City engineering staff told the council Union Pacific Railroad will expand tracks near Tillein Road and that the city’s existing water and sewer lines conflict with the planned work. Under a 1970s agreement the city would ordinarily bear the relocation costs, but staff said negotiations produced a cost-sharing agreement with Union Pacific.

According to staff, bids for the water and sewer relocation total $400,000; under the proposed agreement the city would pay $200,000 and Union Pacific would pay $200,000. The agreement also calls for the parties to share 50% of any unforeseen costs that arise during relocation. Staff recommended council approval of the cost-sharing agreement and new pipeline crossing agreements for the relocated utilities.

Staff noted the arrangement also includes new pipeline agreements for facilities crossing Union Pacific rights-of-way. The transcript records the staff presentation and the recommendation; a formal vote on the agreement was not recorded in the provided transcript segments.

Why it matters: Relocating utilities to accommodate rail expansion can be costly and affect service continuity; a cost-sharing agreement reduces the city’s direct exposure but creates joint responsibility for unforeseen expenses.