21 January 2010

Rhineland Settles With CP on Horndean Crossing

Horndean Manitoba - The R.M. of Rhineland voted to accept a settlement from CP Rail, after meeting with a mediator.
 
CP Rail and the R.M. of Rhineland had an ongoing dispute because of crossing fees being charged by CP Rail regarding the Horndean rail crossing.
 
Acting CAO Terry Fehr said after the province let that road go to the municipality, the billing began.
 
"We started getting bills for roughly $200 per month for maintenance at that railway crossing," he said.
 
The R.M. of Rhineland first attempted to have the crossing removed, commissioning a safety assessment study along with CP. "The lights are not going to be able to come down," Fehr said. "Transport Canada will not allow it."
 
Instead Transport Canada found that several driveways are too close to the crossing. That prompted them to order the installation of LED crossing lights, which are more visible at an angle. "CP will pay the labour and the R.M. will pay for the lights," Fehr said.
 
But the R.M. of Rhineland has a bigger bill to pay. Since the dispute began, the R.M. has not paid CP for their maintenance fee. That's close to seven years of accruing the debt, which is now estimated at close to $17,000.
 
However in the agreement, that amount is reduced. CP will pay for half the safety assessment study which will come out of money owed. The cost of upgrading with LED lights will be paid by the R.M. but an equal amount will be deducted from what they currently owe. That amount is expected to be close to $5,000.
 
A payment plan will be set up for the R.M. to pay off what they owe.
 
And in the end, the R.M. will not be getting away with skipping maintenance payments. The monthly fee will continue.
 
Greg Vandermeulen.