HomeMy WebLinkAboutContract 19305 LAND ACQUISITION SETTLEMENT AGREEMENT
This LAND ACQUISITION SETTLEMENT AGREEMENT (the
"Agreement" ) is between the City of Fort Worth, Texas (the
"City" ) and the Atchison, Topeka, and Santa Fe Railway Company
( "Santa Fe" ) , with the concurrence of the U.S. Department of
Transportation, Federal Aviation Administration (the "FAA" ) ,
to be effective the day of September, 1992 .
WHEREAS, the City submitted to the FAA a Preliminary
Application for Federal Assistance dated September 1991, as
amended, to improve Fort Worth Alliance Airport, including an
extension of the runway and taxiways (collectively, the
"Airport Improvement Project" ) ;
WHEREAS, completion of the Airport Improvement Project
will require the release of easements and acquisition of
improvements owned by Santa Fe and located within the
boundaries of the proposed Airport Improvement Project, which
portion is more particularly identified on Attachment A hereto
as the "Main Line Segment" ;
WHEREAS, acquisition of Santa Fe ' s interest in the Main
Line Segment is for a public purpose;
WHEREAS, Santa Fe must be compensated for the City' s
acquisition of Santa Fe' s interest in the Main Line Segment;
WHEREAS, the parties desire to avoid the uncertainty
associated with determining the fair Market value of Santa.
Fe' s interest in the Main Line Segment;
WHEREAS, the parties desire to avoid the greater
uncertainty of determining damages, if any, to the remainder
of the land and improvements owned by Santa Fe;
WHEREAS, the parties desire to avoid the costs and
expenses of condemnation proceedings;
WHEREAS, the parties acknowledge that Section 273 . 003 of
the Local Government Code of Texas provides that if it is
necessary for a municipality to relocate a railroad facility
outside its corporate limits, the municipality, at its sole
expense, shall pay for the actual cost of a comparable
replacement facility without enhancement of the facility,
after deducting the net salvage value derived from the old
facility;
WHEREAS, the parties believe that by proceeding with this
Agreement at this time, Santa Fe ' s interest in the Main Line
Segment will be acquired at the lowest cost to the City; and
WHEREAS, pursuant to 14 CFR Section 151 .24(a) , this
Agreement provides for the acquisition of an interest in land
at a cost that is not the actual cost or the amount of an
award in eminent domain proceedings .
NOW THEREFORE, to avoid the uncertainties, costs, and
expenses described above, to acquire Santa Fe ' s interest in
the Main Line Segment on a timely basis and at the lowest cost
to the City, and to comply with the provisions of the state
law and federal regulations, and for and in consideration of
the mutual covenants herein contained, the parties agree as
follows :
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SECTION 1 . LAND ACQUISITION COST
The compensation to be paid to Santa Fe for the City' s
acquisition of Santa Fe' s interest in the Main Line Segment
(the "Land Acquisition Cost" ) shall equal the actual and
reasonable costs (the amount approved and paid by the FAA as
provided in this Agreement) paid or incurred by or on behalf
of Santa Fe in relocating its main rail line to the "preferred
alternative" identified in the Final Environmental Assessment
for the Proposed Runway Extension and Related Airport
Improvements at Alliance Airport, dated January 6, 1992,
prepared for the City by Charles Willis Associates, Inc . (the
"Relocation" ) . The Land Acquisition Cost is a customary, fair,
and reasonable measure of the just compensation to which Santa
Fe is entitled for the City' s acquisition of Santa Fe ' s
interest in the Main Line Segment . Santa Fe knowingly and
voluntarily agrees to look solely to this Agreement for
compensation and waives all other compensation, including the
right to compensation based on an appraisal , and waives any
and all causes of action which it has or might have in the
future.
The scope of the work necessary to accomplish the
Relocation includes, but is not necessarily limited to, those
items described on Attachment B attached hereto. The cost
estimates shown on At-tachment B are a reasonable estimate of
the Land Acquisition Cost as of the date of this Agreement .
The final Land Acquisition Cost shall equal the actual and
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reasonable costs paid or incurred to accomplish the
Relocation; provided, however, (i) in no event shall the final
Land Acquisition Cost exceed the estimate shown on
Attachment B by more than 15% and (ii) the final Land
Acquisition Cost shall include only those elements of cost or
expense that are allowable and allocable to the Relocation in
accordance with OMB Circular No. A-87 . The final
determination of allowability and allocability shall be made
by the City.
SECTION 2. RELOCATION WORK
Santa Fe shall perform or cause to be performed all work
necessary to complete the Relocation. The City and the FAA
shall have the right to inspect the work at any time.
As soon as possible, Santa Fe shall deliver to the City
preliminary plans and specifications for the Relocation,
together with a preliminary, itemized budget . The City will
identify any category of cost or expense that it believes is
not allowable or allocable to the Relocation. The City will
then submit the preliminary, itemized budget to the FAA which
will , in turn, identify any line item thereof which the FAA
determines is unreasonable in amount .
Prior to beginning construction on any phase of the
Relocation, Santa Fe will deliver to the City final plans and
specifications for such phase, together with a final , itemized
budget for such phase. The City will again identify any
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category of cost or expense that it believes is not allowable
or allocable to the Relocation. The City will then submit the
final, itemized budget to the FAA which will , in turn, again
identify any line item thereof which the FAA determines is
unreasonable in amount .
If at any time Santa Fe anticipates ' it will be necessary
to exceed the total amount previously identified for any
category of cost or expense by more than 15%, it shall give
prior written notice to the City and seek approval of the City
before incurring costs in excess of such amount . The City
shall then submit the approved amounts to the FAA which will,
in turn, identify any part thereof which the FAA determines is
unreasonable in amount .
Santa Fe shall not use any procedure or standard to
select or contract with any person that it would not otherwise
use in the ordinary course of its business . Santa Fe' s
procurement procedures and standards will be used to select
and contract with professionals, consultants, contractors, and
all other persons who will perform work on the Relocation.
All right of way will be acquired in accordance with the
Uniform Relocation Assistance and Real Property Acquisition
Act of 1970 and 49 CFR Part 24, Uniform Relocation Assistance
and Real Property for Federal and Federally Assisted Programs.
As soon as the Relocation is complete and operational and
Santa Fe has received final payment of the Land Acquisition
Cost (the amount approved and paid by the FAA as provided in
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this Agreement) , Santa Fe shall convey all of its right,
title, and interest in and to the Main Line Segment to the
City.
SECTION 3 . PAYMENT OF LAND ACQUISITION COST
Santa Fe shall record the Land Acquisition Cost through
work orders or other written documentation approved by the
City and the FAA. When and if FAA grant funds become
available for the Airport Improvement Project, Santa Fe shall
submit to the City a payment request for the Land Acquisition
Cost incurred through such date. Thereafter , Santa Fe shall
submit payment requests on a monthly basis . Santa Fe shall
submit one final payment request at the earliest practicable
date, and such final request shall be accompanied by a
certification by Santa Fe that the Relocation has been
completed in substantial compliance with the final plans and
specifications and this Agreement .
All payments of the Land Acquisition Cost shall be made
exclusively from FAA grant funds actually received by the City
for the Airport Improvement Project . No payment of the Land
Acquisition Cost shall be made to Santa Fe until FAA grant
funds have been delivered to the City in an amount sufficient
to pay such Land Acquisition Cost . No payment shall be made
from any monies from the treasury of the City, In the event
FAA grant funds are delayed or denied or are insufficient to
pay the Land Acquisition Cost, the City shall not be liable to
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Santa Fe for such payment . In addition, if the FAA determines
(through an audit or otherwise) that any part of the Land
Acquisition Cost already paid with FAA grant funds should be
disallowed for any reason so as to require the City to repay
such part to the FAA, then Santa Fe shall repay the City such
part . Santa Fe shall have the right, at its expense, to
represent its interests before the FAA with regard to any
matter concerning the Relocation or the payment of the Land
Acquisition Cost .
SECTION 4 . ADDITIONAL PROVISIONS
The parties acknowledge that this Agreement permits (but
does not obligate) Santa Fe to immediately proceed with the
Relocation. The parties further acknowledge that the
Relocation constitutes a comparable replacement facility
without enhancement and that the salvage value of Santa Fe' s
interest in the Main Line Segment is negligible. The City
agrees that it will exercise reasonable discretion in
determining allowable and allocable costs, that the Land
Acquisition Cost will be payable in installments, if such is
the manner FAA grant funds become available to the City, and
that it will use reasonable efforts to pay the Land
Acquisition Cost to Santa Fe or any installment thereof)
promptly. Santa Fe hereby certifies to City that Santa Fe has
reviewed the scope of the work and cost estimates listed on
Attachment B hereto and that same reflect the standard and
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reasonable work items and costs which Santa Fe would normally
require for the Relocation,
APPROVED AS TO THE CITY OF FORT WORTH,
FORM AND SUBSTANCE TEAS
B By:
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Title. 08Pur-t �0, A - Ns 7 Title: 7 .
Date: C' - -q,� Date:
ATTEST: ATCHISON, TOPEKA, and
SANTA FE RAILWAY COMPANY
Alice Church
City Secretary B ,r
Title: �f
Date: -
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CONC : FEDERAL AVIATION ADMINISTRATION
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anager rAirpor 'vision, Date
Southwest Regions
Director, Office of Airport Date
Planning and Programing,
FAA Headquarters
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ATTACECALNT B
THE AT& SF RAILWAY COMPANY MAINLINE RELOCA17ION BUDGET
WORK DESCRIPTION E, I3
Mainline
South Track $ 1,714,810
Thru,Yard 1,658,856
North Track 41398,138
Signalization 1,000,000
Siding Track 909,238
Storage Tracks 2,094,351
Connecting Track 1,079,369
Structures
South Track 470,050
North Track 833,350
Connecting Track 191,250
FM 156 Grade Separation(North) 4,940,632
SH 114 Grade Separation 2,844,153
CR 4029 Grade Separation 638,580
Materials Testing 302,500
Sub-Total 239075,277
Engineering& Administration(20%) 4,615,055
Sub-Total 2716",332
Connector Track& FM 156 Grade Separation&
Roadway Reconnection 3,736,667
Engineering&Administration(20%) 747,333
Sub-Total 32,1741.332
Mainline Land 2,505,000
CR 4029 Land 25,000
FM 156 Land 145,000
TO';,ALL $ 34,849,332
*Estimate Ma v vary-Environmental Assessment
Process is still underway
" ,
C- Qf Fort Woitk Texas
Mayor and Council Communication
DATE 09/08/92 1 REFERENCE NUMBER C-135291 'OG NAME 02SETTLE I PAGE 1 of I
SUBJECT LAND ACQUISITION SETTLEMENT AGREEMENT WITH THE ATCHISON, TOPEKA AND SANTA FE
I RAILWAY COMPANY
It is recommended that the City Council approve and authorize the City Manager to
execute the attached Land Acquisition Settlement Agreement with the Atchison, Topeka
and Santa Fe Railway Company ("Santa Fe") .
The City of Fort Worth submitted to the Federal Aviation Administration (FAA) a
preliminary application, (dated September 1991) , for federal assistance to improve Fort
Worth Alliance Airport, including an extension of the runway and taxiway. The
completion of the runway and taxiway extension will require the City to acquire Santa
Fe' s interest in certain land and improvements. To obtain the required portion of the
existing main rail line, Santa Fe must be compensated. Santa Fe has agreed to accept,
as compensation, the cost to relocate the main rail line to the "preferred
alternative" , as identified in the Final Environmental Assessment for the Alliance
Airport Improvement Project. The cost of main rail line relocation is included in the
City' s grant application to the FAA.
As a result of the proposed relocation of the main rail line and the sale of a rail
facility in Dallas County, Santa Fe began developing plans to construct a new rail
facility on the proposed relocated main rail line. Although the funding of the City's
grant application from FAA has been delaved', Santa Fe desires to continue developing
the plans and begin construction of the new facility. In order for Santa Fe to be able
to continue with its plans, the main rail line must be relocated.
The proposed Land Acquisition Settlement Agreement would authorize Santa Fe to proceed
with the design and construction of the relocation of the main rail line and be
eligible to have its expenses reimbursed from FAA funds. Reimbursement would occur
only if the grant application is approved and Santa Fe complies with all FAA
regulations. The City will acquire and Santa Fe will release its interest in the land
and improvements only when Santa Fe has been paid its relocation costs. The proposed
agreement does not, under any circumstances, Commit -'the City to reimburse Santa Fe from
any funds other than grant funds from FAA.
The FAA has reviewed the proposed agreement, concurs with its intent, and will be a
signatory of the agreement.
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