Archive for MTA
I took a walk through Grand Central this afternoon as word got around that the wrapping around the new Apple Store had come down. From the floor of the building’s main hall, the Apple Store looks tastefully integrated into Grand Central. There is no ostentatious glass cube, a winding staircase or any garish signage. A bright, glowing Apple logo is visible from all throughout the terminal, but the computers, iPads and iPods aren’t visible from below.
Meanwhile, members of the ol’ print media got a tour of the Apple Store courtesy of the Cupertino-based company. (Thanks for inviting me, Apple. Harumph.) Andrew Grossman of The Wall Street Journal calls the store “understated.” The main entrance simply features tables with computers, and Apple’s typical markings are reserved for the parts of the mezzanine not visible from the concourse. amNew York has some photos of the store. It all opes on Friday.
Earlier this morning, current MTA Executive Director and future Chairman and CEO Joseph Lhota had the opportunity to attend his first Board meeting as leader of the much-maligned organization. Both Michael Grynbaum and Andrew Grossman were on hand to file reports from the meeting, and it sounds as though Lhota is at least prepared for the daunting challenges he faces over the next six years. “In the last two days, not a moment goes by that I don’t think about the budget,” Lhota said during the meeting. “I have to be optimistic about everything I do, because that’s how you get things done and move things forward.”
The next Chairman talked at length about both the MTA budget and its perception problems. He called the sprawling budget “a living organism” and spoke about improving the way the public views the MTA. “I do think the good that the MTA does, and all of its operating agencies, sometimes fails to get above the horizon,” he said. “Do I think it has a public-relations problem? I think it needs to focus on the good that it does and how important the MTA is to the economy of the region, because it is critical.”
Results will be more powerful for Lhota, who has already admitted the need to maintain a predictable pace for fare hikes that is tied to the overall inflation rate. As with Jay Walder and Lee Sander before him, though, the public will judge him on subway service, station cleanliness and fare policy. No amount of talk can change that reality.
As the MTA is debating a new plan to speed up disruptive track work, the authority’s new boss is taking over. Although Joseph Lhota cannot assume his role as the MTA Chairman and CEO until after State Senate confirmation hearings set for early 2012, the Cuomo nominee and former Giuliani administration official joined the MTA today as its Executive Director, and he will be responsible for day-to-day operations. Andrew Saul will continue to serve as Acting Chairman until Lhota is confirmed in Albany.
“The MTA is the engine that drives our economy and makes our way of life possible here in New York, and we have a responsibility to operate our service as efficiently and effectively as possible,” Lhota said in a brief statement. “The MTA is facing a number of difficult fiscal and operating challenges, including funding our vital capital program and continuing to improve service in tough economic times. My focus in the next couple of months is understanding this organization from top-to-bottom, and listening to our employees, customers, and community leaders as we work together to shape an agenda and improve this vital service for all New Yorkers.”
His first official duty involved a rare joint statement with TWU President John Samuelsen. The two leaders asked New York City prosecutors to pursue maximum penalties for those who assault MTA employees. It is a good sign indeed for the upcoming TWU negotiations that the two parties are working together to make a public show of support.
In addition to the arrival of Lhota, the MTA announced a handful of other leadership changes as well, including one that is raising some eyebrows. Nuria Fernandez has joined the organization as Chief Operating Officer, and Catherine Rinaldi, former MTA and LIRR General Counsel will now serve as the authority’s Chief of Staff. Charlie Monheim, the outgoing COO, will remain on board as Director of Strategic Initiatives, and he will be working on the MTA’s technology projecting and overseeing labor relations.
The intriguing departure though involves Diana Jones Ritter. Brought in as a so-called efficiency expert, Ritter was to serve as the MTA’s Managing Director, but her appointment drew criticism. No one is saying much about her departure, but it seems as though the MTA will find its efficiencies elsewhere.
For the MTA, today is the end of a tumultuous four-year era during which its Executive Director has been known more for his transit background than anything. Today is Jay Walder’s last day as the MTA CEO and Executive Director, and after two years of Lee Sander followed by two years of Walder, the authority will soon welcome Joe Lhota, a leader some have called a “fiscally prudent and seasoned manager,” into the fold. I’ve heard rumors of a $70-a-head going-away party for Walder, but I’m much more concerned with this transportation legacy and lasting impact on New York City.
When then-Gov. David Paterson nominated Walder back in July of 2009, the nominee said all the right things. His top priority — and one he never realized — was a fully funded capital plan, but he knew he had to deliver more.
“There’s no question,” he said, “the taxpayer and the riding public need to understand, need to demonstrate, need to see and need to believe that they’re getting value for the money in the way we operate the trains and the buses and the bridges and tunnels, in the way that we undertake the massive capital investments that are underway. And that has to be an immediate focus. We must restore the public trust and confidence to this organization. We won’t have the credibility to argue for the capital program that this system needs unless we restore the accountability of public trust and public confidence. I believe we can do that. I’m certain we can achieve that.”
At the time, I offered up my own list of the challenges that awaited Walder. Before we knew the depths of the MTA’s fiscal crisis and the ways in which Albany would repeatedly twist the knife into the wounded authority, we thought Walder would lead an MTA renaissance. He would see stalled technology projects through to completion while earning Albany’s trust through a convincing PR battle. He would add service in exchange for fare hikes and find a way to work out a funding plan for the five-year capital project.
So how did he do? Due in part to circumstances beyond his control and those very much under his control, Walder’s tenure atop the MTA has been a rocky one. On the bright side, the MTA has indeed entered the 21st Century. Perhaps it’s still trying to catch up with the rest of city, but the authority has embraced technological innovation like never before. We have countdown clocks, touch-screen info centers, Help Point intercoms and a real-time bus-tracking program in the works. While Walder may not have created these programs, he pushed through to completion. It was supposed to be his crowning achievement, and for that he deserves praise.
Yet, technology is not the only barometer. Jay Walder is leaving a system that has less service than we he began and costs more. In the eyes of the public, that’s his final legacy. Trains are more crowded and they run less frequently. Stations are dirtier and staffed with fewer people. Crime — thanks to gadget theft — is on the rise, and subway fares went up in 2009 and 2010. They will go up again in 2013 and 2015, if not sooner.
As far as the capital program is concerned, Walder’s approach was the best the MTA could do, but it’s far from perfect or complete. The MTA is proposing another round of debt-based funding that will lead to higher debt service payments and more pressure on the operating budget. Furthermore, while Walder pledged in 2009 to focus on capital budget funding, he has not succeeded in securing that funding as he heads to Hong Kong.
Finally, with union negotiations set to begin in January, the relationship between management and labor hasn’t been this frigid since 2005. Walder, who earned $350,000 a year as MTA head and took a lot of grief for it, was unsympathetic toward labor and cut numerous jobs. Meanwhile, departments like the Business Service Center continue to serve as magnets for charges of bloat in the bureaucracy. Thanks to Walder’s focus on making every dollar count, the MTA is more efficient today than it was two years ago, but it’s hardly a model of lean operations.
As with most outgoing MTA heads, then, Walder leaves behind a mixed legacy and one I believe to be unfinished. He’s departing before the job is through. We don’t know what the future holds for the MTA’s capital budget or its union negotiations. We may or may not see a MetroCard replacement plan see the light of day by 2015. We hope the Second Ave. Subway and East Side Access will continue apace. Everything, though, is very open-ended.
And so two years after taking the reins and riding in as a potential savior, Jay Walder will depart this afternoon. He likely was the most qualified transit guy to head up the MTA in recent years, but his tenure is over, a fleeting and incomplete one. So I leave you then with a question: Did he leave the MTA better off than when he started? I think so, but it’s not as good as it could have been.
In nine days, Jay Walder will leave his post as MTA Chair and CEO as he readies to depart for Hong Kong, and despite the looming resignation, all has been quiet from Albany on his potential replacement. Yesterday, I reported that Joseph Lhota may be the leading candidate, and today, the Daily News echos my scoop while adding Neil Peterson, Thomas Prendergast, Nuria Fernandez, Daniel Grabauskas and Karen Rae to the list of candidates. The outlook for the nomination remains hazy, but we do however have an inkling of who will replace Walder in the short term. According to a New York 1 report, current MTA Vice Chairman Andrew Saul will serve as interim chair as the search for a permanent replacement continues.
As interim heads go, Saul is the safest of safe choices and one primed for the moment. Named to the MTA Board by Pataki, he has served the Authority since 1996. He is a member of every committee, and with an extensive background in retail and private equity, he is the chair of the MTA’s finance committee. He also sits on a number of other boards, including the Federal Retirement Thrift Investment Board, Mt. Sinai Medical Center, the Metropolitan Museum of Art and UPENN’s Wharton School.
In the immediate few weeks, Saul will have to continue to lobby for a resolution to the MTA’s $10 billion capital budget gap, and according to NY1, Saul will “likely follow in the same policy path” as Walder. It offers some stability for the MTA, but still, with another interim head preceding a new permanent CEO and Chair, the MTA is guaranteed to run through six chairmen or women in as many years. For an organization as vital yet on shaky financial footing as the MTA, such turmoil at the top isn’t helping in the long- or short-term.
For years, one of the most obvious signs of bureaucratic issues with the MTA concerned its public phone numbers. The authority had, at its high point, 117 different phone numbers depending upon which service callers needed, and no one really knew which number to call. As part of its effort at cutting down these severe inefficiencies, the MTA has consolidated to one, state-run number. Those who need information from the MTA can now just call 5-1-1.
The 511 service, the authority said in a press release, will provide a portal to an interactive voice response system that will connect calls to customer service and travel information for all MTA agencies. Services include all rail and transit schedules; trip planning; lost and found; MetroCard, rail ticket, or Bridges and Tunnels tolls; and Mail & Ride. Furthermore, as 5-1-1 is a state service, this move costs the MTA no additional dollars. “This is a great example of how we are working to make it easier for our customers to get information and interact with the MTA at the same time that we reduce the MTA’s administrative costs,” MTA Managing Director Diana Jones Ritter said. “Customers now have a single phone number for all transportation-related questions, instead of a long and sometimes confusing list of agencies and departments.”
The MTA noted that 5-1-1 has been available as a transportation resource for a while, but the offerings have been refined. Call transfer paths will “better direct customers’ inquiries to the appropriate departments,” and functions such as Lost & Found, MetroCard Balance Protection and general comments and concerns are now available at one phone number. Ads promoting the new service will soon appear in buses, subways and rail cars throughout the area.
With Jay Walder’s departure date just a few weeks away, Gov. Andrew Cuomo’s search committee is hard at work trying to find the next person brave enough to take on the role of MTA CEO and Chairman. Today, we find out a little bit more about the potential candidates under consideration. Courtesy of The Daily News, the list contains the following: Jeffrey Morales from Parsons Brinkerhoff, Tom Prendergast from NYC Transit, Helena Williams from the LIRR, Michael Burns of Santa Clara’s Valley Transportation Authority and Neil Peterson, a transit vet who founded a ZipCar predecessor.
Williams, a one-time interim MTA head, and Predergast are, of course familiar names around these parts, but I’m not too familiar with the other three. I’ll try to prepare some profiles of these potential candidates. Morales and Peterson both have experience with West Coast transit and transportation agencies, and Morales is a former higher-up from the Chicago Transit Authority. At the least, if one of these five is chosen, the next MTA head will have a pedigree of transportation and transit policy, and that’s a step in the right direction.
After much pestering by reporters and silence from Apple, the MTA finally released the official presentation to its board concerning the upcoming Grand Central Terminal Apple Store. The presentation — available here as a PDF — contains three high-res renderings of the proposed store, and as the above shot shows, it appears as though Apple and the MTA have figured out how to incorporate the store into the iconic and landmarked terminal without overwhelming it.
This rendering shows how the Apple Store will take over the currently unoccupied northeast balcony as well as the former Metrazur space. It appears as though the elevators from the lower level will open directly into the store itself, and I have to believe that security measures will be in place there as well. The total amount of space Apple is taking out comes to 23,000 square feet which includes the entire east and northeast balcony spaces. Apple is currently working on building out the store, and it should be open before the end of the year.
As I look at these renderings, one thought comes to mind: As integrated as the store will be with the Grand Central space, the images have very few people in them. The Apple Store, simply put, will be far more crowded than these illustrations show. As long as the computer giant and the MTA are prepared for the influx of people, this will be a very, very successful retail space indeed.
While some folks in Albany want to lower the next MTA CEO’s salary, Streetsblog has handicapped the race to replace Jay Walder. In an extensive piece that examines both internet and external candidates for the job, Noah Kazis offers up thumbnails on those who could be under consideration. If Gov. Cuomo looks internally, he could tab Transit head Thomas Prendergast, LIRR president Helena Williams or current COO Charles Monheim. The external names are more intriguing.
First, Kazis runs down the list of those who have MTA experience. He mentions bringing back Elliot Sander, but with the ongoing signal scandal and various other issues stemming from Sander’s last term atop the MTA, that’s a non-starter. Marc Shaw’s name will resurface, but he wasn’t too popular the last time around. The two names that intrigue me the most in the Streetsblog piece are Nat Ford, former head of the San Francisco MTA, and Edgar Sandoval, the first managing director of TransMilenio in Bogota. An international pick could signal an attempt at true reform that has evaded the MTA over the past decade.
As New York’s transit-minded community has analyzed Jay Walder’s departure, our city’s infrastructure deficit has come under the microscope. With obstructionist politicians and mounting debt, the future is hazy for New York City’ transit system. Hong Kong’s MTR, on the other hand, is thriving.
In The Daily News today, Alex Marshall of the RPA looks toward Hong Kong for some transit lessons. The MTA would be wise to imitate the MTR with regards to development. In Hong Kong, the MTR has maintained its real estate holdings while developing and monetizing them. In New York, the MTA gave up the Atlantic Yards land in a below-market deal.
Ultimately, New York will have to reform the way it interacts with its transit network before we can truly move forward. But will the debt lead to a collapse before that time comes? Jay Walder, for one, isn’t sticking around to find out.