4.7. SR 10-18-1999 - Laserfiche WebLink

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\ *NDIITIIBTJUI . CORRIDOR Agenda Item #7 MEMORANDUM September 30, 1999 To: NCDA From: BNSF Negotiating Team Subject: Update on BNSF Negotiations Over the last two months, the Negotiating Team has met several times with BNSF officials to discuss issues related to the operations of commuter rail on the BNSF mainline. The purpose of this memo is to provide a brief overview of the discussions to date. . The discussions have focused primarily on the different sets of principles guiding each party as negotiations proceed. Attached are the Commuter Rail Principles developed by BNSF (and originally presented in a meeting with Congressman Jim Oberstar). Also attached is the document prepared by NCDA staff that outlines the draft principles of the NCDA. The NCDA principles are responsive to those raised by BNSF and are based on the general policy direction of the NCDA, the experience of Seattle, the advice of the legal counsel and the draft negotiating guidelines under development by Mn/DOT. It should be noted that while BNSF generally agrees with the NCDA's draft principles, the real negotiations will occur over the details and the translation of principles into contract terms and conditions. Key issues that the Team and the attorneys are currently analyzing include: 1) The results of BNSF capacity modeling and the improvements to the BNSF railroad that are needed to operate commuter rail; 2) The tax implications to BNSF relating to the improvements; 3) The allocation of risk and liability, indemnification and insurance. The next step is to complete the analysis on these issues. As the negotiations proceed, the Negotiating Team will be seeking the advice and direction of the NCDA on all substantive business points. . Action Requested: Information only. Northstar Corridor Development Authority 21003'" Avenue. Anoka. Minnesota 55303-2265 (612) 323-5700 Fax: (612) 323-5682