THE COUNCIL

OF
THE CITY OF NEW YORK

Joe Lhota
Chairman, Metropolitan Transportation Authority
2 Broadway, MTA Headquarters
New York, NY 10004

8/10/2017

Dear Chair Lhota

We write to you to formally request a commission be formed under the auspices of the MTA but
with outside experts, to study and explore the fundamental causes for the extraordinarily high
capital costs incurred by the MTA, particularly in comparison to other global cities with similarly
complex and aging systems. While it was unfortunate that you were not in attendance to discuss
these matters before the Council at our recent August 8th hearing, we appreciated hearing from
your Managing Director Veronique Hakim that she would be glad to look into this matter. Her
testimony and discussion of the New York City Subway Action Plan was a good start to a critical
dialogue about the future of the subway system.

As we, our colleagues in the City Council, and our counterparts in the state legislature consider
options for new, long-term, recurring and dedicated revenue streams to fund the needs of the
system for the next 20 years, real progress must include tackling the MTAs sky high construction
costs. Based on testimony before the committee, it is apparent that the MTA has not yet
conducted a full accounting of its construction costs as compared to those in other global cities,
nor has it analyzed what can be done to bring costs down in line with those of its peers.

There is no doubt that construction in an environment as dense, historic, and vibrant as New York
City represents a daunting challenge. But transit authorities in other major global cities like Paris,
London, and Tokyo have found ways to meet similar challenges much more cost effectively,
completing major capital projects through dense urban centers for a fraction of the cost of
comparable projects here in New York.

We appreciate that Governor Andrew Cuomo initiated the MTA Genius challenge to develop
smarter ways of doing business, as well as ways to speed up project delivery times on key signal
upgrades and train cars. We agree that we must learn from our peer cities as we craft a solution to
the current crisis and beyond. However, we believe that the MTA must also look inward at the
processes that contribute to the highest per-mile cost for subway construction in the world. This
dubious distinction was held first by the 7 Train Hudson Yards extension and now belongs to
Phase 1 of the Second Avenue Subway. Budget estimates for Phase 2 of the Second Avenue
project show us at risk of breaking that record once again.
Getting costs under control is essential if we are to meet the current crisis. It is the only way to
ensure that our investments in 21st-century signaling technology and other critical
modernizations are able to stretch far enough to address the full scope of the problem. Cost
reform is also paramount to the long term sustainability and equity of the subway system. If we
are to make the subway system fully accessible, if we are to expand service to transit deserts, if
we are to meet the demands of the next hundred years, we must put our resources to their absolute
best use.

We could not agree more that New York is an exceptional city; however, this exception should
not extend to the extraordinary prices we are currently paying to improve our transit system. The
request for the MTA to empanel a commission on the record capital costs of subway construction
in New York can help to inform solutions and ensure that we can stretch taxpayer and straphanger
dollars to the furthest extent possible. This analysis can be used as a starting point for a discussion
on what it will take to deliver real cost reformand as an opportunity to strengthen the
relationship between the City of New York and the MTA.

We thank you for your prompt attention to this matter and eagerly await your affirmative
response.

Sincerely,

Council Member Ydanis Rodriguez Council Member Helen Rosenthal

Chair, Committee on Transportation Chair, Committee on Contracts