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HomeMy WebLinkAbout06-29-1993 CITY COUNCIL AGENDA PACKET JUNE 29t 1993 1 I 1 AGENDA , Date Il~_ Q... ~L~ CITY OF DENTON CITY COUNCIL June 29, 1993 ~f Work Session of the City 29, 1993 at 5:15 p.m. in the Civil Def nsn Room of CitysHa11,J215 E. McKinney, Denton, Texas at which the following items will be considered: 5:15 p.m. 1. Consider adoption of an ordinance authorizing the City Manager to execute a contract with the Missouri Pacific Railroad for the purchase of the Missouri Pacific, Denton Branch, right-of- way, 2. Present and discuss the 1993-94 Major Budget Issues Report. 3. Miscellaneous matters from the City Manager. 4. New Business This item provides a a,-tion for Council Members to suggest items for future agendas, C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Penton, Texas, on the day of (he _s 1993 at olclock (a.m.) CITY SECRETARY--` NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING, PLEASE CALL THE CITY SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TOD) BY CALLING 1-800-RELAY-TY SO SHAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. ACCO0129 CITY COUNCIL REPORT A~1#~IN9. p To: Mayor and Members of the City Council Date FROM: Lloyd V. Harrell, City Manager DATE: June 22, 1993 SUBJECT: PURCHASE OF MISSOURI PACIFIC RIGHT-OF-WAY FOR A RAILS-TO- TRAILS PROJECT aenaeaca==voecoeo.caas.o ocaao~ao~3easa=ecs=aca=a3_ noenaoeoaoaa RECOMMENDATION: That City council approve an ordinance authorizing the City Manager to execute a contract with Missouri Pacific Railroad for the purchase of the Missouri Pacific, Denton Branch right-of-way. SUMMARY: j The City has successfully negotiated a sales contract for the acquisition of approximately eight miles of railroad right-of-way under the terms of the National Trail Systems Act. The purchase will allow the City of Denton to rail bank the right-of-way and use it as a pedestrian and bicycle trail. Exhibit "B" of the contract the Bill of Sale and Deed for the right-of- way are not yat finalized. The Legal Department is preparing these documents to have at the June 2S meeting. BACKGROUND: Upon learning that Missouri Pacific intended to abandon the railroad right-of-way, from Lake Dallas to Denton, City staff and the Chamber of Commerce Transportation Committee obtained a pledge from Missouri Pacific to negotiate the preservation of the railroad corridor. The negotiations have been on-going for over three years. On November 19, 1991, Council was briefed on the Missouri Pacific lease proposal in Executive Session. At that time several concerns were raised, all of which have now been settled in the City's favor. The right-of-way will now be purchased rather than leased. On March 25, 1992, Council approved a resolution authorizing the Mayor to petition the Interstate Commerce Commission for a Certificate of Interim Trail Use. The negotiating period granted by the Interstate Commerce commission to finalize a trail use agreement expired on October 24, 1992. The City and Missouri Pacific Railroad petitioned the Interstate Commerce commission for an extension of the negotiation period and was granted a July 6, 1993 deadline. On June 15, 1993, Council was briefed on the contents of the contract with Missouri Pacific and directed staff to proceed with finalizing the contract. Issuance of an interim use certificate is predicated on the successful transfer of the property to the City of Denton. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Parks and Recreation will have responsibility for maintenance of the right-of-way and development of a tenil once funds have been AJJ0074C.WP5 IE Purchase of Missouri Pacific Right-of-Way flA June 22, 1993 AN Page 2 a<3 D <5 identified. Neighbors improving the Community Environment (NICE) has expressed support for the project because it will relieve Southeast Denton of a currently blighted area. The Denton Area Mountain Bike Club has also expressed an interest in assisting with the project. FISCAL IMPACT: The negotiated purchase price is $5,000, in addition to an annual use fee of $1,000, payable in arrears, for the first five years of the agreement. Contractual mowing costs are estimated at $13,500 annually which would provide for approximately seven mowings of the right-of-way. Two months of mowing would be required by the CSty this fiscal year after closing on the property occurs. In addition, post and cable barricades and warning signs would need to be placed at trestles and street crossings. Total dollars needed for the two months of mowing and post and cable would be $11,100. The funds for the purchase of the right-of-way, annual use fee, mowing, and post and cable which total $17,100 could be made available from the City Managers Contingency Fund. Revenue will be derived from the operating licenses and agreements pertaining to the use of the right-of-way. The estimated annual revenue is $5,290. This amount will cover some of the associated maintenance expenses. Total value of the eight miles of right-of-way is estimated at $200210000. Development of the trails project wc,uld include spreading and compacting of 5" of chat rock, restoring seven trestles, and signage. Funding for the development would be solicited from the Intermodal Surface Transportation and Efficiency Act and/or the City of Denton Capital Improvement Program. RESPEC FULLY SUBMITTED: I Llo d V. Harrell City Manager Prepared by: Rich Clugas Director of Parks and Recreation Approved by: B y McKe~~` Executive Prector for " Municipal Services/Economic Development AJJ0074C.WP5 { E1\NV00CE\0R0\RA1t.C AoendaNa cj `L-- Agendaltem J' L Do it ~d~fQ ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXECUTING THE ATTACHED LINE SALE AGREEMENT WITH MISSOURI PACIFIC RAILROAD COMPANY FOR THE PUR- CHASE OF A RAIL CORRIDOR, MORE PARTICULARLY DESCRIBED IN EXHIBIT A TO THE ATTACHED LINE SALE CONTRACT; AUTHORIZING THE CITY MANAGER TO ACCEPT AT CLOSING THE BILL OF SALE AND QUITCLAIM DEED ATTACHED AS EXHIBIT B TO THE ATTACHED LINE SALE AGREEMENT) AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF THE RAIL CORRIDOR; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton has been presented with the oppor- tunity to acquire almost eight miles of rail corridor to be aban- doned by Missouri Pacific Railroad company, for the purpose of maintaining a trail for non-motorized traffic; and WHEREAS, acquisition of this rail corridor will provide citi- zens and tourists of the City of Denton with an uncommon recrea- tional facility, being only the third such rail-to-trail conversion in the State of Texas; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Manager is hereby authorized to act on the CityRs behalf in executing the attached Line Sale Contract with Missouri Pacific Railroad Company for the purchase of a rail corridor, more particularly described in Exhibit A to the attached Line Sale Contract. SECTION II. That the City Manager is hereby authorized to accept at closing the bill of sale and quitclaim deed attached as Exhibit B to the attached Line Sale Contract. SECTION III. That the expenditure of funds as provided in the Contract is hereby authorized. SECTION IV. That this ordinance shall become effective immedi- ately upon its passage and approval. PASSED AND APPROVED this the day of 1993. BOB CASTLEBERRY, MAYOR AGende No Qate~ 2 Lld~j !S ATTEST: JENNIFER WALTERSO CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCHF CITY ATTORNEY PAGE 2 AgendaNo( Q 5 n r,~' Drafted June 25, 1993 LINE SALE CONTRACT THIS AGREEMENT, dated this day of , 1993, between MISSOURI PACIFIC RAILROAD COMPANY, a Delaware Corporation ("MP") and THE CITY OF DENTON, TEXAS, a Texas Municipality ("City of Denton"). WITNESSETH: A. Subject to Icc issuance of a Certificate of Interim Trail Use ("CITU"), MP desires to sell its Denton Branch between Milepost 721.53 at Denton, Texas, and Milepost 729.5 at Coors, Texas, hereinafter the "Line" to the City of Denton, and the City of Denton desires to purchase the Line as more particularly described in exhibit A. B. The above-described sale specifically excludes all of the rail, ties, switches, other track material and related appurtenances located along the Line with the exception of ballast and bridges located along the Line which MP intends to include as part of the sale. The land underlying the Line ("Realty") is to be included as part of the sale pursuant to Section s(d) of the National Trails System Act (16 U.S.C. 91247(d)). NOW, THEREFORE, for and in consideration of the mutual promises and other consideration herein set forth, the parties agree as follows: SECTION 1. ICC EXEMPTION. MP agrees to the issuance of a CITU. The City of Denton shall make the necessary request to the Interstate Commerce Commission for issuance of a CITU. SECTION 2. CONDITIONS PRECEDENT, C SING AND TRANSFER. The transaction described herein shall be consummated on a date mutually agreeable to the parties (the "Closing"), but in no event more than sixty (60) days following the issuance of the above-referenced CITU by the Interstate Commerce Commission, at a location mutually acceptable to the parties. At Closing, MP shall deliver a Bill of Sale in the form attached hereto and marked Exhibit "B+", selling to the City of Denton the Line in a "WHERE IS, AS IS" condition, without any warranty of any kind whatsoever as to quality, merchantability, or salability. MP shall, however, cooperate with the City of Denton PAGE 1 Agenda ND Aganda!terrt_~~ T Date A _L.:_- f cl~, 1 ~ in the defense or prosecution of litigation relating to the title to such personal property remaining on the Line or any portion thereof. SECTION 3. The term of this Agreement shall be thirty (30) years beginning at Closing, PROVIDED, HOWEVER, that MP may, at its option, terminate this Agreement in accordance with the provisions of Section 6. SECTION 4. 0yyLXANCE. The Line and Realty shall be conveyed and quitclaimed to the City of Denton by MP without warranty of title or quiet enjoyment and subject to all outstanding and superior rights reserving to MP (1) all coal, oil gas, casing head gas, and minerals of every nature and character whatsoever, like or unlike, known or unknown, underlying the Line and Realty, and (2) all property owned by it and managed by Missouri Improvement Company, Union Pacific Realty, or upland Industries Corporations PROVIDED that if the mining exploration or related activities or operations by MP or its successors or assigns results in cost or expense to the City of Denton, such cost and expense shall be paid to the City of Denton within fifteen (15) days of the receipt of the mineral interest owner(s) of a notice of the cost or expensesi and PROVIDED FURTHER that in the event that such mining operations unreasonably interfere with the City of Denton's use of the Line, MV or its successors and assigns shall bear all reasonable costs that may be incurred by the City of Denton in order to facilitate MP's activities. SECTION 5. PAYMENT FOR THE LINE BY TH rITY OF DENTON. At Closing, the City of Denton shall deliver to MP a certified or cashier's chece payable to Missouri Pacific Railroad Company in the amount of FIVE THOUSAND and N01100 DOLLARS ($5,000.00). In addition, the city of Denton will pay MP an annual use fee of ONE THOUSAND AND NO/100 DOLLARS (1,000.00), payable in arrears on each anniversary date of this Agreement for the first five (5) years following the effective date of this Agreement. SECTION 6. COMPLIANCE WITH U S C C 1247fd1. This Agreement and any subsequent conveyance are to be made pursuant to Section 8(d) of the National Trails System Act, 16 U.S.C. ; 1247 (d). in the event reactivation of rail service upon the Line is necessary, the City of Denton agree- to transfer the Line to MP or other acquiring entity for a sum not to exceed the total of the purchase price of the Line as paid by the City of Denton, plus the total accumulated usage fees paid by the City of Denton to MP up to the date the Line is repurchased by MP. MP may PAGE 2 Agnada ko.._~ r Agnodaitsm f - Dais L~ 4 exercise its option to repurchase the Line from the city of Denton of inty time ante t tog repurchase ninety the9 Line days to the City written of Denton. As a conditIOA of this sale by MP, the City of Denton agrees that, except fol. ed ructa liuton, horima zintedenance and repairs of the rtl%e uctconsta public use of the trail , l trail to be co at shall be solely by non-motorized means. SECTION 7, gEIMBURSEMENT FOR TRBIL D.vFrna F MENT EXP.N.4rc, In the event MP elects to exercise its option to repurchase ` the Line pursuant to the provisions of Section 6 above, MP, for a period not to exceed ten (10) years from closing, agrees to rein- bursa the City of Denton for reasonable trail development expenses incurred by the City of Denton, up to a maximum of ONE HUNDRED TWENTY-FIVE THOUSAND and N01100 DOLLARS ($125,000.00), i SECTION 8. TRACK R MOVA As soon after the final approval of abandonment as practical, MP will, at its sole expense, remove the rail, cross ties, and other personal property on the Line. All bridges and all ballast currently on the Line will remain in place. During the track remuval process, MP will assume full responsibility for the proper disposal of track, ties and other track material removed from the ' Line and will dispose of any material removed from the Line in accordance with existing environmental regulations. SECTION 9, TRAIL CONSTRUCTinr~ ND OP i3A=. The City of Denton will be solely responsible for the costs incurred to convert the Line to a public trail, and will complete the conversion in a timely manner following closing. The City of Denton will also be responsible for all costs associated with operating and maintaining the trail including, but not limited to, security and weed control, except for track removal as specified in Section 8 and restoring the trail as provided in Section 10. SECTION 10. COAL SLltupy pIPELiNES ND FIBER OP=- Present and future operating agreements covering the operation of coal slurry pipelines or fiber optics located along the Line are specifically excluded from thin Agreement. MP reserves the right to locate any fiber optic facilities on the Line. Revenues from any such use of the Line shall accrue solely to MP. In the event MP exercises its right to locate fiber optic facilities on the Line, MP must provide the city of Denton thirty (30) days written notice prior to undertaking any such location, and, PROVIDED FUR- THER, that in the event that such fiber optic facilities unreason- ably interfere with the City of Denton's ability to operate the Line as a public trail, MP or its successors or assigns shall bear PAGE 3 1 fonds No C` ' C Agenealtem ~ Data ~,~~J~1 all reasonable costa associated with restoring the Line to use as a public trail. Nothing specifically contained in this Agreement shall authorize MP or any third party to extend these fiber optic facilities or coal slurry pipelines from their present locations into any other area within the city limits of the city of Denton, nor shall this Agreement authorize MP or any third party to sell, or offer for sale, within the city limits of the City of Denton any goods or services tr,:,nspvrted over such fiber optics facilities or - coal slurry pipelines This provision shall not prohibit MP or any third party from obtaining the authority necessary to extend these fiber optic facilities or coal slurry pipelines or to sell goods or services transported over such fiber optic facilities or coal slurry pipelines within the city limits of the City of Denton. I SECTION 11. ASSIGNMENT OF OPERATING AGRFFMENTS, Within sixty (60) days of Closing, MP will deliver to the City of Denton a list of operating agreements along the right-of-way of the Line and will execute a General Assignment assigning MP's rights and obligations under these operating agreements to the City of Denton. All income collected from these agreements after Closing will accrue to the City of Denton. All income collected from additional operating agreements taking effect after Closing will accrue to the City of Denton. SECTION 12. INDEMNITY FOR EtfVrRONM£NTAL PROBLEMS. To the extent allowed by law, the city of Denton agrees to indemnify MP, its officers, its affiliates and their officers, and MP's agents and employees, against and from any and all liability, loss, damage, claims, demands, costs and expenses, of whatsoever nature, including court costs and attorney's fees, for which the City of Denton may be held liable or responsible under State and Federal environmental laws, and which are associated in whole or in part with the line and realty conveyed by MP to the City of Denton, except for damages resulting from releases made by MP, ±ts succes- sors or assigns, or entities with whom MP had a contractual rela- tionship. To the extent allowed by law, MP agrees to indemnify and hold harmless the City of Denton, its officers, its affiliates and their officers, and the City of Denton's agents and employees, against and from any and all liability, loess, damage, claims, demands, costs and expenses, of whatsoever nature, including court costs and attorney's fees, for which MP, or any third party which has or had a contractual relationship with MP, may be held liable or responsi- ble under state and Federal environmental laws, and which are associated in whole or in part with the line and realty conveyed by MP to the City of Denton. PAGE 4 Agenda/iiem„~ SECTION 13. INDEMNIFICATION OTHER THAN FOR ENVIRONMENTAL PROBLEMS. To the extent allowed by law, the City of Denton agrees to indemnify and hold harmless MP, its officers, its affiliates and their officers, and MP's agents and employees, against and from any and all liability, loss, damage, claims, demands, costs and expen- ses, of whatsoever nature, including court costs and attorney's fees, for which the City of Denton may be held legally liable, and which are associated in whole or in part with the line and realty conveyed by MP to the City of Denton. To the extent allowed by law, MP agrees to indemnify and hold harmless the City of Denton, its officers, its affiliates and their officers, and the City of Denton's agents and employees, against and from any and all liability, loss, damage, claims, demands, casts and expenses, of whatsoever nature, including court costs and f attorney's fees, for which MP may be held legally liable, and which are associated in whole or in part with the line and realty con- veyed by MP to the City of Denton. SECTION 14. TAXES. A. The City of Denton shall be responsible for all taxes and assessments, general and special or otherwise, which may be levied, assessed, or imposed upon the Line by any taxing jurisdiction. B. Subject to the reclassification of the Line to recreational trail use, real property ad valorem taxes, and special assessments, if any, shall be prorated between MP and the City of Denton as of Closing. The City of Denton shall be responsible for paying any and all such taxes, fees or assessments accruing after Closing and MP shall pay or reimburse the City of Denton for the portion there- of, if any, accrued during or based on the time prior to Closings PROVIDED, HOWEVER, for the year 1993, the City of Denton shall only be responsible for the portion of ad valorem taxes on the Line determined by the taxing authority to be due on the Line as a result of the City of Denton's use of the Line as a n+iblic trail. SECTION 15. MISCELLANEOUS PROVISIONS A. Amendment. No modification, addition, or amendments to this Agreement or of the Appendices shall be effective unless and until such modification, addition or amendment is in writing and signed by the parties. B. Assignment. This Agreement shall be binding upon and inure to the benefit of the successors avid assigns of each party. Any assignments of this Agreement in whole or in part shall only be effective with the written consent of MP. MP may exercise its option to assign this Agreement in whole or in part upon giving PAGE 5 Agenda No AgeirallenOi_L-7 Me_ ,_f.1 1C ninety (90) days prior written notification of its intent to assign this Agreement to the City of Denton. by and~con t ued in ccordaan eWith the laws of thehStateeofo?Axas,j and, where applicable, the laws of the United States of America. Venue for its enforcement shall lie in Denton County, Texas, unless mandatory elsewhere, or in the United States District Court sitting in the district and division serving Denton County, Texas. r ~ D. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. E. Survival of Representations and warranties. All represen- tations and warranties made in this Agreement shall survive Closing. oNotices. Any and all notices or other communications required permitted by this Agreement or by law shall be deemed duly served upon the City of Denton when personally delivered to the City Manager of the City of Denton, Texas, or in lieu of such personal service, when the notices are deposited in the United States mail, Certified Return Receipt Requested, addressed to the City Manager of the City of Denton, Texas. Any notice to MP shall be served in the same manner and forwarded to the attention of its Vice President-Law, 1416 Dodge Street, Omaha, Nebraska 68179. G. ftyerabilit,Y, If any term or provision of this Agreement is invalid, illegal, or unenforceable under present or future laws, then in that event it is the intention of the parties hereto that the remainder of the Agreement shall not be affected thereby and shall be valid and shall be enforced to the fullest extent permitted by law. H. Enforcement. To the extent permitted by law, the City of Denton hereby expressly grants permission to MP to sue the City of Denton for the limited purpose of enforcing the terms of this Line Sale Contract, in the event it becomes necessary to do so. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in counterpart originals on the date first herein written. ATTEST., MISSOURI PACIFIC RAILROAD COMPANY ("MP") By. Title, PAGE 6 agenda No 11 otL6 I ATTEST: THE CITY OF 'D TON, TEXAS JENNIFER WALTERS, CITY SECRETARY ("CITY OF DENTON") I By: By: Title: I II APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY j ATTORNEY FOR THE CITY OF DENTON, TEXAS BY: APPROVED AS TO LEGAL FORM: WESLEY S. CODDOU ATTORNEY FOR MISSOURI PACIFIC RAILROAD COMPANY BY: PAGE 7 I ,v. _ Agenda No Agentla~te Cl I EXH~I B BILL 3F SALE MISSOURI PACIFIC RAILROAD COMPANY, a Delaware corporation ("Seller") for in consideration of one Dollar ($1.00) and other valuable consideration does hereby sell, transfer and deliver unto THE CITY OF DENTON, TEXAS, a Texas Municipality ("Buyer"), its suc- cessors and assigns, the following described property, to wit: All ballast and bridges located along Sellerts Denton r Branch between Milepost 721.53 at Denton, Texas, and Milepost 729.5 at Coors, Texas. This Bill of Sale is SUBJECT to: I 1. All of the terms and conditions contained in that certain Line Sale Contract between Seller and Buyer dated , 1993. 2. The terms and conditions contained in the Order from the Interstate Commerce Commission in Docket No. AB-3 (Sub-No. 99X), that was decided April 15, 1992, and served April 27, 1992, that authorized the Seller to discontinue operation over the line of railroad described above. As part of the aforesaid authorization served by the Commission, the Com- mission imposed a rail-bank interim trail use condition pursuant to Section 8(d) of the National Trails System Art, 16 U.S.C. S 1247(d). SELLER, BY THIS INSTRUMENT, MAKES NO WARRANTY OF ANY KIND WHAT- SOEVER AS TO QUALITY, MERCHANTABILITY, OR SALABILITYf IT BEING UNDERSTOOD THAT THE BUYER IS ACQUIRING THE ABOVE PROPERTY IN A "k'HERE IS AND AS IS" CONDITION. IN WITNESS WHEREOF, the Seller has duly executed this Bill of Sale as of the _ day of , 1993. Witness: MISSOURI PACIFIC RAILROAD COMPANY, By., Title., Agenda No ` Agenda!fem r STATE OF TEXAS } ,r] [ 1 ~5 s s LJ L1111~ U L~ COUNTY OF DENTON ) 7 QUITCLAIM DEED MISSOURI PACIFIC RAILROAD COMPANY, a Delaware corporation, Grantor, in consideration of the sum of One Dollar ($1.00) and other valuable consideration, to it duly paid, the receipt whereof is hereby acknowledged, does hereby REMISE, RELEASE and forever QUITCLAIM unto THE CITY OF DENTON, TEXAS, a Texas Municipality, Grantee, and unto ite successors and assigns forever, all of Gran- tor's right, title, interest, estate, claim and demand, both at law and in equity, of, in and to the real estate underlying the Gran- tor's Denton Branch between Milepost 721.53 at Denton, Texas, and Milepost 729.5 at Coors, Texas, as such property (the "Realty") is located in Denton County, Texas, and as more particularly described in Exhibit A, hereto attached and hereby made a part hereuf. RESERVING, unto the Grantor, its successors and assigns, an EASEMENT on, along, across and under the Realty for the construc- tion, maintenance and operation of existing or future coal slurry pipelines or fiber optic facilities, together with the right of ingress and egress thereto, for the maintenance, operation, repair, renewal, reconstruction, and, if necessary, removal of such facilities located on the Realty, RESERVING ALSO unto Grantor, its successors and assigns, -or- ever, all minerals and all mineral rights of every kind and charac- ter now known to exist or hereafter discovered underlying the Realty, including without limiting the generality of the foregoing, oil and gas rights thereto, together with the sole, exclusive and succes- sors and assigns, but without entering upon or s using the surface of the Realty, and in such manner as not to damage the surface of the Realty, or to interfere with the use thereof by the Grantee, its successors and assignst PROVIDED, however, that if mining explora- tion or related activities or operations by the Grantor, or its successors or assigns, result in cost or expenses to the Grantee in connection with Grantee's ownership of the Realty, such cost and expense shall be paid to Grantee within fifteen days of the receipt of the mineral interest owner(s) of a notice of the cost or ex- pense; and PROVIDED, further, that in the event that such mining operations unreasonably interfere with Grantee's use of the Realty, the Grantor, or its successors and assigns, shall bear all reason- ' able costs that may be incurred by Grantee in order to facilitate Grantor's activities. This Deed is made SUBJECT TO: 1. All of the terms and conditions contained in that certain Line sale contract between Grantor and Grantee dated r, 1993. 4jendaNo J. Agenda tem~f~l Date 1L 2 C . 2. The condition that all taxes and all assessments levied upon or assessed against the Realty for any period or time prior to and including the date of this deed shall be paid by the Grantor; that all taxes and all assessments levied upon or assessed against the Realty for any period or time after the date of this deed shall be payable by the Grantee; and that the Grantee assumes and agrees to pay, or to reimburse the Grantor for, if paid by it, all such taxes and assessments for the period of time after the date of this deed. 3. The terms and conditions contained in the Oruer from the interstate Commerce commission in docket No. AB-3 (Sub-No. 99X), that was decided April 15, 1992, and served April 27, 1992, that authorized the Grantor to discontinue operation over the line of railroad described above. As part of the aforesaid authorization served by the commission, the Com- mission imposed a rail-bank interim trail 1-.=e condition pursuant to Section 6(d) of the National Trai.,. System Act, 16 U.S.C. § 1247(d). 4. All other conditions, restrictions, covenants, reserva- tions, easements, superior rights and encumbrances af- fecting the Realty, whether recorded or unrecorded. 5. To the extent allowed by law, GRANTOR agrees to indemnify and hold harmless GRANTEE, its officers, its affiliates and their officers, and GRANTEE's agents and employees, against and from any and all liability, loss, damage, claims, demands, costs and expenses, of whatsoever nature, including court costs and attorney's fees, for which GRANTOR, or any third party which has or had a contractual relationship with GRANTOR, may be held liable or responsi- ble under State and Federal environmental laws, and which are associated in whole or in part with the line and realty conveyed by GRANTOR to GRANTEE. The above indemnification is made by and between GRANTOR and GRANTEE, and shall not be construed to inure to the benefit of any third party or subsequent purchasers, assignees, lessees, nor shall it run with the land. Ag~ndak Agandallerr 1 Dale4~>r THIS QUITCLAIM IS MADE ON AN "AS IS, WHERE IS11 BASIS WITHOUT ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR NATURE WHATSOEVER, EXPRESS OR IMPLIED, CONCERNING THE CONDITION OF THE REALTY, EXCEPT AS OTHERWISE STATED IN THE LINE SALE CONTRACT BETWEEN GRANTOR AND GRANTEE, DATED , 1993, AND GRANTEE HEREBY SPECIFI- CALLY WAIVES ANY IMPLIED WARRANTIES PROVIDED FOR BY TEXAS LAW (IF ANY), INCLUDING ANY AND ALL WARRANTIES REGARDING FITNESS FOR ANY PARTICULAR USE OR PURPOSE WHATSOEVER. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed as of the day of i , 1993. I Attest: MISSOURI PACIFIC RAILROAD COMPANY, Ass stant Secretary ' By Execut ve Ass skant to Executive Vice President- Operation f %I 1 { i ~gendaNa c~ Agvdalleml~ I Date C w DGEMENT STATE OF NEBRASKA ) COUNTY OF DOUGLAS ) ss The foregoing instrument was acknowledged on this day of 1993, before me, a Notary Public duly commissioned, qualified and acting, within and for the said county and State, by R. B. Schoultz and to me personally known, who stated that they were the Executive Assistant to Executive Vice President-operation and Assistant Secretary, respectively, of Missouri Pacific Railroad Company, a Delaware corporation, and were duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said corporation, and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. Notary Publ c My commission expirest Agenda Agencallem_!l _ Date MISSOURI PACIFIC RAILROAD COMPANY Denton County, Texas EXHIBIT "A" To U V Quitclaim Deed Missouri Pacific Railroad Company City of Denton, Texas (Grantor) (Grantee) All right, title and interest in and to the right of way, ballast and bridges of the abandoned portion of the Denton Branch of the Missouri Pacific Railroad Company in Denton County, Texas, as said line extends in a southeasterly direction from a line angleseandiradially,.fr me he centerline of the main track a of right railroad's Whitesboro subdivision, as presently constructed and operated, to a point 718.70 feet southerly of the north line of H. H. Swisher Survey, as measured along the centerline of said aban- doned line, said point being at engineering station 1509+56.30 in, over and across the following legal subdivisions: Railroad Addition to the City of Denton (H. SiFCO - H.R.) Jasper Addition to the City of Denton (H. Sisco - H.R.) Moores Addition to the City of Denton (H. Sisco - H.R.) Alex Robertson Addition to the City of Denton (A. Hill - H.R.) S. C. Hiram - H.R. W. R. Teagus - H.R. Mary L. Austin - H.R. Section 52 - N.E. & P.R.R. Co. J. S. Taft - H.R. Joseph White - H.R. Section 46 - M.E. & P.R.R. Co. D. Lambert - H.R. ~J M.E.P. & P.R.R. Co. - H.R. Gideon Walter - H.R. S. H. Morgan - H.R. L. H. Bates - H.R. J. P. Walton - H.R. H. Garrison - H.R. T. W. Jenkins - H.R. Thos. White Sr. - H.R. Thos. White Survey H. H. Swisher Survey SiscExce - lying pH iRng theref outside lines parcels of land situate in H. distant on each side of the centerline of said i abandoned track. Also, excepting therefrom those certain parcels of land as heretofore acquired by Dallas & Wichita Railroad company (predeces- sor to Missouri Pacific Railroad Company) from W. V. Pockrus and wife and E. A. Garrison and wife by warranty deeds dated August 23, 1890, recorded August 26, 1890 in Book 44 at Pages 327 and 330, respectively, in the records of Denton County, Texas. r Agenda No,. ~1..- AgeT ited:t4-- - Date ~ _ ACKNOWLEDGEMENT STATE OF NEBRASKA ) ss COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged on this day of --j 19930 before me, a Notary Public duly commissioned, r k qualified and acting, within and for the said County and State, by and , to ne personally known, who stated that they were the and Assistant Secretary, respectively, of Missouri Pacific Railroad Company, a Delaware corporation, and were duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said corporation, and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. Notary Public My commission expires: It %WPWI W.41 PAC 1 HANDOUT TO COUNCIL - 6-29-93 OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Jerry E. Drake, Jr., Assistant City Attorney SUBJECT: Correction to Quitclaim Deed, Purchase of Rail Corridor DATE: June 29, 1993 i Due to an error caused by retyping a facsimile copy of the deed under tight time constraints, a line was left out of our previous draft of tho quitclaim deed for Vie Missouri Pacific rail corridor purchase. According to this prior draft, in the sixth line of the third paragraph of the first page, Missouri Pacific reserved the . sole, exclusive and perpetual right to explore for, remove and dispose of said successors and assigns. . . .01 Also changed is the last sentence of item 5 on the second page of the deed. This amendment does not alter the intent of the provision, but it does use language more acceptable to Missouri Pacific's attorney. Tha property description to the deed (Exhibit A) was also reprinted to correct four misspellings and clarify the legal description in conformity with feedback we received from Roger Wilkinson, our Right-of-Way agent. The amendment also incorporates abstract numbers to facilitate future research. By virtue of these last minite changes all provisions of this con- tract should be agreeable to all parties. Respectfully Submitted, f.arry E. Drake Jr. JEDJr.:js Attachment ` pc: Lloyd V. Harrell, City Manager Wes Parker, Missouri Pacific Railroad Company Rich Dlugas, Director of Parks and Recreation 1 10rdicatcd to Quality Scrvke' Honorable Mayor and Members of the City Council June 29, 1993 Page 2 APPROf)n / L Deb Dr a o tch i i I i v I EXHIBIT B GILL OF SALE MISSOURI PACIFIC RAILROAD COMPANY, a Delaware corporation ("Seller,i) for in consideration of One Dollar ($1.00) and other valuable consideration does hereby sell, transfer and deliver unto THE CITY OF DENTON$ TEXAS, a Texas municipality ("Buyer"), its suc- cessors and assigns, the following described property, to wit: All ballast and bridges located along Seller's Denton Branch between Milepost 721.53 at Denton, Texas, and Milepost 729,5 at Coors, Texas. This Bill of Sale is SOJECT to. 1. All of the terms ani conditions contained in that certain Line Sale Contract between seller and Buyer dated , 1993. 2. The terms and conditions contained in the Order from the Interstate Commerce Commission in Docket No. AB-3 (Sub-No. 99X), that was decided April 15, 1992, and served April 27, 1992, that authorized the Seller to discontinue operation over the line of railroad described above. As part of the aforesaid authorization served by the Commission, the Com- mission imposed s rail-bank interim trail use condition pursuant to Section 8(d) of the National Trails System Act, 16 U.S.C, S 1247(d). SELLER, BY THIS INSTRUMENT, WES NO WARRANTY OF ANY KIND WHAT- SOEVER AS TO QUALITY, MERCHANTABILITY, OR SALABILITY; IT BEING UNDERSTOOD THAT THE BUYER IS ACQUIRING THE ABOVE PROPERTY IN A "WHER$ IS AND AS IS" CONDITION. IN WITNESS WHEREOF, the Seller has duly executed this Bill of Sale as of the day of , 1993. Witness., MISSOURI PACIFIC RAILROAD COMPANY, By: Title: EXHIBIT B - PAGE 1 STATE OF TEXAS ) ss COUINTY OF DENTON ) 92ITCLAIM DEED MISSOURI PACIFIC RAILROAD COMPANY, a Delaware corporation, Grantor, in consideration of the sum of One Dollar ($1.00) and other valuable consideration, to it duly paid, the receipt whereof is hereby acknowledged, doer hereby REMISE, RELEASE and forever QUITCLAIM unto THE CITY OF LENTON, TEXAS, a Texas Municipality, Grantee, and unto its successors and assigns forever, all of Gran- tor~s right, title, interest, estate, claim and demand, both at law and~in equity, of, in and to the real estate underlying the Gran- for s Denton Branch between Milepost 721.53 at Denton, Texas, and Milepost 729.5 at Coors, Texas, as such property (the "Realty") is located in Denton County, Texas, and as more particularly described in Exhibit A, hereto attached and hereby made a part hereof. RESERVING, unto the Grantor, its successors and assigns, an EASEMENT on, along, across and under the Realty for the construc- tion, maintenance and operation of existing or future coal slurry pipelines or fiber optic facilities, together with the right of ingress and egress thereto, for the maintenance, operation, repair, renewal, reconstruction, and, if necessary, removal of such facilities located on the Realty. RESERVING ALSO unto Grantor, its successors and assigns, for- ever, all minerals and all mineral rights of every kind and charac- ter now known to exist or hereafter discovered underlying the Realty, including without limiting the generality of the foregoing, oil and gas rights thereto, together with the sole, exclusive and perpetual right to explore for, remove and dispose of said minerals by any means or methods suitable to the Grantor, its successors and assigns, but without entering upon or using the surface of the Realty, and in such manner as not to damage the surface of the Realty, or to interfere with the use thereof by the Grantee, its successors and assigns; PROVIDED, howover, that if mining explora- tion or related activities or operations by the Grantor, or its successors or assigns, result in cost or expenses to the Grantee in connection with Grantee's ownership of the Realty, such cost and expense shall be paid to Grantee within fifteen days of the receipt of the mineral interest owner(s) of a notice of the cost or ex- pense; and PROVIDED, further, that in the event that such mining , operations unreasonably interfere with Grantee's use of the Realty, the Grantor, or its successors and assigns, shall bear all reason- able costs that may be incurred by Grantee in order to facilitate Grantor's activities. EXHIBIT B - PAGE 2 i i This Deed is made SUBJECT TO: 1. All of the terms and conditions contained in that certain Line Sale contract between Grantor and Grantee dated , 1993. 2. The condition that all taxes anu all assessments levied upon or assessed against the Realty for any period or time prior to and including the date of this deed shall be paid - by the Grantor; that all taxes and all assessments levied upon or assessed against the Realty for any period or time after the date of this deed shall be payable by the Grantee; and that the Grantee assumes and agrees to pay, or to reimburse the Grantor for if paid by it, all such taxes and assessments for the period of time after the date of this deed. 3. The terms and conditions contained in the Order from the Interstate Commerce Commission in Docket No. AB-3 (Sub-No. 99X), that was decided April 15, 1992, and served April 27, 19920 that authorized the Grantor to discontinue operation over the line of railroad described above. As part of the aforesaid authorization served by the Commission, the Com- mission imposed a rail-bank interim trail use condition pursuant to Section 8(d) of the National Trails System Act, 16 U.S.C. S 1247(d). 4. All other conditions, restrictions, covenants, reserva- tions, easements, superior rights and encumbrances af- fecting the Realty, whether recorded or unrecorded. To the extent allowed by law, GRANTOR agrees to indemnify and hold harmless GRANTEE, its officers, its affiliates and their officers, and GRANTEE's agents and employees, against and f.ro:n any and all liability, loss, damage, claims, demands, costs and expenses, of whatsoever nature, includ- ing court costs and attorney's fees, for which GRANTOR, or +any third party which has or had a contractual relationship with GRANTOR, may be held liable or responsible under State aiV, Federal environmental laws, and which are associated in whale ,);c in part with the line and realty conveyed by GRANTOR to GRANTEE. The above indemnification is enforce- E,blm between GRANTOR and GRI.NTEE only, and shall not inure tc, the benefit of any third party, including without ' limitation, subsequent purchasers, assignees, or lessees, „lid ehall not run with the land. EXHIBIT B - PAGE 3 THIS QUITCLAIM IS MADE ON AN "AS IS, WHERE IS" BASIS WITHOUT ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR NATURE WHATSOEVER, EXPRESS OR IMPLIED, CONCERNING THE CONDITION OF THE REALTY, EXCEPT AS OTHERWISE STATED IN THE LINE SALE CONTRACT BETWEEN GRANTOR AND GRANTEE, DATED 1993, AND GRANTEE HEREBY SPECIFI- CALLY WAIVES ANY IMPLIED WARrN.NTIES PROVIDED FOR BY TEXAS LAW (IF ANY), INCLUDING ANY AND ALL WARRANTIES REGARDING FITNESS FOR ANY PARTICULAR USE OR PURPOSE WHATSOEVER. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed as of the day of , 1993. k Attest: MISSOURI PACIFIC RAILROAD COMPANY, By. Assistant Secretary ey Executive Assistant to Executive Vice President- Operation k 1 I EXHIBIT B - PAGE 4 1 y ACKNOWLEDGEMENT STATE OF NEBRASKA ) ) ss COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged on this day of 19930 before me, a Notary Public duly commissioned, qualified and acting, within and for the said County and State, by i R. B. Schoultz and to me personally known, who stated that they were the Executive Assistant to Executive Vice President-Operation and Assistant Secretary, respectively, of Missouri Pacific Railroad Company, a Delaware corporation, and were duly authorized in their respective capaci- ties to execute the foregoing instrument for and in the name and behalf of said corporation, and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses any? purposes therein mentioned and set forth. 'I Notary Public My commission expiresi EXHIBIT B PAGE 5 I MISSOURI PACIFIC RAILROAD COMPANY Denton County, Texas EXHIBIT "A" To Quitclaim Deed i Missouri Pacific Railroad Company (Grantor) City of Denton, Texas (Grantee) All right, title and interest in and to the right of way, ballast and bridges of the abandoned portion of the Denton Branch of the Missouri Pacific Railroad Company in Denton County, Texas, as said line extends in a southeasterly direction from its point of beginning, said point being opposite railroad engineering station 11040+90 of said railroad's Whitesboro Subdivision and being in line parallel with and easterly 50.00 feet, as measured at right angles and radially, from the centerline of the main track of said subdivision, as presently constructed and operated, to a point 718.70 fast southerly of the north line of H. H. Swisher Survey, as measured along the centerline of said abandoned line, said point being at engineering station 1509+56.3, in, over and across the following legal subdivlsionsi Railroad Addition to the City of Denton (H. Sisco - H.R. Abet. 11844) Jasper Addition to the City of Denton (F. Sisco - H.A. Abet. 11844) Moores Addition to the City of Denton (F.. Sisco - H.R. Abet. 1180) Alex Robertson Addition to the City of Centon (A. Hill - H.R. Abet. 623•) S. C. Hiram - H.R. Abet. 616• W. R. Teague - H.R. Abet. 1266• Mary L. Austin - H.A. Abet. 44 Section 52 - M.E.P. & P.A.A. Co. (Robert H. Hopkins Abet. 16944) J. S. Taft - H.R. Abst. 12564 ! Joseph White - H.R. Abet. 1433+ Section 46 - M.B.P. & P.A.A. Co. (David Hough Abet. 6464) D. Lambert - H.R. Abst. 7844 Section 47 - M.E.P. & P.R.R. Co. - H.R. Abet. 9504 Oideon Walker - H.R. Abet. 13308 S. H. Morgan - H.R. (Section 39 - M.E.P. & P.P.R. Co. Abet, 9110 L. H. Bates - H.R. Abet. 2044 J. P. Walton - H.R. Abet. 1389• H. Garrison - H.A. Abet. 507A T. W. Jenkins - H.A. Abet. 6874 Thos. White Sr. - II.R. Abet. 13764 Thos. White Survey Abet. 13754 H. H. Swisher Survey Abet. 12204 .Names and/or Abstract tics. from State of Texas General Land Office map compiled 1945 i Excepting therefrom all thoss parcels of land situate in H. Sisco - H.R. lying outside lines parallel with and 50.00 feet distant on each side of the centerlinA of said abandoned track. Also, excepting therefrom those certain parcels of land as heretofore acquired by Dallas & Wichita Railroad company (predecessor to Missouri Pacific 1 Railroad Company) from W. V. Pockrue and wife and E, A. Garrison and wife by warranty deeds dated August 23, 18900 recorded August 26, 1890 in Book 44 at Pages 327 and 330, respectively, in the records of Denton County, Texas. 1i EXHIBIT B - PAGE 6 ~h i I I I ACKNOWLEDGEMENT STATE OF NEBRASKA ) ) ss COUNTY OF DOUGLAS ) The foregoing instrument was acknowledged on this day of 1993, before me, a Notary Public duly commissioned, qualified and acting, within and for the said County and State, by i and tome personal- ly known, who stated that they were the and Assistant Secretary, respectively, of Missouri Pacific Railroad Compr.ny, a Delaware corporation, and were duly authorized in their respective capacities to execute the foregoing instrument for and In the name and behalf of said curporation, and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. Notary Public My commission expires3 E1\WPD0C8\K\M28PAC.D4 EXHIBIT B - PAGE 7