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File Number: 18-650 <br />Legal Analysis <br />The City Attorney reviewed the Crossing Agreement and approves the document as to form. <br />Fiscal Impacts <br />The Crossing Agreement with Union Pacific obligates the City to pay $381,506 for easements <br />and rail improvements, subject to adjustment for actual costs once work is complete. This amount <br />includes $1,700 for easements (or $60.71 per square foot) plus $379,806 in improvement costs. <br />To fund the City’s obligation under the Crossing Agreement, the City will rely on funds deposited <br />into an escrow account by SLTC where the Development Fee for Street Improvements (DFSI) for <br />Phases 1 and 2 have been paid. The funds are governed by an Escrow Agreement between the <br />City and SLTC dated February 9, 2017, as amended on August 7, 2018. <br />The current escrow account balance is $1,336,932.50 not including accrued interest. In addition <br />to paying Union Pacific for its costs, the escrow agreement will also be used to disburse fee <br />credits for eligible street improvements performed by SLTC. The fee credit payment will be in <br />conformance with San Leandro Municipal Code Section 7-11-125 which provides: <br />“A credit may be given for street construction costs where street widening is required in <br />excess of fourteen (14) feet. The credit shall be equal to the standard qualities and cost, <br />as determined in the sole and absolute discretion of the City Engineer, to construct street <br />improvements in excess of fourteen (14) feet.” <br />Escrow account disbursements are expected as follows: <br />Current escrow account balance (not including accrued interest):$1,336,932.50 <br />Previous Agreement with Union Pacific for Alvarado Street:<$589,460.00> <br />Amount not eligible for fee credits (I-880/Marina Fee):<$368,659.50> <br />Agreement with Union Pacific for Davis Street Crossing:<$381,506.00> <br />Escrow Account balance (eligible for fee credits):<$2,693.00> <br />Since the escrow account will have a negative balance according to these expected <br />disbursements, SLTC will be responsible for funding any shortfall. Staff believes that the amounts <br />indicated in the two Union Pacific agreements (previous Alvarado Street and current Davis <br />Street) are conservative estimates. Since Union Pacific will invoice their work based on actual <br />costs, it is expected that there will be no shortfall. <br />Budget Authority <br />No City funds will be expended to pay for rail crossing improvements governed by the Crossing <br />Agreement with Union Pacific. Instead, funds will be disbursed from an account governed by the <br />Escrow Agreement between the City and SLTC. Any funding shortfall will be paid by SLTC. <br />Page 4 City of San Leandro Printed on 1/17/2019