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New Business 10/01/2013 Í»°¬»³¾»®îðôîðïí ÌÑæ Ó¿§±®­·²¬¸»Ó»¬®±°±´·¬¿²Ý¸·½¿¹±ß®»¿ ÚÎÑÓæ Õ¿®»²Ü¿®½¸Ì±³É»·­²»® Ю»­·¼»²¬ôÊ·´´¿¹»±ºÞ¿®®·²¹¬±²Ó¿§±®ôß«®±®¿ ÌÎßÝݱݸ¿·®ÌÎßÝݱݸ¿·® Û¨»½«¬·ª»Þ±¿®¼Ý¸¿·®ôÓÓÝÛ¨»½«¬·ª»Þ±¿®¼Ê·½»Ý¸¿·®ôÓÓÝ ÍËÞÖÛÝÌæÚ»¼»®¿´Î¿·´Í¿º»¬§Î«´»³¿µ·²¹ß½¬·±²ß´»®¬ ÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁ ß­½±½¸¿·®­±º¬¸»­«¾«®¾¿²Ý¸·½¿¹±´¿²¼ÌÎßÝݱ¿´·¬·±²¬¸¿¬©¿­º±®³»¼·²îððèô©»©¿²¬»¼¬± ³¿µ»§±«¿©¿®»±º¬¸»±°°±®¬«²·¬§º±®´±½¿´¹±ª»®²³»²¬­¬±©»·¹¸·²±²¿º»¼»®¿´®»¹«´¿¬±®§³¿¬¬»® ·²ª±´ª·²¹¿½®·¬·½¿´®¿·´­¿º»¬§·­­«»ò Ú±´´±©·²¹¬¸»Ò¿¬·±²¿´Ì®¿²­°±®¬¿¬·±²Í¿º»¬§Þ±¿®¼øÒÌÍÞ÷·²ª»­¬·¹¿¬·±²·²¬±¿ÝÒ»¬¸¿²±´¬®¿·² ¼»®¿·´³»²¬²»¿®Î±½µº±®¼·²îððçô©»©»®»¿´»®¬»¼¬±¬¸»¼¿²¹»®­°±­»¼¾§¬¸»ÜÑÌïï﬿²µ½¿® ¬¸¿¬·­«­»¼¾§¬¸»®¿·´·²¼«­¬®§¬±¬®¿²­°±®¬º´¿³³¿¾´»¸¿¦³¿¬´·µ»»¬¸¿²±´¿²¼½®«¼»±·´¬¸®±«¹¸±«¬ Ò±®¬¸ß³»®·½¿òײ¿²«¬­¸»´´ô¬¸»ÒÌÍÞ¸¿­©¿®²»¼®»¹«´¿¬±®­­·²½»ïççïô¬¸¿¬¬¸»ÜÑÌïï﬿²µ½¿® ¸¿­¿¸·¹¸·²½·¼»²½»±º®«°¬«®·²¹©¸»²·²ª±´ª»¼·²¿½½·¼»²¬­¿²¼¼»®¿·´³»²¬­ò 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½¸¿²¹»­ ¼»¬¿·´»¼ ·² ¬¸·­ ­«³³¿®§ ¿²¼ ·² ¬¸·­ ®«´»³¿µ·²¹ ¼±½«³»²¬æ ¸¬¬°­æññ©©©òº»¼»®¿´®»¹·­¬»®ò¹±ªñ¿®¬·½´»­ñîðïíñðçñðêñîðïíóîïêîïñ¸¿¦¿®¼±«­ó³¿¬»®·¿´­ó®¿·´ó°»¬·¬·±²­ó¿²¼ó ®»½±³³»²¼¿¬·±²­ó¬±ó·³°®±ª»ó¬¸»ó­¿º»¬§ó±ºó®¿·´®±¿¼ó¬¿²µó ½¿®á«¬³Á½¿³°¿·¹²ã­«¾­½®·°¬·±²õ³¿·´·²¹õ´·­¬ú«¬³Á³»¼·«³ã»³¿·´ú«¬³Á­±«®½»ãº»¼»®¿´®»¹·­¬»®ò¹±ª д»¿­» ¿½¬ »¨°»¼·¬·±«­´§ ¬± °¿­­ ¬¸·­ ®»­±´«¬·±²ò »­±´«¬·±² ­¸±«´¼ ¾» ­«¾³·¬¬»¼ ·² ±²» ±º ¬¸®»» ©¿§­æ ̸®±«¹¸ ¬¸» Ú»¼»®¿´ Ϋ´»³¿µ·²¹ ᮬ¿´æ ¸¬¬°æññ©©©ò®»¹«´¿¬·±²­ò¹±ªò Ú±´´±© ¬¸» ·²­¬®«½¬·±²­ º±® ­«¾³·¬¬·²¹ ½±³³»²¬­ò Ê·¿ Ú¿¨æ ïóîðîóìçíóîîëïò Þ§ ³¿·´æ ܱ½µ»¬ Ó¿²¿¹»³»²¬ ͧ­¬»³å ËòÍò Ü»°¿®¬³»²¬ ±º Ì®¿²­°±®¬¿¬·±²ô É»­¬ Þ«·´¼·²¹ô Ù®±«²¼ Ú´±±®ô α±³ Éïîóïìðô ᫬·²¹ ͧ³¾±´ Óóíðô ïîðð Ò»© Ö»®­»§ ߪ»²«» ÍÛòô É¿­¸·²¹¬±²ô ÜÝ îðëçðò ײ­¬®«½¬·±²­æ ß´´ ­«¾³·­­·±²­ ³«­¬ ·²½´«¼» ¬¸» ¿¹»²½§ ²¿³» ¿²¼ ¼±½µ»¬ ²«³¾»® º±® ¬¸·­ ²±¬·½» ø¿­ ­¸±©² ·² ¬¸» ³±¼»´ ®»­±´«¬·±²÷ ¿¬ ¬¸» ¾»¹·²²·²¹ ±º ¬¸» ½±³³»²¬ò ̱ ¿ª±·¼ ¼«°´·½¿¬·±²ô °´»¿­» «­» ±²´§ ±²» ±º ¬¸» ¬¸®»» ³»¬¸±¼­ ±º ¼»´·ª»®§ò ß²§ ¯«»­¬·±²­ §±« ³¿§ ¸¿ª» ±² ¬¸·­ ³¿¬¬»® ½¿² ¾» ¼·®»½¬»¼ ¬± Ú·¹¸¬Î¿·´Ý±²¹»­¬·±²à¹³¿·´ò½±³ò ̸¿²µ §±«ÿ September 24, 2013 Mr, Jack Koraleski President & CEO Union Pacific Corporation 1400 Douglas Street, 19 Floor Omaha, NE 68179 Via email: jackkoraleski@up.com Dear Mr. Koraleski, VILLAGE HALL 200 S. HOUGH ST. Thank y ou for y our our letter of Au 5 p rovidin g p ers p ective rovidin the Class I railroad p ers p ective on the BARRINGTON, IL6001 O shipment b rail of flammable hazmat like crude oil and ethanol. While I had not intended p Y (847) 3043400 to reply to it, current circumstances indicate that a further explanation of our April 2012 PRESIDENT &BOARD MANAGER'S OFFICE PHMSA petition are in order. However, before I outline our perspective on the matter, I TEL (847) 304- 433 Fax (847) 30 like to state that we, in the Village of Barrington and the Chicago region would g g g reater g , appreciate the great support Union Pacific has provided to our communities during our COMMUNITYAND FINANCIAL SERVICES long history of working together. I have very much enjoyed working with your many TEL (847) 3043400 FAX (847) 381 -7506 representatives in the area including Wes Lujan, and his predecessor, Tom Zappler. DEVELOPMENT SERVICES TEL (847) 3043460 The 2012 petition to PHMSA requested that federal regulators mandate a retrofit program FAx (847) 381.1056 for the existing fleet of DOT -111 tank cars, and that real time electronic train consist PUBLIC WORKS 300 N. RAYMOND AVE. information be provided to local emergency responders in the event of a rail accident. On BARRINGTON, IL 60010 August 28, I offered testimony (attached) before the Federal Rail Administration and TEL (847) 381.7903 g FAX (847) 382 -3030 PHMSA in Washington, D.C. at a public meeting on rail safety. As explained in my PUBLIC SAFETY commentary, in light of the horrific tragedy in Lac Megantic, Quebec this summer that BOO N. N ORTHWEST BARRINGTON, IL killed 47 p eople and caused hundreds of millions in ensuin dama es � I" it is well p ast time 600 6001 p p b g POLICE for the entire rail industry — tank car manufacturers and lessors, shippers and the railroads TEL (847) 3043300 — to address the "Ford Pinto like" DOT- 111 tank cars. It is imperative that the fleet be Fax (847) 381.2165 retrofitted, as these tank cars constitute two thirds of the fleet of rail tank cars carrying FIRE TEL (847) 3043600 ethanol, crude oil and other flammable hazmat on unit trains across our country in ever FAX (847) 381 -1889 increasing numbers. None of the first responder training efforts you mention in your letter address the real issue of the necessity to rp event accidents from occurring in the first place. Clearly, the existing DOT -111 tank cars are a weak link and will remain so for the three -plus decades they will remain in service for the shipment of these flammable hazardous commodities. Our 2012 PHMSA petition for rulemaking and my comments submitted to FRA & PHMSA last month were based on the findings of the National Transportation Safety Board and its investigation of the rail tragedy in Cherry Valley, Illinois in 2009. While we understand that most of the DOT -111 tank cars that transport packing groups I and II materials are not owned by the rail industry, they are operated by the rail industry WWW.BARRINGTON- IL.GOV for the transport of explosive and flammable hazmat. It is the rail industry, under the auspices of the AAR's North American Tank Car Committee, which sets the design standards for these tank cars. It is the rail industry that has ignored since 1991 the repeated warnings of the NTSB that these tank cars pose a high risk of rupture in a derailment and ignored the Board's recommendation to improve the standards. It is the rail industry that told regulators in 2011 that the cost of a safety retrofit for these tank cars would amount to about $15,000 per car. It is the rail industry that created the regulatory "crisis" that now exists in the aftermath of Lac - Megantic by failing to correct these safety flaws inherent in the DOT -111 decades ago. While you correctly point out that the overwhelming majority of hazmat rail shipments safely complete their journey, it is the low frequency, catastrophically high impact incident like Lac- Megantic that could be prevented with a retrofit investment. We have noted in our research on liability surrounding the common carrier obligation of railroads to transport hazmat like ethanol and crude oil, that the rail industry has voiced concern about covering the liability costs of "worst case scenarios" in a catastrophic release of hazmat. Industry has rightfully acknowledged that while the risk is minute, the cost implications are such that a nightmare scenario release could bankrupt even a Class I railroad. One can apply that same logic to a cost - benefit analysis of retrofitting the existing DOT -111's because it would minimize the scope of consequences in a train accident involving these tank cars. It is for this reason, that we would ask UP to support a retrofit program in comments to PHMSA. By doing so, your company would be a leader in creating momentum for a profound step in the right direction on the rail safety front. As you stated in your letter, "UP is committed to working with you and the Village of Barrington to provide a safe and sound rail operation." Please join us, then, in encouraging the retrofit of the thousands of defective DOT -111 tank cars and assuring real time electronic train consist data to our first responders. In addition to providing job opportunities in the Chicago region given its base for numerous tank car manufacturers, these measures will also greatly enhance the safety of rail employees, cargo, rail infrastructure, residents, and the environment in communities across North America. We look forward to a continued, strong partnership with Union Pacific, Sincerely, Karen Darch Village President cc: T. Weisner, Mayor of Aurora, IL D. Bennett, Executive Director, MMC UNION PACIFIC CORPORATION 1400 Douglas Street, 191h Floor Jack Koraleskl President and CEO Omalia, Nebraska 68179 P 402 544 6400 F 402 501 2120 jackkoraleski @up.com August 5, 2013 Village President Karen Darch Village of Barrington 206 South Hough Barrington, IL 60010 Dear Village President Darch, First and foremost, Union Pacific Railroad (UP) is proud to operate in the Village of Barrington and we appreciate the strong partnership we have developed. UP shares your commitment to rail safety and efforts to promote the safe and secure transportation of passengers and freight on the lines in your community. In light of your recent editorial in the Wall Street Journal, I would like to take the opportunity to provide you some information and perspective from a Class I Railroad, specifically UP's role and practices in the transportation of ethanol, crude oil and other hazardous materials on our trains. In regards to rail tank cars, the railroad's primary role is to transport our customers' products using their tank ears. The predominant industry business practice is that the individual customer owns the tank car, or a leasing company owns the car and leases it to the customer. It is important to note that the vast majority of rail car leasing companies are headquartered and operate in the Chicagoland region. For example, GATX, GE Transportation, First Union Railcar and Union Tank Company are all headquartered within the City of Chicago or Cook County. These companies own billions of dollars in railroad tank car assets. Although the article focused on the railroads, we wanted to point out this important clarification as you continue your discussion on tank car safety improvements. All of that said, UP and the entire rail industry work closely with tank car owners and manufacturers. The U.S. Department of Transportation (DOT), Transport Canada (TC) and the Association of American Railroads (AAR)- Nortli American Tank Car Committee issue tank car regulations and standards. DOT and TC issue federal regulations, while the AAR -North American Tank Car Committee sets industry standards. The Tank Car Committee's standards exceed the federal requirements and DOT -111 tank cars for crude oil and ethanol ordered after October 2011 meet these Committee standards, Nearly 25 percent of the tank cars used to move crude today were built to the higher specifications spelled out by the Tank Car Committee — and that number will continue to grow. Also, regarding the retrofit estimate of $15,000 used in the Wall Street Journal editorial, industry experts have indicated that the cost is probably closer to four times that amount, Through UP's emergency preparedness efforts and technological advances, we have taken extensive measures as a railroad and industry to increase the safe and efficient transporting of passenger and freight cars. As you may already know, a Class I freight railroad, such as UP, is wmP,com BUILDING AMERICA& obligated to transport the products that our customers contract us to carry. As a common carrier, we transport all materials (Hazardous or otherwise) in accordance with federal law, industry standards, and other operating fules to safely and efficiently move freight. Pursuant to federal law, transporters of oil (both non - hazardous and hazardous) are required to have a written emergency response plan. Union Pacific developed its Hazardous Material Emergency Response Plan (HMERP) to meet this requirement. UP also has an established Hazmat Team to respond to and manage incidents involving the release, or potential release, of "oils" during an incident. To support these safety efforts, UP offers local communities the opportunity to participate in our extensive training acid preparedness programs involving specialized safety training for rail personnel, as well as local first responders. In a typical year our training reaches about 10,000 people across our 23 -state network. In fact, we recently conducted tank car training at our Proviso Yard on April 23 and participated in a multi- agency drill in Rochelle on May 8, 2013. In 2012, railroads set new overall safety records, continuing a string of safety achievements reaching back decades. Although UP does not currently transport crude oil through Barrington, there are positive statistics provided by the AAR that demonstrate a tremendous safety record in moving hazmat, including crude oil. For example, an astounding 99.9977 percent of all rail hazmat shipments reach their destination without a release caused by train accident. Lastly, rail hazmat train accident rates have declined by 91 percent since 1980. These solid numbers demonstrate our industry's efforts in applying safety practices, policies and technology to make it one of the safest and most efficient forms of transportation. Again, UP is committed to working with you and the Village of Barrington to provide a safe and sound rail operation. We want to continue our partnership on rail safety measures and enforcement. Thank you for your efforts to support the enhancement of safe practices. Please feel free to contact me if you have any questions. Sincerely, www.up.com BUILDING AMERICA RESOLUTION NO. A RESOLUTION SUPPORTING THE RETROFIT OF EXISTING DOT-111 RAIL TANK CARS THAT TRANSPORT PACKING GROUPS I AND II HAZMAT BEFORE THE PIPELINES AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION IN DOCKET NO. PHMSA-2012-0082 (HM-251) WHEREAS, rail freight operations impact thousands of villages, towns, cities and counties across all regions of the United States of America; and WHEREAS, safe rail operations are of critical interest to local units of government based on (1) the need to prevent catastrophic accidents like the one that occurred in Lac-Megantic, Canada in July 2013; and (2) the responsibility local governments have to provide emergency response units to manage the impact of rail accidents and derailments in communities across the country; and (3) significant costs associated with clean-up, environmental remediation, medical expenses, other personal injury damages or wrongful death claims for community residents that have the potential to surpass the rail industry’s ability to pay for them; and WHEREAS, ethanol and crude oil are a large and exponentially growing segment of hazardous materials being shipped across the nation via freight rail, which will continue to be a preferred transport mode of choice for this hazmat; and WHEREAS, since 1991, it has been known to industry and federal regulators that there are safety- related defects in the DOT-111 tank car that serves as the primary tank car used in the shipping of these hazardous flammable materials via freight rail; and WHEREAS, the federal Pipelines and Hazardous Materials Safety Administration (PHMSA) regulates the safe transport of hazardous materials by railroads in the United States; and WHEREAS, the business decisions of railroad companies and hazardous material shippers impact the safety, environment, and emergency response system in the communities in which the freight railroads traverse, but state and local governments have no ability to regulate railroad operations; and WHEREAS, industry has failed to act in the last two decades to correct the known defects in DOT-111 tank cars, and waited until 2011 to seek government approval to upgrade safety standards for newly manufactured DOT-111 tank cars; and WHEREAS, a tank car expert from the National Transportation Safety Board testified in 2012 that a retrofit of existing tank cars is necessary because co-mingling existing unsafe DOT-111 tank cars with newly manufactured ones “does nothing to improve the safety in an accident”; and WHEREAS ,the petition for rulemaking submitted to PHMSA on April 3, 2012 by Barrington, Illinois and the Illinois TRAC Coalition reflects the point of view of local governments, which is supported by recommendations of the National Transportation Safety Board, that changes are needed in federal regulations and/or law to better protect public safety relative to DOT-111 tank car safety and train consist dissemination; and WHEREAS, the April 3, 2012 petition provides a compelling rationale for making long overdue changes in safe rail operations vis-a-vis retrofitting existing DOT-111 tank cars; and WHEREAS, the April 3, 2012 petition demonstrates that the cost of a DOT-111 tank car fleet retrofit for existing cars would be of nominal expense over the remaining average thirty-year lifespan for the existing fleet; and WHEREAS, PHMSA issued on September 6, 2013 (78 Federal Register 54849-54861) an Advance Notice of Rulemaking seeking by November 5, 2013 the input from local and state governments on the issue of retrofitting the DOT-111 tank car. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION 1 :The Mayor and Board of Trustees of the Village of Mount Prospect do hereby support the April 3, 2012 petition of Barrington, Illinois and the Illinois TRAC Coalition seeking new regulations to retrofit existing DOT-111 tank cars used to transport Groups I and II Packing Materials. SECTION 2: This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. SECTION 3: This adopted Resolution shall be sent to the Pipelines and Hazardous Materials Safety Administration in Docket No. PHMSA-2012-0082 (HM-251) urging expeditious action on the joint Barrington and Illinois TRAC Coalition April 3, 2012 Petition No. P-1587. AYES: NAYS: ABSENT: PASSED and APPROVED this ____ day of October, 2013. _____________________________________ Arlene A. Juracek Mayor ATTEST: ________________________________ M. Lisa Angell Village Clerk