Assignment of Proceeding

Dian M. Grueneich is the Assigned Commissioner and Victor D. Ryerson is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The Settlement has been signed by all of the parties in this proceeding. A copy of the Settlement, including the attachments thereto, is attached as Appendix A to our Order.

2. The Settlement is an all-party settlement, because all parties to the proceeding have signed it. The other parties to the Settlement, Standard Pacific and ACI, are not parties to the Commission proceeding, but have an interest in the subject matter as owners and developers of land adjacent to the at-grade crossings that are to be established.

3. The motion proposing adoption of the Settlement contains a statement of factual and legal considerations adequate to advise the Commission and any persons not expressly joining in the Settlement of its scope and the grounds upon which adoption is urged.

4. For purposes of this decision the record consists of A.05-05-014, including the attachments thereto; the protests of CN and UP; the Prefiled Testimony of Robert Jones in A.05-05-014; D.02-06-059 in A.01-09-021; the Motion of City of American Canyon, California Northern Railroad Company, and Union Pacific Railroad Company to Adopt Settlement; and the documents identified in Finding of Fact 1.

5. The Settlement provides measures to reduce traffic conflicts at the South Napa Junction Road at-grade crossing by reconfiguring CN's Napa Junction yard in lieu of building a grade separation. These measures will eliminate switching moves across the proposed public crossing. Other railroad operations at this crossing are unlikely to exceed six train movements per day.

6. There has been no material change of circumstances with respect to the establishment of an at-grade crossing of Donaldson Way since we approved the establishment of Public Utilities Crossing No. 108AAB-62.72 in D.02-06-059. Extending the City's authority to establish that crossing for two years will not conflict with the Commission's previous decision.

7. The Settlement provides for mechanical grade crossing protective devices that comply with Commission requirements. The crossing protection required by our order is appropriate to protect the safety of the public at the two public crossings, considering the anticipated volume and speed of vehicular traffic, the anticipated number of train movements, the speed of train operations, and the visibility at each location.

8. The configuration of the revised Donaldson Way crossing design attached as Appendix B to our Order has been approved by Staff. This design incorporates the suggestions made by Staff because of safety concerns.

9. The Settlement includes provision for temporary access to property that would otherwise be inaccessible during construction of the two crossings approved by our Order.

10. All active parties to the proceeding have joined in the sponsorship of the Settlement for approval by the Commission.

11. The sponsoring parties are fairly reflective of affected interests. CN and UP, respectively as lessee-operator and lessor-owner of the rail line, reflect their common interest in ensuring the safety of their operations and the provision of common carrier rail service. The City represents the interests of the public in safety, traffic circulation, and rational land-use planning.

12. No term of the Settlement contravenes any statutory provision or previous Commission decision.

13. The Settlement conveys sufficient information to enable the Commission to discharge its future regulatory obligations with respect to the parties and their interests.

14. It is desirable to expedite the effective date of the Commission's Order to enable the parties to commence construction of the crossings with contractors who are currently performing work on CN and can perform the construction in accordance with contractual arrangements that have already been made with the parties.

15. The City is the lead agency under the California Environmental Quality Act (CEQA), and has reviewed and considered all aspects of compliance of this project with CEQA as part of the adoption of its General Plan.

Conclusions of Law

1. The Settlement is reasonable in light of the whole record.

2. The Settlement is consistent with law.

3. The Settlement is in the public interest.

4. The Commission should adopt the Settlement as part of its Order, with consistent additional conditions to ensure that all grade crossing protection provided for by the Settlement will comply with the Commission's applicable General Orders and other rules.

5. Construction of the public at-grade crossings at South Napa Junction Road and Donaldson Way as provided in the Settlement is in the public interest and will preserve public safety.

6. The Order should be effective today.

ORDER

IT IS ORDERED that:

1. The written Settlement Agreement entered into on April 6, 2006,among applicant City of American Canyon (City), protestants Union Pacific Railroad (UP) and California Northern Railroad Company (CN), and nonparties Standard Pacific Corp. and American Canyon I, LLC, a copy of which is attached as Appendix A, is adopted without modification, and its terms are incorporated herein to the extent of the Commission's jurisdiction.

2. The City is authorized to replace the existing, unprotected, private at-grade crossing of CN's rail line at South Napa Junction Road with a new, protected, public at-grade crossing at the same location. The new public crossing will be identified as South Napa Junction Road, Public Utilities Commission Crossing No. 108AAB - 62.30.

3. The City's Petition for Rehearing in Application (A.) 01-09-021 is granted, and the authority granted in our Order in Decision (D.) 02-06-059, is extended as provided herein. A copy of the design of this crossing is attached as Appendix B to our Order.

4. Each of the new public crossings authorized to be constructed by this order shall be protected with an active warning system consisting of two Standard No. 9 automatic flashing signal light signals with gates compliant with General Order (GO) 75-C on either side of the railroad track for traffic in each direction. In conjunction with the warning devices there shall be standard roadway markings and signage for railroad-highway grade crossings.

5. Each crossing signal within 200 feet of a present or future signalized intersection shall be wired at the time of installation for traffic signal pre-emption to clear vehicles on the tracks from approaching trains.

6. All clearances shall comply with GO 26-D, and all walkways shall comply with GO 118.

7. Walkways adjacent to any trackage subject to rail operations shall be maintained free of obstructions, and shall be restored promptly to their original condition in the event that they are damaged during construction.

8. Construction costs for each crossing shall be borne in accordance with a written agreement between the parties, a copy of which shall be filed by the City with the Commission's Consumer Protection and Safety Division (CPSD) prior to construction.

9. Maintenance costs for the crossings shall be shared equally between the City, on one hand, and CN, its successors and assigns, on the other hand.

10. Prior to construction of each crossing the City shall file with CPSD final construction plans approved by CN and UP. CPSD shall promptly review the plans to ensure compliance with the Commission's requirements, and shall report any discrepancies or objections to the parties not more than 30 days after receiving the plans. The parties shall, at the earliest opportunity, meet and confer with CPSD and exercise their best efforts to resolve any discrepancies or objections by informal agreement. In the event that the parties and CPSD are unable to resolve any such problem informally, the aggrieved party may submit the matter to the Commission by petition for modification of this order. A failure by CPSD to report any discrepancies or objections to the parties within 30 days as provided herein shall be deemed to constitute its approval of construction plans.

11. With respect to the private crossing of Napa Junction Road that is affected by this order, UP and CN are authorized to close the crossing. The expense of closure of the crossing on railroad property shall be borne by and apportioned among the railroads in accordance with the existing lease agreement between them. The expense of providing alternative access over the lands of Jaeger Vineyards, LLC, is governed by Settlement terms that are approved and adopted, but may only be enforced to the extent of the Commission's jurisdiction.

12. The City shall inform the Rail Crossings Engineering Section of CPSD in writing within 30 days of the completion of construction of each crossing that is authorized by this order.

13. The authority granted in this order shall expire if not exercised within two years of the effective date, unless the time is extended by the Commission.

14. The authority granted in this order may be suspended or revoked in the event that the parties, or any of them, fail to comply with the foregoing conditions of approval. The Commission, upon a showing of good cause, may at any time revoke or modify the authority if public convenience, necessity, or safety so require.

15. No hearing is necessary in A.05-05-014.

16. A.01-09-021 and A.05-05-014 are closed.

This order is effective today.

Dated September 7, 2006, at San Francisco, California.

D0609016 ATTACH A&B TO Ryerson A0109021/A0505014

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