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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. Novembe Robert J. Grand Isla Grand Isla 100 East P.O. Box Grand Isla Dear Mr. S As you kn existing s the west s retaining w request, B Council a below-des The aesth the appea natural ap climbing. Additiona protection from being cleanup o If you hav Sincerely, Todd M. K Manager Attachme er 21, 2011 Sivick and City Attor and City Hall First Street 1968 and, NE 6880 Sivick: now, BNSF Ra ingle main tra side of our cu walls are nec BNSF has rev pproval of the scribed aesth hetic treatmen arance of a na ppearance, an Example pho lly, these reta n barrier. This g absorbed in of the concrete ve any questio , Kuhn, PE Engineering nts rney 02 ailway will be ack. Concrete rrent right-of- essary to avo viewed the ad e Master Utilit etic treatmen nt will consist atural stacked nd the shallow otos of the wa aining wall sur s product will nto the voids o e surfaces wi ons, please co constructing e retaining wa -way between oid significant ddition of an a ty Relocation nt on our prop of casting the d stone wall. w depth of the all appearanc rfaces that ar be applied to of the concre th minimal pe ontact me at Todd M. K Manager E a second ma alls will be use n the Union P impacts to ad aesthetic treat Agreement o posed retainin e face of the r The Georgia e aesthetic “m ce are attache e within the re o the exposed te. Preventio ermanent stai (303) 480-65 Kuhn, PE Engineering ain track throu ed to constru acific tracks a djacent prope tment to these on December ng walls. retaining wall Ashlar formli mortar” lines w ed to this lette each of vand d concrete sur on of paint ab ning from gra 82 or todd.ku BNSF Ra 3700 Glo Denver, C 303-480- 303-319- Todd.Kuh ugh Grand Isl ct the new BN and Capital A erty owners. e proposed w 6, 2011, BNS ls with a form iner has a rela will reduce the er. als will be tre rfaces and wi sorption resu affiti. uhn@bnsf.com ailway Company obeville Road CO 80216 -6582 (Office) -0542 (Cell) hn@bnsf.com land alongsid NSF grade al Avenue. Thes At the City’s walls. Pendin SF will include liner that crea atively random e potential for eated with a g ill prevent pai ults in easier m. y de our ong se g City e the ates m, r wall raffiti int Figure 1. Georgia Asshlar Formlin ner Appearannce 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. 5 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