Regional Water System
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Development Agreement between the North Texas Municipal Water District and the Kansas City Southern Railway Company regarding a future Rail Spur project in Wylie Texas; Project No. 101-0646-24; Resolution No. 24-10
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SUBJECT
recommendation
Authorize the execution of a Development Agreement between the North Texas Municipal Water District (NTMWD) and the Kansas City Southern Railway Company, d/b/a CPKC.
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PURPOSE
CPKC plans to construct a future spur track that will cross NTMWD’s Lake Texoma Outfall to Wylie Water Treatment Plant 96-inch raw waterline and NTMWD’s Wylie to Rockwall 48-inch waterline, east of Spring Creek Parkway in Wylie, Texas. The CPKC project will require steel casing to be installed around NTMWD’s waterlines at the railroad crossing to protect the pipelines from heavy railroad loads.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize the Executive Director, NTMWD staff, and Saunders, Walsh and Beard recommend the Board of Directors authorize the Executive Director to execute a Development Agreement as follows:
1. Authorize the Executive Director to execute a Development Agreement with the Kansas City Southern Railway Company, d/b/a CPKC.
2. Adopt Resolution No. 24-10, “A Resolution Authorizing the Executive Director to execute a Development Agreement between the North Texas Municipal Water District and the Kansas City Southern Railway Company, d/b/a CPKC regarding a future CPKC Rail Spur Project in Wylie, Texas”
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Contracting Party: |
Kansas City Southern Railway Company |
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Scope: |
Construction of CPKC Rail Spur and Parking Lot |
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Project: |
No. 101-0646-24 Development Agreement between the NTMWD and the CPKC regarding future CPKC Rail Spur project in Wylie Texas |
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Amount: |
$7,177,272.40 |
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Strategic Objective: |
1.4 Reliable and Resilient Systems 3.3 Durable Strategic Partnerships |
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Committee: |
This will be an item on the March 27, 2024, Water Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☒ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☐ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• In September 2023, CPKC contacted NTMWD staff regarding CPKC’s planned rail spur and parking lot project at the Wylie Intermodal Terminal Facility north of State Highway 78, between Spring Creek Parkway and Skyview Court. The planned rail spur will cross NTMWD’s Lake Texoma Outfall to Wylie Water Treatment Plant 96-inch raw waterline and NTMWD’s Wylie to Rockwall 48-inch waterline.
• As part of their project, a planned parking lot will conflict with an air valve and blow-off valve on NTMWD’s Wylie to Rockwall 48-inch waterline.
• NTMWD’s waterline easements granted by CPKC require the NTMWD to install steel casing around the waterlines within the right-of-way of future railroad crossings and potentially relocate portions or aspects of the waterlines in order to protect the waterlines from heavy railroad loads.
• To complete this work expeditiously and allow CPKC to proceed with its spur track project, NTMWD staff recommends CPKC include NTMWD’s pipeline improvements with its spur track project. The NTMWD will reimburse CPKC for all costs associated with the design, construction and inspection of the steel casing installations.
• CPKC will pay for all costs associated with the design, construction and inspection of NTMWD’s air valve and blow-off valve modifications.
• CPKC will employ the services of a large diameter pipe contractor that has successfully completed NTMWD pipeline projects and is currently in good standing with the NTMWD.
• CPKC will separate the work associated with NTMWD’s pipeline improvements from non-NTMWD work in its construction contract so that all reimbursable costs are clearly indicated.
DEVELOPMENT AGREEMENT:
The Development Agreement is attached. The general notable terms are as follows:
• CPKC will employ a professional engineering firm licensed in the State of Texas to design the casing installation to conform with the American Railway Engineering and Maintenance-of-Way Association E-80 train load requirements.
• CPKC will employ a professional engineering firm licensed in the State of Texas to design the valve improvements to conform with the American Association of State Highway and Transportation Officials H20 load requirements.
• NTMWD will reimburse CPKC for all costs associated with the casing installation.
• CPKC will be responsible for all costs associated with the valve improvements.
• NTMWD shall have the sole right to approve the design plans prior to CPKC selecting through its bid process a third-party to perform the casing installation and valve improvements work.
• Prior to the award, CPKC shall notify NTMWD of the proposed contractor and winning bid amount for NTMWD staff review and approval.
FUNDING
Funding in the amount of $7,177,272.40 to Kansas City Southern Railway Company is to be made available from the Regional Water System Capital Improvement Fund.