A meeting of the Permanent Citizens Advisory Committee (PCAC) to the MTA was convened at 12:00 noon on June 2, 2011, in the 5th floor Board room, at MTA Headquarters, 347 Madison Avenue, New York City.
The following members were present:
• Andrew Albert
• Ira Greenberg
• James F. Blair
• Christopher Greif
• David Buchwald
• Matthew Kessler
• Mark Epstein
• Trudy Mason
• Shirley Genn
• Edith Prentiss
• Randy Glucksman
• Michael Sinansky
• Stuart Goldstein
• Burton M. Strauss Jr.
• Jessica Gonzalez-Rojas
• Larry Rubinstein
• Neal Zuckerman
The following members were absent:
• Gerard P. Bringmann
• Marisol Halpern
• Sheila Carpenter
• Rhonda Herman
• Richard Cataggio
• Sharon King Hoge
• Francis T. Corcoran
• Thomas Jost
• Owen Costello
• Maureen Michaels
• William K. Guild
• Toya Williford
In addition, the following persons were present:
• William A. Henderson -PCAC Executive Director
• Jan Wells -PCAC Associate Director
• Ellyn Shannon -PCAC Transportation Planner
• Karyl Berger -PCAC Research Associate
• Jeff Rosen -MTA Real Estate
• Pamela Geary -MTA Real Estate
• Alan Kritzler -MTA OIG
• Hector Garcia -LIRR
• Matt Shotkin -Concerned citizen
• Clare Stuart -Concerned citizen
• Allen Zerkin -Concerned citizen
• George Haikalis -Concerned citizen
• Joseph M. Clift -Concerned citizen
• Ken Stewart -Concerned citizen
Approval of Agenda and Minutes
The agenda for the June 2, 2011 meeting was approved. The minutes of the March 3, 2011 meeting were approved as amended.
Chair’s Report
The PCAC, LIRRCC, MNRCC and NYCTRC Chairs’ Reports are attached to these minutes.
Mr. Greenberg noted his appreciation to Maureen Michaels and Gerard Bringmann for their service as LIRRCC Chair and Vice Chair, respectively, over the last two years. In response to Mr. Greenberg’s comments on changes in the MTA Board, Andrew Albert commented that Doreen Frasca was the first Transit Committee Chairperson who regularly went out to investigate the conditions in the system.
LIRRCC
Mark Epstein agreed with Mr. Greenberg’s comments in appreciation of Ms. Michaels and Mr. Bringmann. He noted that although they are not serving in leadership role, they will be staying on as active LIRRCC members.
Mr. Epstein said that he is also pleased that Amtrak and LIRR came to an agreement on the maintenance of the East River tunnels leading to Penn Station. He also stated that Right-of-Way cleanup remains an issue for the LIRR and that fare collection is still a priority for the LIRRCC. On the positive side, the LIRR can now better communicate with customers before they enter Penn Station, as an agreement has been made to give the LIRR access to the Madison Square Garden message board on 7th Avenue and the LIRR can now use Amtrak’s emergency message sign at the 34th Street entrance.
Edith Prentiss stated that she is particularly concerned with the way that customers with disabilities are commonly being directed to subways as a backup to LIRR service. She said that some people are travel-trained to use a certain route and are not able to use the subway system as a substitute. She said that this is a particular problem when Penn Station closes, as there are only three accessible ways into the station. Ms. Prentiss said that there is a need for better signage related to accessibility at Penn Station, but there is a larger issue of the need to look at how people are being rerouted in service diversions.
Trudy Mason noted that the NYC Council on the Environment has implemented recycling programs for electronic equipment and suggested that these programs might be useful in the LIRR’s Right-of-Way cleanup efforts.
Jim Blair said that the LIRRCC is to be commended for their proactive stance in dealing with Long Island Rail Road issues and said that its members are doing a great deal to bring LIRR into line.
Chris Greif commented that at some times station elevators are not working or turned off, but updated information on their status is not readily available to riders throughout their trip. He said that there is a need to have signage and more information about alternate travel paths when elevators are not available and that he is also concerned about impacts on the riders who rely on elevators and escalators when trains are rerouted or other travel paths are used.
MNRCC
Dave Buchwald thanked Neal Zuckerman for hosting the Cold Spring listening session that was held on March 30. Mr. Buchwald also thanked Randy Glucksman and Jim Blair for joining him at the Meet the Commuter Council event that took place in Grand Central Terminal on May 19.
NYCTRC
Andrew Albert commented on the Bus Time Pilot currently being conducted on the B63 route. He also highlighted NYC Transit actions to repair the Steinway Tunnels which carry 7 line subway service. Mike Sinansky noted the letter that the NYCTRC sent about bus diversions was prompted by NYC Transit’s actions during the MS Bike Tour and was that Council’s effort to prevent a similar situation during a half marathon event. He said that the Council is dissatisfied with NYC Transit’s response to the letter, as the members feel that it was very bureaucratic and did not demonstrate that NYC Transit is being proactive on behalf of the riders.
Mr. Albert stated that in the 1, 2, and 3 line subway diversions that occurred over the Memorial Day weekend, the diversions were for Saturday and Sunday only and were not continued through Memorial Day. Unfortunately, signage directing riders to shuttle buses was still in place on Monday, and he observed a number of people including tourists waiting for shuttle buses. Ms. Prentiss noted that on the A line in upper Manhattan there is often a lack of service notices.
Burt Strauss commented that when crosstown bus service is diverted due to parades on 5th Avenue, service diversion notices on bus stops are not taken down until well after the parade has passed and service is not restored promptly. Mr. Greif suggested that where an event such as a parade blocks a bus route, buses could run in two sections. Shirley Genn said that during a recent marathon at Ocean Parkway in South Brooklyn buses as well as other traffic was disrupted and that there were mobs of people waiting in the street because they could not cross the route.
Old Business
A motion was made by Ms. Mason that the recommendations of the Nominating Committee with respect to PCAC officers be accepted and that the slate of officers recommended by the Committee be elected. No further nominations were made, and the recommended slate, consisting of Ira Greenberg for Chair, William Guild for First Vice Chair, and James Blair for Second Vice Chair, was elected for a two year term.
New Business
The Committee discussed proposals for the annual PCAC project. Mr. Greenberg said that a proposed project that the PCAC Executive Committee had been distributed via email to council members for review. He noted that an alternate proposal had been developed. Mr. Albert said that the alternate was developed in response to a concern that the original proposal is overbroad. Ellyn Shannon noted that the said that the Minutes Matter report continues to get lots of attention and that the alternative proposal follows from that. She said that the alternative consists of three white papers as stated the summary that had been distributed. Ms. Shannon said that this project could be useful in that it addresses the MTA’s needs to better communicate its mission and accomplishments.
Mike Sinansky noted that 2011 marks the 30th anniversary of the Councils and said that he would like to see the current project review past projects that the PCAC has undertaken and also examine the impacts that the project reports have had. He said that this would help in deciding whether the PCAC had achieved its objectives through past project and what subjects need to be revisited. Mr. Greenberg agreed that the PCAC should look at its achievements as part of the alternative proposal. David Buchwald stated how important it is for each white paper to translate the issues that it discusses into impacts that will be felt by riders. A motion was made that the alternate proposal, with the addition of Mr. Sinansky’s amendment, be adopted as the PCAC’s 2011-2012 project. Mr. Greenberg said that in order for the project to be timely, the PCAC should commit to a project. The Committee voted to adopt the alternate proposal, as amended, as the 2011-2012 PCAC project.
Introduction of Jeffrey Rosen, Director — MTA Real Estate, to Discuss the State of the MTA’s Real Estate Holdings and Plans for “Right-Sizing” these holdings to benefit MTA Finances
A copy of Mr. Rosen’s presentation is on file in the PCAC office.
Mr. Rosen said that much of the information that he would cover was previously presented to MTA Board’s Finance Committee. He said that the recently announced plans to restructure the MTA’s office space and sell its Madison Avenue real estate holdings is part of a process that the MTA Real Estate is going through with all MTA Holdings. He said that the MTA Real Estate operation generates $200 million a year in incidental revenues and that the office space sales promise to generate significant capital funds.
Mr. Rosen said that the restructuring of office space is made possible by reductions in force at the MTA. Recent staff reductions have increased the office vacancy rate to 12-13 percent in terms of empty desks and has opened up important opportunities to increase the density of employees in the MTA’s office space.
Mr. Rosen explained that traditionally, the space planning that has been performed by the MTA’s agencies has been decentralized. An important metric for evaluating the efficiency of an organization’s use of space is usable square feet per desk and the MTA’s usage is much higher than other similar organizations in terms of usable square feet per desk. He said that the MTA’s leased office space has been reduced by 10 percent, but reducing leased space does not generate the greatest possible savings because these locations tend to be inexpensive and efficiently used.
A more promising target is the MTA’s holdings on Madison Avenue; Mr. Rosen stated that it is not efficient for the MTA to renovate their facilities and stay at the Madison Avenue addresses. These buildings are functionally obsolete and to make them into modern office facilities would entail significant expenses. He said that MTA Real Estate is presently in the process of interviewing architect/broker teams to assist in the move from Madison Avenue facilities. The hope is that the sales process will be well timed to take advantage of an upswing in the development cycle.
Mr. Strauss inquired about the use of air rights to increase the development potential of the Madison Avenue properties. He asked what level of air rights could be added to the Madison Avenue properties. Mr. Rosen responded that as of right a developer could build at a floor area ratio of 15, but that he could use air rights to add 6.6 additional points of floor area ratio to the maximum building size.
Ms. Mason asked if there are any connection between the MTA, Grand Central Terminal and the MetLife building air rights. Mr. Rosen stated there is no connection and that successor companies to the Penn Central Railroad retained any air rights from the Terminal. Ms. Mason asked about plans for the space currently occupied by Metrazur in the Terminal. Mr. Rosen said that there is a request for proposals out for this space and that they are hoping and expecting that Apple will submit a proposal.
Mr. Greif stated that he read in the Daily News and heard on Channel 7 that the MTA’s operations in the Madison Avenue complex will be completely closed out in the future. Mr. Rosen responded that this will occur but not all at once as MTA employees will be moved to other locations over time.
Jessica Rojas wanted to know whether this plan is final or just a proposal. Mr. Rosen stated that this plan has been presented to the MTA Board as an information item and that they have not yet been asked to vote on anything. Eventually a proposal will be brought to the Board for an authorization to engage brokers to begin the process.
Karyl Berger asked what the planned for disposition of space currently occupied by the MTA at the Graybar building is and what is located there now. Mr. Rosen stated that there is lots of free space there as some Metro-North Railroad functions have been moved to other locations. At present, all options are open, including renewing the lease on this space.
Mr. Albert asked if the Madison Avenue buildings are going to be sold outright. Mr. Rosen responded that most likely the disposition will be in the form of a long-term ground lease.
Mr. Blair asked whether the options of desk sharing and some employees working at home have been considered. Mr. Rosen stated that these options have been examined and that changes of this type could be beneficial for workers as well as the MTA.
Mr. Greenberg asked why MTA headquarters is still located at Madison Avenue rather than 2 Broadway. Mr. Rosen stated that 2 Broadway was originally designed and remodeled to replace NYC Transit facilities at Jay Street and the New York Coliseum site. Ms. Mason commented that when 347 Madison Avenue was purchased 30 years ago, the purpose was to generate revenue as well as house MTA Headquarters.
Mr. Sinansky asked if all buildings in the list of holdings in Mr. Rosen’s presentation are being sold. Mr. Rosen said that some of the MTA’s holdings may not be sold. In some cases it may be most efficient to maintain existing properties and not to move the functions that are housed there.
Ken Stewart asked what is being done with unused retail space in subway stations. Mr. Rosen said that they are currently bringing in $25 million per year in retail revenue and that the MTA wants not only to provide for more retail space, but also to change the procedures used to select tenants so they don’t scare off major retailers. They would like to create a different type of atmosphere in the stations and know that there is a tipping point where a critical mass of activity is reached and past that point retail takes off. The Real Estate Department has been pushing increased use of IND division mezzanines in the subway system and is working with retailers and community groups to find new users for these areas. Mr. Rosen explained that the use of some station space is not economically feasible; he said that there are some storefronts at Bryant Park, but they are not air conditioned and it would not be efficient to provide air conditioning to accommodate retail use. The MTA will also do some master leasing, where a large space is made available to a single entity and MTA does not have to select individual stores to fill the space.
Mr. Stewart asked whether the MTA can sell naming rights to station entrances and exits. Mr. Rosen stated that some of the talk about naming rights is overblown, but there are possibilities for generating some revenue in this area. He said that there is a need for set procedures for signage and naming to facilitate the sales of naming rights.
Mr. Greif asked about the current status of 370 Jay Street. Mr. Rosen stated that this property is part of the NYC Transit master lease with the City of New York and reverts to the City if not used for transit purposes. The MTA has discussed the use of this property with the City and is reevaluating the wisdom of spending money through the capital program to renovate it. The plan for the property was to move employees currently housed in leaseholds expiring in 2015, but to do this would require a full renovation of the Jay Street property.
Mr. Buchwald asked Mr. Rosen not to forget PCAC staff and PCAC council meetings in space planning for the MTA. Mr. Buchwald also asked if Mr. Rosen if he could talk about planning for rail right-of-way and system expansions that require additions to the right-of-way and discuss the role that Real Estate have in this process. Mr. Rosen stated that MTA Real Estate does not do planning for the system, but works closely with the operating agencies and the MTA Planning Department to understand what projects are coming up and are intimately involved with any acquisition of property that might be required,
Larry Rubinstein asked if Real Estate gets involved with the operation of LIRR parking facilities. Mr. Rosen stated that the Real Estate Department functions as asset managers, rather than property managers. As such, the Department monitors operating agreements and its Transit Oriented Development group looks for possibilities that may be attractive to developers, but any project would need to generate enough value to pay for parking structures replace existing surface parking and provide for the development itself.
Ms. Shannon asked if there is any inherent value to centralization of functions. Mr. Rosen stated that there is a value to having MTA functions close to each other. There has been thought about subletting 2 Broadway, but it was rejected because of the benefits that it has created. He said that the commuter railroads are headquartered in their traditional homes, and this arrangement is preferred by the LIRR and Metro-North. He said that the balancing factor in deciding where to locate MTA functions is the cost of space in Midtown Manhattan versus other locations. This decision has not been made in a vacuum, however, as the current arrangement, including the 2 Broadway location, must be dealt with and is an important factor in determining the best course of action going forward.
Mr. Blair asked if Mr. Rosen could comment on efficiency of the MTA’s real estate operation. Mr. Rosen replied that there is a lot of the process that is required by law, but we are seeking to streamline the process as much as is possible.
Ms. Prentiss asked if there is a basic inequality between the facilities at Grand Central Terminal and Penn Station, and gave as an example the public restrooms. Mr. Rosen stated this would be an issue for the properties’ management and does not fall under the Real Estate Department’s responsibilities.
Adjournment
The meeting was adjourned at 2:20 p.m.
Respectfully submitted.
Permanent Citizens Advisory Committee to the MTA
Chair’s Report-Ira Greenberg
June 2, 2011
Mark Epstein has been elected Chair of the Long Island Rail Road Commuter Council and Matt Kessler was elected Vice Chair at the LIRRCC’s May meeting. A big. thanks to the previous Chair and Vice Chair, Maureen Michaels and Gerry Bringmann, who due to other commitments did not seek reelection, for all of their work in these leadership roles. I am sure that the whole LIRR Council would agree that their involvement was a tremendous help to the LIRR rider. As the Board member representing the LIRR I found Maureen’s input and involvement invaluable.
It was distressing to learn that Governor Cuomo did not renominate MTA Board Member Doreen Frasca for another term. Ms. Frasca has been a conscientious and hardworking member of the Board and Chair of the Transit Committee who never lost sight of the impact of the MTA’s actions on the riders. In addition, she has specific expertise in the field of public finance, as in her professional life she provides financial advice to the owners and operators of airport facilities. She was an independent board member with a deep understanding of the credit markets. In this time when decisions about debt are so critical to the future of the MTA, replacing Doreen Frasca on the Board is a major loss to the organization.
The State Legislature approved a budget on April 1 that included the $100 million net cut in MTA funding, which we opposed. We have yet to hear details of how the MTA will deal with this loss in funding. With the change in leadership in the Senate and a new Chair of the Assembly Committee on Corporations, Authorities, and Commissions, which conducts oversight of the MTA, there are some new voices on the state of the MTA. Since our last meeting, we testified twice on MTA issues.
On April 29, Bill Henderson and I testified at a hearing convened by the Assembly Committee on Corporations, Authorities, and Commissions. After a session of nearly three hours with Jay Walder and MTA operating agency Presidents we made a case for making MTA agencies’ operating statistics better reflect the riders’ experience. The new Chairman of the Committee, James Brennan of Brooklyn, was interested in our perspective. On May 5 I testified before the Senate Investigations and Government Operations committee about the finances of the MTA and the prospects of ongoing structural deficits, emphasizing the need for passenger based metrics as outlined in the Minutes Matter report and the need for continued capital investment as well as legislature removing funding from the MTA and failing to adequately fund capital projects. Sheila Carpenter joined me at the witness table to discuss the impact of Long Island Bus changes and mobility needs on Long Island. Copies of the prepared statements for both of these hearings are in your packets today.
On May 17th, Jan and Ellyn traveled to Orange County, California to attend the Transportation Research Board’s 4th International Transportation Systems Measurement Conference. The event was held over three days at the Beckman Center of the National Academies in Irvine, with 140 transportation professionals in attendance. Jan and Ellyn made a poster presentation on the findings of the PCAC’s recent Minutes Matter research report. Conference speakers included Joshua Schank, President of Eno Foundation, who once worked as the PCAC transportation planner; and Naomi Renek, Assistant Director, MTA Grants Management. Presentations that created a lot of interest were: data reporting through visualization technology; economic impacts as a performance criterion; and transportation performance-based decision making as demonstrated by the United Parcel Service through its use of technology, innovation and attention to time management. Clearly, performance metrics are on the cutting edge of new approaches and there is a lot to be learned from other transportation agencies, research organizations, and the private sector.
Jan Wells and Karyl Berger attended the Citizens Budget Commission breakfast on April 6 where the Commission released its report “Benchmarking Efficiency for the Metropolitan Transportation Authority’s Services”. The report is intended to support the ongoing efforts to control costs in the MTA by identifying unit cost measures and other efficiency indicators that are used to compare the MTA’s commuter railroads, bus services, and subways to those in other large U. S. cities. PCAC staff found it to be a very good companion piece to our Minutes Matter report, and Dr. Wells, wrote a letter to the Citizens Budget Commission, to insure they were aware of our Minutes Matter report, which seeks to benchmark service performance.
The new MTA website has been live for just over a week. The website content is largely the same as it was, but its presentation and organization has changed considerably. We have had several comments about the site from members and staff is compiling a letter to MTA management discussing the changes and offering recommendations for improvements. If you have any comments on the site that you would like communicated to the MTA, please contact a member of the PCAC staff.
There have been some major changes in the leadership at the Business Service Center (BSC). President Len DeSimone has been transferred back to MNR to work on special projects until his retirement in June. Chief Operating Officer Charlie Monheim will be taking over the operation of the BSC. This move comes amid a somewhat rocky startup of the BSC.
Please note that we now have a complete set of flyers for the three Councils. A big thank you goes to Jan Wells and Hye-kyung Yang, our outstanding outreach person, for putting these brochures together.