09-100 f' 1.
Resolution No. 09-100
RESOLUTION
AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT
WITH GRAND TRUNK CORPORATION, A SUBSIDIARY OF CANADIAN NATIONAL
RAILWAY COMPANY, REGARDING NOISE MITIGATION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock, Mayor, and Diane Robertson, City Clerk,be and are hereby authorized and directed to
execute a Memorandum of Agreement with Grand Trunk Corporation on behalf of the City of Elgin
regarding noise mitigation, a copy of which is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: April 29, 2009
Adopted: April 29, 2009
Omnibus Vote: Yeas: 7 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
MEMORANDUM OF AGREEMENT
This MEMORANDUM OF AGREEMENT("Memorandum") is made and entered into this
29th day of April, 2009, by and between the City of Elgin, an Illinois municipal corporation
("Elgin") and Grand Trunk Corporation, a wholly owned U.S. subsidiary and owner of the U.S.
rail operating subsidiaries of Canadian National Railway Company ("CN") (collectively, "GTC"),
and co-applicant in the filing before the Surface Transportation Board ("STB"). This
Memorandum sets out certain commitments GTC is prepared to make to address the following
issues resolved by the parties related to existing train traffic and changes in train traffic
anticipated as a result of the CN/EJ&EW transaction ("Transaction"), authorized by the STB on
December 24, 2008 in STB Finance Docket No. 35087, and the corresponding agreement by
Elgin that these commitments by GTC resolve any outstanding concerns Elgin has related to the
Transaction. The specific terms of this Memorandum between GTC and Elgin are summarized
below, and will be effective upon the execution of this Memorandum by duly authorized
representatives of Elgin and GTC.
A.
I Quiet Zones
(A) GTC will fund additional measures required to maintain the existing Quiet Zone
designation on the EJ&EW line to be acquired by GTC within the City limits of
Elgin should the retention of the designation be jeopardized by additional train
volumes on the line resulting from the transaction. This provision will be limited
for a period of 10 years from the date of acquisition by GTC of control of EJ&EW.
II Noise Mitigation
(A) GTC will fund noise mitigation for a total distance of 1700 feet for a residential
subdivision south of Irving Park Road. An exhibit which identifies the noise barrier
location entitled "CN Acquisition of EJ&E Lines Elgin Voluntary Agreement Exhibit" is
attached hereto as Exhibit 1. Within 180 days from the date of acquisition by GTC of
control of EJ&EW, Elgin shall select one of the following two mitigation options,
subject to the conditions set forth herein. The specifics of design under either option
will be established in cooperation with the City and the final design subject to City
approval.
(B) Option one is that GTC shall fully fund and construct sound walls of concrete or
timber panels on the GTC property line. GTC shall have the continuing obligation to
maintain the sound walls for structural integrity, and Elgin shall bear the responsibility
for keeping the walls free from graffiti or other visual defacement. GTC and Elgin
agree to provide mutual access for this purpose to the limits of ability.
(C) Option two is that GTC shall contribute $700,000 toward the construction of an
earthen berm by Elgin or its designee, together with mature vegetation to provide a
shield for the same subdivision. GTC agrees to consider allowing a maximum of 15
feet of its right of way to be utilized for the berm, subject to GTC's engineering
concurrence. GTC will grant a renewable 20-year lease at no cost to Elgin or
designee for construction and maintenance. All maintenance of the vegetation will
be the responsibility of Elgin, or its designee. GTC shall provide the funds necessary
90 days after review and acceptance of a construction plan and estimate for all
construction. Elgin may allocate the balance of the $700,000 in funds not committed
to the berm/vegetation toward safety fencing installed and owned/maintained by the
City on any property adjacent to the EJ&EW right of way within Elgin limits. Elgin
shall provide documentation of the appropriate expenses to GTC within 90 days of
installation.
III Emergency Response Training
GTC will provide training at no cost to Elgin for Elgin's emergency responders. GTC will
complete a training plan in conjunction with the Police Chief and the Fire Chief within 6 months
after acquisition. All training will be completed within a 3-year span. This does not preclude
additional training in subsequent years beyond for new employees and as refresher.
IV Other
GTC will work with the City of Elgin to identify available industrial development parcels and
include them in our commercial portfolio.
B.
CONDITIONS FOR GTC'S OBLIGATIONS UNDER THIS MEMORANDUM OF AGREEMENT
I. The commitments of GTC set forth in this Agreement are conditioned upon the
following:
(A) Acquisition by GTC of control of the EJ&EW, pursuant to STB authorization, was
effected at 11:59 P.M, January 31, 2009.
II. Upon execution of this Memorandum and the acquisition of control of EJ&EW by GTC,
GTC will fulfill its commitments contained in this agreement within a three-year period
after acquisition of control.
III. Elgin agrees that it shall not make further submissions in the STB proceeding (or in
related appellate proceedings) without GTC's prior review and approval except in
support of this agreement and/or the STB's decision approving the Transaction.
IV. Confidentiality
This negotiated Memorandum and its terms shall be confidential, except to the extent disclosure
may be essential for consideration by the Elgin corporate authorities at a public meeting and as
otherwise required by law and only after notice to, and consultation between GTC and Elgin,
and except that it may be submitted to the STB's Section of Environmental Analysis ("SEA"),
subject to a request that it be kept confidential by SEA and the STB.
•
V. Sole Remedy
It is the intent of the parties to this Memorandum that the STB require GTC's compliance with
this agreement in lieu of any additional or inconsistent mitigation that the STB might otherwise
impose regarding environmental impacts in Elgin. SEA has asked that CN provide copies of any
formalized agreements between GTC and affected communities, and the parties agree that
GTC shall provide a copy of this Memorandum to SEA upon execution.
Agreed To:
GTC
By:
GTC
(c cio
Title Date: T)C/ y zoo?
Agreed To:
City of Elgin
By: ►
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Date: 019, 0/-6 a-9
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C. ,■, , y Mt emorandum
v City of Elgin
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ORATED 0,6
To: Jennifer Quinton, Deputy Clerk
From: Mary Giffort, Legal Secretary/Paralegal
Subject: Resolution No. 09-100 Adopted at the April 29, 2009 Council Meeting
Attached find for the city clerk's files one originally executed copy of the agreement between the city
and Grand Trunk Corporation.
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Attachment
April 2, 2009 t 0-
TO: Mayor and Members of the City Council d
FROM: Olufemi Folarin, City Manager
William A. Cogley, Corporation Counsel
SUBJECT: Memorandum of Agreement with Grand Trunk Corporation, a subsidiary of
Canadian National Railway Company, Regarding Noise Mitigation
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider a proposed Memorandum of Agreement with Grand Trunk Corporation,
a wholly owned U.S. subsidiary and owner of the U.S. rail operating subsidiaries of Canadian
National Railway Company, regarding noise mitigation along the Canadian National/EJ&EW
line being acquired by Canadian National Railway Company.
RECOMMENDATION
It is recommended that the City Council approve the Memorandum of Agreement.
BACKGROUND
The Canadian National Railway Company is in the process of finalizing its acquisition of the
EJ&EW railway line. Such railway line runs along a portion of the easternmost boundary of the
City of Elgin.
Attached is a proposed Memorandum of Agreement between the City and Grand Trunk
Corporation, a wholly owned U.S. subsidiary and owner of the U.S. rail operating subsidiaries of
Canadian National Railway Company ("CN") (collectively "GTC"). The agreement may be
summarized as follows:
1. GTC will fund additional measures required to maintain the existing quiet zone
designation on the EJ&EW line to be acquired by GTC within the City limits of the City
of Elgin should the retention of the designation be jeopardized by additional train
volumes on the line resulting from the transaction. This provision will be limited for a
period of ten (10) years from the date of acquisition by GTC of control of the EJ&EW
line.
Memorandum of Agreement with Grand Trunk Corporation Regarding Noise Mitigation
April 2, 2009
Page 2
2. GTC will fund noise mitigation for a total distance of 1,700 feet for the residential
development known as Fieldstone located south of Irving Park Road. An exhibit which
identifies the noise barrier on the eastern portion of the Fieldstone development is
attached to the agreement as Exhibit 1. (The Fieldstone development appears to be the
only residential development currently developed within the City adjacent to the subject
EJ&EW line.) Within 180 days from the date of acquisition by GTC of control of the
EJ&EW rail line, the City is to select one of two specified mitigation options. The
specific design under either option will be established in cooperation with the City and
the final design subject to City approval. Option 1 is that GTC shall fully fund and
construct sound walls of concrete or timber panels on the GTC property. GTC shall have
the continuing obligation to maintain the sound walls for structural integrity. The City
would have the responsibility for keeping the walls free from graffiti or other visual
defacement. Option 2 is that GTC shall contribute $700,000 toward the construction of
an earthen berm by the City or its designee together with mature vegetation and provide a
shield for the subdivision. GTC would allow a maximum of 15 feet of its right-of-way to
be utilized for the berm subject to GTC's engineering concurrence. All maintenance of
the vegetation would be the responsibility of the City or its designee. In the event the
entirety of the $700,000 was not utilized for the earthen berm, the City may allocate the
balance of the $700,000 towards safety fencing installed on other property adjacent to the
EJ&EW right-of-way within the City limits.
3. GTC will provide training at no cost to the City for the City's emergency responders.
GTC will complete a training plan in conjunction with the Police Chief and the Fire Chief
within six months after acquisition. All training will be completed within a three year
span. Such provisions do not preclude additional training in subsequent years for new
employees and as refresher training.
4. GTC will work with the City to identify available industrial development parcels and
include them in GTC's commercial portfolio.
5. The City would agree that it would not make further submissions to the Surface
Transportation Board proceeding, or in related appellate proceeding, without GTC's prior
review and approval except in support of this agreement and/or the Surface
Transportation Board's decision approving the transaction.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The property owners association for the Fieldstone development. Initial discussions with the
property owners association indicate that the property owners association prefers Option 1
consisting of the sound walls of concrete or timber panels.
FINANCIAL IMPACT
None
Memorandum of Agreement with Grand Trunk Corporation Regarding Noise Mitigation
April 2, 2009
Page 3
LEGAL IMPACT
None
ALTERNATIVES
1. The City Council may choose to authorize execution of the Memorandum of Agreement.
2. The City Council may choose not to authorize execution of the Memorandum of
Agreement.
Respectfully submitted for Council consideration.
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Attachment