CapProg_BoardCover_CapProg_cover 10/26/15 4:20 PM Page 1 MTA Capital Program 2015-2019 Renew. Enhance. Expand. CAPITAL PROGRAM mta.info/capital As Proposed to the MTA Board October 28, 2015 CapProg_BoardCover_CapProg_cover 10/26/15 4:20 PM Page 2 CapitalProgram_OCT2015_CapProg_Ex Summ 10/27/15 11:06 AM Page 1 MTA Capital Program 2015-2019 Renew. Enhance. Expand. CAPITAL PROGRAM mta.info/capital As Proposed to the MTA Board October 28, 2015 1 CapitalProgram_OCT2015_CapProg_Ex Summ 10/27/15 11:06 AM Page 2 New York never stops. From morning-rush commuters to late-night club- goers, from school children on subways to seniors on buses, millions of people rely on the Metropolitan Transportation Authority to get them through their daily lives. Without a robust and well-maintained network of railroads, subways, bus routes, bridges, and tunnels, New York as we know it could not function. I first joined the MTA in 1982 to help rebuild an aging network that struggled to move 5.3 million people every day. Today, farsighted investments by New York leaders over the past three decades have revitalized the MTA network— the engine for a New York metropolitan regional economy that accounts for 11 percent of our nation’s GDP and now moves 8.7 million customers a day. The key to keeping this system moving safely and reliably and to keeping our region vibrant has been the MTA’s Capital Program. Every five years, the MTA takes a hard look at its system and its infrastructure to identify and prioritize the invest- ments that will be essential to renew, enhance, and expand the system to meet the changing needs of the region, its economy, and its residents. The first MTA Capital Program was launched in 1982. That infusion of resources transformed a declining system and revitalized New York City and State, and we haven’t stopped investing in our network since. More than 30 years and $115 billion later, the Capital Program has given us a system we can depend on 24 hours every day of the year. Take our previous 2010-2014 Capital Program: We bought new subway cars, new commuter railroad cars, new local buses, and new express buses. We began installing modern, Communications-Based Train Control signals for faster and better service. We brought real-time service information to much of our network. We built new rail lines and connections that will serve New York for generations to come. And since Superstorm Sandy ravaged our network, we committed more than $2 billion to fix the damage and fortify against future storms. With a fully-funded 2015-2019 Capital Program, we’ll continue making our system more resilient against big storms. We’ll bring Positive Train Control—a state-of-the-art signal system—to Metro-North and the Long Island Rail Road. We’ll continue introducing new routes for Select Bus Service, which uses off-board fare collection, low-floor, high-capacity buses, and dedicated bus lanes to cut travel times by nearly 20 percent. We’ll replace 73 miles of subway track with safer, smoother track. And we’ll complete hundreds of similar projects that keep our customers safe and on time. These types of projects may not be glamorous, but together with the normal scheduled replacement of our trains and buses, they are the key to moving 8.7 million people every day, safely and reliably. 2 CapitalProgram_OCT2015_CapProg_Ex Summ 10/27/15 11:06 AM Page 3 We’re going to need every cent we can get to accomplish these goals while keeping fares and tolls as low as possible, which is why Governor Cuomo issued us a challenge: Eliminate every possible inefficiency to deliver the Capital Program for less. We’ve taken this challenge seriously, and today, I am committing the MTA to reducing the cost of the Capital Program by more than $3 billion. We’ll accomplish this by incorporating the Governor’s suggestions to use alternative delivery methods such as design-build and public- private partnerships, streamlined procurement processes, and a negotiated procurement process in non-traditional areas. We’re also reducing administrative costs, eliminating cumbersome processes, leveraging new technologies, and ensuring that our management of the Program is as efficient and effective as possible. And—as the Governor has asked—we’ll do it all without impacting benefits or eliminating the projects that are critical to the reliability of our system and the growth of our region. There’s a simple reason why we’re working so hard to overhaul the way we implement these vital investments: We know that continued capital funding relies on our ability to show that investments are being made wisely. At the same time, all the major cities of the world—London, Paris, Hong Kong, and others— are making significant investments in their transport systems in order to maintain their worldwide status as global financial and business centers. New York must do the same, because today, after more than 30 years of success, this basic fact is now clear: An investment in the MTA’s Capital Program is an investment in the future of New York. Thomas F. Prendergast Chairman and Chief Executive Officer Metropolitan Transportation Authority 3 CapitalProgram_OCT2015_CapProg_Ex Summ 10/27/15 11:06 AM Page 4 The Fulton Center’s “Oculus.” Natural light streams through this skylight into the entire station, even to the platform level. CapitalProgram_OCT2015_CapProg_Ex Summ 10/27/15 11:06 AM Page 5 2015-2019 Program Priorities and Major Objectives Through the 2015-2019 Capital Program, the MTA will provide safe and reliable service by continuously improving our capital assets, funding projects based on the following priorities: Renew: Our first priority is to protect the safety, reliability, and quality of our existing service. That means replacing trains, buses, and subway cars, and renewing track, signals, yards, depots, bridges, and stations. Enhance: Service improvements like Help Points, ADA accessibility, and next train arrival information help make your trip better every day. Expand: Expanding the MTA’s reach, through projects like the Second Avenue Subway and access to Penn Station for Metro-North, allows us to ease crowding, accommodate and create growth, and deliver more extensive and resilient service. We will also advance the following major investment objectives: • Complete the installation of Positive Train Control—a state-of-the-art train-control system—at Metro-North and the Long Island Rail Road. • Expand Select Bus Service to appropriate routes across New York City, in conjunction with our partners at NYCDOT. • Introduce new “contactless” fare payment technology that will work with smartphones and across our entire network. • Design and begin construction on the next phase of the Second Avenue Subway to ease congestion and improve mobility on Manhattan’s East Side. • Begin Penn Access, which will open a new Metro-North Railroad link directly into Penn Station, providing critical system resiliency to protect service for more than 275,000 daily customers in the event of natural or other disasters. • Complete the Long Island Rail Road Double Track project, which will improve service and reliability by adding a second track to the LIRR’s Ronkonkoma Branch. • Improve customer communications with more real-time train information and by completing the installation of Help Points—high-tech, highly visible intercoms that instantly connect customers to information and emergency services—in every one of our 469 subway stations. 5 CapitalProgram_OCT2015_CapProg_Ex Summ 10/27/15 11:06 AM Page 6 A Better Capital Program In October 2014, we submitted to New York State our original $32 billion 2015-2019 Capital Program. Governor Cuomo reviewed the Program and issued us a simple—albeit formidable— challenge: Cut the Program’s cost without impacting benefits or eliminating the projects that are critical to the reliability of our system and the growth of our region. We’ve taken this challenge seriously, and after an extensive analysis, here’s how we’ll meet it: Make It In New York These economic benefits can be multiplied by working A recent study by KPMG found that a fully-funded with New York State’s Economic State Development to 2015-2019 Program will create more than 400,000 bring more elements of the supply chain into the State, New York State jobs and generate nearly $52 billion including more manufacturers of components and in economic output. MTA capital investments also subcomponents. Doing so will increase State-wide account for the State having the largest base of transit- manufacturing jobs, which create more ancillary related manufacturing firms in the U.S.—making rail jobs than other sectors. It will also generate new tax cars, buses, and electronics. income, and—by lowering costs to primary suppliers in the State—result in lower overall costs to the MTA. Innovative Project Delivery We’re working to incorporate more efficient design and construction techniques to deliver capital projects for less. For example: • Design-build is a project delivery method where the same team that designs the project builds the project, and there’s only one contract. This simple but fundamental difference transforms the relationship between designers and builders into an alliance that fosters innovation, collaboration, and teamwork. The MTA benefits from a reduction in initial design effort, while the contractor can introduce innovative design or construction methods to reduce the project’s cost and schedule. • Through Public-Private-Partnerships (PPPs), private entities help us build and finance a project in exchange for a return on their investment. PPPs can help us spread risk, pool expertise, increase innovation through competition, and tap entrepre- neurial drive. When handled with proper oversight and transparency, these partnerships can lead to more efficient construction and cost savings.