Loading...
HomeMy WebLinkAbout#16 - UP Railroad At-Grade Crossing Agreement STAFF REPORT DATE: November 19, 2024 CONSENT AGENDA ITEM: Approve Union Pacific Railroad Public Highway At-Grade Crossing Agreement for the Village Parkway UPRR Crossing Improvements. SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Sarah Sonsalla, City Attorney Clarissa Hadler, Finance Director Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve the Union Pacific Railroad Public Highway At-Grade Crossing Agreement for the Village Parkway UPRR Crossing Improvements? BACKGROUND: The City of Lake Elmo is seeking to permit, design and construct a new at-grade railroad crossing over the Union Pacific Railroad to complete the connection for Village Parkway from 30th Street North to CSAH 14. Village Parkway has been planned and designed as part of the Old Village planning efforts to serve as a neighborhood collector roadway for the new development along the east side of the Old Village and to provide vehicle and pedestrian connectivity to the Village center. Design standards were developed and approved by the City council in January 2014 and developers were required to incorporate segments of the roadway into varies phases of their subdivision. As part of the developer discussions the at-grade railroad crossing itself would be completed as a City improvement project and developers agreed to provide financial contributions to the crossing on a per REC basis. These contributions have been addressed through the applicable development agreements. In 2019, the City Council authorized design phase services to be completed by SEH, Inc. to initiate the public at-grade railroad crossing improvements. The project plans and UPRR permits are substantially completed and the City has been waiting to schedule project bids and construction until all UPRR Project Agreements have been received and approved by the City. PROPOSAL DETAILS/ANALYSIS: Attached to this agenda report is the Union Pacific Railroad Public Highway At-Grade Crossing Agreement in its final form. The agreement must be approved and signed by the City before UPRR will order materials and schedule construction crews for their portion of improvements to be completed by the railroad crews and contractors. The Agreement has been reviewed by the City Attorney. Major provisions of the Agreement are as follows: 1. The City must pay a one-time fee of $41,924 for easement rights for the City to construct, maintain and repair the Roadway over and across the Crossing Area. 2. The City is responsible for all Project Costs for the roadway and trunk watermain improvements outlined in the plans and specifications prepared by SEH, Inc. 3. The Railroad must perform all track crossing and signal arm installation work at City cost. The City must pay all associated invoices within 30 days of receipt. Estimated Project Costs to be performed by Railroad is $534,293, including $334,245 for the Crossing Signal work, and $200,048 for the Track Surface Improvements. 4. The City must retain Railroad approved contractors and pay all costs associated with Flaggers and track monitoring during all construction activities. 5. The Agreement includes provisions addressing requirements for City contractors involved in any portion the project construction, including minimum requirements for insurance, contractor’s right- of-entry agreement, and UPRR notification and coordination. 6. The City must pay an annual perpetual maintenance fee to the Union Pacific Railroad in the amount of $11,408 for the At-Grade Crossing Signal System. 7. The City must pay an annual perpetual maintenance fee to the Union Pacific Railroad in the amount of $3,322 for the surface maintenance between track tie ends. FISCAL IMPACT: The Total Estimated Project Cost is $1,418,000, including $1,065,200 for the At- Grade Roadway Crossing and $352,800 for the Trunk Watermain Crossing. The City would also be required to pay annual maintenance fees to the Union Pacific Railroad in the amount of $14,730. The Finance Director will determine funding sources for the project at a later date. Street projects are paid for with levy- funded debt or cash. Water projects are paid for with enterprise-funded debt or cash. A portion of the improvements would be offset by “Railroad Crossing Improvement” fees collected from adjacent developments. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent agenda, the Union Pacific Railroad Public Highway At-Grade Crossing Agreement, Project No. 0787250, for the Village Parkway UPRR Crossing Improvements. If removed from the consent agenda, the recommended motion for this action is as follows: “Move to approve the Union Pacific Railroad Public Highway At-Grade Crossing Agreement, Project No. 0787250, for the Village Parkway UPRR Crossing Improvements.” ATTACHMENTS: 1. Total Estimated Project Cost dated November 2024. 2. Union Pacific Railroad Public Highway At-Grade Crossing Agreement (Project No. 0787250) and Exhibit A (Crossing Location Map). 3. Not Attached but available upon request. a. Exhibit A-1 City Construction Plans, Sheets 1-20, as prepared by SEH, Inc. b. Exhibit B. UPRR Standard Agreement Conditions and Covenants. c. Exhibit C. UPRR Force Account Estimate for Crossing Signal (Estimate is $334,245) and Track Surface Improvements (Estimate is $200,048). d. Exhibit D. Contractor’s Right-of-Entry Agreement. e. Exhibit E. Signal Design Schematic. f. Exhibit F. Annual Signal Maintenance Cost Estimate (Estimate is $11,408). VILLAGE PARKWAY UPRR CROSSING IMPROVEMENTS PROJECT NO. 2019.122 CITY OF LAKE ELMO, MINNESOTA DATE: NOVEMBER 2024 ENGINEER'S OPINION OF PROBABLE COST VILLAGE  PARKWAY TRUNK  WATERMAIN TOTAL PROJECT Estimated TOTAL Construction Cost $335,000 $220,000 $555,000 Contingencies at 10% $33,000 $22,500 $55,500 Easement Acquisition (UPRR Easement) $25,200 $16,800 $42,000 Engineering Services: Preliminary and Final Design $70,000 $45,000 $115,000 Engineering Services: Construction Administration: $21,000 $14,000 $35,000 Construction Observation: $15,000 $10,000 $25,000 Geotechnical Engineering: $6,000 $4,000 $10,000 Legal, Fiscal and Administration: $10,000 $7,000 $17,000 Estimated UPRR Signal Improvements $335,000 $335,000 Estimated UPRR Surface Crossing Improvements $200,000 $200,000 Estimated UPRR Track Monitoring Costs (Est. Pending) $15,000 $10,000 $25,000 UPRR Pipeline Crossing Permits and License Fees $3,500 $3,500 Total Estimated Project Cost: $1,065,200 $352,800 $1,418,000 Annual UPRR Signal Maintenance Cost (at $278.25 per Unit: 41 Units) $11,408 Annual UPRR Surface Maintenance Cost $3,322 ENGINEER'S ESTIMATECITY OF LAKE ELMOCITY PROJECT NO. 2019.122SEH PROJECT NO. LAKMO 152477ITEM NO. ITEM UNIT UNIT PRICEESTIMATED QUANTITYESTIMATED COST2021.501 MOBILIZATIONLS $50,000.00 1 $50,000.002101.505 CLEARINGACRE $10,000.00 3.0 $30,000.002101.505 GRUBBINGACRE $15,000.00 0.4 $6,000.002104.502 REMOVE CONCRETE MEDIAN NOSE EACH $500.00 2 $1,000.002104.501 SALVAGE 12"X6" REDUCER, 6" GV & BOX, & HYDRANT ASSEMBLYLS $5,000.00 1 $5,000.002104.502 SALVAGE TYPE III BARRICADE EACH $100.00 4 $400.002104.502 SALVAGE & INSTALL SIGN TYPE C EACH $250.00 4 $1,000.002104.503 SAWING BITUMINOUS PAVEMENT (FULL DEPTH)LF $5.00 48 $240.002104.503 REMOVE CURB & GUTTERLF $10.00 270 $2,700.002104.503 REMOVE FENCE LF $10.00 50 $500.002104.504 REMOVE BITUMINOUS PAVEMENT SY$6.00 342 $2,052.002104.518 REMOVE CONCRETE WALKSF $4.00 640 $2,560.002105.607 COMMON EXCAVATION (EV)CY$30.00 533 $15,990.002105.609 SELECT GRANULAR BORROW - MOD 5% TON $25.00 4000 $100,000.002123.610 STREET SWEEPER (WITH PICKUP BROOM)HOUR $160.00 15 $2,400.002211.509AGGREGATE BASE CLASS 6TON $40.00 682 $27,280.002357.506 BITUMINOUS MATERIAL FOR TACK COAT GAL $5.00 60 $300.002360.509 TYPE SP 9.5 WEARING COURSE MIX (2,B)TON $180.00 35 $6,300.002360.509 TYPE SP 9.5 WEARING COURSE MIX (3,C)TON $120.00 100 $12,000.002360.509 TYPE SP 12.5 WEARING COURSE MIX (3,C)TON $120.00 100 $12,000.002504.601 INSTALL 12"X6" REDUCER, 6" GV & BOX, & HYDRANT ASSEMBLYLS $8,000.00 1 $8,000.002504.602 CONNECT TO EXISTING WATER MAIN EACH $2,500.00 1 $2,500.002504.602 12" GATE VALVE & BOXEACH $7,500.00 1 $7,500.002504.603 12" WATER-MAIN DUCTILE IRON CL 52 LF $120.00 25 $3,000.002504.603 36" STEEL CASING PIPE (JACKED) (INCLUDES 12" DIP WM, CL 52)LF $1,200.00 120 $144,000.002504.608 DUCTILE IRON FITTINGSLB $12.00 593 $7,116.002521.518 5" CONCRETE WALKSF $8.00 1655 $13,240.002521.518 6" CONCRETE WALKSF $12.00 353 $4,236.002531.503 CONCRETE CURB & GUTTER DESIGN B618 (TIP-OUT)LF $25.00 365 $9,125.002531.503 CONCRETE CURB & GUTTER DESIGN B624 LF $30.00 390 $11,700.002531.504 6" CONCRETE DRIVEWAY PAVEMENT SY$80.00 35 $2,800.002531.602 CONCRETE MEDIAN NOSE-SPECIAL EACH $1,000.00 3 $3,000.002531.618 TRUNCATED DOMESSF $100.00 56 $5,600.002563.601 TRAFFIC CONTROLLS $7,500.00 1 $7,500.002563.602 INSTALL TYPE III BARRICADEEACH $1,000.00 4 $4,000.002563.602 TEMPORARY TYPE III BARRICADE (TO BECOME PROPERTY OF CITY)EACH $1,000.00 6 $6,000.002564.502 OFF ROAD STRUCTURE MARKER EACH $500.00 1.00 $500.002564.518 SIGN PANEL TYPE CSF $70.00 52.22 $3,655.402573.502 STORM DRAIN INLET PROTECTION EACH $500.00 2 $1,000.002573.503 SILT FENCE, TYPE MSLF $4.00 1063 $4,252.002573.503 SEDIMENT CONTROL LOG TYPE WOOD FIBER LF $4.00 600 $2,400.002574.507 COMMON TOPSOIL BORROW (PULVERIZED) (LV)CY$40.00 200 $8,000.002575.504 ROLLED EROSION PREVENTION CATEGORY 25 SY$4.00 1950 $7,800.002575.505 SEEDING (INCLUDES SEED, HYDRAULIC SOIL STABALIZER & FERTILIZER, TYPE 4)ACRE $2,000.00 2.5 $5,000.002582.503 12" SOLID LINE MULTI COMPLF $12.00 16 $192.002582.503 24" SOLID LINE MULTI COMPLF $15.00 68 $1,020.002582.518 PAVT MSSG PREF THERMO GR IN SF $20.00 76 $1,520.002582.518 CROSSWALK PREF THERMO GR IN SF $15.00 168 $2,520.00SUBTOTAL ESTIMATED CONSTRUCTION COST = $554,898.4010% CONTINGENCY = $55,500.00TOTAL ESTIMATED CONSTRUCTION COST = $610,398.40VILLAGE PARKWAY UPRR CROSSING IMPROVEMENTS6/17/2024  12:10 PM 1 of 1 C:\Users\Jack\Desktop\UPRR\Village Parkway Engineer's Estimate to City_06‐07‐2024.xlsx 1 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 UP Real Estate Project No: 0787250 PUBLIC HIGHWAY AT-GRADE CROSSING AGREEMENT Village Parkway North DOT# 980280H MP 12.28 – Altoona Subdivision Lake Elmo, Washington County, State of Minnesota THIS AGREEMENT ("Agreement") is made and entered into as of ______________ ("Effective Date"), by and between UNION PACIFIC RAILROAD COMPANY, a Delaware corporation, to be addressed at Real Estate Department, 1400 Douglas Street, Mail Stop 1690, Omaha, Nebraska 68179 (”Railroad") and LAKE ELMO, a municipal corporation or political subdivision of the State of Minnesota to be addressed at 3880 Laverne Ave N, Lake Elmo, Minnesota, 55042 ("Political Body"). RECITALS: The Political Body desires to undertake as its project (the “Project”) the construction of a new at grade public road crossing over Village Parkway North at Railroad’s MP 12.28 on Railroad’s Altoona Subdivision at or near Lake Elmo, Washington County, State of Minnesota (the “Crossing Area”). The Crossing Area is shown on the print marked Exhibit A and described in the legal description marked Exhibit A-1 with each exhibit being attached hereto and hereby made a part hereof. The portion of the roadway located within the Crossing Area is the "Roadway". The Railroad and the Political Body are entering into this Agreement to cover the above. AGREEMENT: NOW, THEREFORE, it is mutually agreed by and between the parties hereto as follows: Section 1. EXHIBIT B The general terms and conditions marked Exhibit B, are attached hereto and hereby made a part hereof. 2 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 Section 2. RAILROAD GRANTS RIGHT For and in consideration FORTY ONE THOUSAND NINE HUNDRED TWENTY FOUR DOLLARS ($41,924.00) to be paid by the Political Body to the Railroad upon the execution and delivery of this Agreement and in further consideration of the Political Body’s agreement to perform and comply with the terms of this Agreement, the Railroad hereby grants to the Political Body the right to construct, maintain and repair the Roadway over and across the Crossing Area. Section 3. DEFINITION OF CONTRACTOR For purposes of this Agreement the term “Contractor” shall mean the contractor or contractors hired by the Political Body to perform any Project work on any portion of the Railroad’s property and shall also include the Contractor’s subcontractors and the Contractor’s and subcontractor’s respective employees, officers and agents, and others acting under its or their authority. Section 4. CONTRACTOR'S RIGHT OF ENTRY AGREEMENT - INSURANCE A.Prior to Contractor performing any work within the Crossing Area and any subsequent maintenance and repair work, the Political Body shall require the Contractor to: •execute the Railroad's then current Contractor's Right of Entry Agreement •obtain the then current insurance required in the Contractor’s Right of Entry Agreement; and •provide such insurance policies, certificates, binders and/or endorsements to the Railroad. B.The Railroad's current Contractor's Right of Entry Agreement is marked Exhibit D, attached hereto and hereby made a part hereof. The Political Body confirms that it will inform its Contractor that it is required to execute such form of agreement and obtain the required insurance before commencing any work on any Railroad property. Under no circumstances will the Contractor be allowed on the Railroad's property without first executing the Railroad's Contractor's Right of Entry Agreement and obtaining the insurance set forth therein and also providing to the Railroad the insurance policies, binders, certificates and/or endorsements described therein. C.All insurance correspondence, binders, policies, certificates and/or endorsements shall be sent to: Manager - Contracts Union Pacific Railroad Company Real Estate Department 1400 Douglas Street, Mail Stop 1690 Omaha, NE 68179-1690 3 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 UP File Folder No. 0787250 D. If the Political Body's own employees will be performing any of the Project work, the Political Body may self-insure all or a portion of the insurance coverage subject to the Railroad's prior review and approval. Section 5. FEDERAL AID POLICY GUIDE If the Political Body will be receiving any federal funding for the Project, the current rules, regulations and provisions of the Federal Aid Policy Guide as contained in 23 CFR 140, Subpart I and 23 CFR 646, Subparts A and B are incorporated into this Agreement by reference. Section 6. NO PROJECT EXPENSES TO BE BORNE BY RAILROAD The Political Body agrees that no Project costs and expenses are to be borne by the Railroad. In addition, the Railroad is not required to contribute any funding for the Project. Section 7. WORK TO BE PERFORMED BY RAILROAD; BILLING SENT TO POLITICAL BODY; POLITICAL BODY'S PAYMENT OF BILLS A. The work to be performed by the Railroad, at the Political Body's sole cost and expense, is described in the Railroad's Material and Force Account Estimate for Surface dated October 13, 2023, and Railroad’s Material and Force Account Estimate for Signal dated March 20, 2024 marked Exhibit C, attached hereto and hereby made a part hereof (the "Estimate"). As set forth in the Estimate, the Railroad's estimated cost for the Railroad's work associated with the Project is Five Hundred Thirty Four Thousand Two Hundred and Ninety-Eight Dollars ($534,293.00). B. The Railroad, if it so elects, may recalculate and update the Estimate submitted to the Political Body in the event the Political Body does not commence construction on the portion of the Project located on the Railroad’s property within six (6) months from the date of the Estimate. C. The Political Body acknowledges that the Estimate does not include any estimate of flagging or other protective service costs that are to be paid by the Political Body or the Contractor in connection with flagging or other protective services provided by the Railroad in connection with the Project. All of such costs incurred by the Railroad are to be paid by the Political Body or the Contractor as determined by the Railroad and the Political Body. If it is determined that the Railroad will be billing the Contractor directly for such costs, the Political Body agrees that it will pay the Railroad for any flagging costs that have not been paid by any Contractor within thirty (30) days of the Contractor's receipt of billing. D. The Railroad shall send progressive billing to the Political Body during the 4 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 Project and final billing to the Political Body within three hundred sixty-five (365) days after receiving written notice from the Political Body that all Project work affecting the Railroad's property has been completed and the Project Manager has closed the Project work order and notified the Political Body. E. The Political Body agrees to reimburse the Railroad within thirty (30) days of its receipt of billing from the Railroad for one hundred percent (100%) of all actual costs incurred by the Railroad in connection with the Project including, but not limited to, all actual costs of engineering review (including preliminary engineering review costs incurred by Railroad prior to the Effective Date of this Agreement), construction, inspection, flagging (unless flagging costs are to be billed directly to the Contractor), procurement of materials, equipment rental, manpower and deliveries to the job site and all direct and indirect overhead labor/construction costs including Railroad's standard additive rates. Section 8. PLANS A. The Political Body, at its expense, shall prepare, or cause to be prepared by others, the detailed plans and specifications for the Project and the Structure and submit such plans and specifications to the Railroad’s Assistant Vice President Engineering-Design, or his authorized representative, for prior review and approval. The plans and specifications shall include all Roadway layout specifications, cross sections and elevations, associated drainage, and other appurtenances. B. The final one hundred percent (100%) completed plans that are approved in writing by the Railroad’s Assistant Vice President Engineering-Design, or his authorized representative, are hereinafter referred to as the “Plans”. The Plans are hereby made a part of this Agreement by reference. C. No changes in the Plans shall be made unless the Railroad has consented to such changes in writing. D. The Railroad's review and approval of the Plans will in no way relieve the Political Body or the Contractor from their responsibilities, obligations and/or liabilities under this Agreement, and will be given with the understanding that the Railroad makes no representations or warranty as to the validity, accuracy, legal compliance or completeness of the Plans and that any reliance by the Political Body or Contractor on the Plans is at the risk of the Political Body and Contractor. Section 9. NON-RAILROAD IMPROVEMENTS A. Submittal of plans and specifications for protecting, encasing, reinforcing, relocation, replacing, removing and abandoning in place all non-railroad owned facilities (the "Non Railroad Facilities") affected by the Project including, without limitation, utilities, fiber optics, pipelines, wirelines, communication lines and fences is required under Section 8. The Non Railroad Facilities plans and specifications shall comply with 5 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 Railroad's standard specifications and requirements, including, without limitation, American Railway Engineering and Maintenance-of-Way Association ("AREMA") standards and guidelines. Railroad has no obligation to supply additional land for any Non Railroad Facilities and does not waive its right to assert preemption defenses, challenge the right-to-take, or pursue compensation in any condemnation action, regardless if the submitted Non Railroad Facilities plans and specifications comply with Railroad's standard specifications and requirements. Railroad has no obligation to permit any Non Railroad Facilities to be abandoned in place or relocated on Railroad's property. B. Upon Railroad's approval of submitted Non Railroad Facilities plans and specifications, Railroad will attempt to incorporate them into new agreements or supplements of existing agreements with Non Railroad Facilities owners or operators. Railroad may use its standard terms and conditions, including, without limitation, its standard license fee and administrative charges when requiring supplements or new agreements for Non Railroad Facilities. Non Railroad Facilities work shall not commence before a supplement or new agreement has been fully executed by Railroad and the Non Railroad Facilities owner or operator, or before Railroad and Political Body mutually agree in writing to (i) deem the approved Non Railroad Facilities plans and specifications to be Plans pursuant to Section 8B, (ii) deem the Non Railroad Facilities part of the Structure, and (iii) supplement this Agreement with terms and conditions covering the Non Railroad Facilities. Section 10. EFFECTIVE DATE; TERM; TERMINATION A. This Agreement is effective as of the Effective Date first herein written and shall continue in full force and effect for as long as the Roadway remains on the Railroad’s property. B. The Railroad, if it so elects, may terminate this Agreement effective upon delivery of written notice to the Political Body in the event the Political Body does not commence construction on the portion of the Project located on the Railroad’s property within twelve (12) months from the Effective Date. C. If the Agreement is terminated as provided above, or for any other reason, the Political Body shall pay to the Railroad all actual costs incurred by the Railroad in connection with the Project up to the date of termination, including, without limitation, all actual costs incurred by the Railroad in connection with reviewing any preliminary or final Project Plans. Section 11. CONDITIONS TO BE MET BEFORE POLITICAL BODY CAN COMMENCE WORK Neither the Political Body nor the Contractor may commence any work within the Crossing Area or on any other Railroad property until: (i) The Railroad and Political Body have executed this Agreement. 6 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 (ii) The Railroad has provided to the Political Body the Railroad’s written approval of the Plans. (iii) Each Contractor has executed Railroad’s Contractor’s Right of Entry Agreement and has obtained and/or provided to the Railroad the insurance policies, certificates, binders, and/or endorsements required under the Contractor’s Right of Entry Agreement. (iv) Each Contractor has given the advance notice(s) required under the Contractor's Right of Entry Agreement to the Railroad Representative named in the Contactor's Right of Entry Agreement. Section 12. FUTURE PROJECTS Future projects involving substantial maintenance, repair, reconstruction, renewal and/or demolition of the Roadway shall not commence until Railroad and Political Body agree on the plans for such future projects, cost allocations, right of entry terms and conditions and temporary construction rights, terms and conditions. Section 13. ASSIGNMENT; SUCCESSORS AND ASSIGNS A. Political Body shall not assign this Agreement without the prior written consent of Railroad. B. Subject to the provisions of Paragraph A above, this Agreement shall inure to the benefit of and be binding upon the successors and assigns of Railroad and Political Body. Section 14. SPECIAL PROVISIONS PERTAINING TO AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 If the Political Body will be receiving American Recovery and Reinvestment Act ("ARRA") funding for the Project, the Political Body agrees that it is responsible in performing and completing all ARRA reporting documents for the Project. The Political Body confirms and acknowledges that Section 1512 of the ARRA provisions applies only to a "recipient" receiving ARRA funding directing from the federal government and, therefore, (i) the ARRA reporting requirements are the responsibility of the Political Body and not of the Railroad, and (ii) the Political Body shall not delegate any ARRA reporting responsibilities to the Railroad. The Political Body also confirms and acknowledges that (i) the Railroad shall provide to the Political Body the Railroad's standard and customary billing for expenses incurred by the Railroad for the Project including the Railroad's standard and customary documentation to support such billing, and (ii) such standard and customary billing and documentation from the Railroad provides the information needed by the Political Body to perform and complete the ARRA reporting documents. The Railroad confirms that the Political Body and the Federal Highway Administration shall 7 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 have the right to audit the Railroad's billing and documentation for the Project as provided in Section 11 of Exhibit B of this Agreement. Section 15. ANNUAL SIGNAL MAINTENANCE FEE A. Effective as of three years from effective date of this Agreement or the date of installation and/or the in-service date of the new and/or improved or existing Grade Crossing Signal System(s) ("Signal System”), the Political Body, in addition to maintaining at its sole cost and expense the portion of the Roadway described in Section 2 of Exhibit B, agrees to pay to Railroad the sum of Eleven Thousand Four Hundred Eight Dollars ($11,408.00) per annum, payable annually in advance, as payment for Railroad's maintenance of the Signal System that is installed at the Roadway. The annual signal maintenance fee is calculated as shown on the attached Exhibit F, attached hereto and made a part hereof. B. The above annual signal maintenance fee for Railroad's maintenance of the Signal System is based on the number of current signal units installed at the Roadway. If the Signal System is improved and/or altered in any way, the Political Body must notify the Railroad in writing and the annual signal maintenance fee will be increased at a rate based on the American Railway Engineering and Maintenance of Way Association (AREMA) signal unit cost index. If the Political Body fails to notify Railroad of any improvement or alteration to the Signal System, the Railroad may increase the annual signal maintenance fee at a rate based on the AREMA signal unit cost index any time after the date of installation and/or improvement of the Signal System. The signal unit base for the annual signal maintenance fee may also be re-determined by the Railroad at any time subsequent to the expiration of five (5) years following the date on which the annual signal maintenance fee was last determined or established. Any such changes in the annual signal maintenance fee referenced in Article 2 may be made by means of automatic adjustment in billing. Section 16. ANNUAL SURFACE MAINTENANCE A. The Railroad shall maintain the crossing surface between the track tie ends at Political Body’s expense. Effective as of three years from effective date of this Agreement, Political Body agrees to pay to Railroad the sum of Three Thousand Three Hundred and Twenty Two Dollars ($3,322.00) per annum, payable annually in advance, as payment for Railroad's maintenance of the surface between track tie ends located within the Crossing Area. See Exhibit C. The Political Body, at its expense, shall maintain and repair all portions of the Roadway approaches that are not within the area between lines two (2) feet outside of the rails of each track. See lower right hand corner of Exhibit C. 8 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 B. The above annual surface maintenance fee may also be re-determined by the Railroad at any time subsequent to the expiration of five (5) years following the date on which the annual surface maintenance fee was last determined or established. Any such changes in the annual surface maintenance fee may be made by means of automatic adjustment in billing. 9 Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the Effective Date first herein written. UNION PACIFIC RAILROAD COMPANY (Federal Tax ID #94-6001323) By: _________________________________ Printed Name: ________________________ Title: ________________________________ LAKE ELMO By: ________________________________ Printed Name: ________________________ Title: ________________________________ 1 EXHIBIT A Public Highway At-Grade Crossing Agreement DOT DOT# 980280H, Project 0787250 EXHIBIT A TO PUBLIC HIGHWAY AT-GRADE CROSSING AGREEMENT Exhibit A will be a print showing the Crossing Area (see Recitals)