Terms of Settlement

The Settlement eliminates a considerable amount of the potential railroad-vehicular traffic conflict at the South Napa Junction Road public crossing by reconfiguring the Napa Junction Yard so that switching of cars and provision of rail service to Adobe Lumber Co. will be performed from the north end of the siding rather than the south end. Only four to six daily trains between Napa Junction and Vallejo are anticipated to cross the new roadway if the yard is reconfigured in this manner. Appropriate grade crossing protective devices that comply with applicable Commission requirements will be installed to protect the safety of motorists, bicyclists and pedestrians. Financial participation by the two affected developers will provide immediate funding for the crossing improvements at both South Napa Junction Road and Donaldson Way.

For the Commission's purposes the material provisions of the Settlement are as follows:

(1) The parties agree that the City should be permitted to convert the existing private crossings at South Napa Junction Road and Donaldson Way into public at-grade crossings.

(2) CN and UP agree to withdraw their respective protests to A.05-05-014 and the City's Petition to Modify D.02-06-059, and affirmatively support the City's pending requests for authority to construct the two public at-grade crossings.

(3) The City, with cooperation from CN and UP, will design, construct and install the public at-grade crossings with active warning devices in compliance with all applicable state and local rules and regulations, including but not limited to General Order 75-C and other applicable Commission rules and regulations. The Settlement incorporates drawings depicting the proposed designs for the South Napa Junction Road and Donaldson Way at-grade crossings. The Donaldson Way design has been revised to incorporate recommendations, including the addition of raised medians, proposed by Staff.

(4) The City and UP will execute appropriate agreements for construction and maintenance of the crossing improvements, and the City will acquire from UP all necessary property rights required for the at-grade crossings and related roadways, with the cost of such property rights subject to reasonable determination by UP.

(5) In exchange for the support of CN and UP for approval and construction of the public at-grade crossings, the City, ACI, and Standard Pacific have made a binding commitment to relocate the portions of the existing CN switching facilities that would otherwise be directly and adversely impacted by construction of the public at-grade crossings, pursuant to the scope of work set forth in plans approved by the parties, ACI, and Standard Pacific.

(6) CN will assume full responsibility and liability for undertaking the design, construction, installation, maintenance and other ancillary work as may be required to complete this reconstruction project in compliance with all applicable state and local rules and regulations.

(7) Standard Pacific and ACI will fund the reconstruction project and reimburse CN for costs not exceeding $677,645.

(8) The parties, Standard Pacific, and ACI acknowledge that this project cannot be undertaken without closure of the existing private grade crossing of Napa Junction Road over the multiple tracks of the CN Napa Junction Yard, and agree that closure of the Napa Junction Road private grade crossing is a condition to and part of the consideration for UP's and CN's support of each of the new public at-grade crossings at South Napa Junction Road and Donaldson Way.

(9) To facilitate the required closure of the private grade crossing at Napa Junction Road, the parties in this proceeding, Standard Pacific, and ACI recognize the need to provide alternative access to a public roadway to parcels that currently gain access over an existing dirt and gravel roadway on property connected to the private grade crossing at Napa Junction Road. In a letter dated March 15, 2006, a copy of which was furnished with the parties' motion, Jaeger Vineyards, LLC, the owner of the property traversed by the existing dirt and gravel roadway served by the Napa Junction Road private grade crossing, consents to rerouting the existing dirt and gravel road to provide the alternative access. The alternative access will allow the users of the Napa Junction Road private crossing direct access to Watson Lane, a public street, and to its associated grade crossing of the CN track (Crossing No. 108AA- 61.40-A). In addition, a proposed future extension of Newell Drive that is included in the City's General Plan will provide direct access to a major arterial public street for the two parcels of property that presently receive access over the Napa Junction Road private grade crossing.

(10) In conjunction with the provision of this alternative access, CN has undertaken to comply with the requirements of the Commission regarding posting of notice of the planned closure of the private crossing at Napa Junction Road and, after issuance of the Commission's order authorizing the closure, will install at its expense facilities necessary to effect the physical closure of the private crossing at Napa Junction Road at its intersection with the westerly boundary of the Napa Junction Yard. CN has already initiated these measures by posting notice of the planned closure at the Napa Junction private crossing.

(11) The City and Standard Pacific agree to take all reasonable steps to obtain any required consents from adjoining property owners or other interested parties in order to effectuate the closure of an existing private at-grade crossing at Holcomb Lane upon completion of the installation of crossing improvements for the proposed public crossing at Donaldson Way. The City and Standard Pacific will document in writing their efforts to close the Holcomb Lane crossing and provide this information to CN, UP, and Commission staff within six months following issuance of the Commission order approving the settlement in this consolidated proceeding.

(12) The City commits to minimizing the number of at-grade crossings in its land use planning and development process. Specifically, the City agrees to consolidate and close existing at-grade crossings within City limits to the maximum extent possible, and to use its influence with Napa County to reduce the number of existing and future at-grade crossings to the maximum extent possible. With regard to future plans for a crossing of CN tracks to accommodate the proposed extension of Newell Drive north of Watson Lane, the City agrees to support actively the development of a separated grade crossing in lieu of a new at-grade crossing in its discussions with the County and in future regulatory proceedings before the Commission.

(13) With regard to potential at-grade crossings of CN lines and future potential extensions of Devlin Road, the City and CN agree to meet and confer in an effort to reach an accommodation regarding the need for any such crossing, as well as its (their) optimal design and location.