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HomeMy WebLinkAbout02/24/2009 Special Council Meeting Agenda PacketSPECIAL COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, February 24, 2009, at or after 7:00 PM Ed Honea, Mayor Herb Kai, Vice Mayor Russell Clanagan, Council Member Patti Comerford, Council. Member Carol McGorray, Council Member Jon Post, Council Member Roxanne Ziegler, Council Member ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics. As a courtesy to others,~lease turn off or put in silent mode all pagers and cell phones. Meeting Times Welcome to this Marana Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 7:00 p.m. at the Marana Town Hall, although the date or time may change, or Special Meetings may be called at other times and/or places. Contact Town Hall or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings If you are interested in speaking to the Council during Call to the Public, Public Hearings, or other agenda items, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council Rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, the Council Chambers are wheelchair and handicapped accessible. Any person who, by reason of any disability, is in need of special services as a result of their disability, such as assistive listening devices, agenda materials printed in Braille or large print, a signer for the hearing impaired, etc., will be accommodated. Such special services are available upon prior request to the Town Clerk at least 10 working days prior to the Council meeting. Special Council Meeting -February 24, 2009 -Page 1 of 30 Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at www.m;arana.com, by linking to the Town Clerk page under Agendas, Minutes and Ordinances. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at 382- 1999, Monday through Friday from 8:00 a.m. to 5:00 p.m. Posted no later than Monday, February 23, 2009, 7:00 PM, at the Marana Municipal Complex, the Marana Operations Center and at www n~aranacom under Town Clerk, Agendas, Minutes and Ordinances. REGULAR MEETING CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue not already on tonight's agenda. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the council may respond to criticism made by those who have addressed the Council, may ask staff to review the matter, or may ask that the matter be placed on a future agenda. PRESENTATIONS P 1: Presentation: Relating to Engineering; Presentation on status of Tres Rios del Norte and authorizing staff to continue coordination with the United States Army .Corps of Engineering, the City of Tucson, and Pima County Regional Flood Control District on the Tres Rios del Norte ecosystem restoration study (Jennifer Christelman) P 2: Presentation: Relating to Economic Development; Presentation on the proposed process and community involvement for the Marana Economic Roadmap strategic plan (Gilbert Davidson) ANNOUNCEMENTS/UPDATES PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER' S REPORT: SUMMARY OF CURRENT EVENTS TOWN REPORTS GENERAL ORDER OF BUSINESS CONSENT AGENDA Special Council Meeting -February 24, 2009 -Page 2 of 30 The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion will approve all items,. on the Consent agenda, including any resolutions or ordinances. A Council Member may remove any issue from the Consent agenda, and that issue will be discussed and voted upon separately, immediately following the Consent agenda. COUNCIL ACTION A 1: PUBLIC HEARING: Ordinance No. 2009.03: Relating to Utilities; amending section 14-7-1 of the Town Code by revising the water base fees and consumption rates; and providing for an effective date (Barbara Johnson) A 2: Resolution No. 2009-23: Relating to Transportation; approving and authorizing the Mayor to execute an agreement with Union Pacific Railroad Company concerning double- tracking through the Town (Keith Brann) BOARDS, COMMISSIONS AND COMMITTEES ITEMS FOR DISCUSSION/POSSIBLE ACTION EXECUTIVE SESSIONS E 1: Executive Session pursuant to A.R.S. §38-431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. E 2: Executive Session pursuant to A.R.S. § 38-431.03(A)(3),(4) and (7), discussion or consultation for legal advice with the Town's attorneys and discussion and to consider its position and instruct the Town Manager and staff concerning possible acquisition of certain water infrastructure and accounts and water rights and/or resources E 3: Executive Session pursuant to A.R.S. § 38-431.03(A)(3),(4) and (7), discussion or consultation for legal advice with the Town's attorneys and discussion and to consider its position and instruct the Town Manager and staff concerning (1) the lawsuit entitled Town of Marana v. Pima County/Pima County v. Marana (consolidated), Maricopa County Superior Court No. CV2008-001131, (2) pending legal issues, settlement discussions and contract negotiations relating to the transition of Marana wastewater collection and treatment to the Town of Marana FUTURE AGENDA ITEMS Notwithstanding the mayor's discretion of what items to place on the agenda, if three or more council members request an item to be placed on the agenda, it must be placed upon the agenda for the second regular town council meeting after the date of the request (Marana Town Code, Title 2, Chapter 2-4, Section 2-4-2 B) ADJOURNMENT Special Council Meeting -February 24, 2009 -Page 3 of 30 ,~"~ r•~'~~~ - i ~ 1~~~ rnw a w.ura 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 24, 2009, 7:00:00 PM To: Mayor and Council From: Jennifer Christelman ,Environmental Engineering Division Manager Item P 1 Subject: Presentation: Relating to Engineering; Presentation on status of Tres Rios del Norte and authorizing staff to continue coordination with the United States Army Corps of Engineering, the City of Tucson, and Pima County Regional Flood Control District on the Tres Rios del Norte ecosystem restoration study Discussion: Staff will be giving a presentation on the status of the Tres Rios del Norte project, proposed alternatives, and the Corps of Engineers recommended plan. Tres Rios. del Norte feasibility study is amulti-purpose concept designed to enhance an 18-mile stretch of the Santa Cruz River Channel extending from Roger Road to Sanders Road. Project goals for the Tres Rios Feasibility Study include flood control, groundwater recharge, restoration of riparian habitat, and enhancement of recreational and cultural resources. This project is a cooperative effort between the Town of Marana, City of Tucson, and Pima County Flood Control District (local sponsors). The Town of Marana's participation as a local sponsor for this study will have significant impact on their ability to manage the Santa Cruz River study area. Being a sponsor of this study allows the Town of Marana to be eligible for future funding as well as allows the Town full access to reports developed by this study. Council approved resolution 2001-109 authorized the Town to be a participating sponsor of the Tres Rio del Norte Feasibility Study in cooperation with the Army Corps of Engineers and other local sponsors. Due to project delays including funding issues, this study has been delayed several times. The Corps of Engineers has presented alternatives to the local sponsors and has recommended an alternative that includes low water use and a high level of effort (C-High). Completing the study does not commit the Town to completing engineering design or starting construction projects. Financial Impact: No financial impact to the Town to finish the-study beyond staff time. ATTACHMENTS: Natne: Description.: Type: D Presentation to Council - 022409.ppt Presentation Presentation ^ Supple.mental Handout- alternatives.doc Handout Backup Material Staff Recommendation: Special Council Meeting -February 24, 2009 -Page 4 of 30 It is recommended that the Mayor and Council authorize staff to continue participating as a sponsor of the Tres Rios del Norte Feasibility Study in cooperation with the Army Corps of Engineers and other local sponsors to completed the study with the recommended C-High Plan. Suggested Motion: I move that Mayor and Council authorize staff to continue participating as a sponsor of the Tres Rios del Norte Feasibility Study in cooperation with the Army Corps of Engineers and other local sponsors to complete the study with C-High as the recommended plan. Special Council Meeting -February 24, 2009 -Page 5 of 30 ~iz J r t3 O L V W O O CV -~ CU Ct3 ~--~ 'o ~. .o ~U CQ tL~ -~--r U ~--+ -_ .~ y- CU N c~ 0 U U a U ~_ ~ ~ ~ ~ ~~ ~ ~ ^L W ~_ N ~ ~ O ~ ~ U~ ~a ~ ~~ c~ ~ ~ ~ a~ ~ .~ O ~- ~ O ~ ,~ o .~ ~! ~ 4) to ~ ._ Q) L __ ~ 00 0 ~~ _~ C6 O -~ 0 0 a O v w 0 U N a~ R5 O 0 O Ct'S N 0 0 0 0 N N [6 7 N LL -F-~ U -~ 0 M O N a rn 0 0 N N f9 7 a m cu N C O N 0 0 CV ~ N ~ d ~' ~' ~ s- ~ O ~ o ~ Q ~ 4~ ~ ~ ~ ~ ~ Ca ~ ~ j ~' Q ~ ~ ~ a ~ -~ z ~ 0 ~ ~ ~ ~ -~ ~ o ~ ~ U ~ ~ ~ . • ~ •~ c~- ~ ~ o ~ ~ .~ .~ ~ ~ ~ .~ ~ o ~ ~ ~ ~ ~ ~ ~ U ~ ~ ~ 4) - ~ ~ ~ _ S~ C6 ~ ~ ~ _ ~ ~ ~ ~ ~= ~ CU ~ '`'' a ~ ~ ~i ~ ~ V 0 0 N V N f0 7 N LL cu c a~ .~. 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U ~ ~ ~ °~ o a ~ U ~ ~ ~ O ~ y- ~ ~= to O •s= ~ ~ ~ ~ o a o ~ ~ ~ O ~ CU . ~ - _ Ct3 ~ ~ _ ^U U a ~ ° o ~ ~ ~ C3 .~' ° ~ a~ ^ ((LLa T 0 M O r N 01 ld d 0 0 N N R 3 UI C O N C'1 0 M O _~ d m a rn 0 0 N V N f6 7 a Tres Rios del Norte Plan Alternative Legend Plan Abbreviation Explanation Plan A Hi h PAH Hi h water use, Hi h level of effort Plan A Medium PAM Hi h water use, Medium level of effort Plan A Low PAL High water use, Low level of effort Plan B Hi h PBH Medium water use, Hi h level of effort Plan B Medium PBM Medium water use, Medium level of effort Plan B Low PBL Medium water use, Low level of effort Plan C Hi h PCH Low water use, Hi h level of effort Plan C Medium PCM Low water use, Medium level of effort Plan C Low PCL Low water use, Low level of effort Plan D PD Stormwater Onl Status Quo SQ Maintain Existin in-channel flow Level of effort varies based on the following elements: • Number of grade control structures • Plant sizes • Intensity of operation and maintenance • Water distribution systems • Stormwater harvesting • Site preparation Water use based on: • Plant establishment • Consumptive use Special Council Meeting -February 24, 2009 -Page 17 of 30 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 24, 2009, 7:00:00 PM To: Mayor and Council From: Gilbert Davidson ,Town Manager Item P 2 Subject: Presentation: Relating to Economic Development; Presentation on the proposed process and community involvement for the Marana Economic Roadmap strategic plan Discussion: Completion of the Marana Economic is the lead action step under the "Commerce" focus area of the recently adopted Town of Marana Strategic Plan. The Roadmap is a strategic planning process which builds on the "Commerce" focus area and involves community stakeholders from a variety of industries in helping to determine Marana's economic development future. Staff will present an update on the proposed process for the Marana Economic Roadmap, including projected timeframes, participants, goals, and objectives. ATTACHMENTS: Name: Description.: Type: No Attachments Available Staff Recommendation: Suggested Motion: Special Council Meeting -February 24, 2009 -Page 18 of 30 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 24, 2009, 7:00:00 PM To: Mayor and Council From: Barbara Johnson ,Public Services Manager Item A 1 Subject: PUBLIC HEARING: Ordinance No. 2009.03: Relating to Utilities; amending section 14- 7-1 of the Town Code by revising the water base fees and consumption rates; and providing for an effective date Discussion: This is a public hearing on the proposed overall 8% water base fee and consumption rate increase, which was presented at the January 20 Council meeting. This public hearing was set based on the notice of intention to increase water rates and fees adopted on January 20th and revised on February 3rd (the revision moved the public hearing date from February 20th to February 24th). Published notice has been provided as required by Arizona law (A.R.S. § 9-511.01), and courtesy notice has been provided to Marano Water customers. If adopted, the proposed ordinance would increase all water base fees and consumption rates as set forth in Town Code Section 14-7-1 by 8%, effective on March 27th. Financial Impact: Adoption of the proposed ordinance will help the Town's water utility to move toward operating as a true enterprise fund. ATTACHMENTS: Natne: ~ Water Rates Revision O...rd_ n o n ce._(0 0013..2.52 ~ D O C Staff Recommendation: Description.: Water rates revision ordinance Staff recommends adoption of Ordinance No. 2009.03. Type: Ordinance Commission Recommendation - if applicable: The Utilities Commission recommends adoption of an 8% base fee and consumption rate increase. Suggested Motion: I move to adopt Ordinance No. 2009.03. Special Council Meeting -February 24, 2009 -Page 19 of 30 MARANA ORDINANCE N0.2009.03 RELATING TO UTILITIES; AMENDING SECTION 14-7-1 OF THE TOWN CODE BY REVISING THE WATER BASE FEES AND CONSUMPTION RATES; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the revision of the water base fees and consumption rates is necessary for a self-sustaining water utility and is in the best interests of the Town of Marana. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, as follows: SECTION 1. The Town Code of the Town of Marana is hereby amended by revising Section 14-7-1 as follows (with additions shown by double underlining and deletions shown by st~il~gk): Section 14-7-1 Monthly charges A. Charges for water utility service shall be made at monthly intervals and shall, to the extent consistent with the express policy to charge for water in direct proportion to the cost of securing, developing and delivering water to the cus- tomers of the town water system, recover all capital, operational and mainte- nance costs associated with or attributable to providing water service through the town water system. Water charges will be computed through the summa- tion of a monthly base water service fee plus a monthly water use charge, plus any applicable state or local sales taxes. B. The monthly base water service fee shall be based upon the meter size, and shall be as follows: Meter Size Monthl Base Fee 5/» x 3/<<» meter $15.124:-88 1" meter fire* $~12~4:-88 1" meter $~~~4:-Ag 1'/" meter $39.9688 2" meter $46.444~A8 3" meter $62.64a~A8 4" meter $110.16~A~:S9 5" meter $164.16~A9 6" meter $218.1 ~8~88 Speci~~~y~~ ~ -February 24, 2009 -Page 20 of 30 _ 1 _ Meter Size Monthl Base Fee Stand i e $0.00 '`This rate shall be applied to single family resi- dences that could have been served by a 5/ x s/." meter but for fire suppression facilities that make the lar er meter necessa C. The monthly water use charge shall be: 1. $$,24~A8 per 1,000 gallons for standpipe/hydrant meters. 2. $2~. Sze per 1,000 gallons for meters serving multi-family, commercial, industrial, government and irrigation uses. 3. For meters serving single family residences, a tiered rate based on the amount of water consumed, as follows: Gallons of consum tion Rate per 1,000 allons 0 to 1,000 $0.00 1,0018 to 10,000 $2.325 10,0018 to 20,000 $243:-98 20,0018 to 30,000 $4.213:-88 30,0018 to 40,000 $~,1$4~8 Over 40,000 $.~4~6-98 SECTION 2. The Town's Manager and staff are hereby directed and authorized to under- take all other and further tasks required or beneficial to carry out the terms, obligations, and ob- jectives of this ordinance. SECTION 3. This ordinance shall be effective on March 27, 2009. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 24th day of February, 2009. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Speci~~j~rc~ ~ -February 24, 2009 -Page 21 of 30 _ 2 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 24, 2009, 7:00:00 PM To: Mayor and Council From: Keith Brann ,Town Engineer Item A 2 Subject: Resolution No. 2009-23: Relating to Transportation; approving. and authorizing the Mayor to execute an agreement with Union Pacific Railroad Company concerning double-tracking through the Town Discussion: Union Pacific Railroad (UPRR) is currently constructing a second main track between Yuma and Tucson, including the stretch through the Town of Marano. The Agreement presented for the Council's consideration by this item facilitates the double-tracking project and sets forth the parties' obligations for coordinating and cooperating with one another concerning both the double-tracking project and other future projects through Marana. The agreement also describes the extent of UPRR's financial obligations towards the construction of certain future grade-separated crossings in Marana, and obligates the Town to express its support of the double-tracking project in proceedings before the Arizona Corporation Commission. ATTACHMENTS: Name: ~ Reso_UPR_R_ _Double. Tracking Agreement (00012831),_DOC ~ AGT UPRR Double- _ - --- Tracking 2-1.9-09 DO.C. Staff Recommendation: Description; Reso approving UPRR Double-Tracking Agreement Exhibit A to Reso:UPRR Double-Tracking Agreement Staff recommends adoption of Resolution No. 2009-23. Suggested Motion: I move to adopt Resolution No. 2009-23. Type: Resolution Exhibit Special Council Meeting -February 24, 2009 -Page 22 of 30 MARANA RESOLUTION N0.2009-23 RELATING TO TRANSPORTATION; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH UNION PACIFIC RAILROAD COMPANY CONCERNING DOUBLE-TRACKING THROUGH THE TOWN WHEREAS Union Pacific Railroad Company seeks to construct a second main line railroad through Town of Marana; and WHEREAS the Town and Union Pacific Railroad Company have prepared an agreement to address issues related to the double-tracking project and other matters relating to coordination and cooperation between the Town and the Railroad; and WHEREAS the Mayor and Council of the Town of Marana find that the proposed agreement is in the best interests of the Town and public. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, as follows: SECTION 1. The Agreement between the Town of Marana and Union Pacific Railroad Company attached as Exhibit A to and incorporated by this reference in this resolution is hereby ap- proved, and the Mayor is hereby authorized to execute it for and on behalf of the Town of Marana. SECTION 2. The Town's Manager and staff are hereby directed and authorized to under- take all other and further tasks required or beneficial to carry out the terms, obligations, and objec- tives of this agreement. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 24~' day of February, 2009. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Special Council Meeting -February 24,.2009 -Page 23 of 30 AGREEMENT Between TOWN OF MARANA, ARIZONA And UNION PACIFIC RAILROAD COMPANY This AGREEMENT ("Agreement") is entered into this day of 2009, between TOWN OF MARANA, an Arizona municipal corporation, (hereinafter referred to as "Town") and the UNION PACIFIC RAILROAD COMPANY, a Delaware corporation operating a railroad in the State of Arizona (hereinafter referred to as "UPRR"). RECITALS A. UPRR currently is constructing a second main track on and along the Gila Subdivision (Yuma-Tucson) main line in Arizona wherever there is currently only a single main line track. UPRR's project requires construction of a second main track through and across existing public at-grade crossings within the municipal limits of Town. A list of seven (7) existing public at-grade crossings of UPRR's Gila Subdivision main line located within the Town is attached hereto as Exhibit A and incorporated herein by reference. B. UPRR and Town have met on several occasions to discuss UPRR's second main track construction project. UPRR has presented maps and other information to Town. Town understands the scope of the project as it may affect roadway at-grade crossings within its jurisdiction. Town has expressed concern about various matters related to UPRR's main line, including the second main track, as it passes through the Town. C. UPRR wishes to obtain Town's general support and cooperation with respect to construction of the second main track through Town, particularly with respect to the at-grade crossings listed on Exhibit A. Town wishes to have UPRR address certain Town concerns about UPRR's installation of its second main track and future grade separations over the main line. UPRR and Town desire to enter into this binding Agreement to address Town's concerns and to secure Town's cooperation with respect to the construction of second main track across the at-grade crossings listed on Exhibit A. AGREEMENT NOW, THEREFORE, the parties hereto make and enter into the following binding agreement: Special Council Meeting -February 24, 2009 -Page 24 of 30 UPRR OBLIGATIONS 1. Barnett Channel Project. UPRR shall cooperate with the Town's project to install the Barnett Channel, which is a planned waterway, which would cross under the UPRR main line at RR MP 963.4. The Town's plans for the Barnett Channel include construction. of a bridge for the existing UPRR main line track over the proposed Barnett Channel, and the Town shall pay the cost of installation. of such bridge. The plans for the Barnett Channel include a separate bridge structure for the second main track to be installed by UPRR, and UPRR shall pay the cost of installation of such bridge for the second main track. Provided, however, if the Town changes the plans for the Barnett Channel project in a manner which materially increases the size of the required bridges and the corresponding cost, then the Town shall pay the portion of the cost of such second bridge which reflects the increase over the projected cost based on the plans for the Barnett Channel project on the date hereof. If relocation of fiber optic lines on the UPRR right of way at this location is required as part of the installation of the UPRR second main track, then UPRR shall complete the relocation per existing UPRR agreements with third parties in a manner which will accommodate the plans for the Barnett Channel project. Provided, however, if relocation of the fiber optic lines on the UPRR right of way at this location is not required as part of the installation of UPRR's second main track, but is required as part of the installation of the Barnett Channel, then UPRR shall cooperate with the need for such relocation, but the cost of such relocation required for the Barnett Channel project shall be paid by the Town. 2. Crossing Permits. Subject to the terms of this Agreement, UPRR shall cooperate and reasonably expedite UPRR's review and consideration of utility right of way crossing applications, whether or not located in public rights of way, for private crossings located in the Town.. Provided, however, such applications must comply with UPRR's then-current utility right of way crossing requirements and standards. 3. Maintenance of Structures. UPRR shall cooperate with Town on necessary inspections and maintenance of the structures now existing or subsequently installed at the crossings listed on Exhibit A or otherwise contemplated herein, in accordance with UPRR's then-current Right of Entry Agreement form and any other agreements between the parties. 4. New Tangerine Road. UPRR shall cooperate with Town on Town's development of a grade separation for New Tangerine Road over the UPRR right of way, including reasonably expediting review and approval of plans, specifications and agreements submitted by the Town, each of which must comply with UPRR's then- current requirements and standards. Provided, however, UPRR acknowledges its approval of the current plans for this grade separation, which plans include piers supporting the New Tangerine Road overpass located in the UPRR right of way. UPRR shall also support the Town's application to the Arizona Corporation Commission ("ACC") for the proposed grade separation project. Provided, however, the Town agrees that UPRR shall not be required to contribute any funding. to the New Tangerine Road grade separation project unless the project includes the closure of an existing public at- Special Council Meeting -February 24, 2009 -Page 25 of 30 grade crossing somewhere in the Town. If the New Tangerine Road grade separation project includes the closure of an existing public at-grade crossing somewhere in the Town, and the Town receives federal funding for such grade separation project, then UPRR shall be liable for a five percent (5%) share of the cost of the theoretical structure under the provisions of the Federal Aid Policy Guide as contained in 23 CFR 646, Subpart B, Section 646.210(b)(1). Provided, if the Town does not receive federal funding for this grade separation project (and the grade separation project includes the closure of an existing public at-grade crossing), then UPRR's share of the cost of such theoretical structure shall be ten percent (10%). 5. Future Grade Separation Projects. UPRR shall, at the appropriate time, negotiate with Town in good faith the timing of UPRR's funding of its share of the cost of such theoretical structure for grade separation projects for the following locations: Marana Road Overpass at RR MP 961.33 Moore Road Overpass at RR MP [tbd] Avra Valley Road Overpass at RR MP [tbd] Twin Peaks Road Overpass at RR MP 970.18 Cortaro Road Overpass at RR MP 972.01 Ina Road Overpass at RR MP 974.03. For each of these grade separations, the share of the cost which UPRR would be required to contribute would be ten percent (10%) for projects with no federal funding and five percent (5%) for such projects with federal funding, in each case as a percent of theoretical structure under the provisions of the Federal Aid Policy Guide as contained in 23 CFR 646, Subpart B, Section 646.210(b)(1), and in each case solely to the extent the grade separation project results in the closure of an existing public at-grade crossing. In each case, the share of the cost indicated as payable by UPRR is the maximum share of such cost which UPRR would be required to contribute. Except as provided in Section 6 below, in no event shall UPRR be required to contribute to any funding of a grade separation structure for which there is not a corresponding closure of an existing public at-grade crossing. The design plans for all grade separation projects shall comply with UPRR's then-current requirements and standards, including the requirement that the grade separation clear span the entire UPRR right of way, with no supporting piers or abutments in the UPRR right of way, unless UPRR agrees otherwise. For these grade separation projects to be eligible for the specifics of this section, they must begin while this agreement is effective. For the purposes of this agreement, begin is defined as a point in which a consultant is actively under contract for the design of construction documents, whether by the Town or another entity. 6. Tortolita Boulevard Grade Separation Project. Notwithstanding any language to the contrary in Section 5 above, UPRR shall contribute its five percent (5%) or ten percent (10%) share of the cost of the theoretical structure for the Town's Tortolita Boulevard grade separation project at RR MP 959.43, even though such project shall not result in the closure of an at-grade public crossing. As with other grade separation Special Council Meeting -February 24, 2009 -Page 26 of 30 projects noted above, UPRR's share shall be ten percent (10%) if no federal funding is obtained by the Town, or five percent (5%) if federal funding is obtained. 7. Subsequent Utility Relocations. UPRR shall communicate with Town regarding UPRR's second main track project so the Town shall have an opportunity to request that UPRR plan the relocation of any utilities in connection with the second main track project to depths which would accommodate future projects planned by the Town. TOWN OBLIGATIONS 8. Town Projects in UPRR Right of Way. In connection with all Town projects on UPRR right of way, Town shall execute UPRR's then-current form of Construction and Maintenance Agreement, License Agreement or Right of Entry Agreement, as applicable, in connection with such projects, including any grade separation projects for the crossings listed on Exhibit A or otherwise contemplated herein. Additionally, UPRR and Town anticipate that, for each of the particular projects contemplated in this Agreement, UPRR and Town shall enter into a more detailed agreement for each such particular project at the time the Town moves forward with such particular project, in each case consistent with the provisions set forth herein. 9. UPRR Second Main Track Project Cooperation. (a) Town shall support UPRR's second main track project, including specifically supporting and approving construction of the second main track over and across each grade crossing listed on Exhibit A. Town shall provide one or more letters to or filings with the ACC advising the ACC that Town supports and approves UPRR's project applications for construction of a second main track across all public grade crossings within the jurisdiction of Town. If appropriate, Town will endeavor to appear at ACC hearings and public meetings to advise the ACC that it supports and approves UPRR's applications to the ACC for authority to alter the subject grade crossings by installing a second main track at grade. (b) UPRR shall file this Agreement (when effective) with the ACC in support of each application it files for an additional main track over and across a public grade crossing listed on Exhibit A. Town agrees to provide statements confirming the effectiveness of this Agreement if so requested by the ACC or UPRR. 10. Permits. Upon request by UPRR, Town shall reasonably expedite review and approval of any permit applications by UPRR for its second main track project within the Town's jurisdiction, including promptly reviewing and approving any UPRR flood plain permit applications. Special Council Meeting -February 24, 2009 -Page 27 of 30 4 OTHER 11. Open Communication. UPRR and Town shall use reasonable efforts to maintain open communications regarding their plans for subsequent expansion projects in the Town. which materially impact their respective interests. 12. Effectiveness and Termination of Agreement. (a) This Agreement shall be effective when signed by the parties hereto. The date of this Agreement shall be the date on which the last party signs it. Subject to Section 12(b) below, this Agreement shall extend for a term of twenty (20) years, and within six (6) months prior or subsequent to the end of such twenty (20) year term, either party hereto shall have the right to extend this Agreement for an additional twenty (20) years by sending written notice of such extension to the other party. (b) UPRR may unilaterally terminate this Agreement without penalty or obligation to Town if the ACC rejects or disapproves, or attaches substantial adverse conditions to, any UPRR second main track project grade crossing alteration applications regarding public grade crossings within Town's jurisdiction as listed on Exhibit A, such as ordering a grade separation funded by UPRR at any public grade crossing within Town's jurisdiction as listed on Exhibit A in response to a UPRR application to construct an additional main track at grade over and across such crossing, unless such order contains terms which are substantially the same in form and substance as the terms of this Agreement. 13. Miscellaneous Provisions. (a) This Agreement constitutes the entire agreement between UPRR and Town relating to this transaction. All prior or contemporaneous agreements, understandings, representations or statements, whether oral or written, relating to this transaction are merged herein. The headings and titles to provisions in this Agreement are for convenience only, and shall not be deemed to modify or affect the rights or duties of UPRR or Town. All rights and obligations of UPRR and Town set forth in this Agreement are integral parts of this Agreement. The consideration inducing UPRR and Town to enter into this Agreement includes all of the commitments by UPRR to Town, and by Town to UPRR, as set forth in this Agreement. The terms of this Agreement have been arrived at after considerable arms length negotiation and mutual review of the parties, and the parties agree that none of the provisions herein shall be deemed or presumed to be construed against either party, regardless of which party drafted all or part of the terms of this Agreement. (b) Except as specifically set forth in this Agreement, none of the parties hereto waives, releases or relinquishes any rights any such party may have with respect to construction of railroad trackage or facilities or with respect to grade separation or grade crossing projects in the State of Arizona. Special Council Meeting -February 24, 2009 -Page 28 of 30 (c) No modifications to this Agreement shall be effective unless in writing signed by all parties hereto, (d) This Agreement shall be governed by Arizona law. (e) Time is of the essence of this Agreement. (f) If any term, covenant or provision of this Agreement, or the application thereof to any person or circumstance, shall ever be held to be illegal, invalid or unenforceable, then, in such event, the remainder of this Agreement or the application of such terms, covenants and provisions hereof shall remain valid and enforceable to the fullest extent permitted by law. Furthermore, any such invalidity or unenforceability of a term, covenant or provision of this Agreement shall not be deemed to affect the validity or effectiveness of the remaining terms and provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth below. TOWN OF MARANA, ARIZONA UNION PACIFIC RAILROAD COMPANY By:_ Title: Attest: Date: By:_ Title: Attest: Date: Special Council Meeting -February 24, 2009 -Page 29 of 30 EXHIBIT A Marana Road at RR MP 961.33 Tangerine Road at RR MP 965.69 Camino De Manana at RR MP 970.42 Cortaro Farms Road at RR MP 972.01 Massingale Road at RR MP 973.36 Ina Road at RR MP 974.03 Joiner Road at RR MP 975.6 Special Council Meeting -February 24, 2009 -Page 30 of 30 {00012829.DOC /}