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Council advances Hageman Junction rail crossing upgrades, seeks 90% state reimbursement
Summary
Council held first readings for contracts to install signals and surface improvements at Hageman Junction on US‑42 and approved a supplemental appropriation to fund the work pending reimbursement from a state rail development program.
Lebanon City Council advanced contracts and appropriations tied to safety upgrades at Hageman Junction on U.S. 42, holding first readings for a signalization contract and related surface-work contract and approving a supplemental appropriation in the capital improvement fund.
Council took the first reading of Ordinance 2025-027, which approves a contract with Railroad Signal Services Inc. for $282,176.58 to install a new railroad crossing signal and gate at Hageman Junction. The ordinance includes emergency language but was presented as a first reading because fewer than five council members were present.
A companion ordinance (2025-028) would approve a contract with Windrow Construction Group for $262,394.66 to perform the surface work required at the crossing. City staff said approximately 90% of the project costs would be reimbursed through a state rail development grant program described in the meeting as the Highway Rail Development Commission reimbursement program.
Council also considered Ordinance 2025-056 (capital improvement fund supplement), which would increase estimated resources in the capital improvement fund (Fund 408) to cover the city’s portion of the crossing upgrades pending reimbursement. City staff explained the city owns the rail line from downtown Lebanon out to Hageman Junction, after which private railroad company Genesee & Wyoming owns the remainder of the line.
Council members asked technical questions about the project — including whether an existing crossing nearby currently has a signal and whether adjacent track segments are part of the same city-owned line — and staff clarified that the project will install a gated, rail-actuated crossing with accompanying safety rails. One councilmember asked whether an additional crossing discussed previously would be included in the current contract; staff said it was not part of these contracts but that future funding might allow addressing other crossings.
Because of the lack of a full council quorum, the ordinances were presented as first readings; staff said the items would be placed on the next work-session agenda as voting items when the council could consider final adoption. Staff also said the bulk of the project cost is expected to be reimbursed by the state program covering rail crossing improvements.
The council packet and staff presentation indicate preliminary engineering is complete and that the city will coordinate construction logistics and reimbursement procedures with the state program and private railroad owners.
