Professional Documents
Culture Documents
Annual Report Narrative 2012 (Including Description and Board Structure And Litigation Reports)
Submitted as part of the MTA 2012 Annual Report Pursuant to New York State Public Authorities Law Section 2800(1)(a) (1), (6), (11), (13) and (17)
Operations/Technology Initiatives
Interagency ! NYC Transit (Subways) ! MTA Bus Operations (NYCT Department of Buses, MTA Bus Company) ! Long Island Rail Road ! Metro-North Railroad ! Bridges and Tunnels
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21
Safety/Security Initiatives
25
Interagency: MTA Police Department ! NYC Transit (Subways) ! MTA Bus Operations (NYCT Department of Buses, MTA Bus Company) ! Long Island Rail Road ! Metro-North Railroad ! Bridges and Tunnels
31
Interagency ! NYC Transit (Subways) ! MTA Bus Operations (NYCT Department of Buses, MTA Bus Company) ! Long Island Rail Road ! Metro-North Railroad ! Bridges and Tunnels
35
Interagency ! NYC Transit (Subways) ! MTA Bus Operations (NYCT Department of Buses, MTA Bus Company) ! Long Island Rail Road ! Metro-North Railroad ! Bridges and Tunnels
40 41
43
47
48
Metro-North Railroad
Major 2012 Commitments ! Major 2012 Completions
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54
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57
Numbers of Employees ! Basic Organizational Structure of MTA Operations ! Governance of the MTA ! Board Members and Committee Assignments ! Board Members Attendance
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This section of the Annual Report summarizes ridership and other performance data for the twelve-month period ending December 31, 2012. (See also, the Mission Statement, Measurement, and Performance Indicator Report, PAL Sections 1269-f and 2824-a.).1 Despite the historic disruptions caused by Superstorm Sandy, annual ridership on the subways, buses, and railroads operated by the Metropolitan Transportation Authority (MTA) rose in 2012 to more than 2.6 billion trips for customers throughout the downstate region. This increase, more than half a percent over 2011, continued a twenty-year trend of longterm ridership growth. Performance measurement results for each of the principal MTA agencies, which provide subway, bus, commuter rail, and bridge-and-tunnel crossing services, are reported below. Please note that as part of its public transparency initiatives, the MTA regularly updates Performance Dashboards posted on its website at www.mta.info, under the heading About the MTA, allowing the public to track MTA performance by agency on a monthly basis. The Dashboards display key indicators for MTA New York City Transit (NYCT) subways, buses, and paratransit services; MTA Long Island Rail Road (LIRR); MTA Metro-North Railroad (Metro-North); MTA Bus Company; and MTA Bridges and Tunnels.2 Performance in all categories is measured monthly and compared to published goals.
Because of the timing of the Mission Statement, the performance data in that report are subject to subsequent reconciliation and adjustment as data is finalized by each agency over the course of the year. For that reason, some of the data reported in the Mission Statement have been adjusted in this report to reflect the most recent 2012 performance data, as of March 15, 2013. 2 Note that the Lease and Operating Agreement between Nassau County and MTA Long Island Bus was terminated effective December 31, 2011, and that Nassau County contracted with a private operator to provide bus and paratransit service in the county commencing January 1, 2012. Accordingly, performance data for Long Island Bus is no longer available from the MTA.
In October 2012, Superstorm Sandy presented NYCT with enormous challenges. Building on lessons learned from Tropical Storm Irene in 2011, NYCT followed proven emergency protocols in preparation for the storm. The agency secured fleet and equipment, activated the Incident Command Center (ICC), and shut down the transit system prior to landfall. Despite record flooding and storm damage, NYCT returned a number of subway lines to service within four days after the shutdown and restored most of the system within two weeks. NYCT Department of Buses and the MTA Bus Company provided extensive support through emergency shuttles and alternatives to subway service. NYCTs robust response to the storm met with general acclaim from government officials, the media, and the riding public.
Performance Key
!
! !
2012 Actual
83.7% 79.0% 97.7% 96.2% 1,654,582,265 162,138 74,773 93.1% 98.90% 9,343,283 1,416,967 667,910,621 4,546
-8.20% -.20% 1.20% 1.00% -0.9% -3.49% -58.46% -1.90% -0.46% -11.0% 10.90% -1.40% 23.8%
Safety Indicators
Customer Injury Rate Subways (per million) Customer Accident Injury Rate - NYCT Bus (per million) Collisions with Injury Rate - NYCT Bus (per million miles) Employee Lost-Time and Restricted-Duty Rate (per 100 employees) 3.00 1.11 6.73 3.09 2.86 1.15 6.60 3.09
-4.67% 3.60%
-1.93%
0.00%
Performance Key
! ! !
2012 Actual
Safety Indicators
Customer Injury Rate (per million) Employee Lost-Time and Restricted-Duty Rate (per 200,000 worker hours) 5.14 2.38 6.13 2.50 19.25% 5.04%
Performance Key
Metro-North Railroad
! ! !
2012 Actual
Safety Indicators
Customer Injury Rate (per million) Employee Lost-Time and Restricted-Duty Rate (per 200,000 worker hours) 2.70 2.00 2.58 1.88 -4.44% -6.00%
Performance Key
! ! !
2012 Actual
Safety Indicators
Customer Accident Injury Rate (per million) Collisions with Injury Rate (per million miles) Employee Lost-Time Rate (per 100 employees) 1.31 4.58 5.37 1.25 5.39 8.36 -4.58 17.69% 55.68%
Performance Key
! ! !
2012 Actual
282,646,972
-1.32%
Safety Indicators
Collisions with Injury Rate (per million vehicles) Employee Lost-Time Rate (per 200,000 work hours) .84 5.00 .90 4.30 7.14% -14.00%
" Relaunched the highly popular Poetry in Motion series, now under the auspices of Arts for Transit, in collaboration with the Poetry Society of America. The program features poems embellished with art from MTA Arts for Transit projects. " Collaborated with a developer to create the museum in your pocket Arts for Transit smartphone app, listing the entire collection of public artworks displayed throughout the MTA system, with direction, podcasts, and images. " Undertook preparations for the Grand Central Terminal Centennial celebration, which included special public events, performances, entertainments, commemorative products, and an exhibit of contemporary art.
at St. George Terminal and at high-volume SIR stations with connections to NYCT bus service. The plan will also incorporate SIR train information into existing smartphone apps for NYCT buses and trains. " Developed a customer advocate training program for the NYCT Subways Incident Command Center (ICC). The program was then used to hire and train a new Customer Advocate as a member of the ICC staff. " Improved customer access at several stations, opening a free transfer passageway between the Broadway-Lafayette and the uptown Bleecker Street stations; a new entrance at the Atlantic Avenue Station serving the Barclays Center; a reopened entrance at the 4th Avenue-9th Street Station; and a permanent extension of the G train to Church Avenue. " Improved ADA accessibility through a number of projects, including 12 new customer elevators at five stations; installation of 435 induction-loop systems to assist hearing-impaired customers; and two public meetings addressing ADA compliance, changes in paratransit service, and the needs of the disability community. " Launched real-time arrival and service information for NYCT A Division lines on the MTA Subway Time mobile app at the MTA website. The live data feeds are also made available to third-party app developers to help generate new customer technologies.
MTA Bus Operations (NYCT Department of Buses, MTA Bus Company)Customer Service Initiatives
" Deployed Bus Time to all routes and depots in Staten Island and the Bronx, enabling customers to track bus locations in real time via the web, mobile web, SMS, and quick-response codes at bus stops. " Expanded Select Bus Service (SBS) rapid transit to provide faster service on the S79 route. " Developed a proof of concept for the Traffic Signal Priority project by outfitting 45 M15 SBS buses with Traffic Signal Priority equipment. The equipment communicates real-time bus locations to the New York City Department of Transportation Traffic Management Center, which remotely controls traffic lights along the M15 corridor, making bus service faster and more reliable. 10
" Implemented a number of route path changes to MTA Bus routes BxM11, B103, Q7, Q41, and Q113 to better serve new and changing markets. " Expanded the role of the Customer Advocate, whose function is to ensure that the customer experience is a key focus in all aspects of bus operations. That includes program development and implementation; communications aboard buses and in the public media; and interaction with advocacy groups. " Initiated the first phase of the Paratransit Interactive Voice Response (IVR) system, an advance notification system that advises customers of the impending arrival of their Access-A-Ride vehicle by telephone, text message, or email. The IVR is integrated with the Automatic Vehicle Location Monitoring system and gives customers approximately 15 minutes notice to prepare for timely boarding. Operations/Technology Initiatives) (See also,
announcements, and other messaging at LIRRs 24-hour Public Information Office; reorganization of the emergency Customer Assistance Plan; and new web-based Modified Timetables for easy reference during service disruptions. (See also, Safety/Security Initiatives) " Added more GPS devices and timing points along the LIRR right-of-way to improve the accuracy of Train Time and information displayed on electronic signs at all of LIRRs 124 stations. " Refurbished and upgraded 11 older escalators, returning ten to service in 2012 and one in early 2013. All escalators were thoroughly overhauled and equipped with new safety sensors. In addition, LIRR formed a new Elevator & Escalator Operations Group with certified inspectors and a remote monitoring system. " Introduced a pilot version of mobile ticketing for the PGA Tour event at Bethpage Black. Nearly 20 percent of event tickets were sold online for home printing or smartphone downloads, with barcode validation by LIRR staff at the Farmingdale Station. With a 99-percent customer satisfaction rate, this highly successful pilot greenlights LIRRs full roll-out of mobile ticketing in 2014. " Extended the validity period for LIRR one-way and round-trip tickets from 14 days to 60 days. The extension also applies to the refund period for one-way and round-trip tickets. The refund period for ten-trip tickets was extended to six months. " Published a formal Pledge to Customers detailing LIRRs performance goals and customer-service standards in such areas as safety, courtesy, cleanliness, and reliability. " Addressed a number of customer preferences with additional quiet cars on peak electric trains between Penn Station and Atlantic Terminal; enforcement of New York State smoking bans on all LIRR outdoor platforms and boarding areas; and extension of waiting room hours to 10 P.M. on weekdays at 41 LIRR stations.
" Published a formal Pledge to Customers in 2012, setting down in writing for the first time the railroads customer-service aims regarding courtesy, accuracy of information, cleanliness, response to service disruptions, and other customer priorities. " Improved real-time customer information throughout the system, with new LCD monitors, new links to Train Time web schedules, upgraded electronic signage, and new advisory information displays and kiosks in Grand Central Terminal. " Expanded the Station Enhancement Program, a cyclical maintenance program of painting, lighting, repairing, and cleaning station elements, ensuring a consistent standard of maintenance, design, and appearance at all Metro-North stations. " Completed major renovation and reconstruction projects at the Cortlandt and Tarrytown stations, including improved waiting areas, parking, and customer access. (See also, Metro-North, Capital Project Commitments/Completions) " Introduced more quiet cars for rush hours on the New Haven Line. The program, which prohibits cell phone calls and loud conversations on certain cars, now extends to all Metro-North lines. " Worked with community partners to provide connecting bus service between the Beacon Station, the DIA:Beacon art museum, and the Beacon business district, enhancing customer access and local development. " Held four community discussions with East Bronx residents, with the eventual aim of providing this underserved area with Metro-North stations and access to Penn Station, Westchester, and Connecticut.
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" Introduced the MTA Reload Card, which makes it easier for customers to put cash into an E-ZPass account at thousands of retail locations across the country via the Visa ReadyLink system. " Completed replacement of the Bronx roadway approach to the Bronx Whitestone Bridge, providing customers with wider lanes and a new shoulder lane. " Completed paving projects at the Verrazano-Narrows, Throgs Neck, and RFK bridges that will improve customer safety and comfort. " Introduced the new E-ZPass Pay Per Trip payment plan, enabling E-ZPass account holders to pay same-day tolls through an automated checking account debit without a prepaid balance or tag deposit. " Activated the new Spanish-language voice-response system, which received more than 155,000 calls in 2012, and the Spanish website homepage, which had more than 35,000 hits during the year. " Exchanged over 400,000 E-ZPass tags through a customer-outreach prepaid mail program, part of the E-ZPass tag swap program, which replaces tags reaching the end of their useful life. " Launched the new the Drive Time app for smartphone users, providing live travel time information on approaches to Bridges and Tunnels facilities, as well as major local destinations. " Expanded the travel times displayed on variable message signs at most facilities to include major destinations, such as JFK and LaGuardia airports.
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Operations/Technology Initiatives
InteragencyOperations/Technology Initiatives
" Completed Phase II of the consolidation, standardization, and migration of payroll and back-office functions for all MTA agencies, except Bridges and Tunnels, to the MTA Business Services Center (BSC). In July 2012, the BSC extended its payroll and human resources operations to 50,000 active employees and 20,000 retirees of New York City Transit and MTA Bus. (See also, Cost Cutting/Revenue Initiatives) " Completed Phase I of a state-mandated print reduction program to direct all in-office printing to centrally-located printing stations. Initiated Phase II of the program, which allows secure printing at departmental stations using magnetic coded ID cards and proximity card readers. (See also, Sustainability/TOD Initiatives) " Updated the user interface for www.mta.info on customer mobile phones, expanding device coverage and enhancing transit information at a glance. The MTA also expanded its Weekender app for the newest iPhone and Android releases. " Restructured the MTA website with increased bandwidth, Acquia cloud-based support, and other security features to ensure faster, more resilient, data-rich communications during emergencies and other high-volume situations. (See also, Superstorm Sandy Initiatives) " Commissioned an Information Technology Survey to determine customer use of and attitudes about travel information, responses to MTA initiatives, and priorities for future IT programs. " Collaborated with NYCT Subways on a cloud-hosted General Transit Feed Specification Real-Time (GTFS-RT) system to communicate more accurate subway arrival and departure information for customer apps.
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" Completed a track construction program that reconstructed approximately 7200 feet of track, installing Type III track panels. The majority of the work took place south of Queensboro Plaza and from 111 Street to Main Street. " Revised a number of agency operating rules, including new directives on train movements for more accurate on-time-performance (OTP) reporting; exercises for management involved in ICC operations; a revision of the NYCT Rulebook; a revision of CBTC rules; and PDA directives for a new digitized version of the R160 operator manual. " Completed key phases of NYCTs rolling stock procurement programs, including receipt and testing of R188 prototypes; awarding of options for 103 new R142A cars and 370 R142A car conversions; awarding of contracts for 300 B Division R179 cars; and receipt of three additional rail snowthrowers. (See also, NYCT Subways, Capital Project Commitments/Completions)
MTA Bus Operations (NYCT Department of Buses, MTA Bus Company)Operations/Technology Initiatives
" Expanded a workforce development program that includes customized workshops focusing on specific areas of bus operations. " Enhanced the Business Barometer, a strategic management initiative with webbased tools to help operating managers evaluate key indicators and performance data, then apply proactive strategies for improvement. " Implemented a Hastus scheduling software system for the MTA Bus Company, similar to the Hastus system used by NYCT. This has resulted in more economical schedules, with the ability to more rapidly consider alternatives, as well as the ability to support new service information and service-monitoring initiatives. " Expanded the Intelligent Vehicle Network (IVN) project, which uses onboard computers with wireless links to depots to monitor bus components, identify and report potential failures, and provide information used in accident investigations. The IVN system has been installed on a total of 2,303 buses in 24 depots. " Initiated the first phase of the Paratransit Interactive Voice Response (IVR) system with advanced notification messages that advise customers of the impending arrival of their Access-A-Ride vehicle by telephone, text message, or email. The IVR system is 17
integrated with the Automatic Vehicle Location Monitoring system and gives customers approximately 15 minutes of notice to prepare and reach the pick-up location for timely boarding. (See also, Customer Service Initiatives)
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" Replaced the privately owned Verizon circuits supporting ticket sales machines at 96 separate locations with fiber-optic connections supported by the LIRR Communications Department, resulting in over $200,000 per year in recurring savings. (See also, Cost Cutting/Revenue Initiatives)
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InteragencySustainability/TOD Initiatives
" Continued systemwide energy audits and initiatives in conjunction with the New York Power Authority (NYPA). In 2012, these included the installation of LED lighting in subway tunnels, an energy-efficient heating system in LIRRs Hillside Maintenance Facility, and installation of T5 fluorescent lighting in the 207th Street Overhaul Shop and Yard. " Carried out several systemwide research and public policy initiatives relating to the quantification, measurement, and monetization of the MTAs carbon avoidance benefits. " Participated in new areas of sustainable design research, including the design of a next-generation, sustainable R211 subway car and a pilot program for solar powered transit information kiosks. " Completed Phase I and inaugurated Phase II of a print reduction program to remove dispersed printers and centralize two-sided office printing, reducing paper, toner, and disposals. By expanding the program with card access readers, IT staff is further reducing the waste from duplicate or unclaimed print jobs. " Continued to provide planning, community outreach, and support for a number of TOD projects around MTA stations, including the Metro-North Beacon Station and the LIRR Wyandanch Station in the Town of Babylon.
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" Initiated regular washing of HVAC condensers on new millennium cars, which cleans out collected pollutants, prolongs the life of the condenser, and minimizes failures. " Continued to monitor and improve sustainability efforts according to ISO 14001 certified Environmental Management System (EMS) under the direction of NYCTs Department of Capital Program Management (CPM). " Continued CPMs construction and demolition debris recycling program, which recycles over 90 percent of debris away from landfills to productive reuse.
" Completed construction of the new Church Avenue relay room, which was designed
as a green facility, with 90 percent recycled steel, rainwater collection planters to control storm runoff, and other sustainability features.
MTA Bus Operations (NYCT Department of Buses, MTA Bus Company)Sustainability/TOD Initiatives
" Expanded the use of midday Midtown Manhattan parking of MTA Bus Company express buses to reduce nonrevenue vehicle miles. This reduces overall emissions and operating costs, while enhancing service reliability.
" Worked with Capital Program Management to design the new Bus Command Center
in Brooklyn as a Leadership in Energy and Environmental Design (LEED) facility. The facility will be energy efficient and will include natural lighting and a greenroof. Storm water will be managed with the use of rainwater collection.
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The project aims to create a community of retail spaces, offices, restaurants, and affordable housing. " Completed seven asbestos abatement projects and five demolition lead abatement projects, with the largest projects located at Floral Park Station, Jamaica Station, and the Babylon tower. Another 24 abatement projects were carried out at LIRR crossings during 2012. " Commenced two large-scale construction projects that will create a state-of-the-art substation at the Old Hillside substation and a new freight yard at the Long Island City Wheel Spur Yard. " Opened the Babylon Train Wash, a green facility that features 70 percent reconditioned wash water; solar panels for lighting and heating; a leach field to purify runoff storm water; a separator to prevent oil and diesel fuels from entering the waste water system; and landscape buffer surrounding the facility. " Reached an agreement with National Grid to perform soil remediation at the Clinton Avenue grade crossing on the Montauk Branch. While the soil remediation work was underway, the LIRR also modernized the crossing.
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Safety/Security Initiatives
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" Began installation of CCTV security cameras with associated customer assistance information system at every station and Rail Control Center. " Implemented an access control and intrusion detection system to control access to 229 communication rooms via electronic locks, card readers, key pads, and motion detection alarms. " Created a safer working environment for maintenance and repair crews through implementation of the new FASTRACK program, which curbs train operations in work areas. (See also, Operations/Technology Initiatives; Customer Service Initiatives) " Closed out major yard fencing contracts worth $18 million at six locations to secure NYCT property and protect the public. " Completed several major ventilation plant projects on subway lines, which elevate fire safety standards, along with ventilation units at the East New York Maintenance Shop, where summer temperatures up to 115 degrees had placed workers at risk. " Continued new safety objectives for employees, including new safety communications, safety audits, training, and accident investigations. " Continued the recently introduced Safety Culture Task Force charged with evaluating the ways in which organizational culture impacts employee and customer safety.
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MTA Bus Operations (NYCT Department of Buses, MTA Bus Company)Safety/Security Initiatives
" Installed additional bus operator shields designed to protect drivers from assault on a total of 837 buses, with additional installations ongoing. " Expanded the Bus Camera Security System to a total of 828 buses, with additional installations ongoing. " Implemented the Bus Operator Assault Executive Task Force, which meets regularly to coordinate initiatives across bus operations to mitigate assaults against bus operators and promote bus operator and customer safety. " Expanded conflict-resolution training for bus operators, along with public-awareness initiatives to help prevent bus operator assaults. " Worked with the MTA Office of Security to develop and implement Phase III Security Awareness Training for bus operators, front-line managers, and supervisors with direct customer contact. " Continued the labor-management partnership on employee and customer safety through the Bus Operator Action Committee. " Played a leadership role in organizing the first National Transportation Workers Assault Conference, which was attended by representatives from other transit properties and from the District Attorneys offices for all five New York City boroughs. " Implemented two new crisis-management plans. The Buses Heightened Awareness Plan ensures that needed protocols are in place to support first responders and maintain vital transportation services in the event of a crisis, such as a terrorist attack. The Buses Hurricane Plan prepares for storm emergencies and was successfully deployed during Superstorm Sandy. " Developed a high-level operations center or Situation Room that monitors all aspects of MTA bus operations during major storms or other emergencies to ensure the safety of customers, employees, and property. The Situation Room also provides a single point of contact between senior management, MTA public communications staff, the NYC Office of Emergency Management, and other external agencies.
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" Worked with MTA Risk Management to provide direct training for Paratransit dispatchers and road supervisors on proper decision-making, especially during high stress situations with customers and drivers. " Installed a custom-designed Automatic Vehicle Location Monitoring (AVLM) system in all paratransit road supervisor vehicles to facilitate timely, accurate supervision and communication with contracted drivers regarding safe driving, customer service, and other issues.
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" Implemented video data requirements, legacy cameras, and the MTAs Integrated Electronic Security System cameras into the LIRR Situation Room to improve responsiveness in critical situations. " Installed 193 advanced access control devices in 2012, bringing the total number of access control points protecting the agencys doors, gates, and train yards to 483. " Increased the capacity of Regional Security Command Center cameras from 400 to 464, and investigated ways to integrate all camera views into a single system. " Initiated an alcohol ban on overnight weekend trains and station platforms after midnight to ensure a more orderly travel environment. MTA police stepped up activity in Penn Station and across the system to enforce the ban.
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intoxicated (DWI). The agencys Special Operations Division issued 2,288 truck safety violations and 319 violations for overweight vehicles. " Contracted an explosives detection K-9 team, which was deployed under the auspices of the agencys Special Operation Division to enhance security at all Bridges and Tunnels facilities.
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MTA Bus Operations (NYCT Department of Buses, MTA Bus Company)Cost Cutting/Revenue Initiatives
" Continued to increase the use of prepaid taxi debit cards and brokered car service for eligible paratransit riders. These steps resulted in savings of approximately $33.5 million in 2012 compared to regular paratransit door-to-door service.
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Bridges and TunnelsCost Cutting/Revenue Initiatives " Continued a successful reduction in overtime costs through scheduling efficiencies
and stronger operational oversight. Despite a slight increase in overtime due to Superstorm Sandy, overtime expenses have declined by over 21 percent from $26.9 million in 2009 to $21.1 million in 2012.
" Maintained the ongoing savings achieved through the 2010 and 2011 Budget
Reduction Programs, which have enabled the agency to achieve millions of dollars in savings over previous financial plans through in-depth organizational assessments. " Established the Central Operations Notification Unit, a centralized, 24-hour unit which documents, processes, and monitors unscheduled employee absences at all agency facilities.
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"
Continued 24-hour monitoring, site inspections, damage reports, and public communications during the storm, which peaked on October 29 with a record storm surge and unprecedented flooding across the subway system.
"
Began recovery efforts immediately following the storm. Despite record storm damage, citywide flooding, and electrical outages, NYCT crews succeeded in returning a number of vital subway lines to service within four days after the storm and restored most subway service within a week.
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Continuing recover efforts, with a top priority on service to the Rockaways and the badly damaged South Ferry Station. A number of transit system links suffered significant damage and some remain out of service. Major flood damage hit eight subway stations, three train yards, eight under-river tubes, and tracks across Jamaican Bay. Staten Island Railway experienced significant damage to shops, equipment, and the signal interlocking system.
MTA Bus Operations (NYCT Department of Buses, MTA Bus Company)Superstorm Sandy Initiatives
" Implemented the Buses Hurricane Plan, which was used to centralize interagency and public communications; secure bus fleets and property; safeguard customers and personnel; and provide emergency evacuations. The plan also helped to support emergency personnel during the storm and restore transportation services as quickly as possible following the storm. " Participated in the NYC Office of Emergency Management (OEM)s Homebound Evacuation Operation and Healthcare Evacuation Center, providing paratransit services to over 1,700 evacuees affected by Superstorm Sandy. " Implemented supplemental bus service following Superstorm Sandy to handle demand caused by the long-term outage of the A train between Howard Beach and the Rockaway peninsula. Additional bus service was also added on the Q22, Q52, and Q53 routes serving the central and western sections of the peninsula. " Provided bus services within hours of the storms passing, and supplemented subway service with a bus bridge from Brooklyn to Manhattan until the subway system in that area was operational. 36
" Developed four Mitigation capital projects to prepare the LIRR system for future
extreme weather events, with funding to be sought through insurance, the FTA Sandy Relief Bill, and FEMA. These projects include the East River tunnels and West Side Yard ($85.0); the Atlantic Avenue tunnels ($4.0); flood and emergency management equipment ($20); and double track for the Main Line, Phase II ($300).
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were 14-foot surges and 90 mph winds), and damage to roadways, lighting, navigation systems, and signage at the other five bridges. " Coordinated with 50 contractors, FEMA, Con Edison, LIPA, the NYC Office of Emergency Management, the Army Corps of Engineers, FDNY, and the Governors office on storm recovery efforts. " Pumped some 72 million gallons of water out of the Hugh L. Carey and Queens Midtown tunnels and began repairing 2,756 tunnel lighting fixtures. The tunnels remained closed for 15 days and 9 days respectively. " Initiated emergency and temporary repairs to ensure customer and employee safety, most notably the removal of ceiling panels from the Hugh L. Carey Tunnel. In-depth inspections and testing will continue for several months. " Commenced longterm tunnel repairs, which include damage from saltwater and oil contaminants to wall tiles, ceiling panels, catwalks, air ducts, roadway surfaces, and other tunnel elements. " Secured a $778 million amendment to the Capital Program, approved by the MTA Board in December, to fund permanent repair of the storm damage.
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Since the initiation of its 2010-2014 Capital Program, the MTA has sought and achieved significant reductions in program costs, while continuing to meet the regions rapidly growing transportation demands and abide by the aims of the board-approved MTA Mission Statement. In 2010, through a series of savings initiatives, the MTA reduced its original funding proposals by $1.82 billion, resulting in a 2010-2014 Capital Program of $26.3 billion over five years. In 2011, the MTA Board amended the program with proposals to achieve additional savings of nearly $2.0 billion. These include eliminating 15 percent of administrative staff, improving the productivity of work along the right-of-way, maximizing component replacement over full asset renewal, and reviewing every capital project as it nears implementation to ensure that it will deliver the intended public benefits at the lowest possible cost. In December 2012, the MTA Board approved an additional $4.8 billion for repairs and restoration of MTA assets that were damaged as a result of Superstorm Sandy, which struck the region on October 29, 2012. This increases the capital plan from $24.27 billion to $29.03 billion. That includes Bridges and Tunnels, which is not subject to Capital Program Review Board (CPRB) approval. Efforts in 2012 resulted in $4.56 billion in capital funds committed during the year and a total of $5.25 billion in capital projects completed. These include significant rolling stock upgrades and major milestones in the four MTA Capital Construction mega projects, the largest system expansions in 60 years. For maximum transparency, the status of all capital projects is updated regularly on the Capital Program Dashboard under the heading About the MTA on the MTA website at www.mta.info. All costs shown below are in millions unless otherwise indicated.
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Commitments New York City Transit Long Island Rail Road Metro-North Railroad Bridges and Tunnels Capital Construction MTA Bus Company Commuter Rolling Stock Other
4
Expenditures 46,549.0 7,998.9 5,720.7 3,362.0 10,817.5 598.9 1,911.2 508.6 77,467.1
Completions 43,608.2 6,982.8 5,016.4 3,026.5 3,708.7 523.6 1,895.4 337.5 65,099.3
MTA Total
3
Funding for MTA Bridges and Tunnels Capital Programs not included. Numbers may not total due to rounding.
Includes funds for World Trade Center recovery, planning and customer service projects, interagency projects, MTA Police, and unassigned commuter rail projects that benefited both LIRR and Metro-North in the 1982-91 Capital Program. Numbers may not total due to rounding.
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Commitments New York City Transit Long Island Rail Road Metro-North Railroad Bridges and Tunnels Capital Construction MTA Bus Company Other
5
MTA Total
Includes funds for planning and customer service projects, interagency projects, and MTA Police. Numbers may not total due to rounding.
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related to the 7 Line Extension and installation of the Communications-Based Train Control (CBTC) system. ($497.2) " Awarded purchase contract for eight auger-type snowthrowers to clear mainline tracks. ($8.1)
Track and Switches " Initiated the agencys mainline and yard switch and track replacement program for 2012. ($327.3) " Initiated SIRs St. George track and signal project, Phase 1A. ($16.8) Signals, Electrical, and Communications " Awarded a project to modernize and improve the reliability of the Union Turnpike and 71st Avenue Interlocking on the Queens Boulevard Line. This project is necessary for future implementation of the CBTC system on this line. ($297.8) " Launched a project to install new VHF radio base station equipment to replace legacy subway radio communication system equipment. ($197.4) " Began a project to install Public Address/Customer Information (PA/CIS) at 43 subway stations. The systems will feature audio and text-messaging capabilities, and will be connected to the NYCT communications network. ($47.3)
Shops, Line Structures, and Other Structures " Initiated a project to rehabilitate deteriorated duct banks and install new negative cabling in the Steinway Tube on the Flushing Line. ($46.5) " Began construction on a new vent plant that will serve the 8th Avenue and 7th Avenue lines, located at Greenwich Street and 7th Avenue on NYCT property known as Mulry Square in Manhattan. Vent plant construction includes a new above-ground building and an underground vent plant structure. ($60.9) " Continued rehabilitation of eight bridges along a six-mile segment of SIR. ($20.6) " Continued flood mitigation and rehabilitation of the relieving platform at the 148th Street Yard. ($26 million)
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" Continued rehabilitation and overcoat painting of the elevated structure from the Cypress Hill Station to the 130th Street abutment on the Jamaica Line in Brooklyn and Queens. ($41.9) " Started overcoat painting of elevated structure from the Alabama Avenue Station to the Cypress Hills Station on the Jamaica Line in Brooklyn. ($19.9)
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" Completed a project to replace three undersized vent plants by constructing one larger plant at Jackson Avenue in Queens, to serve tunnel sections of the Astoria, Queens Boulevard, and Crosstown lines. ($70.2) " Completed the upgrade of approximately 6.2 miles of tunnel lightning on the Culver Line. ($31.3) " Completed a project that installed new cables between equipment control rooms and various remote locations at four substation control zones. ($47.3) " Completed the design of improvements to the SIRs Lemon Creek culvert and rightof-way, which includes features designed to protect the neighboring wetlands. ($0.7, design cost) " Completed overcoat painting of the elevated structure from portal to the 41st Avenue on the Astoria and Flushing lines in Queens. ($20.8) " Completed facility roof repairs and replacement at eight locations in the Brooklyn, the Bronx, Queens, and Manhattan. ($17.8)
Signals and Communications " Completed a project to equip 64 R160 railcars with CBTC technology for use on the Canarsie Line. ($67.9) " Completed a project to provide an Integrated Application Platform for various subsystems, including PA/CIS, closed circuit television (CCTV), and Help-Point intercoms at 156 A Division stations. ($208.9) " Completed a project to provide Asynchronous Transfer Mode (ATM) nodes at the 289 B Division stations, which will allow the fiber optic transmission of telephone, PA/CIS, CCTV, and data for MetroCard and other system functions. ($300.1) " Completed a project to modernize and improve the reliability of the 5th Avenue and Lexington Avenue interlockings on the B Division Queens Boulevard Line. Work included replacement of the old interlocking with a new conventional relay-based interlocking and the construction of new relay rooms to house associated equipment. ($141.1)
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Line Structures " Awarded the bridge-painting contract for six bridges at locations in Carle Place, Westbury, Bellerose, Belmont, Douglaston, and Babylon. ($5.2, total budget) " Began rehabilitation of the Woodhaven Boulevard Bridge on the Main Line in Queens. ($11.0, total project budget) " Began construction work on a general bridge program, which includes track-bed waterproofing of three bridges, rehabilitation of up to four bridges, one bridge replacement, and a systemwide study of bridge conditions. ($24.6, total project budget) Communications, Signals, and Power " Began construction on a project to modernize wayside phones and accessories in substations, yards, interlockings, and at locations along the LIRR right-of-way. ($10.50, total 20102014 project budget) " Began installation of elements for improved radio coverage, including new radio facilities and new narrowband-compliant digital equipment. ($10.3, total 20102014 project budget) " Awarded construction contract for the interior architectural fit-out of the Centralized Train Control (CTC) facility within the Jamaica Central Control building. ($12.5, total project budget) " Awarded the construction contract for the replacement of two power substations in Queens. ($25.4, total project budget) " Began replacement of lighting components in the Atlantic Avenue Tunnel between the East New York Station and Atlantic Terminal. ($7.0, total project budget)
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Track " Completed replacement of the Direct Fixation Track Fastening System at Merrick and Bellmore stations on the Babylon Branch. ($16.5, total project budget) " Completed cyclical replacement of track structure assets based on track inspections and the lifecycles of the components. ($51.8, total project budget) Communications " Completed the Improved Radio Coverage project from the 2005-2009 Capital Program, which included retrofit of 13 radio receiver sites and the design and construction of five new monopole-based radio facilities in Medford, Northport, Little Neck, Sea Cliff, and Huntington. ($15.29, total project budget) " Completed construction work on the Fiber Optic Network project from the 2005-2009 Capital Program, which continued the build-out of the LIRRs fiber optic network systemwide. ($70.12, total project budget) Shops and Yards " Completed construction of the new state-of-the-art Babylon Train Wash, replacing a deteriorated 1970s facility which had been demolished. ($25.5, total project budget). " Completed the improvements to the Reliability Centered Maintenance Shops. ($46.51, total project budget) Power " Completed construction on the last substation of a six-substation replacement project with locations at Lindenhurst, Little Neck, Merrick, Nassau Boulevard, Bellaire, and Rockville Centre. ($61.4, total project budget) East Side Access Readiness " Progressed East Side Access Readiness projects according to plan, including the design phase preparation of design/build documents for initial civil and structural work for the Jamaica Capacity Improvements, Phase 1. (See also, MTACC Capital Project Commitments/Completions)
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Metro-North Railroad
" Continued work on undergrade bridge repairs in the 2010-2014 Capital Program, including projects at the Harlem River Lift Bridge ($1.5) and the Oak Street Bridge ($700,000), as well as design for five undergrade bridges on the New Haven, Harlem, and Hudson lines ($1.55). ($39.2, total project budget) " Issued a contract under the 2005-2009 Capital Program for the replacement of the Bridge Street crossing in Poughkeepsie ($0.71) under the 2005-2009 Capital Program for East of Hudson overhead bridges. ($6.0, Metro-Norths 20-percent share of total project budget with NYSDOT) " Continued repairs to select East of Hudson overhead bridges under the 2010-2012 capital, with priority repairs at Montrose Station Road. ($17.1, total project budget) " Completed inspection of select bridges on the Port Jervis Line as part of the West of Hudson undergrade bridge repair program. A design contract for bridge repairs and replacements was awarded. ($11.9, total project budget) " Awarded a contract to perform repairs to the Otisville Tunnel located on the Port Jervis Line. ($3.0, total project budget) " Completed a contract for replacement wire ropes for the Harlem River Lift Bridge, part of a combined project that will replace the bridges electrical control system. ($33.0, total project budget) " Completed inspection and design of a new Hudson Line retaining wall to shore up the existing railroad embankment and prevent slides. The construction contract is in process of award ($8.9, total project budget). " Awarded the contract for repair and painting of catenary structures on the New Haven Line. ($3.5, total project budget) " Awarded and completed a contract for additional repairs to the Moodna Viaduct. Received bids for the Woodbury Viaduct, to be awarded in 2103. ($10.0, total project budget) " Initiated construction for Phase I replacement of the New Haven Line power supply station at Bridge 23. Foundation work for Phase 1 is complete and electrical components are being installed. ($49.3, total project budget) " Completed design for the construction of a new substation at 86th Street and the replacement of the existing negative return reactors at 110th Street, part of a project to upgrade the electrical traction power supply on the Harlem and Hudson lines. The construction award is scheduled for 2013. ($35.7, total project budget) 52
" Awarded and received preliminary design for the North White Plains Commuter Garage, with construction contracts to be awarded in second quarter 2013. ($41.8, total project budget)
Equipment " Completed upgrading and overhauling eight F40PH-2 Cat locomotives for operation on the West of Hudson lines. The last three locomotives were accepted for service in March 2012. ($8.3, total project budget) Stations " Completed Tarrytown Station improvements, including the construction of a new track island and side platforms, two new overpasses, and three elevators, with funding from the American Recovery and Reinvestment Act (ARRA). ($36.0, funded through the ARRA) " Completed door and window replacements and masonry repointing at the Poughkeepsie Station. Contracts for station interiors worth $670,000 were carried out under the Small Business Mentoring Project. ($5.9, funded through ARRA) " Completed final construction of the parking expansion and access improvements at Cortlandt Station on the Hudson Line, transforming the station into a vital intermodal facility. ($34.8, total project budget) " Completed contracts for the Upper Hudson Line improvements at the Croton-Harmon and Peekskill stations, which included staircases, painting and roofing, overpass components, lighting, elevator repairs, and other station amenities. ($15.4)
Infrastructure " Completed the Brewster Shop roof construction ($3.0), part of the Employee Welfare and Storage Facility project. ($10.0 total project budget) 53
" Completed design for rehabilitation of deck on suspended spans. ($52.5) Bronx Whitestone Bridge " Replaced deck on the elevated and on-grade Bronx approach. ($212.3) " Repaired concrete anchorage. ($9.2) Cross Bay Bridge " Completed substructure and underwater work. ($20.1)
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Second Avenue Subway " As of December 2012, $3.732 billion has been committed to the Second Avenue Subway Phase 1 project, out of a current budget of $4.451 billion for the entire project, of which federal funding is expected to total $1.374 billion. Two major contracts were awarded in 2012, the track, signals, power, and communications systems contract ($325.0) and the 96th Street Station finishes contract ($364.0), leaving only two remaining contracts for completion of the project. MTACC continues to work with the community on ways to mitigate construction impacts through Construction Advisory Committees, quarterly Public Workshops, and Saturday community tours. Newsletters for each station area are produced and distributed monthly and the Second Avenue Subways Good Neighbor Initiative continues to ensure that contractors maintain their worksites and that appropriate wayfinding signage for small businesses are in place. The anticipated revenue service date for the Second Avenue Subway Line is December 2016.
7 Line Extension " As of December 2012, $2.365 billion has been committed to the 7 Line Extension Project, out of a total project estimate of $2.420 billion, of which funding from the City of New York accounts for $2.367 billion. In September 2012, the contract for Site P, the secondary entrance, was awarded. The 7 Line Extension received the 2012 National Project Achievement Award from the Construction Management Association of America and the Merit Award in Transportation from Engineering News Record. Revenue service is scheduled for June 2014. East Side Access " As of December 2012, $5.164 billion has been committed to the East Side Access (ESA) project, out of a current estimate of $8.24 billion for the entire project, plus a rolling stock reserve of $463 million. Federal funding for the project is expected to total $2.699 billion. In July 2012, the tunnel boring machine digging the fourth of four ESA tunnels in Queens completed its run. This effectively marked the end of tunnel boring for the ESA project and all MTA mega projects. In September 2012, sandhogs broke through the final piece of reinforced concrete separating newly built tunnels in 56
Queens from newly built tunnels in Manhattan, creating a continuous tunnel running more than 3.5 miles from Grand Central Terminal to the Sunnyside Rail Yard in Queens. This tunnel will be connected to the LIRR Main Line at the completion of the ESA project. In September 2012, the MTA also awarded a contract to build an ESA ventilation facility on East 55th Street ($58.8). The revenue service date for ESA is August 2019.
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2012 ANNUAL REPORTSECTION 4 Description of the MTA and the MTA Board Structure
Pursuant to New York Public Authorities Law Section 2800(1)(a)(11)
The Metropolitan Transportation Authority (MTA), a public benefit corporation of the State of New York (the State), has the responsibility for developing and implementing a unified mass transportation policy for The City of New York (the City) and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties (collectively with the City, the MTA Commuter Transportation District). The MTA, which had 1,681 employees as of December 31, 2012, carries out these responsibilities directly and through its subsidiaries and affiliates, which are also public benefit corporations. The following entities, listed by their legal names and number of employees as of December 31, 2012, are subsidiaries of the MTA:
Legal Name
The Long Island Rail Road Company Metro-North Commuter Railroad Company Staten Island Rapid Transit Operating Authority MTA Bus Company MTA Capital Construction Company
Number of Employees
6,467 employees 6,248 employees 270 employees 3,591 employees Staffed by other MTA Agency employees
The following entities, listed by their legal names, are affiliates of the MTA:
Legal Name
Triborough Bridge and Tunnel Authority New York City Transit Authority, and its subsidiary, the Manhattan and Bronx Surface Transit Operating Authority
Number of Employees
1,726 employees
46,916 employees
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The MTA and the foregoing subsidiaries and affiliates are collectively referred to herein, from time to time, as the Related Entities. Throughout this document, the Related Entities are referred to by their popular names, as indicated below. Certain insurance coverage for the Related Entities is provided by a New York Statelicensed captive insurance public benefit corporation subsidiary of the MTA, First Mutual Transportation Assurance Company (FMTAC). The MTA and its subsidiaries are generally governed by the Metropolitan Transportation Authority Act, being Title 11 of Article 5 of the New York Public Authorities Law, as from time to time amended (the MTA Act). Triborough Bridge and Tunnel Authority is generally governed by the Triborough Bridge and Tunnel Authority Act, being Title 3 of Article 3 of the New York Public Authorities Law, as from time to time amended (the MTA Bridges and Tunnels Act). The New York City Transit Authority and its subsidiary are generally governed by the New York City Transit Authority Act, being Title 9 of Article 5 of the New York Public Authorities Law, as from time to time amended (the MTA New York City Transit Act). Due to the continuing business interrelationship of the Related Entities and their common governance and funding, there are provisions of each of these three acts (the MTA Act, the MTA Bridges and Tunnels Act, and the MTA New York City Transit Act) that affect some or all of the other Related Entities in various ways.
planning, procurement, real estate, corporate compliance and ethics, and treasury. In addition, the MTA maintains its own Police Department with non-exclusive jurisdiction over all facilities of the Related Entities. Transit System. MTA New York City Transit and its subsidiary MaBSTOA operate all subway transportation and most of the public bus transportation provided within the City (the Transit System). Commuter System. MTA Long Island Rail Road and MTA Metro-North Railroad operate commuter rail services in the MTA Commuter Transportation District (the Commuter System). " MTA Long Island Rail Road operates commuter rail service between the City and Long Island and within Long Island. " MTA Metro-North Railroad operates commuter rail service between the City and the northern suburban counties of Westchester, Putnam, and Dutchess; from the City through the southern portion of the State of Connecticut; through an arrangement with New Jersey Transit, the Port Jervis and Pascack Valley commuter rail services to Orange and Rockland Counties; and within such counties and the State of Connecticut. MTA Bus. MTA Bus operates certain bus routes in the City formerly served by seven private bus operators pursuant to franchises granted by the City (the MTA Bus System). MTA Long Island Bus. Pursuant to a lease and operating agreement with the County of Nassau (the County), MTA Long Island Bus formerly operated bus service in the County. MTA Long Island Bus operations ceased as of December 31, 2011, the date the lease and operating agreement terminated. MTA Staten Island Railway. MTA Staten Island Railway operates a single rapid transit line extending from the Staten Island Ferry Terminal at St. George to the southern tip of Staten Island.
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MTA Bridges and Tunnels. MTA Bridges and Tunnels operates all nine of the intra-State toll bridges and tunnels in the City. MTA Capital Construction. MTA Capital Construction is responsible for the planning, design, and construction of current and future major MTA system expansion projects for the other Related Entities, including East Side Access (bringing MTA Long Island Rail Road into Grand Central Terminal), extension of the No. 7 subway line from Times Square south to 34th Street and Eleventh Avenue in Manhattan, the Lower Manhattan Fulton Center, systemwide capital security projects, and the Second Avenue Subway. The legal and popular names of the Related Entities are as follows:
Legal Name Popular Name
Metropolitan Transportation Authority New York City Transit Authority Manhattan and Bronx Surface Transit Operating Authority Staten Island Rapid Transit Operating Authority MTA Bus Company Metropolitan Suburban Bus Authority The Long Island Rail Road Company Metro-North Commuter Railroad Company MTA Capital Construction Company Triborough Bridge and Tunnel Authority
MTA MTA New York City Transit MaBSTOA MTA Staten Island Railway MTA Bus MTA Long Island Bus MTA Long Island Rail Road MTA Metro-North Railroad MTA Capital Construction MTA Bridges and Tunnels
voting Members are required to be residents of the counties of Dutchess, Orange, Putnam, and Rockland, respectively, cast only one collective vote. The other voting Members, including the Chairman, cast one vote each (except that in the event of a tie vote, the Chairman shall cast one additional vote). Members of the MTA Board are, ex officio, the Members or Directors of the other Related Entities and FMTAC. In accordance with legislative amendments enacted in 2009, the Chairman is also the Chief Executive Officer of the MTA and is responsible for the discharge of the executive and administrative functions and powers of the Related Entities. The Chief Executive Officer of the MTA is, ex officio, the Chairman and Chief Executive Officer of the other Related Entities. As of December 31, 2012, the following Committees of the Board assist the Chairman and the Board in discharging their responsibilities: (1) the Audit Committee; (2) the Finance Committee; (3) the Committee on Operations of the New York City Transit Authority, the Manhattan and Bronx Surface Transit Operating Authority and the Staten Island Rapid Transit Operating Authority; (4) the Committee on Operations of the Metro-North Commuter Railroad; (5) the Committee on Operations of the Long Island Rail Road and the Metropolitan Suburban Bus Authority; (6) the Committee on Operations of the Triborough Bridge and Tunnel Authority; (7) the Capital Program Oversight Committee; (8) the Committee on Operations of the Bus Division of New York City Transit Authority, MTA Bus Company, Metropolitan Suburban Bus Authority and Manhattan and Bronx Surface Transit Operating Authority; (9) the Security Committee; (10) the Diversity Committee; and (11) the Corporate Governance Committee. Board Members are assigned by the Chairman to serve as chairperson or as a member of several committees. The following chart sets forth the Committee Assignments for each MTA Board Member on December 31, 2012.6
Effective January 1, 2013, the MTAs Board Committee Structure was amended by merging the Bus Committee into the NYCT Committee and discontinuing the Security Committee, with security program issues being formally made a focus of the Capital Program Oversight Committee and the operating committees.
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Diversity Committee
Security Committee
Finance Committee
Joseph J. Lhota (Chairman and CEO) Fernando Ferrer (Vice Chairman) Andrew Albert Jonathan A. Ballan John H. Banks III Robert C. Bickford James F. Blair Norman E. Brown Allen P. Cappelli Ira R. Greenberg Jeffrey A. Kay Mark D. Lebow Susan G. Metzger Charles G. Moerdler Mark Page Mitchell H. Pally David A. Paterson Andrew M. Saul
9 8
"C
"C
"C
B & T Committee
Audit Committee
"C
"
"
" "
" "
Joseph J. Lhota served as Chairman and Chief Executive Officer from January 9, 2012, until his resignation, effective December 31, 2012. 8 Fernando Ferrer was appointed Vice Chairman on December 19, 2012, and has been serving as Acting Chairman since December 31, 2012. 9 Andrew M. Saul served as Vice Chairman until December 19, 2012, when Fernando Ferrer was appointed as Vice Chairman.
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The MTA Board held ten (10) meetings in 2012. The Board meeting which was scheduled for October 31, 2012 was not conducted, due to Superstorm Sandy. The following chart sets forth the meetings of the MTA Board and the attendance of each Board Member at those meetings.
Board Members' Attendance Regular Meetings of the MTA Board In 2012
Board Member 1/25/2012 2/29/2012 3/28/2012 4/25/2012 Meeting Date 11/28/2012
x x x x x x x x
Joseph J. Lhota, Former Chairman 11 Fernando Ferrer (Vice Chairman) Andrew Saul
12
10
Andrew Albert * Jonathan A. Ballan John H. Banks III Robert C. Bickford (1/4) James F. Blair * Norman E. Brown * Allen P. Cappelli Ira R. Greenberg * Jeffrey A. Kay Mark D. Lebow Susan G. Metzger (1/4) Charles G. Moerdler Mark Page Mitchell H. Pally David A. Paterson James L. Sedore Jr. (1/4) Nancy Shevell Vincent Tessitore, Jr. * Ed Watt * Carl V. Wortendyke (1/4)
x = Absent from meeting * = Non-voting member ___ x x x x x x x x x x x x x x x x x x x x x x x x x x x
(1/4) = Casts one collective vote = Period during which not a Board Member
10 11
12/19/2012
5/23/2012
6/27/2012
7/25/2012
9/27/2012
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General Note. The MTA and its affiliates and subsidiaries maintain extensive property, liability, force account, construction, and other insurance, which is described in Appendix A to the MTAs Combined Continuing Disclosure Filings. Monetary claims described below may be covered in whole or in part by insurance, subject to the individual retentions associated with such insurance.
The MTA
Mobility Tax Litigation. The MTA, along with the State of New York and various officials of the State of New York (the State Defendants), has been defending several actions commenced in New York State Supreme Court challenging the constitutionality of the legislation that enacted the payroll mobility tax (Chapter 25 of the Laws of 2009). Chapter 25 of the Laws of 2009, among other things, imposes a tax on payrolls (the Mobility Tax) and certain other taxes and fees within the Metropolitan Commuter Transportation District, to provide funding supporting mass transportation to the MTA. The plaintiffs include five counties - Suffolk, Nassau, Westchester, Rockland, and Putnam - a number of towns and villages, a public school district, and certain private plaintiffs. The actions (listed by abbreviated caption) are: Hampton Transportation Ventures, Inc. v. Silver; Town of Southampton and Town of Southold v. Silver; Town of Brookhaven v. Silver; Town of Huntington v. Silver; William Floyd Union Free School District v. State of New York; Mangano and County of Nassau v. Silver; Vanderhoef and County of Rockland v. Silver; and Town of Smithtown v. Silver. All but two of these cases challenging the payroll mobility tax have been dismissed at the trial court level or voluntarily discontinued with prejudice. Summary judgments were granted to the MTA and the State Defendants, who are represented by the State Attorney General, ordering dismissal of four of the lawsuits which had been pending in Supreme Court, Albany County: Three of the proceedings were dismissed by Justice Connolly on 65
September 15, 2011: Town of Brookhaven v. Silver; Town of Huntington v. Silver; and Town of Southampton and Town of Southold v. Silver. (The Towns of Brookhaven and Huntington noticed appeals from the judgments of dismissal but did not timely perfect those appeals; the Towns of Southampton and Southold did not notice an appeal from the judgment of dismissal.) The Vanderhoef/County of Rockland action was dismissed by Justice McNamara on April 12, 2012. be filed by May 3, 2013. Plaintiffs have appealed the dismissal to the Appellate Division, Third Department. The MTAs and the States opposition briefs are to In addition, stipulations to discontinue their actions with prejudice were filed on October 21, 2011 in the Hampton Transportation Ventures action, which had been pending in Supreme Court, Albany County before Justice Connolly and on January 19, 2012 in the William Floyd Union Free School District action, which was pending in the Supreme Court, New York County. In the remaining two actions (commenced by the County of Nassau and the Town of Smithtown), which were consolidated, before Justice Cozzens of the Supreme Court, Nassau County, motions for summary judgment by Nassau County and other plaintiffs, as well as cross-motions for summary judgment against all of the plaintiffs by the MTA and the State Defendants, were decided on August 22, 2012, and a final judgment was entered on October 1, 2012. The judgment does not contain any order directing any of the defendants to stop collection, transfer or application of the MTA payroll mobility tax. In his decision, Justice Cozzens ruled that the MTA payroll mobility tax was passed unconstitutionally, based upon his conclusion that the legislation enacting the tax did not address a matter of substantial state concern and therefore required passage either with a Home Rule message or by two-thirds vote in each House of the State legislature. This Home Rule-based challenge to the 2009 legislation that adopted the MTA payroll mobility tax was explicitly considered and rejected by Justices Connolly and McNamara in the four actions noted above that already upheld the constitutionality of the legislation that enacted the MTA payroll mobility tax. In those prior actions, the Justices each determined the legislation in question addressed a matter of substantial state concern and so was not subject to Home Rule requirements. The MTA and the State of New York have both appealed Justice Cozzenss inconsistent judgment to the Court of Appeals, which transferred the appeals to the Appellate Division, 66
Second Department. The appeal is fully briefed; the appeal has a calendar preference, though argument date has not yet been set. The MTA, based upon its review of the claims asserted, strongly believes that the two actions consolidated in Nassau County, much as the other noted lawsuits challenging the constitutionality of Chapter 25 of the Laws of 2009 that have been dismissed, are without merit. The MTA intends to continue to defend vigorously the constitutionality of the law in question in these actions, the outcomes of which must await further determinations by the courts. County of Nassau v. MTA, Long Island Rail Road, and MTA Long Island Bus. MTA moved successfully for summary judgment in this state court action commenced by Nassau County, which sought to declare illegal, void, and unenforceable two capital funding agreements Nassau County entered into in 1996 and 1999 with the MTA, MTA Long Island Rail Road, and MTA Long Island Bus. An order and judgment dismissing Nassau Countys complaint and awarding the MTA judgment on its counterclaims in the amount of $18.666 million were entered on March 8, 2011. Nassau County appealed both the judgment and the denial of its subsequent motion for leave to renew and reargue. On October 25, 2012, the Appellate Division, First Department unanimously affirmed the lower courts order granting summary judgment and its order denying Nassau Countys motion for renewal. Though no justice dissented, Nassau County asked the Appellate Division, First Department for leave to appeal to the Court of Appeals, which was denied. Nassau County moved the Court of Appeals for leave to appeal, which motion the MTA is opposing. Lockheed Martin Transportation Security Solutions v. MTA Capital Construction and MTA. The MTA is a defendant, along with MTA Capital Construction, in an action brought in April 2009 by Lockheed Martin Transportation Security Solutions (Lockheed) in federal district court in Manhattan. Lockheed initially sought judgment declaring that the MTA and MTA Capital Construction were in breach of its contract for furnishing and installing an integrated electronic security (IESS) program, and an order terminating Lockheeds obligations. Following the MTAs termination of its contract, Lockheed amended its complaint to seek damages for delay and disputed work items ($80 million 67
and later revised to $93 million) or, alternatively, for the alleged reasonable value of work performed by Lockheed ($137 million, later revised to $149 million) based on its claim that the MTA wrongfully terminated the contract. The MTA and MTA Capital Construction are vigorously contesting Lockheeds claims for money damages and have counterclaimed, alleging that Lockheed materially breached the contract and seeking damages which are estimated to exceed $141 million. Discovery is in the final stages. The MTA cannot determine the final outcome of the litigation at this time. In July 2009, Lockheeds performance bond sureties on the contract commenced a related action in federal district court in Manhattan against Lockheed and the MTA defendants, alleging that they are unable to conclude that the conditions to their obligations under the bond have been satisfied. They seek a declaration of the rights and obligations of the parties under the bond. (Travelers Casualty and Surety Company, et. al v. MTA, MTA Capital Construction, New York City Transit, et. al.) The MTA and MTA Capital Construction answered and counterclaimed against the sureties, seeking damages in connection with the sureties violation of their bond obligations in an amount to be determined at trial. The matter has been consolidated with the Lockheed action. The MTA cannot determine the outcome of the litigation at this time. Actions for Personal Injuries/Property Damage/Workers Compensation. As of
December 31, 2012, there were approximately 38 actions and claims pending against the MTA claiming damages for personal injuries sustained while on duty, including actions under the Federal Employers Liability Act (FELA), no-fault cases, and other torts. Also as of that date, there were approximately 342 pending Workers Compensation cases.
Transit System
Actions for Personal Injuries/Property Damage. As of December 31, 2012, MTA NYC Transit and MaBSTOA had an active inventory of approximately 8425 personal injury claims and lawsuits and approximately 2485 property damage matters arising out of the operation and administration of the Transit System. In addition, with respect to the Access-A-Ride (Paratransit) program, as of December 31, 2012, there was an active inventory of approximately 945 personal injury cases and approximately 145 property 68
damage cases arising out of the operation of vehicles leased to outside vendors that provide Access-A-Ride service. Access-A-Ride claims are covered by a commercial policy which in 2012 had policy limits of $3 million per occurrence, subject to a $1 million deductible. As of December 31, 2012, the Staten Island Rapid Transit Operating Authority (SIRTOA), had a pending inventory of 17 claims and lawsuits relating to personal injury and property damage arising from the operations of SIRTOA. Workers Compensation and No-Fault. As of December 31, 2012, MTA New York City Transit and MaBSTOA had an active inventory of approximately 12,941 Workers Compensation cases and approximately 3403 no-fault cases. As of December 31, 2012, there were 13 Workers Compensation cases for SIRTOA employees that had been classified as permanently disabled, entitling the claimants to continuing monthly benefits and payment of future related medical expenses, as well as two death cases. Actions Relating to the Transit Capital Program. MTA New York City Transit has
received claims from several contractors engaged in work on various Capital Program projects. The aggregate amount demanded by all such claimants, if recovered in full, could result in an increase in the cost of the capital projects that are the subject of such disputes. The capital program contemplates the payment of such claims from project-specific and general program contingency funds, as well as other available monies pledged for capital purposes.
Commuter System
Actions for Personal Injuries/Property Damage. As of December 31, 2012, MTA MetroNorth Railroad had an active inventory of approximately 440 personal injury claims and lawsuits arising out of the operation and administration of the MTA Metro-North Railroad, of which 237 were the result of claims filed by employees pursuant to the Federal Employers Liability Act (FELA), and approximately 203 were claims filed by third parties. Also, as of that date, there was one pending property damage claim.
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As of December 31, 2012, MTA Long Island Rail Road had an active inventory of approximately 1376 personal injury claims and lawsuits arising out of the operation and administration of the MTA Long Island Rail Road, of which 828 were the result of claims filed by employees pursuant to FELA, and approximately 548 were claims filed by third parties. Also, there were approximately 189 pending property damage matters. Actions Relating to the Commuter Capital Program. From time to time, MTA Long Island Rail Road and MTA Metro-North Railroad receive claims relating to various Capital Program projects. In general, the aggregate amount demanded by all such claimants, if recovered in full, could result in a material increase in the cost of the capital projects that are the subject of such disputes. The capital program contemplates the payment of such claims from project-specific and general program contingency funds, as well as other available moneys pledged for capital purposes.
succeed in the liability phase, a class could be certified for purposes of claimants seeking damages. By opinion and order dated January 23, 2012, Judge Engelmayer, to whom the case has been transferred, granted defendants motion for reconsideration of the certified class to exclude persons who lack standing to sue including current residents of Staten Island, the Rockaway Peninsula, and Broad Channel, persons who no longer have a drivers license, and persons who have not crossed any of the bridges at issue within the two years preceding October 5, 2011. Pursuant to an amended scheduling order, as extended by the court, defendants expert reports were served on October 3, 2012; plaintiffs had until November 18, 2012 to file their rebuttal expert reports, which they declined to do; and expert discovery was completed in January 2013. Defendants intend to file a summary judgment motion. The authorities believe that the challenged toll discounts are constitutional. The toll
discounts are, with minor exceptions, mandated by sections 553-f, 553-h and 553-i of the Public Authorities Law, which require substantial discounts and exemptions from the regular tolls for residents of these communities. In the authorities view, the Legislatures decision to grant residents of these communities relief from the full impact of the toll structure, and certain related decisions by the authorities Board, represent appropriate transportation policy and do not involve any unconstitutional discrimination. The final outcome of the matter cannot be determined at this time. Angus Partners LLC, et al. v. Walder, MTA, MTA Bridges and Tunnel, et al. This putative class action was commenced in January 2011 in the United States District Court for the Southern District of New York. The complaint alleges that MTA Bridges and Tunnels is charging purportedly excessive and unreasonable tolls on its facilities and that various provisions of the United States Constitution and the common law of New York State are violated by the transfer of toll revenue to the MTA and MTA New York City Transit because the subsidized transit services are not functionally related to MTA Bridges and Tunnels facilities for motor vehicles. The defendants answer, filed on April 18, 2011, denies the material allegations and asserts various defenses. In August 2011, the court established a one-year discovery period. The one-year discovery period has been extended by the court at the request of the parties so that fact discovery was completed by January 31, 2013; expert discovery is scheduled for completion on July 12, 2013; and plaintiffs 71
dispositive motions, if any, is to be set after the Courts decision on the class certification motion. Defendants intend to continue to vigorously defend the action. These surplus fund transfers are mandated by sections 569-c and 1219-a of the Public Authorities Law. In defendants view, the Legislatures decision represents a lawful and appropriate transportation policy. The final outcome of this matter cannot be determined at this time. Actions for Personal Injuries/Property Damage. As of December 31, 2012, MTA Bridges and Tunnels had an active inventory of approximately 96 personal injury claims and lawsuits (including intentional torts such as false arrest) and approximately 7 property damage matters arising out of the operation and administration of the MTA Bridges and Tunnels facilities (including construction). Workers Compensation and No-Fault. As of December 31, 2012, MTA Bridges and Tunnels had an active inventory of approximately 316 Workers Compensation cases and approximately 2 no-fault cases. Actions Relating to MTA Bridges and Tunnels Capital Program. From time to time, MTA Bridges and Tunnels receives claims relating to various Capital Program projects. In general, the aggregate amount demanded by all such claimants, if recovered in full, could result in a material increase in the cost of the capital projects that are the subject of such disputes. The capital program contemplates the payment of such claims from projectspecific and general program contingency funds, as well as other available moneys pledged for capital purposes.
MTA Bus
As of December 31, 2012, MTA Bus had an active inventory of approximately 658 personal injury claims and lawsuits, approximately 597 property damage matters, approximately 494 no-fault cases arising out of the operation and administration of the MTA Bus System, and approximately 702 Workers Compensation cases.
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