Council Members Press for Investigation of High MTA Construction Costs

Governor Cuomo and MTA Chair Joe Lhota pledged a "top-to-bottom review" of MTA practices this summer, but they haven't done anything to rein in the most expensive transit capital construction costs in the world.

Council Member Helen Rosenthal speaking this morning alongside Council Member Ydanis Rodriguez and State Senator Michael Gianaris. Photo: David Meyer
Council Member Helen Rosenthal speaking this morning alongside Council Member Ydanis Rodriguez and State Senator Michael Gianaris. Photo: David Meyer

City Council members are speaking up about the runaway price tag of subway infrastructure in New York City, pressing the MTA to rein in capital construction costs that outstrip those of peer cities across the globe.

Speaking outside City Hall this morning, council members Helen Rosenthal and Ydanis Rodriguez called for an independent commission to identify the causes of high MTA costs and propose solutions.

“The MTA has the highest construction costs compared to any other city on the planet,” Rosenthal said. “The fact is we can’t wait any longer for cost reform at the MTA.”

The exorbitant amount the MTA pays to build new tunnels and maintain and upgrade existing subway infrastructure constrains its ability to improve the system and add capacity. Any given amount spent on subway improvements here would probably go at least twice as far in London, Paris, or Tokyo. At a time when the city is growing but transit service is getting worse, the consequences of New York’s capital cost problem are especially acute.

But at a City Council hearing this summer, MTA Managing Director Ronnie Hakim claimed the agency can’t do much about outrageous construction costs, because New York is exceptional.

“In other parts of the globe, when subway systems are being built and/or expanded, they do not remotely come close to the challenges that we face here in New York City,” Hakim said. She cited the “maze” of underground utilities, “fairly sophisticated” environmental regulations and safeguards, and the fact that New York is “an expensive part of the world in which to construct.”

Those excuses fall flat, TransitCenter Executive Director David Bragdon noted during today’s press conference. Cities like London, Paris, and Zurich — which have older infrastructure, higher material costs, and more stringent environmental and labor regulations — have managed to modernize and improve their subway systems while keeping costs significantly lower than the MTA.

The event this morning came on the heels of yet another morning of subway delays and service failures. The rising prevalence of such severe delays led MTA Chair Joe Lhota to promise an “action plan” to address needed reforms at the agency. That was back in July. A month later, Rodriguez and Rosenthal sent Lhota a letter demanding an investigations into sky-high MTA construction costs [PDF].

Now the summer is over but there’s still no sign that Lhota and Governor Cuomo are trying to reform the MTA’s capital construction dysfunction, root out bad practices, and set the agency on a trajectory to deliver reliable, high-capacity subway service.

“When Governor Cuomo installed Chair Lhota last June, they pledged there would be a top-to-bottom review of everything that the MTA does, and that everything would be on the table in terms of examination. That has not happened,” Bragdon said. “Instead of getting action on this, we’ve gotten excuses, and they’re excuses that don’t hold up.”

  • Knut Torkelson

    What a stooge Ronnie Hakim is. How corrupt can you be to not even recognize the obvious problem. Lhota is no better. I don’t see this or the subway system even beginning to improve beyond a very marginal level until at the very least Cuomo is out of office.

  • Larry Littlefield

    Rather than have some kind of investigation and commission, why can’t the pols just ask their contributors at their next fundraiser why they charge so much? Or are these the pols who aren’t in on that action?

    The construction industry underfunded and retroactively increased its pensions in the 1990s, just like the public sector. So private projects are going non-union and open shop to avoid the soaring pension costs of union jobs. Those that do union jobs are left paying for all the past costs of public AND private construction. That means the MTA.

    On top of that they screwed the newbie, so there is a shortage of construction workers actually working because what they are now paid doesn’t reflect how high union labor costs are. As in the public sector.

    Add to that the fact that every contractor takes the publicly announced budget for a project as the lowest level to bid. And the MTA uses the inflated cost of the prior contract as the budget for the next one. And you see where it goes.

  • c2check

    If we can’t get costs under control to maintain, expand, and improve transit, NYC must stop growing yesterday.
    Send the jobs elsewhere. There are lots of cities that could use the investment.

    (of course building out better bus and bike networks would help)

    Or maybe we can just start over à la Futurama’s New New York, placing utilities in nice, easily accessible tunnels.

  • Fool

    Wow.

  • Larry Littlefield

    What about the “reimbursable” operating costs? Do capital projects pay for those in other countries?

  • neillevine

    Investigate mismanagement, starting with Lhota

ALSO ON STREETSBLOG

The governor broke ground on new facilities for Delta Airlines at LaGuardia Airport, which he called "a pillar of New York's transportation network." Photo: governor's office/Flickr

Council Members Grill MTA Execs on Transit Costs While Cuomo Breaks Ground for Delta

|
Compared to its international peers, the MTA's capital construction costs are nothing short of outrageous. So with Governor Cuomo asking for more money from New York City to fix the subways, it's understandable that City Council members want to know whether they'll be getting good bang for their buck. But at a hearing earlier today, MTA Managing Director Ronnie Hakim couldn't explain the MTA's cost problem, let alone how to fix it.

Will Council Members Who Want Transit Improvements Back Toll Reform?

|
At yesterday’s City Council transportation committee hearing, chair Ydanis Rodriguez hoped to engage the MTA and DOT concerning areas of the city that need more transit options. But despite being invited, according to Rodriguez, the MTA refused to send anyone. Instead, DOT Commissioner Polly Trottenberg promised to pressure the MTA to invest in transportation projects to improve commuter times between Manhattan and the edges […]