Sander Speaks of Challenges and Goals at MTA

Less than three months into his tenure as Executive Director and CEO of the Metropolitan Transportation Authority (MTA), Elliot G. Sander laid out the challenges faced by the MTA, during a Construction Industry Breakfast Forum co-sponsored by the New York Building Congress and New York Construction.

Mr. Sander said at the outset that the MTA has built an impressive track record for carrying passengers efficiently and safely. “We now move 8 million people every weekday on our trains, subways and buses, plus 900,000 vehicles on MTA bridges and tunnels. We are by far and away the nation’s largest transportation system, moving 2.4 billion (people) a year.” He noted that ridership has increased 37 percent in just over a decade.

In addition to growing operating deficits, which are projected to reach $1.8 billion in 2010, Mr. Sander warned that there are risks to the current five-year capital plan, which at $21 billion is unprecedented for any metropolitan area over the past 50 years.

While we have a fully funded five-year program, we face a potential gap depending upon what happens to construction costs, whether Congress passes a transit security bill, and whether we are able to execute major real estate transactions like the Hudson Yards,” Mr. Sander said.

In updating the more than 500 men and women in the audience on the current
state of the MTA’s capital program, Mr. Sander said:

• funds from the current and past capital programs are supporting more
  than $16 billion of work now underway;
• over the past five years, the MTA has annually awarded an average of
  $3.4 billion and completed $3.1 billion worth of work;
• the MTA plans to award more than $4.1 billion in core program investments
  and more than $3.4 billion in 2007 for the Second Avenue Subway, East Side
  Access and the #7 line;
• the capital program, which runs through 2009, will include 79 station
  rehabilitations, including a $98 million rehab of the Columbus Circle
  Station complex.

In an effort to work with the industry to contain construction costs and work more efficiently with the building industry, Mr. Sander said that he had already convened a “blue ribbon construction panel” as well as two MTA task forces to examine issues identified as priorities by members of the Building Congress.One task force is working on retainage while the other will examine and work to improve closeout procedures.

“ When candidate Spitzer gave his transportation speech at the Regional Plan Association, he made reference to the importance of groups like the New York Building Congress, in order to execute our infrastructure agenda,” Mr. Sander said in closing. “I am hopeful that you will find these efforts consistent with the Governor’s, and that together, we will advance the region’s economic, social and environmental agenda in a way that is mutually beneficial and that we can both be proud of.”