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CANADIAN PACIF'IC RAILWAY ~SeMces SuIte 635 SOl Marquette AYElIlUe South MImeopQIis MInnasoto 55402 fox (612) 904-<1010 July 6, 2007 FILE: Hastings, MN X-RIV-391-09-R City of Hastings Attn: Mr. John Grossman 101 E. 4th Street Hastings, MN 55033 Dear Mr. Grossman: RE: PROPOSED QUIET ZONE I SIGNAL RELOCATION Second Street - DOT # 391233Y Mile Post 391.09 - River Subdivision Hastings, Minnesota This will aCknowledge receipt of HDR's final plan set dated June 26, 2007 concerning the proposed roadway reconstruction and improvement project schedule along 2nd Street and the installation of emergency swing gates at 3rd Street in Hastings. Copy of final plan set attached. To accommodate this roadway project Canadian Pacific Railway (CPR) will be required to relocate the existing warning devices that consist of flashing light signal and half roadway gate from the west side of the main line track. CPR has reviewed the plans and has no objections to the city's roadway project as proposed provide all cost associated with this project is at loot city expense. CPR will furnish labor, material and equipment to relocate the warning devices in conjunction with city's assigned contractor. The agreed upon lump sum cost for CPR signal relocation work is Twenty-Five Thousand ($25,000), Please noted that any cost incurred by CPR for flagging service, repairing damage to tracks, including disturbance of their alignment and surface, interlocking or other facilities which it maintains, caused by or resulting from the city or its assigned contractor for this roadway improvement project, will be submitted to the city for payment. Any flagging protection or watchman service required by the railroad for the safety of railroad's operations because of the work being performed by the city or its assigned contractor or work incidental thereto, shall be provided by the railroad and submitted to the city for payment.