crossings
at their expense, in exchange for transfer of the required Utilities Department property
and other considerations. Their proposed Master Utility Relocation Agreement is
attached. The other considerations include the following.
· The City will cooperate and refrain from causing any delays and will grant any
required construction approvals.
· The City will complete work, designated to be by the City, in accordance with the
project schedule.
· The City will resolve any construction issues within two business days.
· The City will provide review of all utility design by the BNSF within one week.
· The City will execute standard crossing agreements for all utilities in BNSF right-
of-way within six months.
· The City will provide all property rights and temporary construction easements
within one month.
· The BNSF will acquire all property rights for relocating utilities outside of BNSF
right-of-way.
Subject to approval of the utility agreement, the BNSF will provide aesthetic treatment to
the retaining wall that will be used on much of the project, to improve its appearance and
reduce the impact of graffiti.
City and BNSF project management staff is scheduled to be present to discuss the details
of the agreement as may be required by Council.
Conclusion
This item is presented to the City Council in a Study Session to allow for any questions to
be answered and to create a greater understanding of the issue at hand.
It is the intent of City Administration to bring this issue to a future council meeting for
the consideration of approval of the Master Utility Relocation Agreement with the
Burlington Northern Santa Fe Railway.
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Figure 2. Georgia Asshlar Cut Sheeet Image
Phase I
Phase III
1
MASTER UTILITY RELOCATION AGREEMENT
THIS UTILITY RELOCATION AGREEMENT (this "Agreement") is entered into and
effective as of this _______ day of __________________, 20____ (the “Effective
Date”), by and between the CITY OF GRAND ISLAND, NEBRASKA (the "City"), and
BNSF RAILWAY COMPANY, a Delaware corporation ("BNSF").
RECITALS
A. BNSF plans to construct a second main track on the Ravenna Subdivision
passing through Grand Island, Nebraska (the "Project").
B. BNSF has notified the City that certain of its utility facilities and appurtenances
(the "Utilities") are in locational conflict with the Project and has requested that
the City relocate the Utilities in order to accommodate the Project.
C. With respect to certain Utilities under permits obligating the City to undertake
relocations and other Utilities without existing permits between the City and
BNSF and/or its predecessors, BNSF desires to cause such relocations to occur
at its cost.
D. Due to budgetary and other resource restraints, the City has been unable to
relocate the Utilities; therefore, BNSF has requested that the City allow BNSF to
undertake a relocation of the Utilities (the "Work") as necessary to accommodate
the Project.
E. The parties desire to enter into this Agreement to outline their respective
obligations regarding the cost and timely execution of the Work.
NOW, THEREFORE, for the mutual covenants contained herein and other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereby agree as follows:
1) BNSF Obligations
a) BNSF shall fund one hundred percent (100%) of the cost of the Work
required by the Project and initiated after the Effective Date. The
execution of this Agreement shall in no way impair preexisting agreements
between the parties as to Work commenced prior to the Effective Date.
The respective Work obligations of the parties are set forth on Exhibit A,
which is attached hereto and incorporated by this reference. Funding
obligations assumed by BNSF under this Section 1(a) shall also include
funding for Work that the City is obligated to fund under the terms of
existing utility permits between the parties as well as Utilities encroaching
on BNSF property without permits. However, voluntary payment by BNSF
for Work which it otherwise has no contractual payment obligation shall in
2
no way be construed as a waiver of any of its other rights with respect to
the City under existing and future utility permits.
b) Reimbursement to the City for Work completed by City forces shall be in
accordance with the rate schedule set forth in Exhibit B, which is attached
hereto and incorporated by this reference.
c) For all Work funded by BNSF in accordance with subsection (a) above,
BNSF shall be free to use a contractor of its choosing.
2) City Obligations
a) The City agrees to cooperate in all respects with BNSF throughout the
course of the Project and otherwise refrain from causing any delay in the
execution of Work whatsoever. The City further agrees to grant BNSF any
required construction approvals and acquire any third party approvals
required for the Work under this Agreement.
b) For Work which the City, using its own forces, agrees to complete in
accordance with the schedule for Work set forth in Exhibit A, the City shall
provide contact information for a primary and secondary representative for
the purpose of coordinating such work with BNSF.
i. The City’s representatives shall cooperate with BNSF and BNSF’s
contractor in the coordination of Work the City elects to perform
with its own forces.
ii. In agreeing to the timing of the parties respective Work obligations
to be contained in Exhibit A, the schedule for Work undertaken by
the City shall in no way adversely affect the Work to be performed
by BNSF’s contractor.
iii. For any Work undertaken by the City on BNSF’s right of way, the
City shall pay for the cost of flagging services.
iv. In the event that the City fails to complete Work it elects to
complete using its own forces in advance of the deadlines set forth
in Exhibit A, BNSF shall have the right to complete such Work
using its own contractor. Further, the City shall forfeit its right to
reimbursement from BNSF under this Agreement to the extent of
any Work not completed in accordance with the timelines set forth
in Exhibit A.
c) The City agrees to resolve any and all construction issues which may
arise throughout the course of the Work within two business days of its
initial receipt of notice of such issues from BNSF or BNSF’s contractor.
When giving the City notice of construction issues, BNSF shall also
provide the City with its recommended resolution of such issue. In the
event that the City fails to resolve any such construction issue within two
business days, the City will be deemed to have concurred in the resolution
of such issue recommended by BNSF.
3
d) The City shall expeditiously review and approve all utility designs
submitted by BNSF. The City further agrees to provide a one week
turnaround time for review and approval of utility designs submitted to it by
BNSF. In the event that the City has not completed its review and
approval of any utility design within one week of its submission by BNSF,
such design will be deemed approved by the City.
e) No later than six (6) months following the execution of this Agreement, the
City shall execute BNSF’s standard Utility Crossing Agreement for (1) all
Utilities to be relocated on BNSF property for which Utility Crossing
Agreements exist and (2) all Utilities present and existing on BNSF
property for which no Utility Crossing Agreements exist. Copies of BNSF’s
standard Utility Crossing Agreements, the forms of which depend on the
particular type of Utility, are included as Exhibit E, which are attached
hereto and incorporated by this reference.
f) No later than one (1) month following the execution of this Agreement, the
City shall provide, at no cost to BNSF, all necessary property rights for the
completion of the Project, including but in no way limited to temporary
construction easements. The locations of properties required by BNSF for
the completion of the Project are set forth on Exhibit D, which is attached
hereto and incorporated by reference.
g) For Utilities to be relocated outside of BNSF’s right of way, BNSF shall be
primarily responsible for acquiring any and all property rights which the
City needs but does not currently hold. Property rights to be acquired by
BNSF under this subsection shall also include the right for BNSF and/or its
agents to access properties for the purpose of completing Work
hereunder. In the event that the acquisition of property rights under this
subsection threatens to delay the Project for any reason, the City shall
exercise its power of eminent domain in order to acquire necessary
property rights.
3) Terms and Conditions of Existing Permits Govern
a) To the extent not inconsistent with this Agreement, the terms and
conditions of any and all existing utility permits between the parties shall
continue in full force and effect. The execution of this Agreement by the
parties will in no way, shape, or form alter or impair the current rights and
obligations of the parties as set forth in those instruments, except for those
changes made herein.
b) For Utilities existing on BNSF property without Utility Crossing
Agreements prior to the execution of this Agreement, BNSF hereby
agrees that the Utility Crossing Agreements to be executed by the City
shall in no way, shape, or form obligate the City to pay to BNSF any
amount as a fee for the right to have such Utilities located on BNSF
property.
4
4) Release and Indemnification
a) Personal Injury and Property Damage Claims
i. The City agrees to release, indemnify, defend, and hold harmless
BNSF, its officers, employees, agents, and contractors for all
losses, damages, expenses, injuries, or death to the City, its
employees, agents, and contractors, arising in any manner from the
performance of this agreement, except to the extent of BNSF’s
gross negligence or intentional misconduct.
ii. The City further agrees to release, indemnify, defend, and hold
harmless BNSF, its officers, employees, agents, and contractors for
all losses, damages, expenses, injuries, or death to any person,
including BNSF, which arise in any manner from the construction,
maintenance, relocation, use, state of repair, or presence of the
Utilities.
b) Utility Design and Utility Interruption Claims
i. The City agrees to release, indemnify, defend, and hold harmless
BNSF, its officers, employees, agents, and contractors for any and
all losses, damages, expenses, injuries, or death to any person
arising from or relating to (i) the design of and/or function of Utilities
undertaken by BNSF and/or its agents and (ii) service interruptions
in any Utility, except to the extent caused by BNSF’s gross
negligence or misconduct.
5) Term and Termination; Survival
a) This agreement shall remain in effect until the completion of the Project.
b) The obligations set forth in Section 4 (release and indemnification) shall
survive any termination of this agreement.
6) General
a) Counterparts. This Agreement may be executed in any number of
counterparts with the same effect as if all parties hereto had signed the
same document. All such counterparts shall be construed together and
shall constitute one agreement, but in making proof hereof it shall only be
necessary to produce one such counterpart.
b) Assignments.
i. The City may not assign its rights and obligations under this
Agreement without the prior written consent of BNSF. All
assignments made without the written consent of BNSF are VOID.
ii. BNSF may assign its rights or obligations under this agreement
without the City’s consent, but BNSF shall provide notice of such
assignment to the City.
c) Modification. This Agreement may be modified or amended only by a
writing signed by each party hereto.
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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed by its duly authorized representative.
THE CITY OF GRAND ISLAND, NEBRASKA BNSF RAILWAY COMPANY
_________________________ _________________________
(Signature) (Signature)
_________________________ _________________________
(Name Printed) (Name Printed)
_________________________ _________________________
(Title) (Title)
6
Schedule of Exhibits
Exhibit A – Project Timeline
Exhibit B – City Reimbursement Schedule
Exhibit C – (Reserved)
Exhibit D – Additional Properties Required for Completion of the Project
Exhibit E – Samples of BNSF’s Standard Utility Crossing Agreements
Exhibit E-1 – Sample Supplemental Agreement
Exhibit E-2 – Sample Electrical License
Exhibit E-2 – Sample Pipeline License
Grand Island City Council Study Session
Tuesday, November 29, 2011
Todd Kuhn, P.E.
Manager, Engineering
Master Utility Relocation Agreement
1
l BNSF’s primary route for coal trains headed to
the Midwest and East runs through Grand
Island
l On this 360-mile route between Alliance and
Lincoln, 58 miles of single track remain
l BNSF plans to construct 10 miles of new 2nd
main track between Phillips and McDonald
(Hwy 281 & 2) through Grand Island
l Overall plan is divided into 3 smaller project
segments
Project Overview
2
Project Overview
3
l Construction on Projects 1 and 2 started in
October
l Substantial completion and in-service of
Projects 1 and 2 are expected near the end of
2012
l Construction schedule for Project 3 is
unknown at this time, but will follow
completion of Projects 1 and 2
Project Overview
4
l There are 57 City of Grand Island utilities that
are impacted by this project (water, sanitary,
storm & power/electrical)
l These utilities will need to be either adjusted,
encased, or relocated in order for the 2nd track
to be constructed
l Many of these utilities currently lie on BNSF
right-of-way –some have existing railroad
permits and others do not
City Utilities
5
l Relocation clause from a City of Grand Island
waterline permit (7/31/63, Q-47977):
“If the Railroad Company, for itself or on behalf of its
lessees or grantees, should at any time or from time to
time find it necessary or desirable to make changes in
any existing building, track, structure, or overhead or
underground installation, or place any additional building,
track, structure, or overhead or underground installation,
on any premises where said pipe line is located, the
Licensee [City] agrees that it will promptly, at its own cost
and expense and without cost or expense to the Railroad
Company or the Railroad Company’s lessees or
grantees, upon receipt of written notice from the Railroad
Company so to do, relocate, change/encase, or remove
said pipe line as requested or required by the Railroad
Company.”
Existing Utility Permits
6
l For such utilities with existing permits, BNSF
provided the City with the proper notices and
requested relocation of those utilities in conflict
with the 2nd main project
l Due to budgetary and resource constraints, the
City will not be able to either fund or perform the
required utility relocations in the timeframe to
support the 2nd main project
l As such, BNSF is proposing a Master Utility
Relocation Agreement to cover the costs of City
utilities affected by the 2nd main project in
exchange for City cooperation, timely review &
approval, and small amounts of property
Master Utility Agreement
7
l Following agreement execution, BNSF will fund 100%
of all City utility relocations, including design,
construction, and oversight
l This funding includes affected City utilities that
currently have existing Railroad permits with
relocation or termination clauses
l The estimated savings to the City based on these
prior permits is approximately $1.3 million
l Funding of these relocations by BNSF is voluntary
and the terms of the existing permits will still govern
in the future.
l City forces will perform some electrical and power
relocations at BNSF’s expense, but the majority of the
work will be performed and managed by BNSF
BNSF’s Funding Offer
8
l Cooperation with BNSF and timely resolution to
construction issues which may arise during the 2nd
main project
l Timely review and approval of utility designs
submitted by BNSF
l Within 6 months, execute BNSF Utility Crossing
Agreements for all utilities being relocated and all
utilities currently existing without agreements or
permits. New agreements will not impose any
additional permit fees than exist today.
l For City utilities being relocated off BNSF right-of-
way, exercise its power of eminent domain if BNSF
is not able to secure easements on the City’s
behalf
City Obligations -Utilities
9
l Within 1 month, provide to BNSF, all necessary
City property rights to accommodate the 2nd main
project.
l Total property involved is 4.9 acres and is valued
at approximately $24,500.
l Property involved are strips of land along BNSF
right-of-way between Bismark Road and Stuhr
Road, adjacent to Burdick Power Station, and at
Webb Road.
l Avoids BNSF filing condemnation for these
property rights
City Obligations -Property
10
l In order to avoid significant property impacts,
BNSF will be constructing new retaining walls
along the west side of the right-of-way between
the Union Pacific tracks and Capital Avenue
l Pending City approval of the Utility Master
Agreement, BNSF will proceed with an aesthetic
block treatment and graffiti protection on these
walls
l The Georgia Ashlar concrete formliner creates the
appearance of a natural stacked stone wall
l Graffiti protection prevents paint from being
absorbed into the concrete for easier cleanup
BNSF Retaining Walls
11
BNSF Retaining Walls
12
l In summary, provides benefits to both the City of
Grand Island and BNSF
l Key highlights:
l City avoids significant costs (approximately
$1.3 million) of utility relocations governed by
the terms of existing Railroad permits
l BNSF and City avoid significant utility
relocation timelines so that the 2nd main project
can be completed quickly
l BNSF and City avoid costs and timelines
associated with property condemnation
Master Utility Agreement