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November 2018 November 2018 MTA Board Action Items MTA Board Meeting 2 Broadway, 20th Floor Board Room, New York, N.Y. 10004 Thursday, 11/15/2018 9:00 AM - 12:00 PM ET 1. PUBLIC COMMENT PERIOD 2. APPROVAL OF MINUTES MTA Regular Board Minutes - October 24, 2018 MTA Minutes - October 24, 2018 - Page 5 NYCT/MaBSTOA/SIRTOA/MTA Bus Company Regular Board Minutes - October 24, 2018 NYCT/MaBSTOA/SIRTOA/MTA Bus Company Minutes - October 24, 2018 - Page 13 MTA Metro-North Railroad Regular Board Minutes - October 24, 2018 MTA Metro-North Minutes - October 24, 2018 - Page 19 MTA Long Island Rail Road Regular Board Minutes - October 24, 2018 MTA LIRR Minutes - October 24, 2018 - Page 27 MTA Bridges & Tunnels Regular Board Minutes - October 24, 2018 MTA B&T Minutes - October 24, 2018 - Page 36 MTA Capital Construction Regular Board Minutes - October 24, 2018 MTACC Minutes - October 24, 2018 - Page 40 3. COMMITTEE ON FINANCE Action Items i. Law Firm Panel Addition Approval of Law Firm Panel Addition - Page 43 ii. Revisions to MTA All Agency Investment Guidelines Revisions to MTA All Agency Investment Guidelines - Page 45 MTAHQ Procurements Report MTAHQ Procurement Report - Page 58 i. Non-Competitive MTAHQ Non-Competitive Procurements - Page 61 ii. Competitive (no items) iii. Ratifications (no items) Real Estate Items i. Real Estate Agenda and Staff Summaries Real Estate Agenda and Staff Summaries - Page 67 4. COMMITTEE ON NYCT & BUS NYCT Action Item i. Fair Fares Fair Fares - Page 84 NYCT Procurements NYCT November Staff Summary and Resolution - Page 87 i. Non-Competitive NYCT Non-Competitive Actions - Page 92 ii. Competitive NYCT Competitive Actions - Page 94 iii. Ratifications Procurement Ratifications - Page 96 5. COMMITTEE ON METRO-NORTH RAILROAD Metro-North Procurements MNR Procurements - Page 99 i. Non-Competitive (no items) ii. Competitive Competitive Procurements - Page 103 iii. Ratifications Ratifications - Page 106 6. COMMITTEE ON LONG ISLAND RAIL ROAD LIRR Procurements (no items) LIRR MTACC Procurements MTA CC Procurements - Page 108 i. Non-Competitive (no items) ii. Competitive MTA CC Competitive - Page 112 iii. Ratifications MTA CC Ratifications - Page 114 7. COMMITTEE ON MTA BRIDGES & TUNNELS OPERATIONS B&T Procurements B&T Procurements - Page 119 i. Non-Competitive (no items) ii. Competitive B&T Competitive - Page 122 iii. Ratifications (no items) 8. FIRST MUTUAL TRANSPORTATION ASSURANCE CO (FMTAC) (no items) 9. CFO PRESENTATION ON MTA 2019 FINAL PROPOSED BUDGET AND NOVEMBER FINANCIAL PLAN 2019-2022 (Materials distributed separately) Date of next meeting: Wednesday, December 12, 2018 Metropolitan Transportation Authority Minutes of Regular Board Meeting 2 Broadway New York, NY 10004 Wednesday, October 24, 2018 9:00 a.m. The following members were present: Hon. Joseph J. Lhota, Chairman Hon. Fernando Ferrer, Vice Chairman Hon. Andrew Albert Hon. Norman E. Brown Hon. David Jones Hon. Susan Metzger Hon. Mitchell H. Pally Hon. Scott Rechler Hon. Andrew Saul Hon. Lawrence Schwartz Hon. Polly Trottenberg Hon. Veronica Vanterpool Hon. Peter Ward Hon. Carl Weisbrod Hon. Carl V. Wortendyke The following alternate non-voting members were also present: Hon. Randolph Glucksman Hon. Vincent Tessitore, Jr. Hon. John Samuelson The following members were absent: Hon. Charles G. Moerdler Hon. Neal Zuckerman Patrick Foye, MTA President, Veronique Hakim, Managing Director, Helene Fromm, Chief of Staff, Janno Lieber, MTA Chief Development Officer, Robert Foran, Chief Financial Officer, Thomas J. Quigley, General Counsel, Andrew Byford, President, NYCT, Phillip Eng, President, Long Island Rail Road, Catherine Rinaldi, President, Metro-North Railroad, Cedrick Fulton, President, TBTA, Darryl Irick, President, MTA Bus Operations, and Timothy Ellis, Acting Chief Government and Community Relations also attended the meeting. The Board of the Metropolitan Transportation Authority also met as the Boards of the New York City Transit Authority, the Manhattan and Bronx Surface Transit Operating Authority, the Staten Island Rapid Transit Operating Authority, the Metropolitan Suburban Bus Authority, the Triborough Bridge and Tunnel Authority, the Long Island Rail Road, the Metro-North ________________________________________________________________________________ Master Page # 5 of 130 - MTA Board Meeting 11/15/2018 Commuter Railroad Company, the MTA Capital Construction Company, the MTA Bus Company, and the First Mutual Transportation Assurance Company. Unless otherwise indicated, these minutes reflect items on the agenda of the Board of the Metropolitan Transportation Authority, the Metropolitan Suburban Bus Authority, and the First Mutual Transportation Assurance Company. Refer to the other agencies’ minutes of this date for items on the agendas of the Boards of the other agencies. 1. CHAIRMAN LHOTA’S REMARKS. Chairman Lhota welcomed everyone to MTA’s October Board meeting. Chairman Lhota acknowledged the resignation of James Vitiello, MTA Board Member representing Dutchess County. The Chairman, on behalf of the Board, thanked Mr. Vitiello for his dedicated service to the MTA. Chairman Lhota stated that today he has distributed to Board Members a copy of the report issued two weeks ago by New York State Comptroller Thomas DiNapoli, entitled: “Financial Outlook for the Metropolitan Transportation Authority”, which examines the MTA’s financial situation. Chairman Lhota thanked Comptroller DiNapoli and Deputy Comptroller Kenneth Bleiwas, the primary author of the report, for an honest and straight- forward analysis of the facts. Chairman Lhota noted that he agrees with the headline of the press release that accompanied the Comptroller’s report, which read “MTA Faces Its Greatest Challenge in Decades”. The Chairman stated that the Comptroller’s analysis concisely portrays the MTA’s dual challenges with the operating budget and with future capital plans. The Chairman stated that Mr. Foran noted, and the Comptroller acknowledged, that the MTA has a significant revenue issue, which is mostly attributed to the level of the current economic activity that has resulted in lower than expected dedicated real estate-related taxes. Chairman Lhota stated that the MTA is also experiencing a decline in ridership, especially on the weekends and late evenings when portions of the system is purposely shut down significantly to perform much-needed backlogged repairs and maintenance. The Chairman noted that, unfortunately, these system closures will continue into the future and will probably be expanded as we move from stabilizing the system to modernizing it. Chairman Lhota stated that the proposed 2019 budget that will be presented to the Board next month actually forecasts a continuation of the decline in ridership. However, the Chairman stated that one piece of good news is that the proposed 2019 budget will be balanced because it includes a fare and toll increase in the 2nd quarter and a continuation of the MTA’s unprecedented cost-cutting re-engineering for the purpose of being more efficient and effective. Chairman Lhoted stated that the bad news is that the projections for 2020, 2021 and 2022 show significant deficits, consistent with the Comptroller’s report. Regular Board Meeting October 24, 2018 ________________________________________________________________________________ Master Page # 6 of 130 - MTA Board Meeting 11/15/2018 Chairman Lhota stated that the Board has a fiduciary statutory obligation and a legal requirement to adopt a balance budget. The Chairman stated that while the Board will be presented with the 2019 balanced budget proposal in November, the Board will need to immediately start dealing with the projected out-year deficits. The Chairman stated that it has been his experience that solving any out-year budget gaps is an equation that involves increasing revenues and decreasing expenses. The best option for increasing revenue is securing new and additional revenue sources from MTA government partners. The other revenue option is to implement additional fare and toll increase, above and beyond those which have already been projected. With respect to expenses, Chairman Lhota stated that reductions and cost cutting have been on-going for nearly a decade at the MTA and its operating agencies, and will continue until the managers have identified new cost-saving measures. The Chairman stated that a hiring freeze has been implemented for all non-essential employees and the organization will continue to reengineer its businesses to streamline operations for both efficiency and effectiveness. Chairman Lhota stated that these types of dramatic cost-cutting measures often lead to more aggressive measures such as service reductions, which is never an acceptable option and always a last resort for the sake of millions of New Yorkers and the economy. Unless sustainable new sources of revenue are identified, Chairman Lhota stated that we will have no other options to balance the budget after 2019. Chairman Lhota stated that last year, with the adoption of the state budget, the Governor and Legislature acknowledged MTA’s financial challenges by creating a Metropolitan Transportation Sustainability Advisory Workgroup, charged with, among other things, focusing on the overall funding needs of the MTA, as well as identifying options for sources of additional funding for MTA, outside of congestion pricing. The workgroup includes representatives appointed by the State Assembly, the State Senate, the Governor, the NYC Mayor, City and State Departments of Transportation and the
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