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Second Ave. Sagas

News and Views on New York City Transportation

AsidesMTA Economics

What future the payroll tax?

by Benjamin Kabak July 28, 2010
written by Benjamin Kabak on July 28, 2010

Now that the MTA has unveiled a four-year plan, it’s possible to see what level of government contributions the agency expects. Going forward — as page 19 of the PDF details — the authority will derive significant revenue from the payroll tax. By 2014, the authority believes it will draw in $1.5 billion from the payroll tax or nearly 27 percent of its total government subsidy. This controversial tax, then, is a vital one, and if the state’s candidates for governor have their way, the MTA may not see much from it.

The Times Herald Record released polled Rick Lazio and Andrew Cuomo about their stances on hot-button issues. For MTA supporters, the news is dismaying. Lazio, the GOP candidate, says he’s for repealing the tax, and the Democrats’ nominee Andrew Cuomo offered up a little tap dance that basically says as much. “The MTA payroll tax is something we must revisit by coming up with a more equitable system,” he said. “We cannot place unfair burdens on counties with families and businesses struggling.”

Neither candidate, as Mobilizing the Region noted, offered up a solution to the MTA’s budgetary woes nor did they identify a replacement revenue stream were the payroll tax to be abolished. The uncomfortable truth is that the new payroll tax fixes many of the inequities of the original proposal, and it remains a vitally necessary source of MTA funding. The region and its businesses would suffer more were the MTA cut $1.5 billion worth of service, and unless another revenue source is put into place, the state cannot afford to repeal the payroll tax.

July 28, 2010 2 comments
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Fare HikesMTA Economics

In a four-year plan, fare hikes and labor concessions abound

by Benjamin Kabak July 28, 2010
written by Benjamin Kabak on July 28, 2010

At its meeting this morning, the MTA Board voted to move forward on a plan to raise fares and tolls while slashing the number of station agents employed across the city. As the MTA has both the legal right and the economic need to raise fares in 2011, the vote was both expected and contested with transit advocates and labor officials protesting outside.

At the meeting, CEO and Chairman Jay Walder put forward the MTA’s four-year budget plan. The authority does not plan to cut services further. However, to ensure that the budget stays on pace, the MTA will enact significant fare hikes in both 2011 and 2013 and will ask for major concessions from its employees.

To move forward with the fare hikes, the authority will host a series of citywide public hearings in September before voting on a final package of fare hikes in October. The authority will decide, based upon public input, whether to limited the unlimiteds or simply raise the fares a few dollars more. Only around three percent of all subway riders exceed the proposed limit of 90 trips in a 30-day period.

As part of the comprehensive plan — and the MTA’s four-year budget outlook — the authority also hopes to rein in work rules and labor spending that it says are out of control. With major union contracts expiring over the next few years, the authority will attempt to institute a wage freeze while curtailing overtime spending and benefit costs. Although labor unions called this a “fantasy agenda,” MTA CEO and Chairman Jay Walder is set on exacting productivity gains or wage controls on the unions. The MTA will also eliminate more than 3400 administrative positions, and the Board voted to dismiss 200 station agents today as well after complying with a judicial order to hold new public hearings on the proposal.

“The foundation of this [Four-Year] Plan is the most aggressive and comprehensive overhaul in the history of the MTA,” Walder said. “These actions have allowed us to hold true to our commitment regarding fare increases while maintaining the quantity and quality of service that New Yorkers rely on every day. The State’s ongoing fiscal crisis is one of many risks to the Plan, but with continued hard work and the participation of our labor unions I believe that this Plan can be achieved.”

Already, battle lines are being drawn, and TWU President John Samuelsen made the first charge. He criticized Walder’s $350,000 salary. “It’s utterly ridiculous,” Transport Workers Union Local 100 Samuelsen said. “It’s hypocritical, and it has to end. “Go after your own paycheck. Go after your own benefits.”

Samuelsen is, in effect, ignoring the real issues. Instead of working with the MTA to identify cost savings and putting pressure on Albany to help reform public transit funding (and MTA oversight), Samuelsen is highlighting a red herring. The MTA is $800 million in debt, and Walder’s salary, relatively low for an organization the size of the MTA, is needed to attract talented transit planners — instead of politically appointed real estate cronies — to run the MTA. Additionally, Samuelsen’s salary far outstrips that of MTA workers as well.

I’ll delve more into the MTA’s financial outlook later tonight. But for now, we know what’s in store for the authority. It is saddled with debt and runaway spending costs. Its leaders have vowed to avoid service cuts for the next few years, but to ensure that service remains the same, both the riders and the MTA’s employees at all levels will have to pay. Until serious funding reform efforts are under way, year-by-year budgetary living will be the way of economic life at the MTA, and for that, the millions of New York straphangers will pay more and more at the turnstile.

July 28, 2010 20 comments
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AsidesMetro-North

At Fordham, $392K to alleviate overcrowding

by Benjamin Kabak July 28, 2010
written by Benjamin Kabak on July 28, 2010

As part of this month’s real estate deals, Metro-North Railroad has requested to purchase 7128 square feet of land from Fordhma University in order to widen a platform that often suffers from overcrowding. This station — the second busiest for reverse commuters — sees nearly 6000 people board the northbound trains in the morning rush, but the current platform, just eight feet wide in some places, can barely contain the crowds. When Fordham University made the land available, the MTA jumped. “The current outbound platform is narrow and gets crowded during the AM rush,” Metro-North President Howard Permut said in a statement. “This purchase will enable the railroad to improve conditions for its Fordham customers.”

With this extra land, Metro-North plans to widen a 515-foot section of the platform to 20 feet and completely cover it with a new canopy. The remainder of the platform which is under the station building and Fordham plaza cannot be widened. The land itself will cost $392,000 to acquire, and the station renovation project will carry a $14-million pricetag. “Metro-North and MTA have worked closely with Fordham to secure this property and it is a win-win-win, for the railroad, for the university and most importantly for the customers,” Permut said.

July 28, 2010 1 comment
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Second Avenue Subway

Underneath 2nd Ave., a TBM struggles to move forward

by Benjamin Kabak July 28, 2010
written by Benjamin Kabak on July 28, 2010

Cutterhead

Nearly three and a half months ago, local politicians and MTA officials came together in the giant pit underneath Second Ave. to celebrate the launch of Adi, the tunnel boring machine for the Second Ave. Subway. While symbolic, the launch was a momentous sign of progress for a project eight decades in the planning and eight decades delayed. Although the current iteration of the Second Ave. Subway had originally been slated for a 2012 opening, with the launch of the TBM, the MTA felt confident it would be ready by the end of 2016.

As with many things concerning the MTA’s capital construction program, though, the best laid plans of mice and men always seem to go awry. Earlier this month, the TBM had gone only 300 feet, far less than the estimated 40-60 feet per day, and officials assured me that the tunnel boring machine was simply going through some growing pains. It would be pick up the pace soon, they said. That reality has not come to pass quite yet.

Ten days ago, the MTA ran into a speed bump when a probe drill surfaced on Second Avenue, just a few away from active gas lines. At that point, the MTA had to investigate the incident, but spokesman Kevin Ortiz said the timeframe would remain the same. “We don’t anticipate this to have an impact on completing of the first run of the TBM before the end of the year,” he told me.

Today, this news is the same, and yet again, MTA officials are promising that the grass is greener on the other side, that the sun will come out tomorrow, and that a few more cliches are applicable here. As the Daily News reports, the TBM is averaging just 14 feet per day due to various mechanical issues, and amNY says the drill has reached only 90th Street.”We have yet to achieve the productivity I was hoping,”Michael Horodniceanu, head of capital construction, said. “We were plagued by a lot of technical problems.”

Pete Donohue says that the machine’s problems have included a broken driveshaft as well as issues with various “electronic components and hydraulics systems.” While Horodniceanu says the problems are in the process of getting resolved and that TBMs often face unforeseen obstacles in the first few months, the MTA’s tale documents tell the tale of another delay. The following chart is from this week’s Transit Committee deck and shows the TBM timeline:

As is plainly obvious, the timeline for the TBM work has already slipped by six months. It is not expected to wrap now until the end of 2011. This is but another delay in the ongoing saga of the Second Ave. Subway.

Publicly, the MTA claims this new TBM timeframe won’t impact the completion date of Phase 1 of the SAS, but even that late 2016 date is in doubt. Although transit officials haven’t gone on record saying so, the agency appears to be heeding the FTA’s timeline. The feds think a mid-2018 completion date is far more realistic. Sitting here today in 2010, I wouldn’t bet on the 2018 with my SAS Futures Fund either.

It’s not easy to build a subway through a densely populated part of town when utilities aren’t mapped and American companies don’t possess the engineering expertise. Still, as the Second Ave. Subway slowly moves toward completion, the timeline is stretched out further and further into the future. Because of the federal investment, Phase 1 will see the light of day, but Phases 2-4 are in doubt. If they make it off the paper, we won’t see the full line until the late 2020s at the earliest, and the Second Ave. Subway continues to be the city’s greatest unrealized promise.

July 28, 2010 25 comments
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Subway Cell Service

MTA vows to bring cell, wifi service underground, again

by Benjamin Kabak July 27, 2010
written by Benjamin Kabak on July 27, 2010

In September 2007, the MTA chose a little-known company named Transit Wireless to receive a $200 million contract that would allow it to equip all underground subway stations with wireless capabilities. It seemed almost too good to be true, and we quickly learned that, in fact, it was. Just one month later, the agency revealed that Transit Wireless had no financial backing, and as of June 2009, the company was still insolvent.

Yesterday, though, a light — or is that a bar of cell service? — appeared on the horizon as the MTA announced that the deal with Transit Wireless is back on track. Pete Donohue had more in the Daily News:

Transit Wireless will soon start work on wiring stations so riders can make calls and send texts during everyday travels – and during emergencies. Under the original agreement, Transit Wireless was to rig the first batch of Manhattan stations within two years of getting the construction go-ahead. The company would then have four years to wire all other stations.

The MTA board approved the project in September 2007. It didn’t give the “notice to proceed” until last week because the MTA doubted Transit Wireless had solid financing, sources said. MTA brass finally gave the outfit an ultimatum to lock in funding or lose the contract, one source said. Transit Wireless has since brought another company on board, Broadcast Australia, the source said.

Once complete, riders will have cell-phone service on platforms, mezzanines and other parts of stations. For the most part, there won’t be onboard service between station stops. Under the deal, cell-phone companies would pay Transit Wireless to carry their signals, and the MTA would get half the revenue, sources said. Transit Wireless is expected to cover all construction costs.

As Donohue’s sources note, this push to deliver on a three-year-old contract appears to be coming from Jay Walder himself. The MTA CEO and Chairman has made realizing technological innovation at the MTA a priority during his first year at the helm, and although he mentioned that wireless signals underground would not take precedence over projects easier to implement, if the MTA can exploit an outstanding contract that requires another company to pay for the work, they should do so.

On the other hand, I’m not going to count these wifi chickens before they hatch. Transit Wireless’ website is still stuck in late 2007, and the company originally claimed it would pay out a minimum of $46.8 million to New York City Transit over ten years while footing the cost for building a wireless network underground. The price tag on that was pegged at $150 to $200 million three years ago.

Meanwhile, in a person-on-the-street piece, NBC New York’s Jillian Scharr found that reaction among straphangers was mixed. Some look forward to cell — and more importantly, data — service underground while others view it as loud conversations that should remain private invading the public sphere. At least the tunnels won’t be wired so the conversations will stop when the trains arrive. That is, if this plan comes to fruition in the first place.

July 27, 2010 23 comments
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MTA Bridges and Tunnels

A bridge under a bridge over troubled waters

by Benjamin Kabak July 27, 2010
written by Benjamin Kabak on July 27, 2010

This excellent photo made the rounds yesterday morning a few hours after the new Willis Ave. Bridge made its way north up the East River. Unfortunately, the old 9-to-5 had me away from the computer for the duration, and I couldn’t get this published until today. No matter; it’s still a great photo.

What we see here is the NYC Department of Transportation’s new Willis Ave. Bridge floating underneath the raised span of the RFK — or Triborough — Bridge. This lift began at 9:57 a.m. and concluded 43 minutes later at 10:36 a.m. as traffic was halted across the bridge.

Despite the clearance on the sides, this maneuver wasn’t as easy it looks. The new 2400-ton bridge is 65 feet high, 350 feet long and 77 feet wide, and the barge carrying it was 300 feet wide, just 10 feet shy of the width of the Harlem Lift Span. “We’re old pros at doing these lifts for normal marine traffic but this was like threading
a needle,” Raymond Bush, the general manager of the RFK Bridge, said. “The captain of the barge was being extremely cautious to make sure they didn’t hit the lift span.”

Photo courtesy of MTA Bridges and Tunnels/Raymond Bush.

July 27, 2010 4 comments
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AsidesFare Hikes

For the right price, unlimited cards could stay that way

by Benjamin Kabak July 27, 2010
written by Benjamin Kabak on July 27, 2010

For the last few weeks, we’ve heard all about the MTA’s plans to cap the number of rides available on the so-called unlimited MetroCards, and earlier this morning, I discussed how the authority may eliminate the one- and 14-day cards. As more details have emerged today, the MTA may not axe those unlimited cards after all. According to a report in The Post, the authority will consider two proposals: one in which the unlimited ride cards become limited and another in which the cards cost more but stay unlimited.

According to Tom Namako, the two plans will look a little something like this: The weekly card could increase slightly from $27 to $28 but with a 22 ride cap or it could go to $29 with no cap. The 30-day card would increase from $89 to $99 with a 90-ride cap or it could go to $104 with no cap. The MTA also says it will lower the pay-per-ride volume discount from 15 percent to a mere seven percent and will also attempt to negotiate no-raise provisions into its expiring labor contract.

The final fare proposal will emerge after public hearings in September or October, but I would urge the MTA to maintain limitless subway rides on the unlimited cards. Even if most people do not use the cards to a full 90 rides, there’s something to be said for encouraging transit use without requiring customers to keep an eye on their ridership volumes. That said, if a 90-ride cap is met by day 28 and the cap serves to counter MetroCard fraud, it may yet be a worthwhile proposal.

July 27, 2010 33 comments
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Fare Hikes

In fare hike plan, more unlimited cards get the axe

by Benjamin Kabak July 27, 2010
written by Benjamin Kabak on July 27, 2010

When word of the impending MTA fare hike leaked out earlier this month, the headlines concerned unlimited ride cards. Once responsible for revolutionizing the way New Yorkers use mass transit, these cards are set to become limited in January 2011. Now, we learn that a few unlimited ride options may be on the chopping block.

According to WNYC’s Matthew Schuerman, the MTA is going to propose the elimination of the one-day fun pass and the 14-day card as part of its slate of fare hikes. The one-day card, transit officials say, is most prone to abuse by scammers while the 14-day card just hasn’t seen wide-spread use as the Straphangers Campaign, influential in promoting the idea, had hoped. “I can’t say I feel great,” Gene Russianoff said. “I had hoped that we would be helping people who could do better than a seven-day card and I’m sad that we didn’t convince more New Yorkers to use it.”

Schuerman had more on the demise of these various fare options and the history of the one-day Fun Pass, aimed initially at tourists:

Former Gov. George Pataki included the Fun Pass as part of an array of unlimited MetroCards that the MTA introduced back in 1998. At first, it was only sold at tourist locations. But the MTA quickly expanded Fun Pass distribution so that ordinary New Yorkers could also take advantage of unlimited rides for one day.

But transit sources say the one-day Metrocard never really caught on and now accounts for less than 1 percent of all fares paid. They say the Fun Pass also has a sinister side: scammers stand at turnstiles and sell swipes off of them for $2 as people come through. The scammers buy them in bulk so they don’t have to re-use any of them more than once every 18 minutes—the time lag the cards are programmed for. Over the course of a day, each one could be used dozens of times, at great profit to the scammer, while the MTA only receives the $8.25 face value of the card.

The MTA also wants to get rid of the 14-day MetroCard, first offered in 2008 to provide low-income riders better value than a weekly card without requiring them to shell out as much as a 30-day pass requires. But only 2 percent of straphangers use the card, and transit sources say that the other fare changes that will be proposed this week will make the 7-day card a relatively good deal. (The cost of the 7-day card will go up a dollar or two, while the price of a monthly will go up $10 or $11.)

For the Fun Pass to work, those riders who use pay-per-ride cards with the discount must take five or more trips per day, and most New Yorkers simply do not ride the subways that often. According to the MetroCard market share table from May 2010, only 0.9 percent of MetroCard trips were made with a one-day pass. That low figure also seems to contradict the MTA’s claims of widespread fraud.

The 14-day cards were, by and large, useless. Currently priced at $51.50, they’re cost-efficient only when compared with the $27 seven-day cards, and they pro-rate to over $110 for 30 days. By making the week-long cards a better deal, the MTA can hope to target lower-income users as the Straphangers originally wished to do. As Schuerman notes, only two percent of riders used the two-week cards anyway, and that figure had been static since they were first introduced.

By 2011, the fare hikes will have outstripped inflation by nearly 25 percent since Unlimited MetroCards made their entrance into the subway scene in 1998, and now, New Yorkers will have fewer options as well. Two percent may seem insignificant but nearly 150,000 commuters just found out that their preferred method of fare payment will no longer be an option come January. When flexibility is king, fewer choices is not the way to go.

The MTA will debate the contours of these proposals at its board meeting tomorrow morning. Due to my work schedule, I won’t be able to attend, but you can watch live right here beginning at 9:30 a.m. The presentation on the MTA’s finances and the fare hikes proposal is currently the last item on the meeting’s agenda.

July 27, 2010 50 comments
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LIRRMetro-North

Raising parking fares to raise revenue

by Benjamin Kabak July 26, 2010
written by Benjamin Kabak on July 26, 2010

If the MTA has its way, commuters will soon have to pay more to park at garages such as the one in Mineola. (Photo by flickr user Kramchang)

Beyond the cozy confines of the New York City subway system, most commuters must drive to reach a rail station that can feed them into the city. In general, transit agencies own the parking lots surrounding their train stations and are able to exact a double fare from passengers in the form of parking rates. The MTA has such bonus babies in place along the Metro-North and LIRR routes.

As nothing is sacred in the MTA’s hunt to close an $800 million budget gap, the rates the authority charges at these parking centers could be on the rise. The Wall Street Journal’s Andrew Grossman reports:

Commuter railroad passengers will likely pay more to park at 32 train stations starting in December.

Metro-North Railroad is asking the Metropolitan Transportation Authority’s board to approve a plan to raise parking fees by an average of 14.5% at the lots and garages it owns north of New York City. Long Island Rail Road is also seeking to raise parking fees by more than 20% at garages in Mineola and Ronkonkoma.

The increases would raise a combined $840,000 in revenue for the two railroads, according to the proposal. The railroads say the increases are needed to raise revenue and cover operating costs.

Currently, at Mineola, it costs $5 to park per 20-hour period and $10 a day for long-term parking. Those who do not take advantage of drop-off service will soon find themselves paying higher commuter rail fares and higher parking rates. Service, of course, has just been cut as well.

With Albany’s inaction on revenue-generating schemes, the MTA has little choice but to raise rates where it can, and parking lots are no exception. However, as the fares go up, as the price of parking goes up, some commuters will think twice about driving to the train station. Even though it’s more time-consuming and costly to drive to the city and park there, those sick of paying more will opt for the convenience of their own car instead as everything gets a little more expensive.

July 26, 2010 6 comments
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AsidesService Cuts

MetroCard turnstile readers as the next labor battle ground

by Benjamin Kabak July 26, 2010
written by Benjamin Kabak on July 26, 2010

As part of the collateral damage from the MTA’s decision to shutter station booths and axe station agents, MetroCard readers in the subway turnstiles are getting cleaned less often, says The Post, and labor officials are making it a point of contention with the MTA. According to Janet Roth’s brief report, station agents used to clean the readers daily with an alcohol-based cleaning solution on a dummy card, but with fewer agents to clean the slots, straphangers might notice more reader errors. The MTA told The Post that station chiefs and cleaners are to do these daily cleanings, but union officials are telling the cleaners that cleaning isn’t part of their job.

This sort of funny, sort of predictable story leads me to two conclusions: First, the riding public yet again comes out the losers in this battle between a cost-cutting agency and its employee unions. Second, when the MTA finally implements a contact-less fare payment system, this petty argument won’t matter any longer.

July 26, 2010 23 comments
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