NIAGARA FALLS — Construction on the first two phases of a new train station project will begin this year, with bids for the second phase expected to go out next month, the city’s senior planner told lawmakers Monday.

While funding is still needed for construction of the third phase, full funding is in place for the first two phases of $40 million Niagara Falls Intermodal Transportation Center & International Railway Station, said Senior Planner Thomas J. De- Santis.

With plans to relocate Amtrak’s Niagara Falls station to a renovated 1863 customs house in the works at least a decade, the city will be ready to put the second phase of the project out to bid at the next meeting of the City Council, DeSantis said.

The project’s second phase includes replacing a CSX railroad bridge and the full reconstruction of Route 104 between Ontario and Depot streets.

That phase of the project, as well as the work at the former U. S.

Customs House on Whirlpool Street, which makes up the first phase, have both been fully designed and will have shovels in the ground this construction season, DeSantis said.

As for the third phase of the project — the construction of the new station — design work is about 60 percent completed. The full design work is expected to be completed by January. Under the initial schedule, construction work was projected to start by 2012 on the third phase and is still on schedule, DeSantis said.

Plans for the site also call for the development of an Underground Railroad interpretive center.

In other matters:

Lawmakers awarded a contract for the reconstruction of 72nd Street between Buffalo Avenue and Niagara Falls Boulevard to Accadia Site Contracting of Depew. The $2.6 million award was the lowest of seven bids the city received. Site work on the project could begin within a month, said City Engineer Thomas Radomski.

Fire Chief William D. MacKay told lawmakers that out of 2,300 fire hydrants in the city, 72 are considered “out of service,” or nonfunctional, by the Niagara Falls Water Board. In addition, dozens more fail to meet a tighter Fire Department standard for flow rate, MacKay said. Officials from both the city and the Water Board said they plan to discuss the matter at Thursday night’s Water Board meeting.

Lawmakers voted to approve a $150,000 settlement with Traci L. DaCosta of 85th Street, who was involved in a crash with a city vehicle in August 2007.