Second Avenue Subway Review

Results of Comprehensive Project Reviews Second Avenue Subway & East Side Access Presented to: Presented to: MTA Capital Construction, Planning and Real Estate Committee MTA Capital Construction, Planning and Real Estate Committee July 22, 2009 May 20, 2009

March 2008 30-Day Review ƒ Short time frame to meet legislative requirements for submission of 2008-13 Plan in anticipation of Congestion Pricing ƒ Input to proposed 2008-13 Plan ƒ Budgets and schedules were revised z

SAS -- $ 4.347 billion; June 2015

z

ESA -- $ 7.244 billion; February 2015

ƒ As a result of accelerated review, market uncertainties were accounted for outside the individual project budgets

March 2008 Risk Reserve ƒ $747 million Risk Reserve was established to address project and market uncertainties ƒ Funds would be allocated to projects pending further comprehensive reviews

July 2009 Comprehensive Review ƒ Done in close consultation with Office of Construction Oversight (OCO)/Independent Engineering Consultant (IEC) ƒ Risks examined in a more comprehensive manner ƒ Consensus reached on cost and schedule ƒ Reserves reallocated to individual project budgets

Guiding Principles of July 2009 Review ƒ Establish ranges of costs and schedules for best and worst case scenarios for both projects ƒ Identify target budgets and schedules within the ranges based on ability to mitigate risks ƒ Manage projects to the targeted budget and schedule

Second Avenue Subway– Budget & Schedule $ Billions

* MTA costs assume $222 million in immediate savings opportunities, including meeting rolling stock needs through a small reduction to NYC Transit’s existing spare fleet. For consistency with MTA estimates, deleted $222 million in mitigations from FTA estimates; these opportunities are still under review by FTA.

East Side Access – Budget & Schedule $ Billions

* $463 million for ESA rolling stock (above the $202 million included in the project budget) is now included in a reserve pending completion of a simulation of opening day service and fleet need. For consistency with MTA estimates, the FTA estimates assume these costs are carried in a reserve as well; still under review by FTA.

Management Plan ƒ Expand OCO/IE risk reviews to all major contracts to identify mitigation strategies ƒ Implement risk identification, rating and project execution strategies recommended by FTA ƒ Monitor risk mitigation implementation and results ƒ Strengthen project controls processes z

Enhanced Governance Initiative (EGI)

ƒ Provide regular and comprehensive reporting to Board on status of each project