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85-679 �A U L Council _��' WH17E - CITV CLERK G I y OF SA I NT File NO. PINK - FINANCE CANARV - DEPARTMENT � BLUE - MAVOR � � C ��cil Reso ution ;--� , ,. ;, ___ . Presented By � Committee: Date Referred To Date � Out of Committee By the r er City officers are hereby authorized and LVED Tha P P RESO , ' directed to ex ute on behalf of the City of Saint Puthor ta of the City of the Burlington orther Railroad Co. and the Port A y Saint Paul pro iding f r the construction of a ra�ail oad's drade crossing f ' signals, and p er sw tching equipment at the R 9 ' ENERGY PARK RI VE, e st of Raymond, with the RaiPO t Authority shar n ' stallations and the City and essar 1 ab r and i ; nec y the costs on a 50-50 asis as per the agreement. ; F , A1 1 2 �L COUNCILM N Requested by Department of: � Yeas 50�* Nays Publ i c Works ( EK) 5-1-85 � �.aw [n Favor �����U:-� �. ' ��`�/�. Masanz O Nicosia A gai n s t By � Ted�esco -- Wflson MAY 2 � 1985 Form Approve b City Atto ne �E� Adopted by Council: Date X BY ` Certified Yassed by Counc.il Se retary � B ' ` b a or for Su mis on t o�ncil 5 AY 2 1 1 85a�P y � -_ ��� Approved b vor. D e _ ----- Rev By - JUN 11�85 il�llSftE� HOW TO USE THE GREEN SHEET � " .. e^.�ti,.rilr': . -� . ��-,.:� The GREEN SHEET has several PURPOSES: . 1, to assist in routing documents and in securing required signatures ' 2. to brief the reviewers of documents on the impacts of approval 3. to help ensure that necessary supporting materials are prepared, and, if ( required, attached. Providing complete information under the listed headinqs enables revie�ters to make decisions on the documents and eliminates follow-up contacts that may delay execution. The COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS heading provides space to explain the cost/benefit aspects of the decision. Costs and benefits related both to City budget (General Fund and/or Special Funds) and to broader financial impacts (cost to users, homeowners or other groups affected by the action) . The personnel impact is a description of change or shift of Full-Time Equivalent (FTE) positions. If a CONTRACT amount is less than $10,000, the Mayor's signature is not required, if the department director signs. A contraet must always be first signed by the outside agency before routing through Ci�y offices. - � Below is the preferred ROUTING for .the five most frequent types of documents: CONTRACTS (assumes authorized budget exists) 1. Outside Agency 4. Mayor 2. Initiating Department 5. Finance Director 3...City Attorney 6. Finance Accounting ADMINISTRATIVE ORDER (Budget Revision) ADMINISTRATIVE ORDERS (all others) 1. Activity Manager 1. Initiating Department 2. Department Accountant 2. City Attorney ' 3. Department Director 3. Director of Management/Mayor ' 4. Budget Director 4. City Clerk 5. City Clerk 6. Chief Accountant, F&MS COUNCIL RESOLUTION (Amend. Bdgts./Accept. Grants) COUNCIL RESOLUTION (all others) 1. Department Director l. Initiating Department 2. Budget Director 2. City Attorney 3. City Attorney 3. Director of Management/Mayor 4. Director of Management/Mayor 4. City Clerk 5. Chair, Finance, Mngmt. & Personnel Com. 5. City Council 6. City Clerk � 7. City Council 8. Chief Accountant, F&MS SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attac'hments. If the Green Sheet is well done, no letter of transmittal need be included (unless signing such a letter is one of the requested actions) . Note: If an agreement requires evidence of insurance/co-insurance, a Certificate of ( Insurance should be one of the attachments at time of routing. Note: Actions which require City Council Resolutions include: l. Contractual relationship with another governmental unit. 2. Collective bargaining contracts. 3. Purchase, sale or lease of land. 4. Issuance of bonds by City. 5. Eminent domain. 6. Assumption of liability by City, or granting by City of indemnification. 7. Agreements with State or Federal Government under which they are providing funding. 8. Budget amendments. ` , � �, ._. ' RAILROf�U C oPy Ir /��`i l i`/ THIS AGRE MENT, made and entered into by and between the CiTY �F C7�� SA!NT PAUL, here i n f ter cal 1 ed the "C i ty", the BURL I NGTON NdRTH RN RAILROAD C PANY, NC., hereinafter cailed the "Company", and the P RT AUTHORiTY 0 THE CI Y �F SAiNT PAUL, hereinafter called the "Authori y", WITNESSETH: WHEREAS, y cond mnation proceedir�gs, the City by Final Order 84- 21 approved Jun 5, 1 4, condemned an 80 foot wide permanent st eet easement for he ope ing, widening and extending of Kasota AvenuelEn rgy Park Drive ov r and ross approximately 39,871 square feet t.91 S ac es) of the Compa y's pro erty in Blocks 23, 25, Tract B, Tract C and th 24 foot wide va ted al ey lying between said Block 23 and saad Tract in St. Anthony P rk Add tion to the City of St. Paul, all as shown on Exh bit � �� "B" attached ereto a d made a part hereof. The agreed consideration for -�'�:����� A��h�.��:� the street ea ement ondemned was $49,838.75 of which $24,483.29 has been paid by e City to the Company in cash and $25,355.46 was cred ted r ; ���I� to the Compa y's ac ount as benef its to the remainder of the Compa y's . �:�; =`r`` property lyin to the o�th of the easement area condemned as a resul af � ; providing str et acce s; and WHfRfAS, he Cit , with agreement of the Company and the Author ty, has caused to be vac ed by Council File 84-987, adopted by its Counci on July 24, 198 and ap roved by its Mayor on July 25, 1984, those porti ns of Bartlett ourt, G'bbs Avenue and the east-west alley adjoining he � U`�- . � � �`�.(I�,•, �! �;;� f south line of B ock D nd the north line of Block 30, said St. Anthony Pa k, shown outiine in b1u on said Exhibit "B" without the usual charge by he City for the ortions thereof accruing to the adjoining property of he Company; and, WHER�AS, he Co pany, in even exchange for said accrued partion of the vacated al ey and tre�t areas to its adjacent property �f the Comp ny within the ar a outl ned in orange on said Exhibit "B" as a part of he process of c struct ng Kasota Avenue/Energy Park Drive pursuant o a temporary co structi n easement untii July 1, 198fi or completion of the project, whi ever f'rst occurs, as included in said Condemnation F nai Order 84-721, the C mpany is agreeable ta such filling provided th it wiil not inte fere w th the pre-existing drainage and in accordance ith the grading s ope ar a as shown dotted on said Exhibit "B" and as det iled on Exhibit "D , being Authority Pian No. 8078-03, Sheet 4 of 32 and S eet SR of 32, att ched h reto and made a part hereof. WHEREAS the pa ties desire that the grade crossing as shown on said Exhibit "B" b prote ted by rai)road crossing signals, cantilever type ith gates, and t e Com any is wiliing t4 instaii, maintain and operate such signals upon the ter s and conditions hereinafter stated; and 1�MEREA the pa ties desire that the crossing surface proper sho id be constructed with a ubber surface, and the Company is wiliing to mai tain the surface pon th terms and conditions hereinafter stated; and 2 � • � � � • . . . .� ��� - WHEREAS, t e par ies desire that provisions be made for th instailation of power switchir�g equipment, shouid future condition warrant it, and the Co pany is wiiling to install and maintain the paw r switches upon t e term and conditions hereinafter stated; NOW, THEN, I iS AG EED: i. The Sta e of M nnesota, Department of Transportation, "Standa d Clauses for R iiway Highway Agreements", dated August 1, 1984, is attached heret as E ibit "A°, and hereinafter referred to as "Stand rd Clauses". Exc pt as reinafter expressly modified, all of the terms nd conditions set forth i the "Standard Ciauses" are hereby incorporated by reference and made part of this agreement with the same force nd effect as tho gh full set forth therein. All references in Exhibit "A to the State sha 1 be co strued to mean the City of Saint Paul. A11 refere ces to the Comm ssione of Transportation shali be construed to mean the Director of t e Depa tment of Public works. Sta�dard lauses Nos. 1, 2, 3, 4, S, 8a, 10 and 1 1 are deleted from this agreement. 2. The C mpany shall furnish all materiat for and with its reg iarly emptoyed f ces in tall a complete railroad crossing signai syste on Kasota Str et/Ene y Park Drive, as indicated on attached pian m rked 3 ' ' �I Li • ��.+ f � Exhibit "B". The lacem nt of the signals shall be in accordance with Par Vlli of the Manu 1 on U iform Traffic Controi Devices (MUTCD). Detaile pians, specifica ions a d the work to be done shall be subject to th approval of the ity of aint PauL iNork of ins 11 ing he signal system shall be prosecuted so as to e comp)eted with n i 2 onths after the date the Company is authorized o begin work. If the Com ny sh li determine it impossible to compiete the wo k within the peri d here n specified, it shall make a written request to t e City for an ex ension of time for compietion, setting forth therein t e reason for suc extens'on. 3. The cr ssing urface proper shall be furnished by the Author ty subject to th a�pro al of the Company as indicated on �ttached p1 ns marked Exhibi "B". 4. Any tw of the arties, by written notice to the third, can cause he fo)lowing cla se to t is agreement to be executed. . a The ompan shall fur�nish ail material for and with its regut rly emp oyed f rces install a complete power switching syste to se ice the track crossing Kasota Street/Energy Park Driv as fndi ated o attached plans marked Exhibit "B". 4 , �:� . ;' . ;; 5: The Cit and thority wi11 reimburse the Company as provid d herein for onl such tems of work and expense as are necessary a d proper for the ropose work. Oniy materials actualiy incorporated in o the project wil be eli ibie for reimbursement. The City pa tion ( eimbursable with MSA Funds) will b.e paid to t e Company in acc rdanc with Article 9 of the Standard Clauses, Exhibit " ". The Authori y porti n will be paid to the Company when the praject as been complete and th �inal gill has been approved by the City. It is unde tood hat the following estimate is for informatio al purposes oniy. The es imated cost of the work to be done by the Comp ny hereunder wit its o n equipment and regularly empioyeci forces and in accordance wi h the ompany's agreements with such reg�iarly emplo ed forces is as ol►ows and in further accordance with detailed estim te attached here and m rked Exhibit "C". Material $ i i,800 Labor ��4 TOTAL $ 24,700 Material $ 60,200 Labor ��,� TOTAL $ 86,540 5 i� ` `; r% • ��= �, % � �� ;`-. Matecial $275,400 Labor $ 95,300 TOTAL $370,704 TOT ESTiMATED COST $481,900 Portion of st Atl cated to City: Crossing ork 50 0 $ 12,350 Signal Wo k 50� $ 43,250 Power Sw'tches 03b , 185�350 TOT $240,950 Portion of ost All cated to the Authority: --- - Crossing ork 5 � $ 12,350 Signal W rk 50� $ 43,250 Power S itches 0% 185�35� TOT L $240,950 5. in the event 't is determined that a change from the foreg ing statement of work t be performed by the Company is required, it sha11 be authoriz�d o y by a amendment to this agreement issued by the �ity and the Authorit prior t the performance of the work invoived in the ci�a ge. 6 _y_. _ , .., ._ ,_.. _— __.. . _ __ ..._.,.. ,�.._,..,..�..,�w,.,�,,,..,,...�,,.�.,.�,�_. • �/ -�� ( ,_ , _,�.� . �{��,: , in the event it is ound that the work has not changed from th foregoing state ent o work to be performed by the Company, but th estimated amo nt in his agreement is tess than the actual cost f performing the work, hen an increase will be aiiowed to the extent f such actual co with t an amendment in accordance with paragraph 5 of Exhibit "A". 6. The said rade c ossing signal systems, crossing surface, and pow r switching syst m sha 1 be maint�ined and operated by the Company u n � completion of its ins allation, but this said obligation to maintain s id signai syste cros ing surface and power switching system s ii continue in ac ordanc with the law of the State as it sha}1 be from ti e to time in the uture. 7. The sig al syst m or power switching system, shatl not be remo ed uniess there as bee a determination that said systems are no io er required at t is ioc tion. If the signals or crossing surface are t be removed, the ompan upon request of the City shail reinstali it at s me other crossin withi the City on the Company's tracks. The location and division of ost of such reiocation shall be agreed upon between the Company and he Cit prior to such removaL 7 '/ - % - !. �`=i" , /r" ;: . . in the event tha either railway or street improvements wili necessitate a rearrangement f the signal, power switches or crossing surface, t e party whose im rovem nt causes said changes wili bear the entire cost f the same witho t obiig tion to the other. 8. The te of t is agreement shall be three years from date f agreement in hich ime it is expected that all work, inspectio s, billings, audit paym nts, including the installation of power switche if done, shall be ccompl shed. Any extension of the three year limit shall be with the appro al of a 1 parties to the agreement. 9. .The C PANY agrees to indemnify the AUTHORITY �nd the C TY against, and s ve the harmless from, loss and damage to proper�y, nd -- injury- to or eath o any person or persons, and from court costs nd attorney fees, and ex enses incident thereto, arising out of the work t be performed he under y the COMPANY, and caused by the sole negligenc of the COMPANY or an contractor for the COMPANY, or their respec ive officers, age s or e ployees. The COMPANY may purchase comprehen ive risK insuranc cove ge for its work under this project, and the cost of the premium for uch rn urance shall be reimbursed to the COMPANY by the C)TY, as par of th project cost, under the terms set forth in his AGREEMENT. 8 _ __ . .__. _. :_ .._r�.._,_... _�_ ._ _ _ _ , _ ,_ ___... ._ ,.��._,s..__.�..,�.�,,.._,..�,.,..�.�.,...:. . . �� l%..�.�. l� . � i / ♦ � . IN WtTNESS WHERE �, the parties have caused this agreement to e executed the da and y ar first hereinabove written. BURL(NGTON NORTHERN RAiLRO COMPANY �#--- �.� � . � gy =��1.�;: - '> r _ _ `,-L. F��. Y9C�P�. &-G:Ai. M�R� APPROVED AS 0 F4R . C1TY �F SAlNT PAUL n � -� � . . 1 �`��� :�,� � i.. .� � �,��� Assi �nt Cit tor � Mayor � , ; ; _ (�lC,,�` � ''� � � , �!ti � . By � f� Director of Fi ance an Management Director of Public Wor�c'�-' PORT AUTHURITY OF THE CtTY F SAf NT PAUL , � ' ! ,l. � : . � . .. ..._....... ,/f' / .� . . . I' �l�/' // �/ . . �'�-G-� , I ti � Byr �' i � 1�$�,. _.r� /Z"-�-t'�z't' �� / BY T S - , -_� 9 . . . . , ;,_ , �� - , �1 -�� ( � � /�=e: . ���`� STATE OF MINNESOTA DEPEIRTMENT OF TRANSPORTATION _ STANDARD CLAUSES FOR RAILWAY-HIGHWAY AGREEMENTS . AUGUST 1, 1984 � The S ate wi 1 review plans and specifications for the con struction of the rade s paration structure and approve the separation of grades of the racks f the Company and of the trunk highway, as shown in the plan and s ecifications ref2rred to in this agreement. � The S ate ag ees to let a contract pursuant to law for the constru�tion of t e high ay projeet referred to in this agreement, in accordance with s id pla s and specifications referred to in this agre - • ment. � The S ate ag ees that a11 work provided to be done by the State on the rig of wa of the Company shall be performed and comple ted in accordanc with s id plans and specifications in a manner satis factory to the C 'ef Eng'neer of the Company, or his authorized repre- sentative. The ate a rees that any contract let by it, for the per- formance, of any nstru tion work contemplated by this agreement, will ___ require the cont ctor o comply with all of the provisions relating t work on railroad right f way contained in "Minnesota, Department of Transportation, t. Pau , Standard Specifications for Highway Construc tion", dated Jul 1, 19 3, to furnish to the Company a Railroad Protec tive Liability I suranc Policy and to carry regular Contractor's Publ c Liability and Pr perty amage Insurance, both as specified in the Federal-Aid High ay Pro ram Manual, Volume 6, Chapter 6, Section 2, Subsection 2, an havin limits of liability, as specified in the spec"- f ications and sp cial p ovisions referred to in this agreement. Said Railroad Protect ve Lia ility Policy and evidence of said Gontractor's Public Liability and Pr perty Damage Insurance, executed by an insurer qualified to wri e such policies in the State of Minnesota, shall be delivered to the Compan prior to the entry upon or use of the Company's property by the ontrac or. � The tate r serves the right to make such changes in the plans or charact r of t e work, as the work under the contract progre - ses, as shall, i the C mmissioner of Transportation's judgment, be reasonaUly neces ary to cause the agreed highway project to be in all things construct d and ompleted in a satisfactory manner, and to tha end, and as supp ementa to any contract let for the construction of said project, tv enter 'nto any supplemental agreement, with the can- tractor for the erfo nce of any extra .work or work occasioned by a y necessary, adva ageous or desirable change in the plans. Any such changes in plan r the haracter of work, involving ttie Comgany's fac I.- ities or propert , will be subject to the approval of the Company. EXHIBIT "A" - Pagc 1 • . ' . �r,.�r�,- � �',G y The St te agr es to pay the entire cost of the work to be performed under t e contr ct to be let by the State, including the State's supervisi n of t e contract work, provided, however: a.) that othing herein contained shall prevent the State from pursu"ng and enforcing any of its common law and statutory right , whic it may have against any tortfeasor, including any c ntract r and the Company; b.) that hen th Company has liability or obligation to the Unite State or the State for any portion of the railway- highw y proj ct, the Company shall pay its share of the railw y-high ay project in the manner and to the extent se forth elsewh re in this agreement. ' 6. The p ovisio s contained in Federal-Aid Highway Program Manual, Volume 6, Chapte 6, Section 2, Subsection 1, and Volume 1, Chapter 4, Sectio 3, sh 11 apply to the railway-highway project, rega dless of the method of inanci g the pro�ect. 7. If t e Comp y enters into a contract or agreement with a contractor, to p rform 11 or any portion of the Company's work set forth in this ag eement, the Company for itseZf, its assigns and succe sors in interest, agr es tha it will not discriminate in its choice of contractors and ill in lude all of the nondiscrimination provisions t forth in APPENDI "A", ttached hereto and made a part hereof, in any such contract or agreem nt. 8. The ompany agrees that its representative in eharge of t e work set forth i this greement shall furnish the State`s Engineer i : charge of the pr ject: � " orm 21 91, Minnesota Departmenr of Transportation, D ily Ut'lity Report", signed in triplicate, showing t e mber o men on payroll, classification, and tot31 ho rs rked, nd equipment used, not later than the day fol owing e dat the work was performed. ' b.) ull de ailed information as to progress of work and mount f labor and material used as of the time of equest. In additio to th foregoing records and acts, the Company will from time to ti e, mak such other reports, keep such other records nd perform such ot er wor in sucti manner and time as may be necessary o enable the Stat to co lect and obtain available Federal Aid. 9. To he ext nt set forth in this agreement, the State wil reimburse the mpany or actual expense incurred performing the wor set forti� in t is agre menC. Payments will be made in accordanee wi h the following; � EXIIIBIT "A" - Page 2 _ - • C � �;�-�- /f ; a• ) �t east 9 °, of partial bills marked "Pro;ressi��e Bill �`o• 1, �o. �, etc." or "First, second, etc." signed bv an otf'cer of the Companv, rendered in duplicate. Partial bil s shal be based on actual costs that can be substanti ted by heckin the Company's records but do not need to be in etail: or, b. ) :\t east ; ; of partial bills marked and signed, as req ired a ove, based on the Company Engineer's estimate or he oer entage ot completion of the various �ost rc.>i bursab e items, as sho►�n on the detailed estimate, t•}ii li is a tached to znd made part of this agreement , �ub ect to the �tate Engineer's concurrence and approval of aid co pletion percentage. In no event �Jill a combin tion � ot artial billing based on actual cost, and Cngineer's cst mates, be reimbursable. c. } :at c�ast �� ",; of tinal bill marked "Final", signed 'e� an oif cer ot ttle Compan�•, z•endered in septuplet , in accoreia ce �cit Fecier: l aid fiigni�ay Pro�ram �lanual �'olume 1, Chanter �, ection �. �aid final bill stiall b� a cor�plete, clet iled a d itemi�ed statement or all items ot ��ork per 'ormeci �� the Comuany, as shov�n in the appronriate exh bit or axhibits lttached to this agreement. d. ) Fin 1 pa��rn nt ticill be rnade arter audit ot the finai �ill. The Compan sllall l�eep account ot its �.ork in such z wav --- - tha said � ccounts ;n�r be readilv audited. In the event ttia any , ount prc��iously paid to tiie Companv is in e�c s� or ;ie a�tual :,ost deterr�ined b�� audit, the Conpan -, � upo noti� of t!;e S.;ite, s1ia11 pa}• to the State the ' ciif 'erence J� In }ie eve t �hat the State �oes not ente� into a contrac for construction o ' the p oject conte:nplated bv this a�reement on ar before ;i 1av t:celv �1'1 �ont}is arter the �iate t�iis agreement is fu12�- e�ecute�l, then eit er par v mav, at 1ny time ttierearter, ser�re notice or cancellation upon fie oth r part�•, bv registered :�ail, and this z�reemen shall immediatel�• e canc lled :ind terminated; provided, ho�Yever, that the Cor�pan�• �hnll e reim ursed in ;t�ll bv the State for alI reimbursabl costs incuireci zrter this a�reement is full�• exe�uted and prior to saic! concellation. � � Ti:� r�i:nbu -sable ,�ain.enance �.osts ;hall not ext�nd to ttie rep:ill' Jt :ltl�' ,l:i;n,i�e �o tkie bri.ige strticture i-estiltin� rrom the operations or tl�e �oeivan�• :or ���lli.;i� r11e Compan�- llas an}• common laia or stattitory li.ibili v. "i�i;� rei��bursa� ._: ;naintenance costs sh111 be limite to the a.ctual �o� �t l:tb r an�i materials used and to rental vaiue ot equipment tised, he ci.-.ttial cost of labor and materials and the rental �XHIBIT "A" _ Page 3 � . � � !?�==��^�-%r value of equipme t used. The actual cost of' labor and materials and t e rental value of quipme t referred to shall be ascertained in accordan e with the provisi ns of t e Federal-Aid Highway Program Manual, Volume , Chapter 4, Secti n 3. cept as hereinafter provided in the case of emergency repair , reim rsement shall be made only if the Company has submitted' its pr posed epairs to the State, including any estimate of cost of such rep irs, a d approval has been received f rom the State in writing in advan e of s rting work by the Company. If the Company is unable to obtain the St te's approval of the proposed repairs, it may request and requ're the State to let a contract for the necessary work In the event of n emer ency requiring immediate repairs to said bridg structure in ord r to m intain railroad traffic, the Company shall be only required to notify the State as soon as reasonably possible that the emergency ha arise and that the Company is proceeding with the work. The Compa y here y acknowledges that it may be necessary to fil a legislative cl im for reimbursement of any costs incurred before Sta e Funds are encumb red in an amount sufficient to cover the costs of the work. In all ev nts, r imbursable maintenance costs shall be limited o necessary repair . If any main enance wark is such that it cannot be performed by th Company with its own eq ipment and regularly employed forces, the Comp ny may contract the work. However, the Company shall not award the contr ct or start work un il the contract has been approved by the Co�nissioner ' of Transportatio and t e necessary funds have been encumbered. 12. I is fu ther agreed by and between the parties hereto anything to the ontrar hereir� notwithstanding, that the Commissioner of Transportatio of th State of Minnesota is acting in his officiai capacity only an that e shall not be personally responsible or liabl to the Company o to an person or persons whomsoever for any claims, damages, actions or ca ses of action of any kind or character arisin out of or by rea on of he execution of this agreement or the perform ce or completion of the pr ject provided for herein. 13. B fore t is agreement shall become binding and affecti e, it shall have re eived he approval of such State officers as the law may provide in a dition to the Commissioner of Transportation. 14. T e laws of the State of Minnesota shall govern all questions as to he exe ution, nature, obligation, cor.struction, vali ity and performance f this agreement. 15. I it ap ears to the Conipany at any time subsequent to the date of this agreem nt and prior to final completion of such work that the actual ost of such work will exceed the estimated cost, the Company shall i ediale y so notify the State in writing, thereof, an , after the additi nal fu ds are encumbered, notice of the encumbrance o the Company will have t e affect of amending this agreement so as to . include the supp ementa cost of such work. ; EX1iIBIT "A" - Page 4 j � , I �. � ' • 16'. As rovide under Minnesota Laws 1980, Ctiapter 614, Sec. �C=��;1 -/�;'� , S1, all books, rec rds, d cuments, and accounting procedures and prac- I tices of the Compa y rele ant to this contract are subject to examinati by Mn/DOT and eith r the egislative auditor or the State auditor as appropriate. 17. The MBE r.e uirements of 49eFR, Part 23, apply to this - a�reement. The Co pany s all insure that minority bvsiness enterprises as defined 'in 49C , Part 23, have the maximum opportunity to partici- pate in the perfor ance o contracts, financed in whole or in part with Federal funds. In this r gard, the Company shall take all necessary and reasonable steps i accor ance with 49CFR, Part 23, to insure that minority business nterpr ses have the maximum opportunity to compete for and perfonn an Contr cts awarded under this agreement. The Company shall not discrimi ate on the basis of race, color, national origin, or sex in the award a d perf rmance of contracts under this agreement. Failure to carry o t the bove requirements shall constitut� a breach of this agreement� an may r sult in termination of the agreenent by Mn/DOT and possible debar ent f om performing other contractural services with the Federal Depart ent of Transportation. � 18. The Railro d and/or its contractor will furnish and use only materials man factur d in the United States in executing the w�rk under this contrac , in c nformance with the provision of Minnesota Statute i6.0721 (S pp. 19 3) as anended by Minn. Laws 1984, Chapter 440, Sec. 1 (Preference for Am rican Made Materials) , except for petroleum � products which are hereby exempt: All ateri ls other than steeL and petroleum products purchased far gove nmenta purposes on the Project must be manufactured in the United Stat s in a cordan�e with Minn. Laws 1984, Chapter 440, Sec. 1, exeept whe e the tate determines that: (a) The mate ials a e not manufactured in the United States in sufficie t or r asonably available quantities . (b) The pric or bi of the materials exceeds by more than ten per cent the pr ce or bid of available and comparable mater- � ials man factur outside the United States (c) The qual'ty-of t e materials is substantially less than the quality f compa ably priced available materials manufactured outside f the U ited States. A Contra o� may furnish and use materials which were not manufactured withi the Un'ted States only by demonstrating to the sat- isfaction of the St te tha the use of such materials meets at least one or more of the cond'tions pecified in above paragraphs (a) tt�rough (c) . "Manufact red in the United States" means manufactured in whole or in substa ial pa t within the United States or that more than SO percent of the c mponen parts [hercof were manufactured in whole or . in substantial part in the UniCed States. Exce t wher ehe cost of steel materials incorporated in the work does no[ e ceed 0.1 percent of the total contract cost or $2,500, whichever i great r, all manufacturing proc�sses for steel material must occur in the United States. Al.l bids must be based on £ur nishing domestic st el. EXf1IBI'T "A" - Yagc S