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379 Yelm Branch Line RailwayCITY OF YELM RESOLUTION NO. 379 A RESOLUTION To state the guiding principles for the acquisition and use and operational oversight of the railroad branch line, the Yelm Branch Line, currently owned by the Burlington Northern Santa Fe Railway Company; to create a Rail Advisory Committee to advise the city on the use, operation and development of the acquired property; and to provide guidance to the Director of Public Works on how to proceed; and WHEREAS, The Burlington Northern Santa Fe Railway (BNSF) currently operates over a railroad corridor called the Yelm Branch Line which extends from Milepost 8.55 near Lakeview on the north to mile post 25.55 in the City of Yelm on the south and has indicated its interest in discontinuing rail service over at least a part of that branch line; and WHEREAS, The City of Yelm has indicated its interest in acquiring all property interests now held by the BNSF in its Yelm Branch Line for general public welfare, economic development and investment purposes; and WHEREAS, The City of Roy has expressed its interest in participating with the City of Yelm in setting public policy for the use and development of the BNSF Yelm Branch, insofar as such use operation and development affects the City of Roy; and WHEREAS, The Yelm Chamber of Commerce has actively been supporting the public acquisition of the Yelm branch; and BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YELM, THE MAYOR CONCURRING: Section 1. The Council endorses the following guiding principles in acquisition, operation and development of the BNSF Yelm Branch Line (formerly known as the Northern Pacific's Prairie Line): All BNSF property interests its Yelm Branch Line, should be acquired by the City of Yelm and after such acquisition the line of railroad shall be referred to as "The Prairie Line." The preservation and vitality of businesses located along the BNSF's Yelm Branch Line should be preserved, and additional businesses should be encouraged to locate along the line. The exploration and development of commuter rail and other passenger uses in conjunction with development of the acquired property should be encouraged. The interests of the City of Roy and its citizens will be considered in any use or development of the BNSF's Yelm Branch line, and appropriate interlocal agreements or contracts may be entered into by the two Cities to achieve and carry out mutual interests and apportion ownership, as necessary. RESOLUTI/RES.98.RES379.DOC j.. ~. Section 2. The Prairie Line Rail Advisory Committee. The Prairie Line Rail Advisory Committee is established to assist and advise the City of Yelm in acquiring, operating and developing the acquired rail property, "The Prairie Line." (a) The Committee shall be composed of the Mayor of Yelm, the Mayor of Roy, or their designees, and three persons appointed by the City of Yelm and two person appointed by the City of Roy, to serve at the pleasure of the respective appointing Mayor. The Mayor of Yelm may designate one of the appointed members to serve as chairperson: (b) The committee members will receive no additional compensation, except that the City may reimburse any travel or administrative expenses of the appointees out of the marketing fund established herein, under the guidelines established by the City. Section:3. Rail Marketing Fund. The Prairie Line Rail Advisory Committee shall advise the Public,Works Director on an annual marketing budget as determined by the City of Yelm of up to 1/2 of 1% of any rents, profits or other payments received by the City of Yelm for use or uses of any part of the Prairie Line. This fund to be created annually as part of the operating budget of the Department of Public Works, and its use shall be subject to review and audit. The fund shall be usedrto promote the use of the Prairie Rail Line. Section 4. The Director of Public Works shall: (a) Negotiate the acquisition of BNSF's Yelm Branch Line and appurtenant property with appropriate BNSF officials and submit to the council a proposal for such acquisition. (b) Develop in consultation with the Prairie Line Rail Advisory Committee created herein, and submit to the Council for approval, a proposed rail policy which will encourage and promote freight and commuter rail service, provide for safe and economical development and use of all property in the acquired branch line, and prepare a prudent and business-like property management plan for the acquired property. (c) Assist the Prairie Line Rail Advisory Committee in preparing an appropriate budget for its operating expenditures and other such uses of the rail Marketing Fund created in Section 3, and, as part of the Public Works' normal budgeting process. (d) Create a proposed bid requirement to solicit appropriate offers from competent rail operators to contract with the City for engaging in common and contract carrier freight rail service over the Prairie Line. The qualifications for a contract rail operator should emphasize financial responsibility and rail operation experience, and ability to meet current rail customer's transportation requirements. RESOLUTI/RES.98/RES379.DOC 2 . ~~~ (e) Develop an Operating Agreement which the City may use to engage the services of a competent rail operator, or operators, ensuring that such agreement will provide an operator or operators who will meet the reasonable service requests of businesses who desire common carrier rail service, that the City will remain in overall control of the properties, and that such operators will be able to bear the full expense and risk attendant with such rail operations. (f) Develop a program of active oversight of future rail operations and other property uses in the Prairie Line to ensure all such uses are in compliance with contract, safety and public use requirements. j (g) Prepare and file on behalf of the City any documents necessary to carry out the acquisition and operation of The Prairie Line with the Surface Transportation Board, the Federal Raikoad Administration, the Washington Utilities and Transportation Commission, the Washington Department of Transportation, the .Association of American Railroads, or any similar agencies or organizations. Section 5. The Council supports all progressive and safe-uses of the acquired property which will benefit the general public and directs the Mayor to explore all reasonable opportunities for The Prairie Line to yield a return on the City's investment; Provided, however, that such uses must be consistent, and not interfere, with the general acquisition purpose of providing freight and passenger rail service, so long as there is a reasonable demand or potential need for such services. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Yelm, that RESOLUTION 379 is hereby approved and adopted. ADOPTED this ~ day of November 1998. KA M. WOLF, MAY ATTEST: J~~ ~~ A ~ S P. BENNICK, CITY CLERK RESOLUTI/RES.98/RES379.DOC 3