City to share utility relocation costs with Union Pacific for rail expansion near Tillein Road
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Summary
Staff told council Union Pacific will expand tracks near Tillein Road; the city must relocate water and sewer lines under a 1970s agreement but negotiated a 50/50 cost-share for an estimated $400,000 project, with the city paying $200,000 plus 50% of unforeseen costs.
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.