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06-G-Fannin Rail DistrictAGENDA INFORMATION SHEET PROJECT: Consider a resolution supporting the efforts of the Fannin Rail Transportation district to continue rail operations along feeder tracks, including a four mile portion inside the city of Paris, and extending in a westerly direction. BACKGROUND: The City of Paris was contacted by the Fannin Rail District and D&R Railroad soliciting the support of the City of Paris in the form of a formal resolution of the City Council with regard to continuation of rail operation extending westward from the city of Paris. Specifically, the issue is whether or not rail service can be continued upon the existing tracks owned by the Union Pacific Railroad which extend westerly from the city of Paris to Bells. Maps indicating the route in question are included in the agenda package materials. Currently, it is the understanding of the City that Union Pacific intends to abandon the track in question and presumably remove the existing rail, so that Paris will be even further isolated with respect to potential rail service. A resolution was presented to the City Council for its consideration at the February 12, 2001, meeting. At that time, the resolution presented to Council contained language requested by the Fannin Rail District. Since that original Council meeting, meetings have been held involving various representatives of the City, the Chamber of Commerce, the Fannin Rail District, D&R Railroad, States Railroad (parent company for Kiamichi Railroad), and the Union Pacific Railroad. Issues have been discussed with regard to what will ultimately happen to the track in question and the perspective of each entity and their ability to affect what happens to the track. As a consequence of those meetings, additional changes to the proposed resolution have been suggested by both the Chamber of Commerce and States Railroad (Kiamichi Railroad). While some of the suggested changes would only serve to clarify certain portions of the resolution, other changes could have a significant impact on the intended purpose of the resolution from the perspective of the original requestor, the Fannin Rail District. In an effort to advise Council as succinctly as possible, the agenda package includes the original draft resolution presented in February (which includes changes proposed by the Fannin Rail District), and a markup resolution which shows in a single document the changes originally incorporated at the request of the Fannin Rail District, the changes proposed by the Chamber of Commerce, and the changes proposed by States Railroad. DESCRIPTION: City Council should review carefully the changes proposed by each of the respective parties in this matter, as well as the supporting documentation included with the agenda package. Thereafter, Council should direct City staff as to the exact language which Council deems appropriate for inclusion in the final resolution. Presumably, the representatives of the respective parties on this issue will be in attendance at the City Council to present their concerns with regard to the language which would be included, omitted, or substituted in the resolution. LOCATION: The railroad line in question would include four miles of track within the city limits of the city of Paris, as well as additional trackage extending west of Paris all the way to Bells, Texas. RECOMMENDED ACTION: Consider appropriate language for inclusion in a resolution, and approve that resolution with the appropriate language. STAFF CONTACT: Larry W. Schenk, City Attorney; and Michael E. Malone, City Manager COUNCIL DATE: Consider a resolution containing appropriate language as approved by City Council at City Council's March 26, 2001, special Council meeting. ADDITIONAL MATERIALS: See materials provided by the Fannin Rail District, the Lamar County Chamber of Commerce, and States Railroad as well as the prior resolution presented to City Council for its approval and the markup resolution showing the changes proposed by the respective parties. [~tat, e Rail a~d~iQn~] [Sta.~e P~il ~eletiPnl] RESOLUTION NO. [WORK-UP RES] A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, SUPPORTING THE EFFORTS OF THE FANNIN RURAL RAIL TRANSPORTATION DISTRICT TO CONTINUE RAH. OPERATIONS AND TRANSPORTATION SERVICES ALONG FEEDER TRACKS WITHIN LAMAR COUNTY AND PARIS, TEXAS, AND ESPECIALLY WITH REGARD TO TRACKS CURRENTLY IN THE PROCESS OF [DtS-POSA-Iz ABANDONMENT] BY THE UNION PACIFIC RAILROAD; AUTHORIZING THE MAYOR AND CITY MANAGER TO PURSUE ALL APPROPRIATE AVENUES IN EXPRESSING THE SUPPORT OF THE CITY COUNCIL FOR THE EFFORTS OF THE RAIL DISTRICT; AUTHORIZING THE DISTRIBUTION OF COPIES OF THIS RESOLUTION TO APPROPRIATE FEDERAL AND STATE GOVERNMENTAL OFFICIALS AS A FORMAL EXPRESSION OF SUPPORT BY THE CITY COUNCIL OF THE CITY OF PARIS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the public and private sector in Lamar County, Texas, including the City of Paris City Council, Lamar County Commissioners Court, the Lamar County Chamber of Commerce, the Paris Economic Development Corporation, and committed citizens and volunteers, have expended considerable effort, time, and funding in the pursuit of enhanced economic development in Lamar County, With special emphasis on industrial development and improvement of recreational opportunities; and, WHEREAS, transportation limitations, such as the absence of an adjacent interstate highway s,,stem the closest be~n~ almost fifty miles away, [a~,,~ ~,,,~ ~,,~ j ...... ,r~--~ ~'~ ¥ -~"' ?_' /2'_ _~ ...... ,~ ...... -' ..... ::~-~,~h-' 2~c~d, and the prevxous loss of ra.%l 1.1.nes serva, ng P'arl. s from tD.e SOUr. P. anct eas~t .;.,aa. vx %j the Kiamichi Railroad as the only viable railroad serving Paris-; and ]~[ ........... "'-' ...... '°'""~ '"' '~"'°'"~"'' P&c",;,'t&;r,,~,~ $~::~,G &cea; and, ~li~~~ ail ~sp z%a~i -~ ..... ~ ..... ~ ...... ~ ...... ~ ........... ................ ar~a]; and WHEREAS, the small town atmosphere and beautiful lakes in the area provide a quality of life attractive to industry, as well as to residents of nearby metropolitan areas; and, WHEREAS, a rail district, the Fannin Rural Rail Transportation Dist~ct ("the Rail District") recentlyhasbeenformedforthepurposeof [d~v~l~iT'g za~l &~-ica ol~t&,£n~J rail line being abandoned by Union ?acific and for the purpose of preserving rail service) for both industry and recreational purposes among the Paris, Honey Grove, and Bonham communities; and, .............. · .. --..~o-'-,-.'s,,~e'.'.:~ ............................ .:.~z::~oz~:~_~::~:~:~,i~:~o:~=.z...~o.~...~-.~o."~'~'~"~.~-' °.~ WHEREAS, this ~lill~l~r, county rail service, with potential connections to major metropolitan areas, would constitute an essential and significant component to enhance growth and growth planning for the area; and, WHEREAS, the Union Pacific Railroad has expressed its intention to ~ma~rs] the current forty-five mile railway line from Bonham to Paris, thereby affording the ity for n ofmchrmlhnebvt-~ a RatlD~stnct, [~ ........... [~REAS, the operation of the inter-county rail service by the Rail District would enhance the transportation infrastructure. system in the Paris area]; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Council of the City of Paris, Paris, Texas, strongly supports the efforts of the Rail District to acquire the [a~.,~,~ ~ Union Pacific rail line' being abandoned] from Bonham to Paris, s~ronEly suppo~s ~he effoms or,he Rad D~s~nc~ ~o develop [ ........ 3 .... __, ................ ~ ...... ~-'- ra~l~-ayJ the rail line] ~oe~ance econo~c dev~lopmem: ~mprove r~crem~on~ ac~w~t{es, ~d EeneraHy ~mprove the Pa~s and Lamar Coumy community. Sec~i~ 3. Thru ~he Mayor and C~y Manager be, and ~h~y are h~reby~ authorized to unde~e ~y ~d all effo~s reasonably necessa~ to see thru stme legislmive and federal congressional and appropriate ad~nistrative officials are advised of the strong suppo~ of the City of Paris for the proposed railway acquisition by the ~1 District. Section 4. That this resolution shall be filed ~th any and all appropriate officials as the official, form~ statemem of position by the City Council of the City of Paris regarding cominuation of rail se~ice to the City of P~s as described herein and to suppo~ all similar i~tiatives which would enhance transpo~ation and r~l se~ice withn the City of Paris. Section 5. That this resolution shall be effective ~om and after its date of passage. PASSED AND APPROVED this 12th day of March, 2001. Michael J. Pfiester, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney [TABLED 2/12/01 ] RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, SUPPORTING THE EFFORTS OF THE FANNIN RURAL RAlL TRANSPORTATION DISTRICT TO CONTINUE RAIL OPERATIONS AND TRANSPORTATION SERVICES ALONG FEEDER TRACKS WITHIN LAMAR COUNTY AND PARIS, TEXAS, AND ESPECIALLY WITH REGARD TO TRACKS CURRENTLY IN THE PROCESS OF DISPOSAL BY THE UNION PACIFIC RAILROAD; AUTHORIZING THE MAYOR AND CITY MANAGER TO PURSUE ALL APPROPRIATE AVENUES IN EXPRESSING THE SUPPORT OF THE CITY COUNCIL FOR THE EFFORTS OF THE RA1L DISTRICT; AUTHORIZING THE DISTRIBUTION OF COPIES OF THIS RESOLUTION TO APPROPRIATE FEDERAL AND STATE GOVERNMENTAL OFFICIALS AS A FORMAL EXPRESSION OF SUPPORT BY THE CITY COUNCIL OF THE CITY OF PARIS; MAKING OTHERFINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the public and private sector in Lamar County, Texas, including the City of Paris City Council, Lamar County Commissioners Court, the Lamar County Chamber of Commerce, the Paris Economic Development Corporation, and committed citizens and volunteers, have expended considerable effort, time, and funding in the pursuit of enhanced economic development in Lamar County, with special emphasis on industrial development and improvement of recreational opportunities; and, WHEREAS, transportation limitations, such as the absence of an adjacent interstate highway system, the closest being almost fifty miles away, and the only viable rail service to the city of Paris being the Kiamichi Railroad, which serves only a limited north and south route, have historically and consistently been a limitation on the success of the economic development efforts in the city of Paris/Lamar County area; and, WHEREAS, existing local industry has expressed interest in using rail service as an alternative and less expensive means of transporting raw materials, components, and finished products; and, WHEREAS, viable rail transportation service would have a significant positive impact on future economic development efforts to attract new industry to the area; and, WHEREAS, the small town atmosphere and beautiful lakes in the area provide a quality of life attractive to industry, as well as to residents of nearby metropolitan areas; and, WHEREAS, a rail district, the Fannin Rural Rail Transportation District ("the Rail District") recently has been formed for the purpose of developing rail service for both industry and recreational purposes among the Paris, Honey Grove, and Bonham communities; and, WHEREAS, RailAmerica, operators of Texas & North Eastern and Dallas, Garland & Northeastern railroads between Bells, Texas and Sherman, Denison, and Greenville, Texas are currently using tracks owned and leased from Union Pacific; and, WHEREAS, RailAmerica has agreed to handle Fannin Rail District carloads between Bells and Sherman, Denison and Greenville to affect interchanges with BNSF, LIP, and DCS; and, WHEREAS, RailAmerica could be prevented from performing such interchanges for Fannin Rail District because handling these loads could exceed their existing operation agreements with Union Pacific; and, WHEREAS, this intm-county rail service, with potential connections to major metropolitan areas, would constitute an essential and significant component to enhance growth and growth planning for the area; and, WHEREAS, the Union Pacific Railroad has expressed its intention to dispose of the current forty-five mile railway line from Bonham to Paris, thereby affording the opportunity for purchase of such rail line by the Rail District, with the exception that the railroad has reserved a four mile segment within the city limits within the city of Pads and such four mile segment would be a necessity for the Rail District to develop a rail system and fully connect the entire area; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Council of the City of Paris, Paris, Texas, strongly supports the efforts of the Rail District to acquire the apparently surplus forty-five mile railway from Bonham to Paris, including acquisition of that four mile segment within the city of Paris intended to be reserved by the Union Pacific including allowing RallAmerica unfettered and unrestricted ability to handle Fannin Rail District carloads to and from Sherman, Denison, and Greenville for purpose of interchange with BNSF, UP, and KCS, and strongly supports the efforts of the Rail District to develop said forty-five mile railway and other adjacent trunk railways to enhance economic development, improve recreational activities, and generally improve the Pads and Lamar County community. Section 3. That the Mayor and City Manager be, and they are hereby, authorized to undertake any and all efforts reasonably necessary to see that state legislative and federal congressional and appropriate administrative officials are advised of the strong support of the City of Paris for the proposed railway acquisition by the Rail District. Section 4. That this resolution shall be filed with any and all appropriate officials as the official, formal statement of position by the City Council of the City of Paris regarding continuation of rail service to the City of Paris as described herein and to support all similar initiatives which would enhance transportation and rail service within the City of Paris. Section 5. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 12th day of February, 2001. ATTEST: Michael J. Pfiester, Mayor Mattie Cunningham, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney