The city has approved an agreement with Union Pacific Railroad to construct a pedestrian railroad crossing at Lafayette Street.

City council members unanimously approved an ordinance Tuesday night authorizing Mayor Sandy Lucy to execute the new agreement calling for construction of the improvements. The project will include placement of asphalt between the railroad tracks, extending the railroad track panels and installing base rock and concrete sidewalks.

The new city budget calls for the improvements to be constructed in 2015.

Earlier this year the city approved an agreement with the railroad for design work related to the project.

Under terms of the new agreement, the city will pay Union Pacific $8,268 for the rights to “facilitate” construction of the project.

In 2012, the East-West Gateway Council of Governments board of directors approved an 80-20 Surface Transportation Program (STP) enhancement grant for the Lafayette Pedestrian Crossing project.

If Union Pacific approved the project based on the preliminary design work, the railroad will continue to work with the city to develop final plans, specifications and material and cost estimates for the construction work, according to the agreement.

The total estimated cost is $300,000. The STP grant will cover $240,000 of that total. The city’s matching amount will be $60,000.

Two 12-foot-wide sidewalks on both sides of the street at the railroad crossing are being proposed along with modifications to the signal and arms at the crossing.

The city applied for an enhancement grant in 2010 to fund the project, but that application was not approved.