HomeMy WebLinkAboutResolution - 2000-R0187 - Agreement - West Texas & Lubbock Railroad - 06_20_2000Resolution No. 2000-R 0187
June 20, 2000
Item No. 84
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an agreement with the West
Texas & Lubbock Railroad entitled "First Amendment to the `Agreement For the
Relocation of a Portion of the Seagraves, Whiteface and Lubbock Railroad for
Construction of a Controlled Access Highway Facility in the City of Lubbock"' and any
other related documents. Said Agreement is attached hereto and incorporated in this
Resolution as if fully set forth herein and shall be included in the minutes of the Council.
Passed by the City Council this 20th day of June , 2000.
Y SI ON, MAYOR
A T:
7
L - _' -
KlythieTell, City Secretary
APPROVED AS TO CONTENT:
`�� R-4t��
Ji am,
S ategic lanning Manager
APPROVED AS TO FORM:
Linda Chamales,
Supervising Attorney- Office Practice
gs/ccdocs/rr amendmenucs
June 9,2000
Resolution Po. 2000—RO187
June 20, 2000
Item No. 84
FIRST AMENDMENT TO THE "AGREEMENT FOR THE RELOCATION
OF A PORTION OF THE SEAGRAVES, WHITEFACE AND LUBBOCK
RAILROAD FOR CONSTRUCTION OF A CONTROLLED ACCESS HIGHWAY
FACILITY IN THE CITY OF LUBBOCK, TEXAS"
This amendment agreement is entered into by and between the West Texas and Lubbock
Railroad Company, Inc., a Texas Corporation, hereinafter called "RAILROAD" and the
City of Lubbock, Texas, hereinafter called "CITY" to be effective on the date last
executed.
WITNESSETH
WHEREAS, the City and Seagraves, Whiteface and Lubbock Railroad
Corporation entered into an Agreement dated March 8, 1991, for the purpose of
relocating the Seagraves, Whiteface and Lubbock Railroad for construction of a
controlled access highway facility in the City of Lubbock; and
WHEREAS, the City and the Railroad have agreed to modify the agreement to
clarify current ownership of the railroad and to reflect other agreements regarding the
construction of the New Facility and the conveyance of the Old Right -of -Way;
NOW, THEREFORE, in consideration of the promises and of the mutual
covenants and agreements of the parties hereto, the parties agree to the following
amendments to the March 8, 1991, agreement:
1. Since the date of the agreement herein, referenced, ownership of the
Seagraves, Whiteface, and Lubbock Railroad Corporation has changed
and the railroad is now owned and operated by the West Texas and
Lubbock Railroad Company, Inc. All references in said agreement to the
Seagraves, Whiteface and Lubbock Railroad Corporation shall be
amended to read West Texas and Lubbock Railroad Company, Inc.; and
2. Article 2 introductory paragraph is deleted and replaced by the following
paragraph:
"ARTICLE 2. Responsibilities of CITY and RAILROAD in effecting the
relocation of the RAILROAD's operations from the Old Right -of -Way to
the New Right,of--Way including plans, specifications and construction of
the New Facilities (as hereinafter defined):"
Amendment to Agreement for Railroad Relocation
Page 1
3. Article 2, sub -paragraph D, Section (vi) is deleted and replaced by the
following paragraph:
"(vi) one rail siting, at approximately the location of the switches
identified in (v) above, containing storage capabilities of at least forty (40)
railcars;"
4 Article 2, sub -paragraph K is amended as follows:
"K. The City will, at no expense to the Railroad, obtain the approval of
the Interstate Commerce Commission, the Texas Railroad
Commission, the Surface Transportation Board and any other
necessary governmental body for the Railroad to abandon the Old
Right -of -Way and relocate and continue its operations over and
upon the New Right -of -Way. (Remainder of sub -paragraph K is
unchanged)."
5. Article 2, sub -paragraph S, is added to read as follows:
"S. The City will, at its own expense, resurface the track of the
existing railroad mainline (Levelland) between the south terminal
from approximately the intersection of Upland Street
northwestward approximately 13,200 feet to the proposed "Y"
connection.
(i). `Resurfacing' shall include the following services
a. Surveying existing alignment to determine both
horizontal and vertical placement; and
b. Reviewing existing horizontal and vertical alignment to
incorporate modifications to allow upgrade to 40 mph; and
c. Developing plan, profile, and summary of work to
include
1) Replacement of defective crossties and tie spikes
not to exceed 33% (with all defective crossties to be
removed being marked by a Railroad
representative), but reusing existing tie plate and
anchors; and
2) Cleaning of crib between all ties to allow
placement of ballast; and
3) Placement of minimum of six (6) inches of
ballast under tie throughout.
d. Providing smooth transitions at proposed yard and "Y"
locations; and
e. Construction observation during removal and
installation of specified times.
Amendment to Agreement for Railroad Relocation
Page 2
(ii). `Resurfacing' shall not include the following services
a. Modification or replacement of at -grade crossings; or
b. Modifications or replacement of at -grade signal systems
and protection equipment. No attempt will be made to
update existing signal system to 40 mph design speed; or
c. Replacement of the rail or guard rail; or
d. Replacement of turnouts; or
e. Rail grinding or other alteration of the existing rail; or
f. Modification or reconstruction of subgrade or subballast;
or
g. Modification or reconstruction of drainage or drainage
structures."
6. Article 2, sub -paragraph L is deleted and replaced by the following
section:
"L. The RAILROAD shall secure an agreement from the BNSF
(formerly AT&SF) allowing the RAILROAD to connect with the BNSF at
the new track intersection northwest of Loop 289 and shall gain track
rights from BNSF from this connection to the downtown yard ("BNSF
Agreement"). Said BNSF Agreement shall ensure the RAILROAD's
ability to connect with BNSF with at least the same frequency as now
occurs in connection with the Old Right -Of -Way and shall otherwise be
satisfactory to the RAILROAD in all respects. Written confirmation of
said BNSF Agreement, signed by both parties shall be a condition
precedent to conveyance of the New Facility, RAILROAD shall, prior to
incurring any expenses under this sub -paragraph, submit to the CITY for
its approval a schedule or schedules identifying the rates for all
professionals and personnel to be retained or used by the RAILROAD in
the exercise of its rights granted in this sub -paragraph. Said schedule or
schedules shall to the extent possible, also identify the range of costs that
may be incurred by the RAILROAD. Said schedule or schedules may be
disapproved by the CITY only if they are unreasonable, and approval by
the CITY may not be unreasonably withheld or delayed. All reasonable
fees, costs and expenses incurred by the RAILROAD in connection with
the exercise of the rights granted it in this sub -paragraph and which are in
conformance with the schedule or schedules previously approved by the
CITY shall, upon monthly submission of a detailed invoice to the CITY
and upon the CITY's approval thereof, be promptly paid by the CITY, and
such approval shall not be unreasonably withheld or delayed."
Amendment to Agreement for Railroad Relocation
Page 3
7. Article 2, subparagraph N is deleted and replaced by the following section:
"N. Upon completion of the New Facilities, the CITY shall provide the
RAILROAD with an American Land Title Association ("A.L.T.A.")
Survey, or its equivalent, of the New Right -of -Way, certified to the
RAILROAD and prepared by a registered Texas land surveyor, showing
all improvements, the New Facilities, lot lines, utility easements, roads
and showing no encroachments. RAILROAD agrees that the CITY's
provision of both Final Right -of -Way Maps for the New Right of Way and
`As Built' Construction Plans for the New Facilities will be deemed
equivalent to an A.L.T.A. survey for the purposes of this section."
8. Article 3, Conveyance is deleted and replaced by the following article:
"Article 3. Conveyance. (a) Promptly after the CITY' S payment to the
RAILROAD of all sums agreed to in the `Agreement Between West Texas
and Lubbock Railroad Company, Inc. and the City of Lubbock Regarding
Conveyance of a Portion of the Railroad Right of Way to the State of
Texas for Highway Construction' (`Conveyance Agreement') executed
simultaneously herewith, and satisfaction of all other conditions precedent
set forth in said agreement, the RAILROAD will convey to the STATE,
by quit -claim deed (in the form attached hereto as Exhibit "B" and made a
part hereof for all purposes) the RAILROAD's right, title and interest in
the Old Right -of -Way. The CITY, the STATE and the RAILROAD
hereby agree, and the CITY and STATE hereby acknowledge the
conveyance of the Old Right -of -Way `AS IS', with any and all defects of
any kind and nature, including, without limitation, title defects of any kind
and nature, including, without limitation, title defects and all
environmental defects, known or unknown. Concurrently with
RAILROAD's conveyance of the Old Right -of -Way to the State, the
RAILROAD will convey to the State by Assignment and Bill of Sale (in
the form attached hereto as Exhibits "C" and "D" and made a part hereof
for all purposes), `AS IS and WHERE IS' any and all personalty
associated with the Old Right -of -Way, including but not limited to, all
rails, ties, tie plates. spikes, switches, gates, lights, trackage and
appurtenances (the `Old Facilities'), but specifically excluding the
following personalty which the RAILROAD has designated that it will
salvage pursuant to Article 8 of this Agreement: all metal track materials
including but not limited to rails, tie plates, spikes, switches, gates, lights,
signals, connectors, crossings, trackage and appurtenant facilities.
Amendment to Agreement for Railroad Relocation
Page 4
Promptly after the CITY's completion and the RAILROAD's acceptance
of the New Facilities, the CITY will convey to the RAILROAD, by
recordable warranty deed, good and indefeasible fee simple title to the
New Right -of -Way, subject only to the Permitted Exceptions. The CITY
will also convey to the RAILROAD, by good and merchantable Bill of
Sale, all right, title and interest of the CITY in and to the New Facilities,
free and clear of any and all claims and liens. Notwithstanding anything
herein to the contrary, if on the Conveyance Date the CITY has possession
but does not have fee simple title to one or more parcels in the New
Right —of -Way as a result of ongoing eminent domain proceedings, the
CITY shall transfer possession of said parcel or parcels to the
RAILROAD on the Conveyance Date and shall, upon the conclusion of
said eminent domain proceeding or proceedings, convey to the
RAILROAD, by recordable warranty deed, good and indefeasible fee
simple title to said parcel or parcels, subject only to the Permitted
Exceptions.
(b) The date upon which the aforesaid conveyance from the CITY to the
RAILROAD shall take place will be identified herein as the `Conveyance
Date.'
(c) On the Conveyance Date, there shall be delivered to the
RAILROAD an owner's title insurance policy that is consistent with the
then most recent commitment for title insurance approved by the
RAILROAD, showing title to the New Right -of -Way in the RAILROAD,
subject only to the Permitted Exceptions."
9. Article 4. Additional Consideration, is deleted and replaced by the
following article:
"Article 4. Additional Consideration. As and for additional consideration
for RAILROAD's agreement to convey the Old Right -of -Way and
relocate its operations to the New Right —of --Way as set forth above, the
CITY hereby agrees to pay the RAILROAD, on the date RAILROAD
conveys the Old Right -of -Way to the STATE, an amount equal to the
difference between the Agreed Value of the Old Right -of -Way (as
hereinafter defined) and the Agreed Value of the New Right -of -Way (as
hereinafter defined), in accordance with the terms of the Conveyance
Agreement executed simultaneously herewith.
a. For purposes of this Agreement, the `Agreed Value of the New Right -
of -Way' shall be three hundred fifty thousand dollars ($350,000.00).
b. For purposes of this Agreement, the `Agreed Value of the Old Right -
of -Way' shall be nine million, six hundred fifteen thousand dollars
($9,615,000.00)."
Amendment to Agreement for Railroad Relocation
Page 5
10. Article 8. RAILROAD's Salvage Rights. Is deleted and replaced by the
following article:
"Article 8. RAILROAD's Salvage Rights. The RAILROAD may, at its
option, salvage that portion of the "Old Facilities" identified in. Article 3
(a) as designated for salvage ("Salvage Rights"). The salvage operations,
if undertaken, will be performed by the RAILROAD at no cost to the
CITY. CITY will notify RAILROAD approximately sixty (60) days prior
to the anticipated completion date of the New Facilities. Since the salvage
operations cannot take place until after the Conveyance Date, the
RAILROAD will cooperate with the CITY and STATE to schedule the
salvage operations so as not to unreasonably interfere with the
construction of the East-West Freeway, and barring unforeseen
circumstances, shall cause the salvage operation to be completed within 90
days from the Conveyance Date. IN the event the Railroad assigns other
rights set out in the Relocation Agreement and/or this Amendment, the
Salvage Rights will remain the sole and exclusive right of the West Texas
and Lubbock Railroad Company, Inc."
11. Article 10, subsection c, is deleted and replaced by the following section:
%. The agreement by and between the CITY and the STATE dated
February 12, 1991, relating to the respective responsibilities of each of
them for the relocation of the RAILROAD in furtherance of construction
of the East-West Freeway is in full force and effect, as amended by the
Modification Agreement dated June 5, 1991, the Second Modification
Agreement dated May 30, 1997. True copies of each Modification
Agreement are attached hereto as Exhibits C and D. The CITY further
represents and warrants that neither it nor the STATE is in default of the
aforesaid agreements at this time, and in the event of any default by either
party thereunder, the CITY shall notify the RAILROAD, in writing,
promptly upon the occurrence of such default."
IT IS FURTHER AGREED by and between the parties hereto that the Agreement
referenced herein, except as modified by this Agreement, shall remain in all respects as
originally written and shall continue to be effective as of the dates of the respective
Agreements.
Amendment to Agreement for Railroad Relocation
Page 6
IN TESTIMONY WHEREOF, the Railroad and the City have executed duplicate
counterparts of this agreement on the dates indicated.
CITY OF LUBBOCK WEST TEXAS & LUBBOCK RAILROAD
COMPANY, INC.
By: By: !
Date: r_Fyc ' 1 m e APB 7L%ate:---](a
ATTEST:
AAjd. I j eAAf
J, 6 // k - - V-A
kaythA Darnell, City Secr ry
APP OVE TO CONTENT:
/*L--:� —
Richard Burdine, Assistant City Manager
APPROVED AS TO FORM:
Linda Chamales, Supervising Attorney
APPROVED AS TO CONTENT
EXECUTIO COMMENDED:
7
Carl R tley, P.E. District Engiv6er
State of Texas
Department of Tr sportation
Date: Off'%
LC: 11929 — RR -Amendment
Amendment to Agreement for Railroad Relocation
Page 7