CR 2000-193 Contract Amendment-Railroad Agreement
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. Date: November 16, 2000 o P K \ ~ Council Report 2000-193
Contract Amendment - Railroad Agreement
Proposed Action
Staff recommends adoption of the following motion: Move to approve the contract
amendment to the 3-Citv railroad aqreement..
Adoption of this motion will allow flexibility in the use of various blocking locations,
should the managers of the three cities and the railroads agree to changes.
Overview
The Cities of Hopkins, Minnetonka, and St. Louis Park passed an agreement in
December of 1999 which allowed the construction of a new switch in Hopkins for the
purpose of blocking and switching cars. Since the installation of the switch, problems
have emerged in Minnetonka with noise in residential areas.
The agreement allows for very specific arrangements on the times and locations of
blocking activities. The attached contract amendment would allow for changes in the
. arrangements, if all parties are in agreement, without bringing the changes in for
contract amendments.
Staff is supportive of the amendment in that Hopkins cannot make the potential
changes without consideration.
Primary Issues to Consider
. Will there be negative impacts on Hopkins if this amendment is passed.
The amendment itself would not change how the switching operations are
handled. Changes would require future decisions. This amendment will only
affect how changes are approved.
SupportinQ Information
. Contract amendment
. Contractual Agreement
~~C::Sr~
Steven C Mielke
City Manager
. Financial Impact: $ None_Budgeted: Y/N Source:
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Related Documents (C1P, ERP, etc.):
Notes:
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- . NOtJ-"07-2000 16:43 CITY OF MINNETONKA 952 939 8244 P.04/05
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Contract Amendment
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In December 1999, the cities ofMinnetonka (MTKA), 81. Louis Park (SLP), and
Hopkins (HOPKINS)(collectively CITIES), Twin Cities & Western Railroad
(TCWR) and Canadian Pacific Railway (CPR) entered into an agreement
(AGREEMENT) regarding blocking procedures within the CITIES. The objective
was to reduce noise levels experienced by adjacent residents without shifting noise
to other residents. Several months of experience under the AGREE.MENT
revealed that residents not previously affected were being adversely impacted by
the new blocking procedures. Accordingly, it appears appropriate to revise the
procedures to reduce this unanticipated impact.
Therefore, the parties agree that a new paragraph is added to section 2.2 of the
AGREEMENT to read as follows:
If there are adverse noise impacts on residents who did not have
those impacts before the revised blocking procedure. the parties may
agree to modity the terms of this section through a memorandum of
understanding executed by the city managers of the respective
CITIES and authorized representatives of TCWR and CPR.
. In all other respects, the AGREEMENT remains the same.
Canadian Pacific Railway
Date:
Mark Nordling, Director of Commercial Development
Twin Cities & Western Railroad Company
Date:
Kent Shoemaker, Chairman and C.E.O.
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- ~Ol)-07-2000 16:43 CITY OF MINNETONKA 952 939 8244 P.05/05
. City of Minnetonka .~
Date:
Karen J. Anderson, Mayor
Date:
John Gunyou, City Manager
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JeffJacobs,~ayor
Date:
Charles Meyer, City Manager
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Charles D. Redepenning, Mayor
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Steven Mielke. City Manager
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Contractual Agreement
FOR: Purchase of Materials and Labor for Installation of a New Cross-Over and
Revisions to the Twin Cities & Western Railroad Blocking Procedures within the
Cities of Minnetonka, Sl. Louis Park, and Hopkins.
The following document serves as a contractual agreement between the Cities of
Minnetonka, Minnesota (MTKA); St. Louis Park, Minnesota (SLP); and Hopkins,
Minnesota (HOPKlNS) (collectively CITIES); Twin Cities & Western Railroad
Company (TCWR); and Canadian Pacific Railway (CPR).
Project Objectives -
The short-term objective of this project is to reduce the noise levels experienced by
residents living adjacent to the rail segments that are used for blocking operations by
TCWR. This is to be accomplished without increasing noise levels to residents not
currently affected by the operations, and without obstructing the Fifth A venue grade
crossing in Hopkins during the operation.
. The long-term goal of the CITIES and of TCWR is to eliminate all blocking operations
from the three cities. The use of the track segment in Hopkins is considered as a
temporary improvement while a permanent solution is pursued. The CITIES, TCWR,
and CPR agree to work together toward a solution that would move al1 blocking
operations out of these cities.
Project Description
The agreement provides for MTKA and SLP to purchase materials from TCWR and
labor from CPR to install a new crossover between the CPR's Bass Lake Spur mainline
track and the parallel sidetrack at a location approximately 3600 feet west of Fifth
A venue in Hopkins, Minnesota (Figure 1).
The agreement requires TCWR to use the new cross-over to perform its blocking
operations that occur between 10:00 p.m. and 7:00 a.m. on all days of the week, and to
evenly distribute daytime blocking operations using the three existing blocking locations.
1.0 Crossover Materials and Installation
1.1 Equipment Purchase
MTKA and SLP agree to pay TCWR a sum of $40,000 for materials for the
. installation of a new crossover. This price includes delivery to the site. Any
required materials that are not included in the list below will be considered
incidental and will be provided by TCWR at no additional cost. The turnouts and
connecting track shall remain the property of TCWR.
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. Oil (2) Reconditioned number 9 turn-outs
e Connecting track
. Ballast (including providing a locomotive to dump ballast)
e Ties, plates, spikes, and miscellaneous hardware
1.2 Labor for Track Installation
MTKA and SLP will pay CPR a sum of $47,272 (plus provision for up to an
additional 10% for contingencies) for the labor to install the above materials.
CPR will provide an itemized invoice to MTKA and SLP upon completion.
1.3 Construction Schedule
TCWR must have all materials delivered to site by November 17, 1999. The
construction will begin Thursday, November 18, 1999. Project is to be completed
approximately by Friday, December 3, 1999.
L4 Construction Specifications -
All track construction will be performed according to AREA specifications.
Canadian Pacific Railway will warranty the labor for a period of (me-year
following construction completion.
1.5 Track Maintenance
. Maintenance on the new crossover will be performed by CPR. The cost of
normal track maintenance will be borne by TCWR.
Any costs associated with repair to rail and/or rail cars resulting from a derailment
occurring on the proposed crossover are the responsibilities of the operating
railroad company.
1.6 Payment
MTKA and SLP will pay TCWR a sum of $40,000 for materials, and CPR a slim
of $47,272 plus contingencies for labor within 30 days from the completion date.
Cost-split is population based (MTKA - 52,176 (54.3%), SLP ~ 43,967 (45.7%)).
MTKA will pay a sum of $47,361.78, with an additional $2,565.41 budgeted for
labor contingency, tot a] responsibility not to exceed $49,927.19. SLP will pay a
sum 01'$39,910.22, with an additional $2,161.79 budgeted for labor contingency,
total responsibility not to exceed $42,072.01. TCWR and CPR will pay for all
labor and materials costs in excess of these amounts.
2.0 Revisions to Blocking Procedures
As between TCWR and CITIES, the following Blocking Procedures shall apply.
The blocking procedures set forth below shall not apply to any operations or
procedures of CPR.
. 2,1 Current Blocking Procedure
Westbound TCWR trains pick-up rail carS from the river terminals in North
Minneapolis or Savage or from Class I Railroad switching yards in S1. Paul. The
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. cars are picked up in the order that they become available, resulting in a random
ordered train. The cars must be rearranged into an appropriate sequence before
delivering to clients.
TCWR uses switches to double track at three different locations (Figure 2). Each
of these locations has adjacent residential land-use. Trains are split and re-
coupled repeatedly until the train is sorted into the proper order (Figure 3). A
typical blocking operation duration is 30 minutes to four hours.
2.2 Revised Blocking Procedure
Blocking operations beginning after 7:00 a.m. and completed prior to 10:00 p.m
will continue to be performed at the existing blocking locations in St. Louis Park
or Minnetonka. TCWR agrees to make efforts to evenly distribute the "daytime"
blocking operations between the three existing blocking locations during the
daytime hours. Crews will vary the locations so that each of the three existing
blocking locations is receiving an approximately equal number 9f blocking
operations on a day to day basis. TCWR will make efforts to avoid using one
location for a majority of the blocking during anyone-week time interval.
TCWR will use the new crossover in Hopkins exclusively for all blocking
operations that extend beyond 10:00 p.m., or begins between the hours of 10:00
. p.m. and 7:00 a.m.
During these hours, only TCWR trains of less than 60 cars in length will be
blocked using the new crossover. All blocking activities will take place in the
segment between Shady Oak Road and Fifth Avenue.
For trains exceeding 60 cars in length, TCWR will perform blocking operations as
follows:
. The train will be split into two segments at some point east of Fifth Avenue.
One segment will be left at this point while the remaining segment will be
driven to the new switch west of Fifth Avenue to be blocked. Once blocked,
that segment will be driven west beyond the switch west of Dominick Drive
and backed onto the sidetrack between Dominick Drive and the new switch.
The engine will then return to the mainline and drive east to pick-up the
second segment. The second segment will then be blocked at the new switch.
Once this segment is blocked, the train will be carried west to Dominick Dri vc
and connected to the first segment. The entire train will then be blocked using
the Dominick Drive switch. Typically, this will only require a few cuts, and
will minimize the activity within the residential area near Dominick Drive.
Additional procedures may be considered, but must be accepted in writing by all
parties and added to this document as a Contract Amendment.
. Maintaining vehicular traffic across the grade crossing at Fifth A venue in
Hopkins is crucial. At no time during the blocking process may rail cars block
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. Fifth Avenuc or approach the street crossing to the poinllhat the crossing gates
are activated.
2.3 Anticipated Impacts
Land use adjacent to the proposed blocking segment is primarily industrial or
commercial. Based on noise studies of simulated blocking operations during the
summer of 1999, noise impacts from the relocated operations will not exceed the
Minnesota Pollution Control Agency (MPCA) noise standards to any residential
areas for trains with less than 60 cars.
Longer trains, however, will be required to make their final cuts at the Dominick
Drive switch. Since the train will be composed of two segments that have already
been blocked in the non-residential segment, the duration of the operations at
Minnehaha Creek or Dominick Drive will bc less than what is currently being
performed at these locations.
2.4 Reporting Progress -
The following reports will be prepared to assure that this project is achieving its
objectives.
\. RLK-Kuusisto, Ltd. will maintain its current voice mail hotline at (612) 922-
8258, ext. 128. This phone number will be distributed to residents, city staff,
. and railroad companies to report feedback on the operation changes. A report
will be sent to all parties each month.
') TCWR will keep ajournal of its blocking operations (for both daytime and
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nighttime operations). A journal entry will be made for each blocking
operation including a rail car consist list, the location (or procedure for
nighuime operations of trains exceeding 60 cars), and the start and completion
time for the operation. The journal will be sent to all parties each month.
3. TCWR will also keep track of any additional operational costs that result fWIll
thc revisions in their blocking operations. Trains of less than 60 cars, or trains
blocked hetween the hours of 7:00 a.m. and 10:00 p.lll. will not he considered.
TCWR is required hy law to keep rail Jogs that contain information that may
satisfy one or more of the above reporting requirements. TCWR will provide a
copy of these reports to the CITIES. The CITIES will dctermine if submitting
reports in the existing format will satisfy the reporting requirements.
2.5 Duration of Operational Changes
This operational change is considered temporary while a permanent solution is
developed. It is anticipatcd that the permanent solution will be completed within
a time period of two years. If significant progress has not been made on a long-
tenn solution by December I, 200 I, the CITIES and TCWR will meet to
determine how the blocking procedures will be conducted beyond that date.
. 2.6 Project Non~Performance
The performance of the project will be continually evaluated by the CITiES and
by TCWR. Each of these parties reserves the right to abandon the project by
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. giving notice to the other parties at any time if the project is not achieving its
objecti ves.
If the project is abandoned for any reason, TCWR will refund the material
purchase price of $40,000 to MTKA and SLP. In such case, TCWR agrees to
cease blocking operations at the Hopkins location. This agreement grants
HOPKINS the power to prohibit TCWR from blocking trains at that location by
having CPR lock the switches for mainline movements only thereby disabling the
crossover, unless such lock interferes with CPR operations.
2.7 Long.term Considerations
The materials and labor costs borne by MTKA and SLP, totaling $87,272 will be
considered as contribution to a permanent solution as negotiated between the
CITIES and TCWR. It is the intention of all parties, that the two turnouts and
miscellaneous materials be salvaged for use in construction of a permanent
solution.
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Material costs exceeding the $40,000, as well as the additional operational costs
borne by TCWR to perform the blocking operations defined in this short-term
solution will be considered as a contribution toward a long-term plan.
2.8 Crossover Removal
. In the event that TCWR or the CITIES request the removal of the crossover
installed under this Agreement for any reason, the removal and restoration of both
CPR's main line track and siding to its previous condition shall be the
responsibility of the party requesting the removal.
In the event that the project is abandoned and TCWR purchases the material as
prescribed in Section 2.6, CPR shall have the right to remove the turnouts and
connecting track and restore the mainline track and siding at the expense of
TCWR. CPR must notify TCWR 30 days prior to the removal to allow for
TCWR to schedule for pick up of the removed materials.
3.0 Legal Considerations
3.1 Third Party Relationship
There are no third party beneficiaries of this Agreement. The terms, covenants,
and conditions of this Agreement may only be enforced by parties to this
Agreement.
3.2 Indemnification
TCWR and the CITIES individually and collectively agree to defend, indemnify.
and hold CPR harmless for all loss or liability incurred by it in connection with
work performed by the parties to the Agreement. Such indemnity shall include
. loss or liability for personal injury, property damage, or environmental liability
resulting from the release of a hazardous substance.
11/16/99
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3.3 Notice Procedure
All notices, reports, correspondence, or other cOlTlmunications relating to this
Agreement shall be distributed to the parties the following mailing addresses:
Dave Childs, City Manager Charles Meyer, City Manager
City of Minnetonka City of St. Louis Park
14600 Minnetonka Blvd. 5005 Minnetonka Blvd.
Minnetonka, MN 55345 S1. Louis Park, MN 55416
Steven Mielke, City Manager William F. Orusch, President
City of Hopkins Twin Cities & Western Railroad Co.
10 10 First A venue North 2925 12th Street East
Hopkins, Minnesota 55343 Glencoe, MN 55336
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Gary Mentjes, Mgr. Public Warks Lee Koppy, Project Engineer
Canadian Pacific Railway RLK-Kuusisto, Ltd.
Soo Line Building. Suite 1710 6 t 10 Blue Circle Drive
105 South Fifth Street Suite 100
. Minneapolis, MN 55440 Minnetonka, MN 55343
Notices shall be deemed to be delivered when personally delivered to the parties
representatives identified above or one business day after being mailed to the above
addresses by 1st class U.S. mail. Any party may change its address or designated
representati ve for notice purposes by notice to other parties as stated in this paragraph.
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The undersigned understands and agrees to all terms of this contract.
Canadian Pacific Railway
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Mark Nordling, Director of C ercial Development
Twin Cities & Western R.ailroad Company
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Kenl Shoemaker, Chairman and c.E.O. /'
City of Minnetonka
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Karer J_ erson, Mayor
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David Childs, City Manager
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Jeff Jacob',
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<;:h~rles Meyer, City rjail. r
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ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
Based on telephone conversation on 11/18/99 with William F. Drusch, President, TCWR,
this attachment has been appended to clarify the intent of the language included under
Section 2.6 of the Contractual Agreement dated 11/16/99. The final paragraph of Section
2.6 reads as follows:
"If the project is abandoned for any reason, TCWR will refund the material purchase
price of $40,000 to MTKA and SLP. In such case, TCWR agrees tg cease blocking
operations at the Hopkins location. This agreement grants HOPKINS the power to
prohibit TCWR from blocking trains at that location by having CPR lock the switches
for mainline movements only thereby disabling the crossover, unless such lock
interieres with CPR operations."
. This paragraph is written with the intent of the CITIES to prohibit the use of the new
crossover for blocking operations if the project is not achieving its objectives. TCWR is
concerned that this wording could restrict their use of the existing trackage within the
City of Hopkins if the project were abandoned.
TCWR signature is valid only with the following clarification:
"If the project is abandoned for any reason, TCWR will arrange to have the proposed
crossover removed. This act will eliminate the possibility of using the proposed
crossover for blocking operations and will thereby satisfy the CITIES intents in the
second paragraph of Section 2.6, and eliminate the need for CPR to lock any
switches. Further, if the project is abandoned, TCWR will not be subjected to any
restrictions from using the existing trackage."
By initialing after my printed name, I agree to append the above Attachment A to the
Contractual Agreement dated 11116/99.
Mark Nordling, CPR .M (L.rJ Jeff Jacobs, SLP \/v;--
Kent Shoemaker, TCWR fc/~L Charles Meyer, SLP a.~
Karen]. Anderson, MTKA if).0-. ~\~
. Charles Redepenning, HOPKIN ~
David Childs, MTKA ~ Steven Mielke, HOPKINS L
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The undersigned understands and agrees to all terms of this contract.
Canadian Pacific Rail way
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Mark Nordling, Director of C n ercial Development
Twin Cities & Western Railroad Company
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Kent Shoemaker, Chairman and c.E.O.
City of Minnetonka
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Karc J. erson, Mayor
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David Childs, City Manager
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\ ~\ ~___-- EXISTING BLOCKING ,LO,<:::A TIONS _' C \ FIGURE
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STEP 1 Train stops east of switch with cars In STEP 4: Engine drops trailing cars on sidetrack &
random order returns to mainline to connect to leading
car plus trailing cars
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split, engine takes trailing cars STEP 5:Engine drops trailing cars on sidetrack
lead car at front on mainline but keeps lead car attached and returns
to mainline to pick up the next car
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P 3:Switch is thrown, engine reve rses pushing STEP 6: Process is repeated, switching cars back
trailing cars onto the sidetrack & forth, splitting & reconnecting until
cars are in the appropriate order.
I,@,I BLOCKING PROCESS I FIGURE I
SHOWN AT MINNEHAHA CREEK SIDE TRACK 3