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HomeMy WebLinkAboutItem 10 - The T AgreementITEM # /0 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: MAY 15, 2007 SUBJECT: THE T AGREEMENT Attached is a "marked up" version of The T Agreement for your review prior to Tuesday night's scheduled approval of the agreement so that you can clearly see the changes (based upon Council and The T Board input) since the May 1, 2007 workshop. A clean copy of the agreement will be provided on Tuesday night. I have also attached the May 1St Major Points memo. While a few of the items have changed, the majority have not so this remains good summary information. Please let me know if you have any questions. May 10, 2007 (1:31 PM) 'GT E R A S MEMORANDUM CITY OF GRAPEVINE TEXAS TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER /S DATE: MAY 1, 2007 SUBJECT: MAJOR POINTS OF THE T INTERLOCAL AGREEMENT The following are the major deal points in the agreement that will be reviewed this evening with the Council and the 4B Board. The attorneys are continuing to work together on finalizing this agreement. We look forward to your input tonight and should changes be necessary, we will work to accomplish them prior to the May 15t" meeting. Section 1. 1.1.8 Project - establishes that a part of the project is an inter -city trolley service. The project will pay for some level of trolley service between the major destination areas in Grapevine in addition to commuter rail service. 1.1.9 Sales Tax - defines that the sales tax to be paid in this agreement is the 3/8th of a cent in 4B sales tax revenue. Further, that funds attributable to a Chapter 380 grant (the Henry Schein deal) are exempt. 1.2.4 a -e Exhibits - are being completed by The T staff this week and will be included in the packet on May 15, 2007. 1.2.4 a -I Design Standards - all city standards/ordinances are to be followed in the construction of the stations in Grapevine. Section 2. 2.1 Budget - Updated quarterly and cannot be changed without the mutual agreement of the parties. Further, the City's TRE and NETS payments will be made from this budget. 2.2.1 Grapevine Funds - Grapevine will receive and transfer, within 30 days of receipt, of the funds to The T. The T will provide a quarterly accounting of the Project Funds and the Grapevine Funds. We reserve the right to audit the financial records at any time. 2.2.2 Schedule - this exhibit is being prepared by The T staff. Failure on the part of the T to achieve the project schedule may result in mediation and if that effort is unsuccessful in resolving the dispute, then Grapevine may elect to withold or suspend the transfer of funds until the schedule is recovered. The T will provide quarterly reports and (upon request) give progress update presentations to the City Council. 2.3 and 2.4 Other Resouces - a reflection of the other financial partners in the commuter rail project. 2.5 Rail Service to other Cities - establishes that for other cities along the corridor to receive service, they will have to dedicate 3/8th of a cent of their sales tax or the cash equivalent thereof. 2.6 Regional Rail Initiative - recognizes that if the voters approve a sales tax measure in the future for mass transit and if Grapevine is subject to the tax (and that the tax is greater than 3/8th of a cent) that Grapevine's 4B sales tax will cease. If the amount in this initiative is lower (than the 3/8th cent) Grapevine will be required (along with the other participating cities along the route) to make up the difference with our 4B funding. Section 3. Use of Project Funds 3.1 Spending of Funds - all funds must be spent according to the project budget. 3.2 Eligible expenditures - a -k detail the eligible expenditure of project funds. 3.3.1 Responsiblities after construction — The T is responsible for operation and maintenance along the corridor and stations. Grapevine will maintain added features over and above the standard baseline station. 3.3.4 Service Levels - assures seven day a week service plus expanded service during special events (such as Main Street Days and Grapefest) as requested by Grapevine. 4.1 c Crossings - in Grapevine are to be constructed and permitted as Quiet Zone designated. All at -grade crossings will be maintained. 4.1 d Project Advisory Committees — one or more committees are to be formed for this project, a policy advisory committee that is made up of Governing Body members (or their designee) and a technical advisory committee made up of a staff, designated by the City Manager, that oversee the techncial development of the project. 4.1 f Grapevine Stations - station location and designs subject to Grapevine approval and, where applicable, DFW approval. 4.1 j Security - establish and fund a security and safety plan as well as an emergency plan for incidents that may occur at stations or along the corridor. 4.1 1 Strategic Plan - strategic plans are required no less than every five years to assess service capacity, ridership projections, station usage and needs and other factors that may require changes to the servies being provided in this agreement. 4.2 a Station Funding - above the baseline cost of a station, Grapevine will fund fifty percent of the upgrade to the Grapevine Main Street Station. 4.2 f Airport Station outside the gate - provides that no additional Grapevine funds (outside of the project funds; which include Grapevine's 3/8 cent contributions) for DFW stations. 4.3 a Airport Station inside the gate - DFW will fund the construction located inside the airport terminal complex. 4.3 f Grapevine Vintage Railroad - will be preserved and protected in this corridor so that operations may continue once commuter rail is operational. Section 5. Term 5.1 Term - this provision (35 years) is set by the requirements to receive New Starts funding and anticipates a five-year term to before the project is fully operational. Further there are renewal terms for two successive 15 -year terms. 5.3 Dispute Resolution - standard dispute resolution language is included in this agreement as a reasonable guide for resolution of disputes between the City and The T. INTERLOCAL AGREEMENT REGARDING COMMUTER RAIL SERVICE by and between THE FORT WORTH TRANSPORTATION AUTHORITY and THE CITY OF GRAPEVINE, TEXAS This Interlocal Agreement Regarding Commuter Rail Service (the "Agreement") is made this day of , 2007, between THE FORT WORTH TRANSPORTATION AUTHORITY (hereinafter referred to as "The T"), a regional transportation authority created and existing pursuant to Chapter 452 of The Texas Government Code, and the CITY OF GRAPEVINE, TEXAS (hereinafter referred to as "Grapevine"). (Grapevine and The T may hereinafter together be referred to as "the Parties.") RECITALS: WHEREAS: A. The T provides public transportation services in the Greater Fort Worth area; and B. 'Pursuant to the Interlocal Cooperation Act, Chapter 791, Texas Government Code, Grapevine and The T may exercise jointly the power to provide governmental services for the public health, safety and welfare; and C. Pursuant to Article 1182k, Texas Revised Civil Statutes, all railroad -related activities by public agencies, separately or jointly exercised, are public and governmental functions exercised for a public purpose and as matters of public necessity; and D. The T and Grapevine have agreed that it would be mutually beneficial to the citizens of Grapevine and The T service area to have commuter rail service connecting the southwest area of Fort Worth to Grapevine and the Dallas -Fort Worth International Airport to relieve traffic congestion, provide transportation opportunities and aid in attaining federal air quality standards; and E. Grapevine and The T have agreed to execute a mutually beneficial Interlocal Cooperative Agreement (hereinafter referred to as the "ILA"), granting Grapevine and The T certain rights and responsibilities related to commuter rail service along the Southwest -to - Northeast Corridor (hereinafter referred to as the "Corridor"); and F. Grapevine and The T desire to enter into this ILA to define their respective rights and responsibilities regarding the provision of commuter rail service along the Corridor, including, but not limited to, the means through which they will raise capital and operating funds for the development and operation of the commuter rail service and operational standards and service levels, and entering into an Operating and Maintenance Agreement setting forth their respective rights and obligations with regard to the operation and ongoing maintenance of such commuter rail service; and G. All expenditures required to be made under this Agreement shall be made with current funds available to the parties. NOW, THEREFORE, in consideration of the covenants and agreements herein, the receipt and sufficiency of which are hereby confirmed, the parties agree as follows: SECTION 1 INTERPRETATION 1.1 Defined Terms. As used in this Agreement, the following terms will have the meanings respectively assigned to them below, which meanings will be applicable equally to the singular and the plural forms of The Terms so defined: 1.1.1 "Agreement" means this Interlocal Agreement Regarding Commuter Rail Service, as amended, supplemented or restated from time to time. 1.1.2 "County" means Tarrant County, Texas. 1.1.3 "Grapevine Funds" refers to 3/8 of one cent from Grapevine's 4B Economic Development Corporation Sales Tax revenue as collected and other funds dedicated or contributed by Grapevine to the Project at Grapevine's sole discretion. includinganv interest accrued thereon3. 1.1.4 "Facilities" means all stations, station parking facilities, trackage right of way, and structures constructed, relocated, improved or otherwise modified pursuant to the terms of this Agreement, including signals and communication facilities. 1.1.5 "Airport" means Dallas -Fort Worth International Airport. 1.1.6 "Dispute" means any disagreement, failure to agree or other dispute between The T and Grapevine arising out of or in connection with this Agreement, including with respect to the interpretation, construction, breach, performance, validity or termination hereof. 1.1.7 "Southwest to Northeast Corridor" (also referred to as "the Corridor") means the rail right-of-way, trackage and commuter line from the southwest Tarrant County area through Grapevine and to the Airport. It is anticipated that the Corridor and the Locally Preferred Alternative (LPA) will be the existing route Cotton Belt Line 2 through the T&P Station and Intermodal Transportation Center ("ITC"), as shown and described on the attached Exhibit "C". 1.1.8 "Project" means the acquisition, construction, operation and maintenance of the Corridor and all rail Facilities and Stations appurtenant thereto. Prejeet shail also inel114- .`s �C ititf?d-a u 2 ;i 5+ru.ii:�pvi g+ut +; ", ,.lude,� b + + limited + � i"+o,- eity t1re ley seryiees 6 including real property acauisition.7 1.1.9 "Sales Tax" refers to 3/8 of one cent from Grapevine's 4B Economic Development Corporation Sales Tax revenue as collected and dedicated or contributed by Grapevine to the Project, including any interest accrued thereon$. The Sales Tax shall not include any sales tax revenue generated by or from and/or attributable to a Chapter 380 Economic Development Incentive Agreement. The Sales Tax shall further not include the one half of the amount of funds necessary to provide9 associated and ancillary nr- will be dedicated to such intra -city trolley services that will be deducted from the Sales Tax.1 i 1.1.10 "Station" or "Stations" means Passenger stations, including but not limited to, real property for Station, 12associateddriveways, parking areas and facilities, bus and/or shuttle drop off and pick up zones, passenger drop off and pick up zones, covered platform, ramps , ticket kiosks, narking areas. 13andancillary improvements on the Corridor. 1.2 Construction and Interpretation of this Agreement. In this Agreement: 1.2.1 the recitals and headings to Sections are for convenience only and will not affect the interpretation of this Agreement; 1.2.2 words importing the singular include the plural and vice versa, and the words importing gender include all genders; 1.2.3 the words "include" and "including" are to be construed as meaning "including without limitation;" 1.2.4. all exhibits attached hereto and listed as follows: (a) Preliminary Project Summary (b) Preliminary Project Cost Estimate Bud et 14* (c) Preliminary Corridor Map* (d) Project Schedule* [Grapevine requests that at least an initial schedule be prepared and included at time of anproval]1s (e) Performance Standards*; these should include the following items: i. Design and Construction Standards — All applicable portions of the Project must conform to the zoning, subdivision design and construction standards adopted by the City of Grapevine for paving, drainage, landscaping, streetscape, public utilities, and structures; and ii. Utility u elee,atio s a a 16Station" Improvements. The T will identify a base estimated amount for funding for each station and associated parking facility (if any). including real property acquisition 18 (the "standard station baseline"); the standard station baseline shall be consistent with the standard existing stations, exclusive of the ITC: 19amounts exceeding the standard station baseline for station enhancements required by Grapevine for the Downtown Grapevine Station ° will be split fifty percent each between the T and Grapevine. Grapevine's additional funding shall come from funds other than the Sales Tax. The City of Grapevine will provide to The T copies of all applicable city ordinances, regulations for development of the Project and Facilities, Grapevine's Comprehensive Plan, all applicable zoning ordinances, and its Historic Preservation Ordinance, and any other laws, regulations codes or ordinances to which this Project would be required to comply. (fl Operating and Maintenance Agreement.* * The parties acknowledge that these items marked with an asterisk(*) may not yet exist, may or may not be possible to complete prior to the time of the execution of the Agreement, and as such any are preliminary and will be adjusted over time and finalized at a later date subject to the mutual agreement of the Parties. The Operatic and Maintenance Agreement shall provide as�=s relative to the Downtown Grapevine Station. 21 The Downtown Grapevine Station shall be owned by Grapevine. Grapevine shall assume sole authority for the management of the Station improvements including the structured parking facility. Any revenue generated by the structured_ parking facility shall accrue to Grapevine. 22 1.2.5. Subject to section 1.2.4 (f), above, all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2 BUDGET AND FUNDING 2.1 Project Budget The Project Budget also referred to as the "Preluninary Proiect Cost Estimate"123, which is included herewith as Exhibit B, shall detail all scheduled Project expenditures. The Project Budget shall also detail all scheduled_24and available sources of funding for the Project. The Project Budget shall be updated on an as needed basis, but not less than quarterly, upon the mutual agreement of the parties hereto. The Project Budget will also include Grapevine's annual costs for its participation in North East Transportation Service ("NETS"), along with Grapevine's annual contribution for the Trinity Railway Express ("TRE"). Grapevine's NETS,25 and TRE costs shall be funded with the Grapevine Funds. The Project Budget is subiect to the mutual agreement of grapevine and The T26. 2.2 Grapevine Funds. 2.2.1 Grapevine will dedicate and set aside the Sales Tax revenue for the Project as Grapevine Funds from and after the date Grapevine begins to receive funds from Grapevine's 4B sales tax. Grapevine Funds will be transferred to The T within 30 days of receipt of funds from the State of Texas; no request from the T will be required. The T will send at least quarterly an accounting of the Project Funds and Grapevine Funds. Grapevine reserves the right to audit or inspect The T's Project records upon request during normal business hours. 2.2.2 The Project Schedule is attached hereto as Exhibit D. The Project Schedule includes a schedule of benchmarks and deliverables which serve as the basis of Grapevine's participation in the Agreement. In the event of any failure by The T to substantially achieve the provisions of the Project Schedule, and following the completion of Dispute Resolution pursuant to Section 5.3 herein, Grapevine may withhold or suspend funding until such time as the Schedule is recovered. The T will provide quarterly progess reports to Grapevine and progress update presentations to the Grapevine City Council upon request. 2.3 The T Funds and Resources. The T will dedicate such funds necessary to meet its obligations for use in connection with the Project, consistent with the Project Budget. This Agreement is subject to the future availability of funds, pursuant to Section 452.108, Texas Transportation Code. 2.4 Application for Other Funds. The T will apply for and pursue the following additional potential sources for funding the Project, which funds shall be reflected in the Project Budget: (a) The County (b) North Central Texas Council of Governments ("COG") (c) The Texas Mobility Fund (d) Federal funding sources (e) Other funds 2.5 Rail Service to Other Cities. The parties contemplate that cities through which the Southwest to Northeast Corridor passes may seek passenger rail service thereon from The T. Pursuant to this Agreement, Grapevine is dedicating significant funds to commence passenger rail service on the Corridor. The parties recognize that it would be inequitable to permit other cities to receive service on the Corridor without bearing a like portion of the costs associated with commencing passenger rail service on the Corridor. The T shall not authorize, permit, or provide commuter rail service to any other entity on terms or conditions more favorable or less burdensome to such entity than those applied to Grapevine pursuant to this Agreement, in order that no entity be granted an unfair competitive advantage over Grapevine, and to provide all parties equal protection under the law. Accordingly, other cities may be granted access to the Corridor only to the extent that such cities contribute to the Project on the same or similar terms as Grapevine, by dedicating 3/8 of one cent of sales tax revenue, or the cash equivalent thereof as adjusted, to The T. 2.6 Regional Rail Initiative Tax The parties recognize a regional rail initiative may be formed and that a sales tax may be levied in the future within the County or the surrounding region, the proceeds of which may be dedicated to providing passenger rail service. Should such a tax be levied and Grapevine is subject to the tax, and the regional rail tax is equal to or exceeds 3/8 of a cent, Grapevine's dedication of Sales Tax, as referred to in paragraph 2.2.1 hereinabove, will cease. If a Regional Rail Initiative is passed and the amount for individual cities is less than 3/8 cent sales tax to join the Regional Rail Initiative, then cities along this Corridor will be required to provide the difference between the amount needed for the Regional Rail Initiative and the equivalent of 3/8 cent sales tax for their cities in order to have a station on this corridor. SECTION 3 USE OF PROJECT FUNDS 3.1 Project Funds All funds shall be spent in full accordance with the Project Budget. All costs must be reasonable and consistent with policies and procedures mandated by State or Federal law, and the T's normal operating procedures. All expenditures must be accorded consistent treatment and determined in accordance with generally accepted accounting principles ("GAAP"). Grapevine reserves the right to audit all budgets, work schedules and accounts of the Project at Grapevine's sole expense. 3.2 Anticipated Planning, Engineering and Construction Work. Project funds may be expended, for the following, consistent with the Project Budget: (a) performing engineering, surveying, and design review related to the Project; (b) performing any studies, analyses, surveys and review required to obtain any federal, state or other governmental approvals for the Project; (c) performing any studies, analyses, surveys and review required to obtain any federal, state or other governmental funding for the Project; (d) environmental planning; (e) labor, materials, tools and equipment required for the Project; (fl acquisition of real property required for the Project (to the extent eminent domain becomes necessary for any real property in Grapevine, Grapevine shall exercise such right and shall be credited for all such costs, including but not limited to land costs, attorney fees, and valuation experts which shall be paid from the Sales Tax 27): (g) construction of rail Facilities related to the Project; (h) construction of Stations for the Project; (i) changing or modifying Facilities as required to complete the Project; 0) procurement of rolling stock and related equipment. (k) performing any and all work which The T deems necessary for the approval, funding, construction and completion of the Project, including, without limitation, improvement to the TRE Equipment Maintenance Facility to accommodate maintenance of rolling stock and Maintenance of Way (MOW) equipment. 3.3 Responsibilities after Construction. 3.3.1 After completion of construction of the Project and acceptance thereof by The T, The T shall be responsible for the operation and maintenance of the Corridor and Stations. The28Except for the Downtown _ Gra evine Station, the 29 T will maintain the stag-eBs3OStations31, per 1.2.4 (e), above, and parking facilities including the platforms, canopies, surface parking lots and drives, landscaping, signage and lighting. Grapevine will maintain a V 11LV fae-111{., lity , , lad32t retail sh"s and ethef feawFes ovef and above the standard baseline w t ,,!,n Grvine Station utilizing funds other than the Sales Tax33. 3.3.2 After completion of construction of the Project, and acceptance thereof by The T, Grapevine will be responsible for the continual partial funding of the Project's operation through the Sales Tax until this Agreement expires or is terminated as otherwise provided for herein. 3.3.3 Prior to completion of construction of the Project, the parties will enter into operating and maintenance agreements with regard to the operation of the Corridor for commuter rail service as provided in Section 1.2.4 (e) and (f), above, which will delineate the rights and obligations of the parties to this Agreement, as well as of any additional participating cities or governmental entities. Such operating and maintenance agreement is wholly subject to the mutual agreement of the parties. 3.3.4 The Parties anticipate the initial operating level of service will be substantially similar to the existing TRE level of service plus limited Sunday service. Additional trains will be made available to and provided in order to serve special Grapevine events and festivals upon the request of Grapevine. SECTION 4 RESPONSIBILITIES OF THE PARTIES 4.1 Responsibilities of the T The T shall be responsible to: (a) Comply with all applicable state and federal laws, ordinances, and regulations for development of the Project and Facilities. Such improvements will provide for orderly development of the Project, which shall to the extent The T is not exempt therefrom, also meet Grapevine's Comprehensive Plan, Zoning Ordinance, Historic Preservation Ordinance or other local ordinance. (b) Use Grapevine's standard specifications, details, and standards in its designs and construction plans for all improvements in the city limits of Grapevine, and in fe&=danec34accordance 35 with Subsection 1.2.4(e), above. (c) The T will contract for an Environmental Impact Study ("EIS") that will include preparation and submittal for review by Grapevine of a Traffic Impact Analysis ("TIA") for existing and proposed Stations and road crossings of the rail line by streets at -grade; establishing a requirement that such at -grade crossing to be maintained at a level of service ("LOS") equal to B or better; definition of any required improvements; and addressing integration of the nearby local traffic signal network into the train signal system at grade crossings when signalized intersections are within 500 feet of the rail line. Subject to Subsection 4.2(g), below, at grade crossings shall be constructed and permitted to be Quiet Zone designated, and at grade crossings shall be maintained. The T shall be responsible for preparing any Engineering Study necessary to qualify for Quiet Zone Status. (d) Establish a Project Advisory Committee, consisting of Grapevine and Fort Worth representatives, Grapevine City Council and staff, and The T Board members and staff, to provide input on transportation and development issues associated with the Project. (e) Establish procedures for maintenance of traffic, continuing access to adjacent properties, and uninterrupted utility operations during construction. (fl Grapevine Stations — The T will provide a minimum of two (2) stations, in accordance with Subsection 1.2.4(e) above, which are designed for passenger comfort and safety during boarding and disembarking, including access for disabled persons. The station locations and design will be subject to Grapevine approval, and where applicable the approval of D -FW International Airport. Such Stations shall include enhancements as may be requested by Grapevine, including but not limited to associated meeting room space, premium architectural features, structured narking. 36andmixed use spaces, also subject to Subsection 1.2.4(e), above. (g) Provide architectural amenities, including but not limited to canopies, shelters, structures, benches, signage, landscaping, public art, and mitigation measures to address undesirable sound, vibration, and visual intrusion at stations and along the Corridor within the Grapevine city limits, all in accordance wits 7subiect t038 Subsection 1.2.4(e) and 39above. (h) Provide for ongoing maintenance of the Corridor. (i) Develop operational standards for train operations, and such operations will minimize impact on traffic at at -grade roadway crossings. Such standards may require integration of the train signal control system with the adjacent traffic signal network along the rail alignment. (j) Establish and fund a security and safety plan for all hours of operation with emphasis on Stations and within trains, including an emergency plan for incidents that may occur at Stations, on trains, and along the Corridor. (k) Prepare and update at least annually a Financial Plan for the Project, which shall be submitted to the Grapevine for review and comment. (1) Conduct commuter rail strategic plan in not less than 5 -year increments to assess rail service capacity, ridership projections, station usage and needs, parking and access provisions, traffic and roadway considerations, transit oriented development, and growth patterns around stations and existing and projected rail alignment(s). 40Provide limited advertising snare within the commuter rail cars for Grapevine's special events when such special events will utilize tlh-e Project, at no cost to Grapevine. 41 42 The T shall in no event bear any responsibility to provide bus or trolled based paratransit services complimentary to any bus or trolley service operated by Grapevine or any affiliated or associated Grapevine entity.43 4.2 Responsibilities of Grapevine. Grapevine shall be responsible to: (a) Review and approve the design and construction documents for Project improvements in the city limits of Grapevine. Grapevine will cooperate with the T in achieving the goals and schedules of the Project by expeditiously reviewing all submitted documents. (b) Provide timely, accurate, and complete information with respect to its regulations, requirements, and development regulations. (c) Consult with the T and cooperate as fully as possible to meet Project objectives as it relates to portions of the Project in the City of Grapevine. (d) Provide funding as set forth in Subsections 1.1.3, 1.1.9 and 2.2 above. (e) Grapevine will fund fifty percent (50%) of the upgrade of the Grapevine Main Street Station. M Grapevine will maintain an active voice on the other station at the north end of D -FW International Airport being constructed as a part of the Project. Grapevine, however, will provide no funding for such station. (g) Grapevine will apply with the Federal Railroad Administration for Quiet Zones within the Grapevine city limit. (b� 44 Grapevine will be solely responsible to provide bus or trolley based paratransit services complimentary to any bus or trolley service operated by Grapevine or any affiliated or associated Grapevine entity. 45 4.3 Mutual commitments of the parties (a) The Parties reserve the right to terminate this Agreement, subject to the dispute resolution provisions of Section 5.3 herein. (b) The parties shall coordinate and cooperate on the adoption of a regional public transportation system, the commuter rail corridor on the Cotton Belt rail line from Fort Worth through Grapevine. (c) Notification of Action – The T and Grapevine each will inform the other in advance of The T Board briefings or City Council briefings, public hearings, or official actions related to the Project, its implementation, or operation. (d) Notwithstanding the above, the Term and performance of this Agreement shall at all times be subject to the appropriation of sufficient funds to and by each party. (e) D -FW International Airport will fund the Station located inside the Airport Terminal Complex.–Grapevine-Funds will be available for a standard station baseline for the Grapevine Station on D -FW propertv outside of the Terminal Complex.46 M The Parties agree to preserve and protect the Vintage R Operations47GrapevineVinta e Railroad operations 48 that currently operate on the Corridor. The T or its operations contractor will be responsible for dispatching all trains on the Corridor and scheduling after commuter rail service begins. SECTION 5 TERM, TERMINATION, AND DISPUTE RESOLUTION 5.1 Term The parties acknowledge that the Federal Transit Administration requires a NewStarts project term to be at least 30 years after project construction completion. The parties further anticipate at lease a five (5) year build -out of the project. Grapevine agrees that it will not unilaterally call an election to consider the cessation of collection of the Sales Tax referred to in Subsection 1.1.9. above unless otherwise obligated by law.49 — This Agreement shall be in full force and effect for an initial term of thirty-five (35) years, unless otherwise earlier terminated as provided for herein. Thereafter, the term of this Agreement will be automatically renewed for two (2) successive terms of fifteen (15) years each (each, a "Renewal Term"), unless either party gives written notice of its election to terminate this Agreement no less than one hundred eighty (180) days prior to the expiration of the Initial Term, or current Renewal Term, as the case may be. Any reference to "Term" as used in this Agreement shall include the Initial Term and the Renewal Terms. 5.2 Termination. 5.2.1 Except as otherwise provided for herein, this Agreement may be terminated only upon the joint decision of the parties and as evidenced by a written instrument executed in like manner as this Agreement. 5.2.2 Upon termination of this Agreement as provided above, any unexpended Grapevine Funds applicable to the Project shall be returned to Grapevine in the same proportion as the Grapevine Funds bear to the overall funding of the Project up to that point, less Grapevine's proportionate share of costs related to such termination. 5.3. Dispute Resolution The parties hereby agree to make a good faith effort to resolve disputes arising under this Agreement through informal discussions between the parties. In the event that a dispute cannot be resolved through informal discussions, prior to initiating an alternative remedy either party must submit a written complaint to the individual set forth in this Agreement for purposes of notice that sets forth with specificity the basis of the complaint and a proposed resolution to the dispute. The party receiving the complaint shall respond in writing to such written complaint within thirty (30) calendar days, by accepting the proposed resolution, rejecting the proposed resolution or by proposing an alternative resolution to the dispute. Within twenty (20) calendar days of receipt of the party's written response, if such response is a rejection or a counter -proposal, the other party must either accept the counter -proposal or request that the dispute be reconsidered and mediated by an independent third party that is mutually agreed upon by the parties. If the dispute is mediated, both parties shall participate in good faith and attempt to resolve the dispute to their mutual satisfaction. Each party shall be responsible for its own costs incurred in connection with such mediation, but shall also be responsible for one-half of all of the out-of-pocket costs of and incurred by such independent'third party in connection with such mediation. In the event that the dispute is unable to be resolved through mediation, both parties shall have full legal remedies allowed by law. Failure by either party to raise a dispute through this process shall not constitute waiver or acceptance of an alleged violation of this Agreement. The provisions of this section are strictly limited in scope to serving as a prerequisite to the enforcement of remedies under this Agreement. SECTION 6 MISCELLANEOUS PROVISIONS 6.1 Representatives. The T's President, or his or her designee(s), shall be the principal representative of The T in all matters relating to this Agreement. Grapevine's City Manager, or his or her designee(s), shall be the principal representative of Grapevine in all matters relating to this Agreement. Grapevine's representative shall have access to the records pertaining to the Project. The T hereby agrees to provide periodic and timely communications to Grapevine's representative with regard to any material aspect of the Project. 6.2 Notices. Notices sent pursuant to this Agreement will be deemed to have been delivered five (5) days after having been placed in the United States mail, first class mail, prepaid, addressed as follows: To The T: Richard L. Ruddell President/Executive Director Fort Worth Transportation Authority 1600 E. Lancaster Fort Worth, Texas 76102 With a copy to: Sylvia M. Hartless General Counsel Fort Worth Transportation Authority 1600 E. Lancaster Ave. Fort Worth, Texas 76102 To Grapevine: Office of the City Manager 200 S. Main Street Grapevine, Texas 76051 With a copy to : Matthew Boyle Boyle & Lowry, L.L.P. 4201 Wingren, Suite 108 Irving, Texas 75062 6.3 Force Majeure. Each party will be excused from the performance of any of its obligations hereunder,except obligations involving the payment of money to the other party, during the Time when such nonperformance is caused by fire, earthquake, flood, explosion, wreck, casualty, labor strike, unavoidable accident, riot, insurrection, civil disturbance, act of public enemy, embargo, war, extreme and violent weather conditions, inability to obtain labor, materials or supplies, or any other similar cause beyond the nonperforming party's reasonable control, provided the nonperforming parry gives notice to the other party within ten (10) days following the nonperforming party's knowledge of such event, setting forth the facts giving rise to such nonperformance and the number of days of delay expected to be caused thereby. 6.4 No Third Party Rights. THE CITY OF GRAPEVINE AND THE T AGREE THAT NEITHER IS THE AGENT, SERVANT, OFFICER AND/OR EMPLOYEE OF THE OTHER AND, THAT NOTHING IN THIS AGREEMENT CREATES, GRANTS, OR ASSIGNS RIGHTS OR RESPONSIBILITIES TO ACT AS A JOINT VENTURER, PARTNERSHIP, OR AGENT TO THE OTHER. IN ADDITION: GRAPEVINE AGREES TO BE RESPONSIBLE FOR ANY LIABILITY OR DAMAGES GRAPEVINE MAY SUFFER AS A RESULT OF CLAIMS, DEMANDS, COSTS OR JUDGMENTS, INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEYS' FEES, AGAINST GRAPEVINE, ARISING OUT OF ITS PERFORMANCE OF THIS AGREEMENT, OR ARISING FROM ANY ACCIDENT, INJURY OR DAMAGE, WHATSOEVER, TO ANY PERSON OR PERSONS, OR TO THE PROPERTY OF ANY PERSON(S) OR CORPORATION(S) OCCURRING DURING THE PERFORMANCE OF THIS AGREEMENT AND CAUSED BY THE SOLE NEGLIGENCE OF GRAPEVINE, ITS AGENTS, SERVANTS, OFFICERS AND/OR EMPLOYEES. THE T AGREES TO BE RESPONSIBLE FOR ANY LIABILITY OR DAMAGES THAT THE T MAY SUFFER AS A RESULT OF CLAIMS, DEMANDS, COSTS OR JUDGMENTS, INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEYS' FEES, AGAINST THE T, ARISING OUT OF ITS PERFORMANCE OF THIS AGREEMENT, OR ARISING FROM ANY ACCIDENT, INJURY OR DAMAGE, WHATSOEVER, TO ANY PERSON OR PERSONS, OR TO THE PROPERTY OF ANY PERSON(S) OR CORPORATION(S) OCCURRING DURING THE PERFORMANCE OF THIS AGREEMENT AND CAUSED BY THE SOLE NEGLIGENCE OF THE T,, ITS AGENTS, SERVANTS, OFFICERS AND/OR EMPLOYEES. THE ABOVE NOTWITHSTANDING, NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A WAIVER OF ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE PARTIES UNDER TEXAS LAW, NOR A WAIVER OF ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. Except as expressly set forth herein, the representations, warranties, terms and provisions of this Agreement are for the exclusive benefit of the parties hereto and no other person or entity will have any right or claim against either party by reason of any of these terms and provisions or be entitled to enforce those terms and provisions against either party. 6.5 Severability. If any part, term or provision of this Agreement is judicially determined to be illegal or in conflict with any applicable law, the validity of the remaining portions or provisions will not be affected, and the rights and obligations of the parties will be construed and enforced as if this Agreement did not contain the particular part, term or provision held to be invalid or illegal. 6.6 Entire Agreement. This Agreement, including any Exhibits hereto, is intended as the complete integration of all understandings between the parties. No prior or contemporaneous addition, deletion or other amendment will have any force or effect unless embodied in writing. No subsequent novation, renewal, addition, deletion or other amendment hereto will have any force or effect unless embodied in a written amendment or other agreement executed by the authorized representatives of the parties. 6.7 Captions and Headings. The captions and headings set forth herein are for convenience of reference only and will not be construed so as to define or limit the terms and provisions hereof. 6.8 Assignment. All the contents of this Agreement shall inure to the benefit of and shall be binding upon the party's successors and assigns, except that no party may assign any of its rights or obligations hereunder without the prior written consent of the other party, which consent will not be unreasonably withheld or delayed. 6.9 Applicable Law. This Agreement shall be governed by and interpreted under the laws of the State of Texas. 6.10 Venue. Venue as to any dispute, claim, or litigation with regard to this Agreemenf shall lie in Tarrant County, Texas. 6.11 Agreement Contingency. This Agreement is contingent, and will become effective only, upon approval by both the Board of Directors of The T and the Grapevine City Council. 6.12 Grapevine Not a Member City of The T. This Agreement contemplates the provision of commuter rail service only, and no other transportation services. Grapevine hereby acknowledges that it is not a member of The T or any other project or operations of The T. EXECUTED this day of May, 2007. FORT WORTH TRANSPORTATION CITY OF GRAPEVINE, TEXAS AUTHORITY By: By: Richard L. Ruddell President/Executive Director APPROVED AS TO FORM: Name: Bruno Rumbelow Its: City Manager APPROVED AS TO FORM By: By: 51 Sylvia M. Hartless Matthev�C 5' Qty Attorney General Counsel n tto ey at Lav', Attest: 53 Bv. Linda Huff. City Secreta 55