Lititz Borough Council on Oct. 28 approved a construction management agreement with Norfolk Southern for the borough’s runabout rail line project.

Staff said the agreement had been reviewed by the borough solicitor and a grant consultant. The agreement includes language referencing Georgia because Norfolk Southern is regulated by the Georgia Department of Transportation as a result of corporate headquarters/location requirements; staff recommended signature so work could move forward. Staff said the project could go to construction in 2026, subject to potential delays from the pending rail merger with Union Pacific.

Council discussed cost risk. The meeting record includes an estimated project cost of $2,380,000 stated as "good as of late 2024." Staff said the state grant provides a 50% match up to $1,500,000 (a reimbursement model), and the borough has general obligation bond capacity to fund upfront costs until reimbursement occurs. Several council members expressed concern that the agreement, as drafted, did not include an explicit cost ceiling for which Norfolk Southern would be contractually responsible; staff said Norfolk Southern retains control over some rail‑specific work while competitive bidding would apply to isolated work when permitted by the railroad.

Council moved and approved the agreement by voice vote.

Provenance: Presentation and discussion began at roughly 33:28 and the motion and vote took place near 37:56 in the transcript.

Speakers (selected):
- Elijah Yurek, staff member (presentation and memo reference)
- Mary (council member) — questioned cost ceiling

Why this matters: The agreement commits the borough to a construction pathway for a rail piece of infrastructure with municipal financial exposure; grant reimbursement and bonding were discussed as risk‑mitigating measures.

Ending: Council approved the agreement and directed staff to coordinate with the grant consultant and the railroad; council recorded concerns about the absence of a contractual cost ceiling.