D Metropolitan Transportation Authority

Transcription

1 .-~. D Metropolitan Transportation Authority Finance Committee Meeting September Committee Members A. Saul, Chair F. Ferrer, Vice Chair J. Balian J. Banks, III R. Bickford N. Brown A. Cappelli I. Greenberg J. Kay C. Moerdler M. Page M. Pally J. Sedore, Jr. C. Wortendyke

2 .._..._ MEETING AGENDA MTA FINANCE COMMITTEE Monday, September 16, :30 PM 347 Madison Avenue Fifth Floor Board Room New York, NY AGENDA ITEMS I. PUBLIC COMMENTS PERIOD II. III. IV. APPROVAL OF MINUTES - JULY 22,2013 COMMITTEE WORK PLAN BUDGETS/CAPITAL CYCLE BudgetWatch (handout) FinanceWatch IV-1 V. MTA HEADQUARTERS & ALL-AGENCY ITEMS Action Items: Resolution to Authorize the Execution, Filing and Acceptance V-1 of Federal Bonds Selection of Bond Underwriters (to be distributed at meeting) Report and information Items: Annual Review of MTA's Derivative Portfolio - Including Fuel Hedge (distributed separately) Overtime Report (distributed separately) MTA 2013 Semi-Annual Investment Report V Preliminary Budgetl Financial Plan (Material previously distributed) Procurements V-14 VI. VII. METRO-NORTH RAILROAD (No Items) LONG ISLAND RAIL ROAD Action Item Procurements VII-1 VII-3

3 AGENDA ITEMS VIII. IX. NEW YORK CITY TRANSIT, and MTA BUS OPERATIONS Procurements BRIDGES AND TUNNELS Procurements VIII-1 IX-1 X. FIRST MUTUAL TRANSPORTATION ASSURANCE COMPANY Information Item FMTAC Annual Presentation -Including MetroCat Re Update (Material Separately Distributed) FMTAC Financial Statements FMT AC's Actuarial Loss Reserve Certification FMTAC Investment Performance Report X-1 XI. MTA CONSOLIDATED REPORTS XII. JULY Statement of Operations Overtime Report Report on Subsidies Positions Subsidy, Interagency Loans and Stabilization Fund Transactions Farebox Recovery Ratios MTA Ridership Fuel Hedge Program JUNE Statement of Operations Overtime Report Report on Subsidies Positions Subsidy, Interagency Loans and Stabilization Fund Transactions Farebox Recovery Ratios MT A Ridership 12-Month Allocation Mid-Year Forecast REAL ESTATE AGENDA Action Items Report and Information Items XI-1 XI-9 XI-13 XI-20 XI-23 XI-26 XI-27 XI-51 XI-54 XI-61 XI-65 XI-72 XI-75 XI-78 XI-79 XI-103 XII-3 XII-43 Date of next meeting: Tuesday, November 12, 2013 at 12:30 PM

4 ..... _.... _... _._.._ Minutes of the MTA Finance Committee Meeting July 22, Madison Avenue New York, NY 12:15 PM The following Finance Committee members attended: Hon. Andrew M. Saul, Chairman Hon. Fernando Ferrer Hon. Jonathan A. BaHan Hon. John H. Banks III Hon. Robert C. Bickford Hon. Norman Brown Hon. Allen P. Cappelli Hon. Ira Greenberg Hon. Charles G. Moerdler Hon. Mark Page Hon. Mitchell H. Pally Hon. James L. Sedore, Jr. Hon. Carl V. Wortendyke The following Finance Committee members did not attend: Hon. Jeffrey A. Kay The following Board Members were also present: Hon. Andrew Albert Hon. Susan Metzger Hon. Mark Lebow Hon. John Molloy The following also attended: Nuria Fernandez Robert Foran James Henly Douglas Johnson Patrick McCoy Jeffrey Rosen William Wheeler Stephen Berrang Paul Fleuranges Chairman Andrew M. Saul called the July 22,2013 meeting of the Finance Committee to order at 12:30 PM. 11-1

5 I. Public Comments There was one public speaker. William Henderson, Executive Director, PCAC, commented on service restorations and funding. II. Approval of Minutes The MTA Board approved the minutes to its prior meeting held on June 3, III. Committee Work Plan There is no change to the 2013 work plan. IV. Budgets/Capital Cycle A. BudgetWatch Mr. Johnson noted that there is no BudgetWatch for July. A special session of the Finance Committee will be held at the Board Meeting on July 24, 2013 to discuss the updated Forecast for 2013, a Prel iminary Budget for 2014 and an updated Financial Plan through B. FinanceWatch Mr. McCoy reported on recent transactions. On June 6, 2013, MTA executed a $7,702,834 million ultra-low sulfur diesel fuel hedge with Goldman, Sachs & Co.!J Aron at an all-in price of $2.8142/ga11on. Three of MTA's existing approved commodity counterparties participated in competitive bidding on the transaction: Deutsche Bank, Goldman, Sachs & Co.!J Aron and J.P. Morgan Ventures Energy Corporation. The hedge covers the period from May 2014 through April On May 31, 2013, MTA issued $500 million of MTA Transportation Revenue Bonds, Series 20 13C, to finance existing approved transit and commuter projects. Proceeds of the issue will be used to finance existing approved Transit and Commuter Capital Projects. The bonds have an average life of years and an all-in true interest cost of 4.25%. The transaction closed on June 1 J, The transaction was Jed by book-running senior manager JP Morgan, together with special co-senior manager Loop Capital Markets. Hawkins Delafield and Wood served as bond counsel and Lamont Financial served as financial advisor. On July 2, 2013, MTA priced $ million of MTA Transportation Revenue Bonds, Series 20130, to refinance commercial paper notes that were issued to finance existing approved transit and commuter projects. The Series 20] 3D bonds were issued as tax-exempt fixed-rate bonds with a final maturity of November IS, The transaction closed on July ll, The transaction was led by book-running senior manager RBC Capital Markets, together with cosenior manager M.R. Beal & Company. Nixon Peabody served as bond counsel and Lamont Financial served as financial advisor. MTA delayed the originally scheduled pricing of the Series 2013D Bonds by six business days due to market volatility. The all-in TIC for the Series 11-2

6 D was 4.63%, reflecting deterioration in market conditions since the pricing of the Series 2013C Bonds. Mr. Bickford asked why the BIC was charged for the Series 20 l3c and Series 2013D transactions and if the MT A has requested a waiver of the BIC for new money transactions. McCoy stated that MT A has been able to secure a waiver of the BIC for the refunding transactions; however. the Series 20l3e and Series 2013D Bonds were not included in that waiver. Mr. McCoy noted that the State has stated that the BIC is required by law for new money transactions and the revenue from the BIC is included in their budget. v. MTA Headquarters and All-Agency Items A. Action Items Mr. Johnson reported that there were four action items. 1. MT A Capital Plan Amendment Mr. Stewart presented the amendment to the Capital Plan, provided an overview of the contents of the Plan Amendment and some detailed highlights of specific changes. There are several important factors driving this Plan Amendment. The Amendment identified at the project-level the details on how the MTA is budgeting the $2 billion efficiencies promised in the January 2012 Amendment that achieved full funding for the Capital Plan. The Amendment also supports the ongoing process of keeping the Capital Plan up to date: With this amendment, all budgets and funding levels will reflect the latest scopes, schedules, and budgets which are critical to our transparency commitment. Finally, the Amendment programs $5.8 bi1!ion in new mitigation projects that will harden the MTA system against future climate events and disruptions. These monies are in addition to the $4.8 billion in Sandy recovery projects programmed in the January 2013 Amendment. Mr. Stewart noted that the Plan Amendment will increase the Capital Plan to $34.8 billion. The Plan Amendment also reflects $4.8 billion in Sandy recovery projects. The MTA amended the Plan back in January 2013 and has now added the $5.8 billion in new mitigation projects. All recovery and mitigation projects have been programmed in a dedicated security and disaster recovery section. This same approach proved effective in managing the 9111 recovery, and it is designed to facilitate tracking the recovery and mitigation efforts separately from the ongoing state of good repair core work. Mr. Stewart stated that the Capital Plan has been through several revisions since its inception. This is the third amendment to the capital plan. The first amendment fully funded the last three years of the capital plan and promised $2 billion in efficiencies. The second amendment added in $4.8 billion in Sandy Recovery projects. This amendment adds in the $5.8 billion in proposed mitigation projects. The Sandy recovery projects and the proposed mitigation projects add substantially to the Capital Plan. effectively doubling the capital commitment plans on an annual basis tor the

7 next few years. Mr. Stewart noted that as discussed in previous updates to CPOC, the MTA Agencies have been working to achieve $2 billion in efficiencies promised in the January 2012 amendment. MTA agencies have already completed 41% of the target or $825 million. The agencies have budgeted the balance of the savings (59%) or about $1.2 billion. The Plan Amendment ensures that the remaining 59% of efficiencies are implemented at a detailed project-level. Mr. Berrang outlined the impact on each agency of the capital amendment. With the addition of over $5 billion in mitigation projects, NYC Transit will have a capital plan of approximately $20 billion. Similarly the addition of $46 million in mitigation projects for MTA Bus brings its capital plan to nearly $400 million. Mr. Berrang stated that NYC Transit achieved its savings through good bids, scope revisions and re-sequencing of projects. Some projects were re-sequenced into the next Capital Plan to better reflect the timing of evolving needs and to align with other capital projects along the right-of-way. Some ofthe savings are also going to fund new needs that have emerged in the course of this Plan. Finally, this amendment will address NYCT's ten percent issues in such areas as track, depots and insurance. Mr. Berrang noted that LIRR's capital program grew to nearly $3 billion with the addition of $409 million in mitigation projects. The LIRR combined refined scopes and estimates, good bids, productivity and project re-sequencing to achieve the efficiency savings. Efficiencies in the LIRR capital plan are headlined by Jamaica Capacity Improvements, with $79 million in Phase 1 savings due to refined estimates and good bids and another $19 million achieved by rephasing the schedule for Phase II early design. An improved diesel fleet strategy allowed for savings of $41 million in this capital plan by using existing equipment versus buying new. Additional savings include a targeted approach to replacing ties saving $26 million and improved productivity on the Atlantic A venue project saving $20 million along with some good bids. LIRR also re-sequenced some work into the next Capital Plan to take advantage of evolving needs and more favorable alignment with other capital projects. As with all agencies, some LlRR savings is being applied to fund critical new needs, including Main Line double track Phase I construction and East River Tunnels track. Finally, this Amendment will address 10% issues related to track and insurance. Mr. Berrang stated that MNR capital program grew to $2 billion. When combined with the previously approved recovery amendment, the mitigation projects increase the MNR capital program by over $400 million. Unique among the agencies, MNR achieved its target primarily through productivity improvements and not utilizing good bids. MNR identified ways to incrementally improve work productivity through better coordination and expand right-of-way access for combined savings $32 million. MNR opted to rehabilitate existing yard locomotives, rather than purchasing new equipment, thus saving $13 million. MNR worked to reduce administrative costs for the capital program, thus saving $12 million. MNR also recognized opportunities for re-phasing scopes where project timelines meant that funding is not required until the timeframe. MNR did not have any significant new needs, but this Amendment will address 10% issues related to signals and power.

8 ~~ Mr. Berrang noted that this Amendment brings net increase to MTACC's capital program of $126 million. The most significant change to the MTACC plan is a $247 million budget increase for East Side Access and Regional Investments. This is based upon the results of the May 2012 risk-infonned budget and schedule update. Half of the increase is funded from internal MT ACC program efficiencies and half is funded from MTA HQ. In addition, a modest grant of $2 million was added into the program for the construction of an ESA elevator in GCT. The budget for Second A venue Subway, as well as the other mega projects, remains unchanged. Finally, this Amendment will address 10% issues in Regional Investments. Mr. Berrang noted that the approval of the Amendment for Bridges and Tunnels is subject to approval of the MTA Board the MTA Board but not the CPRB. B&T's capital program grows by $100 million in mitigation project to a total of about $3 billion. Bridges and Tunnels was unique among the agencies in that it primarily used good bids to achieve its efficiency target. One project at the Throgs Neck Bridge was re-phased, with $75miIlion of work moved to the second phase ofthe project in the plan. This repackaging lowered overall project cost and risk and had no impact on either completion date or customer benefits. Other efficiency savings were realized at the Henry Hudson Bridge, when 3 projects were combined into one, saving $12 million. As with other agencies, some savings are being applied to fund additional needs, including advancing some Verrazano-Narrows ramp work from the Capital Plan and expediting the delivery of an essential link in the new Staten Island-Brooklyn HOV/bus corridor. Since B&T is not a CPRB Agency, 10% issues do not apply. This Amendment also includes the introduction of Sandy inspired mitigation projects. These projects have been developed in line with the recommendations of the Statewide 2100 Commission report and are designed to improve the resiliency of the MTA system in the face of future climate events and disruptions. In total, the amendment reflects $5.8 billion in proposed mitigation projects. All of these projects are anticipated to be funded with federal grants. The most significant change is the addition of proposed funding for the $5.8 billion in mitigation scope. Federal participation for mitigations is, of course, subject to future appropriation, discussion and approval with our partners at FTA and FEMA. In summary, the Amendment represents an essential update to our 2010~2014 Capital Plan. It reflects $34.8 billion of vital investments that will enable the MTA to rebuild, strengthen, and expand the MTA system to provide mobility and economic prosperity for the region. Mr. Berrang stated that MTA Capital Programs and the Agencies will work together to ensure that all of these projects are delivered in a coordinated manner that ensures that the MT A system receives vital investment, while minimizing disruption to its customers. Mr. Page asked if the mitigation projects are contingent on receiving federal funding. Mr. Berrang noted that MT A has received an allocation of $900 million from the federal government for mitigation projects to date and are working to determine the total amount of federal mitigation funds available to MTA. The Federal government has a total of $3.35 billion for mitigation projects available for disbursement to all parties affected by Superstonn Sandy. Mr. Stewart noted that MT A would not proceed with the mitigation projects without adequate federal funding. Mr. Pally noted that not all projects may receive federal funding but approving the 11-5

9 amendment would allow planning to progress on these projects. Mr. Pally also noted that under state law, projects must be included in five year capital plan in order to be eligible for capital financing. Mr. Ballan asked for a clarification ofthe federal funding assumptions for mitigation projects. Mr. Berrang noted that MTA has received 72% of the total available federal funds authorized by Congress for Superstorm Sandy recovery allocated to date. Mr. Albert asked a clarification of the Staten Island Bus Rapid Transit mitigation project Mr. Berrang noted that the Staten Island Bus Rapid Transit is proposed new service designed to be able to provide additional transportation to the ferry in the event of disruption of bridge service during a future event. Mr. Foran noted that MTA was authorized to issue up to $950 million for bonds for repair and mitigation projects and had $160 million in pay-as-you-go capital for the capital plan amendment. MTA initially assumed that federal government would provide 75% of the funds for these projects and MTA would provide the remaining 25% for the local match. Based on experience to date, MT A's expectation is that federal government would provide 90% of the funds for these projects and MT A would provide the 10% for the local match. MT A has available bond proceeds and pay-as-you-go capital for local match funds. Mr. Page asked if federal funds were available for planning and if MTA had adequate liquidity. Mr. Berrang noted that MTA can use bond proceeds to fund these projects and MTA can reimburse MTA with Federal funds when received. Mr. Pally noted that there are two types of Sandy-related projects -- repair and mitigation. Mr. Stewart noted that amendment to the Capital Plan adopted in January for $4.8 billion provided for the repair projects and the amendment currently being considered for $5.8 billion is for the mitigation projects. The Committee voted to recommend the action item before the Board for approval. 2. Authorization to ModifY Swap Agreements To obtain approval of a resolution, "authorizing MT A, MTA New York City Transit, and MTA Bridges and Tunnels as needed (a) to enter into agreements relating to changes in laws impacting swap transactions as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Act"), including the International Swap Dealers Association, Inc. ("ISDN') March 2013 DF Protocol and future ISDA Protocols (collectively, the "DF Protocols") and/or direct agreements to be entered into with individual swap dealers; and (b) to make necessary amendments and elections to existing swap agreements pursuant to such DF Protocols and direct agreements. Such resolution also ratifies all prior actions taken with respect thereto or with respect to the ISDA August 2012 DF Protocol. The Committee voted to recommend the action item before the Board for approval. 11-6

10 3. Transportation Revenue Anticipation Notes ("RANs") To obtain authorization of the necessary documentation and activities to issue taxable revenue anticipation notes under the Transportation Revenue Resolution ("RANs") to provide for shortterm liquidity of up to $350 million. The notes will be used from time to time, and may be repaid and reissued, to address potential unanticipated operating funding needs. The Committee voted to recommend the action item before the Board for approval. 4. Transportation Revenue Commercial Paper Program To obtain authorization of the necessary documentation and activities to issue up to $350 million of Transportation Revenue Bond Anticipation Notes ("BANs") to be issued in the form of Commercial Paper ("CP-3") to finance existing approved transit and commuter capital projects. Authorization was requested for long-term financing to permanently finance such CP- 3 from time to time including accrued interest thereon. Mr. McCoy noted that an RFP process will be conducted when the Commercial Paper is issued. This action item only provides the authorization to issue $350 million in Commercial Paper to replace the existing capacity provided by the Royal Bank of Canada. Mr. BaHan asked if this would change the amount ofmta's debt in the variable rate mode. Mr. McCoy confirmed that the percent ofmta's debt in the variable rate mode would be unchanged. The Committee voted to recommend the action item before the Board for approval. B. Information Items Mr. Johnson noted that there were two reports and information items: 1. The MT A is seeking to adopt revisions to the All Agency Procurement Guidelines and All Agency Guidelines for Procurement Services.. This item will be discussed at the Govemance Committee and then voted on by the Board. 2. A Regional Context for Twenty Year Capital Needs Mr. Wheeler presented a report, "A Regional Context for the Twenty Year Needs Assessment", which provided a larger context for the twenty year needs in the MTA region which is the first step in developing a five-year capital program. The report outlined several key factors including: a growing transit demand and complexity of travel paths and times, growing economy with changing types and locations of employment, a new generation that embraces transit but expects a "21 st" century system and strategic investments in the system beyond the core program needed to sustain ridership growth and the regional economy. Mr. Wheeler noted that travel demand is changing. There has been significant MTA ridership growth over the past twenty years, but peak hour transit use to the Manhattan central business district is flattening. Commutation ticket sales are trending down while non-commutation tickets sales are growing. Residence of workers is 11-7

11 ... _ forecast to change. Annual crossing of MTA Bridges and Tunnels has been trending down since 2007 mirroring the national drop in auto usage. Mr. Wheeler noted that there were several key factors affecting regional travel changes including population changes, economic transition from "9 to 5" jobs to "2417/365" jobs and the emergence of non-traditional work patterns. There is continued population growth in the region and the characteristics of the younger "millennials" and older "boomers" were affecting transit use. MT A forecasts continued employment growth in the region and growth in industries that are less tied to the "9 to 5" jobs. The factors of a changing demographics and employment, growing transit use but peak hour flattening, new "2417/365" travel patterns spreading ridership to hours where capacity exists and transit travel to suburbs and among outer boroughs growing where capacity exists suggests a "new normal". As MT A addresses these issues, it must also prevent capacity and reliability backslide and maintain a state of good repair and normal replacement, complete projects such as a full length Second Avenue Subway addressing longstanding problems and use possible technology strategies to address current trends and support future growth. MTA should also address subway capacity obstacles, optimize the subway and bus networks and optimize the rail network build new markets, build a "21 st" century transit system and build and operate a resilient MT A Mr. Wheeler stated that the next steps to accomplish these goals MTA would continue outreach to stakeholders, brief the CPOC committee on core capital needs, publish the Twenty Year Needs Assessment document, launch development of the Capital Plan and then present that Capital Plan. Ms. Fernandez noted that this material will be presented to the CPOC committee in September. Mr. Page noted that this presentation contained a large amount of valuable data and asked if smaller group meeting could be scheduled to discuss the report's findings in more details. Ms. Fernandez stated that smaller group meetings would be scheduled to discuss this report. C. Procurements There are seven procurement items for MT A headquarters, six competitive and one ratification, for a total of$1.048,700. The Committee voted to recommend the procurement items before the Board for approval. VI. Metro-North and Long Island Railroad A. Procurements There is one non-competitive and two competitive procurements for MNR for a total of $11,620,

12 ~ The Committee voted to recommend the procurement items before the Board for approval. There are two competitive procurements (both are multi-agency) for LIRR for a total of $ 11,965,243. The Committee voted to recommend the procurement items before the Board for approval. VII. NYCT/MTA Bus Operations A. Action Item The action item regarding omnibus budget modifications to the capital program was withdrawn. B. Procurements There are two non-competitive and six competitive procurements for NYCT and MTA Bus operations for a total of$382,376,347. The Committee voted to recommend the procurement items before the Board for approval. VIII. Bridges and Tunnels A. Procurements There are one non-competitive procurement and seven competitive procurements for Bridges and Tunnels for a total of$16,990,239 million. The Committee voted to recommend the procurement items before the Board for approval IX.FMTAC A. Procurements There were no procurements items for FMTAC. X. MTA Consolidated Reports This month includes consolidated reports for April and May XII. Real Estate Agenda A. Action Items Mr. Rosen noted that there were twenty-one action items for committee approval. Mr. Rosen highlighted three such items: the release of 19 East Houston Street, New York, NY from 11-9

13 ~ ~------~ NYCT's master lease with the City of New York, in consideration of cash and substitute property having a combined value of approximately $40 million; a new lease for warehouse and archival storage space in Brooklyn to be used by the Transit Museum (so as to free up space at 2 Broadway to accommodate MTA headquarters functions to be relocated from Madison Avenue) and by various NYCT departments (to replace warehouse space that was damaged by Superstorm Sandy); and an all-agency policy to govern the MTA's responses to requests by prospective commercial sponsors to acquire naming rights with respect to MTA station facilities. In response to questions posed by Mr. Pally, Mr. Rosen confirmed that such proposed naming rights policy would not apply to proposals to rename facilities after prominent individuals, and that any proposal to enter into any particular naming rights transaction pursuant to the new policy would be subject to Board approval. Mr. Albert asked what considerations would govern the ordering of sponsors' names and geographic points of reference in devising new station names. Mr. Rosen responded that maintaining the navigability of the system would always remain the MTA's first priority. Mr. Rosen noted that the naming of the Mets-Willets Point, 161 st StreetiYankee Stadium and Atlantic Av-BarcJays Center stations predated the naming policy. Mr. Page asked what the process had been for changing the name of Jay Street to Jay Street Metro Tech and noted that the process of pricing by assessed value may not include all costs. Mr. Ferrer also asked for additional information regarding the Jay St. Metro-Tech station and Mr. Fleuranges promised to reply directly to him. Mr. Brown asked what types of firms provide appraisals for naming rights. Mr. Rosen stated that there are firms that specialize in evaluating nanling rights for stadiums and purport to be qualified to value other naming rights opportunities as well.. The Committee voted to recommend the action items before the Board for approval. XIII. Executive Session Upon motion duly made and seconded, the Committee voted to convene an Executive Session pursuant to Section 105 (J) (h) of the Public Officers Law. Upon motion duly made and seconded, the Committee voted to return to open session. XIV. Adjournment Upon motion duly made and seconded, the July 22,2013 meeting of the Finance Committee was adjourned. Respectfully submitted, Lara C. Muldoon ~ ~.-.~

14 2013 Finance Committee Work Plan I. RECURRING AGENDA ITEMS BudgetWatch FinanceWatch Approval of Minutes Procurements (if any) Action Items (if any) MTA Consolidated Reports Responsibility MTA Div. MgmtlBudget MTA Finance Board SecretarY Procurement Agency MTA Div. MgmtlBudget II. SPECIFIC AGENDA ITEMS Responsibility September 2013 SBP/Budget/Capital: 2014 Preliminary Budgetl Finandal Plan (Materials previously distributed) Action Item: Resolution to authorize the Execution, Filing and Acceptance of Federal Funds Other: Annual Review of MTA's Derivative Portfolio Annual Report - Fuel Hedge Program MTA 2013 Semi~Annuallnvestment Report November 2013 SBP/Budget/Capital: Updated Forecast for 2013/2014 Final Propcsed Budgetl Finandal Plan (Joint Session with MTA Board) Other: Station Maintenance Billings Update Review and Assessment of the Finance Committee Charter December 2013 SBP/Budget/Capital: Action Items: MTA 2014 Budget and Finandal Plan Adoption Materials MTA and TBT A Reimbursement Resolutions for Federal Tax Purposes Approval of Supplemental Resolutions Authorizing Refunding Bonds Other: Draft 2014 Finance Committee Work Plan January 2014 SBP/BudgetlCapital: Overview of the February Financial Plan Other: Special Report: 2013 Year~End Review MTA Div. MgmtlBudget MTA Grant Mgmt MTA Finance MTA Div. MgmtlBudget and MT A Finance MTA Treasury MTA Div. MgmtlBudget MTA Comptroller MTA CFO MTA Div. MgmtlBudget MTA Treasury MTA Finance MTA Div. MgmtlBudget MTA Div. MgmtlBudget MTA Finance _... _ _ _._._.- --_.. _--_... _-_._._------_._ _._

15 March 2014 Action Items: 2013 TBTA Operating Surplus Mortgage Recording Tax - Escalation Payments to Dutchess, Orange and Rockland Counties All-Agency Real Property Disposition Guidelines and All-Agency Personal Property Disposition Guidelines All-Agency Annual Procurement Report Other: MTA Prompt Payment Annual Report 2013 April 2014 Action Item: MTA 2013 Annual Investment Report Other: Annual Report on Variable Rate Debt June 2014 SBP/BudgetlCapital: Action Item: PWEF Assessment Other: Station Maintenance Bilings Annual Pension Fund Report (Aud~ Committee Members to be invited) July 2014 SBP/Budget/Capital: Updated Forecast for 2014/2015 Preliminary Budgetl Financial Plan (Joint Session with MTA Board) Other: Annual FMT AC Meeting Annual FMT AC Investment Performance Report MTA Bridges and Tunnels MTA Treasury/MTA Div. MgmtlBudget MT A Real Estate/MTA Corporate Compliance MTA Procurement! Agencies MT A Business Service MTA Treasury MTA Finance MTA Capital Program Mgmtl MTA Div. Mgmt & Budget MTA Comptroller MTA Labor MTA Div. MgmtlBudget MTARIM MTA RIM DETAILS SEPTEMBER 2013 SBP/Budget/Capital: 2014 Preliminary Budgetl Financial Plan Public comment will be accepted on the 2014 Preliminary Budget Action Item: Resolution to Authorize the Execution, Filing and Acceptance of Federal Funds The MTA Office of Grant Management will hold a public hearing in accordance with federal law and then request the Board's approval of a resolution that would authcrize the Chairman or a designated officer to execute the applications and accept grants of financi.al assistance from the federal government

16 -----~ Other: Annual Review of MTA's Derivative Portfolio The Finance Department will provide an update on MTA's portfolio of derivative contracts. Annual Report - Fuel Hedge Program The Division of Management and Budget and the Finance Department will update the Committee on the MTA Fuel Hedge Program; which was established to provide greater budget certainty over one of the most volatile portions of the budget. Accessing established markets, the MT A reduces price volatility through the use of financial instruments that may include: swaps, caps, floors, collars, options, and future contracts, (collectively, "future fuel price agreements"). MTA 2013 Semi-Annual Investment Report The MTA Treasury Division should be prepared to answer questions on this report. NOVEMBER 2013 SBP/Budget/Capital: Updated Forecast of 2013/2014 Final Proposed Budget/ Finandal Plan (to be presented at the Joint Session with the MTA Board) The MTA Division of Management and Budget will present an updated forecast for 2013, a Final Proposed Budget for 2014, and an updated Financial Plan through Other: Station Maintenance Silings Update The MTA Comptroller Division will provide a report on the collection and audit status of station maintenanoo billings issued as of June 1, Review and Assessment of the Finance Committee Charter MTA Chief Financial Officer will present the most updated Finanoo Committee Charter to the Finance Committee members for them to review and assess its adequacy. The annual assessment is required under the current Committee Charter. DECEMBER 2013 SBP/Budget/Capital: Action Items: MTA 2014 Budget and Finandal Plan Adoption Materials The Committee will recommend action to the Board on the MT A 2014 Budget and the Finandal Plan Adoption Materials. Action Item: Approval of Supplemental Resolutions Authorizing Refunding Bonds Board action required to allow for the refunding to fixed-rate bonds from time to time provided that such refunding's comply with the Board approved refunding policy. MTA and TBTA Reimbursement Resolutions for Federal Tax Purposes Board approval is required to allow for the reimbursement of capital expendiures at a later date from the proceeds of tax-exempt bond sales

17 Other: Draft 2014 Finanre Committee Work Plan The MTA Chief Finandal Officer will present a proposed 2014 Finance Committee Work Plan that will address major issues, SBP and budget process issues, and reports required by statute. JANUARY 2014 SBP/Budget/Capital: Overview of the February Finandal Plan The MTA Division of Management and Budget will apprise the Committee of any material changes to the December Board-approved Financial Plan. The full release and distribution of the February Plan will continue to take place within the month of February. Other: Special Report: 2013 Year-End Review The MTA Finance Department will present a report that summarizes financing activities for MARCH 2014 Action Items: 2013 TBTA Operating Surplus MTA Bridges and Tunnels should be prepared to answer questions on a staff summary requesting (1) transfer of TBTA 2013 Operating Surplus and Investment Income, (2) advances of TBTA 2014 Operating Surplus, and (3) the deduction from 2014 TBTA Operating Revenue, funds which shall be paid into the Necessary Reconstruction Reserve. Mortgage Recording Tax - Escalation Payments to Dutchess, Orange and Rockland Counties By State statute, each of these counties is entitled to a share of MTA's MRT-2 tax receipts. The amount may be no less than they received in 1989 (even if the taxes collected fall below the 1989 levels), but there are proportional upward adjustments if taxes collected in the particular county exceed the 1989 totals. The MTA Budget and Treasury Division will be prepared to answer questions on the related Staff Summary authorizing the payments. All-Agency Real Property Disposition Guidelines and All-Agency Personal Property Disposition Guidelines Board approval of the above guidelines as required annually by Public Authorities Law Sections MTA Real Estate and MTA Corporate Compliance should be prepared to answer questions regarding these guidelines. AII~Agency Annual Procurement Report The Agencies and the MTA Procurement Division should be prepared to answer questions on this voluminous State-required report _....._..._....._--_._-_._---_._----_._--_._._

18 Other: MTA Prompt Payment Annual Report 2013 The Senior Director of the MT A Business Service Center should be prepared to discuss a report, to be included in the Agenda materials, that reviews MTA-wide success in meeting mandated promptpayment deadlines (including the interest penalties incurred as a result of late payment). APRIL 2013 Action Item: MTA Annual Investment Report The MTA Treasury Division should be prepared to answer questions on this voluminous State-required report. Other: Annual Report on Variable Rate Debt The MTA Finance Department will present a report that summarizes the performance of the MTA's various variable-rate debt programs, including a discussion of the savings (compared to long-term rates) achieved through variable rate debt and a discussion on the current policy and limits on the use of variable rate debt. JUNE 2013 SBP/Budget/Capital: Action Item: PWEF Assessment The MTA Division of Management and Budget assisted by MTA Capital Program Management, should prepare the usual annual staff summary authorizing the payment of this assessment to the State. The State levies an assessment of the value of construction-contract awards to cover its cost of enforcing prevailing-wage legislation. Other: Station Maintenance Billings Under the Public Authorities Law, the Board is required to certify to the City and the counties in the Metropolitan Transportation District the total costs to MT A for operating and maintaining Commuter Railroad passenger stations. The City and county assessments are both now determined through a formula. Annual Pension Fund Report The MTA Labor Division, representatives of the various pension fund boards, and their pension consultants should be prepared to answer questions on a report, to be included in the Agenda materials, that reviews the 2013 investment performance and other experience of the various MTA pension funds. Among other matters, this report should (i) make recommendations on appropriate investment-earnings assumptions in light of the experience of the past three years; (ii) discuss the implications for asset allocations in light of such recommendations; (iii) discuss the effect on (under) funding of the systems in light of such performance and recommendation; (iv) provide appropriate comparisons with other public pension systems; and (v) solicit the opinions of the Board Operating Committees on these recommendations in light of their effects on Agency budgets _.._..._

19 JULY 2014 SBP/Budget/Capital: Updated Forecast of 2014/2015 Preliminary Budgetl Financial Plan (to be presented at the Joint Session with the MTA Board) The MTA Division of Management and Budget will present an updated forecast for 2014, a Preliminary Budget for 2015, and an updated Financial Plan through Other: Annual Meeting of the First Mutual Transportation Assurance Company The MTA's Captive Insurance Company will hold its statutorily required annual meeting in which it will review the prior year's operations as well as submit its financial statements and actuarial report for final approval. Annual First Mutual Transportation Assurance Company Investment Performance Report The MTA Treasury and Risk Management Divisions, along with the FMTAC's outside investment managers, should be prepared to answer questions on a report that reviews outside-managers performance _

20 ~---~.~--~ _.._._....._ FinanceWatch September 16, ,420,266 Diesel Fuel Hedge On August 9, 2013, MTA executed an $18,420,266 Ultra-low sulfur diesel fuel hedge with J.P. Morgan Ventures at an all-in price of $2.826/gallon. Three of MTA's existing approved commodity counterparties participated in bidding on the transaction: Deutsche Bank, Goldman, Sachs & Co.lJ Aron and J.P. Morgan Ventures Energy Corporation. The hedge covers the period from June 2014 through July Remarketing i197,415,ooo MTA Dedicated Tax Fund Refunding Bonds, Series 2008B1 and On August 13, 2013, MTA effected a mandatory tender and remarketed through competitive bidding $ of Dedicated Tax Fund Refunding Bonds, Series 2008B-1 and $100,000,000 of Dedicated Tax Fund Refunding. Bonds, Series , because the letter of credit (loc) Issued by Bank of Nova Scotia that related to Series expired by its terms and the LOC issued by KBC Bank NV. that related to Series 2008B-4 was terminated. The Series and Series bonds were converted from a weekly-rate mode to a fixed-rate mode with final maturities of November 15, 2034 and November 15,2025, respectively. The winning bid for these Series of bonds was submitted by Citigroup Global Markets Inc. with a TIC of % (all-in TIC of 3.51%). The transaction closed on August 13, Hawkins Delafield & Wood served as bond counsel, and Lamont Financial Services was financial advisor. ParAmount: Net Premium: All-in TIC: Average Life: Average Coupon: Final Maturity: Underwriter's Discount: Cost of Issuance; Ratings (S&PIFitch) Senior Manager: Transaction Summary Statistics OTF 2008B~1 and $ million $ million 3.51% years 4.82% $3.53 ($697,725) $0.97 ($191,242) AAlAA Citigroup Global Markets IV-1

21 Transportation Revenue Commercial PaRsr MTA negotiated extension agreements with the three existing letter of credit (LOC) providers in connection with the existing approved Transportation Revenue Bond Anticipation Notes (BAN), Series CP-2 Credit Enhanced commercial paper program. The Subsaries designation, LOC providers and amounts are as follows: Subseries A, TO Bank, N.A. for $100 million; Subseries B, Barclays Bank PLC, for $250 million; and Subseries 0, Citibank, N.A. for $200 million. The original Subserias C Notes of $350 million were associated with a LOC from Royal Bank of Canada, which LOC was not renewed and the notes were paid off with the proceeds of the Transportation Revenue Bonds, Series issued on July 2. The BAN was authorized by the Board in July, 2010 for a maximum period of five years from the date of original issue, which was September 16, The extension renewals will allow the commercial paper program to continue to pperate until the end of the five year BAN period on September 16, The dealers for the Notes are as follows: Subseries A, Morgan Stanley; Subseries B, Barclays Capital; Subseries D, Citi. Upcoming Transactions New Monev $500,000,000 MTA Transportation Revenue Bonds, Series 2Gi3E In September 2013 MTA expects to jssue $500 million of MTA Transportation Revenue Bonds, Series 2013E, to finance existing approved transit and commuter projects. Hawkins Delafield and Wood will serve as bond counsel and Lamont Financial will serve as financial advisor. Remarketing 1200,000,000 Transportation Revenue Bonds. Series 2002G-1 In September 2013 MTA will effect a mandatory tender and remarket $200 million of Transportation Revenue Bonds, Series 2002G-1 into the term mode as Floating Rate Notes, because the letter of credit issued by Sank of Nova Scotia that relates to Series 2002G-1 expires by its terms on October 7, Hawkins Delafield and Wood will serve as bond counsel and Lamont Financial will serve as financial advisor. IV-2

22 ... _. -,, ! Dedicated Tax Fund: NYC Transit Commuter Railroads Dedicated Tax Fund Subtotal MT A Transportation Revenue: NYC Transit Commuter Railroads MTABus MTA Transportation Subtotal Commercial Paper: NYC TransIt Commuter Railroads MTABus Commercial Paper Subtotal METROPOLITAN TRANSPORTATION AUTHORITY JULY FINANCIAL PLAN MIO-YEAR FORECAST (i. DEBT SERVICE ($ in millions) July 2013 % MIDYEAR Forecast Actual Variance Variance $ $38.9 $$ $110.8 $ $3.0 $31.3 $ (o.m $38.1 $0.8 $67,4 $0.1 $41.8 (0.3) $2.7 (0.9) $111.9 ($1.0) $0.0 $1.8 $ $ $0.1 $ % ~O.9% 2 Broadway COPs: NYC Transit $1.1 $1.1 $0.0 Bridges & Tunnels 0.2 $ MTAHQ 0.2 $ Broadway COPs Subtotal $1.5 $1.4 $ % Explanation Lower than budgeted rates. 96.2% 1 J Lower than budgeted variable rates; TST A General Resolution (2) NYC Transit $14.9 $14.0 $0.9 reversal of prior tlming related Commuter Railroads 7.0 $6,3 0.7 to BAB subsidy, Bridges & Tunnels 18.0 $11.6 6,4 TBTA General Resolution Subtotal $39.8 $31.8 $ % TBT A Subordinate (2) NYC Transit $6.0 $4.9 $1.0 I Commuter Railroads 2.6 $ Lower than budgeted variable raies. 1 Bridges & Tunnels 2.4 $ TBTA Subordinate Subtotal $11.0 $9.1 $ % $205.0 I $12,71 j l! l Debt Service by Agency: 1 NYC Transit $123.5 $118.8 $4.7 Commuter Railroads 59, MTABus 1,8 2.7 (0.9) Bridges & Tunnels MTAHQ Total Debt Service $205.0 $192.3 $ % ~ (1) Forecasted debt service is calculated based upon projected monthly deposits from avallable pledged revenues Into debt service accounts. Actual payments to bondholders are made from the debl service accounts when due as required for each series of bonds and do not conform 10 this schedule. (2) Generally, the calendarlzation of monthly debt service deposils is calculated by dividing projected annual debt service by 12. Month to month variations ("timing differences') on thjl existing debt portfolio can occur based upon, among other things, (a) for all bonds. the date when Income from the secunties In which the debt service accounts are Invested becomes available varies. (b) for variable rate financings, differences between (i) Ihe oudgeled Interest rate and the actual interest rate, (il) projected interest payment dales to bondholders and actual interest payment dates 10 bondholders. and (iii) projected monthly funding dales for accrued debt service and actual funding dates, (c) for transactions w'l!h swaps the difference between when MTAlTBTA funds debt service and the receipt of Ihe corresponding swap payment by Ihe counterparty, and difference between rates received and rates paid and (tl) for commercial paper, the interest payment date is the dale of the maturity of Iha commercial paper and the dealers set the term of tha commercial paper from 1 to 270 days, which is nol foreseeable at Ihe time the annual debt service budgets are orepareo (3) Debl service is allocated among Transi!. Commuter, MTA Bus, and TSTA categones based on actual spending of bond proceeds for approveo capital projects, Allocation of 2 Broadway COPs is based on occupancy. Totals may not add due to rounding. f I I IV-3

23 _.. _--"--' Dedicated Tax Fund: NYC Transit Commuter Railroads Dedicated Tax Fund Subtotal MTA Transportation Revenue: NYC Transit Commuter Railroads MTABus MTA Transportation Subtotal Commercial Paper: NYC Transit Commuter Rallroads MTABus Commercial Paper Subtotal 2 Broadway COPs: NYC Transit Bridges & Tunnels f-- MTA HQ 2 Broadway COPs Subtotal METROPOLITAN TRANSPORTATION AUTHORITY JULY FINANCIAL PLAN. MiO-YEAR FORECAST (1) OEaT SERVICE ($ In millions) July 2013 Year-ta-Oate % MID-YEAR Forecast Actual Variance Variance $192.6 $191.3 $ $41.3 (0.2) $233.8 $232.6 $ % $428.9 $425.4 $ $ $16.8 (1.6) $708.5 $708.1 $ % $4.0 $0.5 $ $ $ $6.6 $0.8 $ % $6.7 $6.7 $ $ $ $8.6 $8.6 $ % Explanation Lower than budgeted rates, TBTA General Resolution (2) NYC Transit $110.2 $111.5 ($1.4) Commuter Railroads 50.0 $ Lower than budgeted variable rates, I Bridges & Tunnels 98.3 $ TBTA General Resolution Subtotal $258.4 $253.7 $ % TBT A Subordinate (2) NYC Transit $41.4 $40.4 $1.0 Commuter Railroads 18.2 $ Bridges & Tunnels 16.3 $ TBTA Subordinate Sublotal $75.9 $74.1 $ % :: $1, $1, $14.0 I 1.1%,1 : : Debt Service by Agency: NYC Transit $781.7 $775.8 $6.0 Commuter Railroads MTABus (1.6) Bridges & Tunnels S.4 MTAHQ ITota! Debt Service $1,291.9 $1,271.9 $ % Lower than budgeted.. ria". noos.1 NQtes: (1) Forecasted debt service is calculated based upon projected monthly deposits from available pledged revenues into debt service accounts, Actual payments to bondholders are made from the debt service accounts when due as required for each series of bonds and do not conform to this schedule, (2) Generally, the calendarizatlon of monthly debt service deposils Is calculated by dividing projected annual debt servlce by 12. Month to month vanations ("timing differences") on the existing debt portfolio can occur based upon, among other things. (a) for all bonds, the date when income from the securilles in which the debt service accounts are invested becomes available vanes, (b) for variable fate financlngs, differences between (I) the buogeled inlerest rate and the aclual interest rate, (ii) projected interest payment dates to bondholders and actual interest payment dales \0 oondholders. and (iii) projected monthly funding dates for accrued debt service and actual funding dates, (c} for transactions with swaps, the difference between when MT NTaT A funds debt service and the receipt cf the corresponding swap payment by the coljolerparty. and difference between rates' received and rates paid and (d) for commercial paper. the interest payment date is the date of the maturity of the commercial paper and the dealers set the term of Ihe commercial paper from days. which is not foreseeable at the time the annual debt service budgets are prepared (3) Debl service is allocated among Transit Commuter, MTA Bus, and TelA categories based on actual spending of bond proceeos for approved capital projects, Allocation of 2 Broadway COPs is based on occupancy, Totals may not acid due to rounding. IV-4 i, l I I! I! I

24 ..._..._.._-_.._----_._ METROPOl.lTAN TRANSPORTATION AUTHORITY VARIABLE RATE: WEEKLY MODE RATE RESETS REPORT {Trailing a.weoksl iryuspor!allpn R V!lull Bonds TSS2002G-1 Spril1ldto B.!.!! ~ O,Oli%.(l.01% 0.04% / %.0.01% 8114/2013 O.OS% 0.00% % C.02% 8/28J % 0.02% Bn! 0,06% 0.04% 0.04% 0.06% 0.05% 0.05% Spraed to Spread to Spread to SlfNA Em SfEMA Em!f'!M.(l,Ot% 0.060/. (1,00% 0,07% 0.010/ % 0.08% 0.01% 0.06% 0.01%.0.01% 0,06% 0.01% 0.1l6% 0.01% 0.00% 0.07% 0.01% 0.08% 0.02% /. 0.01% 0.01% 0.08% 0.02% 0.01% 0.07% 0.01% 0.07% 0,01% Bl!!!! 0.01l% 0.04% 0,04% 0.Q6% 0.05% 0.05% Spnlad to ~ -0.01')' %..0.01% 0.00%..0.01%.0.01% 01!dl atgg Tal\l'u!ld Bond!! OTE B!!! 0.04% 0.04% 0.04% O.G4% 0.06% 0.06% G.OO"!. G.OO;' TSTA Genera! Revenue Bonds Ollte 7124/2013 7/ / / TBTA SofA Merrill 1. nch SofA SBPA 194.BO B!!2 0.09% 0.08% 0,08% 0.10% 0,09% 0.09% Spreaa to ~ IM3% 0.03% 0.03% 0.04% 0.03% 0.03%.mIll!i Il,cal R!lv~mye and Subordinate Reyenye Bgnd! None pread to i!f.ma 0,02*.4-0,01% 0,01"1...c.01%.0.01%..0,02*.4 None Spraad to &.Ii SIFMA 0.04% -0.02% 0.04%.0.0\% 0.04%.0.01% 0,05%.0.01% 0.05% 0.01% ~ (1.02% TSTA 200SA3 useancor U.S. Bank l.oc 3U}1 None None None prtad to presd to Spread!o Bn! ~ &.Ii SIFMA &.Ii R!!J!..!f1M 0.04%.0.02% 0.04%.0.02*/ 0.04% 0.04%.0.02% 0.04%.0.01% 0.04%.0.01% 0.04% 0.04% -O.OW. 0.04%.0.01% 0.04%.o.OH', 0.04% 0.04% -0.01"1 0.05% -O.OW. 0,05%..c.Oi% 0.06% O.OW (l.00% 0.05%.().O1% 0.05%.0.01% 0.05% 0.05%.0.01% 0.04% -0.02% 0.04%.0.02% 0.05% 0.05%..0.01% Bi!!!l 0.30% 0.30% 0.30% 0.30% 0,30% 0.30% Report Data 9/1/2013 None Spntadto E!!! ~ 0.28% 0.22% 0.30% 0.25% 0.30% 0.25% 0.30% 0.24% 0.30% 0.24% 0.30% 0.24% IV-5

25 METROPOLITAN TRANSPORTATION AUTHORITY VARIABLE RATE: floating RATE NOTES RATE RESETS REPORT tti'ailing 6-Weeks} Tryilnspormtjon Revgnue Bonds Issue TRB 2UIJ2U--': I Hts 2012A-2 TRB 201ZA-3 Remarketing AJaent Wells Fargo BoNY Mellon BoNY MeUon Initial Purchase Date Note 1 05/15/ Liquidityllnsurer CCAIAssured None None Par outstanding ($m U ou Swap Notional ($m) lou.ou None. None Spread Spread Spread Date SIFMA ~ate tosifma Bi!m tosifma Rate to SIFMA 7J24/ % 0.96% 0.90% 0.25"/0 0.19% 0.45% 0.39% 7/ % 0.95%. 0.90% 0.24% 0.19% 0.44% 0.39% % 0.95% 0.90% 0.24% 0.19% 0.44% 0.39% 8/14/ % 0.95% 0.89% 0.25% 0.19% 0.45% 0.39% 8/21/ % 0.95% 0.89% 0.25% 0.19% 0.45% 0.39% 8/28/ % 0.95% 0.89% 0.25% 0.19% 0.45% 0.39% Issue TRB 2012G1 TRB 2012G2 TRB 2012G-3 Ramarketing Agent JP Morgan JP Morgan JP Morgan Initial Purchase Date 11/1i /1/ /1/2016 Liquidityllnsurer None None None Par Outstanding (Sm) Swap Notional ($m) Spread Spread Spread Date SIFMA Rate tosifma B.!!! tosifma B!!! to SIFMA 7/24/ % 0.55% 0.49% 0.56% 0.60" % 0.77% 7/ % 0.55% 0.50% 0.66% 0.61% 0.83% 0.78% % 0.55% 0.50% 0.66% 0.61% 0.83% 0.78% 8/14/ % 0.55% 0.49" % 0.60% 0.83% 0.77% 8/21/ % 0.55" % 0.68% 0.60 / % 0.77% 8/ % 0.55% 0.49% 0.66" " % 0.77% Dedicated Tax Fund Bonds TRS 2012G-4 JP Morgan 11/1/2017 None Spread.B!1!. tosifma 0.97% 0.91% 0.97% 0.92% 0.97% 0.92% 0.97% 0.91% 0.97% 0.91% 0.97% 0.91% Spread Spread Spread L...-.,Date SIFMA Rate tosifma Rate to SIFMA Rate tosifma 7/24/ % 0.81% 0.75% 0.96% 0.90% 1.01% 0.95% 7/31/ % 0.80% 0,75% 0.95% 0.90% 1.00% 0.95% % 0.80% 0.75% 0.95% 0.90% 1.00% 0.95% 8114/ % 0.81% 0.15% 0.96% 0.90% 1.01% 0.95% 8/21/ % 0.81% 0.75% 0.96% 0.90% 1.01% 0.95% 8/28/ % 0.81% 0.75% 0.96% 0.90% 1.01% 0.95% Spread Rate tosifma 1.06% 1.00% 1.05% 1.00% 1.05% 1.00% 1.06% 1.00% 1.06% 1.00% 1.06% 1.00% IV-6

26 L Spread Spread Date Rate Bill! tosifma ~ tqsifma 7124/ % 0.23% 0.61% 0.55% 0.14% 0.68% 7/31/ % 0.28% 0.23% 0.60% 0.55% 0.73% 0.68% Sn! % 0.28% 0,23% 0.60% 0.55% 0.13% OA1S% 8/14/ % 0.29% 0.23% 0.61% 0.55% 0.74% 0.68% 8/ % 0.29% 0.23% 0.61% 0.55% 0.74% 0.68% S/28/ % 0.29% 0.23% 0.61% 0.55% 0.74% 0.68% 1BT A General Revenue Bonds Spread Spread Date Rat!! Rate Rate Rate tosifma Rate to IFMA 7/24/ % 0.32% 0.22% 0.16% 0.50% 0.72% 1).66% 0.78% 0.46% 7/31/ % 0.38% 0.33% 0.22% 0.17% 0.50% 0.45'% 0.72% 0.67% 0.78% 0.45% 8/7/ % 0.38% 0.33% 0.22% 0.17% 0.50% 0.45% 0.72% 0.67% 0.78% 0.45% 8/14f % 0.38% 0.32% 0.22% 0.16% 0.50% 0.44% 0.72% 0.66% 0.78% 0.46% 8/21/ % 0.38% 0.32% 0.22% 0.16% 0.50% 0.44% 0.72% 0.66% 0.78% 0.46'% 8128/ % 0.38% 0.32% 0.22% 0.16% 0.50% 0.44% 0.72% 0.66% 0.18% 0.46% 1The TRS 2002D2 Sonds are privately placed with Wells Fargo through 5/27/2014. Report Date 9/ IV-7

27 METROPOliTAN TRANSPORTATION AUTHORITY VARIABLE RATE: DAILY MODE RATE RESETS REPORT (Trailing 10 Days) Transportation Revenue Bonds Issue Dealer Liquidity Provider Type of l.iquidlty Par Outstanding I$m) Swap Notional ($m) Date I SIFMA 8122/ % 8/23/ % 8/24/ % 8/25' % 8/ % % 8/28/ % 8/29/ % 8/30/ % 8' % TRS TRB 2005E3 Mor.stan Stanlev PNC Capital Helaba PNC LoC LoC Spread to Spread to Be!!!.EMA.Rate SIFMA 0.06% 0.00% 0.04% -0.02% 0.07% 0.01% 0.06% 0.00% 0.07% 0.01% 0.06% 0.00% 0.07% 0.01% 0.06% 0.00% 0.07% 0.01% 0.06% 0.00% 0.07% 0.01% 0.06% 0.00% 0.06% 0.00% 0.06% 0,00% 0.06% 0.00% 0.0&% 0.00% 0.06% 0.00% 0.04% -0.02% 0.06% 0.00% 0.04% -0.02% rbta General Revenue Bonds Issue Dealer Liquidity Provider Type of Liquidity. Par Outstanding ism) Swa!! Notional ($m) I. SIFMA Date 8/ % 8/23/ % 8/24/ % 8/25/ % 8/26/ % 8/27/ % 8/28/ % 8129/ % 8/30/ % 8131/ % TBTA 2002F TaT A 2003B-3 TSTA 200SA1 JP Morgan US Bancorp US Bancorp HeJaba US. Bank CAI..PERS LoC LoC loc None 24,86 Spread to Spread to Spread to Bate SIFMA B!l!!!fMA Rate!fMA 0.10% 0.04% 0.04% -0.02% 0.04%. 0.02% 0.11% 0.05% 0.06%,0.00% 0.07% 0.01% 0.11% 0.05% 0.06% 0.00% 0.07% 0.01% 0.11% 0.05% 0.06% 0.00% 0.07% 0.01% 0.10% 0.04% 0.06% 0.00% 0.06% 0.00% 0.10% 0.04% 0.06% 0.00% 0.07% 0.01% 0.10% 0.04% 0.06% 0.00% 0.06% 0.00% 0.09% 0.03% 0.05% -0.01% 0.06% 0.00% 0.08% 0.02% 0.05% 0.01% 0.05% 0.01% 0.08% 0.02% 0.05% -0.01% 0.05%.0.01% TaTA 2005B28 JP Morgan CALPERS LoC Spread to full! 1E!M 0.07% 0.01% 0.08% 0.02% 0.08% 0.02% 0.08% 0.02% 0.08% 0.02% 0.08% 0.02% 0.08% 0.02% 0.07% 0.01% 0.06% 0.00% 0.06% 0,00% '--. Issue Dealer Liquidity Provider Type of I..lquldi~y Par Outstanding ism) Swap Notional ($m) J Date SIFMA 8/22/ % 8/23/ % 8/ M6% 8125/2013 0,06% S/2S/ % 8127/ % 8128/ % 8/29/ % 8/30/ % 8/31/2013 (los% TBTA 2005B2b TSTA 2005B-2c JP Morgan US Sancorp CALPERS US. Bank l.oc LoC , Spread to Spread to Rate SIFMA Rate SIFMA 0.07% 0.01% 0.04% -0.02% 0.08% 0.02% 0.06% 0.00% 0.08% 0.02% 0.06% 0.00% 0.08% 0.02% 0.06% 0,00% 0.08% 0.02% 0.06% 0.00% 0.08% 0.02% 0.06% 0.00% 0.08% 0.02% 0.06% 0.00% 0.07% 0.01% 0.05% -0.01% 0.06% 0.00% 0.05% 0.01% 0.06% 0.00% 0.05% 0.01% Rep,ort Date 9/1/2013 IVS... _.. _---_._... _--_.

28 _-_... _._ METROPOLITAN TRANSPORTATION AUTHORITY VARIABLE RATE REPORT: AUCTION RA TE WEEKLY AUCTIONS ] LiBOR Formula Fail Rate LIBOR Formula Fail Rate COPs COPs COPs Issue TRB A1 2004A~2 2004A3 Outstanding Par ($ l1li) Swap Notional ($m) None Final Maturity 1111/ / /2'030 1/1/2030 Sroker Dealer(s) JP Morgan JP Morgan JPMorgan JP Morgan Merrill Lynch Merrill Lynch Merrill Lynch Insurer Assured Ambac Ambac Ambac Auction Frequency Tuesday Monday Tuesday Wednesday ~uly 15 thru July 19, % 0.528% 0.524% 0.527% July 22 thru July 26, % 0.524% 0.523% 0.521% July 29 thru Aug 2, % 0.513% 0.515% 0.514% Aug 5 tf?fu Aug, 9, % 0.512% 0.509% 0.509% Aug 12 thru Aug 16, % 0.508% 0.506% 0.506%. Aug 19 thru Aug 23, % 0.505% 0.503% 0.504% Aug 26 thru Aug 30, % 0.506% 0.502% 0.501% Corresponding Ubor Rate 0.183% 0.184% 0.183% 0.182% Fall Rate 200% 275% 275% 275% 28 & 35 DAY AUCTIONS LIBOR Formula Fail Rate COPs COPs Issue TRB2002B A A-5 Outstanding Par ($ M) Swap Notional ($m) None Final Maturity 11/ / Broker Oealer(s) JP Morgan Merrill Lynch JP Morgan JP Morgan Insurer Assured Ambac Ambac Auction Frequency 28-Days 35-Days 35-Days April % 0.551% 0.549% May % 0.548% 0.541% June % 0.529% 0.531% July % 0.527% 0.513% August % 0.506% 0.501% Corresponding tibor Rate 0.185% 0.184% 0.182% Fail Rate 200% 275% 275% Report Date 9/1/2013 IV-9

29 MT:\ DEnT OLJTSTA'NlHNG ($ In Millions) Underlying Ratings I Momlv's IS&I' f!>lltht Kfi.lI) MTA TrlUl&portntiol1 Revenue Bonds (AlIMA) TJH'A Gencral ReVcll lie llonds (A~3/AA.fAA.f AA) Series 2002A ::W E A A e 200SO 200SE :WOSF 2005G 200M A. 2OO?S 200M 2008B 200Se 2009A 201M C en Or;. lolla 201m 201lC A t2C !2E 2012F 201:.!G 20llH 20llA 2013ll 2013C 2013D FC 199M 200m looic ::wo:m 20021' 2003B :loosa 200Sl~ 200M 2007A 2008A zooal:! 2008(' 2009A 20()9B m>asale J)a!~ 519/ /0:2 5/ l2IQ2 tlf19/02 Sl8/03 7/ /9/ /0S 10119/05 Il/lIQ5 t lili05 11/!61OS 12nlO5 7113/06 12/ /07 12I6IQ l 211:lIQS 10/17/08 10/6/09 lio/h) / / /23/10 12/21/ / / /30/ / /12 7/13/ / ! If17/20t3 :l/ / / /01 l2/1iliqi 9119/02 ) 1/8/ /10/05 7/6/05 6/8ro6 6/13/ / / \1/09 9/10/09 PrlnclllDl Iss. Fixed Finalllflllurltv Amount Amount 11115/ $ 165:ns! 1/ Hl,500 lllu20n ,725 11/15[2(3) 391A Ililf ,) JlIlSI , I15/J AlO 11/15/2035 1S ' If iso.ooo llili ) IlflS120.l!l / JlIS ,845 1 III , / :l0 446,680 t S JI<)S ttl I IlIIS I1S / J 1115/ \/ III I S IlflS / (}'oOO lI1S , , / / , , :lso.odo 11/ SOO.OOO IIIISrl / / Total 24, /)/ \5/2032 2, UI120) l1ll203S ISO.Ooo.. 11) , oo S 11/ ,230 III! : lI1S ()OOO 200,000 lu or 9tlOU Outstanding Synthetic Varinble Fixed TOIllI Amount Amount Oul.undillg tic' Notes ,: LS7 (:') UOO mO UO 59, S & , (3) (3) (3) , (4) , (3) 396,$ :) , ) ,263, , A SOO.OOO SOO , U , I 4.t7 I I WAT1C I (5) 130, $ , \ ),54 80,065 4.n () ) J6J (3) IV-10

30 i!i!ta D.E3T OUTSTANDING ($ in Millions) 'Type of Credit Umltlrlying Jtnlings Il\lOfJ(jv', IS&!' / Fitchl Kroll} TBiA Subllrdinate Revt'lwc Iloads (/\ I/A+/!\+/,\,\.) ltrr A DcdlcMrd Tn /lulul BOIld! (AMM) 1\11' A Certil1clltes llf l'artieipathlll (2 Uroadwfty) (Can2J(;C!NR} Slnle Scrl'ice ('onlme! Hands (AAfAA) Series 201M :20111\ 2012A U 2013C 2000A CD 2002E 2003A 2(J08D 20l)A A C 200M loo6s 200M 2008B :1009A 2009D 200ge 20 loa lolla lol2a 2004A 2002/\ ili'asnlll Dllte 10/20/10 10/ /12 1/ /18/ /01/ / / /4102 2/26/04 3/9/ /25/ /08 3/1:!!O9 4123/09 4/23/ /! / /04 6/5/02 6/26/02 PrindilUI Iss. fixed Finnl Maturitv Amount AnlOllhl I!!ISno / (1): If!5l L () ) &9'8 1,353.Q55 ljilsf llflsl Tollti 9, , / / / ) llii /15/ $ TOlal 3, IIflJ IJ!lS ! IlIJ /lSiW / %.445 1II l111no II I Sl lI15l2021 I 21,4S lliis/lol Total S,971l.S65 4, Total AIlMTATotnl 43, , :m.67() 7/ Total 2,395.; OUlStundill!1 As of Synthetic Variable.'iuti ToM Amollnt Amount Outstanding TIC I l.m n ! I WATIC 1 llj S(l S I 4.18!! WATIC I l J > ) lls'! , , I WATIC I t WATIC I 2, , S:iS l S.ll WATIC :'<IolCs (I) Fixed RalC TICs calculated us or issullllce of Fixed Rate Bonds Floating Rate TICs calculated from inception through including fees. Any Unhedged Varianle Rate Bonds thai hnve been fixed to maturity are carried at the new Fixed Rllte TIC. Synthetic Fixcd Rllte TICs include average swap niles plus variable rate lees and estimated basis adjulltmenls for life of swap. Synthetic Fixed Rate TICs do not include benclit of tiny upfrolll payments received by MT A. (2) Variable Rate llolld~ inititilly Issued in Auction Rate Mode, (3) Fi..~cd rule In.ll1ds, all or pan of which, were issued as federally mxllb!e Build America Bonds (BABs). (4) VarlHb!(~ Rat\: BANs issued a~ Commercial Papor. Maturities range from 1 to 270 days. (5) Subsidized loatl plovidcd through lhe NYS Water Pollution Control Revolving Fund for certain prttiecls designed to remedy sources of groundw!lt~'l' :-.rf A sites. (tj) PrinCIpal t~s\led Amount reilccts Capillil Appn:cilion Bonds (CABs) at tho par amount at the time of Issllllnce. The Current Amount Outstanding retleets the CABs alll1cir maturity Vllluc, current value is less than the pur amount at the time of issuance. Notcs (3) (6) (6) m (3) (6) (1) IV-11

31 ITHIS PAGE INTENTIONALLY LEFT BLANK I IV-12

32 Staff Summary Subject Soard Authorization to File for and Accs t Federal Grants Department Head Name eral Stewart Project Manager Name 1 l Marc Albrecht Metropolitan Transportation A.uthority Page 1 of 1 Dam September 18, 2013 Vendor Name Contract Number Contract Manager Name Table of Contents Ref it I Order To 1 Finance 2 Board Soard Action- Date ADD Info Other 9/16/2013 x 09118/2013 x Internal Approvals Order A roval Order Capital Programs 2 Corporate Affairs a CFO 4 Legal 5 Chief of Staff Narrative Purpose To secure MTA Board approval to file for and accept Federal grants for Federal Fiscal Year (FFY) 2013 and ) Authorize filing of applications in request of Federal capital assistance for the balance of FFY 2013 and FFY ) Authorize the Chairman/Chief Executive Officer or any of his designees to make required certifications. 3} Authorize acceptance of grants. Projects authorized to be submitted for Federal funding are those referenced In the published Notice of Public Hearing and described in the MTA Description of Projects for FFY A copy of the resolution requesting MTA Board approval and the list of the projects are attached to this staff summary. A Public Hearing invitlng public comment on the projects proposed to be submitted for federal funding was held in accordance with FTA regulations on June 18, 2013 at the MTA, at which the Dep\.lty Director of Grant Management read into the record the I amounts of Federal funds and dollar amounts of work covered by the Notice. A transcript of the hearing and written statements submitted In conjunction with the hearing are attached under separate cover. Eight members of the public spoke at the public hearing. There were comments from speakers about the recenny announced service changes and some comments about the proposed capital projects. In accordance with applicable federal requirements, MTA and agency staff have reviewed and considered all substantive public comments concerning the proposed program of capital projects for federal funding. RecommendatJon it is recommended that the MTA Board approve the attached resolution in order to permit the filing and acceptance of Federal capital assistance tor FFY 2013 and L ~ '

33 .,~..... _ Proposed Program of Projects Federal fiscal Year 2014 ACEI' ID/ Agency PIN Program/Project Description LONG ISLAND RAilROAD Stations l60204uc l60204ud l60204ue L60204UH L6020SUl Track L60301TE ". L6030lTF L60304TU l60304tx Line Structures EL0402ZA EL0402ZB Warlt~gh Station ~latforl'!1 Replacement '.. ~" Esca I.~~or Replacem~ntPro$ram.... East?ide A~ces~ {E~3J\)! Tand CE!ntralTerminal (GCT) Support..... Eleya~or Replacement Program Wyandanch Parking Facility..' Annual Track. Pr~gram Construction E.quipment. Jam.aica Capa~ity Imp'ro"e.I1l~nts ~Phase I Second Trac~F~rmjn~d~le to Ronko.nkoma ~ Phase I East River Tunnels Line Structures Communications and Signals ELOS 02ZC lonf5beach Branch System... L60S02LA Positive Train~ontrol (PTe) Shops and Yards R060lZD l506xxuf l60601yb l60604yt Power EL0702ZE LG0701AQ lg0701ar Western Rail Yards " Mets/Willets Pt. Station RE!n()vation Hillside Fadli~vRoof Re l1 ewal Employee Facilities Renewal Substation Replacement Port Washington Substation Replacement Richmond Hill. Substation Replacement Miscellaneous EL0902ZF l60904na Infrastructure System Upgrade Program Administration V-2

34 ~, METRO-NORTH RAILROAD Rollin,,~tock EMOI0201 Stations M M M M MS Track and Structures,.'"''''''''.",.,.,,-.. EM M M M M6030l04 M M ' Rolling Stock Rf:storatiof.l..GCTTr~in She~ITunnel Struct,ure GCT Elevator Renewal GeT Utilities "".,, Harlem Line Stations Improvements -:-p,hase I Custo~er Commuf.licatlon/Connectiv:ity Impr Right-of-Way.Restora.tion Overhf!ad. Brid~r:... ~r.o~r.~m -:E~s~of.ttudson.Turnouts: Mainlin~/l1i$h Speed. GCT TlJrnou~s/S'-Vjtch.~ene\'V~I... Turnout Yards and Sidings Cy~ncal T~a~k.p'r9sram... Employ~e W~Jfare.(3l1dStorage Facility Commur#catlofl and Signals EM C&S Infrastructure M Positive Train Control - East of Hudson Power EMOS0206 M M Shops and Yards M Miscellaneous EMOS020l M60S0106. Power Infrastructure,,_.,,,, Harlem&li.udso~.lines P~wer Improveme l1 ts Replace. Mo~or Ai~ernators.. Harmon Shop Replacement. HaverstrawFerry Terminal Program Admi l1 istr,ation MTABUS Facilities EU U U /226 Far Rockaway Recovery. Depot Equipment Bus Radio System & Command Center - MTABC V-3

35 ... _... _.. _._----_._._.. _..... _-_._ CAPITAL CONSTRUCTION COMPANY Miscellaneous EG Integrated ~Iec~ronic Securi!y System NEW YORK CITV TRANSIT Staten Island Railway.... ES Staten Island RailwayStorm Dam~~e.Restoration. S Modernize In~erlocking: St. G(3or~.~ Inter.iocking! Ph 1 Staten Is!and New P<?wer Substa!ion: Prince's Bay Su~wayCars T Buses T T T Stations ET ET T T T T T T T ' T T Track T T T ". Purchase 300 B-Division Railcars Pl.lrchase2.85~xpres.s~uses. Purchase 156 Articulated Buses < 'p' "~>,..,,-.,,- Purchase 222 Paratranslt Vehicles South Ferry/Wh.iteh~1I Storm Damage Restorat!on Major Station.storm Damage Restoration. 10 ~ydraulic Elevator? ~. Le)(in~on Av~ Line.. Stat.ion ~ene~aland ~ompone':lt..s: ~.Sti3tions 0 11 the CulvE?r. Line Stati~.m ComfJonent Rep~irs: 2014 Station Renewal: 9 location, Sea Beach tine Station Renewal: 6 Stations on the New Lots line..,, ".. Station Comp()nent: 6 Stations, Jamaica line Station Component: 3 Locations,Astoria line. ADA: 68th Street-Hunter College Stf:Jtion ~ Lexin~on line (;rand C(i!ntral StatlonAc~ess Improvements Station Reconstruction: Times Square, North End Stair 2014 Mainline Track Rep,lacement 2014 Continuous We.lded Rail (CWR).2014 Mainllne Switch Replacement Line Equipment T T Rehabilitate Deep Wells: Nostrand Avenue - Ph 2 Pumps: 4 locations I Pelham-jerome-Lenox Lines V-4

36 _.. 0""0 Line Structures T T '. T Flood Miti~ationat6locations. 0 Reh.oa~ilitate R~t~lnin& Wall.~1 Sea Beach Une O\lercoa~Pain~in~: W~st?t~ tochurc~ Aye Portal- Culver ~in~ 9~ercoa~~a.inting:.~roadway JunctljJn-New lots, Cl:marsie Une SIgnals and Communic~ti.0'!.!i... 0'" 0._ ETO~0~02 Rocka!-,ayp~E!Storf1l Damage Restoration ET.D80207 Sj~l1al~.S.torIT\Dam~15t: ~~st~ra.tion T Mode,rnize 2 Int~rlockings: Union Turnf)lke and 71st Ave-Queens Blvd line T S~gnC3I~~ntrol tylodifications, Ph 5 T Dyre Av~Une Signals.. T St.lnterloc~jng-:.6th AyenliE! l!ne T Wes,t 45t Interl~~king (6th ~venue. T CBTC Queens Blvd - West 50 Street to Union Turnpike,., > ".. " " - ->'. '" ", ~" " ",.",...,.,.., '" Power T T T T Shops ET T T Substation Hatchways: Phase o 3 - Various locations C~H 403yander~ilt/ Flus.~j~~ li~e ~eplac.e Emergency.~larlTls Reh.abilita~e C~H.#27?0: P_earl Street I Clark St Une.. Shops) Yar~s~ and()~h~r FaciHti~s Storm DamClge Restoration 0207 St qverhayl ShQP:~xPClnd AC?hop Department of Car Equipment Shop Repairs Ph 2 yard lighting: Jerome a,n~o Westchest~r YClrds - Bronx 2014 Yard Track 2014 Yard Switches DefJots Service Vehicles T Miscellaneous T " Bus.~.adio System.& Command Center 8 Bus Washers at 4 Bus Oep()ts Purchase 54 Flat Cars Department of Subways Roof Replacement Phase 3 Power Upgrade: RCC, PCC V-5

37 -----~~ RESOLUTION ADOPTED AT A MEETiNG OF METROPOLITAN TRANSPORTATION AUTHORITY September 18,2013 WHEREAS, on and after May 23, 2013, a Notice of Public Hearing on the projects to be considered for inclusion in applications to~ the United States Department of Transportation (USDOT) for Federal financial assistance under Section 5307, Section 5309, Section 5324, Section 5337, Section 5339 and Section 5340 of Title 49, Chapter 53, United States Code, as well as funds available for transit use under Title I of the Moving Ahead for Progress in the 21 st Century Act {MAP-21} was published in newspapers of general circulation (including newspapers oriented to minority communities) in the geographic area to be served thereby. which Notice contained a summary of the capital Improvement program for the balance of federal fiscal year 2013 and federal fiscal year 2014 for the New Yori< City Transit Authority, Manhattan and Bronx Surface Transit Operating Authority, Long Island Rail Road, Metro-North Commuter Railroad, Capital Construction Company, MTA Bus Company, Staten Island Rapid Transit Operating Authority; and WHEREAS, the full program of projects, including descriptions of individual projects, for the balance of federal fiscal year 2013 and federal fiscal year 2014, was available to the public, as indicated in the notices published in newspapers, either by request or at public offices in the area served by the Authority; and WHEREAS, au of the principal elected officials of each general purpose unit of government within the service areas of the mass transportation operators for whom assistance is being sought under the said project application were notified by mail of such application; and WHEREAS, on June 18,2013 the Public Hearing was conducted by the Authority affording to all concerned the opportunity to present their views, and to submit written statements concerning the projects, including consideration of the economic and social effects of the projects, their impact on the environment and their consistency with the goals and objectives of such urban planning as has been promulgated by the affected communities; and WHEREAS, the members of the Authority have had an opportunity to review the testimony given at the said Public Hearing, and the statements submitted in connection therewith. NOW, THEREFORE, BE IT RESOLVED BY METROPOLITAN TRANSPORTATION AUTHORITY: 1. The Chairman and Chief Executive Officer, or any of his designees, be and each of them hereby is, with respect to applications for grants for projects under Section 5307, Section 5309, Section 5324, Section 5337, Section 5339 and Section 5340 of Title 49, Chapter 53, United States Code, as well as funds available for transit under Title I of MAP~21. authorized to certify to the United States Department of Transportation that the Authority has (a) afforded an adequate opportunity for a Public V-6

38 Hearing on the projects pursuant to adequate prior notice, and has held such Hearing; (b) considered the economic and social effects of the projects and their impact on the environment, including requirements under the Clean Air Act, the Federal Water Pollution Control Act and other applicable federal environmental statutes. and their consistency with goals and objectives of such urban planning as has been promulgated by the affected communities; (c) found that the projects are consistent with the official plans for the comprehensive development of the urban area to be affected; and (d) found that the projects are in the best overall public interest taking into consideration the need for fast, safe and efficient public transportation services, and conservation of environment, historic sites and natural resources and the cost of eliminating or minimizing any adverse effects. 2. The Chairman and Chief Executive Officer, or any of his designees be, and each of them hereby is, authorized to deliver to the said department a copy of the published notices of and transcript of the said Hearing, including those written statements submitted in connection therewith, and to advise the said department (a) that it may consider the applications as the Authority's final applications. subject to such revisions as the Chairman and Chief Executive Officer or his designees may deem acceptable; (b) that the views, if any, conceming the projects of those principal elected officials of each general purpose unit of govemment within the service areas of the mass transportation operators for whom assistance is being sought under the said applications, are as set forth in the transcript of the said Public Hearing and those written statements submitted in connection therewith. 3. The Chairman and Chief Executive Officer, or any of his designees be and each of them hereby is, authorized to execute and file applications and accept from the United States of America, on behalf of the Authority, grants of financial assistance under successor legislation to Section 5307, Section 5309, Section 5324, Section 5337, Section 5339 and Section 5340 of Title 49, Chapter 53, United States Code, as wen as funds available for transit use under TItle I of MAP21 (in such amounts as may become available) in connection with the projects upon such terms and conditions as the Chairman and Chief Executive Officer, or any of their designees shall deem acceptable. V-I

39 CERTIFICATION The undersigned hereby certifies that she is the Assistant Secretary of MetropoUtan Transportation Authority, a public benefit corporation of the State of New York, and that the foregoing is a true and correct copy of a resolution adopted at a meeting of the said Authority duly held on the 18 th day of September 2013, at 347 Madison Avenue, New York, New York at which meeting a quorum of the said Authority was present and acting throughout. Victoria Clement Assistant Secretary Dated: /hom&lmarcfdocum.mtslresolulioll doc V-8

40 MetropoUlllln TfEUlf.lportatlon Authority Investment Performance by Type of Fund For the Period Jan to June 30, 2013 Type of Fund All Agency Investments MTA Special Assistance Fund TBTA Investments MTA Finance Fund MTA Transportation Resolution Funds State Service Contract Debt Service Fund MTA Dedicated Tax Fund Resolution Funds 2 Broadway Certificates' Funds TBTA General Purpose Resolution Funds TBTA SuborOlflate Resotution Funds Other Resilicted Funds Net Earnings this Average Daily End of Period Period Portfolio Salance Portfolio Balance $ $ 576,261,341 $ ,937, ,510,881 68, , , , , ,716,681 1,356,324 1,328,436, , , , , , ,880 10,307, , ,967, , ,471 30, , , , ,265,676 $ $ &,600 $ 4,055712,890 Weighted Average Weighted Net Yield at Average Portfolio Endo' Dayato Yield, 365~ Period Maturity day Basis 0.10 % % % % Average Yield on6 month Generic Treasury Bill { f13} 'Y.. Average Yield on 12 month Generic Treasury Nota ( }... "..., % Note 1: Table above only includes information on funds actively managed by MTA Treasury in accordance with the Board approved Investment Guidelines. It does not include defeasance Investments for tax benefit lease transactions or insurance set asides. Note 2: 'Other Restricted Funds' inchides: Fulton Street Maintenance, MTA Real Estate and Advertising Revenue. Hudson Yarcl ERYIWRY - From Related, Relocation from Madison A'IIe., Hudson Yard Infra Corp., SIRTOA-Capital.

41 Investment Inventory with Market Value By Security Type Instrument Type Scheu Par Certificates of Deposit $ 6,980,055 Commen::ial Paper 1.301,456,000. Federal Farm Credit Sank Discount Notes 64,006,000 Federal National Mortgage Assodation Discount Notes ,000 FHLB Discount Noles ,000 Freddie Mac Discount NOles 241, REFCO Strip Principal 41, Repurchase Agreement Interest US Treasury BiU 596, US Treasury Netas End of Month ,000 US Treasury Netes Middle of Month 942,930,000 US Treasury StriDs 15, IGLand Total $ 4-01lS Original Settlement Amount Sched Book Value Market Value- $ 6,980,055 $ 6,980,055 $ 6,980,055 1,301, ,307, ,375,955 64,021, , , , ,709, , , , , , , , ,291, , ; ,649, ,671 50,092, , , ,781, G , $ 4, $ $ " ( Accrued Amortized Accrued tntenhit {Pl'lIm)lOisc Book Value $ $ $ 6,960,055 43, ,375,955 29,941 64,021,430 64, , ,709,462 69, ,950,807. 3, , ,649, (2,416) 50,042,506 1,163,746 (545,666) ,591-1, $ 1,518'51 $ 4818,926 $ 4.060, 139,035

42 Metropolitan Transportation Authority Portfolio Statistics By Security Type As of: 6/30/2013 Certificates of Deposit Commercial Paper Instrument Type Federal Farm Credit Bank Discount Notes Federal National Mortgage Association Discount Notes FHlB Discount Notes Freddie Mac Discount Notes REFCO Strip Principal Repurchase Agreement * Interest US Treasury Bill US Treasury Notes End of Month US Treasury Notes Middle of Month US Treasurv Strips Grand Total WtdAvg Rate WtdAvg Yield 0.40% 0.40% ~ ~ % 0.1:ZO/o WtdAvg Days to Mat , , Scheduled Scheduled Par Value Book Value $ 6,980,055 $ 6,980,055 1,307,456,000 1,301,315,955 64,066,000 64,021, ,035, ,925, ,836, ,709, ,098, ,950,807 41, ,670, , ,649, ,824, ,635,587 50,000,000 50, , ,041 15,205,000 10,126,868 $ 4, $ 4.055,

43 Metropolitan Transportation Authority Investment Maturity Distribution As of: 6/ No. of Principal Maturity Curve Secs. Cost" % Cum % one day to 1 Month(s} 51 $ 1,935,077, % % 1 to 2 Month(s} ,245, to 3 Month(s) , to 4 Month(s) 15 71,613, to 5 Month(s} , to 6 Month(s) 6 109,420, to 12 Month(s) ,115, to 120 Month(s) 3 4,715, >120 Months 2 19,670, % Grand Total 166 $ 4,055,910, %1.. Principal Cost includes current purchase interest.

44 --c Metmpolttan lranspof1l!uon Auttlonly Broker Activity Distribution I! From: io: 613I.112l)U % TotBl No. of Purc;lmse of Purchases % Broker Tnans Securities Principal Roll in & RollIn Sale of Securities Sales Bartlays 173 $ ( ) $ % $ % Bam of AmericalMerril t.ynch 400 ( ) OAIWA 225 ( ,538) Goldman Sachs 71 ( ,562) '0.01 HSaC 147 (623,922,749) Mizuho 168 (9t).182,649) Morgan Stanley 177 ( ;322) ,638, No Broker 8 (2.500,GOO} (6.101,200) UBS 18 ( ) Wells Fargo 1 (31.445,'37) Wilmington \ Grand Total U8e $ f:l4, jl $ 1& % S 85fOU % REPOS %!lepos $ % (10, ) (22, ) {7, ,OOO} (12,826,963,000) $ f52.92s,423,oom ,. % liiettotal Hal Toml $ ( ) 5.06 % (20, ) ( ) ( ) 3.85 ( ) {12.917, } (4, ,416) 6.01 (6.043,609) 0,01 (675,181,906) 0.8a (31.445,131) 0.04 ( ) 0.00 $ ( %

45 Staff Summary Subject Date Request for Authorization to Award Various Procurements September 9,2013 Department Vender Name Executive Various Department Head Neme Contract Number Nuda Fernandez " Various.. -""~ Contract Manager Name Various ~~ Hoad N",,: Clifford Shockley -"'" Jq' (!J;.. Board Action..., Table of Contents Ref 11 inte!mal Approvals Order To Date Approval Info Other Order APPl'Owl I Order Approya! 1 Finance 9/16/13 1 ProcurementM 3 COO1i 2 Board 9/ Legal ill} 4 CPO Pa 1>1 of< I I PURPOSE! To obtain approval of the Board to award various contracts/contract modifications and purchase orders, as reviewed by the MTA Finance Committee. DI CUSSION: tt. gf A,ttions $ Amount MTAHQ proposes to award NOD~competitive procurements in the following categories: Schedule F: Personal Services Procurements Louis T, Cerny ~.. '" Mortimer t, Downey.. Jack Quinn ~.. Conrad Ruppert, Jr. =$ 294,208 i.. Ro'dney E. Slater I!.. William Van Trump 6 $ ,.J MTAHQ proposes to award Competitive procurements in the following categories: SUBTOTAL 6 $ 294, S!:'hedules Reguiring Majority vote I ScbeduleE: Miscellaneous Procurement Contracts 1 $ 80, I Schedule F; Personal Service Contracts 3 $22, ~ SUBTOTAL 4 $22,880, ' I MTAHQ presents the following proeurement actions for Ratification: Xone None I TOTAL I 10 $23,174, I :qupget IMPA<;;T: The purchaseslcontracts will result in obligating MTAHQ operating and capital funds in the amount listed. I Funds are available in the current MT AHQ operating/capital budgets for tbis purpose. RECOMMENDA non: That the purchases/contracts be approved as proposed. (Items are included in the resolutioll of approval at I the be inning of the Procurement Section.) J V-14 I

46 ,,,"" --,,-,,-,--"'-"'- -, BOARD &ESQLUTIQN METROPOLITAN TRANSPORTATION AUTHORITY WHEREAS, in accordance with Section 1265-a and Section 1209 of the Public Authorities Law and the All Agency Procurement Guidelines, the Board authorizes the award of certain non w competitive purchase and public work contracts, and the solicitation and award of request for proposals in regard to purchase and public work contracts; and, WHEREAS, in accordance with the AU Agency Procurement Guidelines, the Board authorizes the award of certain non-competitive miscellaneous procurement contracts, and certain change orders to procurement, public work. and miscellaneous procurement contracts; and WHEREAS, in accordance with Section 2879 of the Public Authorities Law and the AU Agency Guidelines for Procurement of Services, the Board authorizes the award of certain service contracts and certain change orders to service contracts. NOW, the Board resolves as follows: 1. As to each purchase and public work contract set forth in the annexed Schedule A, the Board declares competitive bidding to be impractical or inappropriate for the reasons specified therein and authorizes the execution of each such contract. 2. As to each request for proposals (for purchase and public work contracts) set forth in Schedule B for which authorization to soucit proposals is requested, for the reasons specified therein the Board declares competitive bidding to be impractical or inappropriate. declares it is in the public interest to solicit competitive request for proposals and authorizes the solicitation of such proposals. 3. As to each request for proposals (for purchase and public work contracts) set forth in Schedule C for which a recommendation is made to award the contract, the Board authorizes the execution of said contract. 4. The Board ratifies each action taken set forth in Schedule D for which ratification is requested. 5. The Board authorizes the execution of each of the following for which Board authorization is required: i) the miscellaneous procurement contracts set forth in Schedule E; ii) the personal service contrdcts set forth in Schedule F; iii) the miscellaneous service contracts set forth in Schedule G; iv) the modifications to personaflmiscellaneous service contracts set forth in Schedule H; v) the contract modifications to purchase and public work contracts set forth in Schedule l; and vi) the modifications to miscellaneous procurement contracts set forth in Schedule J. 6. The Bqard ratifies each action taken set forth in Schedule K for which ratification is requested. 7. The Board authorizes the budget adjustments to estimated quantity contracts set fbrth in Schedule L. V-1S

47 ;LIST OF ~RpCUREMENTS FOR BOARD AfPROV AL, SEPTEMBER 201~ NOH COMPETITIVE PR9CURE~EN1~& MEIRDPOLITAN TRANSPQRTATION AUTBORID Proc.w:ements ReguiringMajority Vat!: F. Personal Service Contracts Staff Summaries required for item greater tiian: SlllllK Sole Source; SlSCK Other Non-Competltive; SIM Competitive) 1. Blue rubbon Panel $294,208 Sta(fSummary A.ttached Contract No ~0100 tbru 0600 (!lor~to-ellceed) 1!. Louis T. Cerny b. Mortimer L. Downey c. Jack Quinn d. Conrad Ruppert, Jr. e. Rodney E. Slater r. William Van Trump Non-Competitive - 6 months MTAHQ to engage the services of a Blue Ribbon Panel of transportation safety officials and railroad industry leaders, following a recent series of safety-related incidents. including derailments and workplace accidents, involving MT A Metro-North Railroad, MTA Long Island Rail Road and MTA New York City Transit. The Blue Ribbon Panel members are uniquely qualified to review the maintenance and workplace practices, protocols and strategies at each of the three agencies and determine if they promote an appropriate culture of safety at the agencies. The Panel will also provide assistance in identifying improvements to agency track and infrastructure programs in order to help prevent future occurrences. The six (6) selected panel members will be paid their customary rates, ranging from $150Ihr. to $3001hr., which fall within the range that these experts have charged Federal and State Governments. Based on the above, these hourly rates are considered fair and reasonable. V-16

48 Staff Summary Schedule F: Personal Service Contracts Pag&10n: Item Number: 1 SUMMARY INFORMATION Dept a. Dept Head Name: Vendor Name: T Oontract NUmber: Chief of Staff Various I o100thruOSOO Division 8. Division Head Name: Description: Catherine A Rinaldi Blue Ribbon Panel Total Amount: Board Reviews $ Ordar To Date I Approval Info! Other Contract Term (Including Options, If any) ; 1 Finance 9/16113 X September to March ! Sosro 9/18/13 T X ~llncluded In Total Amount? U Yes I I r Internal Approvals Renewal? PI"Ocurement Type: Order Approval J Order Approval Solicitation Type: 0 Competitive 18l Non-oompetitlve 0 Yes 1. Procurement If)t/ :3 Diversity end Civil Rlght& t11 ~ 0 RFP 0 Bid!8:1 Other; Sole Souree 2 Chief of Staff ~ 4 L.ega~ I Funding Source: ~._uv_e : : }. PURPOSE/RECOMMENDATION I 5 CFOW!8J Operating 0 Capital 0 Federal 0 Other: tg! No t8l No : ~I!I To recommend that the Board approve the award of six (6) negotiated, non.competitivepersonal services contracts to engage a Blue Ribbon Panel of transportation safety officials and railroad industry leaders, following a recent series of safetyrelated incidents, including derailments and workplace accidents, involving MTA Metro-North Railroad, MTA Long Island Rail Road and MTA New York City Transit. The Blue Ribbon Panel members are uniquely qualified to review the maintenance and workplace practices. protocols and strategies at each of the three agencies and determine if they promote an appropriate culture ofsafety at the i agencies. The Panel will also provide assistance in identifying improvements to agency track and infrastructure programs in order I to help prevent future occurrences. The contracts are for a six-month period from September 19,2013 to March 18,2014, to panel members listed below, in an amount of $234,208.00, with a contingency of$60,ooo for an aggregate amount of$294~208~oo I II. DISCUSSION 1. Louis T. Cerny 4. Conrad Ruppert, Jr. 2. Mortimer L. Downey 5. Rodney E. Slater 3. Jack Quinn 6. William Van Trump Over the past several months, MetroNorth, LIRR and New York City Transit have experienced a series of mainline derailments. Since the derailments had track-related defects identified as either a potential cause or contributing factor, track maintenance practices are currently being examined. In addition, as a result of a recent employee fatality involving the operation of a revenue service train on a section of track that had been closed to traffic, the agencies have been reviewing safety procedures and the overall I culture at the agencies. The work of the Panel is expected to complement the work of TICI, which. pursuant to Board approval in July, has been retained by Metro-North to conduct an expedited review and assessment of Metro~North's Maintenance of Way Division. The TICl contract approved by Board also included an option for LIRR to use TICl for a similar assessment, which assessment is expected to begin this fau. In light of these incidents and the concerns that they have raised, Chairman Thomas F. Prendergast has fonned a Blue Ribbon I Panel of six distinguished railroad and transportation experts. Rodney Slater was director of the Federal Highway Administration : and U.S. Secretary of Transportation in the Clinton Administration. lack Quinn is a former member of the House of Representatives who served on the Transportation and Infrastructure Committee. Mortimer L. Downey held the position of U.S.. Deputy Secretary of Transportation for eight years, and was for 12 years the MTA's executive director and chief financial officer. Conrad Ruppert is a senior research engineer at the University of Illinois and a 35~year veteran of Amtrak with expertise in railway \1.17 I i

49 ... _-_.. _.... _---_.. _._._----_._ Staff Summary Contract No thru 0600 f\ I track engineering, track safety, maintenance operations, and track research. Louis Cerny is a former executive director of the American Railway Engineering Association (AREA, now known as AREMA) and executive director of the Association of American Railroads (AAR) Engineering Division. William Van Trump is a former Senior Assistant Vice President of Engineering for the Union Pacific Railroad and a director and past president of AREMA. The Blue Ribbon Panel members are uniquely qualified to review the recent derailments and to make recommendations regarding track maintenance practices and how the agencies can improve thelr safety using best industry practices and CUtTent technologies. The objectives of the Blue Ribbon Panel Initiative include but are not limited to the following:.. to ensure that a culture exists in which agency leadership embraces the importance of safety and effectively communicates safety as a core agency value and in which staff and first~line management possess the core competencies to implement necessary cbanges to existing practices and procedures; '" to identify any commonalities among the recent incidents and determine ifthere are any system~wide improvements to agency track: and infrastructure programs that would help prevent future occuttences;. " to determine if we are complying with internal and external standards for maintaining and inspecting track and infrastructure system elements; " to assess the adequacy of existing inspection and maintenance programs. including the use of available technologies, and identify whether track and infrastructure programs and practices are effective in meeting our objectives; and,.. to identify latent conditions andlor active failures that have the potential to pose a safety hazard, including the prioritization and timely response to these conditions, and implement appropriate corrective actions to address any such conditions in a meaningful, permanent and effective manner, in accordance with industry best practices. The six (6) selected panel members will be paid their customary rates, rangmg from $ls01hr. to S3001hr., which fau within the range that these experts have charged Federal and State Governments. Based on the above, these hourly rates are considered fair and reasonable. I m. DfM/WBE INFORMATION, No DIMfWBE goals were established by the MTA's Department of Diversity and Civil Rights for this contract. There are no subcontracting opportunities for the nature of services to be provided. IV.!MPACT ON funding This contract is being funded by MT A Headquarters. V. ALTERNATIVES. 1. Perform all services in-h2ylie, This alternative is not feasible. The MTA needs to engage independent experts to examine MTA I practices and procedures from an outside perspective, 12. Do Dot approve award of the contm t. This would impair MT A's ability to identify improvements. 1 I I V-18

50 LIST OF PROCUREMENTS FOR BOARD APPROVAL, SEPTEMBER 201~ COMPETITIVE PROCUREMENTS MEIRQPOLlI:AN TRANS ORIAIIO~LAUIBQRrrx Procurements &riu/ring Ma;ority Vote: E. Mi ceua!cous Procurement Contract! (Staff Summaries Wjulred for sultens! greater than: 51001< Sole Soune; 5250K Other Non-Ccmpedtive) 1. NASDAQ OMX Corporate Solutions $80,000 Board Communication System (not to exceed) Contract No M OIOO Competitively Negotiated - 4 proposals - 36 months To recommend that the Board approve an award to NASDAQ OMX Corporate Solutions to provide software service that will publish Board and committee materials and support board communications, offering features and functionality that will improve efficiency, reduce paper usage, enhance flexibility, and offer easy-to-use collaboration tools. The Board and its committees each typically hold a set of meetings eight times per year at roughly six week intervals. although the frequency of Board and most committee meetings will be increased to eleven times per year, beginning January, For every MTA meeting cycle, over one thousand pages of preparatory material are printed, bound in multiple books. and delivered to the Board members. This current process is antiquated and the materials are extremely cumbersome. The new software would allow Board Members and MTA staff to instantly access Board and Committee books and other pertinent documents in a more efficient and timely manner through a secure internet-based ponal via ipad, laptop or desktop computer. As a result of negotiation, the yearly cost was negotiated down from $32,500 to $25,000, a savings of $7,500 or 23.07% ($5,000 is included for implementation and as needed training). There are no prior contracts for these services. Based on the above, the negotiated price is deemed fair and reasonable. Personal Service COl1tracg SlaffSummarles required fot ittrlls greater than: SlOOKSoIe SourtC; SZSOK Other Non-Competitive. $lm Competitive) 2. Miller Advertising Agency. Inc. $5,800,000 Sta(fSummarvAttgched AU-Agency Classified, Legal and Recruitment (not-to-exceed) Advertising Services C~ntrad No Competitively Negotiated - 2 proposals - 48 months Contractor to provide as-needed classified. legal and recruitment advertising services. V mous departments at MY A and the agencies place classified/legal/recruitment advertisements on an ongoing basis. These advertisements are placed either due to legaily mandated requirements or business necessity. As a result of negotiations, MTA will receive a discount for au media equal to 9.25% of the 1 S% commission (industry standard rate is 15% commission which is not typically shared). This discount is.75% greater than the discount under the current contract Based on a projected four-year media expenditure of $5, , which includes a contingency of $200,000.00, the 9.25% discount MT A will receive represents a savings of $ Based on the above, the negotiated discount is considered fair and reasonable. V-19

51 METROPOLITMl TRAN 1!ORXAIIQN AUTHQRITX COMPETITIVE PROCUREMENTS 3. Business Transformation Consulting Services $5,000,000 Staf(Summary Attached Contract No thru 0800 (ltot.to-exceed) a Deloitte Consulting LLP b. First Data Government Solutions LP t. Grant Thornton LLP d. KPMGLLP e. McKinsey & Company, inc. f. Public Financial Management, Inc. g. Public Strategies Group h. International Business Machines, Corp. Ride Competitively negotiated NY State Contract No. C months Contractors to provide as-needed business transformation consulting selvices. For several years, MT A has been aggressively reducing costs and increasing revenues from its non-core functions. The consulting selvices utilized under this agreement will complement and enhance MTA's efforts to improve its business processes, identify and implement opportunities for operating and capital cost savings, and increase revenue generation. It is anticipated that additional management consulting support from these firms may be helpful in identifying additional savings opportunities going forward. These as-needed services will be performed based on the rate structure established in each firm's NY State contraet (ranging from a low of$116 to a high of$719 per hour). Specific work assignments with these firms will be awarded after conducting a mini-rfp process among all of the firms. The pricing being obligated under this agreements is the same pricing offered under the NY State contract. 4. Pulsar Advertising, IncJArcade Creative Group, Inc~ $12,000,000 Sta{fSummary Attac/,ed All-Agency Fun Service Marketing Agency (notto-exceed) Contract No Competitively Negotiated - 9 proposals - 36 months Contractors to provide full selvice marketing and advertising selvices to MTAHQ and its agencies. Due to rapid change in the way MTA customers wish to access information about MTA services, the marketing needs of the MTA are similarly evolving from print to digital advertising. As a result of negotiations, the fum's originally proposed fully-loaded hourly rates ranging from $100 to $230 (for production) were negotiated down to a range of $55.65 to $195 for a savings of 15.21% to 44.35% (these rates are lower than the finn's federal government rates). These fully-loaded rates are $24.15 to $105 higher than the rates under the previous contracts which were in effect since 1998, or 15 years. Projected spending utilizing the negotiated hourly rates (for production) and commission rates (for media) demonstrates a combined savings of 4.2%.The negotiated fullyloaded rates and commission percentages will remain firm for the base three year period. with the optional years (i.e. Years 4 and 5) subject to escalation of3% or CPl. whichever is lower. Based on the above, the negotiated rates are considered fair and reasonable. ~2 V20

52 Staff Summary Schedule F: Pemomil! Service Con~ ltsm Numh&r. Dflpt a Dapt Hnd Nams: VlmdarNalM: f Contnwt Numbw: Corpof!!lte & Internal ComlTlunlcatfonsIPaul Fteurangea Miller AdvertisIng Agency, Inc G100 DllIhllon e. DllliBlon HQd Name: D\lISortption: All J\gencv-Classffiod. LeAst and ReenJitmMt MamUlig 8. ComfmJnfQstfonw'Mm Heavey AdvertJe!na $ervi'ce$ for MiA end the Ag&ndss Total Amount BoonS Rw'&W8 $5.800, Order :To Oat. Approval ltafo athol' COntfUt Torm (fnml.l fing Options. If any); 1 Finane October 1, September Board Opticrl(o) r~ In Ttmt Amount? Dves 181 No : Rft~? I8IVes ONe Il'Item~i Approvals Prc~nt 'type: Order -',- APPi'ovaf I Otder Appmwl hll.ucm 'n'pa~ ""'J(.2 Ii Fundlnu SC1JtI:Ie: 3 Corp. & I( / Narrative.l{~ lei Competitive 0 Non-compeWive 1 P~!L V-, 4 Oapt. otdlvelllty ani1 ~ ijrfp o SId DOthsr. II\1em8l f 6 CFO t8l Opntlng 0 Capital o Fedeml OOthsl': I. I. FWPOO1M;UiCQ.MMBNDADON To recommend that the Boud approve the award ot I ~etitivi)iy nqottated, all-agency personal SeMCCS contract to MiUer Advertising A,gcncy. Inc, to proyide classified, Jegal and recruitment advertising smices to comply with lepl mandates or business necessity for a period of'four(4) years from October 1,2013 through September 30,2017, ill the aot-tc-exeeed amount of $5,600,000,00 with $200, fo!' contiugencles for an ovcrau cost ofss,800,ooo.oo. N n.!l1s~ysstgn The current contraet for elauified, tegal and reentilment advertising services will expire on September 30, rn order to continue the SeMOCS, a Request for Proposals (RFP) was publicly advertised 1UI.d. fetters advising potential proposers oithe m~. availability were sent to 30 vendors. 10 of which are DIMIWBB tirms. Two (2) proposals were received. The firms were evaluated based on their relevant experience and ~ in provfdtuj classified, legal and recruitment advertlsinl services, staff qualifications and cost. The Selection Committee. (lonslit!ng of tepremltatms from MT A Marketing DMsion, MTA Now York City Trusit, MT A Long Island Rail 'R.oad. MT A Metro-North R.Iilroad and M't' ABridgcs IlId 'l"lumols, ovaluated the proposals and recommended the award be made to Miller Advertising, 1bt tu.cl1.o:lbent. OIl the buis ottbe quallty of their proposal and best pr:ichtg.! I,. I Various departments!at MtA and the agencies place classifiedl1egallrecruitmellt advertisements on an ongoing basis. These advertisements are placed euber duo to tepuy UWldated requ.l.ramer.lts or business n$c(;ssity. Since JUly 1992, au oftbe agencies have been using Olle master eontmet for these services. M a result, savings and efticjencios have been athiewd m a wriety of waysl as indicawd below. Miller will. continue to assist MT A and the agencies tofurtbet reduce advertising costs and improve advertising effectiveness through the following semecs: \) On Ii regular basis, reduce advertlsina com by redesigning ~ts to use less linage, columns and other variables that go into the media cl.laries.. ) V-21

53 Staff Summary Contract No Page 2 of2 Ii) Ii) I iii)! I iv) Reduce costs and improve effectiveness by combining the advertisements of one or more agencies. Continue to encourage the major newspapers to view the MT A system in a favorable manner for the purpose olthe rate schedules that witl be applied. Reduce costs through commission sharing. Improve the effectiveness of recruitment advertising programs for specific positions, through the use of the Internet and other new technologies that will be in addition to, or in lieu of, traditional print media. As I:l result of negotiations, MTA will receive a discount for all media equal to 9.25% of the 15% commission (industry standard rate is 15% com.niission which is not typically shared). This discount is.75% greater than the discount under the current contract. Based on a projected fouryear media expenditure of$s,soo.ooo.oo, which includes a contingency ofs , the 9.25% discount MTA will receive represents a savings of$536,500. Based on the above. the negotiated discount is considered fair and reasonable. m. P~E lnfqrmation No MBElWBE goals were established by the MT A Office of Civil Rights for this contract. The MBElWBE requirement was waived due to the nature of the classified/recruitment advertising business, which affords no opportunities for SUb-contracting. IV. IMPACT ON FUNDING The actual expenditures for classified, legal and recruitment advertising are dependent on the actual need for the advertisements and will be funded from each Agency's operating budget. Funding is not to exceed $5,800, including a contingency of $200, I Iv. ALTERNATIVES 1. QonlrilSl! directly with Media. This alternative is neither cost-effective nor practical. If MT A and the agencies deal directly with the media, there would be no cost savings and the individual agencies would incur additionat administrative costs associated with placing advertisements directly with the media. 2. Do not approve placement oflggal and recruilment Mvert;il!ing. This is not a feasible alternative since these advertisements are placed because they are legahy mandated or of business necessity. [,'_ V-22

54 Staff Summary Schedule F: Persona. Service Contracts Metropoll1an transportation Authority Peg\!1of2 Item Number: SUMMARY INFORMATION Dept &. Dept Head Name: Vendor Name: 1 Contract Number: CFO, Bob Foran Various furu agon Dlvlslon & DIvision Head Name: Description: Business Transformation Consulting Services Total Amount: Board Rev/&WS 5,000,000 NTE I Order! To I Dats Approval I Info Other Contract Term (including Options, if any) 1 Finance l3 I September 25, 2013 to August 8,2016, 2, Soard 19/18113! Optlon(s) Included In Total Amount? 181 Yes DNo I I Renewal? DYes 181 No Procurement Type: Internal Approvals 181 Competitive 0 Non-competitive Order Approval t Order Approval SOlicitation Typ&: 1--" 1 Procurement DR 3 Diversity and Civil RlghtsJ9I 181 RFP o i,""a7ft Sid o Other: 4 if! Fundlng $01.1«:$: 2 ICFO 18I0perating o Capital OFederal DOther: i J Narrative 1. PVRPOSEfRECOMM,E!'mATION I To recommend that the Board approve the award of eight (8) competitively negotiated, personal services contracts, riding New Yark State Contract C for asneeded business transfonnation consulting services for a period of three (3) years from September 25,2013 to August 8, 2016 (two option years are included), to the (ll'lll$listed below in the not-to-exceed amount of $5,000, Deloitte Consulting LLP S. First Data Government Solutions LP 2. IBM 6. Grant Thornton LLP 3. McKinsey &. Company, Inc. 7. Public Financial Management, Inc. 4. KPMGLLP 8. Public Strategies Group n. DlS~USSION I For several years, MTA has been aggressively reducing costs and increasing revenues from its non-core functions. MTA's July Financial Plan contemplates that MTA will identify and implement additional saving initiatives and revenue. opportunities over the next four years. The consulting services utilized under this agreement will complement and enhance MIA's I eff0:ts to impro~e its business processes, identify and implement opportunities for operating and capital cost savings, and increase revenue generatlon. Business transformation consulting services may include, but are not limited to; Analysis of business and operational processes and identification of opportunities for improving efficiency. sharing services, reducing costs, raising revenues and enhancing the customer experience; and Review of existing organizational andgovemance practices, policies and structures and recommendations for improvements. i I I I I I 1 L V "-".. "-.-.-""-.--~

55 ... _._-_._._ Staff Summary o Metropolitan Transportation Authority Contract No thru 0800 In 2009 and 2010, the MTA introduced a number of savings initiatives and programs that included operational consolidations, strategic initiatives, paratransit savings and improved MTA-wide business practices. When combined with new recurring savings initiatives, these efficiencies are projected to yield $809 million of recurring savings in 2013, growing to more than $1.3 billion annually by Included in these projections are assumed savings. as yet unidenthied. of$25 million in 2014, $50 million in and $95 million in 2016 and In the November Plan, MTA Division of Management and Budget anticipates 1increasing the annually recurring savings targets further. Management consulting support from several firms, including Accenture and McKinsey, has been instrumental in enabling MT A to achieve savings to date in many areas. For example. in connection with initiatives developed by McKinsey under its Boardapproved gain-share contract, MTA has already achieved $26 million in savings and MTA estimates annual recurring savings from these initiatives of $112 million struting in It is anticipated that additional management consulting support from the firms eligible under New York State Contract C may be helpful in identifying additional savings opportunities going forward. As bas been the case in the past, consultant services will only be used in connection with initiatives where the expected savings are a significant multiple of the associated consulting fees.. In addition. MTA faces signiticant challenges preserving existing and identifying new funding sources for the Capita! Program. Consulting services from one or more of the eligible firms under this contract may be determined to be useful in support ofmta's efforts with respect to future Capital Program funding and the related operating budget impacts. These as-needed services will be performed based on the rate structure established in each firm's NY State contract (ranging from a low 0 f $ t! 6 to a high of $719 per hour). Specific work assignments with these firms will be awarded after conducting a minirfp process among all of the firms. The pricing being obligated under this agreements is the same pdcing offered under!lie NY State contract. In conformity with the applicable provisions of the Public Authorities Law, the MTA will not issue ally specific work assignments to its outside auditor without the approval of tile Audit Committee. Ill. DIM/Wag INFORMATION The MTA's Department of Diversity and Civil Rights established 10% WBE and 10% MBE goals for this contract I IV, IMPACT ON FUNDING The work under this contract will be funded from the MTAHQ operating budget It is anticipated that any costs will be more than made-up with operating savings throughout the MTA and its Agencies, V. ALTERNATIVES t. D~PRrove Award of these Contracts. This is not practical or cost effective. This would delay and compromise MT A's ability 10 streamline its operations and realize recurring savings as a result ofthese services. 2. Perform the Services In~house. This altemative is not practical. The Authority does not have all ofthe resources or the trained personnel to perform these services. I J! I L..J V-24 MTA FOlIO l'\r,(lf>8 3IQ7

56 Staff Summary o COiher: Fuming SOUrmJl CiSlOperatlng OCepltal DFedsral DOther. To recommend that thj Board approve tho award ofln AJ1-Ageney compotitively negotiated pel10ruu services contraqt to Pulsar Advertising,1rlc. and Arcade Crhtive Or~ Inc. to PfOvidB iwl service marlcetil2j and advertish1g services for a period ofthhty~ six (36) momhs &om October 1t 2013 to September 30, 2016, with m opdoa. tor two additional oneyear periods. Total ~, expauditure3will cotexcecd $2 million tortbe bwceof'the201s ca1endaryear. and '10 million for the 2014 ~daryear. Expendlt:ures for 5llbssqw1nt years will be determined by the ~ programs plamwd and Board approval of budgets for those years. The current competitivoly awarded contract for 8 M1 sonice advorti.sf.ng ~ expires on December 31. 2Q13..Due to rapid ohange In the way MTA customers wish to access information aboutmta service~ tho marketing needs of the MTAare similarly evolving from print to dtgital advertising. Pulsar Ac5wrtisb1g, IncJ Arcade Creative GroUP. Inc. will provide MTA and its agencies fu!lservice tj:wketing services in order to: 1, Continue to prov!de ~.lated ioformation neoesstr,y for customers to Wie the MT A's transit system. 2. Increase aw~s ofmta COtpOtato cwmmunieatiol1l initiatives, uu;:ludtng campaip for security, mety. capital. i:t!:q1rovcmema, and 'ipociai prog:num. J. Continue to improve pereeptiolls of tho MTIt. by lev~ the bene1its oftbe region-wide public tral1sporbltioiuystem and keep customers aware ofimprovomettts, diversions, service ~mcmtsj and other c1.l$tomer.. focused lnitiativcs; and 4. Expand the MTAts cusmmer communications ol.'lt:tach via cew electronic, social, and ~ media f'om1$ to better accommodate the preferred information sources of our customers, such as via mobile devices and soo1a1 netwol'k:ing. and shift media spending to'y(n'd these more costeffective aud hipiy measurable media forms. In order to continue the Authority's advertising and marketing pr~ and tespal'ld to such emerging custamer needs, a competitive Request for Proposal (R.PP) using the e-procuremw p.rooess was publicly advertised and lottor$ Informing prospective proposers of the availabiltty of tho UP paclcqc were ljel1t to thktcen ftmi.s, three of whiob were DBB firms. 1"ho Office of Diversity and Civil lughts established 17% DBB geals under this contract. Nine (9) proposm were received, one oiwhich was a PBB firm. The SOlection Committee, eonststing of~tatives tom MTA. Marketiv.& & CorpOralC CommunIcations, MTA New YorK Cit)' Transit, MT A Lona bland Rail Road. ma MftroNortb Railroad. MT A Bridges Tunnels, MfA Office ofch'il Rights Office, and MTA Office of Security evaluated the proposals and 1lt1lI1imousiy detcmlined that five of the flrmi were tcchllieauy qualified. Those firms were invited for oral presentations of which two finns were $hort~listed to plu'ticipate In the live. on-line e-proouremouf negotiations. V25

57 _._------_._ Staff Summary Contract No It Metropolitan Transportation Amhnl'lty Page2of2 As Ii. result of the e-procurement process and subsequent negotiations, the selection committee det~rmined that Pulsar Advertising. Inc.! Arcade Creative Group was the most technically qualified and best suited to perform the services identified by the RFP. MTA has conducted a responsibility review and other due diligence on the proposed awardees and has deemed each to be responsible for the award. As a result of negotiations, the firm's originally proposed fully..loaded hourly rates ranging from $100 to $230 (for production) were negotiated down to a range of$55.65 to $195 for a savings of 15.21% to 44.35% (these rates are lower than the fum's federal government rates). These fully-loaded rates are $24.15 to $105 higher than the rates under the previous contracts which were in I, effect since 1998, or 15 years.. The current contract commission rates (for media) averages 13.87%. The negotiated commission rates averages 5.5% which is 8.37% lower than the current contract rates. Projected spending utilizing the negotiated hourly rates (for production) and commission rates (for media), demonstrates a combined savings of 4.2%. The negotiated fully~loaded rates and commission percentages will remain firm forthc base three year period. Option years 4 and :; are subject to escalation of3% or CPl, whichever is lower. Based on the above, the negotiated rates are considered fair and reasonable. m. PlMfWBE INFORMATION: The MT A's Department of Diversity and Civil Rights established 17% DBE goals for this contract. Il\1PACT ON FWIDING: IV. Total marketing expenditures will not exceed $4 million for the balance of the 2013 calendar year, and $10 million for the 2014 calendar year. Expenditures for subsequent years will be determined by the marketing programs planned and Board approval of budgets for those years. Actual expenditures for the balance of2013 are dependent upon approval of projects currently in development or anticipated. Any expenditure incurred will be apportioned to the operating agencies and the MTA in accordance with the cost of projects actually implemented by the respective entities. v. ALTERNATIVES: 1. Do not p.:pfqve the award of the gont!:aqt This would not be practical. Without the ability to communicate broadly, customers and potential customers would not receive the servic~helated information they need to know, or the service improvement information they ought to know. Furthermore, any absence of communication could negatively impact perceptions of the MTA among customers. 2. Perrow the work In-house, This alternative is not feasible. The MTA and its operating agencies do not have the staffnor! expertise to buy media or create the breadth and depth of communications required to meet their marketing objectives. V-26

58 Long Island Rail Road Staff Summary }_..."".,...,_~_c ".",_...,_.,..._,,..--; \ ~ I COlltrad Malll'lger Signature I, i To obtain Board approval of a proposal to restore half~hotlrly service on the Port Washington Branch on weekends. and to operate weekend service on the Ronkonkoma Branch between Ronkonkoma and Greenport for approximately 10 additional weekends each year. As part of its service investments, the URR proposed an increase in servrce on the Port Washington arid ROllkonkoma branches. The increase in service will include the restoration 002 daily weekend trains on the Port Washington Branch to provide half~hour service, effective with the November II schedule. Currently. trains operate hourly 011 the weekend. The increase in service wih also include the extension of weekend service on the Ronkonkoma branch to and from Greenport by approximately 10 weeks, providing service starting in April and extending through November of each year. Currently, weekend Greenport service nms from Memorial Day Wee~end through Columbus Day Weekend. The MTA held a public hearing on the proposed changes on August 27,2013 at the MTA Board Room, it also permitted customers to record videotaped comments about the proposed changes on August at the GI'eat Neck and Port Washington Stations and on August 29,2013 at the Ronkonkoma and Riverhead Stations. Board Members are being provided with the comments made by the public. The net cost is as submitted to the BQard as part ofttle July Financial Plan. That the Board approve the restoration of halrhourly service on the Port Washington Branch on weekends. and weekend service on trw Ronkonkoma Branch between Ronkonkoma and Greenpnrt for approximately 10 additional weekends ea\lh yem', VII-1

59 _--_._--_._._-_._ The Long Island Rail Road Company BOARD RESOLUTION WHEREAS, in a Staff Summary dated September 16, 2013, the Senior Vice President of Operations has recommended the following actions: To restore half-hourly service on the Port Washington branch on weekends. III To operate weekend service on the Ronkonkoma branch between Ronkonkoma and Greenport for approximately 10 additional weekends per year. WHEREAS, a public hearing, as required by MTA Board-adopted Service Change Guidelines, was held on the proposed changes on August 27, 2013 and a summary of public comments was provided to Board Members; WHEREAS, upon a review of the Staff Summary and the documents provided to Board Members, the Board has detennined that: III III TIle Proposed changes would provide increased service on the Port Washington and Ronkonkoma branches; The funding for the proposed changes are included in the July Financial Plan; and WHEREAS, Board of the LIRR has considered the analyses of these major service changes prepared in accordance with Title VI requirements, and has considered impacts of these proposed changes upon riders of commuter rail services~ including minority and low-income users of such services; NOW~ THEREFORE IT IS RESOLVED that the Board approves the service changes described in said Staff Summary; and authorizes the President or her designee to implement such changes at such time as deemed practicable. VII2

60 . - _. _..._..._. --_..._...._-_..._ Schedule A: Non..competltive Purchases and Public Works Staff Summary Long Island Rail Road Item Number: Vendor Name (& Location) New York State lndustrie.~ for the Disabled, Inc. Dcs~ript!O!l Penn Station and West Side Yard Janitorial Servicc."S Colltraci TeTm (indudlng Options, if any) Contract Number! Renewal? TSD i&l Yes 0 No Renewal- $19,5W,997 EST Total Amonnt: Batificalioll- $ J,i "Q24 EE~ For Approval- $21.293,021 EST January 1,2014 thru December 31, 2018 Funding Sourc" Optioll(S} included In Total Amount'! DYes (8J No tel Operating o Capital o Federal DOther: Procuremcnt TyfW Requesting Dept/Div &. DeptfDiv Helld Name: o Competitive (8J Non-Competitive Transportation DI..>pt.1 Rod Brooks. VP. Transportation Sollcitatioll Type Contrae! Manager: ORFP DBid i8l Other: Preft:rred Source Donald Rikt:r Discussion: URR requests MTA Board approval to award a renewal contract to a preferred source, New York State Industries for the Disabled ("NYSlD"), to provide Janitorial Services at LIRR's Penn Station and West Side Yard Facilities, that includes all labor, material, and equipment for a period of 5 years, from January 1,2014 thru December 31, 2018, in the estimated amount of $19,510,997, and to ratify a 6 month extension from July 1,2013 thru December 31, 2013 in the firm fixed amount of $1,782,024 and at the current monthly rate of $297,004 that is required to finalize negotiations and to provide the time (up to 90 days) to obtain contract approval from the NYS Oflice of General Services and Office of the State Comptroller. This renewal contract is being awarded to NYSID in accordance Witll Section 162 of the New York State Finance Law (State Finance Law), which states that preferred sources shall be granted the right to provide services to New York State Agencies in order to advance social and economic goals. Under the State Finance Law, a contract award to a preferred source provider such as NYSID is expressly exempt from New York State Statutory competitive procurement requirements provided (i) it is capable of providing the service in the form, function and utility required by LIRR and (ii) the price it offers is as close to the prevailing market prices as is practicable. but in no event greater than 15% above the prevailing market price. NYSrD's proposed pricing for this 5 year contract was $19,612,842. LIRR P&L and MTA Audit staf!, identified opportunities for targeted savings, which consisted mostly of salary and fringe benefits. Pursuant to negotiations. reductions were obtained in. labor hours, salary and fringe benefits and n revision to the ratio of experienced to new workers. These negotiations achieved the MT A suggested savings and reduced the 5 year total to $19,005,506 or an average price per year of $3,801,101. The hours and administrative fees from the prior contract reml:\in unchanged during the tenn of the new contract. However, the negotiated contract value reflects a 6% increase over the prior contract value due primarily to the increase in the July 1, 2013 published adjustment in wage and supplemental benefit changes in the NYS Prevailing Wage Rates. Specifically, rates for an experienced worker increased from $26.63 to $33.54 and from $20.94 to $26.16 for II new worker over the current contract. These prevailing wage rates are effective for the next two years and are reflected in the firm fixed pricing for years 1 and 2 of the new contract. Absent the same prevailing wage rate information for the remaining three years of the contract, years 3, 4 and 5 reflect an estimated increase of2% per year, and will be adjusted annually based on the revised prevailing wage rate schedule released each JUly. Taking all factors into account, the costs associated with this contract are deemed to be fair and reasonable. To ensure proper charging for the headcount associated with this contract, NYSID will use a biometric time clock system at Penn Station and will supply monthly certified payron records that will be reconciled semi-annually. The Business Service Center reviewed the Scope of Work and determined that, due to the unique nature and level of the services required for Penn Station cleaning versus traditional office cleaning, this service was not an appropriate candidate for a multiagency joint procurement. This Contract is suqject to approval by the New York State Office of General Services and the New York State Comptroller. Therefore, the 6 month ratification includes a request for an additional 3 months extension to obtain said approvals. Funding wiil be provided through the thill's Operating Budget. VII-3

61 Schedule C: Competitive Requests for Proposals (Award of Purchase and Public Work Contracts) Staff Summary long Island Ran Road j Itflm Number:.;. Oept &. Ch.pt Head Name: Procurement & Logist Department Head Signature & Date : OlvllSlol"l" Division Head ilia Me: StrategIc Inveatments. Elisa Pleca i Olvision Head Signature & Date I Order To Oat. ApprovaJ Info Other ~~--+_----~---_4 Ll Commlttoo ,2 MTABoard 9118/ ~----~ ~~--~ Order 5 4 I SUMMARY INFORMATION : Vendor Name ContrKt Numbolr i Kawasaki Rail Car, Inc (KRC) reo I Description I Design. manufacture, test and deliver "'9 Rail Cal'S.:..---' il I Total Amount I ~ \ $ > I ContractTerm(lncluding Options,lf any) I 9 Years I _---.,.--=...;::;::... ~! Optlonll{s) Included In Total Amount: 181 Yes 0 No I Renewa!!.. 0 Yas I8l No I Procurement Type I ~ Competitive SoUcltlltlon Typo 0 Non-Competitive _~I!8l RFP 0 Bid 0 Other: rf~u-n-d-ln-9-$~ou~r~c.--'~~ o Operating t8j Capital 0 Federal 0 Other: Narrative 1. PURPOSE: To obtain Board approval to authorize LIRR and MNR to award the M-9 Car Procurement Contract to Kawasaki Rail Car lnc. (K,RC) in an amount noho-exceed $},834, to design, test, furnish and deliver up to 92 LIRR self-powered married pair cars on a base order and up to 584 LIRR and MNR cars (including unpowered cars) on future options. The base order costs include spare parts. special tools. diagnostic test equipment. technical documentation and training. Base order cars, which will replace an equal number ofm3 vehicles. are funded in the Capital Program. Option cars, which would be funded in the approved program, will be used for both Railroads' M-3 car replacements and ridership growth. II. DISCUSSION: The M9 car will be produced as an electric Multiple Unit (EMU) in pair configuration as well as an unpowered single car. The M9 car builds on the success of the M-7 car and M~8 car procurements and continues to modernize the Railroads' fleets. For example, each CSf utilizes AC traction, has unitized HVAC systems for improved reliability and customer comfort, improved diagnostics, larger windows. single leaf car doors for improved reliability, and incorporates automated public address announcements in the car interior and exteriors. Based on the Railroads' evaluation of the technical and price proposals associated with the Best and Final Offers (BAFOs). and evaluation credits described beiow, Kawasaki Rail Car (ukrc") was clearly the highest rated proposer (only slightly below the highest technical rating and KRC offered the lowest unit price and overall price). In June the M9 RFP was advertised in compliance with Public Authorities Law Section 1265~a. Aggressive outreach by the Railroads resulted in 12 separate carbuilders receiving the RFP package. Of these. seven carbuilders fully participated in the vendor qualification discussions, and six were found qualified to submit Price and Technical Proposals. Initial Technical and Price Proposals were received in April 2013 from three out of the qualified si.x as follows: KRC, CAP USA, Inc. ("CAF") and Bombardier Transportation ("ST"). The proposals were evaluated by the Railroads in accordance with the advertised technical and financial criteria. The proposers were invited to provide oral presentations and participate in a series of separate technical reviews. AU three proposers were found qualified and invited to submit Best And Final Offers, which were received 011 August BAFOs were evaluated based on stated criteria including price of base and option cars and related apparatus (80%}, and technical qualifications (20%). KRC provided the most attractive SAFO pricing, The evaluation took the BAFO pricing VII-4

62 , Schedule C: Competitive Requests for Proposals (Award of PurehaS& and Public Work Contracts) Staff Summary Long Island Rail Road and adjusted it based on the probability of the base-cars being awarded (100% probability) and option cars (ranging from 20% to 95% probability) being exercised by both Railroads. The final evaluation also gave credit for higher tedmicai evaluation. improvements offered to Life Cycle Cost, NYS Content and Domestic Steel content. In addition to its favorable pricing, KRC provided an attractive proposal in terms of Domestic Steel content (where it committed to the highest US steel content), and in terms ofnys Content {CAF had the highest proposed NYS content at 36.45%. but KRC committed to 33.5%}. Using this evaluation approach. KRC had the lowest evaluation price while meeting all technical requirements. In post~bafo discussions KRC agreed to incfflise the base car order by 16 cars and reduce the total option quantity to 584 cars. This base order quantity was increased due to the very favorable car pricing offered by KRC. Further. the Railroads negotiated a provision requiring KRC to use commercially reasonable efforts to obtain at least 40% of the generally purchased spare parts as ''Commercial Off-The-Shelf" products or products available from multiple sources. This is a significant improvement over M-7 spare parts sourcing. Additionally, the RFP incorporated new provisions used by NYCT in its car procurement to require the following: KRC must make spare parts available for twenty years after the warranty for the last car has expired. provide "most favored customer pricing," including cost disclosure to the Railroads for their procurement of spare parts in the aftermarket. and finally cap profits at 8%. Optional car features include customer amenities such as assisted listening devices, customer information media screens, and internet access. An option is also included for interoperability between M-9 and future M-9A. m. MlWJ}E INFORMATION: KRC has committed to achieving 4.80% MBE participation and. 3.99% WBE participation as against the total contract value. This is significantly better than the other proposers (Bombardier % and CM! /0.4%). Additionally, this is a significant improvement on prior state-funded car procurements where MIWBE requirements were based on only the NYS Content portion of contracts. Thus. KRC's MIWBE commitments yield a per car average of $278,553, as opposed to M-7. where $62,978 per car was required. The Railroads were able to maximize MIWBE participation working closely with the MT A Department of Diversity and Civil Rights. N. IMPAcr ON FUNDING.;, The Base Contract will be funded from LIRR's approved Capital Program and Options for additional LIRRIMNR cars win be funded in an approved MTA Capital Program. V. AL TERN A TIVM: None. A new solicitation is highly unlikely to result in better pricing. VI. UCOMMENDATION: It is recommended that the Board (i) approve the award of a competitively negotiated contract to KRC in the amount of $1, ,620 to design, furnish and deliver base order cars to LIRR and related noncar items such as spare parts, special tools. diagnostic test equipment. technical documentation and training, and (ii) authorize LIRR and MNR to exercise their respective car and apparatus options pursuant to an M9 contract and consistent with an approved Capital Program. VII-5

63 ..... _....-_._ Schedule C: Competitive Requests for Proposals (Award of Purchase and Public Work Contracts) Staff Summary Long Island Rail Road litem Number: f ~--. I Dept 8. Dept HNd Na:~~~oc--t.l-r.-m-e-nt-&-Log-iat-I-C$-.-D---JHi-l I L.~~tlrn~~~~nruuoo~DmA- ~ ~~, OlvlaJon 1& Division HalO Name: Strategic InvMtmentlil, EII.a PIeCe I Division Head Signature & Date I I ' Ordllr To Date! Board Review. Optlonl(s) f 1 -,-- I.ICommiltoo 9/16/20t3 2 MTAEloerd i I Oreler I 5 4 Executive Vi' W/Gen'1 Counsel & Sec' Approval InfO Other! SUMMARY INFORMATioN I-- I Vendor Name i Sombardler TransPQltatiOl'lllrwensys Contract Numbsr 1 Blil I Description: Positive Train Control Sy*tem Integratol' Contract Term (Including Options, if IIIny) September Oef/!ember 31. 2O"S Indud" In ToWI Amount: i Procure~tTyp. 181 Yes 0 No. =:=1 0 Yes---18,1 No i l:8l Competitive 0 Non-Competitive ---- SollcltBtlon Type 1'82 RFP 0 Bid 0 Other: Funding Source D OperaUng J~ apltal 0 Federal 0 Other: - ---i PURPOSE: To obtain Boord approval to authorize LIRR and MNR (the Railroads) to award contracts to a joint venture of Bombardier Transportatiowlnvensys Rail in the amount, inclusive of phases and optiolls, of $214,420,544 for LIRR and $206, for MNR to design. integrate and furnish Positive Train Control ("PTC") systems necessary to comply with the railroads t obligations as commuter railroads under the Rail Safety Improvement Act of 2008 and the implementing FRA Regulations; and (il) authorize URR and MNR to exercise respective phases and options (e.g. - Post Warranty Software Maintenance, Railway Workers Protection System. etc.) consistent witb approved capital funding in DISkUSSION: PTC is a teclmology that meets the requirements mandated by the 2008 Rail Satety Improvement Act (RSIA) and implementing FRA regulations. MNRILIRR are among 42 railroads and commuter agencies nationwide that are required to implement a PTC system. PTC is capable of preventing train-tq..train collisions, over-speed derailments, and injuries to workers as the result of unauthorized incursions by a train into work zones. The LIRR as lead agency solicited proposals for a System Integrator (SI). Two vendors responded to the RFP issued on Apri19, 2012, as follows: Bombardier Transponation and Invensys Rail (as a joint venture) and Parsons Transportation. Both proposers were found qualified and thus invited to submit technical and price proposals, and thereafter. Best And Final Offers ("SAFOs"). fnvensys Rail initially responded to the RFP on its (lwn behalf; but thereafter joint ventured with Bombardier. The Railroads conducted a series oftechnical and contractual meetings with the proposers to clarify the requirements of the PTC system and ensure that the proposers fully understood the system requirements. The Sl is responsibje to develop, modify, design. deliver, provide. test and commission a new PTe system for each Railroad. The vendor will provide a PTC system interoperable with Amtrak's ACSES U, an FRA Type Approved system. The PTC system is comprised of four subsystems. These include the central back office, wayside. communications and onboard systems, The syst.em provided must comply with FRA regulations in 49 CFR 236, subpart 1. The procurement VII-6

64 Schedule C: Competitive Requests for Proposals (Award of Purchase and Public Work Contracts) Staff Summary I..ong Island Rail Road was structured to require the SI to provide common hardware and software systems that will be installed by the Railroads. This approach pennits economies of scale and assists in reducing costs. The contract will be executed in three phases: the design/engineering pbase, tbe Pilot Phase and the Production Phase. During the design/engineering phase, the SI will develop the necessary hardware and software systems to provide the PTC functionality. The functionality will be demonstrated in two Pilot tests for each railroad. The Pilots require the installation, testing and FRA approval of the hardware and software systems. AU functionality will be verified during the Pilots. Also, all wayside and onboard equipment will be tested and verified. The Production Phase will be based on the successful completion of the Pilot Phase. The main Production Phase consists oftile delivery of the wayside and onboard systems for various segments for installation by the Railroads' work forces. Based on the RailrOads' evaluation of the technical and price proposals associated with the Best and Final Offers (BAFOs), Bombardierllnvensys ("Bombardier") was the highest rated proposer with the lowest overall price and highest rated technical proposal. Bombardier was rated slightly above Parsons in the technical scoring and submitted a substantially lower price. LIRR and MNR filed updates to tbeir respective PTC implementation plans with the FRA and reported that compliance by the currently mandated date of December 2015 was not possible, and advocated for an extension of the deadline until The Railroads wiu make all reasonable efforts to implement PTC at the earliest date possible, The contract includes competitively solicited spare parts provisioning (a 10% level of spares), most favored customer pricing for additional parts and an option for software maintenance services. IMPACT ON FUNDING: Base funding is included in the program (LIRR and Metro-North), and the 2010~2014 Capital Program (LIRR and MNR) and funding for subsequent phases and contract options will be included in the Capital Program (LIRR and MNR). The State of Connecticut will fund $53 million of the cost ofptc on the Metro~North system. DBE: ~ardier/lnvensys has committed to meeting the established DBE goal of 8%. ALTERNATIVES: There are none: PTC is a federal mandate, Through this RFP, the Railroads have obtained favorable pricing from well~ qualified proposers, and award of this contract presents the best opportunity to progress these mandatory requirements in the most timely manner. RECOMMENDATION: It is recommended that the Board (i) approve the award of a competitively negotiated contracts to the joint venture of Bombardier Transportationllnvensys Rail in the amounts of $214,420,544 for LIRR and $206, for MNR (inclusive of phases and options) to design. integrate. and furnish PTC systems necessary to comply with the Railroads' obligations as commuter railroads under the Rail Safety Improvement Act of 2008 and the implementing FRA Regulations: and (ii) authorize LIRR and MNR to exercise respective phases and options consistent with the total contract price as indicated above and the approved Capital funding in 2015*2019. VII-7

65 Schedule E: MisceUaneous Procurement Contracts Staff Summary Long Island Rail Road Item Number: 4 Vendor Nams (& location) BSM Wireless, Inc. (Toronto. Canada) DescrIption I Five (5) Year Lease, with Option for Five (5) additional years to Furnish, Instal! and Maintain an Automatic Vehicle Location Monitoring (AVLM) System Contract Term {Including Options, If any} October 1, September Contract Number I Renewal?, TSD ~Yes ONo Total Amount: FundIng Source $1,929,305 - URR $1,928,450 - MNR $ 307,033 - e&t $4, ~ NTE Optlon(s) included In Total Amount? [)g Yes ONo ~ Operating 0 Capital o Federal 0 Other: Procurement Type Requesting Dept/Dill 8. DeptIDlv Head Name: ~Competitll/e o Non-Competitive Office of Security / R. Murphy, Chief of Security Systems Solicitation Type Contract Manager: i ~RFP OSla o Other: D. Riker, Manager I J. Callis. Contract Specialist Discussion: ~ I LIRR. on behalf of itself: Metro-North, and Bridges and Tunnels requests MT A Board approval to award a five-year competitively negotiated Miscellaneous Procurement Lease Contract to BSM Wireless, Inc. (8SM) in the notto--exceed amount 0[$4,164,788. The contract covers the furnishing, installation, and maintenance of an Automatic Vehicle Location Monitoring (AVLM) System on up to 1420 highway vehicles {650 LlRR, 650 MNR and 120 B&T}. Also included in this request is the option to continue the lease tor an additional five year period. The A VLM System is a l.eased, vendor-hosted software system that uses globally positioned, satellite-based technology to be installed in LIRR, MNR, and B&1"s fleet of highway vehicles including cars, light and heavy duty trucks, high mil vehicles. and tow trucks. The purpose of the AVLM system is to provide (i) immediate vehicle location information covering on~and-offsite travel (ii) improved adherence to maintenance schedules through remote diagnostics, (iii) enhancl;.'<i reporting, including but not limited (0; idling reports, high!low vehicle u.~ge, commutation reporting, and (iv) monitoring of fuel efficiency and safety. In March 2013, the LlRR issued an RFP on behalf of the agencies, for a leased, vendor hosted A VLM system, including all associated engineering, software, arid onboard vehicle hardware, consisting of an electronic black box, antenna, proximity badge reader, security panic alarm, and cabling, wireless data communicatiotl..r;;, maintenance, repairs and training. TIle RFP was advertised ill the New Y grk ost and the New York St te Contract Re:portsrr in March Four (4) kllown sources were sent copies of the RFP with eigilteen (IS) additional companies requesting copies. A PreProposal Conference was held in April 2013, with four proposers attending, Three proposals were received by the May 17, 2013 due date: lnterfleet ($6,897,959), Radio Satellite Integrators ("RSI") ($5,834,110). and BSM Wireless (hbsm") ($4,164,788). The Technical Evaluation Committee (TEC) comprised of representatives from the LIRR. MNR. and B&T evaluated each proposal in accordullce with the following criteria; (i) Technical Proposal and Approach, (ii) Price, (iii) Relevant Experience, and (iv) Other Relevant Matters. The TEC found each proposer to be technically acceptable and within the competitive range. All three proposers made oral presentations in June. Subsequent to tllc presentation, the TEe requested additional information and Best and Final Offers (BAFOs) from each proposer. BSM and RSI's BAFO pricing remained unchanged from.their original proposals, while the Interfleet price increased 6% from $6,897,959 to $7,309,599. Final TEC evaluations determined BSM Wireless offered the best technical solution at the lowest total price for each agency. URR's previous lease with lnterfleet, wa..<i based on a unit price ofs2,733/ullit, 8SM's final (1ffer of $4,164,788 is based on a unit price of $2,968!unit. representing all 8.6% increase since As a result, the TEC unanimously recommended making award of the Joint-Agency contract to BSM in an a~}lount not-to-exceed $4,164,788. Based on competitive solicitation, the price is considered fair and reasonable. BSM, founded in 1999, with corporate headquarters in Toronto, and regional offices in'montreal and Chicago, supports industries in the rail, transportation, oil, gas, and constructions fields. BSM has demonstrated relevam experience through 111e provision of similar AVLM systems installed and maintained for the Union Pacific and Canadian National Railroads. Accordillgly, SSM has been deemed a qualified and responsible proposer. This Contract will be funded by each agencies Operating Funds, VII-8..." _._......_- _.._------_._-_..._---_.-_.._- -_ _----_.

66 ... _._...,... _ Staff Summary New York City Transit i,~~~::~m:~vrs.1w-;~;:~~:.~::::::::ho:~~-j r-:~:7-~"':~d'm... ~~o;:::o:-:;,.~;.;.~;.;..r:,.;;;().:.;r;;;.;,m;.;..a..;.t.;.;!o;.;.:n::.-, ':::C-on~t"'ra-ct~N~u-m-b-e-.r--' I... _ /,"_-l..t'~... ~.,...< ':'!::;"-.- :.':::"~f'~~_'_"""m_j I,. '--, _ ~ ::':"~'; T. \! L ~-..,-.-_----! Intern,,1 ApprtivaJa! Order I.. '....~.p.f>!oval I Or,lSt' l... 'A~~'Ill!... i 1 Materiel v9 5 ' EVP 1&-1/ I?x. ~aw... 6-~~residen{ '.~.._... 3 X ; Cap. Plan. & t3udget 7. L_...-.,;:..-. '4 X OMS '''-- ---i ~:::~:ijon_",~_,_, ",,_,,J.,I_v_ar_io~IJ_S..._. 1!~~r~';~'._(:-:-:_~;:-.)E_m-::e:-r-::9_e_nC._J"......_~ r::.,...:_~!_e~~nt~~~~_j ntruct T,mn {including Options. it any)! J l0ption(s) j~?~~~~.~.amount? 0 yes... ~.~o... 1![~~;~~~~:;:~~~~ N?=j o RFP 0 aid ~ Various '--'-'''~-'''''' Funding SourCil o Operating 0 Capilal 0 Federal 0 Various PURPOSE: To obtain Board ratification for procurement actions conducted under the Presidents' Emergency Declaration for Superstorm Sandy, as well as undel" New YorK State Executive Order No. 99 and its extensions. DISCUSSION: On October 29, 2.0f1, Superstorm Sandy hit the New York metropolitan urea, causing widespread damage to MTA property, equipment. and facilities. The devastating effects of the storm necessitated a series of emergency procurement actions to restore service to the NYC Transit System. On November 1,2013, as permitted by statute and Board guidelines. the Presidents of NYC Transit. MTA Capital Construction, and M1'A Bus Company signed a Declaration of Emergency for Hurricane Sandy (rhe "Presidents' Emergency Dedaration"), recognizing the danger to me, safety, and property caused by t.he storm. The Presidents' Emergency Declaration deemed formal bidding impractical and inappropriate for the flward of contracts, and authorized the awarding of contracts and change orders without prior Board approval using competition to the extent pmctical. A number of pmcurement actions which could not await competitive bidding were undertaken pursuant to the Presidents' Emergency Declaration. These procurement actions included contracts to assess, mitigate, and remedy the effects of flood and wind at passenger stations, bus depots, infrastructure Ilnd other transit facilities, as well as to repair, restore. and/or replace equipment and property at numerous MTA locntions, including track and signal equipment throughout the NYC Transit System, Thereafter, in order to expedite the award of contracts necessary for additiofllli critical repairs, reconstructit)j), rehabilitation, and mitigation work and maximize the use of federal assistance money, Governor Andrew M. Cuomo issued Executive Order No. 99, the Temporary Suspension of Provisions Relating to Transportation Infrastructure Recovery for the State Disaster Emergency ("Executive Order No. 99") on May 17, Exec~ltive Order No. 99 \I;mporarily suspended sections 1209, 1265~a> and 2879{3)(b)(ii) of the PubHc Authorities Law, to the extent that the Chief Executive Officer or Executive Director of the MTA determined it necessary to authorize the award of contmc!s \<vithotlt the use of sealed bids or other prescribed competitive measures. The Executive Order also authorized the addition of work, sites. and time to existing MTA contracts. Executive Order No. 99 was continued by the Governor by Executive Order No. 101, signed June is, by Executive Order No. 109, signed July J5, 2013, and again by Executive Order No, 112. signed September 6, 2013 (collectively, the "Executive Orders"), which cumulatively extended the original Executive Order through September A number of procurement actions were authorized pursuant to the Executive Orders. as the use of sealed bids and other prescribed competitive measures would have been impractical or inapproprime. VIIl-1

67 Staff Summary New York City Transit The Presidents' Emergency Declaralion indicated that Board approval would be sought ill the form of a ratification ii)r those actions that require it, Accordingly, NYC Transit is seeking Board ratification of the procurement actions listed in {he attachod documents. AnaCflment 1 is a summary of [he 'categories of expenditures. Attachment 2 is It list of We procurement actions for,ville!! NYC Transit is seeking ratification. One-hvndred-thirty.nine procurement actions for approximately $19.2 million were authorized under the Presidents' Emergency Declaration, and 19 procurement actions for approximately $106.8 million were authorized under the Executive Orders, for a total of approximately $126.0 million and I S8 procurement actions. Additional S<lmly~relaled procurement tlctions will be awarded in the future, including some which will require appmval or ratificntion by the SMrd. Some are expected to be made pursuant to the Presidents' Emergency Declaration and Executive Orders. Additional Superstorm Sandy-related procurement actions valued at approximately $53.5 million have already been approved by the Board. Under a separate action in Ihis momh's agenda, Board approval is also being sought for six indefinite quantity engineering contracts for an estimnted value of$250 million for Superstonlt Sandy-related projects. Finally. NYC Transit has fiuide a number of Superstorm Sandy related proctireml;)nt actions thut do not require Beard approval. IMPACT ON 'funding: Funding. for these projects was initially provided through MTA and NYC Transit Operating and Capital budgets. Reimbursement is presently being sough! for these costs from the FTA and insurance. RECOMMENDATION~ =fhat"the Board ratify the procurement actions conducted under the Presidents' Emergency Declaration for Supefstorm Sandy, as \\tell as under New York State Executive Order No. 99 and its extensions. VIII~2

68 ..._ _.._ Attachment 1: Super torm Sand~ Procur~ment Acti~uf!lmarY: Categorie$ of Ex:pJ!!lditures PrQ:curem~nt AeJiQ.os Authorized p\a!:.suant to the MT A Presld!!1!S' _~rgenc~. OeclaratJo,n! PrgjUlremen!J! Purchase Contracts Miscellaneous Serviees Public Work Contract Modifications Pr9~lJrement Actions Authorized Pursuant to Exeeutive Orders Purchase Contracts Public Work Contracts Misceflaneous Services Misce)Janeous Procurements Public Work Contract Modifications ! Procurements "'"1$ ValMe $12, $68,040 $6.335, $1"'"'9-,219,441 Y!lill.1l $U $102, $165,000 $95,470 $2,867,500 $106,160,949 Grand Total: 158 $125,980,396 VIII3

69 Attachment 2: Superstorm Sandy Procurement Actions ~.. Procurement Actions Authorized Pursuant to the NIT A Presidents' Emergency' Declaration Purchase Contracts Solicitation a.~rdj)ale Contrag.f Description Contractor Method yahje PO Capacitor Motor 60 HZ. Stock # 03~22~3565 Twinco Informal $148,750 Competition 11/ PO Rebuilt Induction Stop Circuit Controller. Stock 1# 03 M22 Twineo Informal $00, Competition PO T ram stop mechanism. Sloe\<; 1# Twinco Informal $:)4,110 Competition PO Microcnron, Stock 1# Aistom Sale Source $32, PO B2V Kit Rebuilt 4F/4B. Stock # M 1900 Alstom Sote Source $ ""'" PO Switch, M5 UH, Stock 1# Aistom Sole Source $209, PO Switch, M5 R/H, Stock. # A!stom Sole Source $209,993 11/ PO Resistor. Stock Ansaldo Sole Source $ PO Transformer, Stock # Msaldo Sole Source $41, PO Transformer. Stock Aosaldo Sole Source $24, PO M3 Switch Contractor Assembly. Stock # Ansaldo Sole Source $64, PO Valve, SwitCh, Stock 1# a200 Ansaldo Sole Source $162,708 11/ PO SWItch, M-3 RIH. Stock # Ansaldo Sole Source $152,171

70 PO Switch, M3 UH. Stock # Ansaldo Sale Source $ PO Relay, PV250, Rebuilt Stock # Ansa!do Sale Source $76, PO Relay, PN150B, 4FB-2F-18. Stock # 0208~7555 Ansatdo Sote Source $122, PO Relay, DC biased line, PN250B. Stock # 02-08~2000 Ansaldo Sale Source $ PO Resistor Stock # Ansaldo Sale Source $17, PO M3 Switch Motor Kit Stock # Artsaldo Sale Source $102, PO Magnet, 400 Ohm. Stock # Ansaldo Sale Source $ PO ReSistor, Ohm-4B. Stock # Ansaldo Sale Source $33,932 ::; PO RD Relay Cover, Stock # Ansaldo Sale Source $22,000 T (J't PO Rectifier, 25VDC with Test Posts. Stock # Aistom Sale Source $20, flO12 PO ReSIstor, 12 Ohm A & B. Stock # PHW Informal $16,500 Competition PO Bearing, Jeweled B2V Stock # Atstom Sale Source $19, PO Rectifier, 12.SVOC with Test Posts. Stock # Alstom Sole Source S30, PO S087 Impedance. Balancing Reactor. Stock # Aistom Sale Source $39, PO $089 Transformer, Type V1 Matching. Stock # Aistom Sole Source $50, PO Transformer, Type U, Size 1 Stock it Aistom Sole Source 5280, PO Pole Changer - M5 Switch. Stock II Alstom Soje Source $303,279

71 PO Circuit Breaker Stock # Twinco Informal $ Competition PO Relay, B2V 110V 60 Cycle 2F-2B. Stock # Alstom Informal $497,392 Competition PO Air Stop Circuit Controller 6/4. Stock # Ansaldo Sole Source $82, f PO Protector IV WheeliRaillnterface Lubrication System lb Foster Informal $48,750 Competition P Copper Lug, Stock # Erico Informal $23,200 Competition 1/14/2013 PO PlJrchase of Combination On-Site Office/Storage Pac-Van Informal $27,250 Container for Rockaway Shuttle Competition PO Arc Proofing Tape. Stock # Greenvale Informal $ Electric Competition PO Tape Sealant Stock # Mu!ti~Source Informal $41,820 ElectrICal Competition ::; Corp, PO Security Storage Box Stock # 24~ Colonial Informal $17,640 T m Hardware Competttlon 2I9120i3 PO Hydraulic Crimp Tools Cembre Informal $120,948 Competition PO Messenger Wire. Stock. # 61~ Laos & Coo Informal $130,000 Competition 2/15/2013 PO MCM cable, Stock # Montana Informal $70,665 Datacom Competition 2121/2013 PO Strap, hanger lashing, for messenger wire, Stock # 33 Schwing Informal $281, Electric Competition PO MCM cable Stock # Drake Informal $2, Competition m1/2013 PO MCM cable. Stock # Draka Informal $834,593 Competition PO Messenger wire for Rockaway cable project Stock # 61- Acoco Informal $57, Industrial Competition PaCkaging

72 PO Stanley Padlocks Doorware Informal $ Competition PO " Rail Bond. Stock # Erica Informal $209,336 Competition PO " Rail Bond. Stock # Erico Informal $21,(364 Competition PO &J Cartridge. Stock # 01~ Railtech Informal $16,211 Saute! Competition PO Copper lug. Stock # Erica Informal $94,598 Competition PO T..g Welder. Stock # Railtech Informal $15,714 Boutet Competition PO Heater Cable. Stock # Lawrence Informal $238,000 LowyAssoc Competition PO pair cabfe. Stock # Monroe Cable Informal $ Competition.. ::; 2/ PO pair cable. Stock # Monroe Cable Informal Competition $ """ PO 6Q Two conductor cable. Stock # Monroe Cable Informal $438,000 Competition PO Q5 Two conductor cable. Stock # Monroe Cable Informal $324,120 Competition PO Knife Switches AMP, 600 volts. Stock. # Selco Informal $114, Competition 3tt12013 PO Pair Gable. Stock # Monroe Cable Informal $ Competition 311/2013 PO Channel. Stock # RTR Tech Informal $31,200 Competition 3/ PO Pair Cable Stock # Monroe Cable Informal $22,320 Competition PO Rail Bond Terminal. Stock # Cembre Informal $24,3B5 Competition 3/8/2Q13 PO Rail Bond KIt Stock # Cembre Informal $27,575 Competltion

73 3/ PO Fiber Cable Stock # f,1ontana Informal $99,900 Datacom Competition PO 6Q MCM cable, Stock # Southwire Infortnal $ Competition PO Gas Powered Drills Cembre Informal $ Competition PO Metal Clad Cable, Connectors and Enclosures Adams Electric Informal $ Competition PO MCM cable. Stock #. 20-0&.8680 SOuthwjre Informal $ Competition 5/ PO Screw Spike, Stock # Yangtze Informal $ Railroad Competition PO Tropical Hardwood Tie Blocks. 24", Stock #; WilhamG, Informal S280,800 Moore & Son Competition 5/ PO Tropical Hardwood Ties, 9'6" Stock 1# William G~ Informal $123,741 Moore & Son Competition ::; PO Screw Spike. Stock # OHM-0527 A&K Railroad Informal $40,608.. Materials Competition 0:> 5/ PO Fiber Cable. Stock # Montana Informal $299,700 Qstacom Competition PO Fiberglass Cable Racking. Stock #I Resolite Informal $26,497 Polyglass Competition 6128/2013 PO FIre Dept Sound Power Boxes MKJComm. Informal $56,150 Competition PO ON22B Relays (Non-inventory) AnSfl!do' Sole Source 531,450 Total: $12,815,875 MiscellaneQus Services Solicitation AWgGLQE!.~ kontra,g# Description Cgntractor Metbod yalye PO Rail Grinding Services Advanced Rail Informal $68,040 Management Competition Tota!: $68,040

74 Public Waft( Contra};!l.M.qgl!H::ations 9JiQitatipn fi Dale CQntricL1! DescriptiOn QQntrr!~tor _~thq.q Value 1130/2013 A-J6136 AWO 7: Flood prevention during Hurricane Sandy AD Tech Change Order $ Enterprises 1116/2012 $ AWO 141: Broad Channel: Assess damages. mobilize, TC ElectriC Change Order $49,500 survey. prepare scope, Corp, 11/ $ AWO 142: Rockaway Line: Assess damages, mobilize. Te Electric Change Order $ survey, prepare scope. Corp, $ AWO 143:Broad Channel: Clean signal equipment TC Electric Change Order $49,500 rooms. remove damaged equipment & deliver to NYCT Corp signal shop, S AWO 145: Broad Channel' Assess damages, mobilize, Te ElectriC Change Order $ survey. prepare scope. Corp AWO 146: Rockaway line: Assess damages. mobilize. TC Electric Change Order $49,500 survey, prepare scope. Corp, :::; AWO 27~ South Ferry: Assess damages, mobilize. lkcomstock Change Order $49,500.. survey, prepare scope, co 11/ $ AWO 29' Coney Island: Assess damages, mobilize, lk Comstock Change Order $49,500 survey, prepare scope /2012 S32742 AWO 30' 50t)lh Rf.;mova! of damaged equipment LK Comstock Change Order $49,500 Repair equipment and perform tests as needed AWO 31: Coney Island: Removal of damaged LKComstock Ch;:mge Order $49.,500 equipment. repair equipment perform tests as needed $ AWO 32, Coney island: Assess damages, mobilize, LKComstock Change Order $49,500 survey, prepare scope, removal, testing, & repair as needed. Priority items 2 & 3. 11{16J AWO 33. Coney Island: Assess damages, mobilize, lk Comstock Change Order $ survey, prepare scope, removal. testing, & repair as needed. Priority items 4.5 & S AWO 34: Coney Island: Cleaning. overhaul. testmg of 10 LKComstock Change Order $249,500 switch machines. remove motors, and cleaning of 90 switch machines, replacement of 7 stop machines AWO 35. Coney Island: Overhaul 25 existing track LK Comstock: Change Order $166,000 switches and appurtenances fflcluding installation of replacement switch motors

75 .. :s;... 6n /3/ AWO 36: Coney Island: Additional cleaning of switch lk Comstock Change Order $89,000 machines and junction boxes. Provide office trailer for 6 months for T A personnel. 1/3/2013 S AWO 37: Coney Island: Install switch motars and place LK Comstock Change Order $170,520 in-service 28 track switches. 119/2013 S AWO 38: Coney Island Install switch motors and place LKComstock Change Order $182,000 in-service additional 30 track switches. 1/ $ AWO 39: Coney Island: Install switch motors and place lkcomstock Change Order $73,000 in-service additional 12 track switches S AWO 40: Coney Island: Install switch machine cables LK Comstock Change Order $55,000 and conduits. Reinstall one Stop Machine. 1(31/2013 S AWO 41: Coney Island: Install switch motors and place lk Comstock Change Order $60,900 irh3ervice additional 10 track switches AWO 42: South Ferry: Technical support by for Gap lk Comstock Change Order $49,500 fillers. 4124/2013 S AWO 45: South Ferry: Furnish replacement parts for gap lk Comstock Change Order $89,086 fillers AWO 48: South Ferry Demobilization of Tools, Materials, lk Comstock Change Order $27,000 and Facilities /2012 S AWO 5: Rockaway line: Meggering and continuity TC Electric Change Order $234,000 testing of cables. Corp S AWO 6: Rockaway line: Furnish & Install new local TC Electric Change Order $165,000 cables at each home signal locations F3 to F5. Corp S AWO 7: Rockaway line: Furnish & Install new local TC Electric Change Order $170,000 cables at each automatic signal locations F3 & F4. Corp /2012 S AWO 8: Rockaway Line: Furnish & Install new locaf TC Electric Change Order $ cables at each switch machine locations. Corp /2012 S AWO 9: Rockaway Line: Furnish new home cables to TC E.lectric Change Order $238,000 replace damaged from case to case or case to relay Corp. room. 1117/2013 S AWO 10: Rockaway Line: Furnish & install new cables TC Electric Change Order $188,600 at each home signal locations F6 to F12. Corp. 1/ S AWO 11: Rockaway Une: Furnish & Install new cables TC Electric Change Order $ at each automatic Signal locations F6 to F 12. Corp.

76 1/ S~32761 AWO 12 Rockaway Lm6 Purchase of compressor Te Electnc Change Order $182,760 equipment Corp. 1l17l AWO 13 Rockaway Line' Removi) amj n?'!f\stall 9 switch TC Electric Change Order S machines. Corp, 1/15/ AWO 14, Hockaway Une: Purchase additional 500 MCM Te Electric Change Order $ EPR Cable Corp S32761 AWO 15 Rockaway Une: Restore sf:wice to signal TC Electric Change Order $173,000 compressor eqpt Corp~ 2/ S AWO 16: Rockaway line: Restore control panel at TC Electric Change Order $150,000 towel Corp, $ AWO 17' Rockaway Une Restore and install circuit TC Electric Change Order $196,500 breakers in EDRs, EPR and Signal Power Room Corp $32761 AWO 18: Rockaway Une Provide safety coverage for TC Electric Change Order $ five months and job site clean-up. Corp 2125/2013 S AWO 19: Rockaway Une: Provide full time signal TC Electric Change Order 5107,500 engineering coverage for 4 months restoration work Corp. ::=; 2f S AWO 21: Rockaway LIne: Restore and install damaged TC Electric Change Order $32,000 T MCM signal power feeder cable. Corp S AWO 22' Rockaway Line: InstaHation of new messenger TC Electric Change Order 565,000 cable, Corp. 4/ AWO 23: Rockaway Une: Restoration of line cables F3- TC Electric Change Order $218,500 8S8 CIH Corp S32761 AWO 24. Rockaway Une: Restoration of Hne cables F3- TC Electnc Change Order $33, CIH. Corp. 4{17!2013 S AWO 25 ROCkaway Une Restoration of line cables F3- TC Electric Change Order $ CIH. Corp 4117/20'3 S32761 AWO 26: Rockaway Une: Restoration of line cables F3- TC Electric Change Order S89,OOO 849CIH Corp. 4/ $ AWO 27 Rockaway Lme. Restoration of line cables F6 TC Electric Change Order $ CIH. Corp, 4/ $ AWe 28: Rockaway Line Restoration of line cables F9- TC ElectriC Change Order $ CIH Corp 4{ S AWe 30 Rockaway Line' Restor3tionand Installation of TC Electric Change Order $104,790 new signal hne cat'les in F30837 CIH Corp

77 AWO 31. Rockaway Line Restoration and installation of TC Electric Change Order $ readjusted signal cables at F4-854, FOMSS1, and FlO- Corp /17/2013 S"32761 AWO 32 RoCkEl\va}' Une: Provide bar chart CPM TC Electric Change Order $2,510 schedule and three months updates. Corp AWO 33~ Rockaway Une: Replace 10-conductorcable TC Electric Change Order $5,500 for EDR and compressor room. Corp 5! $ AWO 35: Rockaway Line: Disconnect and re-termlnate TC Electric Change Order 55,600 line cables. Corp. 5/ S~32761 AWe) 36 Rockaway line: Replace damaged wires in TC Electric Change Order $45,000 conault fer \!ghting. Corp. 6/ AWO Rockaway Une: Restorationfinstallation of TC Electric Change Order 5188,700 signal cables at F FS-8S2, F6~861. F and Corp 101 and 107 switches. 6/11/2013 S~32761 AWO 38: Rockaway Une: Restoration/installation of TC Electric Change Order $ signal cables at f'3-861, F F and F Corp. switches. 5/ AWO 40 Rockaway Line: Perform breakdown testing, TC Electric Change Order $ operating and in-service testing of signa! track circuits Corp, $ and equipment ->. 5/ $ AWO 41: Rockaway Line: RestorationlinstaUation of Te Electnc Change Order N damaged cables at F3-837 and F4-830 CIH. Corp. $31,000 S128f2013 S~32761 AWO 42: Rockaway Une: Replace damaged cable trays TC Electric Change Order $49,000 at Seasicie6eac:hlOSth SI and Piayland-8each 90th St. Corp. 6112f2013 S AWO 43: Rockaway Line: Replace damaged generator TC Electric Change Order $180,600 and associated equipment Corp S AWO 44: Rockaway Line: Replace damaged signal code TC Electnc Change Order $249,500 cable between Rockaway Line and Hamme!s Wye Relay Corp Rooms, 6/ AWO 45: Rockaway Line' Replace damaged stop TC Electric Change Order $53,000 and slop machines at 23 locations, ('..orp. 7f18/2013 $ AWO 49: Rockaway Une: Replace next train signs and TC Electric Change Order $10,630 annunciator. Corp S AWO 50: Rockaway Une: Plumbing work at compressor TC Electric Change Order $6,316 rooms. Corp, Total: $6,335,532

78 Total Authorized Pursuant to the MTA Presidents' Emergency Declaration: $19, Procurement Actions Authorized Pursuant to Executive Orders Purchase Contracts Award Solicitation Date Contract # Description Contractor Method y~lue PO Emergency Alarms for Greenpoint Tube Meridian Informal $242, Assoc. Co~pet!tion 5/ PO Fiberglass ExtenSiOn. Stock # Delta Informal $65, Composites Competition 5f PO Plate Shim, RFA, 1/4". Stock # Edsal Machine Informa! $51, Products Competition 5/ PO Plate Shim, RF-A, 1/8", Stock # Edsel Machine Informal $40,950 :::; Products Competition ;-... 6/ PO Fire Hoses J.G.s' Informal $'154,950 CJ.) Enterpnses Competition 715/2013 PO Rebuild Kit Stock # Ansaldo Sale Source $79, /2013 PO Rack, with Piston, Stock # Ansaldo Sole Source $34, / PO Complete Circuit Cootrollers. Stock # Ansaldo Sole Source $ / PO Cover & Guide for Lock Rod. Stock # Ansaldo Sole Source $ PO M5 Relay. Stock # Aistom Sole Source $45, /15/2013 PO Cut-out M3 Assembly, Stock # Ansaldo Sole Source $21, I16t2013 PO PN 152-$0 Relay Stock # Ansaldo Sole Source $44, _~_~~~~_~ -1

79 7/25/2Q13 PO 130 Ohms DC Valve. Stock # Ansaldo Sole Source $104, /25/2013 PO PV250 Rela.y. Stock # Ansaldo Sole Source $89, /29/2013 PO AC 60 Cycle Type B2V Track Retay. Stock # Aistom SoleSoufce $158, Total: $1, Public Work Award SOlicitation Date Contract # Description Contractor Method Value 7/ P Montague Tubes: Rehabilitation of the Montague Tubes JTJ Sealed Sid $102,443,000 Contracting Total: $102,443,000 $.; T....j:>. Miscellaneous Services Award SoliCitation Q.gi~ Contract # Description Contractor M5:.t!1Q!;! yalue 6118/2013 PO Repair of Four Armored Vehicles for NYCT Department Diehl a. Sons Informal $165, of Buses. Competition Total: S'65.000

80 Miscellaneous Procurements Award Date 7/ Contract # PO DescriQtion Rental of two pumps for pump cars Contractor Goodwin Solicitation Method Informal Competition Total: Value $95,470 $95,410 Public Work Contract Modif~atiolis 8c~~[Q Date Contract # &32742 Description AWO 54: GreenpOIl'lt Tubes: Replace Signa! Equipment, Cables and Power Supply COntractor LKComstock Solicitation Method Competitive Change Order Value $2,867,500 Total: $2,867,500 Total Authorized Pursuant to Exeeutlve Orders: $106,760,949 Grand Total: $125, ~~~~ ~~~~~~~~~~~~ A

81 Schedule G~ Miscellaneous Service Contracts D NewVork CltyTraosit Item Number: 3 Vl!ntlor Name (& Location) NYS Industries for the Disabled (New York, NY) Description Comprehell$ivemai! services Contra<;t Term (including Options, if any} Five years Optionls) included in Total Amount? Procurement Type o Competitive Non -competitive : Contract iiium~r RFQ# Total Amount:. Funding Source. Renewal? Yes 0 No!8l Operating 0 Capital 0 Federal 0 Other:, Division of Materiel. Stephen 1\<1. Plochochi $1,711,075 (Est) I8l Other: Preferred Source I)lSCUSSION: This contract is for comprehensive mail related services for NYC Transit. This contract will be awarded in accordance with Section 162 of the New York State Finance Law, pursuant to which NYC Transi! is required to purchase desi~nated services from preferred sources. This contract provides for comprl!nenslv refated services from Federation of Employment and Guidance Service's (FEGS). which is represented by the NYS Industries for the Disabled (NYSlD), a cel1illed preferred source.!'he services provided under this contract include ail work, labor and materials required to suppon NYC Transit's centralll1ni! mom opcf<hions located at 130 livingston Street, Brooklyn, New York, The scope of work includes processing outbound postal and interoffice mail, sorting of inbound postal and intemflice mail. inspecting inbound postal mail and inbound vendor deliverit!s. various internal and inter-building delivery services. and miscellaneous clerical and rec.ord keeping services related to the contract. This contract also provides for certain mail delivery to and Irom the Post OfJice and to a lesser extent, messenger service for specl",l deliveries to field locations within the five boroughs. NYSID submitted a final price proposal of$1,7) 1,075 for this five-year contract which represents a reduction of$396,094 or nul% from NYSI D's initi.al proposal of $2.! 07,! 69. Rerluctions were obrained through negotiations that resulted in FEGS readjusting its three! labor and overhead fates. An overall price comparison between NYSlI)'s final pricing fof the term of this colltracr is llpproximatciy 3.3% lower than that of the Ye!1f 5 pricing under NYSID's previous COl1lraCl No t\fkf a thorough review of NYSID's pricing, an analysis conducted by MTA Audit Services, ll.nd the price reduction obtain~d, been determined that the final price Is fair aad reasonable and in compliance with the State Finance Law. This col1lrac\ is subject to approval by the Oft1ce oflne NYS Comptroller (OSC). As required by Sectiol1 t62 ofthe New York Sture Finance Law, the pricing for this contract is currently under review by Ihe NYS Office of Gener<ll Services (OOS). This contraci can not be submitted 1.0 the ose unti/lhe OOS approval has been obtained. Award will be made upon receipt ofosc approval. it hils VIlI-16

82 _ Staff Summary New York City Transit Peg(; 1011!'URPOSE: To obtain Board approval to award six contracts for Indefinite Quantity (lq) Federally funded Engineering Services. fof SupelOllorm Sandy-Related Repair and Resiliency Projects on It competitive basis: CM1530 to AECOM USA. Inc. (AECOM), CMIS31 w Jacvb~ CIvil Consultants lnc. (JACOBS), CM1532 to Parsons Brinckernoff, Inc. (PB), em-is33 to Stantec Cunsulting Services Inc (STANTEC). CM1534 to T.Y. Lin lntemalionalihatch Molt MacDonald, JV (T,Y. LIN), nnd CM1535 to URS CorpoTillion (URS) Under these contracts, selected consultants compete for specific projects on II task order basis. The contract.) are "zero doilar" based Willi n(} minimum guarantee of nny assignments. The aggregate pool for all six contracts is for an stimated amount 01"$250 million for a 60 month duration. D1SClJSSJOt!: The unforeseen and devlls([ning effects of SuperS{Ofm Sandy on October 29, 2012 and thereafter have necellsitmed a series of emergency Il'$cssments. repairs, and purchases to restore service as well as provide resiliency to the NYCT system. The selected consult<li1ls wii! provide indefinite quantities design, consultant construction management and inspection services on an as needed basis. 011 various NYCT Sandy-related projects" Services include feasibility studies, design work, pre-collsttuction and construction phrtsc support and duse:out support of various ongoing NYCT Sandy-related Projects. Consultants <Ire given opportunities to submit proposal~ to compere for jndividuallask orders, which are issued after review, evaluation and completion ofnegotiarions of consultants' task Qrder proposflls. "fhe consultants were selected via a qualiticihions based 2-step procurement process established by the F'ederal Brooks Act. tinder the Brooks Act, contracts for AlE services nre negolinted with Ihe AlE team that is detennined 10 be the most technically quaiil1ed by rhl) Sdection Committee (SC) after evalualion of the consultant's qualifications and technical proposals. Price is not a considermi,')n in the "election or nmking, COost proposals remain scaled until the conclusion of the technical evaluations. 01'11)' the cost proposal for the nll>!ll preferred proposer is opened and considered for neg.otiations. Since six llw<lrds were planned under this REP, negotiations were condllcted with the six mosl teclmical!y preferred fimb. Slep I -.In response to NYCT's advcniscmcnl. 12 embmissions consisting QfTe;:,hnicnl Proposals including a Lener of Interest, Schedule J Responsibility QUestiOonnaire, Federal SF 330 Conn and a qualiflcation statement were received. The SC reviewed the subrni.si(m$ lind recommended the following tel, finns to move on \0 Step 2: AECOM. JACOBS. I'B, STANTEC, TY, UN, URS, Hcnningson Durham <'<:. Richardson Architecture and Engineering. P.C. {HDR}, Hnks EngIneers, Architects and Land Surveyors, P.CJWeidlinger ASSOCiates. ilk. JV (HAKSiWElDLiNGER). FST Engineers. Inc.lTeClonic Engineering ;ind Surveying Consultants, P.C., JV (FSTrTECTONIC). I WI International, Inc.lSVSTRA Engineering. Inc., JV (HlLLlSYSTRA), The nnns not selected, Burns and Roe Enterprises, Inc.. ani! ShilW Environmental & InfraSTructure Engineering,. P.CJDewberry Eng,ineers Inc., JV lucked pertinent l100d mitigation experi~m~e f<:'ii:vant to Sandy-related work, Step 2 - Technical Proposals from the shortlisted linns were reviewed. Following SC review and evaluation. AECOM, JACOBS. }'B. STANTEC, 1'. Y. UN, and URS were selected as the six most preferred. The fimls were d1\.'5cn based (1I1 their superior te.chlllcal qualifications as demonstrdled by rheir local and global experience involving hydrology. asst:\ hardening, and tlood mitigation llnd protection techniques" VIII-17

83 ..... _..._._..._ ' Staff Surnmary New York CIty Tran$lt P,,!,"! \.{<l The selecl.i..'(\ CQnsuharHs have extensive experience suppqrting rail transit projects and have prvvided similar services to the MTA and oum slate and p\lolic agencies. The firltis noi recommended (I)r negotiluilln5, HOR. HAKS!WEIPLlNGER. FSTffl!CTONIC, and HILLISYSTRA met the minimum requirements oflhi'! RFP, but tocked lh-e udequlile flood miligatkm cx:~fience, After being selected and Ilpprovtd for price negotitltions, the cost proposals tor lne six l{lp.tlloked firms were open d lmd evaluated. To ensure It f;lir evaluati~ll1, the RFf> required that pn1posals be based on II Ihod dislrib\ltion of hours am.! a 1h:ed amount for OlIt.of-PQcket costs. Initial cost proposals were based upon 3! 7,000 hours as provid~d in the RFP and w;:1"e as follows: S45,622,701 for ABeOM, S42.546,929 for JAC'OBS. $42,940,012 tor PS, $48,035,754 for STANTeC, S50, 116,870 for T.Y. UN. ano $46,456,654 tor URS. The engineer's estimate was $41.584,675. Negotiations focused on l-abor rates. overhead tlnd tees. t>es! and J'rnul OtTers (BAFO) were Tl:eeived as fullows and found 10 be within a competitive rllnge: $41,617,307 for AECOM. 537, for JACOBS, $ for rb. $42,696,114 fur STANTEC, $40,126,433 for T.Y, UN, and 538,226,867 for VRS. The Fixed Fee was nllgotiatcd at or below 8% consistent with the in house estimate BAfO pdc.log is consistent with labor rdtes on e;.;isting incumbent contracts lind is binding for the term ofthe c{,"!ract. AL::COl\.!'s 13tWO was $ (O.O&%) mare than the etlgineer's estimate and represents a reducti'on of $4,005,394 from its initial proposul. JACOBS' BAPO was $4.2)).281 (I 0.2%) less than the engint'er's estimate and represcllis a reduction (Irs,. 19S,S3S from its inilial proposal I'U's BAFO was $532,339 (LJ%) more (han the enfs'nctr's eslimatclllnd represcn\~!i reduction of $"(122,998 from its inilial propo,al. STi\NTEC'. BAPO WlIS $1,112,039 \2.7%) more than 1m: enginecr'j; estimate and represents a n:duclion ofss,3)9.tho from its initial propos(ll T.Y. I.lN'3 BAPO was $858-,242 r,u%) less thai! the estimate llnd represents a reduction of $9,390,437 from its initial prop llal. URS' (lafo was S3.357,aOg (tu%) less than the engineer's estimate and representsll reduction ofs frol'l1 il~ initial proposal. Background inveslig<ltions!lnd material revealed thilt three of the :relected consuhlli!!s., JACOBS, Sf ANTF.C and T.Y. UN, di~c!os1!d no "~igl1ificanl adverse inftlrmatiuf1" (SAl) within the meaning of Ihc All Agency Responsibility (iuidelme!&. AECOM, PB and URS hat! disclosed infurmati-oi1 thm WIIS considered SAl. bui 5tlbs'""lucnrl), re,dved MT A Mllllagement approval, Accordingly, all finns werc found fully respon.ible for award. Pr\.'.vious work. of the selected con:;uhui1l for Ihc MT A or affiliates: All of the consultants have prior \lxperiel1ce on NYC Transit IQ contracts. a~ either prime or subcqnsulfants. M/WiItlllt INFORMATION: The DC!,Hrtmcnll.lfDivl.'f1tity and Ci... n R.ights has established \l Disadvantaged Business!:::nlerprise {DBE) goal of 17% and has approved the Consultants' utilil.ation plan.. In consideration of the scl~'(:led Consultunts' past M/WiDSE perforrnllnco;, AECOM. Pl3 and URS achieved their M/W/OBF. goals on previous" MTA (;onrrncts. An assessment of JACOBS. STANTEC and l'.y. UN's MiWJDBE performance cannot be determined at thj$ time because they have not completed any MTA comracts.!1~:wacton FUNOIN$j! This conlract wiij be funded wilh 100% Fl.l&:ral funds provided on II hlsk order basis by the indivldual capital project requiring these ~er\'ices. Task order! will no! be issued unlil approved WAR Certi!icales ate received. ALTF:RNATIVES: None. NYC Tr:m,jl lllck~ available inhou~e technical personnel!o perform tne specific tasks required lor {his contract CArrTAl, PROGRAM REPORTlN!2: Thls contrnct has been revicwt,d for,:ompliancu willi the requirements oftne 1986 kgisllltioll Applicable to Capital Contrect Awards and the flc<:cssury inputs hayc been secured from the responsible tilnclional departments. RECOMM N06 TtONj!\ is rel;ommendcd 0,;" the Board llppr()vc award or six 10 Fcdcrlll1y funded ElIgil1eeriitg Service contr<1c{s for Supcmorm Sandy-Related Repnir and ResilieOl:Y projects On a competitive basis. VIIIi8

84 Schedule K: Ratification of Completed Procurement Actions Capital Construction Item Number: Vendor Name (8o Locatlon) Parsons Brinckerhoff, Inc. (New York, Ny) Deseription ---"'-'--' Consultant Construction Management Services for the Second Avenue: Subway Project. Phase I." ".-.~.--: ~ _, I Contract Term (lnclud.ing Options, any)! May December Op1ionls) included in Total Amount?.<".. -~. --.-'"~-.~~ ~ Procurement TyPlt Competitive Non-competitive SOlicItation Ty~ ORFP Bid t8l Other: Modification FundIng Source o Operating 0 Capital o Federal Other; Requesting OeptlOlv & Dept/Dlv Head Name: MT A Cap~la! Construction, Dr. Mi(;haei Horodniceanu._ DISCUSSION:.<"".._..._._...,.._._._... _._ Contract Numb",. AWOJModification II CM Original Amol.mt: $ 80,940,647 Prior Modificatlons: $ 5,732,026 Prior Budgetary Im;rea$&s: $ o Current Amount: $ 86, ,~.""'.,"'~«... "'~--...,,~-, "~<~ ; This, Request; $28,939,662 ~~O':".:.his_~equest to Curt$llt Al'Ilo~:._nt_;...,.}!4 ~.,. % of liiiotiifi(;ations (Including This Requ&at) to Orl91mll Amount! 42.8% This partially retroactive modification is for additional Consultant Construction Management (CCM) services on Phase 1 of the Second Avenue Suoway (SAS) Project COnlraG! CMl ng was awurded 10 Parsons Brinckerhoff, Inc, (PB) on May 3 I, Initially six contracts were planned for the construction of Phase I of the SAS project It was subsequently decided by MTACC to increase the number of contracts from Sl;.. 10 ten in order to provide for smalier ~onslrlj~tion packages which would in turn enhance competition and receive more favorable pricing. AI!!t;ll constfllction contracts have been awarded and Ihe p.roject is on schedule. As a result of the repackaging, MTACC has enjoyed (iggregate hid cost sllviogs significantly greater th<lnlhc cost of the additional CCM work required. Under this modification, PB will provide additional CCM services as a result of the increased number of construction contracts, the Increase in the level of effort associated with various CCM tasks, and additional staffing for expanded and new scope requirement, which were not anticipated In the original contract The basic CCM services under this contract include the monitoring and mllnllging of ali construction related activities such as the coordination of work with contl'actors and other agencies. conducting insp.ections and reporting non-conformances, ensuring adherence to environmental specltications. re'.'iewing COl1!ractor submittals and performing various administrative, budgetjpaymen! and project SCheduling services, In addilion \Q the expanded CCM services, this modification will also increase the staffing support required by the SAS project in ne\,v!y identitied areas. The implementation of one Interface Manage,f and four hlterface Coordinators is required to work as liais()l)s uetween the station contracts. This task was originally perfomled by the Construction Manager and his staff; however, the increased qu,'1!1tity of t'onttticts and the additional!evel of complexity associated with coordinating. these additional contracts has necessitated additional $upport to ensure that transitions are made effectively. efficiently!u1d successfully. The SAS project also requires a Safei)' and Security Cerlitlcation Manag.er newly mllndaled by the FTA. This will enable the SAS project \0 obtain a 'Safety and Security Certification' for PiMSc! The IOlal projected effort under this modification averages approximately 102 Full Time Equivalents (1''1'1::$) (16 are for new positions \'vilh! I having already been put in place by MTACC direction or prior modifications). These services are projected to be required through construct jon completion. forecast for December MT ACe will ie-evaluate its staffing requirements prior 10 the DecembGr completion date of this cuntrnct, as by this time, more definitive infqrmation wilt be ~!Vailable to accurarely assess the additional CCM funds required as projects progress, Based on the current spend rate, Ihe contrllcl budget will be exhausted by October I >3'$ final proposal, based on 15 monl!)s ljf stafnllg supporr from October 2013 through Decembe.1' 2014, was $28,939,662. MTACC's revised estimate was $28, The pricing reflects existing contract rates" The final price is considered I1tir and reasonable. VIII-19

85 .~.-. Staff Summary New York City Transit SUMMARY!NFORMATION vandor Name f RFP AuthoriZing Resolution PeS'cription.._._.. COl1trlKt Number R3425i..-l. f Purchase of Two (2) Vacuum Train$c 'fotal Amount TSD Coniia-c-,-t-=re-r-m-{-!I1-C-lu...,d-In-g-O~ilfanyr-~------'!TaD Approval,.?td+J:. Materiel 5 Law 6. s,u~~et.~ 7 8 Renewal? Procurement Type t8l Competitive 0 Non,c9.,r:!!.f'~.::e~tj::.tI,.:;.ve:::- Solicitation Type t8l RFP 0 Bid Other:...,,,,,~... #... -,,-,,.,,,--«''''-''''''''<>'~'---'~."~, Funding Source,~ ~-=~~ D Operating cgj Capital ~ ~~~~~~ Federal 0 Other: --J rjj RPOS E; 1'0 request that the Board ndopt a resolution declaring that competitive bidding is impractical or inappropriate lbr the procurement of two vacuum trains, and that it is in the public interest to issue 11 competitive request for proposals (RFf') pursuant to Subdivision 9(t) of Section 1209 of the Pub tic A tlthorities Law.!2.lSCU,SSlON: Subdivision 9(t) of Section 1209 of the Public AUlhorities Law permits the Board to adopt a resolution dec luring that competitive bidding is impmctical or inappropriate because it is in the public interest to award a contract pursuant It) a process of competitive requests for proposals. NYC Transit is desirous of utilizing slich a procedure with respec1 to the procurement of these two VLiet/urn trains. A vacuum train is a piece of track bed cleaning equipment which consists (lfan operator cab, selfpowered vacuuming <lnd filtering apparatus and storage space for the debris C{)IIc:cteo. In order to maximize reliability the new vacuum Irums will not be self-propelled andwiil Iherefore require a NYC Transit locomotive to move them ill either direction through the NYC Transit system. The vacuum trains arc used ill the Department of Subways' Division on'rack operations to remove debris from the track bed which can cause safety issues and/of delays in service. The two n<::\\1 vacuum trains will replace the two existing selfpmpelted vacuum lrains which began service in l(}n and ~OOO. The new vacuum tmins wm employ improved debris agitation and suction systems to improve vacuuming efficiency in a single pass. The purchase of these two vacuum trains will enable NYC Transit to increase the U!ll()ullI t,)f track bed to be cleaned and maximize thc dfectiveness of eliminating debris during the designated time in which the lmek cleaning operations occur. NYC Transit will be utilizing a perfol1nance spl'cification for this solicitation. Prospective proposers have advised tfmt vae.lililll trains will have to be custom designed to mcet NYC Transit's tunnel, third rail and signal clcara.nccs. The USi.' of a delailed specification in a bid would leave no latitude for NYC Transit to consider proposers' diftercnt de-sig,n appronchcs. In order to achieve best value, utilizing the RfP process enables NYC Transit to negotiate the price, I.;."rms and conditions Stlch tis \vt\tranty and payment tenns, and other lechnicalnmhers as deemed appropriate, as \.Veil as weigh Ihe overall quality of the proposer and the product being offered. VIII-20

86 -- _.._... _._ Staff Summary New York City Transit Page 2 of 2 The RFP process will allow NYC Transit to arrive at the best overall proposal through negotiations and evaluation based on criteria that reflect the critical needs of the agency. Upon completion of the RFP process, NYC Transit intends to obtain Board approval for the actual contract award. IMPACT ON FUNDING: The first vacuum train was added as a new project in the Ju!y 2013 plan revision for which funding is available under Planning Number MW ; Project PSE Number R342S I, Primary MTA Project Number T61302/07. Additio!1al funding tor the second train will be made available under Planning Number MWIO6702 (2QIO-14 Capita! Plan ~ Purchase of 54 flat Cars). ALT RNATlVES: Issue a competitive WB. Not recommended given the complexity of this procurement and the advantages offered by the RFP process. RECOMMENDATION:. It is recommended that the Board adopt a resolution declaring that competitive bidding is impractical or inappropriate for the procurement of two vacuum trains, and that it is in the public interest to issue a competitive request for proposals pursuant to Subdiv ision 9( f) of Section 1209 of the Publ Ie Authorities Law. VIII-21

87 ... _... _ Staff Summary New York City Transit l--.,...o_fd_9_f Vllnocr Name Contract Number RFP Authorizing Resolution T80 1 '...,..-,-'-----'-,..,,---.''-,-'-'-,.._-_,..,, ~~hase & Delhl~'Y of U~O #2 Fu~'.!,l):._~~~~~::.:.sU$~~rvic.:,...~ Board ReVicws-"" Tota! Amount i O/l:~rjptlon,. TO -,-_D_a_~e_.-i-i.!'P,o,,' J,n,ol' 0"" j,so.opfior,....,j----..! A!,pr~~~I... Ord~r I =~!~~~~~!,... Malenal 5 l Buses Law s rev? ~".." ~.~d~!t X Subways,.-1 - '1 I,,~:.V.:::::.~:~~...,...,_._, :::=_--....l resident 1.. :...?Pt~~~~~~~~de~" in Total Amount? 0 V :$ C:2 i Ran,wal? p;.ocli'too,ent:ry-pe j rmy':1s~-ej No--".-----,;;;.;;...---' "'1 ~t9.l?..m2r;ltiti\le _J:;;.L~?!!:.~~Q,.:...tiv...;;e.... _.. ~ Solicitation Type ~ RFP 0 Bid 0 Other: Funding S<n.l(C6.-~...=;:: _--'...- l.:@:::...:o-..::.p:..;.e:...ra.;..tin.::;g~..:o=-c;;.;a~p.;.;;;ita;.:;.i...:o=.:.;.f..;;eoe;;.;.;.r;;;;.al-..::o;;;.,..;;o.;th.:.;:e::...r: J PVRI)QSE~ To request that the Board detennille that competitive bidding is impractical or inappropriate and that it is in the public interest to use the competitive Request for Proposu!s (Rr?) pr~ess. pursuant to Subdivision 9(t) of Section 1209 or the Public Authorities Law, for the purchase and delivery of Ultra Low Sulfur Diesel #2, 15 ppm or less (ULSD) fuel for bus operations at approximately 30 locations for both NYC Transit (NYCT) and MTA Bus Company (MTABC). PISCUSSIO~: Subdivision 9(1) or Section! 209 of Ihe Public Authorities Luw pemlits the Board to adopt a resolution declaring thai competitive bidding is impractical 01' inappropriate because it is in the public interest to award a contract pursuant to a process of competitive request for proposals. NYCT for itself and on behalf of MTA Be is desirous of utilizing such!i procedure with respect to the procurement of bus fuel. The combined diesel fuel requirement for buses for NYCT and MTABC is approximately 46 million gallons anmmlly. Bus fuel represents one of the most critical commodities procured; its quality and avail.1billty cannot be compromised. The fuel must oonfoml to strict requirements from the bus engine manufacturers whose warranties mandate fuel specifications including cetane level and the use of detergency to maintain dean fuel injectors. Also, additional chemical additives for cold weather operability must be blended with the fuel at specific rates which vary by the season (and temperature). Fuel used in buses is subject to rigorous sampling and test.ing procedures to ensure consistency in meding the technical specifications. Failure to meet these ~xacting specifications can impact operability of bus engines as well as depot on-site fuel tanks and filtration systems. The fuel supplier is required to remotely monitor depot fuel inventory and ensure that adequate replenishment deliveries are made on a timely basis. In order to achieve best value, utilizing the RFP process enables NYCT and MT ABC to have maximum ne~ibdity in obtaining rhe most competitively priced product that complies with s.pecifications and delivery requirements. NYCT procurement seeks to award one or more five-year contracts to qualitied vendors who will be invited to propose system wide or on a borough-by-borough basis (including Yonkers) under the belief that an RFP provides the best method of awarding contracl(s) for this work so that critical factors other than price can be evaluated. For the contract currently 111 pltlcc NYCT and MTABC utilized the RFP process which yielded competition Ilnd favorable pricing, Through this process, NYCT and MTABC will have greater freedom to negotiate find structure!i. contract that best meets their needs, including having the abitity to: I} provide qualitlltive and quantitative prodtlqi consistency; 2) maintain a satisfactory supply chain with suitable inventory levels;.) compare price incentives based on appropriate prodlj~1 price indc;.., selection, volume and payable discounts; 4) select between variables such as single verstl~ multip!e contract awmus and 5) asst"ss supplier ability to meet ali or part of the demalld. VII 1-22 J t

88 Staff Summary New York City Transit Upon completion of the RFP process NYCT will seek Board approval for the actual contract aw&rd(s} for itself and on behalf of MTABC.. IMPA,(T ON FUND~ Funds are available under NYCT Ac.count No , Responsibility Center 353 J , Function No. l20. Funds are available under MTABC Account No,706602, Responsibility Cenler 5286, Function No :1LTERNA TJVES: Issue a competitive JFB. Not recommended, given the complexity of this procurement and the advantages offered by the RFP process. RECOMMENDATIO~: It is recommended that the Board determine that competitive bidding is impractical or inappropriate and that it if, in the public interest to use the competitive RFP process} pursuant to Subdivision 9(1') of Section 1209 of the Public Authorities Law, for the purchase and delivery of ULSD Fue! for bus operations for both NYCT and MTABC. VI 11-23

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90 Staff Summary,!tam Number 3 (Final) I Dept & Oept Head Name: \. {o{.. t:b v.""),! Engineering and Construction, Joe Kear.e~ P.e. f! Dlv!slon & Olvision Head Name: I Engineering and Construction, Romola DeSantis, P.E. i Board Reviews I Order To Data I Approval Info Other } 1 F'resid&l'lt 8130/13 "[7:~ 2 MTAB&T 9116/13! Committae I, :" :} MTABoard.9/18/13 1 I i--_... ""-.i- i Internal Approval, SUMMARY INFORMATION! Ordor Approval Ordul' Approval! Solicitation Typo Elrlclgss and Tunnels 'VtndorName Contract Numbar! N/A f ot)serl~tlon \ i I i ' i c.onstruclion for Project BB-28S, sand.y Restoration and Projects 8B.1 2B, Ph ills a-54, Rehabilitation of the Tunnel and Brooklyn Plaza at the' Hugh L, Carey Tunnel (HCn and I I Construction for Project OM-40S, Sandy Restoration and Projects am-, 40fOM1 e, Rehabilitation of the TUnnel and Manhattan Exit Plaza at the Queens Midtown Tunnel (OMT) i'otal Amount J I HCr $350,000;000 and OMT $ ,000 (project budgets) I Contract Term lineludltl\l Optiol'l$. if any) 5 years (Her) and 4 years (OMT) -- Optlon(s) Included. In Total Amount? 0 Yes :2l No ~~~------~ 4 Renewal? 0 Yes 21 No.-.I k-_--l t ,, ,-, Procurement Type,tEtCo~I!:i.Ln ll1qjl."2(')ml2et!ti~., I Funding Sourcn C Operating [g) Cap:tal :J Feceral 0 Other: I L PURPOSEIRECOMl\!jJ:;NDATION B& T is seeking Soard approval under the AU Agercy Procurement Guidelines to declare competitive bidding to be imprac.1ical and/or Inappropriate in accordance wit1 the All-Agency Procurement Guidelines, Article IIlA.B. and P\lbllc Authorities Law 559 and authorize S&T to enter into a two-step competitive Request For Proposal (RFP) process for the Super Storm Sandy RestoratiDn and Capital Program construction projects at the Hugh L Carey Tunnel (HeT) and Queens Midtown Tunnel {OMT}. This measure will be enacted In order to pre-qualify prospective bidders based on their prior tunnel experience, responsibility as well as their technical and financial capabilities due to the magnitude and corr1p!exities of these projects. H. O!SCUS~ION Designs of U's Super Storm Sandy restoration construction projects as weh as Projects 8828 Phase 11,8854 and OM 40 are underway for the HeT and QMT. B&T determined It is judicious to pre-qualify experlenceli tunnel contractors to mitigate risk to the public and to minimize the duration of the Sandy restoration projects, The initial step in this RFP process is to pre..quatify responsible Gonstructionlirms or teams of nuns who meet requisite levels of experience, technical and financial capability in order to maximize compotltiofl while advancing the procurement phase as the designs Hie finahzed. The second step to this RFP proces.s sl1ah be to issue the final bid documents to the qualified contractors for pricing, submission of bids and award of the C:)l'1tracts to the low responsive responsible bidder in accordance wah starldard procurement practice, IX-1

91 Bridges and Tunnels Pageioi2 The scopes of work required to restore the HCT and the OMT to a pre~storm state of good repair include system replacements as follows: tunnel pumping; electrical; lighting; communications, monitoring and control systems; tunnel structural and civil repairs; tunnel wall tile, ceiling panels. polymer panels, curbs and gutters; and tunnel ventilation building rehabilitation. Also, Capital Program Projects 88-28, Ph II and scopes include fire line replacements; and rehabilitation of the Brooklyn Plaza. OMT Projects OM-40 and OM-iS scopes include fire line replacements; and rehabilitation of the Manhattan Exit Plaza. These Capital Program projects are being included with the Super Storm Sandy Restoration construction for reasons of facility operational coordination, scheduling and to minimize the construction Impact on the public. The construction project budgets are HCT - $350,000,000 and 'OMT $250,000,000 and the project duration are 5 years for the HCT and 4 years for QMT. 8ased on the above, 8& T deems it to be in the public Interest to request that the Board adopt a resolution declaring competitive bidding to be impract!cel and/or inappropriate in favor of contract award by means of a competitive' RFP process. m. D/MMBe INFORMATION The MTA DDCR will assign applicable goals prior to the issuance of the Request for Proposals. iv. IMPACT ON FUNDING Funding is available for these projects as follows. Sandy Restoration Program w HCT Projects: ED010228; ED020202; ED040243; ED050202; ED050221; and the Capital Program under Projects 8828, Ph II and B854. Sandy restoration Program - OMT Projects: EDO ; ED020203; ED040203; ED040281; ED050203; and the Capital Program under Projects OM40 and QM18. v. ALTERNATiVeS Utilize the conventional construction bid procurement process. This process is considered impractical due to the need to advance the procurement phase to pre-qualifying responsible, experienced, technically and financially capable contractors prior to bidding the construction projects at the HCT and OMT. IX-2.," ",.".. -"...,-,",-_.,---,_...,--,-,

92 Schedule H: Modifications to Personal Service Contracts and Miscellaneous Service Contracts Item Number: 11 (Final) Vendor Nama (a. location) Contract Number I AWO/Modificatlon II Modjeski & Masters. Inc., Poughkeepsie, NY PSC Description Design and Construction Support Services for Project RK-23, Reconstruction and Rehabilitation of the Manhattan Approach Ramps to the Robert F, Kennedy 8ridge Original Amount: $ Contract Term (including Options, If ally) Prior Modifications: $ June June 14,2018 Prior Budgetary Increases: $0.00 Optlon(sj Included In Total Amount? DYes I8J No Current Amount: $8.727, Procurement Type 181 Competitive 0 Non-competitive This Request: $ Solicitation Type rel RFP D81d D Other: Funding Source o Operating!81 Capital o Federal o Other: % of This Request to Current Amount: 85%, Requesting Dept/Dlv & Cepl/Dlv Head Name: EngIneering & Construction, Joe Keane, P.E. % of Modifications (including This Request) to Original Amount: 97% j Discussion: B& T is seeking Board approval under the All-Agency Guidelines for Procurement of Services to amend this contract with Modjeski and Masters, Inc. (M&M) for additional funding in the amount of $7,440,274. Consistent with the Procurement Guidelines, this amendment constitutes a substantial change. Pursuant to Board approval in June Contract PSC was awarded to Modjeski and Masters, Inc. in the amount of $8, for a six-year duration to perform design and construction support services for Project RK-23. Reconstruction and Rehabilitation of the Manhattan Approach Ramps to the Robert F. Kennedy Bridge (RFKB). In its 20-year needs assessment, B& T Identified the need to construct a new ramp to permit traffic to go directly from the Harlem RIver Lift Span of the RFKB to the Northbound Harlem River Drive (HRO) instead of the accessing the HRD via very busy local streets. In response to the Governor's 2010 Report recommending improved system connections and resiliency of regional transportation routes and with recently acquired information regarding a New York City Department of Transportation (NYCDOT) Project for the reconstruction of the HRO (NYCDOT Project) Just north of the RFKB. B& T issued a previous amendment for M&M to perform a study to determine the feasibility of constructing a ramp from the RFKB to the Northbound HRD. One of the outcomes of that study was the realization that tens of millions of dollars in construction costs can be saved ~y accelerating the design of the planned ramp so that It Is fully coordinated with the final design and construction of the NYCDOT Project and thereby minimize demolition and additional reconstruction work on the HRD at a later date, The NYCDOT Project design Is 100% complete and will be put out for bid this Fall with construction scheduled to begin June In order to take advantage of this opportunity, it is necessary to Immediately begln redesigning the new HRD Ramp and associated changes to the currently proposed NYC DOT Project. This proposed amendment is to: (i) perform a preliminary design of the new HRO Ramp. which is required to determine ihe design changes that must be made to the NYCDOT project; (ii) perform a complete design of footings for the new HRD Ramp (which the City has agreed to construct on behalf of B& T pursuant to a memorandum of understanding to be developed by both parties); (iii) modify the offwbound Street Ramp design which is necessary to accommodate the new HRD ramp; (IV) perform complete design of five spans of the new HRD ramp where the new HRO Ramp structure ties into the existing off~bound 125 lh Street Ramp structure (to be constructed under Project RK-23A at the same time as the 125 tl1 Street off-bound ramp); (v) prepare the necessary environmental documentation for the new ramp;and (vi) in I cooperation with NYCDOT. re-design the NYCDOT Project plans to realign the northbound viaduct to the east to i accommodate the new ramp, and revise the environmental documentation for tha overall Improvements. The re-design of the northbound viaduct must be completed and accepted by the Federal Highway Administration by the end of 2015 in order to maintain NYCDOT's construction schedule. I lin order to meet this aggressive schedule and minimize future costs, on August 1, 2013, B&T authorized M&M to I proceed with design of the Northbound HRD Ramp and design changes to the NYCDOT Project in an amount not to i exceed $400,000, For all of the proposed amendment services, M&M proposed $8.688,985; the Engineer's estimate is! $7.500,000. The negotiated price of $7, is 0.8% below the estimate and Is considered fair and reasonable.!. : Funding for this amendment is available in the Capital Program under Project RK-23.! (.. _...J IX-3 I I I! I I I i , -"-... _ _._

93 ... _ Bridges and Tunnels Staff Summary! It.em Number I Dept & Dept Head Name:, 1 {Final} :ej:ts.;.u.l''-< I Engineering and Construction, Joe Ke e. P.E.!! Oiv!sion 8. Dlvlslon Head Name; Eng:~.eerin~ and ~on:~u~~.o~:aris Sh;lt~~~~VIOS\ P.E. f.\" './\." -;f<\~ ".' (,tt S'.~,t,A\..-...:,.#,~~a""...(: ~, /.. 'f"'''''..,'.-" )~" *--',.;.! f Board Reviews Order To Date App~lfal Info Othtll 1 i President 8/ '''''V.,if" Z MTA B&T 9118/13.j"" Committee 3 MTA80ard Intemal Approvals Order! Approval! Order Approval '1 Chief Financial 4 Chief of "taff }' Offi~r ;.. ( "f',/) ""l.t,... t:'r'< f l, l.<" ~,.".f" 2 General CJ',)l.Insel 5 EX!l?i!~V~~ice.P'~~.~jdtr,t {'"'" l'l i t 1! 3 Chief Procurement 6 offlcet4r~~,/ Narrative ''i>,_,_ ",;I r \ ~... Pi8sl,del1t"..";---,, / j " l~i" \. /! "..,... r SUMMARY INFORMATION I Von~orName '1 Contract Number i N/A I MP03 I DeSCription DeslgnSuUd Services for Project MP-03S, Replacement and Relocation of Marine Parkway - GlI Hodges Memorial Bridge North Abutment Electrica! Equipment Room. Total Amount I I $6,800,~ (DeSIgn Build Budget) Contract Term (Including Options, If any} 2 years Optlon[s}lncludod In TO~..:~t7 ~~~No1 Re~ewal? 0 Yes t2fnol Procurement Type ~ Competitive [] Non-cornpetitlve f I.' -J' Solicitation Type f ;] RFP W Bid :J Other. f Funding Source C Operating [;; Capf\a! C Federal 0 Other: -.-{, l. PURPOSEIRECOMMEN06 TIOIj 8&T is seeking Board approval under the AIIAgency Procurement Guidelines to declare competitive bidding to be impractical and/or Inappropriate in accordance with the AIIAgency Procurement Guidelines, Article IliAe. and Public Authorities Law 559 and authorize B&T to enternto a compellttve Request For Proposal (AFP) process for Design-Build Services for the Replacement and I~elocation of the Electrical Equipment in the North Abutment at the Marine Parkway Bridge (MPS). n. OfSCUSSION Storm surges from Super Storm Sandy flooded and damaged electrical equipment located In the North Abutment ot the MPB revealing vulnerabilities of the equipment in Its current location. The equipment provides critical power for the lift Spfln and other power needs for the MPB. It is recommended that the damaged electrical equipment be replaced to restore the MPS 10 a pre-storm Slate of repair and relocated to a higher elevation to mitigate the exposure to future flood related events. B&T has determined that it Is prudent to accelerate this project In order to ensure a reliable power source for!lft span operations, mitigate risk to the public, maintain critical transportation and evacuation infrastructure and for reasons of publlc safety. The Scope of Work Inclwdes designing and constructing a new pre-engineered substation endosure and instalrlng new electrical switchgear, transformers, and erntlrgancy generator. The design/build procurement process wfli allow this work to be awarded and completed approximately twelve months sooner than the typical design/bid/build procurement methm and take advantage of curtently favorable construction market conditions. The design and construction budget is $6800,000 and the Contract duration is 2 years. Based on the above. 8&T deems it to be in the public interest to request IX-4

94 Bridges and Tunnels Pagol! of:1 that the Board adopt a resolution declaring competitive bidding to be Impractical in favor of contract award by means of a competitive RFP process. III. D/MIWBE INFORMATION The MTA DOCR will assign applicable goals prior to the issuance of the Request for Proposals. IV. IMPACT ON FUNDING Funding is available under Capital Program under Project 0604MP03 ($3, ) and E Sandy Restoration ($3,500,000). V ALTERNATIVES Utilize the conventional design/bid/build procurement process. This process Is Impractical due to B& T's requirements to expedite mitigation projects at its facilities to minimize its exposure to future weather related events. IX-5 _

95 Staff Summary ) ltum Number 2. (Final) l ill". Dept & Oapt H&ao Name:,.!.,.,:~.k~:-\. 1. SUMMARY INFORMATION Bridges and Tunnels Vendor Name j Contract Numbor. Engin~tin9 and Construction, poe Keane, P.E. NlA t...,! Division & Division Head Nama: Description I Engrneeri~9.and Construction, Aria StathopoUI~,s. P.E. DesignBuild Services for the Replacement and Relocation of Mechanical and Electrical Equipment from the 8ervice Building and t. :;/ ~.l"j..;.v: f ",/..j!..t:,././:':'..,i',. tp.~"i/-f"".. "'0;, Soutb Abut!ll~OI i'l.t 1tl Q(Q~i aiill!-~t~mf.ll Mgcrmrl 1 en~g~, I r. Total Amount Soard Reviews I $6.300,000 (De$ign Build Budget). I Order To Oslo ~proval IlnfCl! Other i Contract Torm (including Options, if any), 8/ })r't \ 1 PresIdent! 2 MTAB&T CommIttee ;) MTA60ard I 12 years OPtlon(s'":')"7"ln-c":'"lu-:d-Od':"':':-'n-::T""':ot:-al:"":A:-m-o-u-nt":": =O=--v-e$-~:::=.~-N-o-l 9/18113 I Proeuroment Type Intornal Approvals.Gl QompelitiYSLD NQn.!tQJ!!j!$!titive Order Approval Order Approval Solicitation Type Chte' Financial <I! I Chief of staff 1 Officer, '! RFP OEM I f 'Jl. ~ r~'. '::;. ;-~! 2 General CO.unsIII 5 ~f:ytl~? Vica. ~resldq't ~~;;;;~~...-. { {il/f'lt <_~«_ ""r~,..;;...~ :3 Narrative. ~~~:7eu~menl " /!f.m,:c:j1. IS President /""-r~\.-!''''~ f ~ 1f~'''' I _ DYe, :~N:O i OOlhe~ ~ I :1,! C Operating C Capital o Federal 0 Other: L. I. PURPOSElfigCOMMfiNDATION B& T is seeking Board approval under the All-Agency Procurement Guidelines to declare competitive bidding to be impractical andlorinappropriata in accordance with the AU-Agency Procurement Guidelines, Article IIlAS, and Public Authorities Law 559 and authorize 8&T to enter into a competitive Request For Proposal (RFP) process for Design-Build Services for the Replacement and Relocation of the Mechanical and Electrical Equipment currently located In the St'lrvice Building and South Abutment at the Cross Bay-Veterans Memorial Bridge (CBB). I 11. DISCUSSION Storm surges from Super Storm Sandy flooded and damaged mechanical and electrical equipment located in the csa service building and South Abutment ihe equipment provides critical facility power, emergency power and heating needs. The equipment has proven to be unreliable due to the infiltration of salt water, debris and contaminantladen floodwaters entering the service building and the south abutment Temporary repairs are continuously required. It is recommended that the damaged mechanical and electrical equipment be replaced to restore the CaB to a pre-storm state of repair and relol".l!ted to a higher elevation to mitigate the exposure to future flood related events. Rooms that conla\ll equipment that cannot be relocated will be flood proofed. B& T has determined that it is prudent to accelerate this project in order to ensure a reliable power source and heating for bridge operations, safe work environment for employees, to rnillgate risk to the public, maintain critical transportation and evacuation infrastructure and for public safety. The Scope of Work includes designing and constructing a new pre-engineered substation enclosure, installation of new electrical equipment consisting of new switchgear and transformers, and new heating equipment The design/build procurement process will enable the project to be awarded and completed approximately twelve months soonsr than the typlcai design/bid/build procurement method and take advantage of currently favorablf.! construction markot conditions. IX-6

96 Bridges and Tunnels The design and construction budget is $6.300,000 and the Contract duration is 2 years. Based on the above, B&T deems it to be in the public interest to request that the Board adopt a resolution declaring competitive bidding to be impractical in favor of contract award by means of a competitive RFP process. m. DlMIWBE INFORMATION The MT A DOeR will assign applicable goals prior to the issuance of the Request for Proposals. iv. IMPACT ON FUNDING Funding is available under Project E in the Sandy Restoration Program. V. ALTERNATiVeS Utilize the conventional design/bid/build procurement process. This process is impractical due to B& T's requirements to expedite mitigation projects at it facilities to minimize Its exposure to future weather related events. IX-7

97 Bridges andtunoels Schedule H: Modifications to Personal Service Contracts and Miscellaneous Service Contracts Item Number: 12 (Finan Vendor Name (& Location} Contract Number 1 AWOIMooification # Ammann & Whitney Consulting Engineers, P.C" NY, NY PSC-12~2915 i Description Construction Management and Inspection Services for VN-80C, Construction of a New Ramp at the Verrazano-Narrows Bridge Orlgln~1 Amount: $ Contract Term (Including Options, If any) Prior Modifications; $0.00 I April 30, 2013 February 28, 2017 Prior Budgetary Increases: $0.00 Optioo(s) Included In Total Amount? DYes r8i No Currant Amount: $5, Procurement Type t8l Competitlve 0 Non-competltive Solicitation Type i2lrfp DBid o Other: This Request: $2,216, Funding Source o Operatlng r8j Capital o Federa! o Other: % of This Request to Current Amount: 38.9% Requesting OeptJOlv & Dept/Diy Head Name: Engineering & Construction. Joe Keane, P.E. % of Modifications (Including This Request) to Orlslnal Amount: 38.% I I 1 Discussion: B& T is seeking Board approval under the All-Agency Guidelines for Procurement of Services to amend this contract with Ammann & Whitney Consulting Engineers. P.C. (A&W) for additional services and associated funding in the amount of $2,216, Consistent with the Procurement Guidelines, this amendment constitutes a substantial change. Pursuant to Board approval in April 2013, Contract PSC was awarded to A&W in the negotiated amount of $5.693, for a duration of three years, ten months to provide Construction Management and Inspection Services for VN-BOC. Construction of a New Ramp at the Verrazano-Narrows Bridge (VNB). Subsequent to the receipt of bids for VNMI 80C, a bid mistake by the lowest apparent bidder ultimately led to a determination to reject all bids. This enabled B&T to add the scope of work under Project VN~35, Miscellaneous Steel Repairs and Painting at the VNB to that of VN80C. This assimilation of work into the VN~80C package would allow B&T to realize Significant savings, as combining these two projects will result in cost savings by eliminating redundancies from separate Inspection projects at the same locations and improve overall coordination and staging of the work. Therefore, It would also be a financial benefit for B&T to combine the separate construction management and inspection tasks into one contract., The proposed services under this amendment consist of providing all pre-construction and construction administration, inspection, testing and support services necessary to coordinate and independently monitor the project from commencement through completion and final acceptance. These services shall be required for Work that includes: i) structural steel and concrete repairs at six Brooklyn ramps, suspended span catwalks. and main span flag repairs; ii} removal and replacement of the paint coating system on the Brooklyn and Staten Island lower leve! approaches; and iii). re pars i to g uide ralls at the Belt Parkwa Y brid 9 es and seismic u pg rades to the saddles within the Staten Island and. ISrooklyn Towers. A&W proposed $2,216, for these services; the Engineer's estimate is $2, A&W's cost! proposal Is 19.8% below the estimate and is accepted as fair and reasonable. Funding for this amendment is available in I the Capital Program under VN-35 ($ for steel repair and $1,469, for painting). i...l I (UV. l/lfi/o,) lx-a

98 Staff Surnmary Subject Date. FMTAC Annual Meeting September 9, 2013 Department (Jeneral Counsel/R.isk and Insurance Management Department Head Name James B. Henly! Department Hillle! Signature I Vendor Name Contract Number Contract Manager Name Project Manager Name Table of Contents Ref # Laureen Coyne. Director, Risk and Insurance Management a Metropolitan Transportation Authority I 1 Board Action Order To Date Approval Info Other Order 1 Pinsnce 9116/12013 X 2 2 Board X Procurement Office of Civil Rights 1 To provide information concerning the first Mutual Transportation Assurance Company's (FMTAC's) 2012 activities and operations to board members in connection with thcseplember 18,2013 annual FMTAC Board meeting. Discussion: The monthly MTA board meeting of September 18, 2013 wll! also be the fourteenth annual board meeting ofmta's Ct'lptive insurer, the First Mutual Transportation Assurance Company. For informational purposes, lhe FMTAC Board Book is being distributed to b{)urd members in advance of the meeting. The FMTAC Board Book contnins the Annual Meeting Newsletter (at Section 1), which provides a summary update on the activities of FMTAC for the year ended December 3!. 2012; historical comparative balance sheet and income statement summaries (Section 2); I the FMTAC Audited Financial Statements for the yeurs ended December 31,2012 and 201 t (Section 3); and the Statement of I Actuarial Opinion prepared by Milliman, Inc, setting forth the independent actuary's detenllination that the reserves recorded by " FMTAC for the year ended December 3 J, 2012 meet the requirements oftlle captive insurance laws ofllie State of New York and make reasonable provision for unpaid loss nnd loss adjustment expense obligationsof FMTAC (Section 3). Also induded in the FMTAC Board Book is the New York State Department of Financia! Services Examinatbn report offmtac as of December 31, 20 t 0 (Section 4), the regulatory compliance checklistfor 2()'13 (Section 5)1 a Report on Investments (Section 6), and rnaleria!s describing the captive manager advisers (Marsh Captive Solutions) and FM.T AC's investmentmunagers (Dwight Asset Management COlllpany) and actuaries (Milliman, Inc.)(Seclion 7). An infonnatiollui presentation concerning FMTAC's2012 operations and activities wm be made at the Finance Committee meeting of September 16, 2013.! l I ~! X-1

99 ITHIS PAGE INTltNTIONALLY LEFT BLANKJ X ~

100 n... W FareboxR_ \fehicie Toll Revenue Oilier 0peta1Ing Revenue Capilal&OlllerRe!~ TotaIRfl_ ~ ldi!!!!:;. Payroll Owd!me Health and Welfare OPEB Cumm1 Payment Pensions Oilier Fringe!IeneIII$ ~O\Iemead Tolill Labor &pens... Non-Labor geciriepower Fuel Insurance CIaim$ P_sitSeMceC_ M","1enaru:e and Olher ()pe<aling ConItac15 Ptofes$lQnal Sen.ice e_ Malelials & SU\lPhs Other 8usIne$$ ~ Total Non-l.abw EXpenses Ot!w E!!pW!! AdIII!lmWSi Olher GeIlWllRe_ Total Othe;< Expense Adjuslmenla Total Elcpensft berate Non-ClISh l.iiibility Adjs. ~Jf!da1ion OPES Obllgatioll E,n""""mcmIaI Remediation TotaI&peM... Net SurplUSl(tlelldl} excluding Subaldle$ and OeM Sflvice SubstdIes Oebt~ -R_"'""'""'''''''' and WIljee< to - ~... due II> UKlIlIIIng. V_.,...,.lOO'll-, METROPO~ANTRANSPORTAnONAUTHORnY Jut Y FINANCIAL PlAN MIO-YEAR FORECAST Consolidated Accrual Statement of Operations by Category July 2013 ($ In miifions;) NoIIn'IInI... bie ReimburUble F_bIi fiavoiiblii l!!!!favorablel!lhifawlrable~ MIdVear MIdYear 1'0_1 Actual Varia""," P"n;ent. Fo_t Act... 1 V",rtance Percem $473.9 $411-4 $ $0.0 $0.0 $ OJ) fi OJ) ItO & (11.6) {7.8} IUU $671.& $ $148.4 $13&.11 1$11.6) (7.8) $368.9 $365.6 $ $45.7 $31i.f;1 $ S S5.3 (9.8} (21.4) 8.4 to.1 (2.3) (21.5) B M 735.G G (1.2) (4.3) U <21.4} (23.5) p.9) (14.2) $1,2".1 $1,l!lJ..1 $0.6 o.e $127.3 $111.4 $U: 1.1) $42.7 $381) $ $0.0 $0.0 ($0,0) J..2 (1.0) (~.7) 0.0 O.G (0.0) - ;u 5.5 (3.2) t (6.9) (47.S) , ) (2.2) (84.7) (5,0) (19.6) , $2$4.3 $243.0 $11.3 U $2t.1 $18.4 $ $3.1 $3.0 $ $0.0 $0.0 $0.0 $t.56ul $1,539.1 $ $144,,( $1U.. $t (2.8} (11).0) $f,71u $1, $ $141.4 $UU $11.& 7.11 ($i,10u) ($1,012.3) $32.$ 2.9 $0.11 $0.0 $&.G l M Total l'avoiiililii IUnfavorablel MI!J..Year Forecast AI;lIi4I li'ammce Percent $413.9 $417.4 $3.5 {l fi ,8 (11. ) {7.S) $ $11"'" ($O.&) (0.1) $414.6 $404.2 $1D (12.1) (22.4) G (OA) (0.1) (0.2) (0.1) (0.1) (61.1) $1,42Ul $1,411.4 $!MI O:t $42.1 $38.0 $ (1.0} (4.7) (3.01 (8&.2) (lul) (47.8) !! (.c.3) It4.3) $215.4 $261.4 $ $3.6 $3..0 $ $1,700.0 $1,s.,U $;t4.f (2.8) (1M) OJ) 0.2 $l,ils.i $1,1116,.1 $» ($t,104j1, ($1,012,3J $U.S til.\! 20$ '1.2

101 ------~ METROPOlITAN TRANSPORTATION AUTHORITY JULY FINANCIAL PLAN MIp..YEAR FORECASi Consolidated Accrual Statement of Operations by Category July Year-to-Date ($ II> miiioll$) >< I' N Bmll!!! F8II!IIO.v;Re_ Vehicle Toll ReYeflUe 0IIIef 0pe<aIin0 R_e Ca\lIIaI " 0Iltet ReimI>Ilrsements Total Rewnue lii!».!l.lm. ~ Paywl 0wrIime Heallhand~ OPES CummI I"l\YfIlflIII PIIIIt<II:l!u> OIlIer Fringe BeI\t!Iiis Relmbursable 0verhflM Tolallabor Elcpentes Ngn:!.abor; E!eclricP.,...,.. f... I",.."ance CIai/llll Paraltansil SeI'IIice t:oneraas ~ and 0Ihet 0pefaIjng t:oneraas ProfesslonaI SeMee Confracls Matelials & Supplle$ \lui... Business ElQIen_ Total Non.I.abor Expenses NOl1relmbv",.bIe Reimbursable I'awrabli Fllvo/iitilii!Unfawrablel IUnhw<>fablel Wd-Year Mid-y... F_sI AetwlI Va1IaIIee Percent ~t Actual v.~ P_t $ $ $ $0.0 $0.0 $ $ (4.3) (0.9) OJ) 0.1'1 D.O 0.0 G.O (1.9) {O.2) $4,M41.1 $4.H3.Q 0.2 $1112.) $l1q.a, ($1.t) (II.%) U,441.8 $15.2 D.ll $278.2 $269.4 $$ &.0 (1M) (4.2) (8.0) {11.2} ' (UI , D (1.9) (4.1) (116A) (1n.6) (1.5) (0.6) $4,805,3 ",71U '2U 0.6 $lieu $6U.3 ($1.1) (11.2) $296.7 $290.3 $6. U $0.2 SO.3 ($0.2) l (0.0) (2.3) (3.3) (27.4) l 0, CU) (6.6) OJ) ) ; (U) (13.7) " 1; (0.6) (:t.ot) fi $ $1.fI13.1 $ $125.7 $12.U $ Mld-y..., "_st Actual Total $3,1:12.0 $3, ' ll 'UGM $5,37U $2,735.1 U, !l , (0.7) (0.5) $6,492.9 $6,484.9 $296.9 $ ISS t7.5 2' , $ $ FII""raIiJa {UJlfaYOl'Ul'el Variance Pe!Cent $ (4.3) (0.9) (1.9)!lU) $S..O 0.1 $ t22.4} (5.4) 15.2 l (0.2) (2S.6} UI.lI D.' $ /2.7) (16.4) (11.4) (8.6) U n UU 1.11 Q\h8r EellS! A!I!u!1mepts; 0Ihef GMeralR_ TotatOlber~~nts 1B (2.1) (11.5) ) $1t.1 $2D.I 1$2.1) (1,.5) $0.& $0.0 $ :lila $11..1 $ (2.1) (n.5) ($2.1) (11.5) Total Expe_ befont Non..cuh liahiliiy Ad;'. $6.4IM $6,.'1.1 $ $6fU $II1Q.A, $ $1,275:J $7,221.5 $ Oepredajlon OPEB ObligallM Enviranmenlal Remedlalion 1, ,1; l ItO 0.1) illb} (ao.n (0.6) (20.7) T_I Expen$es $6,lI7OJ' $11,519.' $9IU 1.0 $112.3 $II1OA $1,& 0.2 $',443.0 U.J90.2 $tu 1.1) Het SIlfPlutJtDeftcit) ndudlng SUbsidies 8IId Debt SenIice Stlbsidift OoIIlSeMce - R mlmimlty ands\ldjed 10 audii_. - ~... due (Q fciui1<iing. V 1OO%. 1$4.1!U} ($4,D1U) $t7.1 2A $0.0 $0 ($0.0. (100.0) ", , , lui {$4,11U, ($4,111 9) 4, ,132.l1 ' $97.' 2.4 5$

102 METROPOUTAN l'rahsportatlon AUTHORITY JUI. V FINANaAL PLAN 2013 MtI).YEAR FORECAST IOO'UNATtOH OFVARtANCES BETWEEH wo..vear FORECAST AND ACTUAL ACCRUAL BASIS. JULY $ In millions) JULY Genllric Re...,.,u. Nonrelmb flmlrabie ~or~~:ei:=~ca~tego~:!.ify,-- ~_..!)(U!lIavorab!e:!!!!!!~~}_ NR J 3.5 ~ (J.I NYCT ami MTA I!u$IIad favoiable variances of SUM Bill! $O.3M, ~. due 1oh/ghe(~I1der$I1ip,... lcwer ridetsiiip ai MNR padidv oifiet Ibis vw\anqe by /$O."M). 1 :2i 5,7 0.2 NYCT and MfA Bus had fa\ioniilie variances of $6.6M and $O.5M ~. diie 10 hlghet.~tidenihip, wille """'"" ridership ~ at the lfrr and Mf4R piiiliaiiy ofiseithese fflqb by (S1.1M) and ($(I.3M). mpediveiy The favdlable.ariarn:e _ due 10 highijt lraflle IIOkmtlt and a higher 8I/IlIIIIIOl!Ol. S.6 OJI The ~ YTI) WIiMce resuiied!lam higher Ir8fIievolume and 8 IlIQbet imii1ifi<iloil The fawrable Ottttx.me 1arIle/'t reiieds higher ~..man lax and ~ ai NYCT - Sl.!ltot.OIe timing 01 TranslI Museum seies 81 MTA 00 - SUIM; higbefgctllel_ due 10 timing and higher ~ _81 MNR-$Il.<lM; higherr_fwm Ole 8atteIy PaIIdIlV GanIge at 9&T - $II.3M; and timing alliie URR - $ Pa!tiaIy oiiseiting Ihesa mui\$ _ an IJIlli!lIIooIbI ~ of (SI).5MI ai MTA Bus priimil1y due 10 ~ S\IIIlent Ian! 11Ilmbtnements. (<1.3) ({),9) The ~ outcome!alvei>' relle<:ls the impact of 1/ /Wl!llIINe Ilhift ill the liwkel VIIIiItIe of the iiiwsted asset poi1toiiu III FMTAC -1$1.ll), and lower stildeni andliellior f>iat reimb~ <It MfA 811s - ($O.7M); PaItiaIy oiisettirig these \IIII1anC:es _e ra-abie resuiis at the lmr primarily due 10 liming - SI.1M:!he timinq of TI'8I\$II ~ sates at MfAHO- SUM; and higher lidwi1isin!ire_atmyct -$ >< ;- w Vacaneiea and liming _ primarily re$flonible for IavoraIlIe wtiances of SUM ai MTAHQ, SUM at MYCT ami $II.1M at the UIU!. Paltially oti$eitinij 1hese resub _ an IlIlfaI/ontble variiilnce of ($O.5MJ at MNR due to iria:eased IntIasIrudure irnprowment YIOIIt: and 1Iw; timiiig of payouts 10 <alms for IICCIlIed \iiiqi!joq and $ide leave Vacancies and timing _ primajiiy ~ fm tavomble V8llances of S9.1M <It MYCT. $4.2M at MfA MO. $O.1M at MNR. $O.5M at Ole lirr, and $O.3M al B&T. {IU') (21.4) The unfiwoiabie rwil kirgeiy reftm;l.$lhe impad of inefeued oostileduie!l SIIIIrice,lnst*l~ ofbiql'l&l systems, and higher ~ COVIII1IgII requin!mentli- ($5.2M) alnyct; the ~ of Ole MaInI_ ofwwtlllfiasln::lura ImpRwiemeI1l Progmrn.Inc:!iIuad requiiemeni$ for file CSX 1feIght ~ and ~ enice cwerage - (U.1M) at MNR; l/1ii.llming or fjfanl.matbd WOfk -I$UM) at MfA HQ; ao::e/eniieci repaiis of defec:is found 0<1 sdieduled Inspec\ion$ and ~ road calls - ($II.8M) at MfA Bus; and higilet ~1IIIentee co_age - ($0.31.1) at the I..IRR. These resulls WIIf8 piii1iaiiy offset by 8 '8lIOOIII!e oufcome of $O./iM at B&T primafiy due 10 lcwerl1lquiremenf$ for~ cowrage. (See Owttime Deoompolll!icm Report for mom deiaiis) (14.4) (4.21 lhe unlavlllllble rwillwjjeiy re1ieds the impad of iria:eased ~-w:e. comn.ecileqtlitelnenl$lor ~~ and hi9hef~ _age - ($6.3M) alnyct; the acceleration of the MIIin!enancII ofwwt \nffa$iruciura lmpn>wmetll Program,lncnlased ~ /l)( the CSX freight deniimeni and tdieduieci semce COVIIf1I1I1lat- ($l.8m) at MNfl; liie reaiduailmpacis of ~R>laled ~ \I<:CeIemted repairs of dei'ed$ found on IICIIeIIufeIj impedions, he!st-reiaied load ca1\s.w higherv8cllllcylabsemee Cllvelllge - ($2.1M) at MfA t!uo; the Uming of IJIMt-reIaIM-'t ($1.1IM)at MTAHQ;Midblgbef~ ~ -($1.2101) at th"i.irr. These l1istifts wete pariiaiy oii$et by It 1IMmI~ outcome of $OJlM at 9&1 ~ clue 10 Ic!wafreqllinoments fur Vill:8JlCYIab$enkte COY<!fa98. (See 0ve!1ime Oecornposition Report _.-e detaiisi ".8 TtnVng _ jirimariiy I1!'IIpOnIible lor tawraiiie wria_ of S2J1M at MfA Bus and $O.3M at SIR. NYC! hiod II fawrabie WIiMce of Sl.3M" moslly due II) Ic!wafIlllM. The I..IRR fawf8bi6 variancit 01 $Il.3M... ~ diie 10 higher WIClII1Ciea. These rwils partially offset by IMIfavoIabIe vamn:esof ($OJIM) aj MNR, primarily diie 10 all act:mii ~ and ($II.3M) el MfA MO, mainly due 10 liming. 14,3 2.7 NYCT had a favonibio II8Ilant:a of $12.6M II1I>SIIy clue 10 lower fales, TImIng was prinwiy ~ for~te II8Iiance$ of$2.tlm. $O./iMand $OAthl MfA_SIR andb&t andllll ~~ of ($II.SM) at MfA 00. The URR IavonJble varlanc:e of $O.!M was mainly due to liigher1lllc3lldes:. ThMe resuiis _ ~ oft'set by an ~ wriam:e of l$t.alol) el Mf4R primarily clue 10 an aa:ruai adjusime<it.

103 METROPOUTAN TRANSPORTATION AUTHORITY JUt Y RNANCIAI. PLAN MID YEAR FORECAST EXPLANATION OF VARIANCES BETWEEN MfI)VEAR FORECAST AND ACTUAL ACCRUAL BASIS JULY 1013 (5 It\ mllllomo) JIII.Y YEAR-TO-I)ATE Generic; Re_ NomeImb Fawnsble F8WftIbIe ME_~~!ILiSwI! l!!!!!8\ioi'iiliiel Rl!!l O!l$ f9(v'ailanq! tunfawf!!>!e1 Rmons tor Vadag 1 It 1 II OPES CunenI Payment NR _1lIIos and fewer fiiii«oes _ responsibie (Of IavaI'lIbIe ~ ~ JlIte; and feower retirees ~ibi&forfa\llll'able vatiatii:u $3.311& at NYCT and $O.5M at tile URR. oiu9m at tile LlRR. $2.0M at NYCT and $1.2M at MTAHO. p- NR TIII1inV _ nosponsibie for a /aw",b/e 1ISrian<:e 01 IUIM al NYCT TIII1inV was re$jlol'l$i!jfe forfavofable \IIItIaru:es 01 $2.SM al NYCT and SO.IIM at tile URR. These resuh were paiiiejy oiisei by an unr-abie vallance 01 f$1.0ii1) at MNR due to In<:rea$ed OIlllI1ime ~ related to deraiimiints and $ljbsequmi I~ III1j'KlI1II>IllI progi8mtl. OIlIer FI1nge Benefits NR 2.& 5.0 MTA Bus ha4 a tavorabie variance at $1.8M pnllllljily clue to liming. The 5.J 1.6 The URR and MNR ha4 fa\l'ol'llble 1IlIriances!>I $1.111& I'I!Id $1.01.'1 UAA was $1.OM nwont/lie maiill\' due 1Il1l1e liming of felaindemrjiiv ~ clue to tile timing 01 fela indemniiy pti)'iilenls and "'- payments and kiwet Railroad Refilllmllnl1a>les. Theae results... RaIIIoad ReIItemenI t.mis.. MfA Bus was $1.811& fawiabie mainl)( due to partiaiy oiisel by 811 unfnlllllltle variance 01 ($O,.3M) III NYC! cot>!isteni liming. Vtitflllig!Ier 0I!eIIImt! costs. X 1: R IeOwmeIlll lui (lu) lite liming at projeci acimty _~ foc unfa""",bie vllliancu at The liming at pmjeet adivity was rasponsible for a fawrabie variance 01 \$l.6m}iiimtahq" ($1Jl/1lj III NYCT and ($II.!iM) III MNR. SUM at NYCT and unfa!ionibie~ 01 ($2.6M} at MNR and (1O.4M) III MfAHQ. Ele<:Irir;I'_ NR &.1 IS.a lite favoiablevaliance rel\<!d$ tile impactoilimlllg - "'.IIM at MNR was $2.1M m-able primarily due \0 iowereonsumplioo and_. NYCT liiod 1O.3M al SIR. In addiiion, tile URB and MNR ha4 fawrabie NVCT_ $2.4M~mainl'tcluelo 1oWer~ MfAHQ _lances 01 $O.8M and $O.IIM.~, clue to lower ralas and and SIR ha4 favonibie \IlIriance$ 01 $O.IIM and 1O.7M, ~. ~ mainly due to liming. Fuel (1.0) ("'.7) NYCI _1lIIIaWfabIe by (51.511&) primarily due to higher COIl$UItIpIicm and MfA 8us \N4$ $t..em fawtabie mainiv clue to firninti. The URR was JlIte$, PIIItidy oifaeiilri9lhi$ Iesull was.. fawn!iilio va&!ance of $li.1u at 51.2M favonibie primaiiiy due to kiwet consumption and rates. Panlally MfA Bus due to tin*lg. oiise!!in!llhese mulls were ~ l/ailance$ of (".1M) at MHR I'I!Id (SO.5M) at NYCT moglly due to higitfii' cormmlplion and raias. Il'IlitIf!JIlCe NR j3,2) llrninlt \llbs primariir responsible for uniimlraijie VIlrianc:es III NVCT,I'I&T (l.:l) (27."1) Tirilg was primalfr fesiioi'i$ibie for ~ ~s ai NYCT. liiod FMTAC 01 ($f.1m), ($t.2m) and!$o.sml. rasped/veir. FMTAC and 8&T 01 (51.211&>. ($1.0M;lIiOd ($O.llM). ~. MfAHQ _ ($GAM) I.III4voI1lble primarilv clue to higher ~ for iimwance ~ /IJIaIed to fema recoveriel. Claims NR (6.9) (47.8) FMTACandNYCT_~I>y($3.zM}I'I!Id($2'!;M).re~. lila) (6.8) FUTAC and NYChlQra \IIIfawrabie by (S5,DMj and ($2.9M). due to an ~ III claim acilvii lor tile monltl 1InintJ _ te$potisiiile ~. due to an '-indalm IIdMiy. TJIfIinv _respotisibie for an liilfa1iixllllle vaqaoc;e 01 ($O.6M) at lite LIAR. tor an I.III4vorIlbIe 1IlIriance of ($4UM) allhe lfrr l'aralri'ilisii SeMel! ConIIacIS NYCT _ SO.tIM fa\ioi:8bie. malniv due to fewer IriJ>s andleduced <:all NYCT _ t3.7mfavoi'abie.ldiilniyclue It> fewer \lips and flhiiiced call center lidmty. Clllller adivitv.

104 METROPOUTAN TRANSPOkTATION AUTHORrrY JUt. Y f'lnanctat. PLAN Mlf)..YEAR FOReCAST EXPL.ANATtON OF VARiANCES BETWEEN MID-YEAR FORECAST AND ACTUAL ACCRUAl. BASIS JUl.Y20ll!$In II'IllIIoMj JULY Generic Revenue NonreimI> F,,~ or l!!p!nile Cal!poty ~ (~l Reason! forya!lan!:!! 1 }; Maint&nan<:e and OIlIer ()pefa!lng NR The 0IIIIIaII fa\/i:md:iia f1i'lidl waslalg<tly alltlbutallle 10 timing: $6.w ~ CanIn!ds mctforaulo ~ and oon-_viihide ~ and repaif$; ~,amatllle URR forhvat;~, 'IlIIvalor&~ repan. seady. wgeia1ion~and ~ andplanl 111IlinteMIIce; $111M at MNR for IIIIIinIenante CC>IIIrads and GeT 1IIlIlkI$; SUM at I&T primaity for major mainten_. painiinq. Sandy-IelaIed Iepair$. seady. whlde pun:he$e$ and Idly~; IIIId $ll.8m at MTA Bus n>iiecfing IIle pureiiase ofoos components iwoirediy diaiged 10 I.Ialeri8I$.. SuppIie... These f&wrllble I1OS1lIIs... padiaiiv oii'seili\i an unta_allkt varqa of ($D.6Mj al MIA HQ duo 10!be liming of 2 8roatIway mainienartce coni/a<:b. f~ juntavorable) f!.!!a!qgs fllj V!!!Ianq! 1 l\ The overall flworailia result_largely aittlbuiabie 10 timing: $<I.IIM ~ 11M! llaa lor HVAC~. 'etevalor.. escalatilf~. se<:uiilv. wgei/iiion IlII!llIIg<!menl and envijmmen\iil and plant malnie_; $oum ei MNR for ~ COt!ImctS and GeT uiiiiiles; $2.3M at MTA 8us m1ieding!be puidiis4 of bus ~ ini:mtedly diaiged 10 MaIeIIaIos.. Supples; SUM at MTA UQ ~ (I)!he \iminqof a!lfoadway II'lIIiIlI.efIa COllIJads; and S1.4M at NVCT du.1o #Ie liming ofaulo~_mde~and~and pairlljng. Partfally oli$eliill9 1IIese... _IIIIf4\1018b1e ~ Of (SUM) at SIR ftllle<lln!j I\flMIMmtIe vehid!i pun;iw;es inc:onei:dy Il\IdgrIIAId in Materials.. Supplies. 8&T was ($O.SM) IIIlI\MmIIIIe primady due io liming. x ; (.1'1 NR (5.0) (19.6) The ullfawfllble 1esUII_ piimatit; aiiributabie 10 81'1 unfatiorailic 1IIIfiam;e of ($la,1im) ei met due 10 lhelfming ofelqllllllles for bondualick.it ha!dwafe. and II ~ adjusimeililiom M.atetlals.. St.lpllles. PIIIIieIIy ~.. fesuii were IlIwraIHe \IIlIiaIlI:ieS atbiiluiabie malnij 10 IimII1g: $4.6M atllle ljrrfor ~ 1llq)I!fISe$. SUpen;IoIm Sandt tefilih and,,1iodassif1gllioll of patilg Ia<:iIltIe$ paymenls 10 MaIn""-and 0IhIlf Operating ConllM:ls; St.3M lit MTA HQ reiieciing SupersIomI Sandy repsii$ reda!lsified \0 OIt!er BtU."... Expenses; $II.7M at MNR WIl \011M! IlIrini of Illq)I!fISe$IoIIeoai sel\lil:e$. \empoi1iiy S!InIices. bri:ig.e ~and1ralnillg; and $O.3M litl&t primati\vfor lower "'gal expe!isi&$ The overall!lmmibie resull was J)I1maIlIy atlribulable 10 liming: $1.1M Oil 1lle URR lor ~ upai1$es. SIIp/IfIIOtm Sandy rwpairs and It ~ of patiig fadllies payments to Maintanance and OlIIer Operating~; $oum litmnr lelledillq Iower~ for IT, IegeI >IImIicas, acmil1ising. bridge fm;pettlqn$.i"~ ~s. me<ical senices and tmin!ng; and $3AM III NTA HQ ro!iecting Supemonn SIIIIdy repaits m:la$$llle<l1o OlIIer 8usinen ~. PartiaIy oifseiililg IIIese I1OS1lIIs _1lnfavoreIlIe var'lances 01 ($12.5MI at met due 10 the liming 01 ejqll!!l\lell tor band SIlIIIic:e$, tiioe data center and II ~ IIdjusImeIlt fiom M8lefiaIs"~. and ($O.IIM) at NTA8us malnij We 10 ~ecasted... of /nl4t'ageficy somces. 5.9 met _ $3.1MfIMIfaIlIemain/ydue to" ~ ~t 10 proie$$ii>mi1ioivic:u. MNR was $O.5t.I~ due 10 an I~ vaiuaii<m adjusimeni. SIR was $O.w fawlable, ftlleclinq non-novenue will. ~ thal_ comtt;iiv I'IItOIYiIed undarmainllil1aooe oornirads but!no:otredly ~te<l W1der material and supplies. Tm.S8 resuiis _e padl8iy aii5et 11\1 an tj'ifawtabie variani:;e of ($2.2M) at MT ABus.11IIIectino II!e purdiase of bus components thai shoijd '-been relleded IlI\der mainisii_ c:oolracts. 4.1 la SIR _$2..w IIMnI>Iemlleding_ vehicle ~slhal _ cotrediv I'flC:Olde<I under malt!iitnan... contiiids but incoijediy buiigeted under matetlai and SllPl'lles. The URR wa. SUM fai/oabie We 10 lower IJSiIQIt 0I1U111'1ln(J repair ntaltiiallor lite MU li&ei. tfeiayed C. 3 HVAC modlficalilln and pnlpiiiiion COfII/QI Ulli\lnitiaIiIIU, and liming. NVCT _ $1.6M faiianibie mainly dua 10 a IedlmiIltalilln adjusiment 10 pmfe!isioiiiii SOlI1Iie8s. MNR _ $(111M flivcltiibie dtltllo an In\IeIlIoIy VlWallolt ~ B&T_$II.5Mfavorallledualo iilwief,,~ _ II variety 01 small equijlll\enl and SUPJllY~s, Tm.M ~ -.& pat1iafy oifaet 11\100 unilivoralllec var'iance ar ($2,8MJ at MfABus. te/i!iding IIle puidiase of bus components IIIat should Mw lioon NIIede<I \IDlIe1 maiot_ toninlcis.

105 METROPOLITAN TRANSPORTATION AUTHORrrV JUlY FINANCIAL P1..AN 2613 MtD-YEAR FORECAST EXPLANAOON OF VARIANCES BETWEEN MII).YEAR forecast AND ACTUAl ACCRUAL BASIS JULY2D13 fs in miiilonll, JUl.Y Gel>6ric Rewenlle Noo<elmb Fa'olOlllble FavotabII! :.or:;.:exp!g==.. =Ca~Ie!!:II!:O!Y::.t... 9!.B!I!l1Il_,.l.IUnf=lI\IQflIbIe==",}_ (~l 1!l!! MTAHQ was a4m fim\mbioiljliiiniy _ll> the IiminII of HeadquaSlar$' reioeaiioti_. Thill red was off$ot by an II~ \IIIIIanc8 of ($(I.5M) at NYCT due ll> IMIfl\I/IlI in v.loii$ mis<:e"_~_liiid ($(I.5M) at FMTAC due 10 higher general & adminlsiialilte. ~, and safely 10$$ wnlrol eqenses. 'Jk 61i MT/IHQ was S4JIM fllv<!r.\llle IJlIIinIy due 10 lhe timing of He~1Ir$' reioaifion eosts. NY'CT was $O.6M favorable mainly _10 lower stalionefy ellljoosll$. MNR was $(I.1M fllvofllble _10 lower NJT titlbsidv paymeni$ resulling 1«IfII an a.xruailllfju$\ment. 8&1 _ $(I.5M f_abkt duelo~edaedilldebit QiIlI fees. TIIIlinQ was ~ for 1\ falii:>fable vallance lit $O.3M at lite UM. These tesulls _ pgi1idy off$oi by an IIflfavorabie VlI1Ia!IoIt of ($O.5M) at FMTAC plifl'oilliy due to higher pneral & adminislr.!fne. c;ommissions. am safety 10,$$ toniiw~. OIlIer E>qJense~ NR lui IS.o V due to the timing 01 inlehgeney ~ (2.1) (11.5) Variance due 10!be timing 01 inier-<ig8ucy sullaidles. OepmQalion NR TuWnti d1ifvtenoes 11\ projed ~ and a-'& reaching bdnefidai UH.. sujled In favorable l/lifiiint::as of 57.3M at NYCT. $2.3'" at MTAHQ, $ at MNR.51.0M at the URR.and SO &T, and an lli1favimibie ollso.5m).' MTA 8u$. 17." 1.4 Tlminl.l WlfeI8llCeS In projed completions am a_1$ tead!ing bene1idai _",GUIIed In Iaw!abIe variaru;:os ors'''.1101 at NYCT, $5JIM at MNR, $2.lM at MT/IHQ. $CUIM at 9&T aii<i $(I.8M al SIR, aild Ull'aWrabkt ~ of ($4.1M) allile URR and l$t./lm) at MTABu5. X ;- m Other Pos\-EmpIoymenI Benetits NR (2.8} (10.0) The GAS8 adjiisiment r&i1o<:iji Ute whie assoclatb<l wiiiilhe IIIIhInded 8CQUedliabllil.YfOrpust~ b<!nefils :/.,3 The GASB adjus\ment tellect5l11e wille asstlci3ied 1MIh the uniili>ded acoued IlablIiIy lor post employment b<!nefils. NYCT "'" $28.5M fawr.iliie msuling ffo!ii illilipdaied adiialiai \IIIIuaIioi> (1i.6) (20.7) 0tIefaII.1ho UIIr-lIIIfe ~ relle<:ts higher ~1Ifl eiiort$ Of ($1.7M) at MTA6ulI J)8I1llIlIy oiill4rt liy'-projeda.eqwing remedla:tion at MNR (SUM}. R (U.6) (7.8) Timing of prcjed admly was lespoll$ible fortllllavombkt V4riances 01 (S3.2M) at NYCT. ($2.5M) at MNR. (SUM) at MT/IHQ. (SUM) atlhe URR. ($(I.9M) ;IIMTACC. ($(I.5M) ;IIMTA8us and {W.3M) at B&T. (l.g) (0.21 Trmlng 01 proje<:l acim!y wu ruponsibie for unfavolllble 'Il'IIian<:t!$ of ($3.6M) atmnr. (SUM} atlhe URR. ($1.7M)at MTAHO, (".om) at MTACC, ($(I.6M) at MTAOus and ($O.5M) at 9&1, and fbvorabkt 'lil!ian<:es of 5l3.6M at NYeT and $O.3M at SIR. R The over.di favorabkt ~ WOOS primalii\! due 10!be fimiilq of projed adi1iity and I18C81>CiBs: $4.8M;II NYCT; $1.8M at!be llrr: and $O.4M;II MTA8us. 8,1 3.1 The over.dilawnhle IIlIfialIce was prill1al1ly due 10 the liming 01 project admly arid ~ S4.8M allile URR: $2.7M at NYCT; $O.SM;II MNR: and $IMM at MTABus. (2.3) 121.5) The ~ oula>n'le re~ Ihe IrnfIad of higherlladc WOI1!. ~. andslationemimnmenl ~ -($UM) at NYCT. (!!.Il) (11.2) The unfaiionibie out_lelleds!be Impact of higher lladc _rt. inliaslnlctllm, SlId stalloii emlimnmenl re~ - (S7 2M) at NYCT. am higher,jfojecl acim!y - ($(I.IIM) and ($0.3101). al MNR and the UR.R. r~ly. R Il NYeT had a fawtabie vallance of $(I.4M I'IimaIlIy due 10 lower fates. SIR was $(I.2M lavora/jle filiiinir due 10 liming. 0Ibef ~ li8riances... minor.

106 METROPOUTAN TRANSPORTATION AUTHORITY JUI. V FINANCIAL PLAN 2013 MIDYEAR FORECAST EXPLANATION OF VARIANCES BETWEEN MfD.VEAR forecast ANO ACTUAl ACCRUAl BASIS JULV1013 ($lnml1l/ofts:1 JULY YEARTo-nATE Generic: R.. 1fenU6 H<ImeImb F 8\/OtllbIe fawrable or!!!j!!!- ClII8jJ"lX ll!..b!l!!le IUnfIMltllbleI Rea!lOll! "" Va!'!an!jg jljnllmmlblel 1ffipo!!S for VlIIjanp!! I 111!!l PeMlom R (1oll {4.3} Tuning was ~ lor an unfalionlblt variai'ia!> Gf (S12M) at NYCT. 11.9) (.t.t) TlITIing _ resjloll$illfe lor untawmble variances Gf (SUM) at NYCT and ($I).lIM) at the UAA. OIh6r flinge lieiiefiis It NYCT and lhe lim had flm>iable ~$ Gf $O.5M an<i $O.4M primarily The timing Gf JIfOiect admiy_ responsible for lit IawraIJIe variance Gf due 10 Ute UrnIng Gf projed 1ICIMIy. 51.OM at lhe LIM and lui ~ """"""" Gf (il.lim) at NYCT. MTACC _$(I.3M fa\iofiiilie I'I1O$IIW due 10 lower olll!lllead rateii. R~Owmead R TheIiminfJ 01 project admiy _ ~ fof IaVOl8ble variali<::es of (1.5) (OBI The liming 01 pmjet:t actmiy _ te\ipooiiitife fot an untawnlllie variai'ia!> l'.6mat MTAHQ. $1.DMaINYCT an<i$o.8m "ININR. of ($4.5M) at NYCT and Ilwor.IbIe wsiaiia>$ Gf $2.6M at MNR and $ almfahq. EIedJic PlMer It (0.0) (0.0) Aueney variallc&$ _ minor. (0.2). Ageoc;y 1f8riaIlc:es _ mioor. Ir>suranc:e II The URR was $O.2Mfawmbloo due 10 IDwerJlfOiect admiy.!l The lirr had 8 fawrablevarianee o1$o.6liii due f<l1ower pmjed adiviiy. >< MailI_ and 0Ihef 0penI1II1g R (2..2) (64.7) The UrnIng ofpmjedactmly was ~ lor untawrabie...m.-s Gf 14.5) (13.7) The liming of pmjed actmty was fmpoiisibie lor UIlfaYorabIe variances T --.J C-.cI$ i$1.2n) at NYCT and ($(I.lIM) atlheuaa. of (SUM) at NYCT. ($1.!lM) at MNR. and ($O.6lIII) at lhe LIM. P.otessionaI 5e_ Coo!racIs R MNR II"" MTAHQ _favorable i>y$o.1m and $O.6M,~, due (O.&) (2:.41 NYCT had an unfavorable V!IIitIna> of ($2.8M) mosiiv due f<i IIle liming of f<i IIle Ilming at projed adhiiiy. wi\iie MfA CC was favorable by $O.3M. IT~. data _. EO!' mainlenarce II. repair expenses. The PIItIiaIy oifllell.in!1 ti>e$e mulls _1lI\t.MlratIf<I varian<:a:j Gf ($O.6lIII) at liming of project admiy waslllsf>ol'lslble lor an unfavorable varian<:a at NYCT Que 10 IIle liming of IT lian!waie... seli and (SO.4M) at lhe LIM (SUM) 811M LIM, and fawnibie ~ of$2lim at MNR and due to IIle IiIIing Gf project adiviiy, $1.3M 81 MfAHQ. MfA CC was SO.3M flwonlble due f<i II1II""" Materials &. Supplic$ R NYCT was $t.8m IawrabIe due f<i 1M!irnIng 0/ noo-wltk:ie main~ TIIIIinIJ of project activity \118$ fmpoii'libie lor IawrabIe ~ 01 M\lIiremenls. The timing of projeci admiy was responsible forfavoolble $5.1M at UNR and $0_ at IIle LIM. NYCT was S2.7M fiivoratiie due: varisflou 01 SO.!IM at boll!... URR and WlR. f<i IIle IimIIIII of I1OIWIII1ida maintenance requltemen~. These,.. _ pllltilllly oifsetby 811 ~ ~of t$o.6n) 8191R due 10 material tequlienient$ lot.. and 51. George sljiiion pitljeds. 0Ihef IIusines$ Expenses R Tlmingwu IlI$1>OIIS4bIe lor~ ~ at $0.4'" and SD.3M al Agency l/8iilirlcil$ were minot. MfACCand NYCT.~.

107 METROPOUTAN TflANSPORTATtON AUTHORITY Jut Y financial.. PLAN * 2013 MIDYEAR forecast EXPLANATION OF VARIANCES BETWEEN MID-YEAR FORECAST AND ACTUAL ACCRUAL BASIS JULY $ In '-'1 Gene"" RaY Norueimb 2! ~- CllIellQly ~ Subsidit4 NR JULY Y AR..TO-OATE F.-abIe f~ ~ Rea!!oM for Ya!Ia!t!:!! IUnfa-ablel Rgsgns flit YII!8m1;e I!Ii. I!Ii D.9 " The fawtabia ~ "tw.l million Ioi IIle monlh was due pnmariiy to 5~Ui 1.S The Glfghlly lavorabie year-to-dale WIktIIt;:& of $59.& lliiiiion reiiedl> hiqtler ~ for NYC Operetinq Auis_ ($35 mlfianl due to IimiI1Q. mustlir higher NYC ()pe!aiing A.uItIaIIce ($35 million) and PMT ($34.0 and higher relll eslate IranSllCliDRs ($15.11 mllliool. PDT InInsacIicns were million). bout due to liming of ThIs Is f)liifiiiiy olfse\ by also favomble ($6.9 million} _ to IIle IimiIlcI of booi<in!j!he...,... This IIflfavoaIIlle ~ for City Subsidy to 1M.&. \lu$ ($12.9 million) due to waaf)lllfillly oifmi by II!werlhan-foIecasIed CIty Sub5idy to MTA Bus ($U ti!l'irl!l. milion) and lower PMT ($5.2 miiiion)"" to 1imiIlcI Oo:blSeI\ril;e NFl The tawtable 1II3llance is due to lhe rewrsai of a ptior IlmlnQ adjuslmetnl 14h 1.1 The lawrallie year-to-dale variaiic:e Is mosiiy due 10 lower than budgeted "'/aled to IIle 8AS subsidy and lower IlIan budge'*' variable lilies. variable raiits.

108

109 ~~~---~--~ , METROPOLITAN TRANSPORTATION AUTHORITY 2013 July Financial Plan - Mid-Year Forecast Overtime Reporting July UnschedulfJd Service was ($3.1 M) unfavorable primarily due to traffic, breakdowns, and related ramp delays in the Department of Buses at NYCT. Weather Emergencies was ($1.7M) unfavorable, primarily due to continued Superstorm Sandy-related work, in addition to heavy rain and hot weather which resulted in more bus roadealls at NYCT. Safety/Security/Law Enforcement was ($1.5M) unfavorable primarily due to coverage requirements of MTA Police. Scheduled Service had a favorable variance of $1.5M, mostly due to the conversion of overtime into increased headcount in the Mid-Year Forecast This resulted in an increase in Payroll and a decrease in scheduled overtime at MTA Bus. XI-10

110 ~---~ Metropolitan Transportation Authority 2013 July Financial Plan Non-Reimbursable/Reimbursable Overtime ($ in millions} NON-REIMBURSABLE OVERTIME Scheduled Service Unscheduled Service Programmatic/Routine Maintenance Unscheduled Maintenance Vacancy/Absentee Coverage Weather Emergencies Safety/Security/Law Enforcement Other Subtotal REIMBURSABLE OVERTIME TOTAL OVERTIME July Mid-Year Forecast Actuals Var. - Fav.l(Unfav) $15.9 $16.0 ($0.0) (0.2%) $6.8 $9.7 ($2.9) (42.5%) $12.5 $15.0 ($2.5) (20.3%) $0.2 $0.7 ($0.5) % $8.3 $10.4 ($2.1) -25.1% $1.8 $1.4 $ % ($1.3) $0.5 ($1.7) 138.4% $1.2 $1.6 ($0.4) (33.9%) $45.5 $55.3 ($9.8) (21.4%) $8.4 $10.8 ($2.4) (28.6%) $53.9 $66.1 ($12.2) (22.6%) July Year-to-Date Mid-Year Forecast Actuals Var. - Fav./(Unfav) $109.4 $107.9 $ % $52.1 $55.3 ($3.1 ) (6.0%) $81.6 $84.8 ($3.3) (4.0%) $1.8 $3.0 ($1.1) -62.7% $44.9 $49.7 ($4.9) -10.8% $36.6 $38.3 ($1.7) -4.7% $7.3 $8.8 ($1.5) -20.1% $7.9 $8.2 ($0.3) (3.5%) $341.7 $356.0 ($14.4) (4.2%) $71.8 $79.9 ($8.1) (11.3%) $413.5 $436.0 ($22.5) (5.4%) * Exceeds 100% NOTES: Totals my not add due to rounding. Percentages are based on each type of Overtime and not on Total Overtime. SIR Overtime data is included in "Other"

111 ' METROPOlITAN TRANSPORTATION AUTHORITY 2013 OVertime Reporting OVertime Legend Definition Scheduled Service Crew bookireguiar Run/Shift hours (above a hours) required by train crews, busltowerlblock operators, transportation supervisorsjdispatchers, fare sales al'lcl collection, Train & Engineers, as well as nonwtransportation workers whose work is dired!y related to providing service (includes coverage for holidays). Unscheduled Service ProgrammaticIRoutine Maintenance Unscheduled Maintenance Vacancy/Absentee Coverage Weather Emergencies Safety/Securltyll.aw Enforcement Service coverage resulting from extraordinary events not related to weather. such as injuries, mechanical breakdowns, unusual traffic:, tour length, late tour relief, and other requirements that arise that are non~absence related. Program Maintenancewor\< for which overtime is planned (e.g. Railroad Tie Replacement, Sperry Rail Testing, RUnning Board Replacement Programs). This also includes Routine Maintenance work for which OT has been planned, as well as all other maintenance not resulting from w@ol'dinary events, including running repairs. ProgramlRoutine maintenance work is usually performed during hours that are deemed more practical in order to minimize service disruptions, and indudee contractual scheduled pay over 8 hours. Resulting from an extragr9lnarv event (not weather-related) requiring the use of unplanned maintenance to perform repairs on trains. buses, subway and bus stations. depots, tracks and admini8tratlve and other facilities, including derailments, tour length and weekend coverage. Provides coverage for an absent employee or a vacant position. Coverage necessitated by extreme weather conditions (e.g. snow, flooding, hurricane, and tornadoes). as well as preparatory and residual costs. Coverage required to provide additional customer & employee protection and to secure MTA fleet facilities, transportation routes. and security training. Other Reimbursable Overtime Includes overtime coverage for clericai, administrative positions that are eligible for overtime and miscellaneous overtime. Overtime incurred to support projects that are reimbursed from the MT A Capital Pro ram and other fundin sources. XI-12

112 MliTROllOl.lTAN mansporiailon AImIOl'tITV July Flnanellll Plen- 2Ot:l MIItYear ForaI:aat Consolidated Ael:rual Subtldy DttsJI Jllly $ let mft1i<om) ~~I\ 'f",,'_co,* Ac_ SUII1lI111aa: Mlcl-V.., F_I _I 110m... MIlI-Vu, F...,.. I Mw.l Va_ill /:H<I/e_T_ rtontpol1.«.' Opotaoov " _oe FlUid {MMTOAI ",_.tt"" 1M U $1.5111,2!.StU 3-4$,$ 3-4U (1.9) MRTI ("", ) WRT2{Oll>") \11.5 U ZU 3. 10,5 2~ U 0.7 5&.1 eo.s :.4 Vll>llnTi.... '... 11_ 41.8 Sltt" 5U SW.t UU ~,O (1.5) U. {U $2.:112.& $2,184,1 $3.$ New_ T._ and F_ P*Y"lll_... Tu ptyo'ollalibiilt,i T R.I'Il~ FII!I4f MTAMlT... '.010.mll._ Ill..,.... _ N $ OII'tltk>g AlIliIlanU Nye ami l-' jab: NowVorltClty Nllla\< ColInly Molt<. CcunIy We_ lore,," COu.t,I CMoII... C_1y Orll\9llCOuo... Rockland Couoll' eootsubtldl.. _.11 &1m..,,,,,,,... 1lI C<t<HcaiH r",.. t. litoo..iid L_I liubildmt. 77.& 01.4 M 't3t.~ , , ", {s'2 81,4,UU {1M!.!> 15U 35.C 1M 2.e IU 0.3 tau UU (:', ~> UU.I,-.,, ", 7na.,1.6 :\0,0 t2u HU 14&.2 $1,04a.? $1"':1.1 nu leu 1$1,9 11M :)S.D lui ,$ ' u 0.4 iu 0,\ ,0 G.O.1.5 <Ie.'. (0.7) 11M liu OJ! $<leu $&11.2.~ $1,....l,tn.! $12.' City SUbsidy to MfA!Ita 21,t 20.0 (8.:l) f7u flu (lui T 0111 o.dl o.d TI_.. a_ and Loc.1 eulalia «1,1 «,07U U.uu m.' _..q.... yluboldy S6TOpo... gs"""'. r,..li!tr 0. 8 '41.' SOl "YO U $'" ", al. ' 387.J 52. t31u '"7.1 m. TI>t&I Accrued SUbaidiea 'wc...,v.i!lt;o.r.;it_, r..,illdauior..,.i!ip_ "ola; tliilafllll_... M to fllulidiaci $<leu mu m.' «.UI.' : $112.\ XI-13

113 ~AH TAANIII'OlUATIOH AllTMORITY July Fln.!\dllIPlaIJ M1d-VorFOftc.. t Contol14tltll Accrual'ubtlcly DmU ElqIl.ndOIJ orv./iiinc.. II in miiiiomj M_~"" ~,"-"-.,, 1-- "' !Mm'{IIj!(_1 larl';'l2{g, 'l \Jl.,."T.. ~oil~ju NowV"'CIIy =... [CIIv~"UTI\s.. ~fif OponlIov lluipioo'tfoomot "'7- U ""':"" Juiy l 13.l'!1 ~r--.-._tornl(...,pri<oliift""""""'_'_i>yut"'~ m..._it_1<>... II.W...,., '.1~ r,.i_o;i... --_.torlm llliil«-..,-'mrt.\... _. _,..-_... d... lo 11>01... U 24.l'!1 1MIT2..._...,~lh.. li>of..._,.,1ho_... Io.. ~MRr-l i".._v-~---.oiiqmiy-. "_ 10.0 ".0% \Jl!Mn_' '_abl.".tii._... "'NgMt_~""... CllyInJlOlY. V... ci... lh._. lui (UI> TlI.'...-.III_... l:ii.. ocif... lo.mino"'~_. m '50 U~ n.. 10\1...""'''II oi~... H 34.2% itno f""... _.,., ptllmlily10 Ii"""ll. '1'... _... 'oro-. {1.21 ($.11% """ f... a_d.o'_.. roi_io... ~oi_~i.. MTI\... U II.'" jvari....,.limi"!l"'... IoioIII_. "'4M4"'~ 1'---- ~- P IMIn... T.. MRT{Il)t{Gtoso) IMITtbl2(!If_1 \/IIIOnT.. Pal/t.. MoIlIIIIVT... -"''''''CI>f ~_di" ClI)'$>.1bIl<!rIOMTAb "rop... tino~tf_ Vlfjf~ ".- % I!<~-$ ---r--" -"".. lui (0&11:... """...,.. 11>0_ 0.1 o.s~ h... pi... 'DO /or'" "'_. :,. 4.1~ 1In~... m"", II.$] (UlI>..."""_Iot1ll , ho.. ~... '50 :/1.11% ".xpt"-onfortht ~ (01) (lm4 1In pi... t... (1U) u.a {2.7%!-apiatiltM tot tbemomh, 10'1 V fo... tilio.iii..._... ptlimiiiy ".'"",0/11><*1"".-- XI-14

114 ....._._..._._------'--_... METROPOLITAN TRANSPORTATION AUTHOFUTY JULY FINANCIAL Pl.AN MiO-YEAR FORECAST (1) OEBT SERVICE ($ In millions) Dedicated Tax Fund: NYC Transit Commuter Railroads DedJcated Tax Fund Subtotal MTA Transportation Revenue: NYC Transit Commuter Railroads MTABus MTA Transportation Subtotal Commercial Paper. NYC Transit Commuter Railroads MTABus Commercial Paper Subtotal 2 Broadway COPs: NYC Transit Bridges & Tunnels MTAHQ, 2 Broadway COPS Subtotal TBTA General Resolution (2) NYC Transit Commuter Railroads Bridges & Tunnels TBTA General Resolution Subtotaf TBTA Subordinate (2) NYC Transit Commuter Railroads Bridges & Tunnels TBTA Subordinate Subtotal ITotal Debt Service Oebt Service by Agency: NYC Transit Commuter Railroads MTAaus Bridges & Tunnels MTAHQ ITotal Oebt Service Jufy2013 MId-Year Forecast Actual Variance Variance $32.2 $31.3 $ (O,O) $38.9 $38.1 $ % $67.5 $67,4 $ (0.3) (0.9) $110.8 $111,9 ($1.0) -0.9% $1.8 $0.0 $ $3,0 $0.1 $ % ~ (1) Forecasted debt service is calculated based upon projected monthly depot/is from available pledged rellenues into debt 1IeI'IIice accounts. Aotual paymenls to bondllolders are made from the detlt service aeeounls when due 11$ required for ead! seriea of bonds and do not c:onfml\ to this SChedule. (2) Generally. the calendarization of monthly debt service deposils it calculated by dividing pro/eoied an/iuat debt service by '2. Month to month variatlon4 \liming differences"} on the exlsting debt portlolio can Qccur based upon. among other thing., (a) for all bonds, the date when Income from the securities In which the debt service ailco\lnts are invested becomes available IISrIH. (b) for variable rate flnancings. differences between (I) the budgeted In!erest rate and the aolual Interest rate, {ill projected interest payment dates to bondholdel'$snd aoluallntel'esl payment dates to bondholdel'$, and (m) projected monlhl~ funding dates rot acerued debt service and actual funding dates, (ej for transactions with swaps, the difference between when MTAITSTA funds debt servicc! and the recelpt oflhe corresponding swap payment by the counterparly, and difference between rates recelved and rales paid and (d) for QOI11m.rclal paptr, the interest payment date is the date of the maturity of the oommerclal peper $11(/ the dealers set the term of the commercial paper (rom 1 to 270 days, which!$ not foreseeable at \lie time the annual debt service budgets are prepared. (3) Debt service Is allocated among Transit. Commuter. MT A Bus, and TBTA categories based on actu.' spending of bond proceeda for approm C8p1tal projects. Allocation of :2 Broadway COPs is based on occupancy. Tatsls may not add due to rounding. % $1.1 $1.1 $ , $1.5 $1.4 $ % Lower than budgeted variable rates; $14.9 $14.0 $0.9 reversal of prior timing related 7.0 6,3 0.7 to BAB subsidy $39.8 $31.8 $ % $6.0 $4.9 $ Lower than budgeted variable rates $11.0 $9.1 $ %. $ $ %1 $123.5 $118.8 $ ] (0.9) $205.0 $192.3 $ % Explanation Lower than budgeted rates. I XI-15

115 -----~~-~~~----- Dedicated Tax Fund: NYC Transit Commuter Railroads Dedicated Tax rund Subtotal MTA Transportation Revenue: NYC Transit Commuter Rallroads MTABus MTA Transportation Subtotal Commercial Paper: NYC Transit Commuter Railroads MTABus Commercial Paper Subtotal 2 Broadway COPs: NYC Transit Bridges & Tunnels MTAHQ 2 Broadway COPs Subtotal TSTA General Resolution (2) NYC Transit Commuter Railroads Britiges 8. Tunnels TBTA General Resolution Subtotal TSTA Subordinate (2) NYC Transit Commuter Railroads Bridges & Tunnels TBTA Subordinate Subtotal ITotallJabt Service Debt Service by Agency: NYC Transit Commuter Railroads MTASu$. Bridges 8. Tunnels MTAHQ ITotallJebt Servtce METROPOLITAN TRANSPORTATION AUTHORITY JULY FINANCIAL PLAN -MIDYEAR FORECAST (1) DEBT SERVICE ($ In millions) July 2013 Yearto-Date % MldYear Forecast Actual Variance Variance $192.6 $191.3 $ (0.21 $233.8 $232.6 $ % $426.9 $425,4 $1.S 256, (1.6\ $708.5 $708.1 SO.4 0.1% $4.0 $0.5 $ ,0 $6.6 $0.8 $ % $6.7 $6.7 $ $8.6 $8.S $ % $110.2 $111.5 ($1.4) sa $258A $253.7 $ % $41.4 $40.4 $ OA $75.9 $14.1 $1.8 2:4%,. I. $781.7 $775.8 $ (1.6) , $1,291.9 $1211.& $ % Explanation Lower than budgeted rates. Lower than budgeted variable rates. Lower than budgeted variable rates. ~ (1) Forecast$d debt service Is celculated baaed upon projected monthly deposits from available pledged revenues into debt service accounts. Aclual payments to. bo.ndhokleo; ate mede from the debt service eccoul'lts when due as r$quired tor each series Of bonds and do not ecji'ltorm to this sehedule. (2) Gem~rally, the calendar/zillion of monthly debt service depositll ill calculated by dividing projected annual debt service by 12 Month to month variations (,timing differenoel') on the existing debt portfolio can occur based upon, among other things, {al lot all bo.nds. thl!" dati!" wilan incoma ftom the seeuritles In which the debt service accounts are Inllested becomes al/llliable varies, (b) for variable rate financing" differences between til the budgeted Interest rate and the aeluallnlere,' rete, iii} projected interest payment datu to bondhotl:lera and actual interest payment dates to bondhoide(l, and (Iii) projected monthly funding dateafar $CCI1.Ied debt service and actual funding dates, ee) tor Iransactlons wllh swaps. the difference between when MTAITSTA fundi debt service and the r&eelpt ot the eooesponding swap payment by the counterparty. and difference between rates received and rate, paid and (d} for commercial paper. the interest payment date is the date of the matooty of the commercial papar and the dealers HI the term of the eommerdal paper from 1 to 270 days, which is not foreseeable at the time the annual debt "!'Vice budgets are prepared. (3) Debt service ill allocated among Transit, Commuter, MfA Bus. end TaTA cateoqries based on actual spending of bond proceeds for approved ClIpitel projects.. AUoeation of 2 Broadway COP, is based 01'1 oc:oupancy. Totals may not add due to rounding... I XJ-16

116 _r_ ~-, ~ 1"---'" Uft~-t(GtlJ$ltJ i""1"'> 1_ i""""aor1""_ i"'-'a 1" ~~T.fI:III 1"-"..., AoaI- 1-"""""- [r<re...,.. """,v...,,.. 1--"-... """'" Iw-"""'" -~ --- _c_ -""""" -- COO<_... ~~I a.._"altab "'~ "'t4""'" --...,... "".1 $1.$.... $, uu In' I.~.I.... "-1 21." f>u ,... sao 4.,,4..,.,,,-, l"ai $1.1&.1!Uf.l'l... 1-'41 s... "...!ful.».. 'tt2,.t U \UUl WU -'l a. u llu IU ~ _--,- CIIIII~T"'."""'l.aII:JIi"""'"... _._-, -"..- _-" ' T ' ~- '*"1 IU $IU u 1.1 $15.1 a..., to tiu IOU >tj) "1.1 ttta.t M6TROPOUfAH TIWISI'OI'I.TA'I1ONJW1'HORI1'Y JuIv 2I1U_YMrf_ -sa C<tsb _Idyllfloillly""..., ""'-I. '!III "11 U... 7 u '.I> flu u u G.' U...,... QU $1toU 1-'...»U ~»t., , a.. (SUi IU... - : I -,.01 tu ~.I 11l\IJ u 1'J~ mz _ U JU ",6 tau!... I$Ui _... - '.,,",,- 'low....!' ,- ' '" 'UU SitU... lui lu IIU) lu- lu tu 'U,... a./i! ki U al t,l U 0.' ItO U lii-o (tur " tu W.O ~ '%.6,~ e." ao ' loa... St.'!lUI u OJ>... 'fuj',»'1 U "co..... U!.,. u.. 0.' u... t.o U 0.' u C.O,,,,OJ 0., n.4 l.' SitU ".... tao w.. mz I$Z.II ilit.' mz ""'l'l 'U,$ 51J' >I.... $_ ,... W.&..., uta IIZ$.t tn.~...,"'.., U.. " au... 4I6.t ,,.,"03 uu..,.. trui

117 ~r... x ~S-~ = ~r_ iw."""" W" r--_r ~4lf~ - -- """"!~_ ~_r.';'~,,"... T. ~~.I - i "'''' r,..._... ~~1 ~"W\'CM. ~...,. ~D!... fu wtdu/lr.ol~... ~-- ~... --,..!'-y... eoo 1"-"""""" -, ~... -'I :! ~... I "-<... ~... : I b " ~--_&_.....:.1 I-o-_T..._... t...- $1,".1 f--... " >'-_. T_ P<n- 1->- '~ 'l,~~~n.4 4.~vtlMdlt~;r.,_~~f.,..-~ ~ r.t ':15.1 mv ~.c..s..... ~ - - '- _v_...,~-, m_ Il< 11"4 m.. (IU $ (1:1:,4 -.. _11 - os >.' ttos,5 u U... f$1ouj ' t2u... U -... J III u 4'"... utu Ifltf.tl..., "... llltf.tl 'lir At ,,UN.>!S.!~ --- MEtilOPOUTAN TAANIlI'ORtAtlOII_rv JWt~PIolIlIt11_Y_F_ ($"'_... Cult &<I1ooldy 00I0.1>y..., =,0.<... JUt... Ill' 140 $,'U "'~i U. I. -.u _. '11.9 I... IIlJII "'" "" <t a : U... 5$Jf - 5A... " U '" U... U (O.~ -.. \ii.< (0.>:... (57", w.t IIJ , I.t tl.7... \SIAl... :!O» H - - au.> II... It_ -=t,13 l'" -~ ~ == -- - f_... It OJ> S~, W!1:S..... a....,.... \IMi "'. u ' 1,J"" "." 5U fin sr.'..... ~:l ~$ (J'Ui - - a$ im! P.$ :,..,~51 IOU,... - ".>ft?... u IJt.!I - Tn" T1U lui a,.. n <to to..... ~...,.,u (f.il "1.0 "1' ~ (it., - n U 50 U u n u 2 III - 8.i 02 (lull IUj... <IO.t {o' lu ".,0 iv," loco.-... loa... _.. fw.t \1>.41 loa... $1.u,1tU... _1.1 $l$'i4.5 {II'I~ -$ U.,U 1!U U $ I"'" $ ta.ttu ItUI - -. nh 3~U $>#.A SlIt 'U... ltt4.i u.... -~ "",!..

118 w._~ J c,.01\~ ", sr.,. MRr"'ttGrouI Url>... T.. ~-1r.. _CoolIIY _CWOlY -CWn!y COOT~ $lallor>ma Cttv $\Iblldy '" MTA... eu O$I<IroIIltIil e..q,... T'_er ~-"'-... "'"';"". (IU) (UJ ('U) (U) t.' U 0.1 U la.o M.1 U METROPOUTMl "/'RAHSI'ORTA1'10N AIfI'IoIOI'VTV July fllllllcllii PlII\ 2tl13 MkIV... 1'onIcMt COIIMIIdlIttd Subtldy Cuh!lqIIlIIUIIlon Of VerI_ "'''_1 Jl!!r '-.~ 1f>.. 1~,:2"" TIt. "",,,,,,,,allhlv_/orul*_mll'iti) _"'l>eduotglimlftg"'ia'/o. 13.1'11 Mllt'r.f -" riqilplo... IIIfII>IIV Ula!l\l4g1lIf<><UIo_, d... to_'_""i'ooiodmrh.d!.,;ty. YItl~w,,",_"UIo~.27.9'4 TIto...,._._lotthl_w".I\>_tI!~,",.<!II'_"New_eMy. ~''''_IIIe ''_~''''''''_.,a'mi-) TItolliQlI!Iy,.r"'*_... t.b04.. "'~_1J, V'''''''''''I11._ 1>t... VOt'/_"'tllt~ toollo TItoIll Iott"" '"""'" todyltl """""'"... "". tollmiho. 0',.'00% TItof. IO'tne_tod'iTl)~_""'IO~«PIY!1lIlt\ll. >100% jln..1_vart_i<!rw_... YItl""""""'... tolimi1!o.'ihi)'iiitiii.""ti!i_w...,..,.,..lotlmlitil YItl~_IIiOI>IIY_IlI~ ".1'11 TIto >\00% ~r. w.. iwtlo UIo\imlllOofrlQllplO.,rp~ ~ 100'11 ".. w.. mosliy1!tl1lo9_.or_... 'oi_tothtllmlftgof_ obiif/lit_f<><wasi4, 'iti).._,..."'tht'_iii. 10." jn..,_._iotim_... 'iti)w... """... tlyt6timlngol"""",.... '1'_40-0._ ~ruoil<mg' PImcIo\Nm ~I\'U T.. MRT"'I(~ UiWtnT.. Pt)'1"~l... SbI!<lli<C<Ni1I)I _... <:ooto, edot~ moi/onmoint_ C., au&<l<i)' to t.rra a. 1I&l~_Tl...,., (lul 12.$1 ItU) (U) 19 U e.1 to,s) ($7.0 U 14,6 ",,1M; Sto 0_"" I!>Omontlt.U% ~'_fo<ii\6_. (3.1110) Sto.~.. I<!ru.._~. (07%) &oo""",... _filtulo",ontll. 5t)1JII _~I<!rlh<t_ $0,0% Isow-_IOI'II''''''_. 4U% Isoa... - rottl!em.ntii {U,"] 1-_lIIatlllllOrtl!t...ut (100%1 Thl. Y!O _tow ptmorlly 10 tlm'lg '" P."... U1Io 8oe... ~1<!r""'_. U%... "I>I...,..IO<Ih<t_, XI-19

119 , METROPOl.ITAN TRANSPORTATION AUTHORITY July Finaneial Plan 2013 Mid-Year Foreeaat Total Position. by Function and Ageney JlIl~ 2013 MId-Year Favol1lblel Category Forecm Actual (Unfavorable) Total PosltloM 66.S08 65,235 1,514 NVCTransll Long ISland Rail Road 6,712 6, Melro-Nortn Railroad 6, BrIdges & Tunnels 1, Headquarters 1, Staten Island Railway (1) Capital Construction Company & Bus Company 3, Non... lmbursabl. 60,376 $0, NYC Transit 41,721 41, Long Island RaM Road 5,&44 5,896 (62) Metro-North Railroad 5, Brldg.. & Tunnels Headquarters 1, Staten Island Railway (1) capital Construction Company Bus Company Relmbumble ,233 1,2GO NYC Transft 4, Long ISland Rail Road Melfo-North RaUroad Bridges & Tunnels Headquarters Staten Island Railway 3 3 capital Construction Company SUs Company T$IFuIlTlme 16,625 64,968 1,.68 NYC Transit 46,241 45,211 1,(lSO Long Island Rail Road , Metro-North Rllilroad 6,155 5, Bridges & Ttmnels , Hl1ladquart&nl 1,711 1, Staten Island RaJlway 276 2n (1) Capital Construction Company Bus Company , Total Full-Tlma Equivalents (84) NYC Transit (82) Long Island Rail Road Metro-North Rallroad 1 Brldg.. & Tunnels Headquarters Staten Island Railway capital Construction Company BlJsCompany (2) 1'I0tII: T otii_ may difi'er dlle to rounding XI-20

120 METROPOLITAN TRANSPORTATiON AUTHORiTY July Financial Plan 2013 MidYear Forecast Total Positions by Function and A{iflncy July 2013 MlcIYNI' Favorable! FunctIon/Agency Forecast Actual (Unfavorable) Aclmtnlttratlca 4.m 3, NYC Transit 1, Long!$Iand Rail Road Metro-North Railroad Bridges & Tunnels Heaclquattatll Staten Island Railway (4) Capital Construction Compcany Bus Company Operations 29,41' NYC Transit 21,191 21, Long Istand Rail Road 2, Metro-North Railroad 2,121 2, Bridges & Tunnels Headquartetll Staten Island Railway (5) Capital Constructlon Company Sus Company ,418 (11) MaIntenance 29, NYC Transit , Long Island Rail Road 3,735 3, MetroNorth Railroad 3,451 3, Bridges & Tunnels Headquarters Staten Island Railway Capital Construction Company Bus Company 1, Englneerlng/Capltai NYC Transit long Island Rail Road Metro-North Railroad Srldges & Tunneis (14) Headquartetll Staten Island Railway Capital Construction Company SUS Company Public Safety 1, NYC Translt Long Island RaH Road Metro-North Rartroad Bridges & Tunnels Headquartstll Stalen Island Railway Capltal Construction Company 8usCompany Total Positions 66,808 61i,23S XI l

121 METROPOLITAN TRANSPORTATION AUTHORnY July Financial Plan 20'13 MldYHf Forecast Total Positions by Function and Occupational Group July 2013 MldYear FUHCTIONIOCCUPATtONAL GROUP Fot'eC6$i Actual Variance Favorablel (Unfavtlrabkt) Admlnlstnltion 4.Z17 3,975 ManagersiSupelVisors 1,m ProfessIOnal, Technical, Clerical 2,435 2,431 Operational Hourlles OperatfCna ae,416 2$,046 MenagerslSupelVisors 3,343 3,290 Professional, Technical, Clerical Operational Hourll&s 25, Mafntenance 29,596 U,6" ManagerslSUpel'lllsors 5,259 5,014 ProfessiQnal. Technlcal. Clerical Operational HQurlles n,419 22,121 engineering/capital 1,868 1,698 Managers/SupervisOfS Professional. Technical, Clel1ea1 1, Operational Hourtlea 2 2 Public Safctty 1,662 1,801 ManagerslSupervlsors ProfessIonal. Technical, Clerical Operational HoUJiles Total PallIon. 6a, ManagerslSupelVisors G,494 Professional, Technical. Clerical 6,&18 6,520 OperatIOnal Hourlf" 48,951 46, , XI22

122 Y H1.r:;(lU MTA Subsidy, Interagency Loan and StubihZlltilll1 Fum.! TransactIOns' Cash Basis -V~'l{.J,) (millions) Curnrnt Month SIAbl!i~tio!! F!!od Y~r to Oat!! $labilinliol! lil!oo!.::!imw!lter I!:u!i! Cllmmllrer I.!::lm!!! (Gene!:!ll<ll} ITAStal!} Telal {GwuIE!D (TASlabl Tooo From Date: 07101/ ollotib OIiOltll To Dale; t/ll 01f3t113 07/ /3tfB 07flll13 Ol!S!!ine. Ballll&! SI $ $ SZW.736 5J.15,183 S335JJl9 RECEIPTS Interest Earnings , New tockslare State um.! regiooalmass tniiisit taxes MMTOA ,400 M-rfF &.539 4ll J' Total DediCllled TiIXeIi Received i.)72 761,191 T.es:. DTF Debt Service- 6, , Net OeAicated Taxes fof Operations 4& , l'ayroll Mobility Tax ,00/) ,44{) Mr A Aid Trust Taxes ,248 16S.61l1 Opernting Assistarn:c 18b 0. ) (},OOO UU 39, NYS School Flires (},OOO (},OOO Additional Mass Transp Operating Assista/li:e 0000 nla ,000 nlli (UlOO Total New Yolk Slate S48.9'12 SlOHl63 SI S42U06 $I,132.t24 SI, !.esiI Dutchess County X Operating AAIStarn:c Ilib $0000 nia $0.000 $0.190 nl4 $OJ 90 Station Maintel1a/li:e nla ~ rua w Nassau County OpeTlltlllg Assi~ lsb nla {},OOO nla 5,792 Station Maintenance n!a ,000 nla, i.i.000 NewYorkCIIY Operating Assislaooe IIIb , Urban Real Propelty &; Manage Rerocding Tin nla ,985 nla lI73 Addllionai Assistam:e New York City IJia ,000 nhl (tooo Station MaintCllllllCe DIn IIfa Orange CQUllly Operating Assistance Illb nla (l,no nia Station Maintenanc<l rua O.4!14 0A84 nla (I.4M Pumam County Operating AsslSta/li:e 18b nla 0, nla Station Maintenance nle wac Rocldand Coonty Operating Assista/li:e IIIb nta (.l.ooo Ilia o.ms StatiOll Maintenance 0,051 nla nib 0.(151 Sui folk Cmmry Operating Assistance - ISb nin 1.&19 $,638 IJia SJ>38 Slatioo MlIin~ 17.5Q1. Westebester County nla nil O/lilflltmg Assll!tam,e - ISb nla n!a $,507 Stlltlon Mainten.lll1l:c {WOO nla nfll O.OUO Total ' Local $ SISl,657 St $ $

123 l'rolll Date: To Date. MTA Sull5ldy, Interagcn/:Y Loan and SII.bili:Mtion fund Trnnsac\!oos - CJlSlt Basis (rmumns) Current Monlll Stabilizatjon Full!!. Year to Oak'Stabilization Fund Commpter I!:l!.!!.t!t Cnmmpter Tansil (!!fuwl FIt) ITA Stabl Tot!1 (Gene..,.l YtU ~ I2Il! l ll3 07/UlIll OIIOIIIl /31/13 07f3l/1J 01( / j\ff A BriI!!!e$!UId Tyneels- fuuplus TraN(rtl! % W % Total Subsiay and Other Receipts $ $237 1t4 $ $ $1755,466 MTA Soums fur Wl!er"'"'W' WlI5 B& T Necrssary R«tlIlStmction R.i:setVe MfA C.piml Prognun - Non-Rcsoluuon Foods MRT -2 Corpof1lte Act()oot 2012 OPEB Luan TotalLuans ${).OOO $0,000 {tooo (tooo $0,000 $0.000 $0, $0.000 ${),OOO $ , {WOO $23,000 -$ $ lOO {),OOO (),OO{).. $0, U27 Continued on Next Page $ I $ SI? Cootinuoo un Next Page $2.4 IlU 72,,_._.,----, ~~~~----~~~-~-~

124 8n)!!!!!!1 furwarg fmm prior eau Opening Balance TOIa! Receipts and Loans Received Total Cash and ReceIpIs A\"ailable DISBURSEMENTS From Oate:.ToOale: MTA Sunsul",. Interagency Loan and StabIlizatIon Fund TmllsadloftS Casl\ Dasts Illlilhun$) Corre!!l Mont!! SllIhjlizatmg ful!!! l'gr 1!1 Osf stllhll!!d,m flllld (,'.ommuhlr I!:ll.!!!!! Commuter ~,CdB!lDlI Fd) (TAstAb) l'!!!!i lq",neljl! Fdl cra~tab) 07101fll fI3 OliOlI / /31m l1l1 07ll1tl3 $ $26/}.165 $ S1l , $ $ S65l.S60 S SJ,S:47JI09 Tuljl <H101/ lftl $ , $2, Agenq OnelJltM$ MTA Long Island Railroad MTA MeIfO.North Rail Road MTA New York City Tnmsit MTA NYCT for SIRTOA Capital Progtltm Contribution forward F.netgy COIlIrru:ts Capital Security AecoUl1t T 00II Debt Service and Operations Ikpav!!SIt of Interngmtv LOI\I!! 8&T Necessary ReconsU'w;IWIl Reserve MTA Capilal Program - /'loll-resolution Funds MRT-2 Corporate AccoUl\! 2012 OPEn Loan ToIa1 Loans Paybad: TOIaI DisbuIRmaIIS SfABIUZATlON f!jnp BAt.ANQ; noll J , , MOO U05 IHloo (WOO $ $ $ $1, G.OOO $0.000 $0.000 $0,000 $ $ S S $ $79{).459 $1, $ $982{)9 S214.iU3 $ ".393 1, Ll iloilo 52, tuioo $ $ $ }:nding Loan Raillns:g B&. T Necessary Rcconsnuctlon Reserve MTA Capital ProgrnllJ - Non-Resolution Fund$ MRT-2 Cruporate Acroullt 2m 2 OPES 1.nan End of Month NJcr Operating funl! borro'fting from l\ffa fa"'!! Pm 1I0t Ind".!q tndlllg Loae Balllll!:,! abo"e (WOO ,000 0, , (tooo $ $ $ nla $632,231 $ nln $632,231!!lntil!" Ell!!!! &h!nmj SI22,OOO $tjw.23 I {WOO ()OOO $400,000 $ SlJH22Jl

125 ~ _ METROPOLITAN TRANSPORTATION AUTHORITY FAREBOX RECOVERY AND FAREBOX OPERATING RATIOS 2013 MID-YEAR FORECAST AND ACTUALS JULy 1013 FAREBOX RE-COVERY RATiOS New York City Transit Staten Island Railway Long Island Rail Road Metro-North Railroad Bus Company MTAA enc 1013 ~lid.year Forecast 37.9% 9.8% 31.0% 40.8% 30.6% 36.8% FAREBOX OPERATING RATIOS 2013 YTDActu;aI 37.3% 12.3% 32.0% 46.1% 30,9% 37.0% New Yark City Transit Staten Island Railway Long Island Rail Road Metro~North Railroad Bus Company MTA 2013 Mid.Yel' Forecast 58.6% 16.0% 46.8% 60.6% l2..lli 55.7% 2013 YTQActual 54.2% 18.2% 47.9% 62.6% ~ 53.2% Farebox recovery ratio has a 1000g-term focus. It includes costs that are not funded in the current year, except in an accountingledger sense, but are, in effect, passed on to future years. Those costs include depreciation and interest on long.;term debt. Approxirr.ate!y 20% (and sometimes more) ofmta costs are not recovered in the current year from farebox revenues, other operating revenues ot subsidies. That is why MT A operating statements generally show deficits. In addition, the recovery ratio allocates centralized MT A services to the Agencies. such lis Security, the cost<; of the [nspector General, Civil Rights, Audit. Risk Management, Legal and Shared Services. PareOOx operating ratio focuses on Agency operating financial performance. It reflects the way MT A meets its statutory and oond~covenant budget~balanc!ng requirement~, and it excludes certain cost that are not subject to Agency control, but are provided centrally by MT A. XI-26

126 Metropolitan Transportation Authority Siale v! New Vork New York City Transit Long Island Rail Road Metro-North Railroad Bridges and Tunnels Bus Company.. X /'oj "" Report on Revenue Passengers and Vehicles Ridership Data Thru.July, 2013 NOTE: Ridership data are preliminary and subject to revision as well as adjustments warranted by annual audit review.. Prepared by: MTA Division of Management & Budget Wednesday August 23, 2013

127 ri := =:; == Jul Revenue Passeniers Percent Change 2013 Percent Change MTA New York City Transit 184,243, ,765, % 195,286, % MTA New York City Subway 131,263, ,228, % 140,61?, % MTA New York City Bus 52,980,206 53, % 54,670, % MT A Staten Island Railway 327, , % 300, /0 MT A Long Isiand Rail Road 7,042, , % 7,401, % MTA Metro-North Railroad 7,012,229 7,214, % 7,300, % East of Hudson 6,854,351 7,062, % 7,156, % Harlem line 2,198,107 2, % 2,330, %. Hudson Une 1,358,800 1,401., % 1.344, % New Haven Line 3,297, , % 3,481, % West of Hudson 157, , % 143,640 ~5.08% Port Jervis Line 110,772 97, % 91,288 ~.06% ;- >< Pascack Valley Line , % % CXl '" MTA Bus Company 9,455, , % 10,041, % MTA Bridges & Tunnels 25,490,788 24,887, % 24,880, % Total All Agencies 208, ,212, % 220,330, % (Excludes SridQes & Tunnels) Weekdays; Holidays: Weekend Days: Days Friday. August

128 Metro2oUtan Transe0rtalion Authorih' :... :: :: 'I! JUI~ Revenue Pass!'"gers Year to Date Percent Change 2013 Percent Change MTA New York City Transit 1,335,998,420 1,375,586, % 1.381, ,46% MTA New York City Subway 948,147, , % % MT A New York City Bus 387,850, ,199, % , % MTA Staten Island Railway 2,622, , '% 2,419, % MTA long Island Rail Road 46, % 48,016,768 ~O.92% MTA Metro-North Railroad 47,042, , % , % East of Hudson , % 47,421, % Harlem line 15, , % 15,613, % Hudson Une 9, , % 9,185,019 ~1.27% New Haven Line , % % West of Hudson 1,087, , % 913, % Port Jervis Une % % >< Pascack Valley Line % %.. N (J:) MTA Bus Company ,531 71,285, ,", 72,815, % MTA Bridges & Tunnels , ,949, % 163, % Total All Agencies 1.500, ,546,712, % 1,553,562, % (ExclWII$ 60dges & TUI1trels) Weekdays: Holidays: Weekend Days: Days Frlday, August

129 Metroeolitan Trans~ortation. Authori~ '" ': J~~.. 12 Month Averages Percent Change 2013 Percent Change IlATA New York City Transit ,444, % 194, % MTA New YOf'k City Subway % 138, % MTA New York City Bus ,138, % 55, % MTA Staten Island Railway , % 350, % MTA long Island Rail Road 6, ,922, % 6, %!lATA Metro-North Railroad , % 6.875, % East of Hudson 6, , % 6,748, % Harlem Une 2,190, % % Hudson Line 1, % 1,311, % New Haven line 3,151,280 3,270, % % West of Hudson % 127, % Port Jervis Une , % 79, % >< Pascack Valley line 48,197 51, % %... w 0!lATA Bus Company 9,930, , % % MT A Bridges & Tunnels , % 23,369, % Total AU Agencies 215,523, k % (Excludes Bridge$ " T\lnIIIlI$} Weekdays: Holidays Weekend Oays: Oays , Friday, August 23,2013

130 Metro~olitan Transgortation Authority Jull>: Average Weekday Passengers Percent Change 2013 Percent Change MTA New York City Transit 7,104, , % 7,236, % MTA New York City Subway 5.097, % 5,231, % MTA New York City 8us 2, ,009, % 2, Q.19% MTA Staten Island Railway 13, % % MTA long Island Rail Road 300, , % % MT A Metro-North Railroad ~0.01% 287, % East of Hudson , % Q.69% Harlem line , % % HudsonUne 55,677 55, % 52, % New Haven Une 135, % /0 West of Hudson 7,884 7, % 6, % Port Jervis Une , "A> % >< Pascack Valley Une 2,353 2, % 2, % T w MTA Bus Company 369, , % 375, % MTA Bridges & Tunnels , % 624,776..Q.58% Total AU Agencies 8,078,450 8,196, % % {Excludes Bndges & Tunnels) Weekdays; Holidays: Weekend Days: Days Fnday. August

131 Metropolitan Transportation Authority July Metropolitan Transportation Authority Revenue Passengers.. >< W N -til C o. -.- :i - Ii!ii & ] Fnday, August

132 Metropolitan Transportali,!>" Authority July =, Metropolitan Transportation Authority 12 Month Averages ~2~ , ~~ ~ ~~ ~~ x T w -en. c :e ~ ~----~--~----~--~----~ ~--~--~ S';~.Jb,J. #'.-fa. A.~ _<\ ~~ ~q,,~ ~ $""'" ~- ~v ~v +t$'- '" """,Q"Il di 4"4: <:leis 'Ji ~J' "."'*~ Friday,August23,2013

133 Metropolitan Transportation Authority Metropolitan Transportation Authority Average Weekday Passengers :: f ;:; :;;:;; July 9.0~ ~ M S...M--- -m c... - o ~ I f iii ~ :,1 Friday. August 23, 2013 :;

134 Metrp,eoUtan TramtpotiaUon Authority JufY Metropolitan Transportation Authority Rcwenue Pauansers service Month D D12 Percentage ChanS Perc:e!!!Se Cha!!&! August 208, % % September , , OJl1% 216,478, % October 229,020, ,305,740 -il.3l% 216.n6, % November , % , % December , % % January % , % february , , % % Marcl'l % % April % 232,291, % May % % June , % % July ,212, % 220,333,200 :U5% 12 MonthAv ,2& " ,144 ~.13% Year-to-Date , &;17' % '1, % 12 Month AV8!!f1" service Month D12 Percentage Cbanll! Perc:entae Chane August ,285 -O.4t% 221,351, % September , % , % October , ,m -il.28% , % X... November 216,045, , il.36% , % w December ,061, % 217, % 0'1 January t % 218, % February , % , % Marcil , % 216,877, % April % 217,935,607 -il.2s% May , % 218,073,947 -il.54% June , % , % July , , % 218,276, % ~2012 Percents Chan P , % 7.988, ,521,032 8, % 8,806, % 8,789,906 8,791, % 8.967, % 8,586, % 8,467,584 ~2.42% 8,088, , % % , : % 8,243, % & , % % 8, % 8.574, % 8.402,125 8,607,145 Z.44% 8.877, % % 8.946, % 8, , % 8, % 8,018,450 8,196, % , % '... I\o!IUS!21.;mu

135 ~~~~~~~~-~ ~lraljsenatima~ J!!!y MfA New YotII City Tranllit Revenue P8lIU2II!!1'$ Servkie Monti! 20102OH Pm:e~ Cha!!Q! Pen:e!!!!S! Chatli! August 184,255, ,166, % , % September % 192, % OctOllel' 204,007, , % , % November 193,742, ,963,$ % 176,579,235-9,W... Decembe , , % , % JanualY 176, ,526, % 193,014,41>7 3.51% FebrualY 114,315, , % % March 200, % , % April / ,977 (UI1% May , , % 210,853, % June l4, , % % July 1...' , ',4, 1'5,26, % 12 Monti! Ave 191,68$, ,444, &% 1114,073, % Year-to-Oate 1,335,998,420 1,375,586, $% 1,381,978, % 12 Month Ave!!Sf/$ Service Montn Percental!! Cba!!Q! Pereentase Cha!!ge August , ;'118, % , %.. Seplember 191, , % 196,517, % OClOllel' 191,68Ii, ,$4, % 195, % >< November 192.0(14, ,459, % 194, % v.> December 191,780, ,72& (t20% 193,541, % 0') Janumy f91.611, , % ,537 O.65"k Feb/UaIy , % ,121-0,16% Malch , ,902, % , /. April , , % 193,743, % May , , % 193,868, % June 191,981, , % 193, % July 191,885, , % , % Averall!! WeekdaX PlIlIlIe!;!lel'$ Service MontI! 2010-l101i Pen:e!!t!ie Cha!!i! Percentage Change August 6.837,402 6,758, % 7,040, % Seplember 1,535, , % % October 7,778,583 1, % % November 1, ,658,485 HIO% 7.535, % December 7, ,497, % 1.364,350 -t.77% JanuaIy 6, IU50/ , /0 FebnlalY 7, ,604, % 7,720, % Mafl:h 7,698, % 7,581, % April 7.440,152 7,618, /0 7,W,2Z1 3.26% May 7,i' , % 7,927, % June 7, ,626, % 7, % July 1,104,704 1,220, % 1,236, % f...,._2>.201~

136 MetroP2l!tan TralI$~ Autbj»!Y JulY MT;' New York CHy SUbway Revenue PlI6S&!!lIef$ Service Month Pen:efl!!B! Chan&! Pen:tmf.aBe em!!!!! August , % 139,253, % September 134,732, ,489, '1% 136, % Odober , ,578 UC% 137,259, % November 135,682, & JI4% ,325-1HIO% December 135, , % 137,471, % January ,812,n8 4.0S% 137,079, % Februaly % 127, % MafCh ' AC1, % 142,325, % April 136,237, ,080, % , % May 141,SSO, , % , % June , ,986, % 141,227, % July 131,2tI3, ,228, % 140,&16, % 12 Month Ave 135,483, , % 138,501, % Year-lo-Oate 948,'147_ 979,388, % 986,817,851 U6% 12 Month Ave!!j" Service Month Pen:entaae Change Percentage Cbange.AugUSl 132, % 140,252, %,. >< September 132,965, % % OetoIler t 2.09% 139, % November ,396 13&, % 136,264, % Vol "" January 133,940, ,134, % ,382 O.5O% Februaly ,828,015 2,43% 137,8& % December 133,683, , % 137,881, % Marcil , % , % April 134, ,141, % , % May , ,692, % , % June 135,505, ,809, % 138,216.m -0.43% July 135,483, , % 138,l101, % ee , , % 5.256,598 5,415, , % 5,419,113 5, , % 5, > 5,456,286 5,323, % 5, , , % ,186 5,160, % 5,260,405 5, , % 5,423,118 5,530, , % 5.29$, ,522 5,589, % 5.450,246 5, ,664, % 5.355, ,383 5, % 5,097,919 5,211,599 5., % F...,.... 2't201'

137 Metropollt.n Transportation Authority MTA New York City Bus J'!!X Revenue 2011) Z Percenla Cha )13 P C August 54, ~40% 54, tt35% SepIeomber 511,849., , % 55, % October , , % , % November 58, , % , % December 52,808, % 53, % Janllaly 50;136,878 53,716, % 55,995,392 4,24% Februsl)! 50,200,335 54, % , % Mareh 81, ,259,494 -lt16% 51,197, % April ,263, % ,187 E1,47% May 59, , % 60,098, % June 57,097,315 56,136, % 54,837, % July 52, , % 54,670, % 12 Month Ave $6, $6,13$,$02.Q.11% 55,572, % Year-to-Date 387,850, % 395,158.61'.0.26% 12 Monti! Av!'!lles Service Month 2010-, Percen!!B! CIIa!!fl! Percentage CbanUe August 59,005,333 55, ,55% 58, % SepIeomber 58,695, % 56,396,696 ';35% October , ,49% 56, % November 58,505,251 55, ,55% 55,n2, 'l'. ~ W Ot!cember 58,076,949 55, % 55, % co JiilnUSI)! , % 55, ,26% Febluary 57,612,411 56, ,73% 55, ,&3% MaICll 57, ,99& % 55,346, % April ,053, % 55,650, % May ,694 56, ",4, 55,586,265 1,04% June % 55,478,03e 1,09% July 58,202,C , % 55,572, )1% Ave!!B! Wee!!!!!X Pas!!!!Sel'S Service Month Pereentage Chaose Perce!!!!ie Change August 2.010, , % 1,959, % September 2.278, % ,23% October , % 2,313,933, 2.16% November 2, % 2,211, % December , % 2, % JaRuaI)! , tI% % Febluary 2.121, % ,84% Matdl , % 2.165, % Aprft & , % % May , ,15% 2.283, % June 2.100, , % 2, Q.69% July 2,006,184 2,1109,014 0,11% 2,005; % f...,._:la.2f».

138 Mettopo!!tM TI!!'l!fOIWtlon A!I!hor!ty MTA aus CO!I'Ip/Uly Ju/x Revenue Passe!!S!1'$ SeNIrut Montb lt012 Ptm~Cba!.!Se Ptm!"!:S! CIJalIge Atlgusl 9,598,938 9,211, % 10,027, % September 10,21l % , % Oc!obef ,444 10,672, % 10, ft53% November % 9,520, % Oeeember 9, ,044; % 9,893, % JanuaIy 8,996,811 9,612,illS 7.51% 10, % february 8, , ,81% 9, % Matdt 10, , % , % April 9.789,001 10,054, % 11,045, % May 10,alG,sse 10,957, % 11,251, % June 10,25&,893 10,122,902-1.l1% 10,003, % July 9,455,191 9,674,0; % 10,941,752 ;UO% 12 Monti! Ave 9,930,616 10,143, % 10,200,673 O.lWIw Year.fO.Oate , % 72,815, % 12 Month Averill9ll'$ Servk:e Month P8rcefl!!Be ella!!!!! Percentage CIuange.. August 10,tlB2,799 9,898, % 10, % $eptsmber 10,060,099 9,901, % 10, % >< Oc!obef 10, % 10, ,58% November ,139 9,898, % 10J>BS,695 U9"'" (.) <0 December 10,018, % % January 9,961, , % 10,126, % February 10,007,959 10, o.e9% 10, OAO% March 10,009,451 10,()91,30$ 0.82% 10,072, % April 9,949,040 10, % 10,154, % May 9,960,571 to.13c % 10,119, % June 9,951,784 10,125, % 10,110, % July 9,930,tI16 10,143, % , % AV!!'!ge Weekd!X Passense,. ServlQe Mon1tI Percentage Change Pmentae Cha!!.lf! AIOISt 360, % 3&7, t% Septembef 405, % 416, % October 421, , % 421, % November 409, , % 409, % December 388, , % 394, % January & % 397, % Februaly 388, , % % March 410, , % 408, % April , % 421, % May 420, , % 432, % June 396,54& 395, % 398, % JIIIy 369, , &% 375,' % """",,~""20!3

139 ~IiIanT_portatlon~ :!!!IX MT A Statenl$lal1d Railway RevenueP~ Service Month Pen;en!!a! Chanse PeR:l!A1aQe ChaRS! A\lgust % 352, )% September 379, % % Oelober , % 401, % November 383,D64 405, % 328, % December 3$9, JI0% %.IanuaIy 356, % 366, "10 Febn.larv ,154 lg.p2% 315, % Maid! 427, , % % April 366, ,8$2-0.44% 365, "10 May ,99% 381, % June 404, '3.93% 348, %.My ,507 o.l7% 300, lO".4 12 MonIh Ave 373, 'Ol 3.20% ll1% Year-to-Date 2,622,033 2,&59, % 2,419, % 12 Month Ave!!9!! Service Mouth :1012 Percentage Cfia!!l! Pen;!!'f!ge~ August 35&, , % M% September 358,5&8 315, % 384, % October 360,315 3n, % 382, % >< ~ % 376, % Oecember 364, , % '()2% I 0 JamJaJy 365, , % 386, % FetM1Jary 361, , % % Maroh , % 356, % April 369, % 356, % May 371, , % 356, % June all,w 365, % 352.na -lul% July 373, , % 3SO,419 IUi% AV!ffl)! W~ Passe!!ll!l'S SeNice Month 2011) '12 Pertesa Cha!.lS! Pt~l:Ictt~ August 13,002 13, % 13, % September 16, % 17, % October ,063 4.n% 16, % ~ , % 15, % December , % ]1% January 15, % % FebRIaly 15,t198 16, % 15,075..g.07% MaIdI 17,125 16, ".4 14,m % April 15, % % May , % % June 16,610 16, % 15, I7'l!. July 13,821 14, % 12, % ' 23.21>13

140 MetffiJl?lItan Transeortatk:!g Aut!lor!Y Ju!J MTA long Island Ra!I Road Revenue P_nSet1l SeIVn:. Month Petcentaae Cb8211! '13 Percentage C!!!2 August 7,108, , % 1,482, % Seplembef &.834,199 6,881, % 6.719, % October ,903, % 6, % November 6.563,349 6, % 5.607, "';' December 6,985,069 7, % 6,1159, % JanualY 5, , IUII% 6.628,268 :t06% February % 6.020, % March 7.031, , % 6.897,8n.2..88% April &,651,960 6, % 6, ,51% May 6,739,212 7, &.43% 7.112,429-1).84% June 7, , % % July 7,c42,41ll 7.289, % 7,401, % 12 Montb "'Ift 6.722,2&9.,622, % G.ns.& % Year-to-Date...,,311,401 48,462, % ,1&8 4.92% 12 Montb Ave!!las Servn:. Month 20' Percentage Cba2ll! Pe~Ch!ml!. t 6.819, ),8411.l.76% 6.976, % September 6, ,704, % 6.962, % OdobI;r ,712, % 6.939, % X November 6.7f ,733.35& -0.95% 6,636,527 15&% I December ,748, % &.812,799 OJI5% JanuSIY , % % February 6,768,653 6,836, % % March , % 6,782,n9-1).00% ApIiI 6, ,861, " H % May 6, , % % June 6.736, , % % Juty 6, ,922, % 6,115, % AveraseWe!kday p~ Servlt:e Moi1tb PelU2!!De Cbanll! Peree~~ August 280, % 286, % September 285.9«288, % )]1% 0cI0beI % % November % % Deoember % % Janualj' 269, % 279, % FeblualY 270, ,$ % 2I\O,12t.0.51% March , % 287,601 OA7% April % ,76% May , ' % Jul1e 287, % % July 300, , % 293, % " :>:i.:i013

141 Met#OPQIitan TmnsP!lfation A!I!hot!ty MTA MeIro.Nortn Rall_d Revenue Pem0a!1'1II service Month PeI'Clllltagl! Ch!!.'!5l! PercentaD! ~ Augus.t 6.912; M 3.01% 7,349, % September 6.852,629 6,000, % 6.154, % October 1.Q21, , % % November ,948, % 6,283, % December 7.009, , % 7.009, % JallU31Y 6, % 6, % februa y 5.623,642 6,395, % 5.99&, % MatCh 7.067,30$ 7, % 6.961, % April 6,604,593 6,972, % 7,106, % May 6.948, % 7.198,299 -O.1l2% June 7.327, , % 7.095, % July ,214, % 7,300, % 12 Month Ave 6,811,212 6,981,120 2,48% 6,875,_.1.51% Year-to-tlale 47,042, , % 48,334,710 -O.9t% =MY Augll&t 6,695,600 6,793,922 7, Sep1embet ,908 1,011,tl94 October ,1104,161 6,995,683 X November I: December 6,757,974 6, ,912,802 I'.) JaI\uaIy ,876, Februaly 6,769, ,109 MaICh ,578 6,875,789 April 6.177, May , ,1183,247 June ,8$1),710 July 8,811,272 6,981,120 6,875,866 Avt!2 W"~ Passenlf!nI Setvlce Month i012 percentale Ci1eml! PercelQ«e CIlange August & % % Seplembef D % % October 287, , % IUl5% November , % 264, % Oe<:ember 280, , % % JiIIlUlIIY 264, % % Februaly t9% 271, % March % 282,7D7 0.10% April 280, % 285, % May 263, , % 284, % June 293, , % 298, % July 2tIO, , % 281, % _._Zl.:I<»l

142 T ranlipo! tlt'i! Au!!Jor!ty East of Hw:t1son Revenue Passe!!!!rs Sltrvk:e IIIonIh Perce2!!2 Cha!!!! Pen:ene Chge August 6,747, aoo%. 1, % September 6.693,644 6,860, % 6,618, % October 6, ,945, % 6.639, % November 6,654,1) ,079 :t96% % D«ember 6,924,466 7, % 6,901, % January 5, % % Felmtaly 5,685, , % &.09% March 6, , % 6, %. April , % 6,9' % May 6,788,759 7,094, % 7,061.1'l % June 7, ,125 ~.61% % July 6,854,35i 1, % 1,156,528 1.n% 12 MoItIh Ave 6,653,466 6,848, % 6,148, % Yeer.to.oate 4$,954,U? 41;rTf, % _ 41.1&% 12 MoRttl Averages servlf:e Month ~CiJanlMI Pen:e!!!!ge Cba!!9! August 6.539,204 6, % 6.902, % september 6.554, % 6,$ )1\7% October. 6,560,693 6,657, % 6,856, % >< November 6, S.fin.9n 1.32% 6, % December 6.soo, % 6,n % I w JaOUlIY 6.600, , % 6,791, % FebrualY 6.611, I1&,:U1 2.64% 6, % March 6, , % 6,745, % April 6,619,966 6,809, % 6, % May 6,637, , % 6,754, % June ,831, % 6.140, % July &,653,465 6,848,840 U4% 6, &% ::: Jii!i Average Weef«fa~ "-aers ServIce Monfb P.~Cba!!l! Perce. Cft!!!!j! August. 266, , % 213, % September 276, , % % October 279, % 253,501-1()'(12% November 282, , % 280,337-9,90% December 273, , % 281, % JIIOIJaIY % ~.20% Febtuary % 28M % Match , '!\ % April 272, % 279, % May 275, , % 278,696..(l.ll% June 211&, , % 291, % July 282,&28 283,28(1 0.23% 281, %,,,,,,,._:

143 Metroec?!iWl t~ Authority July IiaMmUne RlWefluePa I'S Se Montb Perc: Augullt 2,179,564 2,ltf, % 2, S$ptembtlr 2, , ,16% Odober , ,35% 2.180,347 November , % 2.068,664 December 2, % Janual)' l,97s.fm , % 2.182,961 febtuaty 1.913,040 2,07S.006 UO% 1.979, % March 2,304, , % 2,252, % April 2.188,958 2, ,% 2.286, % May 2.223, , % 2.326, % June 2, ,11% 2.244, % JIIIy 2,1U,101 2$4.0i8 3.45% 2,330, % 12 MontbAve 2,lM,i41 2, % 2.215, % Year-to-Dall! 15,124,012 15,670,$ % % 12 Month Avteae Service Momtt Pen:entaae Chanl)! Perc:e~ C!le2e; August 2, % 2, % September ,188, % 2, % October 2.175, , % 2, % >< November 2.182, % ,60% I December 2.185,925 2,197,013 Q.51% 2,220,658 i.ll8%.j:>. Janual)' 2.184,131 2,201) % % feblljal)' % % March 2,189, ,6&7 1.63% 2, % April 2,185, , % 2.216,656.0,53% May 2,190,778 2,236,44S 2.08% 2,217,299.o.e6% June 2,192,50t 2, U9% 2, % July 2,190,141 2,242, % 2,215,"' -1.19"'{' Av!f!!J! Weekd!! PlISSe!.'!iers Servk:e Montb P~Cha!!fl! Pen:entase Cha2i! August 86, % 88, % September 91, % 93,799 1>.72% October , % l.23% November , % % December % % JanuSI)' KI, % 89,356.o.ON FeblUaly % 89, % March 8& % % ApIII U!9% 92.0$1.0.03% May 9ll,816 91,1&2 1.06% 92, % June 93,237 94, % % July 91, , % 92, % 1'tld>v,_23.lII1~

144 ~ Tra!lSP2l1at1cmAuttlorl!y Jui tiud'tion Line Revenue P-!!9ers Service Month Pe""!!l:!!R! Chti!!ll! Pen:en!5! CI\angIe August 1,360, % ,41% September 1.331,091 ;, % ,24% October 1,361, % 1.304, % /IIoIIeIlItler 1.303, % 1.190,123 10J37% Oecemtler 1,350,557 1, % % Jaflual'j 1.159, &.93% 1, ,84% Februaly 1.108,812 1, ,39% 1.151, % Marcil 1.340,0:22 1, G.26'1'0 1,318,583 2,00% April 1,312, , % 1, % May 1.349, , % flO5-0.18% June 1,408,063 1, ".00% 1, % July ,401, % 1,344, % 12 Month Ave 1,312,lM$ 1,335, % 1,311, % Year-t&Oa1e 9,031,262 9, % % 12 Month Ave!!i!! Service Month t 2OtMo1Z P~Cha!!lle 201%2013 Pe,,"~ Chane August 1,292, % % September ,309, % 1.341, % Odober 1, :8, % 1, % X November 1,302, % % T,J>.. December 1, ,313, % 1.321,() % 0'1 Janual'j 1,30$ , % % February 1.30:7,t0: % 1,318,739..(1,61% MaICIl 1, ,327, % 1,315, % April 1, % 1,318, % May 1, , % 1.317, % June ,331, % 1, % July 1,311,1)45 1,335, % 1, % l"",n rs Perce e 53,417 51, % 54, % 54,m % % 55,281 54, % 49, % ,109 Ui3% 49, UO% 53, % 54, % 50,319 51,341) 2.03% % 50,296 ' % 51, :% , % 53, % 53,787 54, % 54, % , % 54,8Il4 0,01% , % % 55,677 55,814 1l.3S% S %

145 ~Itan Transrertatfon Autho!1ty JulY New Haven Line Revenue P<t1lU!!9et'$ SeMceMontb Perc:entae Cba!!i! PIII'C4t!!!!i& eha!!&! August 3,207, , % 3,441,562 &.71% Seplember 3.156, $, % 3,155, % 0CIJ'lbef 3.230,572 3, ,2;2% 3,155, % November 3,151,295 3,;m % 2, ,74% December 3.276,593 3,482,491 It26% 3,325, % JlJIIlIIlIY 2.782,420 3, % 3, % February 2,663,982 2,987, % 2,753,414..].84% Mafch 3,252, % 3,248, % April 3,146,2(12 3,261, % 3,331, % May 3,215,679 3,316, % 3,337, % June 3,436,549 3,40&, % 3,344, % JUly 3,297,444 3,387, % 3.481,802 2.n% 12 Montlt Ave 3,151,28& 3,210,ao7 3.80% 3,221,619.'1.51% Year.m.oata 21,193, Il04, % 22,623,426.(1.79% 12MontbA~ Service Month 2011) Perce~Chil!lll! Ot3- ParcentaDff 9!ne. August 3,074,736 3,145,8115 2,31% 3, % September 3,0& ,153, % 3, % October 3,0&9,346 3, % 3,216, % >< November 3,103,039 3,t69, % 3,249, % l.".. December 3,110,313 3,18& % 3,236, % 0> Janllary 3,111,664 3,209, % _05% February ,236, % 3,223, % Match 3.125,067 3,242, % 3.216, % April 3, , % 3, % May 3.136,467 3, % 3.219, /. June 3,1411,918 3, % 3,213,78S -1.52% JI4y 3,151,28& % 3,221, % Averae Weekda% Passe,!&!!,! Selvlce Momb PercentaS8 ChII!!V! 20122(}13 Perce~ Chan!!! August 126, % 130, % Septembet 129, % % October 131, % 120, % November 133, , % 123, % December 128, % 134, % Janllilry ,98$ 5.54% 126,825.n.13% February ,71)1 6.33% 124, % MarCh , % % April 128, % 133, % May 130, % 131,518.(1.62% June 136,6$4 138, % &% JUly 135, (1.02"- 13&,258 C.fi8% ~_. ",-la. Ol)"

146 ~ Tf3I'ISportatlon~ JulY We$t of Hudson Revenue lii'$ h P4r\1;enta C 2012.,2013 Perce August &1% 156, % September , % n% October , % % NovernIler 156, % % December 164, , % 108, "& JanuafY % % February , % % Marth , % 133, % April 156, % 132, % May 15&, % % June ,825..a.57% 136,() %.July 157, , % 143, % 12 IlilQntll Ave 157,8D7 132, % 121, % Yeaf4o.Date 1.087,466 1,000, % 913, % 12 Mont!' AI/eraS!! Service MontI! Percenl'me ~ Pen:entaB! Cf1ange August 156, % % Sep\efIIbef , % 135, % OCtober 166, ,621-6,11% % X November 156,764 14t.trnI -9.62% ,42% T.l). December ' % 134, % --.j January % % FebruafY 157, , % 131, % Marth 157, , % 130, % April 157, % 129,nS -3.74% May , % 128, % June 157, Il % 121, % July 157, ,111 1U4% % Avera 201l).2O ,2012 Perce 2012.,2013 Percenta e August , % 6, % September 7,574 4, % 7,18Oc 50.71% October 7,625 4, % 6,942 49,45% November , % % December , % ,6/)% JanUSfY 7,436 6, % 5, % February % 5, % Marc/! , % 6,355 7_21% ApnI , % 6, % May 7,6fS 6.n % "/" June 7,402 7,Oeo -4.35% 6, % July 7,884 7, % &,543- -&..24% F_._:I3.20'3

147 Metroe,g!1tan TfIIllSJ!OI1a!k!n Autho!;!!l Jui :::. PonJeI'VlaUne Revenue PaSllen l!1'$ Setvlea fitonth 2tl1f tlli.2012 P1I~e ChanDe "ercen!.l!ie Ch!!!li! August , % % September 110,421 SO.582 S.U9% 85, % October 110,500 46, % 67,075 88,1}1% November ,692 51Hi6% % Oeeember 114, % 61, % January 96,984 80, % 13,570-8,69% February 94, % 69, % MaIdl 117, ,80% % April 108,000 88, % ,04% May 111,096 93, % 85, % June 116,786 94, % % July 110, % 91,288 (US% 12 Month Ave 109, U9% 79, % Year-to-Date 155,641 W,6/ % $$1,952 ".lis'll. 12 Month Av~ Service Month 2tl1f! P#n:entage ClIane 2& Pe~C~ August ,46% 60, % September 109, % 82, % Odober , % >< % Novembel 'I 109, &% 68, % ~ 0eeemIler 100,583 90, % CXI $.39% JanuaJy % 64, % FeI:lI'ua!y 109,669 88, % % Maron &, % 82, % April 109, % 81,869 3,40% May 109,578 83, % % June , % 80,229 1,55% July 1119,610 80, % 79, % Ave!'2 Weekdal Pas!!!!ll- Service Month Perce~ Cha!!ll! P~Cha!!S! August 5, % % September A % % Octebef !) % 4,354 QUS% November 5, ,54% % OeeemIler 5,218 4,On % % January 5.{)98 4, % February % % % Maron 5,100 4, % 3,922 -tl17% April % May % ,2S % &% June 5,311 4, % 4,158-7,46% July ,$ % 4, % ~_.""""23."""

148 ,Metroeglltiln Tnmaport!tioo Autho!jly Pall<:ack Valley Un. R_ AU\)ll&I Alll.476,'.07% 55,754 September 48, % 51,184 October % 51,753 November 48,928 5(1, % eeembeI' 50,283 52,532 4.IH% JaIlUlliY 4Al.4Al ,31% 43,990 Febntary 43,100 49,091 13,90% 42,699 March % 51,129 April , % 50,319 May 48, % 52,144 June 45.9!16 54, % 52,645 July 47, ' % 52,352 1% Month Ave % 47,381 Year..fD.Oate 331,825 36&,52$ 1'1.36% 345,278 Ju! )12 eetta Pe Chlm e August % 52, % September 46,453 48, % 52,576 9,02%.. October 46, :m 3.59% 52, % November , % 50, % X Oecembef 47,419 48, % 49, % ~ JatIUllIY , % 46,982.(1.17% <0 Februaly 48, % 48,449 2,25% March &3 3.13% 41, % April 46,295 50, % 47,890 ~31% May 48,652 SO % 47, % June 48, % % July 48, % 41,381.a.sT% AV!fflI! Weekd!!X Passengers Servl(:e Month P~fh!I\S! Pe~CIta!9! August % % September 2, % % October % % No'IeIIIber % 1, % Oeeernber 2,287 2, % % January % % February % 2, % Marth % % April "A $.6c7% MiIY % 2, % June % % July 2,3&3 2,519 UO% 2,364-7.&% 23,-

149 M;iropolltan Transportation Autt!oritY JulY MTA Bridges & TIillIleIs Revellue Passengers SeNlce Month Pllnle!l!:!ae Chane Pen:entlIS! Cha9le August 26,202,259 24, % 25,669, % September 24,617,701 23, % 23,763, % October , % 22, % November 24,018, , % 20, % D~ 22,969,330 23,665, % , % JanuaIy ,73lI 2t % % Febtualy 211,176,144 21,28l>, % , % MarcIl ,232 23,921, % 23,376, % April , % OJl5% May 25,144,889 25,192, % ,466 -OSlo/. June 25, % 24,721, % July 25,490; , % 24, % 12 r.'ionth Ave 23,942, ,32(1 -MG% 23,369,93(1.1.15".40 Year-to-Qate 164,G ,949, % 163,m, % ~1 12 Pllnlenta 2012 August 24.27fi % Se embes 24,282, % 23, October , % >< November 24, % T (11 December 24.3oa,519 23, % 23, JanuaIy % ,748 Februaiy 24.23s.o73 23,831, % Maroll 24,1$$, , % ,009 April 24,106, , % 23, May 24,031,229 23, % 23,413,172 June 23,983,2: , % ,518 July 23,942, , &% 23,369,930 A rs 2D1O-af P a13 Pe 'U4% 839, % % % 736, a% 822, , % 725, % 764, % l1li2, % , % 755,O8l> 0.63% 750,Be1 168, % 765, % 788, , % 778, % 812, , % % ,734-0,23% 634,664 1),36% 855, ,900 1),23% % 853,553 '29, % %._,"-:l3,... 3

150 FuelH e r gram

151 ---~ Current Hedge Activity Ultra low Sulfur Diesel Hedl!s Natural Gas Hedge lode in Gallons lockfn MMBtus Start End Price/Gal HedgedJMn Start End Price/MMBtu Hedged/Mn Mar-lOl2 Aug-20B $ ,011.. >< 0"1 N Apr-20ll Sep-2013 $ ,523 Currently no actitle Natural Gas hedges May-20ll Oct-2013 $ ,328 Jun-2012 Nov-20B $ ,219 JUIl-20l2 Noy-20B $ ,779 Aug-20ll Jan-2014 $ ,550 Sep-2012 feb-2014 $ ,692 Oct-lOll Mat-2014 $ ,030 Dec-2012 Oct"2014 $ /758 Jun-2013 Nov-2014 $ ,934 '" Dec-2013 Oec-2014 $ ,.273 '" Jan-20I4 Jan-1015 $ ,159 '" Jan-2014 Jan-2015 $ ,280 '" Mar-20I4 Mar-lOIS $ ,403 '" Mav-20ll Mar-20IS $ ,270 '" May-2014 Apr-20IS $ ,094 '" Jun-2014 Jul201S $ ,582 '".. Reflect average fj{ mmth/y hedged gallons - contract temts \'Of}' by month for hedge duration July Plan.w.1 Zi1.! asw. $2.96 $2.89 $2.83 Natural Gas ~ ~ 1m $3.91 $4.18 $4.26

152 Annual Impact as of September 3,2013 (~ lit mluions~ ~ ~!!!! Ultra Low SUIfm: Qiesel Current Prices vs. July Plan ($o.71b) $0.146 $3.027 Impact of Hedge ~ ~ ~ Net Impact: Fav/(Unfav) ($4270) $3.829 $3.295 X.. tn W tomln;smd Natural Gas CUrrent Prices vs.july.plan $2351 $3.656 $O.SOO Impact of Hedge ~ ~ ~ Net Impact: Fav/{Unfay} $2.351 $3.656 $0.500 Summary Current Prices vs. JulV Plan ($4.367) $3.802 $3.527 Impact of Hedge ~ ~ ~ Net Impact: Fav/(Unfav) ($1.918) $7.485 $3.795 Estimated impacts are based on monthly average price times forecast usage, which may differ from actual purchases.

153 ~-~ -----~-----~ METROPOLITAN TRANSPORTATION AUTHORITY JULY FINANClAL PLAN MIDYEAR FORECAST. Consolidated Accrual Statement of Operations by Category.June 2013 ($ in /llllikin$) I NonreimbulUble Ralmlwtnble Total Favora6fe l"avorahli I'iiiOiiIliIi junfavonlblel IUnfavollllJlel {Unfa Ot8tble1 MidYear MId-Year ~ Mid-Year FOnIC:ast Actual Varianc. Percent Fomc:ast Actual Varian.:. Perc:ent forecast Actual VlIrianc. Perr:ent ~ FaIflbox Revenue $464.0 $461H $2.& 0.& $0.0 $0.0 $0.0 - $464.0 $466.7 $2.6 a.s \fellido! Toll Revenue 141/ Q OIber 0penIting Revenue (6.9) 114.1) OJl "9.1 4:U (6.9) (14.1) capital & 0Iber Reimbul1i8lJ'lerlls &.1 lui Tot.1lllaY_ $16704 $UO 1$3.1} (0.6) $117.3 $1:JU $iui 1/1.1 $774.6 $19$M $ ~ 1.M!9!; f'ay1oil $336.2 $325.6 $ $41.8 $42.5 ($0.1) IU,) $38a.o $368.0 $1U 3.1 Overtime (1.5) (H) (5.7) (61.6) (7.3) (13.6} I HeaIIh and WeIfiw ; OPES Current Payment 50:.4 SO.O 0.4 O~ OJ! 1M 0.11 Pensions SII.? (O.5) (Its) OIlIer fringe aenefits Il (1.3) {11.0} '1.2 {(Ml) (O.i) I Reimbursable Ovetllead (28.&) (32.&) & (6.1) (22.9) (0.2) (0.1) (O.O) t2u} ToIa! Labor Expenses ss&9.& $ $32.2 $A $9&.6 $11M 1$13.8) (1UJ $lliiu $&11.0 $ I!WtJ.!lmc I E1ecIric Pawetr $42.3 $42.5 (SO.1) (O2) $0.0 $1tO {S(tO} (SO.O) $42.4 $42.5 ($0,1) (0.3) Fuel 23, !H (OJ)} ,1 Insurance 1.8 1,9 IfU} (7.f:/) D.l (O.i) Gt.Z} Claims (1.1) (11./1) OJ! (1.7) (1U) Parellamil SeMce Contrads , , S MalnIenanee and 0Iber Operating Contmds (3.3) (6.2) (2.6) (78.5) (U) (1M) f>1ofmsiclnai Se/vice ConIIacts (LZ) (25.9) MaIeriaIs & Suppliell U 10.8 (1.0) (10,$) Iber Business ~ 14~ CO.7) (M) (0.3) (45,0) ToIa! Non-labor Eltpe_ $as2.7 $244.4 $ $1T.7 $22.7 1$5.0) (28.6) $2TU $261.1 $3.3 U Othst Expense Ad!ustI!!!!Ot!j 0IIMlf (2.7) (2.7) General Reserve 0_ Ito Total 0tIIer ExpeMe Al.\justmanu $2.8 $U f$u} $IUI $11.0 $OJ! $2..6 $5.3 1$2.7) Total Expenses befoft Hon--Cash LiahlIlly Adjs. $865.1 $117.3 $37.& 4.4 $111., $136.1!$'lUi 118.1, $ana $953.4 $1IU 1.11 Oepredatlon U 4.& ItO S0.5 8,8 4.6 OPES 0bIiga1i0n ~ ,0 Emrironmenlai Remediation 1.4 0, total Expenses $i,439.' $1,364.$ $15.1 U $117.3 $13.1!$1IU) (11M} $t... $1MU $5U u Net SurplllSl(Oeflclt) Ql:lud!qg $vb$iil,," and De!Jt SeIvlce 1$ !$711UJ $12.0 '.2 $0.0 $0.0 $OJ! ($1112.3) ($710,$. $ SUbsIdIes OJ! OebtSmvice U Resdt$_preli...at)r_~IO. - OofleAnces... _10 ~ VIIri$\ce"'- loll%.

154 ?:.S, METROPOlrrAN TRANSPORTAnON AUTHORnY JULY FINANCiAL PlAN MJD..YEAR FORECAST Consolidated Accrual Statement of Operations by Category June Yearto-Date ($ in miiiiorn;l Noal'&imbufsable ~ble TN' fawn61i FiYora6lii Pavoi'iiblil!yllfavorable! junfavorablel IUnfavonbiei MId-Year MId-Year MIdYea, Fom:ast ActuAl Varia_ Percent Fmecas.t Actual Variance Pen:ent Forecast Actual Variance Pen:ent :::~"'Revlll\lJe $2,858.1 $ $2,2 0.1 $0.0 $Oj, $0.0 $ $2,660.3 $ Veblde 1'01 Revenue ,2 0, U OIlIer Opefllljng R&venue (1.5) (1.1) ao OJ> J} 436,4 (H) (1.7) Capital a. OIlIer ReImllursement& iJ ,6 9,1 1.5 TotalRe_ ' $3,U5.3 1$4.1) lui $G63.9 $373.6 $ $ $ $ ~ ~ PaynJil $2,088.0 $ $ $232.5 $230.8 $1.1 In $2,320.5 $2,301.0 $ Overtime (4.6) (1.6) (5.7) (9.0) (fl1.3) (2.9) HeaIIh and Wetfare 4sa f :U OPES Cummt PaymenI Peneil:ln1l (0.7) (3.8) OIlIer Fringe Benefits (1.0l U.5) $57.4 3SS, RIlimtIUrSaIlIe 0vefheaIJ (14M) (154.1) 5.2 U i4u (5.2) (3.5) {O5} (0.5) (0.1) (1oU) Total Labor~ $ u,.m.& $at.o O.a $559.3,&10.0 1$16.6) (1.$1 $ $4,93.5 $ NO!'l=l.abofj Electric; Power $254.1 $254.4 ($0.3) 10.1} $0.1 $0.3 ($0.1) (SU) $254.2 $254,6 ($~VI) (0.2i (J'I Fuel ,4 2.1 HI (1,0 0.0 (0.0l (12.f!) Ul (J'I In_ (O.l) (0.9) Cla/in$ ,9 (UI) (U) Il.o OJ) 0, ) (Ui P8IatnInsit Sef1/1(;e CO/ltfaCI$ '.7 ao U Mamtenem:e and Other Openilling ConlfaCts (0.4) (0,2) (2.3) (1,9) ,0 {2.7) (1.0) Professional SeIVice COIIInilcIs $ (1.3) (6.2) ' :U MaIeriais & SuppIie$ , S S Other BusineA Expen_ S ,0 1.4 (o.s) (47.1} TNI Non-t..aborExpenses $1,384.3 $1,370.7 $13.5 'UI $11)4.6 $103.6 $U 0.9 $1,488.8 $1,474.4 $ D Qt!W: &pe!!s. AdMlmentJi: 0IIIet' 1S (l.?) (18.1) 0, HI (2.7) (18.1) General Reserve Ito Total Other ExpeaseAdJustments $15.6 $17.8 ($2.7) (11.1. $0.0 $0.0 $0.0 $18.0 $17.8 ($%.1) (11.1) Total ExpensH I»fore ~b Liability Mja. $4,911,.8 $4,872.0 $ mu $&7U ($9.7) (1.5) $1,575.7 $5,546.6 $30.1 O.s Oeprecialion { , , OPSB Obligation " E~ Reme<liaIlofl (0.8) (22.0) (0,6) (22.0) Total Exp&nsH $&,(\99.3 0,829,$ $ $663.9 $673.6 ($9.7) 11.6) S1,563.a $7,503.5 $ ! Net Surplwlft)eficlt).~11Ig substdles aqd Debt SeMc. f$3,oo9.t) ($2,944.6) $GU 2.2 $0.0 $0.0 $0.0 ($3J)iWJI) ($ $1Jlt3 u l~~ ,654, , IIS DebtSeMl:e OIIU , , , Results _ Pfflllmlnaly and S<bjec:I to 1IlIIIII_... 0 totaundir1!.l 'Var 1001l

155 METROPOUTAN TRANSPORTATION AUTHORiTY JUl.Y FINANCIAl. PLAN Mlb-YEAR FORECAST EXPI-ANATION OF VAAJANCES BETWEEN WD-YEAR FORECAST AND ACTUAl. ACCRUAl. BASiS JUNE 2013 JUNE ($ll\mlll~) YEAR.To.c>A rn Generic Revell\lll Nonreimb Fav~ F8V<lAIIlIe 01'! l!e!nse C!!l!IU!a ~ junfavoll1b1el Rmons for VaMllQ!!~I fiwpn$ for yft!lar9! i!i I ~ Farebol< Ra_ NR 2.& 0.& NYCT had II fliworable variance Of $2.9M due 10 h!gi1et-4llan-fo(ealsled NYCT was f_abk> by $2.9M due to Iilgher~ed lidfthlp. ridenifjip. TIle$e R!$IIlIlIwere pallially 0Ifset by en unlavorable varlance of ThIs result_ pafiiaiiy oiliiet by an unlllvoll1ble lil'!rla!lce Of ($ HIM) at ($1.0M) at1lle URR due to 1owerlllan-fOIeCas!ed liderjllip. Ihe lirr <I_to tower- ~fed ridership. Velliele Toll Revenue NR The favorable wrlance was due to higile( traffic volume end II IIigher The favoraliie valiance I'tISUIIed from higher traffic voilli\'ie end.1ilgiter $WI8Q8to1l. IlVefII(Ie loll. X ;- Other Operating Re_ NR (&.9) (14.1) The un1avorabie outcome largely teliecis tile impact of II negative llhift: ill (1.5) (t.7) The ljjl!avl1j8ble ~ IaJgeIy ~1Iet;ts Ihe impact of II negative llhift: In the tna!iletvalue Oflhe llwemeftlls$&l porttoiioat FMTAC - ($7.2M). end tile IIIGtlIe! value of tile kmtsted llmtt portfolio at FMTAC - (S1.2M), tower fiii1iiiiramiit UI'tIan tax alnyct - (SO.SM). PMIatIy offsetting tower patlilian5it UIban tax ai NYCT - (to.iim) IHllower tet1i$ ti1e$$l1i$uiis were favoiable variances 01 $t. tm at tile L1RR primafity due end~ ai MNR - ($05M). Pertially offsatiln!j these resoli.$ to SlIIldy J1IWVtIie$, end SO.3M ai MNR mainly due to timing. was II flmlf8ble variance of $1.414 al1he IJRR pdmariiy due to SlIIldy llicovfliies. Payroll NR Vacancies end tlmlng --. prlrnaoly mponsible for favonible varianc8s of VlIClIIlClN end tlmlng were primarily responsible lor favomble varianoes $ii.1im at NYCT, $2.4M at UTAHO, S1.4Mat MNR, and SO.4M al boiit 8&T of $8.OM at NYCT, $2.461 at MTAHQ, at MNR, end SO.OW at8&t. and tile LlRR. Ul 0> Oveltime NR (1.5) (3,4) The Ilflfavo«II* resultlargely' I1IfIecIs Ihe lmpact of higher (<I.6) (1.6) The \IIlIavorable result largely refjeds Ihe impact of Ihe _1eraIion of vacancyfabllolnlee ~ requiremeni!i, continued Sandy-reIaIe4 wodt, Ihe MaInIeMnc:e ofwa'llj1ffa$lludure ~ Program ami end more bus load calls aitributabie 10 heavy riiin and hot wea1ll«- filt:ieased ~ W\be NHt d6aiimeni and sdieduled $~ ($1, 1M) at NYC!; \be ~f lmpacis of Sandy-RIJaled WOIf(, ~ coverage - ('1.7M) at MNR; Ihe residual impacisc of~ wodt. repajrt;. of defeetti fqa\d 011 sc:heduiad 1AspecIions. and IIigIIet ac:ceiei'a1ed rapaiis of defedi fili.ina 011 sci1eduied in6pe!::tion&. ami ~COYerage~- ($O.. 6M)at MTASus; andlhe IIlQher ~blioiniee coveri!je reqiliremeni1s - ($1-3M) at MfA Sus; acceieraiion of \be Malnt-.ce of Wwt lfifrasln.jdin Improvement IIlg/Ier ~ coverage requ/remimi$. CO!IIinbed Sandypmgram- ($O.3M) at MNR. These _uiis _ paitialiy otfsei by a related wodt, and more bus load calls altribulable to IWIvy riiin Ilfldbol favciiadie 0lIl_ of $O.3M at 8&T primarily due to lower l'tiqiiin!tmel'lls for wea1ll«-('1.1m) at NYCT; III1d IIigher ~ 0lII!Itlme- VlICIIIICyIallael\lee ~ (See 0veItime 0ec0mp0sIII0n Report for ($119M) al\be URR These resulis --. ptiitia!iy Offsat by a favorable mom deialt$) outcome of $O.3M at 8&T primafity du& 10 lowe!' I'IIqIIireme!1I for vataneyhlbllenlee CO\l8fllQ8. (See 0Vertlme 0ec0mp0sill0!I Report for more cieiaiili) HeaIIII end WeIfat'e n NYCT IlIId afavonlhlo 1/aIiaoce of 'H.3M primafity du&to lower rates. 10,5 2.3 NYCT IlIId a flmlfllble ~ of $11.3M jxlmatliy dllll to lower RItes. SIR III1d MNR /lad fawrabie vari>inees of $O.3M each, mainly due to SIR had a fa~ Wriance of $O.3M mainly due to III'IIICQ'U8i accruai~. 8&T _ $O.2M favcratlie primarily due to higher adji.isiment. The lirr was SO.3M favombie. primarily due 10 higher vacancies. n-1'8$uiis _ partially offset by l1l'i mfavorabie IIiIrianr:e of ($O.aM) at UTA HQ primarily due to tlmlng. VIICIInCies. n-~ -. partially offset by ~ variartl:e$ of ($O.9M) at MNR piill'i8riiy dllll to higher lm!i1lme and (SO.eM) at UTA HQ mainly due to liming. OPES Cutrenl Paymtmt NR L_~, fewerrelkea, and IlmIngW8R'l _pcnsibletorf~ LOWIII'rates, ten.- Je!irees. and tlmlng POMible for flmlfllble V8lilIooe$ of '1.2M ai UTAHQ end 'O.lIM at \be L1RR These favorable ~ _ pat1/aft)f offht by an iiflfavombla vaiiailce of ($1.3M) at NYCT ~ of $2.3M at 1I1e URR and '1.2M at MfAHQ. These favorable _\Ills--. p8/1liiiiy.oi\'$ei by an unfawntb!e ~ of ($1.3111) at due 10 tlmlng. NYCT due to II!nin!J.

156 METROPOUTAN TRANSPORTATION AUTHORITY JULY FINANCIAL PLAN 2013.MID-YEAR FORECAST EXI'LANA'OON OF VARIANCES BETWEEN MID-YEAR FORECAST ANI) ACTUAL ACCRUAL BASIS JUNE 2013 ($ In mllllon$) JUNE VEARTO-DATE Ganem R_nue Nonreu'nb FlWOI'DbIe Fl.\\tOtabie.91" Ex~. CAI!Qg!'y ~ It.IlIfavorable! Rwons lor Varillnce IUnlavorableI RftAA!!! for Yariat:g 1"_100$ NR J '-! I li TIIlIin9 wasl'e$pl)llsible' for favooibie variances of $15M a\ NYCT and Timing was responsible for favorable WIIiatl<;e& of $11lM at NYCr and $DAM a\ IIle I.IRR. $O.7M atllle LlRR These (esu/t$ were pa!1laliy Olfsei b1!it! untavcrable variance of (SO. 1M) at MNR due to Increased ~ costs related to a delallmenland~ InfI'astructure l~ ~ Other Fringe Senerlis The lirr and MNR had favooibia variances of SO.1M and $O.5M The llrr and MNR hadl_llle 118fia_ of $t.7m and $a.em. reapeciiveiy, due to tile timing of FEtA lmienmlty payments and acaual f\!spectlveij. _to Ihe liming 01 FEi.A indemoiiy ~nt$ and IlCiCI'IIal /iidjii$tmeni$. ~. Reimbursable 0vedIead NR 1>'0 22.S The timing of projaa adiylly wa51811pq11slble for favcrable VGrtanoos of The timing of pnljeci admty _ re$pqllsibie tor II!MlI1!IbIe vatiancais of SS.5Mat NYCT.$1.2M III MfA HQ and SO.4M altile llaa. and an SS.5M atnyct. $1.2M at MTA HQ and$o.3m atllle lirr, and an IIl'IfavoI'abIe woanca of ls1.1m) at MNR. UI1favonIbIe variance of ($UM} at MNR. Elec1ric Power NR (0.1) (0.2) NYCT was (SUM} III1fa'IcraIl!e _ to liming. Partially offsiiiung Ws result (0.3) {(I.1) The!6lfavoolble vmi8nce retleclslhe Impact of 1Iming- ($2.3M) at were favoiailie IIIIIianCeS of $ at bgib!he llftr and MNR and SO.5M NYCT and ($O.9M) at IIIe llrr. Partially offseiilng these reslllls _ at MfA He mainly due to lower rates and liming. In tiifdlikin. SIR was favor8bie variances of $2 1M a\ MNR and SO.BM ai MTA HQ mainly due SO.4111 I'avorable primarily due to aceruai adjustments. to lower rates and tlmitlg. fn addl!jon. SIR WM SO.4M favorab/& primarily >< _ to aa:ruai adjusiments. T Fuel NYCr was $UlM favorable primarily _ to lower CO!'ISUrIIption and ta\e$ ! NYCT was $1.OM favoia\ile primarily due 10 blwet colllliulllptlon and MTA Bus was SO.7111 tavarabie prima!lly due to liming and rates. The LlRR was SO.3M favmabie primiiiiiy due to lower COO$IIIIIIIflOl. rates. MTA Bus was $O.1M favorable illiis1iy due to timing and rotes. The llrr was $1.OM l-.iite mainlvdue to lower ccnsumpfion and tirtjing. PaItilIIly o!fseiiino I/le$e resu!ls _ WI IlI'lfIIvIlfabI variance of (SO.8M) at IIINR I!tt!IeIY IIue to liiglw healing fuel prices. InSIIIlIIlCe NR {(I. 1) (7.9) FMfAe had an IIlIfawrable varianc.e of ($O.5M) due to 1irnIn9. MT II HQ (0.1) (0.9) FMfAC had!it! unfaycpwevllliance of {SO.lIM) due to liming. MT II HQ was ($O.4M) Y'IfavoIabIe primaiiiy due 10 IligI1er payments fdf In$IKI.\I'ICI:l was (SO.4M) ~ primarily IIue \0 higher ~ fori!\$ul'8l\ce aervice$ relaled 10 f'ema rfiixmiiies. Parti!lUV oftselllng these IUUIIs SlllVK:es relaied 10 FEMA 11ICOVllIlea. P8ftla\Iy offsetting these results _ f~ v.iances a\ NYCT of $O.5M IIue to timing; and $O.3M a\ were 1avorab/8 tiiiiiiinc:es at NYCT of $Q.5M due to liming; and $ti.3m at 8&T, maiiii1 due 10 lower property Inswance ~ 8&T, fili.iiniv due to lower PJQPeI1y insuiance~. ClaimS NR (1.7) (ttl!) FMTAC was uni~ b1 ($t.i!mjdue to It sllgilt incfeae in claim (1.6) (1.4) FMTAC _ unfa\klrtible b1 ($'.I!Mj due to a siiqht incre_ in claim activiiy /Dr!he tnoijih. dviiy forthe MOIlIh. Pataliansit SeMce C<lnInrIcts NFl liiyet was $3. 1M f4wtailie maii!iy due 10 fewertrip$ NYCT was $3. 1M f~ mainly due to f_!.iips.

157 METROPOUTAN TRANSPORTAllON AUTHORITY JULY financial PLAN MID YEAR forecast EXPLANATiON OF VARIANCES BETWEEN MID-YEAR FORECAST AND ACTUAl ACCRUAL BASIS JUNE 20'13 1$ In miijioml JUNE YeAR-TO;()ATE Generic Relienl.le Nooreimb Fawrable Fawrable or EXf!!!!se 9!!$IO!Y ll!..b!!lmn IU~1 Reasons fllt V!iMiaru; illl!favorablel R!!I$!!ll!i for V!!I'Ia!l!;e I l! I l! Maintenance and Olher 0peraIing NR (3.3) (6.2) The overall thlfalioilibie _It was twgely IIIlrtbutable to IlmiI!g: (SS.OM} at (0.4) (0.2) The OYerall ~ rew!t WiI"argely attrill\iiabie to 1IminQ: ($6.oM) ContracIII NYCT for _ veiik:ie meiniemllce and rep;rln; and ($2.1M) at at NYCT for IIOIl--ffMlI1Ue vehtdtj IllIIloIenance and repalts; an4 (S2.1M) 8&1' for l'ilijilf malntena/1i:e and painting. In addlfloll. SIR was ($1.1M) _ 8&T for major~ and painting. In atldililm. SIR was {$1.1M} LIlIfaIIomII!e re1iedinq e vetjide ~ incom!ciiy ljudgeled unfavorable ~ _ vehicle ~ Inc:oml\lIly In MaleMia & Supp\k!$. 1lt;l$e ~ reauli$ were partially oiisei by budgeted to Materlala & SlIppllti. The$e unlavorabi& -..IlIi _ favorabiell<lliance$ Of: S2.5M at MTA HQ due to the liming of 2 B10adwIIy partiaiiv oiisei by faiiciabie ~ due to timing: SViM at MNR due maint_ cootracis; $UM at MYA Sus (eileding 1I1e purchase of bus Ie!hell_ of expenm$ for~ ~ and GeT 1IIiliIie$: eomponents incomictiy cha!"ged \I) MaIerIaIs & SupplielI; SO.8M at MNR $2.5M at MTA HQ due 10 the timing or 2 Broadway maint doo \I) tile timing of ~ for matntenance tooiracia. fei'!y ~ and COIlI!aI:!s; $1.eM at 1I1e URR due to!he IlmiIIg of expenm$ for GeT uiili1ies; and SO.3M at Ihe lirr doo to the timlng of expeiliiiis fur vegetatkln, IItIVironmenlallllld piaitt ma\nteniiiice, HVAC~, HVAC ~ eie1iaior & esclila/i)r repairs, sewiiy and lllevator & escataillr ftlpeits, less and sewrity; and $1.4M at MYA Sus _iillnmeniai and pianllii8ittienanoa, I1IIIacIing the poo:iiase of bus ~'lmoirecily d'uiiiged to MaIetials & Supplies. ~ &. CO Professional SeMce Con1raQs NR S The overall filiioiab1e result _ primarily allribulable to timing: $2.oM at The overall favorabiel\e$llllwas primarily atilibuiabie 10 timing: $<I. 1M at MNR roiiei::iin!ilowilf expenses for IT, audit and legat semces, bridge UNA reiledlng IoMf ~ for IT, legal SIINIce$,~.~. i/)spildloii$ and ti<!ining; $1.SM at tile LlRR for ba!dwarei&oftware Insped/Qn., temporary s«vicft. medical SIlI'\IiI::e$ and trainii1!1: $2.8M at expemes and II redassificallofl of parlting /acililies payments \0 the URR \or ba!dwarelliofiwin 8ICpet'ISU and II l'8ciaaificaiion of Maintenance and Olhef Opetatlng CDI\It'aets; $1.1M at MYA HQ ftltledin9 parlting fa<:iillle$ payments 10 MalnIenaRce one! Olher ~ Superstonn Sandy repalia rectasalfied \0 OIIW I'IuslnI!$s Expense.$; one! ConII1IcI$; Sf. fm at MYA HQ Il!IfIecIin9 SupemoIm Sandy repaiis $O.3M at met primarily for IT IliIIUwaIe and p!ofilsslonal seivlce 1'I!CIaslI!fled \0 Other Business ~ antf $O.3M at NYCT pr!rn$rily ~. lor IT ~ antf ~ terw;e expena!'s. Pmllatly oifseiiioo Ihe.$e ftiw!ts _ an unfavorable vaiiai'1ce of ($O.7M) at MTA Sus. MaHmaIS & Supplies NR SIR was $2.OM, fiwoi'ai:ile reiledlng vehigie ~ that SIR was $2.oM. fav!lfilble refieding velllcle poo:iiasea that _ COIfI!CI1y recon:ied under maintenance eoniniida bui inalnet:liy _ COII'(ICIIy I1IWRfed under mainiel\iince ~ bullncoitediy budgeted undl!r material one! auppl1es. The LIM was $1.8M favorable due biidgeied under ma!erial one! sappiiea. The LIM was SUN fawtabie \0 ~ IISage or IUtlIIing tepalr ma\etlal for the MU lieet, delaved <:-3 due 10 IoMf usage of IUIlI1iIlg repair ma!erial for the MU l1eet deiaye!.i <:- HVAC BIOdilicallon and propiii$ion coriiio/ unlilnitiailves. and timing. S HVAC BIOdifu:allon,and propuiaion c:onii'of IIIJit iniiiativea, and timing. These ti!suftj; _ pai1i8iiy oifset by UIIIilYorab1e liilances of ($2.1M) at These results _ partially offstt by unfavomble wrianees at ($2,1M) met due \0 tile timing of vehide mainienailr:e req~ antf (SO.8M) at met due 10!he t1mlog of veitidct~ requiniinenfb and at MTABIIa reiieding \he purc\1ase of bus eompanents that siiiluid I1awe ($O.6M) at MYABIIa reileciiilo tile purdiasa of bus ~ that ~ lwfleded under IIIaInIenan e contracts. $houid have been re/kided under mainteniince ~. Other Suslneu Expenses met was $1.1M ftworaiiie mainly due \0 tificiemin:l for siatlonery and NYCT was $1.1M favorable mainly due to!iiideriurls for~ and 0Ihef e~. MNR was $O.1M favorable ref1el;ling klwef HJT SUbsidy oilier eicjims8$. MNR was SO.eM f~ IllIIeclln9Iowef NJT JlIIymetlIa I8IIlIIIlng from an accruat adjtlsttiiel'\l 8&T_ $(I.5M favwabie IIUbsIdy paymeijis resujiiilg from an aoauai adjulillmlll. 8&T was due \0 1ower--1lWll! forecasted C2I!IIfiIIdebit caid t_. These resuits_ $(I.5M fawrabie due \0 lower~ credit/d\lblt card feu. partially offii8t by an ~ variarte:e of (SO.8M) at MTAHQ re!i!ir.tfn9 TIming was ~ foftlle $(I.3M IavoI'abIe \/8Iiancle at.., UM. ~ for SupersIom! Sandy that were iileomictiy ~ in These -..us_ partiiiflv offset by an unfavorable vmartce of (SO.8M) PR'fe$sion/II aerviees. at MT AHQ reiledlng repalls for Supers\omI $andy fhat _ incqirediy forecasted In protes$itmai~. 0Iher &pen$e AdjuS1menlS NR (2.7) Variallce due \0 lheliming ililnter-agenc:y sub$iciie$. {2.7} (18.1) VlIriance due \0!he!irnIr!g of infm~ $libsl4iea.

158 METROPOUTAN TAANSPORTA1lON AUTHORrrY JUl.. V FINANCIAl PI.;AN 2013 MIDYEAR FORECAST EXPLANATION Of VARIANCES BElWeEN MID-YEAR FORECAST AND ACTUAl ACCRUAL BASiS JUNe 1013 ($ In millions) JUNE YEAR-TO..oAI! Generic "_nlnt Noorelmb Favorable Favorable or Exp!!!!!! Ci!l!S!!!l': Iltll!!l!!l!! I~l RellSO!!!! for Varlanc!! l!.!!l!avorabiel Reasons (ptv~ I ~.I jl Oepredalion NR U 4,6 Tlll'llng diiferem:es In project <X!mpIeIiona and a$$el$ reaching beneficial 5.7 ItS Timing dillerences in p!i)ject complelionll and Mtet$ reaching beneiiciai use resulted In falloldblnal'iances of$6.9m at NYCT, $1.514 lit MNR. use resulted in fawlable vwtance.a Of $6.9M at NYCT. $4.114 at MNf!, SO.7M lit SIR. and $0.414 at 8&T and an unfavorable VIIIiaIICe of ($06U) at SO.1U at SIR and SO.4111 at 8&T aod Wlfl.lVOf1IIIIe 'IIIIianCea Of ($5-1Mi lit MTABus. lila LlRR and ($1.3111) at MfA Bus. OIlIer PosI-Employmell\ BenetiI!l NR ,0 Tile GASB adjujlmenlltllecls IIle value associaied wiih the UI1fIInde<I TIle GASB adjlltilment reited.a the valu<t IWOCiafed WillI tile untunded accrued JiabiIiIy lot post employment I>enefIIlI. aio';ciued liability for post empioyrrmt 1IeIlfIits. Environmental Remedlalion Nil Tile favorable IIIIriance resuiis trom r-r projeci$ requi/ll1g remediation at (0.6) (22.1) OIIerall. untavorable VIIIiaIICe.-et!ects higher remediailon etroru Of MNR. ($1.1M) at MfA Bus pactiaiiy oli'sot by few!!.- projeda II!IjUirIng remedilltion at MNf! (".1M). Capital & OIlIer RelmbuIsement$ R 1a.a 16.1 Timing Of project adivity was responsible fer lavoraiiie varianc:e& Of TIming Of project activity... ~ble foffawmble ~ of $16.9M at mct. SO,7U at MTAHQ, SOAM at SIR 8I!d SO.4M litlhe lirr, and an \Il'lfallOl'llble dtiance of 1$2.4M) at MNR. $16.BM at mct, SO.7M at MfAHQ and IQ411i at SIR, and unfa1lol'llbie VIIIIanceS of ($6.2111} at MN!< and ($I.5M) atllle lirr. >< Payroll 10.1) (1.6) TIle overall unfavorable vallance was primarily due to Ihe timing of piqject TIle overall favoiable variej1ce _ prlmatily due to Ihe IImiI'lg Of project "I IIdIvIIy: ($2. 1M) at NYCT, partia!iy Off_ by r-able vwtance.a Of SO.7M I\CIivlIy 8I!d vacancies: $3..oM at Ole LIRA and SO.5U at MNR, paiiiallv (.11 <0 at MNf! and $ at 1Ile LIRA. oiimit fly an unfa1iotal!le vattanc:e Of ($2.1M) at NYCr. Overtime R (5.7) (61.6) The untallolable CIiIIalIII<it reiied$1i'i/i impact of higher Ir.iCk worlt, {s.n (9.0) The IlI11avIlfaIIIe outcume refiitcis IIle Impact Of h!!jher track work, infrasiruciure. and $IaIIonenvironmenllBqUillllnel\t$- ($S,1M) at NYeT inlfastncture. and IIIaIiOn environment requ\l'enlenla - ($S.iM) at NYCT, and higher flr)jecilitiliviiy - (SO.8M) atllle I..IRR. and liigbaf project II!ltivIty - (SO.1M) lit MNR. HoaIIh and WOI!afe R n.s 10.2 NYCT had II favorable ~ of $0. 2M due primi Il, to tower rates willi", NYCT had a favoiable Iflll'iance of SO.2M due p!'imi!iiiy 10 lower met.. MNf! _ $O.2M IavofabIe mainly d",,10 the timing Of project activity. 0It1er Agency varfaii<::et MIll minor. Pensions R (0.5) (8,5) Ttming _ responsiiii8 lot an unfavorable variance 01 ($0.414) lit Ihe (0.7) (3.8) TIming _ respansillle tot an \IIlfaVOIabIevariance of ($O.7M) at the LIM. LlRR. 0Iher Frlnge Ben8fit$ R (1.3) (lu) NYCT had an UIIfavorable dtiance of ($1.SM) primarily due to 11'1/1 liming Of (i.0) (is) The liming cit project adhlry _ ~ for an unflworabie ptojecil activliy. vartanc::e of ($1.5111) at mct. pariiaiiy oifset by II favorablev~of $O.6M at the LIRA. ReiIJIIlI.II'Sab 0VeItI8ad R (S.l) (22.9) TIle liming of project acilwity!mis ~ for WIfI.I1IOI'IIbI varianees Of {52; (3.5) TIle liming Of project adlvily _ r&$poi\$ibie for~,,~ ($SSM) at NYCT, ($1.2111) at MfA HQ and ($O.4M) atllle LIRR. and a of ($5.SM) at NYeT. ($1~) ai MTA HQ lind (SO.3M) ai tile LIM. and a favorable YaIillnce of $1.0M at MNR. favorable varianc:e of $1.8M at MNR. R Minar variance The L1RR _ loam favorable, maii'iiy due 10 lower project activliy. OIlIer Agenc:J vllriark:e$. we.-e minor.

159 ~ METROPOLffAN TRANSPORTATION AUTHORflY JUI.. Y FINANCIAl.. PLAN 2013 MlQ.YEAR FORECAST EXPLANATiON OF VARIANCES BETWEEN MID-YEAR FORECAST AND ACTUAL ACCRUAL BASIS JUNE2D13 ($ In mlillon$) Generic Rftitnue Nonreimb Favomble or Exl!!rn!! CateJoIY ~ (1JntavoraI>I$) BIW9fl!! for V!!!i.aooI ~ and Oltter 0pemIing R! Ill.S} ~ (7Ui) The timing of projed actmiy was resjl<lll$lble for unfavooibki variances of COl'llrads ($UM) at MNB. ($1.OM)atNYCT, and ($O.6Mj at tile URft JUNE flworlble ltlnfavgrablel B!Ili!!lO!!s for Variance! ~ (2.3) (1.9) The timing 01 p!ojeet lilcwity _ relflollsibie for unfavorable \'IfIIan(:es 01 ($1.6M) at MNR and ($1.OM) at NYCT, and a favoratlle variante of SO.3M at tile LIRR. (1.2) (25.9) NYCT had an unfavorable variance 01 ($;l.3m) mostly due 10 tile timing of daia.cet1ier. EDP ~ & i8pciir and IT hardware elcpeilslts. The URR WID (SO.3M) I.IIlfavotabIe due 10 lite tlminij 01 project activity. ParIIaIly oifslllling ltiese re:su!ls were f8vm\ili611111'iances of SO.8M at MNR and SO.6M at MTA HQ.alsCdue 1I)1he IlmiII9 01 project adivily. (1.3) (6.2) NYCT had 31\ Ulfavoratlle varianc:e of (S2.3M) moslly due to tile liming of daia center. EDP maintenance & repair and IT han:iwwe expei'ise$ The LIRB was ($1.4M) unfavorable due II) the timing 01 proje<:i actmiy. Partially oi!seiting 1he$e testi/is favorable II'lIriaIlce$ of $1.8M at MNR and $I).tiM at UTA HQ, also due to!he timing oiprojad~... >< 0) a Materials. & Supplies Other 8uaInes$ Elcpense$ R R (1.0) (10.3) Ttming of project ar;iivity was responaible for an urlfavorable varianco: of ($2.OM} at lite URft SIR was (SO.8M) IiI1fIMlIlIble due to malerial lequlremimls for eignais and SI. George SIaiion pti)jecis. Theee results partially offliitli by favorable varlallces 01 $ at NYCT due to lite timiiig of non-vehk:le mainl8i1iiilc&1liq!iiremenis and SO.liM at MNR due to PIOJeet delays and 1he timing 01 e)(pentes. (0.3) (45.0) Tim1n9 _ responlblefcr an unfavol'llble variano:e of (SO.3M) at N'fCT MNR was $4.2M favorable due to prujecl delay-sand the liming of expenses. NYCT was SO.9Mfavmlblltdue 10 \IIe'limillg 0I1lOIW8hiCIe mainlenante~. These results were pal1laily offsei by an unfavorable variai1ce of (SO.8M) at SIR due 10 ma!eriai requiremerils for signai$ and Sl GeoIlJI'I station pmjects. SUbslcfl8S NR The sliglllly flivofabkt variance of $14.3 million for tile month rei1eci$ mosily higher acq1iiii$ for PMT ($39.3 million) due to Ilmlng. ThIs was pattiaiiy ofmt by lower 8CQ\laI$ for teal e$late IaJIe$ (liitian T axe_ of $n.5 million and MRT1 01$2.6 I'I1ll1i1iln} due II) lowef~ li'ailsadiom.iowerpbt ($8.1 million) an4 CilySUbsldy II) MTA B1I$I$4.0 mmlioii} due to timing The sligiiily favotabie ye.aho-daie VlIIlance 01 $12.4 mlliionrelle<:t$ mostly IIigIIer accruals for PMT {$39.3 million) due 10 timlng. oiiset by \Il'IfavorabIe real estate Ir3IIsIicIioI\s ($14.0 milfton), and tower PST ($8.7 million; and City StIbIIIdy to UTA Bus ($4.7 ml81on). du& 10!lining. OeIltSeMce NR The favorable variance is due primarily 10 lower II\iln budgeled \/atiabie mitis The favmibiit year-lchfate vanance 1$ due ptinwi\y to IowI>r II\iln budveied variable /ates.

160 " METROPOLITAN TRANSPORTATION AUTHORllY 2013 July Financial Plan - Mid.. Year Forecast Overtime Reporting June 2013 The attached table presents consolidated results of overtime followed by an overtime legend. For detailed overtime results please refer to the Agency reports located in the financial reporting sections of Agency operating committee agendas. Below is a summary of the major consolidated variances for June 2013 (year-to-date) OVERTIME REPORTING.. PREUMINARY JUNE RgSULTS (NON-REIMBURSABLE) Month Total overtime was ($1.5M), or (3%), unfavorable to the Mid~Year Forecast. Weather Emergencies was ($2.2M) unfavorable. primarily due to continued Superstorm Sandy-related work, in addition to heavy rain and hot weather which resulted in more bus roadcalls at NYCT. Vacancy/Absentee Coverage was ($1.3M) unfavorable. mostly due to higher vacancies and absentee coverage in train operators, conductors and bus operators at NYCT. ProgrammaticIRoutine Maintenance was $1.1 M favorable, primarily due to the diversion of non-reimbursable labor forces to reimbursable projects at NYCT - mostly for the Subways Capital Track Program. This result was partially offset by the acceleration of the Maintenance of Way infrastructure Improvement Program at MNR, and accelerated repairs of defects found during scheduled inspections at MTA Bus. Year.. to-date Total overtime was ($4.6M). or (2%), unfavorable to the Mid-Year Forecast Weather Emergencies was ($2.7M) unfavorable. primarily due to continued Superstorm Sandy-related work. in addition to heavy rain and hot weather which resulted in more bus roadcaus at NYCT. Vacancy/Absentee Coverage was ($2.1 M) unfavorable, mostly due to higher vacancies absentee coverage at NYCT and MTA Bus. XI-61

161 METROPOLITAN TRANSPORTATION AUTHORITY 2013 July Financial Plan - Mid.. Year Forecast Overtime Reporting June 2013 Programmatic/Routine Maintenance was ($1.2M) unfavorable, primarily due the acceleration of the Maintenance of Way Infrastrupture Improvement Program at MNR, as well as accelerated repairs of defects found qn scheduled inspections at MTA Bus. This was partially offset by a favorable variance at NYCT attributable to the diversion of non~reimbursable labor forces to reimbursable projects - mostly for the Subways Capital Track Program. Scheduled Service had a favorable variance of $1.6M, mostly due to the conversion of overtime into increased head count in the Mid-Year Forecast that wilt be reflected in July's results. This resulted in an increase in Payroll and a decrease in scheduled overtime at MTA Bus. XI _.-..._-_......_.. _._-_._._.._-_

162 ~ NON-REIIIBURSABLE Ow;RTWE Metropolitan Transporlatiofl Autilority 2013 July Fmancial Plan Non-ReimburaabJelReimbumabJe 0vertJme ($ in 1IlIlioml). June Mid*Year Forecast Actuala Var. favj{unfav) June Year..f.o..D.afe Mid-Year Foreeaat Ada. Va~FavJ(Unf.a } Scheduled Se!YiPe UnslWedu!ed ~ Prpgram~ou!in! Mainl@nance $14.7 $14.2 $ % $6.9 $6.9 ($G.O) (O.2%) $11.7 $1G.6 $1.1 ~.5"10 $93.5 $91.9 $ % $45.3 $45.5 ($O.2) (O.4%) $69.1 $70.3 {$1.2} {i.a%} Unscheduled Miil'ltinl!!Q! $02 $0.2 ($O.1) <!BS% $1.6 $1.5 $ %.. x 0> (..) I., Co~rafle. Weilllm: E!!:!f!I!Ulnclel $6.8 $IU ($1.3) 11t6% $2.0 $42 ($2.2) % $36.6 $38.7 ($2.1) -&.1% $34.8 $37.5 ($2.7) -7.8% Safetv/Securill/Lmx gnfon:.ement $1.6 $1.4 $ % $8.6 $8.3 $0.3 31% ~ $1.2 $1.0 $ % $6.7 $7.1 ($0.4) (56%j REIMBURSABLE OVERTIIIE Subtotal TOTAl.. OVERTIME $44.9 $46.5 ($1.5) i3.4%) $8.5 $14.3 ($5.7) (67.0%) $63.4 $60.7 ($1.3) (13.. 5%} $296.1 $300.8 ($4.6) {16%} $63.4 $69.1 ($5.7) (!lo%) $359.6 $369.9 ($1(1.3, (2Ji%) Exceeds 100% NOTES; Totals mv not add due to rounding. Percentages aj11 based on each type of Overtime and not on Total OvertIme. SIR Overtime data 18 included in "Other"

163 METROPOliTAN TRANSPORTATION AUTHORITY 2013 OVertime Reporting OVertime legend Definilion Scheduled Service Crew bookjregular RunlShjft hours (above 8 hours) required by train crews, busltowerlb!ock operators, transportation supervisors/dispatchers, fare sales end collection, Train & Engineers, as well as non-transportation workers whose work is directlv related to providing service (includes coverage for holidays). Unscheduled Servics ProgrammatJ~outine Maintenance Unscheduled Maintenance Vacancy/Absentee Coverage Weather Em&rgencies SafetylSecuritylLaw Enforcement Service coverage resulting from extraordinary events not related to weather. such as injuries, mechanical breakdowns, unusual traffic, tour length. late tour relief, and other requirements that arise that are non-absence related. Program Maintenanceworf< for which overtime Is p'anned (e.g, Railroad Tie Replacement. Sperry Rail Tasting, Running Board Replacement Programs). This also includes Routine Maintenance work for which OT has been planned. as well as all other maintenance 0J?t muttlng from Vl@Of$IInaCi events. including running repairs. Program/Routlne maintenance work is usually performed during hours that are deemed more practical in order to minimize service disruptions, and includes contractual scheduled pay over e hours. Resulting from an!xfraordlnary mot (not weather-related) requiring the use of unplanned maintenance to perform repairs on trains. buses, lubway and bus stations, depots, tracks and administrative and other facilities, inc:luding derailments, tour length and weekend coverage. Provides coverage for an absent employee or a vacant position. Coverage necessitated by extreme weather conditions (e.g. snow, flooding. humcane. and tornadoes), as well as preparatory and residual costs. Coverage required to provide additional customer & employee protection and to secure MTA fleet facilities. transportation routes, and security training. Other Includes overtime coverage for clerical, administrative positions that are eligible for overtime and misq(i!llaneous overtime. Reimbursable Overtime XI-64 _.. '" _._.. _-_ "

164 ~~ ~ ,... _..._..._---, _... ~crued Su/aldlu: ljruiio_r_ MEtROPOUT AN TRANSPORTATION AUl'IiORITY Jllly Flnanel,1 Plln 2013 Mid-V, Foree.. t COtItolldNd Ace""lIl Subsidy 0lItIIII JlII {$ln~1 _Vto. F_to, tt<tm!\t~tio M'''''' "'''''''.. 1M.. Trn\_ali<l~ Op;nllllg AUlt_l'urtd (MMTOA) $Q.O 14tro_aulln... r.. IoIRT! (0«1..) MAT 2 (QlQu) \If!lenT'''' h,.._llnc_ 1U It.5 U 'U O.~ $14' (8,71 flu (2,') u 0,1 30,\ (11,5 (0,3) 11.1 ($211.&,... ". For."... ' V_,~IIt.., Milia' li.ritii.. 1I,SIU 1,518, Jl ~.1.9 (3.1) IIBA (2.1) ~u ,1 au 25U (IUj 0.$ {(I,5) U.14M $U24.t 1'1f.!) 1ft., SUIe T",.. 1tIt4 F... P.)<tOiI~T... PlyroMMot>lli!Vr... Re","""""",F",,u. MTA AAI Tlx..' a,u ou 928 "".2 73,2 3U 01.4 US,»7.4 J3U,. &., au & e.: ItOU «.11.7»903 St""'_Lcc.I$~ ms OporatlnOMJiot... NYC lim Lou118b' /low Y01'!I Cfty 1I... c,,""1>' 80M c"uiiiy w.jtli.. li, c"""... "",,,.mo..ttty ~.Ctw\1\f 0'*'01 CcUIIIy R_CcUIIIy COOT Sub_ Stllion MtlnltntnU lii.i_1&1 ee*-ttd ru.." SlIIfjI an" I.oullll.lbaldl.. U 13.1 us.. t34u M (0.4) IU M $11.7 I'M) $HU ttl.) <,.!.u 187.!1 1.9 U lui lui 1.$ H 1.) ( 0.' 0." 0.4 0, (H),;" 3IIA tuj n.o ltv 'U f»"" 12",4 1t3.1J U... 2.'-'011.3 $17.1 e;1y Subtllllllo MTA Ili.t ~ (4.~,«o.s wr total 0t4I«1.", TI "SlIIfjI and LoC<lII1_1H mra $ t1u fm4i.1 13."4.1 $'204 _t"'-"'ll1 hb.rdy rran._ II&T Op.. Oli"\lIl... T."... 1er 49.8 $.I'" 13,0 4U $ltta I4U 20M 30U 41.Z t2u.o UOe.l «l.3 TIIIII Accnad $ublitdlft $.137,2 $414.1 U7.&».eo... U,teU $SU '."en... VehlCl. Rogltl11ltion, TOl<l.nd _ Rentll F... Not.: Ot1ftr_.,. ~ ID rckin<liflg XI-65

165 ...., "' "." _". "w.,,_""._,, "'" """",,. --" ME'lllOPOUTAN TRANSI'ORTAnON AUTHOIUTY July I'InInelall'lln au Mld-V r "-"Itt Coft.Olldalad AecnaI $uiiiiily I)IWl l!.li~nlluo!i or 11...,_ ii ill miitioooi h'_~dloo -,-'-~'--~'-~'--~'----'"~--'- 1'0 '-. MRT1l>/tl_tl UlbInT.. "oyr"~t t:oor_ CIIy_dyIllMtA... II&To,...f<1,/liIIfIu' r"".,., - -. 'cc $ 1< ';" w_,_ ~""'_v (f,n (l.11 ",'" ~.-", (11.5) ' ) U~ (),!, {Ulil (Ul (1.414) -_ (2.9%...,...~y.""_'l'W'"'" (i,l% V..H....wmt/io!llY""_..., s......_itv..._, s..._""..._,...,... " "',.," l1y"'i"*'li 1v_1I>... u_t _... _oiiohiy_'"".'*'~"'t tnffllwv,p;ciiy,.1,2 IU~ y. Io_.lIri... _'*'.,.IInoriIyIO~o/~_.w_ XI-66

166 _..._--_.._._._ METROPOLITAN TRANSPORTATION AUTHORITY JULY FINANCIA.l PLAN MIO-YEAR FORECAST (1) DEBT SERVICE ($ In milllon$) Dedicated Tax Fund: NYC Transit Commuter Railroads Dedicated Tax Fund Subtotal MTA Transportation Revenue: NYC Transit Commuter Railroads MTABus MTA Transportation Subtotal Commercial Paper: NYC Transit Commuter Railroads MTABus Commercial Paper Subtotal 2 Broadway COPs; NYC Transit Bridges & Tunnels MTAHQ 2 Broadway COPS Subtotal TBTA General Resolution (2) NYC Transit Commuter Raifroads SridQes & Tunnels TBTA General Resolution Subtotal TBTA Subordinate (2) NYC Transit Commuter Railroads Bridges & Tunne!s TBTA Subordinate Subtotal ITotal Debt Sel'Vice Debt Service by Agency: NYC Transit Commuter Railroads MTABus Bridges & Tunnels MTAHQ ITotal Debt Service June 2013 % MidYear Forecast Actual Variance Vari.nee $32.2 $31.1 $ (0.1\ $38.9 $36.6 $ % $65.9 $64.5 $ (0.1' $108.6 $101.1 $ % $1.8 $0.1 $ $3.0 $0.1 $ % $1.1 $1.1 $ $1.5 $1.4 $ % $14.9 $17.2 ($2.3) Lower than budgeted variable rates (0.7) offset by the timing of BAS subsidy (0.4 receipt. $35.7 $39.0 ($3.3) -9.3% $6.0 $6.0 ($0.1) (0.0) (0.0' $11.0 $11.1 ($O.. 1).1.0% $1986 [ $ $121.8 $120.6 $ (0.7) (0.4) $198.$ $191.3 $ % Expfanatlon Lower than budgeted rates. lower than budgeted variable rates. ~ {1} Forecasted d.ebt "Moe ia calculated based upon projec!&ti monthly deposits ftorn avellable pledged revenuealnlo debt semoe ac:eounta. Actual payments to bo!ldholdenl are mede from the debt urvic:e aceount1 wilen due as required fot each series of bonds and do not conform to this scliedu!e. (2) G4i1nerelly. the C8lendariZallcn of monthly debt serviee depow is calculated by dividing projeded annusl debt service by 12. Month to month variations ('Ilming differences') 01\ the existing debt portfolio can occur based upon, amol\q other things. (ei for au bonds. the date when income fl!)m the securities in whleh the debt se!'vice aceounts are invested becomes available valies, (b) fot va!ieble rate financing" dif(e\"el'k:e$ between (ll the budgeted Interest rate en<:! the ac:tuallntereat rate. (Ii) Pl!)jected Interest payment date. to bondholders and actual interest payment dates to bondholders. and (in) projer::ted monthly funding detes for accrued debt service end actual funding dates. (0) for transaction, with liwaps, the difference between when MT MaTA funds debt.. Mce and the receipt of the corresponding swap payment by the counterparty. end dll'ference between rates received and rates paid end td) for commercial peper, the interest payment date Is the date of the maturity of the commercial paplll' and the dealers set the term of the eommeltial paper from 1 to 210 deys, which Is not foreseeable at the time the annual debt service budgets ere prapared (3) Deb! service is allocated,m0l\9 Transit, Commuter. MTA Bus. and T8TA categories based on actual spending of bond proceeds for approved capital Pl!)jects. Allocation of 2 BrOadway COPs is based on occupancy. Totals may not add due to rounding, I XI-67

167 Dedicated Tax Fund; NYC Transft Commuter Railroads Dedic!ited Tax Fund Subtotal MTA Transportation Revenue: NYC Transit Commuter Railroads MTABus MTA Transportation Subtotal Commercial Paper; NYC Transit Commuter Railroads MTABus Commercial Paper Subtotal 2 Broadway COPs: NYC Transit Bridges 8. Tunnels MTAHQ 2 Broadway COPs Subtotal TBTA General Resolution (2) NYC Transit Commuter Railroads Bridges 8. Tunnels TBTA General Resolution Subtotal TSTA Subordinate (2) NYC Transit Commuter Railroads Bri~e$ & Tunnels rbta Subordinate Subtotal ITotai DebtS.rvl~~ Debt Service by Agency: NYC Transit Commuter Railroads MTABus Bridges & Tunnels MTAHQ METROPOUTAN TRANSPORTATION AUTHORITY JUL. Y FINANCIAL. PLAN MID~YEAR forecast (1) DEST SERVICE (Sin mluiofls) June 2013 Yearto-Oate % MidYear Forecast Actual. Varianee Variance $160.4 $160.0 $ {On $194.9 $194.5 $ % $359.4 $358.0 $ {0.7} $597.7 $596.2 $ % 52.2 $004 $ O., $3.S $O.S $ % $5.6 $ $ $7.2 $7.1 SO.O 0.6% $95.3 $97.6 ($2.3) (0.7) (0.4\ $218.6 $221.9 (t3.3) 1.5% $35.4 $35.5 ($O.1) (0,0) {O.OI $64.9 $65.1 ($0.1) -0.2% $1, $1, $1.3! 0.1%1 $658.2 $657.0 $ (0.7) (004) Exr:lianation Lower than budgeted rates. Total Debt Service $1,086.9 $1,085.6 $ % Note,: (1) Forecasted dabt service ii. calculated based upon projected monthly deposits from available pleclged revet\ues inlo debt serviee accounl$. Actuai payments to bondholden; are made from the debt servica accounts wnan due as required for eael'l series of bonds and do I10t conform to this sdledule. (2) Generally, the ealendari.aallon of monthly debt senice deposits is calculated by dividing projected annual debt serviqe by 12. Month to month liariations ftlming differences') on the Ixisllng debt portfolio can oc.cur based upon. among other things, (al for au bonds. the date when income from the securities in whleh the debt service accounts are invested b&l::ome8 available varias. {b) tot variable rata fmancinos, differences between (i) the budgeted interest rate arid the actuallnlerast rate, (ii) projected interest payment dstes to bondholders and actual Interest payl'llem dates to bondhokiers.ilflo (iii) projected monthly funding dates for accrued debt li&!vice and actual funding dates, (0) for trenaacllollll with swaps, the difference between when MTA/TBTA funds debt service and Ihe receipt of tm corresponding $wap paymenl by the counterparty. and difference between rath received and rat~s paid and (dl for commercial paper, the Interest PSjlIlWInt date is th4 date of the maturity of the commetcilll paper and the dealers set the term of the commefclaj paper from 1 to 270 days, whleh is no! foreheaole at the lime the annual debt ael'\liqe budgets are prepared, (3) Peb! service is ellocated among Transit. Commuter. MTA Bus, and rata categories based on actual spending of bond proceeds fof approved capital projects. Alloc:atlon of 2 Broadway COPs i$ based on occupancy. Totals may not add due to rounding. XI _..._._._._ '

168 ~c_ ~f ~--, ~-. ~lqa~ ~~T. ""''''',''''-; _'_1 -- """'l1li1'"'_... r P l.... ~.~t_~ ~- \<n H'rC<ll1li~nly. ""YM:C#j!.-c-. ~"- f"'-"- it--"- 1<--"- ~"- 1"-" =* ~~TlPef... _I.QCIi~ C4r~_1i5t"_ --- r <:.b ~Tu.&... _tjm::ii... l~ii!4.-.'~~~;:"" 4~"~~ t... ""*RltftW~ ",*'~~""'td~ -- F_.' $$... u.. $I1L1 au ",<,... $tn':tl WI = uu W v_ -_... DIU to, W.: ~. U - -I. : I ](,' II,' <U... ",'"..,.:"... u.. A r.o.u -,..... MU -~I '" :u to u ~ I 1... U a u 75,' ~!I.-. $I.:. t~'1 UIU $I.: $lou 1U... -"I' las I\U $<':> 9,1.... I ul 1» JU.....,',.. fti 1 "' 0.0 q 1,-* t4.i.,... ru AU,... v_ - J"".~',*_Y Ml!11<0l'0I.J1'MI TAnoll AUtHOlUT -,0.:)1 "'"!'IJ>I ~. it,ll I'" I...!",!'IJ>I lo-"i fa t1u ji1t.)j IUU ji1taj... -f<:t..-f_ "-h'~oe"'."'''-'."-.0} "'*' - = - v_ i= "" loll,' "".. $II $U - : I..:.1..:.1 "" "" W fi.3 til!> IU ' -$43 IU.....,. tu _. - 'Oii;;:v_ - - -, ~!ro<"" ,,- ~Jiii.Y_ tota1l -- "'. to'" u.. $0 "'.... SU $J11-2,m2... ou ou ~. 2',,"" %U t.2 2U ft... OS u \U1 u.. ~ 1"'1 u lui ""... " lo-"i u - lu, '",'\... $l... $U SlOl'.' fu,ill 1>:./... -,.. 4.1,1 li.a. u "". "'" mu tma... ".... ILO u In to.., u u "" U <)0 lui U M IU....., IIUlI at a. tit., M... l!/,\ii... II!>!!LOJ U., u "'. II!> ( flu.. u 1t1'1.Jj "JI...,I\!>... uu...,..... mu ~ (m.q 17«2 >..., t4ul.."... SlU PL2 tilt..., UU Ill.. "A fqu -- 1*"&.11 5U sao U... IU... IU... "'" IOU IM.i PL2,",,< ~u QU,... tf_

169 _ WTIIOPQlf!'AII _FOIITAlION AIfflIO!tITY.hI!yF!nan<loll'luIOl1MIQ.'ttarl'_..."""'_."',..., tt.._.. x ---.j o ic--!--r_ == -... "",t_ Iu....., , $110.. ~~T.....,' :>IU """"1- ''''''''21_ :Mo., _, , _- MU_.. ",' tau $'u $<c4 OU 112 twa $IlIWIIWldLtlal U rte.,.t.er::.lt. "-- "'-- ~- ir-- 1<-'_ 1-- a..-_ tots 1m st,uu... """_... raa It-----_.-- n ~-- jut T_.au i", T_e.h_ ",... ' T._ "'Ua!Ma:. ~a~ i tbawf'-m't ~~ U 'OU 11'8 ~U - U.... los... It.... " '.. MO,,--... '-l OJ>... u :1 U U u '" ",0 1$) II... to _ u <6>. $..a... _. $SIU =: ~, 1IS ~l ynf.fo.{j... {U!w "- -""""" t ~,... ""- --'!!""- $OJ>...!OJIi.1 f t -..1lS....., IU... t!6al... -,... He ,". u... s ,'....., u (0.1'1 U OJI.2 I'>~ ".~ 0.' u -... IO,DI 1$2 1>1 i1$.~ $I'M IIfU: m.a... w......,it,, WI.' tilu - flu... $<tu It... 1:1tt~ 4.1 ""OA UU... \1M.""" ,.." '""""... -,- E_!... ",\0 u 2$f; (O.DI. u... U ~2 $Wi2... U." flu: ai,s 119, "11.' U. -(U loa U IU} U. _ m.1 "..... I'J.;\'....u "...'... u......, OJ>. OU If." "" tta.:t l<iu " "'" '. ':11... U at (IlO u $A OJ> u l~ tao >.1 ~,1 U ,"-".,.,u 10-0 a, 0,' 0.. <to... ju' "'. :IS.:> \UI mll $IU IIU I_a fu.l,1.u IIML'!I'UI,... ji's.' 12U ",,'.. U (204 IUU,u.s,.-... $IJI $IJI... tum "OU... '"' -.. At." " 211.' U... ll'l't-l... '"' 4:>MU _... "'.f

170 M61ROPOUTAH TltANSPOliITATlON A\JTI!OI'IIlY JuI,. F/1mtcla/ PI Q1$!l1dY_ FOI'1IC_ Cona<iIldatIId Sublll4y Oul!!;l(pIan.tkm of Vari_ ($ii'iiitoo_1 CWl~I,,* """t""o v",,",,: ~3~_ ; Su«<lll<Cc""" (1.11) w..tcn_ccili1iy (1.$) COOr$~ 14 SO_II... (750) City $_ylo M'fAIIu. ("'.V) NT 0I>mIin0 _. T... U C"tl>~I<i"" v~ s._c_ty (0.0 wa_orc<mnlf 0.0 coor <3.1) st_hl"""... el!y~",m'faiiu. au 01>'''''''0 _. T_tor (7MI (2t.<J u (tu%) Tho "" fwliio.,...liiw dljelc Il1o tmt>g oipi)mol1t 'fto~ "'... I.qlOt. {I)~l Tho..._""'_IorI!lt"'''1h"'''du#''IIIo",,,IIigI>l~ i'1'ti... Il\lI... ""1fI1I11L O.all rmol_._.r.. liiom_... ~MIOIlInlnt. 'fto'-lm"""ili\iiiilf<lof_io. (100.0%) The vllli_w.. d... to \!It UItItn9 CltecOIpI&CI poyment (Sf.ll1) [noomta "'''"I!ICIIII'I'''''''V _ Ct_..._lotJ>oUmIMf.. 1Odh fooillllllom lor MfA IIuL lull IIe...."'... ""._I.tir\1\Jl!Iaf YllIIIf.(o-Oat. -: ~.~. (M'Ii) rs.."""'_l<l<tiio_ i~~~- -""--~-.~....,...,.UOtIIor \lui 1'1_. ( _...""fe,,,,,,..,,,,,,, 33'1iS..~Ior!he... "'" XI-71

171 ~-----~ ~ METROPOlITAN TRANSPORTA110N AUTHORITY July Financial Pian MId-Year Forecast Total Po.mon. by Function and Agency June 2013 MIdYear Favorable! C!!!iOl')' Forecast Actual (Unfavorable. T etal PoaltlOlUl 66, NYC Transit 46, Long Isiand Rail Road 6,695 6, Metro-North Railroad 6, i'9 Bridges" Tunnels 1, Headquli1'ltml 1,711 1, Stslen Island Railway Capital Conatrucllon Company BU$Company , Non-ralmbuJ'Sabie 60,300 68,993. 1,301 NYC Transit o.ese Long island Rail Road ,917 (39) Metro-North Railroad (16) Bridges & Tunnels 1,643 1, Headquarters 1,001 1, Statan Island Railway Capital COllStrucllon Company Bus Company 3,587 3, Ritlmbul'$8bl& ,361 (139) NYC Transit (409) Long Island Ra!! Road Metro-North Railroad Brtdges & Tunnels Headquarters Staten Island Railway 3 3 Capital Construction Company Bus Company a Total Fwi TIme 66,281 &5,08S 1,1M NYC Tranllit , Long taland Rail Road 6, Metro-North Railroad 5, Brtdges & Tunnels 1, Headquarters 1, Slaten Island Railway capital Construction Company Bus Company 3, a Total FullTIme Equivalents (18, NYC TranSit (76) Long Island Rail Read Metro-North Railroad Bridges & Tunnels Headql.larteflil Staten lsland RailWay Capital Construction Company Sus Company (2) ""ow: ToilIl$11IIJ differ dii<i to roundlnll XI-72

172 METROPOLITAN TRANSPORTATION AUTHORITY July Financial Plan 2013 MldVear Forecast Total Poe.flons by Function and Agency June 2013 MIdY r FavorabteJ FunctlOnlAgetl!2: Forecast Actual (Unfav-o... btel Admlnlatratlon 4, m NYC Trans!t , Long Island RaIl Road Metro-North Railroad Brldgeil & Tunnels Headquarters Slaten Island Railway (4) Capital Constructlon Company Bus Company Op... tlon. 2& NYC Transit , Long Island Rail Road , ~ Metro-North Ralltoad 2,102 2, Btidps & Tunnels Headquarters Slaten Island Railway (5) capital Construction Company Sus Company (79) MalnhlnallC41 211,,412 28,& NYC Tranall 20,688 20, Long Island Rail Road , Metro-North RaUroad 3,420 3, Brfdget & Tunnels Headquarters StaUin Island Railway capital Construction Company Sus Company t, EnglmwmnSlC4plhll 1.7SS NYC Transit 1,218 1, Long Island RaIl Road Metro-North Railroad Btid9flS & Tunnels 151:1 160 (1) Headquarters StatI;In Island Railway Capital Construction Company <4 BU$Company Public Safety ,$94 53 NYC Transit Long 1$land Rail Road Malto-North Railroad BrIdges & Tunnels Headquarters Staten Island Railway Cap/tat Construction Company Bus Company T otiil Position. 66, ,118 XI-73

173

174 S/i.:~i21H ~ MTA Subsidy, Irnemgency Loan Wld Stabilization Fund TransaetiollS' Cash Basis (millions I Current MOlltl! Sbll!iliQtio!! Fnll!! Y!!r 10 ISlle ~tabili.mii()11 flll!d Cu!!2l.l!u'~r TnlIlllit C!!!llmllter Tl1l1lsij iglllimoifd) lta Si!bl ~ U~DeralW} ITA Stahl From Date O6!O1/13 II!!!! lj6iolflj OIIOII13 To Date' OIIOIIlJ OllO!1l3 06I30fl3 O6IlOllJ 06I30fl fB 06/3{) /13 p",p~0fj Qeentnl[!!a!aDee RECElUS Interest Earmngs $ $260,866 $ $ $1/5183 $ , New Yor!!, Slate Slalt' and regionallllllss transit taxes. MMTOA I3noo 95,200 ~ntf , ,833 Total Dt:dicated T a,'ies Received 43J less DTF Deb! Service $ ,553 Net Dedicated li;;\es for OperaliollS l !W Payroll Mobility Tax illa Aid Trust Ta"es , Operating AssJStanre 18b lt 168, (1000 0,000 NYS School Fares , Addiuonal Mass T I'lI1I.Sp ()perallllg Assistance ,000 0,000 nla MOO Total NewYorir. State wa $50076 SU1160 $ $ $I,07:U161 SI ~ Outcltess COUllty X Operating Assislanee Ub $0.095 nla 'I S0.095 SO 190 Stalion Maintenance nil! $().I9O -...J nlli Nassau County nlil 0000 New YorK City Operating Assistance' I lib wa nla Station MlIlI1leltallce 0000 nla nla Operallng Assistance - I8b , , Urban Real Property & Mnnage Recording TIllI. nla nla 285, B Additional Assistance Nelli York City ilia nla Station Maintenance nla nla Orallg~ Counljl PuUIlUlI COutu')" Rockland County Sulfalk County WLOSlchcslcr County Operating Assistance - lsb nja )73 ll/a 0013 Station MlIirrten.ance nla )00 ilia 0,000 Operating Ass~1anee I Sb 0,000 wit wa StatlOIi Maillll:llanl;e nil! ("' ula {,)pcrullng Amslallte 18b ilia OlliS ilia Slallon Maintenance ilia u!a 0000 Operatmg Assistance - 18b Wit Wa StatIOn MlUllwnance Ilia ilia Operatillg Asslstan.:e Hlb nja O,()OO nla Total l.ocal Statiml Maintenana: ilia nia $3.~ $34063 $ $28H811 $300,514

175 from Dille To Date: MfA Sul/Sld}, Interagency ijlan luid Slllbdi1'3lit'l1 Fund Transaction, Cash Basis (millions) CurNlftI Month Stabilbati!ln Fllnd Ysr t9 Date Siabilimfign Fund (;ommuter Tran&it Commuter Tpft!i!t lgtllmtlfd~ tta,stabl Total ltdvwdfdl ~ 06ltllll3 06I01fl3 06!01f! OlfOlfB 06l3tl/ !3(Jfl3 06/30/13 06f3()J13 Tutal I30/t3 t.ita Bridgt! lind TUDUe/S. SumlAA InH!SfW Total Subsidy and Other Receipts 1\fr A SIlu«es tvr IIt!ern&mKY toanj a.t T Necessary RecoflSl{uction Reserve MIA Capita! Pmgram Non.Resolutimt Funds MRT -2 Corporate Account 20120PEB Loan Total Loons Total Rea:lpt5 and Loall.~ Rw:ived !OHO:! $ $ S266.!!Ol! $ SI, $0000 SO.OOO $0.000 $0000 SO.OOO OJlOO $0.000 $0.000 SO.OOO $ $ $ SI $ SS81.S19 $ Continued on Next i"dge I Contint.led un Next Page $ SO.OOO $2.(

176 From Dale: "fo Date..M'!' A Subsidy, hlterageru..1 LOlin and'slllbilrmtlon hmd Transactlons Cash Basis (millions) ~urr!:!lt!\iollia ::llabilizaliun fu!!!! Year til!!!te S!jbilizatioo FU!ld Commuler Transit Commgle!' Transit ic~if!i) (61)0113 ~ (61)0/13 Total l~mlfdl ~ OMlI!l) (110111) m 06130/13 06I31)f1) Toll' OllOl!lJ 06!36f13 Brought fo!'wlini from prior page Opening Balance Tola! Receipts and Lollll.$ Received Total Cash and ReceiptS Avaiiable $ ,050 $ $ t11132 S431t648 $ SI15I1B , )61 $8{)1.6t4 $1, JQ , UOO ACmey Openttlons MT A Lung Island Railroad MTA Metro-NOM Rail Road MTA New York City Trnnsit MTA NYCT for SIRTOA Capitall'rognun Contribution Forwatd ~ COOtrllcts Capital Security AlXount 33, }J1OO 0,000 0, (UlOO {}.(l & O,S , , (tooo S $ l ,027.$32 Rwyment o{lpgoi&em7y I_of< 8&1 Necessary Il.IXOOStruction Reserve MTA Capital Program - Non-Re:solution Funds MR.T-:! Corporate AccoWII. 201:2 OPED Loan Total Loans Payback SO.OOO $ , n.ooo ,000 $0.000 $ SS2JlOO SJlOO $ Total Disbursemctll5 $ $ $ $ $1, $2, STABlUz..\l'lON FUND BALANCE S14:2369 Sll8.3% $118,3% EBdlgg Le!!lIlJi1laoees B& T ~eeessary Reconstruction Reserve Ml'A Capilnl Program - Non-Resolution Funds MRT-2 Corporate AtcOont 2012 OPES Loan , , ,000 S4OO,OOO $ $211UlOO $ End or Monll! NYC,. Oprottig FWld btm.wipg fmm MIA IDVgt Pool!lilt iadude4 il! f:!lcj11ti tun Ilalllmq l!wve ilia $ $ nia $ $ ilixlltion E!!ud I1!!IW~ $ ,"lute: 2012 OPED Loan corr«letl/or TrlUUillCommatt!r spliliit Jal/uary l(jis

177 -~~-----~~~ ~--~-----~ , METROPOLITAN TRANSPORTATION AUTHORITY FAREBOX RECOVERY AND FAREBOX OPERATING RATIOS 1013 MID-YEAR FORECAST AND ACTUALS JUNE 2013 FAREBOX RECOVERY RAnOS New York City Transit Staten Island Railway Long lsland Rail Road Metro-North Railroad Bus Company MTAA en 2013 Mid-Year Forecast 37.90iQ 9.8% 31.0% 40.8% 30.6% 36.8% FARE BOX OPERATING RATIOS 2013 YTDActual 37.3% 12.5% 32.1% 46.0% 30,7% 37.0% New York City Transit Staten Island Railway Long Island Rail Road Metro-North Railroad Bus Company MTA A elte Avera e 2013 Mid-Year Forecast 58.6% 16.0% 46.8% 60.6% 36,4% 55.7% 2013 YTDActual 54.2% 18.1% % 37.9% 53.2% Farebox recovery ratio has a long-term focus. It includes costs that are not funded in the current year, except in an accounting Jedger sense, hut are, in effect, passed on to future years. Those costs include depreciation and interest on long-term debt. Approximately 20% (and sometimes more) ofmta costs are not recovered in the current year from farebox revenues, other operating revenues or subsidies. That is why MTA operating statements generally show deficits. In addition, the recovery ratio allocates centralized MTA services to the Agencies, such as Security, the costs of the Inspector General, Civil Rights, Audit, Risk Management, Legal and Shared Services. Farebox operating ratio focuses on Agency operating financial performance. It reflects the way MT A meets its statutory and bond-covenant budget-balancing requirements, and it excludes certain cost that are not subject to Agency conlrol, but are provided centrally by {\1T A. XI78

178 Metropolitan Transportation Authority Stl;l!{'\ of New York New York City Transit Long Island Rail Road Metro-North Railroad Bridges and Tunnels Bus Company Report on Revenue Pass. en; and Vehicl.s Ridership Data Thru.June, 2013 NOTE: Ridership data are preliminary and subject to revision as well as adjustments warranted by annual audit review. Prepared by: MTA Division of Management & Budget '-"v." Wednesday August 07, 2013

179 ,Metropolitan Transportation Authoritx June evenue Passengers Percent Chan e 2013 Perce MTA New York City Transit 197,684, ,122, % 196,036, % MTA New York City Subway 140, , % 141,053,315 ~0.65% MTA New York City Bus ,375 56, % 54,982, % NITA Staten Island Railway 404, , % 348, % NITA long Island Rail Road 7,178,901 7,235, % 6,994, % MTA Metro-North Railroad 1,327,291 7,269, % 7,095, % East of Hudson 1,164,509 7,121, % 6,959, % Harlem Une 2,320,897 2,318,256..Q.11% 2,244, % Hudson line 1,408,063 1,394, % 1,370, % New Haven Une 3,435,549 3,408, % 3,344, % West of Hudson 162, , % 136,071..a.57% Port Jervis Une , % 83, % >< T Pascack Valley Une 45,996 54, % 52, % ():) 0 MfA Bus Company 10,258,893 10,122, % 10,003, % MTA Bridges & Tunnels 25,289,003 25,233, % 24,721, % Total All Agencies , ,139, % ,759,.1.19". (Exclude$llri<Iges & Tunnels) Weekdays: Holidays: 0 0 Weekend Days: Oays VVednesday, August07,2013

180 Metro~olitan Trans~ortation Authority June Revenue Passen9!f$ Year to Date Percent Change 2013 Percent Change ". TI>' MfA New York City Transit 1,151,754,546 1,184,820, % 1,186, % MTA New York City Subway ,158, % 846,021, % MTA New York City Bus 334,870, % 340,601, % MfA Staten Island Railway 2, ,331, % 2.119, % MTA long Island Rail Road % ,649 ~1;35% MTA Metro-North Railroad 40,030, , % , % East of Hudson 39,100,486 40, % % Harlem Une 12,925,965 13,396, % 13,282, % Hudson Une 7,678, , % 7.840, % New Haven Une 18,400, , % 19, % West of Hudson , % 769, % Port Jervis line 644, % 416, % Pascack Valley Line 284, , % % >< T MTA Bus Company 59, ,811, % 62, % MTA Bridges &. Tunnels , ,061, % 138,907, /0 Total Ali Agencies , , Dk i, % (Exciudes Bridges & Tunl'l!ll$) Weekdays: Hoiidays: Weekend Days; Days Wednesday, August

181 Metro~oUtan Tra!"seortation Authori~ June 12 Month Averages Percent Change 2013 Percent Change MTA New York City Transit 191, , % 193, % MTA New York City Subway , ,809, % , % MT A New York City Bus 56, , % , % MT A Staten Island Railway 373, , % % MTA Long Island Rail Road 6,738,623 6,902, % 6,766, % MTA Metro--North Railroad 6, , % 6,868, % East of Hudson 6,651,644 6,831, % 6.740, % Harlem Une 2,192,501 2,236, % % Hudson line 1, % 1,316, % New Haven Une 3.146, % % west of Hudson 157, % 127, % x Port Jervis line 109,683 81, % % Pascack Valley line , % 47, %.. (Xl N MTA Bus Company 9,951,784 10,125, % 10,170, % MTA Bridges & Tunnels 23,983,224 23, % % Total AU Agencies 215, , % , % (Exdude!l Bridge$ & Tunnels) Weekdays: Holidays: Weekend Days: Days Wednesday,Augusl07,2013

182 MetroeoUtan Transeortation Authori!l. Average Weekday Passengers Percent Change 2013 Percent Change NITA New York City Transit 7.516, % 7,670, % MTA New York City Subway 5,355,314 5,475, % 5,528, % MTA New York City Bus Q.44% 2.141, % NiTA Staten island Railway 16,610 16, % % MTA Long island Rail Road , % 302, % NiTA MetrowNorth Railroad 293, % 298, % East of Hudson 286, % 291, \1/ 0 Harlem Line % 94, HudsonUne 56,110 56, % /0 New Haven Line , % 139, % West of Hudson 7,402 7, % 6, % Port Jervis Line , % 4, % >< Pascack Valley Line , % 2, % T <XI w MTA Bus Company 396, ,623..Q.23% % NiTA Bridges & Tunnels 855, , % % Total All AgenCies 8,510,516 8,635, % 8, t)11/O (Exdlldes Bridges & Tunnels) Weekdays: Holidays: Weekend Days: Days := Wednesday, August 07,2013 June

183 Metropolitan Transportation Authority ;g 1l June Metropolitan Transportation Authority Revenue Passengers -ti) c o. -i - == VVednesday, Augu$t 07, 2013 L!d ~11 II II

184 -----~ Metropolitan Transportation Authority 7 June ::::::; ; m Metropolitan Transportation Authority 12 Month Averages ~2~ ~ X 00 c.n -t/) c :IS ~----~--~----~--~----~--~----~ ~---,--~ VVednesday, Augusl07,

185 Metropolitan Transportation Authority ; :;; g: : Metropolitan Transportation Authority Average Weekday Passengers 4i June = q:~ ~ Co m -t» c :& '>~~// #/~/ '~//"'./ " df ~~ <f'~., ~ I m 20~O-20~~ II I VVednesday. August p

186 Metropolitan Transportation AuthorilX JUIUt Metropolitan Transportalkln Autltorlty Revenue Pa6~rs Service Month P81Ce!!!!S8 Chanse P~aChanp July 212,066, ,0/)1, % 215,272, % August % 218,936, % September 217, ,746, % , % October , ,305, % 21tP76, % November 217, , % % December 212,524, , % 215,239, % January , , % , % February 195, ,694, % , % Marelt 233, ,372, % , % April 215,451, % 232, % May 226, ,143, ",(, 236, % June , , % % 12 Month Ave 215, , % 217, % Year-to-Date 1,292,892,021 1, , % , % 12. MontI! AveraaBS Service Month Percentall! CM!!&! Percentage CM!!ae. ~, July , % 219, % August , , n.41 % % September 215, n.3l% 221,019, % X T October ,041.m -0.26% 220, % 00 November , n5-0.36% 21U18, % '"" December 215,697, ,061, % 211, % Janusry 215,495, ,884,449 0,64% % February 216,062, ,093, % 211,721, % Marcil 216, , % % April 215, , % % May 215,876, , % 218,011, % June 215, % 217, % Ave!!Je Week4av Paannli!l'S Service Month Percentage Chanse Perce!!!!e Chane July , % % August 1, ,658, % % September 8.527, % 8,800, % October 8,789, , % 8, % November 8,5a6, , % 8, % December 8,088,436 6,498, % 8,354, % January 1,748, , % % February & ,584, % 8,711.2n 1.48% Marth 8,673, , % 8, % April 8,402, , % 8,an % May 8,729,&11 8,848, %,8.946, % June 8,510.B $, % 8.684,596 O.SS%,~l/l.2!I1l

187 Metropo!!tan Transportation AiJlho!!y MTA New York CIty Transit Revenue Pas~i!" S!!!iCe Mom.ll PerctlrtaP CI!!f!g! Pen:enta!J! ClIa. Juty : 184,243, % 190,765,7&5 3.54% August 184,255, , ",4 193.,124, % September , ,244, % 192,555, % October 204,007, ,6IH -0.37% , % November 193,742, ,963,623 t.150/0 176,519, % December 188,844, , % 191,153, % JallWllY 118,314, % 193,074, % February 174,315, , % , % Mardi 206,218, , % 199,523, % April % 206, % May , , % 210,853, % June 1&1, ,122,4&7 0.22% 196,036, % i2 Month Ave 191,981, ,90'1,23& 1.52% 183,691, % Year-to-Date 1,151,154,546 1,1114,820,6& % 1,166,629,_ 0.15% 12MonthAv Service Month July , , August 191,902, ,178, % 196,74'.227 X September , % 196,S T October % 195, (XI (XI November 192, , % 194,037,142 December 181,760, % 193,541,074 January 191, , % 194,QB6,531 february , , % MafcI , % ,652 April 191, , % ,130 May ,864, % 193,865,615 June , ,l101, % 193,691.1&6 A~ Wae!u!ay Passengers Service Month Pereemase C!!!nge 191%-%013 Pe~CItang! July ,104,704 ()..17% 1,220, % August 6,837,402 6,758, % 1.040, % September % 1, % Odtlber 7.178,563 7,785, % 1,993, % November 1,582, DO'I'~ 7,535, % De<:ember 7.144,832 7,497.1l % 7.364, % Januil/y 6, , % 7.279, /0 FeOtuaIy 1,381, , % 1.720, % MaI1:h , U50/ , % April 7,440,152 7,618, % 7.8fl % May 7.128,432 7,839, % %.June 1,616,210 1,626, "'" 7,676, % _,._IfT.""'3

188 , Metropolitan T!'ii!!!$JK!!fat Autbo!!J MiA New York CIty S"bway Revenue PlIlIlieMenl ServIce Montll Pen:ental!! C~ 20' Percen1llse CbamJe July 131, , o.2G% % August , ,893,199.1,14% % september 134,732, , % 136,901, % October % 137, % November , S8, % 124,309,325-1UIO% December ,824 H9% 137,411, % Janua.y 127,631, , % 131, % Februaty 124,055, , % 127, % Marcil 146,487, ,401, % % April , , % % May 141, % , % JumJ 1411,586, , % 141,e % 12 Montll Ave 135.5CI5,m 138,809,{163 2M% , % Veer-lO-Date 816,884, ,158, % , % 12 Month Ave!!9!s ServICe MontII 2011) Pereen'lalie Ch!!! Percental!! Cha!!S! July 132,378, , % 139, % August , , '% 140,252, % September 132,965, ,613, % , %... >< October , % 139,&44, % (XI November 133, ,183, % % <0 December , % 131,881,B % Jenua.y 133, ,134, % 138,231, % february , ,OUS 2.43% 137,663,992 ()'03% M;Jrch , , % 131,441, % April , ,141, % 138,093, % May 135, ,692, % 138,282,001 "()"30%..Jvne 135,505, so9,{ % 138,204, % AV8!!9! Weekd!Y Passe2l!1'S s.mce MontII 2(11) Pereentalle Che!!l! P~C::"1I1!1e JulV 4.998,148 5,0&1,919 Ul8% 5,211, % August 4,826,51& 4, % % september 5, , % 5,527, % 0cI0tler 5,419,113 5,519, % 5,819, % Nowmber 5.JU1, , % 5,323, % Deo&mber 5,131,850 5.m, % 5,274, % January 4, ,113, % 5,160, % fellrualy 5, ,391, % 5,466, % M;Jrch 5.423, ,83tI 1.99% 5,415, % April 5,295,535 5,427, % 5,589, % May 5,450~ , % 5.664, % June 5,356,314 6,415, % tl,5a, % June _._... ~3

189 M!tn!Pplltan Tranmrtatlon Aut!Iority June MTA New York City BUll Revenue Panenil!l'$ ServIce Month Percental! CIIa!!ll! Pen:entae Chane.My 56,276,086 52,980, % , % August 54, AO% , % September 58,641/ , ,56% , % 0cI0ber 61,972, , % % November ,105 56, % , % OecembE)r 52, ,946 4,24% % JanuaIY SG.736, , % % February ,335 54, S.28% % March 61,731,605 61, % 51, a,S3% Aplll 55,602, ,990 U9% 59,873, % May ,914 60, % 60, % June ,375 56,13& % 54,982, % 12 Month.Ave 56,416,671 56,G $&% 55,.4t1, "1. Year-to--Oate 334,870, , % 340,l1li1.981.o.iO% 12 Month Avera Service Mon1b Clla July 59,173,2IID % August ,333 55,617, % ,20% September "A. 56, % ~ 0cI0ber 58,621,619 55, s.4!!"'" , % co 0 November % 55, % December 58, ,442, % , % January ,238 55,691, % 55, % FebMIIy % 55,685,130.0.&3% Mareh ,352 55,998, % 55,346, ".4 April ,053, % 55,647,_..0.73% May 56,726,694 58,172, % 55,583, % June 56, ,091, % 55,481,511) 1.08% 1'$ at p ella p.my 2, ,006, % 2,000, % August 2.010,686 1,894, % $.40% September 2,278,952 2, % 2,249,m 2.23% 0cI0ber 2.35& , % 2,:U3, % November 2,275,616 2, % 2,211, % December 2.oo7.t , % 2,009, % Jani.IaIy 1.951, , % 2.118, % februaty 2.121,466 2,213, % % Man:h 2, ,401 U6% % April 2.144,618 2, % 2, % May , % 2, % JIllMt 2,160 2,151, % 2.141, % ~_or,:1i1l3

190 Met!'upOlitan Transe.of1aflon AuIiIOrity June MTA Bus CanIplIny Revenue PaSMn9!1'S Servlee Month 20' Pen:e!J!!ae Change Percentage Cha2ii! JuIV 9,709,091 9,455, % Q,614, % AUgust 9.598,938 9,211, % 10, % Seplembef 10,2'3,437 10, % 10,068, % October 10,112,444 10, O.f:l3% 10,081, % November ,423 10,264, % 9, % December 9,445,331 10,044, % 9,893, % JanualY 8.996,811 9,612, % 10,301, % February 8,882,694 9, % 9,849, % March 10,881,185 11,049, % , % ApIiI 9, , % ,951 9,88% MaV ,556 10,951, % 11, % June 10,256,893 10,122, % 10,0&3,'1' % 12 MontbAve 9,961,784 10,125, % 10,170, % Year..fo.Date 59,483,740 81,611, % 62,713, % 12 Month Avene Service Month pen:entas! Cha!!ll! Pen:anlall! Change Juty 10,030,373 9,930,818-0,\19% to.143, % August ,799 9,898, % , % X September 10,080,099 9, % 10,196, % ;- OCtober lo,043,!h5 9,592, % 10,147, % (p... November 10,058,139 9,898, % 10,085, 'Y. December 10,018,906 9,948, % 10,073, % Januarv 9, % % februaly ,959 10,077, % l82 0.<40% March 10,009,451 10,091, % 10,012, % Aprtl 9.949, ,419 Hi5% ,949 OA1% May ,138, % 10,179,955 OA3% June 9,951,784 10,125, % 10, o.~ Ave!!&! WeekdaX PlIIHIIIJ'l'$ Service Month 2Oto Pen:en!5! 9ft! P~C/ulltge Juty % 370, % August % % September 405, ) 0.48% 416, % 0cIDber ,t % % November 409, , % 409, % Oecernber 388, % % January , % 397, % Februaty 388, % US% M8IdI 410, % 408, % April 381, % 427, % May 420, ,369 -OA7% 432, % June 386,548 m,m -0.23% 398, % ""'-._01,'1<1"

191 ~ItimTnm~A~ June MTA Staten hlhind Railway Revenue PII$$G!!a!1'$ Sentice Monti! Ptn:entaae Change 201%2013 Ppntage Challl'ie' July 328, , % 328, % AugIl$l 32.5, , % % September 379, , % ,23% October l 425, % 401,61" -5.69% NOVember 383, , % 328,542 -Ht02% December 359, % % January 356, , % 366, % F>:lbn.lery % 315, % March 427, , % % April M % 385,21)7 0.09% May 406, , ".4 381, /. June -404, % 348, % 12 MontbAve , % 352,768 4U1% Year-to-Da1e 2,294,730 2,331, % 2, $.09% 12 MooCh Ave~ SIwIice Monti! Peree_ CtIa!!S! Pereentage Cha!!B! July 353,BOO 373, % % August ,813 ".75% 386, % September % % X T October % 382, % (0 November , % 376, % tv 0ecembeI' 3M ,954 U8% % JanualY % 388, % february , % 31> % Marcb , % 358, % April JlO% 358, % May 37t, , % 356, % June 373, , % 352, % AV&!!I! Wee!!!!!l Passengers SIwIlce Month ~11.201! pen:entage CI!afflI! P!m:4ntage Cb!!![l! July 13,501 13, % 14,002: 1.31% Augt.l$l. 13,002: 13, % 13,1tO 3.15% September 16,136 17,244 6,87% 17, % Oetob<er 17, % % November 16,414 17, % % December 15,030 16, % % January 15, It75% 15,21)3 -B.17% Feblual}' ), % 1/1,075 -D.01% March 17, % 14, :W~ Aplll 15, BOO 1.53% ' % May 17,1Z % 15, % J_ 16,610 16, % 15, % ~.~0I'.20"

192 Metmpo!!laD Traupo!!!!on AuU!orllY JIIft& MTA LOII9Ia1and Rail Road Revenue Pasliltnget$ SeMl:e Month *2012 Pen:enIage Change ~Clta!i!B! July 1,238,118 1,042, % 1,m, % August.1,108,665 8,837,184.s,~..t. 7,482, % September 8,834, , % 6.119,248 2,45% October 6.8C4, , % 8,821, % Hovembef 6,563,349 6,815, % 5,61)7, % DecemIler 6,985,089 7,167.13'1 2.62Y. 6,859, % JanualY 5,890,855 6,431, %.6,628, % FebruaIY 5,838, , % 6,1)20, % Mard\ 7,O:n,512 7,102, 'Y. 6,1197, % AprIl 6,651,960 6, O'f % May 6,139,212 1, % % June 7,178,9111 7,235, % 6,994,m -3.33% 12 Month Ave 6,738,823 6,902,2&2 2.43% 6,766, % Year-to-Oate 39, % 41,615, $% 12 MonIh Averae Service MonU! Percenlal!! CIta!2! Pen;e~ Clta!2! July 6, , % 8,922, %.. August 6,619,431 6,699,646 -H6% % X September 6,811,276 6, % 6, % October 6.795,180 6,712, % 6, % <0 November 6,797,737 6,733, % 6.838, % c..> Oeeember 8,196, , % 6, % JanII3IY 6.766, ,651 0."'% 6.829, % February 6,768, ,(13% 6.799, % Mard\ 8,770,663 8, % 6.782, % April 6,747,406 6,861, % ~ % May ,897, % 6, % June 6,738,W 6, % 8,766,327 1.'1% Averal!! WeekdaX Pauelll!!l'S Servlu Month t1:12 percentage Change Peree-Crnwe July 298, , % % August 280, , % % September , % 304, % October 265, , % 2611, % November , % 243, % Oecember '219.~ 296, % % January 269, % 279, % Fe/.lruaIy 270, , % % Mard\ 273, U6% % AprIl 278, , % % May 260, , % % JUlIe 267,735 3tlO,26t 4.35% 302, " ,...'7.201l

193 Metropolltall T!'!l!$J)Ortation Auttlori!y June MfA MetJ'o.NortIl Railroad Revenue Pas!!!lgenJ Service Month Pen:ea C!!!!e '3 Perl3lfltage CharIge Jutv 6, Q.28% 1,214, % August $,912,973 6,704.1(14.3.Gt% 7.349, % September 6.852,629 6,960, % 6,754, % October 7.027,596 7,042, % 6.nS, % November 6,810, , "- 6, '.57% December 7, % % January 6.058, , % 6.6n, % Februaly ,395, % 5, % March 7.067, , % 6, % Aplil 6,804,593 6,972, % 7, % May 6,946, , % 7,196, % June 7,3%1,291 7,269, % 7,095, % 12 Month Ave 6,lI09,625 &,964, % 6, % Year-to-Date 40,030,074 41,563,651 U3% 41,034, %.. X October (0 ~ 12 Montil AVer8B!! service Montil Percen!!Jil! Chane Pen:entage CI1!!!1l! July 6, , % 6,981, % August 5,695,600 6,793, % 7,034, % September 8.110,114 6,802, % 7,017,& % 6, % 6,995, % NovemtJer 6, ,655 U16% 6,940, % December 6,757,974 6,636, % 6, % JaIlWllY 6,758,035 6, % % Februaty 6,769,359 6,924, % 6, % Mao:h 6,180,117 6,&30, % 6,875, % April 6.m.395 6,944, % 6,866, % May 6,795,526 6,969, % 6,883, % June 6,lI ,964, % 8,868, % Av!! e wee~ Passe!!il!l'lI SeMce Month Percentage CharIge t3 ~Che!!l! Jutv 283, , "- 290, % August 273, , % % September 283, , % 291, % 0cI0ber 287, , % D5'14 November 290, , '" 264, % Decembef 280, , % 287, % JallWllY , % 272, % Februaly , % % March 273, , % 282, % Apri/ 260, , % 285, % May 283, % 284, % June 2&3, , % 298,318 Cl.59% --,..."...01,..."

194 ~n TI'llIlII-RmW!2n Autl'!o!;!!l JUne eat of Hudson Revenllt Paise 1'$ ServICe Month 201Q July 6.832,493 6, D.S2% 7,062,919 a August 6,147,243 6, % 7,192, % September ,880, % &,618,194-3,53"A. October &.887,30$ 6,945, % 6,639, % November 6,854, % 6,211,788 U3% December 6,924,468 1,201, % 8,901, % JaIlUalY 5,916,956 8, ,30% 8,559, %' February 5,685,834 6,265, % % March 6, , % 6.827, % April 6.648, , % 6.973, % May' 6.788,759 7, % 7, ,47% June 7,184,509 1,121,125 ().61% 6,959, % 12 Month Ave 6,651,844 &,831, % 6,74& % Year-to-Date 39,100, % 4O,2G4, % 12 Month Averages Service Month 2011) Percental! Cha!! Perwlta9! Chanv! July 6,509, , % 8.848,940 2,94% August 6.539,204 6,637, % 6, % X September 6, ,651, % 6, % I October 6,5110,893 6,657, % 6.858, % Cl) Ol N_bef 6,531,344 6, % 6,& % ~ 6, ,007, % 8, '. JanuaIY % 6,791, % February 6,611, % % MaICh % % April 6,619,_ 6, % 6,157, % May 6,637, % 6.754, % June &, ,831, % 6,148, % P C , % 266,0' % % 279, , % 282, , ,337.1:/,9O% % 256, & 267,: % 2fif.367 2$ , % 288, IlO % , $7.0.12% 275, , % 286, , ,59& 1).11% _._~I.M3

195 Metropolitan Transf!9!1!t!on Jllna HarlemUne Revenue Passe rs Service: Month ella 13 a e July 2,226,434 2, % August 2, ,111.45& -3.12% % September 2,206,183 2,253.ne 2.16% 2,162, % October 2,275,602 2,283, % 2,180, % NQvember 2,198,951 2, % 2,068, % December 2,297,316 2,343, % 2,254, % January 1.975, , % 2,182, % February , % 1,979, % Mare/l too 2, % 2,262, % April 2,188,956 2, % 2, % May 2, ,316, % 2.326, % June 2.320,891 2,3t8, % 2,244, % 12I1i1ontbAve 2,192,501 2,236, % 2, % Year-tn-Oate 12,925,965 13,396, % 13,282,613.o.a6% 12 Month Avet!.ll!! Service Month Pe~CIllmS! ') Percental! 9'I!ruIe July 2,164,473 2,190, % 2,242, % August 2,111,102 2,184, % 2.ZSi,2SS 3.42% September 2, ,188, % 2, % >< 0Ct0bef 2.115,102 2,18i, % 2,243, % <0 O'J Novemllef 2,182,304 2,193, % 2.226, % December 2.185,926 2,197.1> % 2,220, % JanlllllY 2, ,209, % 2, % FebnIaIy ,223, % 2, % Man:ll 2.16&.099 2,224, % 2,212, % April 2.185,607 am.53o 1.95% 2, % May 2,t90.na 2.236, % 2.217, % June 2,192,501 2,236, % 2, % Ave!!lle Week!!!! P&S58fI1!!! Service Month Percentas! Chenge Percentage Cha!!S! July 90,784 91, &% 92, % August 86,582 84,033 ~94% 88, % September , % 93, % October ,197 4),05% 83, % NQlfember 93, % 81,ln -8.72% 0ec:emIler 91,183 94, % 92, % Januaty 86,186 89, % 89, % Februaly _17% 89, % Man:II 89,286 91, % 92, % April 90, % 92, % May 90, % 92, % JUM 13,231 M,951l 1.85% 94,ua -0.01% _... ar.2oi.

196 Mt;!ropo!ltan Tnmsporta!kln Autbori!y JUI'Ie HuwonUne Re'IGIlUe Pmlse!!lers SWwice Month 2011) Perce~ Chll!!lll Perce!!!5e C!!!l!!9! July 1,360, : % 1, % August 1,360,653 ',291, % 1.433,031 10A1% September 1, % % Odober 1, , % % November 1, , % 1, % December 1,350, % /.. January , % & % FebrUary , % 1, % March 1.340, % 1,316,51: /. i\f)fii 1.31: &% 1.355, % May 1.349, % % JuM 1,_,0&3 1,394, % 1,310, G% 12 Month Ave 1,312,224 1,331, % 1,316, % Vear-to-Oa1e 7,678, , % 1.840,735-0,17% 12 Month Aversaes Service Month 2011) ' Percen!!i! CI!5! ~Cil.ange July 1.287, , % 1.335, % Augusl 1, % 1, % X September , % % I 0d0tJer 1, ,308, % 1, % CD --J November 1, % 1.325, % Oec:ember , % 1,32t, % January 1,305,064 1,319, )1% 1, % February ,326, % 1,318, % MaIdl , , % % April , % 1,318, % May 1, ,333, % '1,317, %.June 1,312,224 1,.331.t % 1,318, % AvmeW"~ Pase!5ers semt:e Montll Percemaae 9!!'!se Perceniafle CIIa!2 JUly 64,811 55, % 55,874 03$% August % 54,4{)3 6,34% september 54,m 55, % 55, % Odotler , % 49, % HOI/ember 55,268 66, % % December , % 54, % Jal1Ui!llY 80,319 51, % 51, % February 80,296 51, % 51, % Maroll , % 53, % ApItI 53,787 54, % 54, % May 54,625 54, % 54, % June 56,110 56, % 51, % _._tfl.20\!

197 ~ntr.m$p2ril1t1on Author!ly New Haven Line, JOn,; X Revenue PlI5Se!:!lil!l'S ServIce Month Perce, C!!!mg! P~Cha!!ae July 3,245,106 3,297,444 1.Il1% 3,387, % August 3.207,028 3,142, "k 3, ,71% September 3,156,370 3,248,000 2,91% 3,155, % October 3,m,572 3,302, % 3,155, &'A. November 3,151,295 3,271, % 2, % December 3,216,593 3, IUS% % Januruy 2.782,420 3,052,360 9,10% 3,125,73& 2.40% February 2, , % 2, U4% March , % 3.248, % April 3.146,292 3,261,731 3,67% % May 3.215,619 3, % 3.337, % June 3,435, , % 3,344, % 12 MoJ!lh Ave 3, , % 3,213, % Year40-0aIe 18,496,DS9 19,416, % 19,141, % 12 Month AV(l11I1ii!! Sorvle:. MoJ!lh ~Ch!!ll! Percen!!.l! ChaMe July 3,058,064 3, % 3, % August 3,014,136 3,145, % 3.296, % September 3,084,279 3, % 3, % T OctOber 3,089, ,49$ 2.21% 3,216,356 3,10% <0 November 3.103,039 3,169, % 3,249, % 00 December 3.110, ,678 2,46% 3.236, % Janumy 3,111,684 3,209, % 3, % Febluary 3, , % 3.223,292 -U.4O% Mardi ,76% 3,216, % AprIl 3,125,362 3,252, % 3, % May 3.138,467 3, % 3, <12% June 3,14,1118 3,2&3, % 3,213, "" Avaraae WetIk!!:!X PaGsene Sol'Ylc::eManth Pe~Cbans Pen:entalle Ch!!!i! JUly 130, , % 135, % August 125, $% % September 129, , c2% % October , % 120,190-10,02% Novembet 133, Q6.% % December , % 134, % JanIJaIy 120, % 128,825 -U.13% februaly 120, , % 124, % MafdI 125, , % & 0.19% April (lt4 3.35% % May , % ,62% June US.IIM 138,' % 139._ 1.09% _....,..tj1.»tl

198 Metrl:!pO!aItT~A~ June west of Hudson. Revenue Pa!IN!!II.!1S Servk:e Month 21) Pen:entaa! Cha!!i! Percentage ChanAe July 159, % % August 165, % 156, % September 156,98S (19% 136, '% October 160,291 97, (\9% % November , % 71,414 2IM3% December % % JanualY , % 117, % Februaty , % % Mardl 171, , % % April , % 132,683-5,26% May , tl% 137, 'l!'1o June , % 13&,071-8,$7% 12 Month Ave ,1' % 127, % Year-to-Oa1e 929_ /1.68% 769,590 -U4% 12 Month AVera!!!! ServIce Month 21)' Pen:4n!!ll! Change Percentage Crume July , % % August 156, , % ,49% X September % 135, % l October 156, , % 138, % <D November 156, Jl2% 138, 'l!'1o <D December 157, % 134, % Janumy 157, % 133, % Febluaty 157, ,688.12,57% 131, % Mareb , % % April 157, % % May 158, ,Il8S 15.38% % Jllne 157, , '% & -3.74% Average W1Hlkd!% P-e Service MoDtII P~CIJange 2011-%013 PflI'CeI'ItlIge Change JulV 7,822 7, % % August , % $ % September % 7, % Octobef , &% % November 7,823 4, % % December 7,505 6, % 5, % JI)I'I\I&IY 7,438 6, 'l!'1o JiO% februaly 7,247 6, % J!5% Match /1.03% % April 1, % 6, % May _ % % June % 6, % _._

199 - I 1VIetI'oe?!ltan Trall8por!l1t!on AuthOJ$'t June Port Jervis LIna Revenue Pa&!!!!.Iera Service IIIonth Pe~Chanll! Pen:entae Cb!29! July 111, ,m -1),79% % August 116, , % loo,8m -3.62% September % % October 116,500 46, % 87, % November 107, % % December 114,571 85, % U2% JaIlllalY 98,984 80, % 73, % February 94,908 81, % 69, % March 111, ,80% % April , % 82, % May 111,096 93, % BS, % June 116,78& 94, % 83, i1% 12 Month Ave 101,683 81, % % Year-to.oa!e 644, ,5Oi % 47&,664-10,65% 12 Month Averages service IIIonth Per&entage Che!.'!lle pen::en!!si! Chanse July 110, OA1% 80, % August 110, ,603 1.<I1Wo 80, % X Seplember 10& , % 82, %... October 109,463 98, % 86, % November 109,621 93, % % 0 December 109,583 00, ~ 84,96(1..39% JaIIIIaIY 109,435 89, % 84, % Fellfuary 109,659 88, % % Mardi t.2O% 62, % April 109,134 &4, "1. 61, % May ,350 43,94% 81, % June 109,683 81, % 80, S% Average Weekda)! Passe!!S!1'$ Service IIIonth Percentage Chane ~C!!ge July 5,320 5, % 4,63( % August 5, ' ll % September 5,261 2,409 -:;'Ui% % October % 4, &3% November 5.37& 2, % 2, % December % % January 5,098 4, % 3,511-12:.90% febtuary t8,01% 3,848-1U8% Mardi 5,100 4, % 3, "4 Aplil 5, % 3, ()% May 5,293 4, % % June 5,311 4,483 -iis.4il% 4, % -'."""""m.loijl

200 Metropolitan TraRSf2rtation A~ Jurnl Pa&eael( Valley Une Revenue PU!!l!!!D!1"$ Servilla MonIb Percentae Cbane Peremtase Cbansa July % % August , % % September 48,558 49,428 1.'19% % October "10 51, % November SO % % DecemIIet SO,283 62, % 40, % January % 43, % Februaly 43, % % MaICh , % 51, % April , % 50, % May , % 62, % June 45,996 54, % % 12 Month Ava 48,298 51,231 a.oll% 47, % Yeer-to-Oata 284.1U 315, % 292,9...'1'.12% Parcenta ella P8fCtmta Cban July 45,789 48;* % % August ,153.Ul% 52, % 5epUlmber , % 52, % October 46,694 48, % 52, %?... November , % SO, % 0 December ,1\ % 49, %... JanuatY 47,736 49, % $, % FeblUal)' 48,030 49, % $, % Mareb 48, % 47, % April 48,295 SO, % 47, % May SO, % % June 48,298 51, % % Averae Week!!!! Passen9!!! Senrlce Month ~C!!ffll! July , % P~Cba!!S! UO% August , % 2, % September 2.3'3 2, % % October 2,369 2, % 2, % November 2, % 1, % December ; % 2, % Joouwy 2, tl% 2, % FeblUal)' 2,266 2;453 B.25% % Man::I ;518 9,84% 2, % April 2, ft25% 2, % May 2, % &% June 2,091 2,S8T 23.72% 2, % ~.~OJ.3)1"

201 Metmpolltan l'nmspol't.liltlon AuUIorlty June MfA 8r1dlJ" & Turmeftl Revenue PasSltl'l Service Month Pen;en C 13 Percenta C II July 25,981,71$ 2$, % % August 26,202,259 24, "7.44% 25, % September 24.6H,70l 23.97& &1% , % OCtober 25, SS.DaO -5.24% 22, % Novembef 24,1l , % 20,945, % December 22,969, % 23, % Januruy % 22,290, % Februaly 20,17&,144 21, % 19, % Marolt ,927,845 (1,00% , % April ,365 23,&51, % 23,649,096.a.01% May 25, % % June 25,289, , % soe 2.03% i.a Month Ave 23,983,224 23,835,592.Q.62% , % Yesr40-0ate 138,540, ,061" % , % 1% Monlh Aver!9es Service MoIltl1 2011) hrc:en~ Change Pen:~Cba!!i! July ,422 23, % 23,785,328.a.56% August , , % 23, % X September 24,282, % ,599 0$1%... Ot:tober 24, %.90% 23,784, % 0 November 24, , "3.23'% 23,576, % N 0ecembeI' 24,309,519 23,625, % 23, % Januruy 24, , % 23,593,148 ~.81% Februaly , % % Mareh , % , % April 24,106,894 23,836, % 23, % May ,Il4ll, % 23, % June 23,lNJ3,224 23,835, % 23,311, % Perc:enm e 867, , % 860, s , % 839, , % 837, , &% , % 764,102 1&3,&43 802, % 682, % ,649 1& % 788, , % 812, ,Il4ll 802, % 833, , , % 855, ,9GO % _._111.2!11'

202 0p0mati1'l91twe1w. 1IIEiROP000AN TRAHSPORTATIOt4AUTHORlTY July f:tnam:1ai Plan fiild..year F~.Acr:ruI Stltsmttllt of ~ by Category ($ in millions) NON.ftl9MauRSASU: I, JaB Feb Mill APr M!l J... JuI A!!lI!!!2 Oct No.' Dec r_ F_~ $407.9 $383.6 $4593. $'I6ill $417,2 $46411 $473.9 $4633 $4624 $4115, 1 $457.5 $451.1 $5,458.0 ToIIRe_ t t,il1u OIlIer ()peniling R_ liii.s s;u; 171' I9PJ!!!I and Ql!1!!: ReIm~_. TotaIRav_ $ $535,4 $6&1.2 $GII8.& $SOU $651 SM.. $8SIlO SII4IU $81U SI3t.&..1 $7,asu\ os-tin!j EspenaQ ~ P$YfoII $370.4 $332.0 PK.9 $3580 $348.7 $366.9 $4,277.4 Ovenime HMIh and Welfare M B OPEIlC_f'1i\YIlI$OI 35,!I O.S ihj.7 Penstllns 5(}, SO l ,311.0 ou... frillqellenelitl> 53.& ' ~ Total... Non::.aI!qt; EIeclricP_ $45.5 $46.0 $39.9 $42.9 $31.4 $42.3 $42.7 $45.4 $43.6 $41.6 $40.9 $46.1 SSt4.7 Fuel fntiuran(:e 0.8 (t8 3,1 H) & 2l U; CIIIin , ~... Paratramril Setw:e ConII_ 30,2 27, & 34, & a ~ and OIlIer {)petatinij ConWcIs & & W ~SeMce ConInIr:Is li , ::1.1 21\ $ Z lou ~&Supp , \ iI 45.& 54.: I~~ ~ <1e loa $214.1 $224.8 ~7.8 $244.6 $ $254.3 un. $ $265.2 mu $):23.1 IlOU itowollmjr~~ SU $2.0 W $1.9 $2..1 $2.8 $):" $:1.1 $U SoLS $U $ ,..!} 1=~W\mtNon- $834.1 $1.. 3 $7$5.4 $ $82J.O $8&5.1 $1, $88$.7 $858.1 $IG4.4 $1, $to,.m.4.~ OPEl! ObligatIon 31.' STU ' a9 2$.3 2a ~~ ( (I INet~~~.!1.!!!:' mi' i1,3s0.6 $1.!!2U $ d!9:. l!,17u!1,m.1i 5,,456,2 $1,0IIII.2!!,1IK8!f.!,!!, mtl!$kti.11 1S4U3! ($&100.:.1) 1$.15$.1}j IS;t3Uj itu:l;.3) i$i,l~j!:1 (~111.1'J,1!~UI [$41Ul tiwst.lj f$l,llooai) 1S1,2tIlA s.boidim $510.6 $11~.9 $525.4 $1,793.6 $306.6 $387,4 $<131.6 S287.8 $399.8 $3Oo!.S $33Q.8 $486,'" $5JI94.9 0ebtSetw:e \70,l) m.l ~ Nota: lhis/1lpm capiuiq$ &eniiile in... tepo/teo ~ in., Mld-YII!II' F(lAIQISI

203 METROPOLiTAN 1RI\HSPORTATlONAUTHORl1Y July Financial Plan 2013 Mid-Year Forecast Mtnlllf Stallmlent gf Operatkma by CIIflIgory ($ in miuions) IWMBlJRSABU! I, I Jan Fa II. &'! ~./Un Jut A!!J!!e 0cI!!!!! DrIc TobII R_ farebo.. R<weooe $0.0 $0-') $0.0 $0,0 $0.0 $0.0 $110 $0.0 $0.0 $(1-0 $0.0 $0.0 $0.0 ToIIRe_ Olher 0pera\Wlg Revenue I~~R==._!! H2.4 fao,o!~.a H ,3 $811.' $ $tim $ ;76 $ $117.3 $148.4 $123.' &123.1 lulu',111.:1 '~O 'itu $1 a.o I ~ J.ilIl!G PaymIJ $ $3&.9 $40.2 $ <Mrime $ $ I4HI $ ,2 $ H.9 13, KeaIth 8.4 and IM!IIare ,4 4.0 au lI OPES CumInt PaymenI , SA fid.o P-ms :H M Olher 27.6 fringe BeneIlt& & t5~ ;l I~~ $7U 46 2S~ 2:43 ~1.a $7U $I!!.II $fou tlou $127.3 $102.9 $101;4 $106.2 $88.1 $1K1I $ ~ ElecInI: PoM!t $0.0 $00 $llo $0.0 $0.0 $0.0 Fuel $0.0 $0.0 $00 $0.0 (UI $ SO.O $ IW 0.0 tlo OJ) (H) ~ >< OA 0.3 ( C/Mns ParlIInIosiI SenrIca ConIl1 :ls 0 M_ and 0Ih«()pe(ating ConvacIs ~ISeMce ConInIds S 50.3 "" Ji 4.8 Materials 4.8 & SupplIes : ll '27 119,3!07! (l.& 0.9 &.5 0.$ 0.2 II~ !==:o,~.. $13.t $11.4 stu DU 121.0,'1.1 $2U $21.0 $21.7 $ttli p.8' OIlIer Emert_ AItlt!!!Im!pl!; Other I!l.Q $811., $t12a $130.0 $1a4.' 1t7.3 $ $ $1& $121.6 ~ Ill $O.!! ITotaIOIher Expense ~ j!.o ~H!!QO ~o ~o $0.0 ~ $0.0 ~ $0.0 i~ i! sao $0.0 $0.0 sao!!:!!i ToIIII before ~ _.8 ~ t--'li~(fil<cludlng8&t ~Oftl _ $8U... $itu $130.0 $1a4.8 $111.3 $148.4 tl23.. $123.1 $ $HU $127.6 sail tao {$O.OI $0.0 ($O.OJ $0.0 ($0.0) $0.0 $0.0 tao $11.11 $0.0 Hole: Thua"'l'Olt cap!u'8$ &IIf1rics iri e$im8l1b 1I1III..-e18p<l<tlld ~~ in the 2013 t.w.y8iif F...

204 METROPOUTAN TRANSPORTATIONAllTHORlTY July Al1IIncIIII Plen MId-Year Forecast At:cnIaI Statement Qf 0perati0I1II by categoiy ($ In mllllons) \~lrel"8i.irsaj:llli; I! Jan Fell... ~ IIi Jun JuI!w!!I!: Oct Nov Dec Total R_ FOII'I!IboItR_ $401.9 $383,6 $459.3 $466.1 $413.9 $ $465.1 S4S1'5 $ Toll Rewenue lou < ,2 137,' ,6 1,61U! 0\hIIr 0pera1ing 1'1"""""" ' U 45.S ' ~!!!l!!~~ 00.8!I 9 H2,4 13Cl0 1' , , ItotaIReveRlI! $683.4 $425.3 S1IU mru $ $ it $811.1 $9 ~ Wll9.n PaytoII S4IlS.4 $365,\ $384.2 $400.2 $380.0 $414.6 $403,1 $393,7 $419.4 $414.7 $ $4, YeIlime 60, /), , ,6 4S.I) 652,7 HeaIIh and WeIate ,S 84,0 8U 84, Q.1 OP 8 Cum!nI Paymetd , SO.4 40,' ,3 40,3 <4Il2 <14, Peooions 52.$ 52,1) 60, & ,3<10.4 0\hIIr Fringe IIeneIiI1I $9, , ,3 SS2 62,2 729,6!IH! 10,11 ~09.1 (1),21 ~l 10,21 I~... 1 $ ~ ~.i~ ~ A t~ ~~l ~l ~) $1S7O,' $1-.1t $71)8,0 $1%1' ii--, Non;.iIIro!: ElecItic Porn< $45.5 $45.0 $40.0 $ $42.4 $4i.? $45.4 $43.8 $41.6 $40.9 $45,2 $514.9 Fuel 21.9 lui 23.,3 2<\, , UI ,2 $,S 261$.1' IrISWrIce 1,2 U 3, ,4 U Claiml , , , >< ~SeMce~ 30, ,4 33, ~_0\hIIr 0pera1ing ~ ,3 43,3 48,6 ' SO,, 52, ft ~ 0 ~SeM::e~ , a& U (;n ~&Slq>!ies U '" OCher Busin!>!! E~ 10,2 14,6 11,3 13, , ;11.3 ~ ,1!TotaI ~!?l*i!!i! sm.. $238.1 mi.1 $26&1 $2$1.0 $210.3 $21U $27U... $%1'7,8 $.. 8 $348.3 ~41 otl!trl!lrpepm~ 8&T ClIpitaI TI1II1iIfer 52.6 $2.0 $22 $ $2.6 $3.6 $3.1 $4.2 $4.& $4.6 $11... $48.6 GAS8~ 3,1 3,1 ~SubsIdy I\geIlqI 0\hIIr OCher 2.& I~~~ ~ $2.1 SU 52.1 ",7 $2.G $a.1i $3..1 $U ~I ~8!l44A $ I~:-Po.t $t1.u $81U 19OIL2 $844.. $549.5 $!I12A $1,700.0 mu $9N.lI _7.4 _.7 $1,21U $12,423A I DepreciaIion , lil:h taui \ tlII9 2,281.3 OJ>E80b1iga1i0n ,2 3O,a , ,7 1,Mt.!} E!Wi1Inmenlid Remlildialioo 0,2 0.2 o.a U 6,0 :14..5 $f,!!!7ji!l.mu!l,t"!!l,112.9 $1.$5U $ ~1111t3.t 1 m 3 $1~U!1~3.0!1.!Wl S1!.41U I ffi!f0f!en!!!!tlt ~ 1]1 ' j$411.1j \~,1') ISli!Il!.lI) {mti.&) {$231!.7} ($7/1l.3i ($M'M.$j t$41».oi 1$1lJn\,f.)) (S4fUI 1$451.11,$t,-'I ) ($7,21!t,4 SuI>sIdie$ $Slo,8 $11 9 $525.'1 $1,193.6 $308.6 $3IJ7,4 $431,6 $2!l1.8 $399.6 $lou $330,6 $4fl1l.7 $5,894.9 DeblSeM::e ,0 2IlO tsu $2,2229 Note; Thi&lIIpQIt~aeMc!oin_UW_rapcrted~in1he2013M"'Y_~

205 Metropolitan Transportation Authority July Ftnancllll Pin 2013 IN-Year Fonte"t Ovortlme Decomposition 12-Month Aliocatlon,$ In mtlhom) NON..ftEiMBURSABLE OVERTIME Jan Feb Mar MIdYear F'ontcast Am' May June Julv AUII San Ocl Nov Dec Total -' Scheduled StJtvk;e $ 16.3 ' $190.0 ljp$ctiedultd SeIYIc & SStUi Maintenance $139.2 Unsc!y,lduIed Maintenance VaeanqvlAlMntee Coverage C.l $2.& sn.s V\(eatlW! EI!le(gem;ie!; U $46.4 satetylsecwj!yllaw E!!foJr.runer!t (1.3) (l $10.0 Qttmr Sub-Total TOTAl.. HR & R OVERTIME 1.6 "U $7.2 $$ $5... $49.5 $8.3 $ _.a $41.5 $049.4 $44.9 $45.5 $14.9 $13.3 $8.5 $8.4 $ $ t.3 (2.0) (1.9) l.9 $3.5 $44.1 UUS $42.7 $39.9 $o4:u $556.1 $8.3 $8.2 $3.1 $2.7 S2A $96.6 $&3.0 $62.8 $o4u $42.6 $045.0 $662.1 ~, ThlsJllPOrlcapllM... iihii I>eIow~101ho2013_V_fctecaOl.. SIlI. ~IO_ln"OllwK"

206 METROPOUTAN TRANSPORTATION AUTHORITY July Financial Plan 2013 Mid-Year Forecast Total Positions by Category and Agency CATEGORY/AGENCY Jan Feb Mat AI!!: MaS! Jun Jill A!!.9 ~ Oct Nov Dec Baseline Total Positions 65,t94 60, ,226 65, ,411 66,800 66,810 81,044 67JJ32 81, ,447 NYCTransil , ,371 45, ,396 46,495 46,391 46,357 46,525 I..oI1Q island Rail Road ,475 6,543 6,568 6,646 6,695 6,n2 6,164 6,800 6,634 6, MetJo.NoItl Rallroad 6,Q43 6,646 6,054 6,055 6,061 6,000 6,156 6,171 6,267 6,283 6,353 6,462 I3ri!:Iges & Tunnels 1,530 1,528 1,531 1,540 1, , ,766 1,746 1,746 1,746 Headquarters 1,638 1, , , , Staten Island Railway n t 211 capital Conslrudlon Companv Bus Company 3,651 3,651 3,651 3,651 3,651 3,651 3,657 3, ,657 3,657 3,651 Non-Refmbur:liable ,915 59,816 5ll,629 59, ,300 60, ,589 60,590 60,188 61,'124 NYC Tl3llsit 41,582 41,364 41,310 41,341 41,482 41,726 41,721 41,708 41,822 41,751 41,715 41,906 long Island Rail Road 5,699 5,986 5,983 5,742 5,lO9 5,878 5,&44 5,126 5,869 5,902 6,046 6,143 Metro-NtlI1h Raijl1la(J 5,131 5,687 5,653, 5,600 5,534 5,532 5,641 5,671 5,693 5,752 5,847 5,890 >< Bndges & Tunnels 1,486 1,484 1,481 1,496 1,493 1,643 1,643 1,678 1,678 1,658 1,658 1,658 I... HeadqUarteJs 1,597 1, ,583 1, ,861 1,001 1,001 1, J staten Island Railway capital CoosIructIon Company Bus Company 3, ,687 3,581 3,587 3,561 3,593 3,593 3,593 3,593 3,593 3,593 Relmbll1Sl1bie 4,945 5,111 5,358 5,593 5,969 6,171 6,433 6,559 6,465 6,442 s.li'ig 6,323 NYC Transit 3,760 3, ,030 4, ,687 4,688 4,613 4,640 4,642 4,619 Lonv Island RaW Road , MaIro-NoItl RaIlroad Bridges & Tunnels «« Heaciquartel'$ } Staten Island Railway , 1$ Capital ConstrudIon Company Bu&Company

207 METROPOLITAN TRANSPORTATION AUTHORITY July Financial Plan MidYear Forecast Total Positions by Category and Agency CATEGORY/AGENCY Jan Feb Mar AI!! Mev Jun Jut ~ Sep Oct Nov Dec Total FuJf.Time ,992 85,001 ".411 1lIl,2ll1 66,625 66,681 66,863 68,851 66,lI12 G7,267 NYC Transit 45,120 45,141 45,191 46,165 45,560 46,036 46,241 46,219 46, ,226 46,192 46,361 Long Istand Rall Road 6,490 6,475 6, ,Il95 6, Il,BOO 6,934 6,862 6,915 Metro-IIIorIh Railroad 6,042 6, , ,098 6,155 6,170 6,200 6,2112 6,352 6,41U BOOge$ & Tunnels 1, ,537 1, ,766 1,1<46 1,7411 1,746 Headqual1et$ 1,638. 1,641 1,630 t.632 1,624 1,711 1,111 1,711 1, ,711 Slaten Island Rallway Capilal ~Company Bus Company 3,638 3, ,636 3,636 3,636 3,642 3,642 3,642 3, ,642 Total Full-Time-Equlvalent.s NYC TranSIt < Long Islalld RaJ! Road Metro-NortIl Railroad Bridges & Tunnels HeadqtJaI1et$ >< T Slaten IsIaIId RaWiay... 0 (Xl capital ConsIrucIion Company Bus Company

208 METROPOlITAN TRANSPORTATION AUTHORITY July Financial Plan 2013 Mid-Year Forecast Total Positions by Function and Agency FUNCTION/AGENCY Jan Feb Mar Ae! May Jun.lUI Aug!! Oct Hoy Dec Admlnl$lnltfon 4,017 4,803 4,002 4,043 4,(143 4,246 4m 4, ,311 4,313 4,353 NYC Transit 1,79' 1,774 1,774 1,778 1,783 1,912 1, ,936 1,936 1, Long Island Rail Road MeW-North Railroad & Bridges & Tunnels Headquarters 880 Il t6 918 Slaten tsiand Railway 26 ' V ' S 25 Capital Construction Company ' Bus Company ' Opel8fions 29,012 28, os1 29,021 29, ,415 29,485 29, ,416 29,l()O NYCTtansit 21,636 21,828 21,653 21,634 21, , tl9 21, m 21, long Island RaB Road ,163 2,200 2,200 2,238 2,282 2,267 2,260 2,249 2, ,291 Metro-North Railroad 2,092 2, ,089 2,094 2,102 2,1'17 2,130 2,133 2,143 2,189 2,177 Bridges & TunnelS Headqtlal1els >< T... Staten Island Railway <.0 Capital Construction Company Bus Company , ,347 2,347 2,347 2, ,347 2,341 Nleinfenanee 28, , _ 29,082 29,412 28,596 29,597 29, , NYCTranstt 20,199 20,211 20,255 20,230 20, ,766 20,770 20,730 20, Long lsiand Rail Road ,599 3, ,659 3, ,776 3,802 3,816 3,834 MeW-North Railroad 3,388 3,389 3,387 3,401 3,40$ 3,420 3, , Bridges & TunnelS Headquar\e!'S Slaten Island Railway Capital COIlstrucfJon Company Bus Company 1,075 1,075 1,075 1,075 1,075 1, ,079 U79 1,079 1,019

209 METROPOUTAN TRANSPORTATION AUTHORITY July Financia' Plan 2013 Mid-Year Forecast Total POSitiORS by Function and Agency FtJNCTlOHIAGENCY Jan Feb Mar 1_ Aer May Jun.luI ~ ~ Oct Nov Dee Eng/tJt4!ring/CapIW liS3 1,690 1,U6 1, ,919 1,921 1,932 1,940 1,949 NYC TraMit 1,185 1, , ,319 1, ,319 long IslancI Rail Road Metfo.NorIh Railroad If! 99 t to7 110 Bndges " TUJlI'IeIs Headqualtel's Slaten Island Railway Capi\aI COnstJuction COmpany H Sus COmpany Public Safety ,5\15 1,589 1,598 t,w 1,662 1,662 1,&62 1,662 1,H NYC Transit S S4 584 Long IsIarIII Rail Road Metro-North Railroad Bridges " Tunnels ~1S Slaten Island Railway X -.- capital COnslrudion Company Bus COmpany

210 METROPOI.lTAN TRANSPORTATION AUTHORITY July financial Plan Mld#Year Forecast Total Positions by Function and Occupation ~ ~... funcnonjoccupatlon Jan Feb Mar Aer MaY Jun Jul Aug S!m Oct Nov Del; Administration 4,1)17 4, , :zT1 4, ,311 4,318 4,353 Ma/lagersfSupeI'IIisot$ 1,513 1,516 1,523 1,550 1,551 1,659 1,617 1, ,691 t, Professiona~ TllCbniCal, Clerical 2."'28 2,414 2, , , ,456 2, ,481 Operational HOII11ies Operations 29,IJ12 23, &51 29,02' 29, $ ,444 29,476 29,700 ManagersfSupervison; 3,283 a,soo 3,286 3.m ,331 3, ,342 3,342 3,343 3,344 Professiona~ Technical, CIeIlcal Opetational Houtlle$ 24,$44 24, ,024 25,121 25,114 25,102 25,197 25,141 25,171 25,395 Wiailltenance 28, ,,893 28,1l8O 29,082 29, &49 29.&83 %9,,898 %9.783 ManageJsl$upelVisors 4,918 4.m 4,960 5, ,259 5,264 5, ,211 5,284 Profe&Sional. TllCbniCal, Clerical 1, , , ,922 1.m 1,928 1,roo Operatlonai Hou!lies 22,118 22, ,160 22, , ,414 22, EnglaeerlnglC3p1tal 1,688 1, ,_ 1,695 1,755 1,858 1,919 1,927 1,932 '1,94& Managers/Supervisors Professional. T eciinlcal. Clerical 1,241 1,2;46 1, ,242 1,284 1, & 1, , Operational Hout1ies 2: 2: Publk Safety 1,513 1,6SS ,596 i,g47 1, , $2 '1.662 ManagerslSUpervisofS frT Professional, Tedmlc:al. CleficaI Operational Hourlles 1,213 1,234 1, ,227 1,251 1,251 1,251 1,251 1, Batellne Total Positions 65, ,226 65,223 65,701 66, ,447 ManagerliISupelVisocs ) ,624 10,911 11, , ,086 11, Profe$sIonaI, T ed\1licai, Clerieal 6, ,454 6, , ,812 6, ,910 6,943 OperallonaJ HoorIie$ 48,254 48,225 48, , ,951 48, ,

211 METROPOUTANTRANSPORTAnDNAUTHORITY July 2013 Financial Plan MYF Debt Service Allocation Forecast Debt Service ($ in millions) DebtSeMce: Jill Feb Mar Apr MeV Jun Jul Aug S/l'p Oct Nov Dec Total MiAT~~R~ Transit C<:mmwter 8usCompany ) Q.S U ;330 Commercia! Paper Tlansil Commuter 8usCompany (tot i , U Ii.Of , , : X T... N TBTA General Resolution Transit CoI!lmurer TBTA TSTA SubordlnaIe Transit CDmmuIer TeTA t s.an J & U )86 to.m 11) J1411 3!l.S4& 3S.49Il 5.98t , , m Broadway COPs Ttansit TBTA Hlledquatters & t (tl A S Tolal Debt Se!Vfce '1 lo ifl.p Z ~ {1} Budgeted debt service is calculated a$ resolution required funding from available pledged revenuf!$!nto debt service accounts. Actual Payment& ID bondl!olders are made when due and do COlIfOrm to 1hls schedule. (2) Debt serw;e is allocated belween Transit. COrmnuter, MTA 8U$, and lbta catego(l$s based on actual spending of bond proceeds for appn;wed capital projects. Allocation of 2 Broadway COPS is based on occupancy. (3) Totals may not add due to foijilding.

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213

214 .. >< -"... (.11 Cub 5uIWdl!I'" tj«mclltted 1_ MIlfOA"' """_BustneuTa., MRT'" 1 (Glc$sl ~R-rt"1(Gol:>.. ) OI!>etMRT""~ U,"""T_ -... r... nd_ PBY"'I-, T"" Po!yrnII-,Tax ~ntl'unds MTAJIid'" I.«MSub_ INS~AIsi$_ "'YC,"",,~ISb: "'...,..CII<Cily luuauc...,;y Su1IoIk County _tefc-1l)o PuInam CWfI1y O_.CWfI1y 0nIng<0 CWfI1y R~COUl'lly COOT~ SIIIIiaII_-'" 0tII<w~~ ~..-. 1'_ Enorgy~- :ZOtt CMIrad) F_ Enorgye-. :ZOl2 (12... CMIrad) FolWaId EneIW Cmtract Pmgram. GaWtloss) MNIl ~ lot 525 NoI1II-.ay R-""""otloillnlDC..,naII'-' F_ ~fl>copitai T"""~T "_""'~~ -'-'~"-- T 6&T OpeIamg _ SlIIpkIa 1,_ hn SlllI 1.2 SU 15.2 $ $7.1 - $11.. ~1. $30.1 "" III... AM $0.0 sao SO.!! :'1 0.3 $1.3 $6.3 SU & $1&.3 $3.- " IllI $11.0 $7.3 sau - $II.AI so.o $8.0 $$.8 $4U $4U. 17.S 28.1 $2S.6 $t17.4 $7U Metropolitan Transportation Authority July rmanclaj?tan 2013 MId-Year Forecast Commuter Rallroads Subsidies - Cash Basta!'Sin,-,.Jun.Jut A... Sol> -- WI.II $41.2 $472 15U1 $412!i.tl 1!1.1 lhi 7.5 8J $54.11 $5.1.2 $5U $511.4 $511.: U lvi O.S $IU $4U $1,.. $1:.2.4 ~ O.S HI 0.1 u $I.' $1U $ll'u U a.l 1.2 u -, 15.D!13.S $14.$ $II.AI $0.0 sao $0.0 $11.0 _& $f92.1 $U2... $:zoo t.o "10 sm.. $113.1 $ $U4.1 Oct HOY $1\4.9 $89.6 U $7U $17,.., $U $1U $1.3 t1~ so.o $11.0 $M.O t1'u "'.1 $11&.1 $U$.7 Dec T<ItaI $135.4 $ $1<.1.1 MOU ~ $41..1 $lii1.l 7.3 %9; U & 1.9 1$ U 7.:1 0.1 ti & $22.3 $3OU (30.1) (30.1) (02) (ll.2 \.1.4) (2,4) (IQIUIl (l!lo.df (MAl (51." ($ \$ $"..0 $1,01', _.ll $&f $1;.3SU L- ~~ ~~

215 Metropolitan Transportation Authority July Financial Plan 2013 Mid-Year forecast Staten Island RailwaV Subsidies Cash Basis ($ in millions} CUI! Sy/J!jd!6!1; Jan f." MIIr.. ~..~.. JIm Jul AUG ~p Oct No... Oec: TOW ~'Ied Tloo>s MMTOAI'l $0.0 $0.0 $0.0 $0.0 $0.4 $0.3 $0,3 $0.3 SO.3 $OA $0.5 $f.() $3's Petroleum 8usiMss T!i1C MRr 1 1 {Gross) MRT''" 2 (Gr<lsa) OlllerMR1"'l ~Is UlbenTax imieiimenil StaIe~ LoeM Sub$kiles $0.0 $0.0 $0.0 $0.0 $0.4 $0.3 $o.t $0.3 $0.3 $0.4 $0..5 $1.0 $3.5 NYSOpendlng~ a.& NYC and local 18b: NewYtlIkCily 0.6 Il.6 Nassau Counly X... SuIfoIl CoUllI\' WesIc:tiesIef Coooty Putnam Coon\y Duldtee& C<>UnIY... m Oraflg.. County ~Ccunty S1RTOA Rec:overy Il.1 $0.0 $0.11 $11.0 $11.0 $li.1 $11.0 $0.& $6.1 $11.0 $30.7 $0.1 $11.1 $)1.1 Total DedIcated lues "Stalelll1Cl Lout$UbSld!es $11.0 $11.1) $0.0 $11.& $0.5 $11.3 $0.9 $0.5 $O.~ $31.1 $0..5 $1.1 $31..3 au Opetaling Surplus Tnmsfer Total Subsidies $11.0 $11.0 $0.0 $0.0 $U $11.3 $0.9 $11.$ $0.3 $31.1 $11.& $1.1 $31..3!IR!!! (a~ ~Masalrilll$pOl1alionOperating~ \I»~ReQI~rlll<

216 J4n Fill> Mar N>r foe Sul!s!!f!e!: Jan Feb lilar AIv City Sull$1dy to MTA Sus $1U "'.5 $11.5 $11.5 Metropolitan Transportation Authority July FinancIal Plan 2013 Mid-Year forecast MTA Bus Company Subsidies - Cash Basis ($in/llilioll$) Mav Jun Jut AuG S. May Jun Jill AU!t Sell StU $1&.2 $18.5 $1U $4'/',3 Od Nov I:lec Total Oct Nov Pee T<IW $".s $11.5 $105.0 $395.0

217 , Metropolitan Transportation Authority July Financial Plan Mid-Year Forecast MTA Headqual't$nII Subsidies - Caah Sa$16 ($id.,..,...) Jan Feb Mal A;; Mav Jun.lid AuG SeD Oet Nov 0..: Total ~ra_ MMJOAW PeImIeI.rn Business Tax MRt1"' 1 (Gross) MRt1"' :I (GNu} Other MRl'" Mjus1men1s I..IrIlenTax 1lwe_1naIme $0.0 $OJ) SO.O SO'(I U lui (1.3) $28.5 p.u $22A $26A so.o SOD $0.0 SO.Q so.o Il (1.3 (1.3) $2U m. $21.1 $21.1 sau $0.0 $0.0 SO.O $II.!) & (29.f) (32.11) U'T.I $21.1 ($1A) $302:.& SCItte and Local SuII:oJd#K N'tS 0pendi1lQ Assis!IInce NYC and local18b: Ne\VYIllt;CiIy Nassau COllIlIy Suffolk County Wesldlesler COllIlIy Putnam c--rty DuIdIea$ COllIlIy ~COllIlIy Rodd8Ild COllIlIy COOT SuII$Idie$ $taiion Maint;mance $0.0 $0.0 to.o $1).1, $M $0.0 $OJI $11.11 $ $OJI $0.0 $II.G $M $2U $3302 $%%.4 $ $2&5 $33.2 UU $26., $26.2 sas $2:U f27j1 $ $26.2 $2U $27.1 $21.3 $26.5 $21.1 $27.1 '$1.41 $3OU $27.. t27j1 1M $302.6

218 Metropolitan Transportation Authority July Financial Plan MIdYear Forecast Consolidated Subsidies - Accrued Basis (Sin mifioos) AAA!!Il!4 i"!!si!liu; Ju Feb iiiar APt May Jwt Jill AUO SaP Oet He" Dec Tctai ~T_. MMroA'" Peboleum fihlsitlli$s Tu MRT"'I t (G/lJIIG) ~'2if''''''$S) OtIItKMRT"'IAdjIIslment$ \JIfHIn Tax Imteslmellllncome SO.o $ $1",.11 SO.o i.O SI1.1 $0,0 $1,518.2 <ltu 41, lJ 8.1 (2.1) «$122.l1 $1,81U $(IJ) SO.o SU.o $0.11 SO.O ).1 SM 5& S.3 - (2.1.. (2.f) U 4U 4t $li1u $141.0 $119.4 $t21.8 $1:tU SO.o $0.0 $OJ) $1,51&.2 51,9 ""HI ,11 to.s 19.$ 2U S (;t1} (&$) t $121.2 $1102 $137.3 $Z,HU New State T.w... 1HId Fees PaymlI MobiJIy Tax " OII MoilillyTax Replacementfunds NffAMf'I $W.s - $ $141.4 $ Jl J) - SH 6U. SI S S:t.l $1442 $111!1.% $111.3 $111!l.O $Z M SI $82.1 $1117.% $2tU $1,8211,$ X T <0 NYC _ Lo<:al1811; NewYmtCity Nasu" Comly SulfolltCounly We$ldlester CmmIy PUlnIIItI County Outt:heu Coonly Onmge County Roddand Cllullly COOT SUbsidies S~~ ANffAS> - -!1.4 l3.1 - $2t (I.?) 13.1 $ , , " lui , $UU $2U l &.8 1& $23.7 $1U $144.1 $20.3 $21J , S ] " ' Jl 7:1. au 13.t $2tA $2U $$$.3 $&l:ul $ $10U $50$2 $ $276.1 $3WI $403.1 $251.1 $:141.9 WU $DU $412.1 $5,43&.2 City SuI>sIdy for MfA Q!J$ ClIy Subskjy for SlRTOA Total OIodkatad T... & State and L<IcaI SUII$/dle$ $51OJ 1." - $115.t $5%5.4 $1,193.6 :) A 1& l $'01.6 $lam $ $281.1 $atlu U 611.$ 42S.ll 30.' $SOU $33OJI $4&8.7 $S,8M.t BAT ()perd!g Surplus TlIIIlsfer icials... ~ 0.0 $518.$ 0.0 $ & U<I3;5 $1,1ICU $361.4 $437.2: $411.4 $337.6 $ $3$.U $3IU $1i4II.' $&."'1.3 No_ fll) ~ Mass TI'8Il$flOtIaII< O... finil Asaislance (hi MtlI'IjJaQ<IR~Tax \I:) UcensIt, VetIide R~. Taxi and Auto Renlal f_

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220 SEPTEMBER 2013 MTA REAL ESTATE FINANCE COMMITTEE AGENDA ITEMS 1., ACTION ITEMS MTA NEW YORK CITY TRANSIT a. license agreement between New Yori<: City Transit Authority and Brooklyn Navy Yard b. License agreement between New York City Transit Authority and SpringCreekiGateway Center MTA LON~ ISLAND RAIL ROAD c. License agreement with Incorporated Village of Lynbrook for commuter and commercial parking lots at Lynbrook Station, Lynbrook, New York d. lease with BT To Go PS LLC for sale at Penn Station of specialty beers, cheeses, prepared meats, condiments, dry packaged goods and gift items e. Lease with Hudson Group Retail, LLC for operation of Dunkin' Donuts franchise at Penn Station f. Sale to Sutphin, LLC of property on Sutphin Boulevard in Jamaica, Queens MTA METRONORTH RAILROAD g. Lease with Central Watch Band Stand. Ltd. dba Central Watch for the repair, servicing and retail sale of watches and related accessories in Retail Space Y1-Y5 at Grand Central Terminal h. lease with Menta, Inc. dba Dishes At Home for the sale of tenant-prepared appetizers, entrees, side dishes, desserts and a limited selection of juices, iced teas and condiments in Retail Space MKT-25/26 at Grand Central Terminal i. Lease for the operation of a cafe, restaurant and bar (with a corporation to be formed by Steven Cross, as principal) at the Peekskill station building in Peekskill, New York MTA CAPITAL CONSTRUCTION j. Determination and findings pursuant to a public hearing for acquisition of various property interests in connection with new entrance for 72nd Street Station of Second Avenue Subway Project, Manhattan. New York MeIRO~OLITAN TRANSPORTATION AUTHORIIY k. Proposal to modify certain existing policies and approve additional policies regulating how MTA Real Estate enters into certain agreements XII-1

221 2. INFORMATION ITEMS a. Status report on month-t~month licenses b. Status report on Grand Central Terminal Vanderbilt Hall events c. Status report on Grand Central Terminal Graybar Passage retail kiosks d. Consent to the abandonment of a portion of North Railroad Avenue in the Village of Lindenhurst, Town of Babylon, New York 6. License Agreement with Dolores Voorhees D/B/A Metro Grab and Go for the operation of a coffee cart at Metro-North's Wassaic Station in Amenia, NY f. Permit with Town of Cortlandt for the parking of cars on a portion of the east and west parking lots at Metro-North's Cortlandt Station parking facility g. Permit with Bike New York, Inc. the parking of cars in connection with an event at Metr~North's Poughkeepsie station parking facility h. Relocation of subway entrance at 1095 Avenue of Americas i. Agreement clarifying easement rights for the benefit of MTA New York City Transit at the Hub, Bronx, NY Lega! Name New York City Transit Authority The Long Island Rail Road Company Metropolitan Suburban Bus Authority Metro~North Commuter Railroad Company Trtborough Bridge and Tunnel Authority MT A Capital Construction Company MTA Bus Company PopY'lr Name MTA New York City Transit MTA long Island Rail Road MTA long Island Bus MTA MetroMNorth Railroad MT A Bridges and Tunnels MTA Capital Construction MTA Bus Company Abbrevlatlpn NYC Transit llrr LI Bus MNR MTAB&T MTACC MTABus Staten Island Rapid Transit Operating Authority is a subsidiary of the Metropolitan Transportation Authority, Its popular name is MTA Staten Island RailWay (abbreviated SIR). Manhattan and Bronx Surface Transit Operating Authority is a subsidiary of the New York City Transit Aut/wrlty (abbreviated as MaBSTOA). XII-2

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223 Staff Summary Metropolitan Transportatron Authority Subject L~CENSE AGREEMENT RATIFICATION September 16, 2013 Department Vendor Name REAL ESTATE Date Connel Numbar Page 1 of1 Contract Manager Name Table of Contents Ref. #I Order To 1 A""".:. C<lmmIltee 2 Board Soard Action Date Approval Info Other Order Approval 09/16113 X 09/18113 X 3 '1011$ Order AGENCY: LICENSOR: LOCATION: ACTIVITY: TERM: ACTION REQUESTED: COMPENSATION: MTA New York City Transit ("NYCT"») The Brooklyn Navy Yard Development Corporation("Licensor") The Brooklyn Navy Yard {the "Yard"} Extension of bus route B67 to serve the Brooklyn Navy Yard One year, automatically extending year to year, with termination by either party upon at least 9Q..days prior written notice to the other party. Ratification of terms None COMMENTS Starting September 9, 2013, as part of the Service Investments, NYCT implemented its plan to extend the B67 bus route to serve DUMBO, Vinegar Hill, and the Yard. The route extension Will operate weekdays from 5 a.m. to 7 p.m. This route extension request was approved by the NYCT Committee and the MTA Board in June, Brooklyn Navy Yard Development Corporation, which operates the Brooklyn Navy Yards, has granted NYCT and MTA Real Estate has accepted a license to operate the service through the Yard, with two northbound stops and three southbound stops within the Yard. Based on the foregoing, MTA Real Estate requests Board ratification of its acceptance of such license. XII-4

224 --- -_.. _-_.- -_.-._--_._._----_._ ' Staff Summary Metropolitan TransportatiQn Authority Subject LICENSE AGREEMENT September 16, 2013 Department Vendor Name REAL ESTATE Date Contract Number Page 1 of 1 Contract Manager Name Table of Contents Ref. # Order 2 Soan! To Soatd Action Date Approval Info Other!nternal Approvals Dreier Approval Order Approval Flnll1Cf1 Cormlll1tee 9/16113 I"") l.ept ( ;;3f-l 9/18113 x Chle, of Stalj./l--JL\ l/ V Chief Financial OffIcer (V tj AGENCIES: LICENSOR: LOCATION: ACTIVITY: TERM: COMPENSA non: MTA New YorK City Transit and MTA Bus (collectively, ffmta Buses") Gateway Center Properties Phase II, LLC ("Ucensor") Gateway Center Boulevard, Spring Creek section of Brooklyn Diversion of three bus routes to a bus terminal facility (the "Bus Terminal Facility") to be built by Licensor at a new shopping center ("Gateway Center W) Two-years, to commence with the opening of Gateway Center" and then be extended - year to year, subject to termination on 90 days prior notice after the expiration of such twoyear period. None COMMENTS: Licensor Is planning to open Gateway Center II in the next year or two and will include in the project at its own cost the construction of the NYCT -approved Bus Terminal Facility. Three bus routes - the 83, B13 and as - will terminate at the Bus Terminal Facility for the convenience of Gateway Centsr 11'5 employees and the public. The Bus Terminal Facility will have three bus shelters and will be able to accommodate six buses at anyone time and will have an area for a layover. Sidewalks will permit passengers to disembark. queue and board the buses In an orderly fashion. Licensor will be responsible for upkeep and maintenance of the Bus Terminal Facility. In consideration. MTA Bus has agreed to commit to provide this bus service to Gateway Center II for a minimum of two years. After two years, MTA Bus will review usage and determine whether or not to continue the service. A license agreement embodying the foregoing terms and conditions was executed on August 26,2013 in order to permit the project to proceed on schedule. Based on the foregoing, MTA Real Estate requests ratification of agreement XII5

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226 Staff Summary Subjec;t Date LICENSE AGREEMENT SEPTEMBER 16, 2013 Department Vendor Name REAL ESTATE Contraet Number D Metropolitan Transportation Authority Page 1 ot2 Contract Manager Name Table of Contents Ref. # Order To 1 Fln_eCommIlI.. 2 Soard Board Action Intemal Approvals Date Approval Info Other Order Ap reval Order / ChIef of Steff AGENCY: LICENSEE: LOCATION: ACTIVITY: MT A Long Island Rail Road ("LIRR") Village of Lynbrook Commuter and commercial parking lots at Lynbrook Station, Nassau County License agreement ACTION REQUESTED: TERM: SPACE: COMPENSATION: Approval of terms Ten years, subject to termination at will by MTA on 60 days' notice 5 surface parking lots containing a total of 233 parking spaces Base Rent as follows (note payments will be made quarterly at the Village's request): ::t:ur ~ Quarterly AnnUli Increase 1 $65, $16, $70, $17,685,00 7% 3 $72, $18, % 4 $75, $18,762:00 3% 5 $77.296,00 $19, % 6 $79, $19, % 7 $82, $20, % 8 $84, $21, % 9 $86, $21, % 10 $89, $22, % COMMENTS: The Incorporated Village of Lynbrook (the 4Village") wishes to enter into a license agreement with LlRR to operate the five LlRR-owned surface parking lots at and around lynbrook Station, Four of the five parking lots are currently licensed to Flash Parking, Inc" a private parking operator, under a commuter parking license that expired in June, 2012 and is operating on a month-to-month basis. The one parking lot not currently licensed to Flash Parking, is already licensed to the Village on a month*to-month basis and would be consolidated into the new license agreement. XII-7 ---l

227 , Staff Summary FINANCE COMMITTEE MEETING Incorporated Village of Lynbrook (Confd.) Metropolitan Transportation Authority Page 2 of2 The guaranteed compensation the Village wi!! pay LIRR under the proposed license agreement represents 50% of the estimated gross revenue the parking lots are capable of generating based on current utilization levels, assuming estimated fair market rates are charged. This equates to compensation to LlRR of $283 per space in the base year, and $ in the second year. The base year compensation IS more than 100% higher than the compensation currently paid by Flash Parking. Because the base year compensation factors in an anticipated temporary drop in parking lot utilization during the first six months of the Village's operation due to the Increased fees it plans to charge. there is a 7% adjustment to the compensation at the end of year 1, with 3% annual compensation increases thereafter. As a condition of the agreement, the Village will agree to limit the use of all but 20 spaces reserved for commercial vehicles in the easternmost lot, for which there is current commercial demand, for the express municipal purpose of commuter parking, The 20 commercial spaces are located more than a third of a mile from the station in a lot that currently experiences only 60% utilizatlon. The license agreement will allow URR to reallocate these spaces for commuter use at Its sale discretion. Based on the foregoing, MT A Real Estate requests authorization to enter into a license agreement WIth the Village of Lynbrook on the terms described above. XII-8

228 ..._..._..._ _---1 Staff Summary Subject LEASE AGREEMENT Oep.nment REAL ESTATE Pepartment Head Name ~ JEFFREY B. R~.9f oepanme7z -".' tj» Metropolitan Transportation Authority Page 1 of2 Date SEPTEMBER 16, 2013 Contract Number Contract Manager Name Pl'Oj.ct~n~me DORRIE SSARIA ROBERTS f Order To 1 Ananee Commlll<la X Table of Contents Ref. # Board Action Internal Approvals Date Approval Info Other Order Approval Order Utgal 2 Soard X 3 Chief of Staff, 2 AGENCY: LESSEE: LOCATION: ACTIVf1Y: ACTION REQUESTED; TERM: SPACE: COMPENSATION; MTA long Island Rail Road ("LlRR") 8T To Go PS llc (to be formed) d/b/a Beer Table To Go ("Beer Table") Penn Station, Level A, Exit Corridor. Space 8 Retail sale of specialty beer, cheeses. prepared meat, condiments, dry packaged goods and gift items Approval of terms Ten years, terminable on 180 days' notice for corporate purposes Approximately 980 square feet and approximately 94 square feet of storage Annual base rent plus 10% of gross sales over a breakpoint. as follows: Year Annual Monthlll 8reikQ:Qint ESlrSg,Et % fncr!sse 1 $148, $12, $1,482, $ $152,($97.50 $12, $1, $ % 3 $157, $13, $1,572,784,20 $ % 4 $161, $13, $1,619, $ % 5 $1($6, $13, $1,668, $170.26' 3% 6 $171, $14,321,86 $1,718, $175,37 3% 7 $177, $14, $1,770, $ % 8 $182, $15, $1,823,28780 $ % 9 $187,798.($4 $ $1,877,98($.40 $ % 10 $193, $16, $1,934, $ % STORAGE RENT: $6,000 or $63.83 per sq, ft. per year, increasing annually by 3%, XII-9

229 Staff Summary FINANCE COMMITTEE MEETING Beer Table (Cont'd.) Metropolitan Transportation Authority Page 20f2 COMMENTS In response to a recent MTA request for proposals (<<RFP") for Space 8 on the Exit Corridor of Level A of Penn Station, five proposals were received. Beer Table's rent proposal was the second highest. While the highest rent for Space 8 was offered by KT Donuts I..LC ("KT Donuts"), which proposed a Dunkin' Donuts store, KT Donuts and another proposer, Hudson Group Retail LLC ("Hudson-) also proposed Dunkin' Donuts operations for the adjacent Space 13, which was also offered for lease in the RFP. Given that It would be counterproductive to have two Dunkin' Donuts operating in adjacent spaces, the combination of proposals for Spa~ 8 and 13 that, 1) offers the highest rent to the MTA and 2), best augments the mix of retail tenants at Penn Station, is Beer Table's proposal for Space 8 and Hudson's proposal for Space 13. The combined present value of the rent proposals of Hudson and Beer Table (calculated using a discount rate of 9%) is $1, , which exceeds the present value of the offers of the alternative combination of tenants (KT Donuts in Space 8 and a Subway sandwich store,in Space 13), which would have a combined present value ot $1,819,268. Beer Table's proposal with a present value of $1,068,178,73 is approximately 13% below the fair market value estimated by MT A Real Estate's consultant, but represents a significant increase over the rent that was paid by the previous tenant. Details of the remaining three proposals are as follows: Name of Proposer Shahld Haroon Rosen's Cafe Pepper's Mexican Grill Proposed First Year Rent $84,000 $ $68,600 Present V@Jye $ $494, $494, Beer Table is a tenant at Grand Central Termina!, where it has established a successful and growing operation selling specialty beers from a small space in the Graybar Passage. For the Penn Station location, the principal of Seer Table, Justin Phillips, has partnered with Bruce Caulfield. the principal of Tracks Bar and Restaurant and Penn Wines. long~time and successful tenants at Penn Station (Penn Wines Is situated across the Exit Corridor from Space 8). Beer Table's offerings at Penn Station will Include, in addition to its specialty beer selections, an assortment of cheeses, prepared meat, condiments, dry packaged goods, and gift items. In addition. Beer Table will make extensive renovations to the space. Based on the foregoing, MTA Real Estate requests authorization to enter into a lease agreement with Beer Table on the above-described terms and conditions. XII-10,,--, ---,---, '

230 Staff Summary Metropolitan Transportation Authority Page P Subject Date L.EASE AGREEMENT SEPTEMBER 16,2013 Department REAl.. ESTATE Oepartment Head Name JEFFREYS. Vendor Name Contract Number Contract Manager Name Table of Contents Ref Soard Action Internal Approvals Order To Date Approval Info Other rdor Approval Order 1 FInane. CoInmIltu X 2 Board X 3 Chief 01 Staff AGENCY: LESSEE: MTA long island Rail Road ("LlRR") Hudson Group (HG) Retail, LlC (khudson") LOCATION: Penn Station, Level A. Exit Corridor, Space 13 ACTIVITY: ACTION REQUESTED: TERM: SPACE: COMPENSATION: COMMENTS Retail operation of a Dunkin' Donuts Approval of terms 10 years, terminable on 180 days' notice for corporate purposes Approximately 365 square feet Annual base rent plus 10% of gross sales over a breakpoint. as follows: Year Annual Month'" BrlatsRoint Per Sg. Ft. Z! '"Crea!1 1 $120,000 $10,000,00 $1, $329 2 $ $10, $1, $338 3% 3 $127,308 $10, $1,273,080 $349 3% 4 $131,127 $ $1,311,270 $359 3% 5 $135,061 $11,255,08 $1,350,610 $370 3% 6 $139,113 $11, $1,391,130 $381 3% 7 $143,286 $ $1,432,860 $393 3% B $147,585 $12,298,75 $1,475,850 $404 3% 9 $152,012 $12,667,67 $1,620,120 $416 3% 10 $ ' $13, $1,565,730 $429 3% In response to a recent MTA request for proposals ("RFp) for Space 13 on the Exit Corridor of Level A at Penn Station, four proposals were received, The highest proposal was received from Hudson, which offered $120,000 for the initial year with 3% annual increases over the term of the lease. The proposed rent exceeds the estimated fair market value of the XII _._

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232 Staff Summary Metropolitan Tran$portation Authority Subject SALE OF PROPERTY - SUTPHIN Bt VD, SEPTEMBER 16, 2013 JAMAICA, QUEENS Department REAL ESTATE Department Head Name JEFFREY B. ROSEN Department H(lad Signature Project Manager Name Joseph Chan Date Vendor Name Contract Number Co~actManagerName 1 Table of Contents Ref. if.,. Order 1 Internaf Approvals Order.. Approval Order Approval 1!..egal 3, Chief of Staff 3 Boord 0"9/18113 x 2 Cllfef f'jnllnclaloffi<:m, AGENCY: PROPERTY AFFECTED: PURCHASER' ACTION REQUESTED: COMPENSATION; MT A long Island Rail Road (BURR») A 3,408 sq. ft. parcel adjacent to the SutphIn Blvd. underpass in Jamaica, Queens (the "Loading Dock Parcel") and a 773 sq.ft. adjoining parcel under such underpass (the "Undemess Parce''') Sutphin, ltc Approval of terms $1.7 million COMMENTS: Pursuant to a memorandum of understanding dated March 2013 (the "MOU"), URR and Greater Jamaica Development Corporation ("GJDC") agreed to jointly market, through a request for proposals, the Loadins; Dock Parcel and Underpass Parcel (collectively. the "URR Parcel", together with an adjoining 0.13 acre (5,794 sq. ft) GJDC...owned parcel (the "GJDG Parcsi) in Jamaica, Queens (together, the HCombined Parga I"), so as to arrow a hotsl with retail uses to be developed on the Combined Parcel. Such request for proposals (the ffrfp") was Issued on July 27,2012. The Loading Dock Parcel contains an open air loading dock and compactor serving the commissary and station cleaning operations for LlRR's Jamaica, Flatbushand Penn Stations, as well as a Consolidated Edison switchgear service, which provides power to the Jamaica Station. The RFP contemplated that such facilities would either need to remain undisturbed by such development or else be relocated by the developer without cost to LlRR.. Under the applicablazoning, the entire Combined Parcel has been ;ilssigned a maximum permitted fioor area ratio (ufarn) of 12, except that the Underpass Parcel has been assigned an FAR of 1. Thus, the LlRR Parcel can accommodate 41,669 square feet of building area. which is 38% of the total buildable square footage of the Combined Parcel (111,191 buildable square feet). In accordance With the MOU, lirr and GJDC will therefore divide the net proceeds from the sale 38% - 62%. Purchaser was one of two firms that submitted responses to the RFP. However, the other proposal, submitted by BRP Development Corp., contained unacceptable contingencies that were inconsistent with the requfrements of the RFP Purchaser has proposed to purchase the fee interest in the Underpass Parcel and the GJDC Parcef, together with the fee interest In SO much of the loading Dock Parcel as is not occupied by the aforementioned Con EdISon facilities and URR foading dock and the development rights associated With the remainder of the LoadIng Dock Parcel (to be used to buljd a taller buildmg than would otherwise be permitted on the GJDC Parcel), for a purchase price of $4.50 million, of which Xll-13

233 Staff Summary finance COMMITTEE MEETING Metropolitan Transportation Authority PROPERTY DISPOSITION - SUTPHIN Bt VO, JAMAICA, QUEENS (Cont' ci.) Page 2 of 2 LIRR will receive proceeds of slightly over, $1.70 million (36% of the gross proceeds from the sale of the Combined Parcel that will remain after payment of transaction costs amounting to $49,500). The purchase price exceeds the fair market value of the Combined Parcel, as estimated by an independent appraiser prior to the issuance of the RFP. consistent with the requirements of the Public Authorities Law. Purchaser plans to construct and operate an approximately 210-room, 24-story focus seniee hotel (minimum 3' stars) with retail and a franchise restaurant. The building footprint will encompass lots 4.2, 43, 47 and most of 46 of Block The LlRR loading docks and Con Ed switchgear (which are (ocated on Lot 52) will be provided by Purchaser with a decorative front but will otherwise be unaffected. Purchaser has agreed to reimburse the lirr for Whatever force account costs may be incurred in ecnnemlcn with the project. PUrchaser is an affiliate of Able Management Group, Inc. (ltable Hotels"), which is a NY-based firm that specializes in developing, branding and operating hotels in the New York metropolitan area, Able Hotels currently owns and manages a 125-room full service hotel in PlainView, NY. and a 110-room focus service hotel in Brentwood, NY. The Combined Parcells located in the Downtown Jamaica Urban Renewal Area; and the GJDC Parcel was purchased by GJDC using funds provided by the Port Authority of New York & New Jersey,in anticipation of and In order to facilitate development on the Combined Parcel of the kind proposed by Purchaser. The proposed sale and resulting hotel development will complement and enhance initiatives by URR, the Port Authority and GJDC to foster transportationoriented development in the vicinity of Jamaica Station and JFK Airport. Based on the foregoing, MTA Real Estate reque~s authorization to convey a combination of the fee interest and development rights associated with the Loading Dock Parcel as described above, together with the fee interest in the Underpass Parcel, to Sutphin, LLC on the above-described terms and conditions. Xll-14

234 ~~ ~ ~ , _._ _._-_....._-_._._-_... _.. _.._ _._ _... M IL XII-1S

235 J Staff Summary Subjett LEASE AGREEMENT Department REAL ESTATE Department Head Name JEFFREY B. EN Proje'~hvr.iiJef NAml"'XiVlu Date SEPTEMBER 16,2013 VandorN.me Contract Number Contract Manager Name. Table of Contents Ref. "# Metropolitan rransportation Authority Page 1012 Board Action internal Approvals Order To Date Approval Info Other Order Approval Order 1 Flmm~. COIllllllt!ee X 2 09/16113 x Cblefof&taff 2 AGENCY; LESSEE: LOCATION: ACTMTY: ACTION REQUESTED: TERM: SPACE: COMPENSATION: MT A Metro-North Railroad ("Metro-North") Central Watch Band Stand, Ltd, dba Central Watch Retail spaces Y-1. Y-2, V-3, Y-4. Y--5 The repair, servicing and retail sale of watches and related accessories Approval of terms 5 years Approximately 315 sq. ft. Annual Base Rent plus 8% of gross sales over a Breakpoint. as follows: Year AnnYI' Base ~ E)f. irtskl!2iat 1 $ $ $1,100, $80, $ $1,133, $82, $1,186, $ $ $1.201,999,70 5 $87, $ $1.238, MARKETING: TRASH: SECURITY: INSURANCE: CONSTRUCTION PERIOD; $10.61 per sq. ft per year, Increasing annually by 3% $ 6.00 per sq. ft:. per year, increasing annually by 3% Thn:l$ months minimum rent plus a guaranty of a principal of Central Watch Band Stand, Ltd. (limited to six: months' rent after vacating of premises) Standard 60 days XII-16

236 Staff Summary finance COMMiTTEE MEET!NG Central Watch Band Stand, ltd. dba Central Watch (Cont'd.) Page 2 of 2 8 Metropolitan Transportation Authority COMMENTS; In response to a recent MTA request for proposals for Retail Space Y-1, Y-2, y-a, Y-4, Y-5 at Grand Central Terminal, a single proposal was received from Central Watch Band Stand, Ltd. dba Central Watch. Central Watch has been owned and operated by the Kivel family since opening In the Terminal in Central Walch's primary business is the repair and selvicing of watches, however it also cerries a full line of watches and watch accessories. Central Watch has maintained a solid reputation in NYC and the loyalty of a wide customer base. The proposed guaranteed minimum rent exceeds the fair market rental value of the subject space, as estimated by Williams Jackson Ewing, and represents a significant increase over the current guaranteed rent amount. Based on the foregoing, MT A Real Estate requests authorization to enter Into a lease with Central Watch on the above-descrlbed terms and conditions, XIt-17

237 Staff Summary Metropolitan Transportation Authority Subject Date L.EASE AGREEMENT SEPTEMBER 16,2013 Department Vendor Name REAL ESTATE Contract Humber Page 1 or3 Contract Manag&!' Name Tabla of Contents Ref. II Order To 1 Flnllllce CommItt.. 2 Board Board Action Internal Approvals Date Approval Info Other Order Approval Order 09118/13 X 09/18113 X 3 Cllief of Staff :z AGENCY: LESSEE: LOCATION: ACTIVITY: ACTION REQUESTED: TERM: SPACE: COMPENSATION: STORAGE RENT: MARKETING: TRASH: SECURITY: INSURANCE: MT A Metro-North Railroad ("MetrO-North") Menta, Inc.dba Dishes At Home Retail Space MKT-25/26 and Storage Space 8S-06 The retail sale of tenant-prepared appetizers. entrees, side dishes, desserts and a limited selection of juices, iced teas and condiments Approval of terms 10 years Approximately 471 sq. ft. and approximately 60 sq. ft. of storage space Annual Base Rent plus 8% of gross sales over a Breakpoint, as follows: XU! ADDYII 61!$! Rint f f bat!lil9.l!l1 1 S18S,871,00 $ $2,500, $194, $413,03 $2,575, $200, $ $2, $206,384,44 $ $2,131, $212,575,97 $ $2,813, $ $ $2,898, $225, $ $2, $ $ $3.014,684,66 9 $239, $ $3.166, $246, $ $3,261, $82.00 per sq. ft, per year. increasing annually by 3% $10.61 per sq. ft. peryeer, increasing annually by 3% $ 9,00 per sq. ft. par year, increasing annually by 3% Three months minimum rent plus a guaranty from MosheMallul.aMenta.lnc.principal (limited to six months' rent after vacating of premises) Standard XII-18

238 , l Staff Summary FINANCE COMMITTEE MEETING Menta, Inc. dba Dishes At Home (Cont'd.) Page 2013 Metropolitan Transportation Authority CONSTRUCTION PERIOD: 60days - COMMENTS; In response to a recent MTA Request for Proposals ("RFP") for Retail Space MKT-25/26, Grand Central Terminal, three proposals were received. Subsequently Eli's Manhattan Warehouse lnc. dba Eli's Table withdrew its proposal. The two remaining proposals were received from Menta, Inc. dba Dishes At Home and A Cerlello Corp elba Cariello Fine Foods. Per the Guidelines for Selection of Tenants for Grand Central Terminal approved by the MTA Board in November 2009, such proposals were independently evaluated by Williams Jackson Ewing and Jones lang LaSalle, and subsequently evaluated by the Director of GCT Development When evaluating the proposals. two evaluation criteria were taken Into account. Selection Criterion A, which accounts for 70% of the score. Is designed to evaluate the direct economic value of a proposal. Selection Criterion B, which accounts for 30% of the score, is the evaluator's determination of a proposal's indirect economic benefit to the MTA. As illustrated in the attached chart, Dishes At Home's Unadjusted Guaranteed Rent Amount (Le. the proposed guaranteed minimum rent,on a present value basis determined using a discount rate of 6%) and its Total Selection Criteria Score were both higher than those for the other proposer; and consequently a selection committee was not convened. The rent proposed by Dishes At Home exceeds the estimated fair market rental value of the subject space, as determined by Williams Jackson Ewing. Dishes At Home has been a successful tenant in the Grand Central Market since Dishes has proposed a significant renovation, including the installation of new equipment and other fixtures throughout the store, as well as, a reconfiguration of the space by eliminating an existing back wall so as to enable customers to enter the space, thereby increasing sehing space and significantly improving customer flow. Based on the foregoing. MTA Real Estate requests authorization to enter into a lease agreement with Menta. Inc. dba Dishes At Home on the abol/e-described terms and conditions. XII-19

239 Staff Summary _ Metropolitan Transportation Authority Grand Central Terminal Retail Leasing Evaluation Sheet Evaluator: Nancy Marshall., Director GeT Development Space: MKT ~ (currently Dishes) Date: July 22, 2013 Page 1013 t~ It e C IJlld~i1tJ.1 ~wa~sint M;UitU G~l\twI<t ~ {j.u~~~. Al'fIOtUM f'ktet" AtMUllt '11 It!l {) u~.!!a~ ~* I':"t.~n E f {; A11l~ttl!!.&m.~ P_M!it!.Imt BE. ~illi~ Ad!!a~t A~tfllJ ftlmtammt FKt t'" 'f} ic.. fl W t= $c;0!''!j... ii).1\}'1 i J 19 ~ $~ St*tiOO ~i~d 'rioom ${;~l'ff StOfi tjl}.~ IH..-n M~ll 00;; $ l,:7l,h9 ti ~.t$athm'~ I ~t571,r79.17 $ l:is.. 1JJ $ ',!rt.h~,r: 70 )ii,;:a.. ~ N o car~~!'l!\~ roooli ~ 1.M;9.1SUH 1 n.tils, is.16?.. r ~ C 1",,4~f~:15"{.. Gl.iM<!InMa ~ A~W~ f~r 1l't!m t,~ fro u '~ AI to U I m. fu~ 1,".$t Ul'I~J~ Aj: ~"tv$fm$y ~ N ~ u U(! w~m"...?ere"~ ~i A~/j\'mmt f~~ all ~~ u ~.5G {ro ~,t;4j~1rity *trt Dj nl'}" i~ $$ :&1'0 ~i'!t um~tilab'1ut 01 52,-e lu., ~" ji..... ~tloo CriMm'! A $e«t 70 mit~ trt tliij ~ j}f~ A.ated T~ tltw1t ~t fqr ~ fm~ tilt h ~lmit MmtH n~t&l Rt1rt ~.t'oo!illt ;t;l>ffl t;.:!f4ll'ru'l G.

240 Staff Summary SubJect LEASE AGREEMENT Department REAL ESTATE Department Head Name JEFFREY B. RO~ Department~~ Date SEPTEMBER 16, 2013 VandorName Contract Number. Contract Manager Name a Metropolitan Transportation Authority Page 1 of2 proj;r'~me ALI GGS / Order To 1 i "11UIn~' Commlttae 2 Ward Table of Contents Ref. j Board Action Intemal Approvals Date Approval Info Other Order Approval Order 09/1111t Chief of Staff AGENCY: TENANT: LOCATION: ACTIVITY: MTA Metro-North Railroad ("Metra-North") Corporation to be formed ("TBF") with Steven Cross as principal PeekSkill Station on Metro-North's Hudson Line Net lease of station building for operation of a restaurant, bar and coffee concession ACTION REQUESTED: TERM: SPACE: COMPENSATION: Approval of terms Ten years Station building & toft area - approximately 3,000 square feet Partial basement - approximately 1,000 square feet Outdoor plaza - approximately 1,630 square feet Base Rent as follows: AnnUli Yut Annual Monthl~ l!l~reg!! 1 $60, $5, $61, $5, % 3 $63, $5, % 4 $65, $5, % 5 $67, $5, % 6 $69, $5, % 7 $71, $ % 8 $73, $6, % 9 $76, $6, % 10 $78, $6, % COMMENTS: In furtherance of a net leasing program that MTA Real Estate and Metro-North have developed to provide for the adaptive re-use of selected Metro-North station buildings, a request for proposals (~RFP") was issued seeking proposals to utilize and maintain the entire Peekskill Station Building (the "Building"), consisting of a restaurant area, kitchen. closed ticket office, concession space, waiting room and bathrooms. XII-21

241 Staff Summary. 8 Metropolitan Transportation Authority FINANCE COMMiTTEE MEETING Peekskill Station. (Cont-d.) Pl1ge2of2 In response to the RFP, a sll"l9ie proposal was received. from T8F, which offered $60,000 for the initial year with 3% incre8se$ over the term of the IeSH. Over the 1O~year term. the present value of such proposed rent. using a 9% dl$coum rate, is $ steven Cross currently 'Owns and operates two successful restaurants In Westchester. raf proposes to operate a bar and grill In the Building. which was, formerly occupied by another Metro-North tenant called Kelty's. TBF has proposed to undertake approxirmtety $165,000 worth of improvements to the Building, including the addition of a commercial air conditioning system. renovation of an existing kitchen with updated fixtures and appliances and refurbishment of the former ticket offlce as a coffee concession serving moming rush hour customers. A waiting area and access to bathrooo'l$ w!!l continue to be provided to Metro-North customers. whether or not they patronize the coffee concession 01' restaurant. TeF may also Install solar panels on the roof. subject to required approvals beforehand, A portion of the cost of the new air conditioning system for the waiting area which will benefit Metro-North customers ~ will be shared by Metro-North, but the remainder of the foregoing improvements Will be paid for by TBF. Additionally, the TaF has agreed to replace the roof of the Building (at Metro-North's cost and optlon) and repair the windows at Metro-North's cost. Steven Cross wlu pt'ovide a guaranty for completfon of the project as well as all other obligations of TBF under the lease for a period of six months subsequent to any surrender of the premises or termination of the lease. Based on the foregoing. MT A Real Estate requests authorization to enter into a lease agreement with TBF on the tern'll described above. XII-22

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243 Staff Summary Subject EMINENT DOMAIN DETERMINATION & FINDINGS SEPTEMBER 1S t 2013 Department Vandor NarTI1t REAL ESTATE Date Contract Number Contract Manager Name 3 Metropolitan Transportation Authority Page 10(2 Table ot Contents Ref. II, Order To 1 Flnllllct ComnIItIte 2 Board Board Action Date Approval Info Other Order Approval 9116/13 X X AGENCY: LOCATION: ACTION REQUESTED: MTA Capital Construction Company (~MTACC") 301 East 69!1l Street (Block 1444, Condominium #377) (formerly Lot 1) located on the northeast corner of Second Avenue and East 69 th Street in Manhattan (the "BuHding") Approval of Determination and Findings under the New York Eminent Domain Procedure Law ("EDPL.) to acquire additional permanent and temporary easements in portions of the Building in order to construct a new subway station entrance ("Entrance in) for the 72M Street Station of the Second Avenue Subway Project COMMENTS: In September the MfA acquired by eminent domain permanent and temporary easements in the ground floor, basement and sub~surface levels of the Building for purposes of constructing and maintaining Entrance 1 for the Second Avenue Subway's nnd Street Station. MTACC's recent design modifications for Entrance 1, which will move the entrance at street level from street level space in the Building to two canopied entrances in a sidewalk bump..out on Second Avenue, will require acquisition of additional permanent and temporary easements in the Building. Specifically, a permanent subsurface easement is needed to construct an opening in the Building'S foundation wall to accommodate a new subsurface passageway that will link the sidewalk entrance to the nnd Street Station mezzanine. Additionally. the MTA's existing temporary easement must be expanded over the entire underground parking garage in order to perform essential work associated with the construction of the entrance and station. This work will require temporary closure of the garage for up to 24 months. Finally, temporary easements in three street-level retail stores and in the remainder of the Building's basement are needed to perform utility relocation work. On July 24,2013, the MTA held an EOPL public hearing to review the public use, benefits and purposes of Entrance 1, the additional easements that will be needed to construct Entrance 1, and the impact that Entrance 1 and its construction may have on the environment and residents of the area. As required by law, a notice of the hearing was published in newspapers and sent by certified mail to the affected owners or their legal representatives. The haatlng followed two prior public presentations of the Entrance 1 design modifications to Manhattan Community Board a and private meetings with affected owners in the Building. Following a presentation by the MTA's hearing officer at the July 2411'1 EOPL hearing, two speakers made statements about the proposed property acquisitions and associated impacts. In addition, MTA received written comments on behalf of another party prior to the hearing. The three sets of comments are summarized as follows: XII-24

244 _ J Staff Summary FINANce COMMITTEE MEETING Eminent Domain Determinations and Findings (Contd.) Page 2 of 2 Metropolitan Transportation Authority 1. An attomey representing 301 E. 69 th Street Owners Corp. (owners of the Building's residential co-op) congratulated the MTA for moving Entrance 1 out of the Building at street level; raised concerns about structural work, utility relocations and construction impacts to the Building under the new Entranca 1 design; and requested that the co..op's representatives be fully involved going forward in partnering with MT ACC on construction-related issues. 2. An attomey representing MacArthur Properties. LLC (owners of commercial condominium units located in the street and basement levels of the Building) submitted a letter that preserved his client's right to challenge the MTA's proposed condemnation and to seek additional monetary compensation from MT A; and raised concerns that construction-related impacts and permanent impacts from Entrance 1 's relocation to the sidewalk adjacent to his client's store spaces could, in his opinion, negatively impact the rental income and market value of those spaces. 3. A member of the public made general comments about the Second Avenue Subway Project that were unrelated to Entrance 1 and complained that the MTA's eopl public hearing presentation (lasting 31 minutes) was too long. With respect to the portions of comments #1 and #2 above relating to concems about the construction and operational impacts of Entrance 1 on the Building, It should be noted that the MTA prepared a technical memorandum etech Memo") that evaluated the current Entranca 1 design change and concluded that the change did not give rise to any new environmental impacts beyond those already addressed in Final Environmental Impact Statement for the Second Avenue Subway Project. The Federal Transit Administration {"FTA"} approved the Tech Memo on June Among other things, the Tech Memo noted that the new Entrance 1 design would mitigate utility relocation and other constructionrelated impacts that would have occurred under the former design, which sited the entire entrance box inside the Building. Both before and after the EOPL public hearing, MTA and MTACC staff and consultants have been in contact with the affected owners' representatives to discuss the project and will continue to work with the affected owners and occupants, of the Building to address their concerns and mitigate impacts as much as reasonably possible. MT A Legal and MT A Real Estate also will endeavor to reach negotiated agreements to secure the required easements in lieu of eminent' domain, if possible. After due consideration of all statements and comments received during the EOPL public hearing comment period, MT A staff recommends Board approval of the acquisition, by eminent domain, if necessary, of the property interests described in the attached Determination and Findings. This action will authorize MTA staff and counsel to continue with the proceedings to acquire the required property interests by eminent domain, if necessary. XII-25

245 DETERMINATION AND findings PURSUANT TO ARTICLE 2 Of THE NEW YORK EMINENT DOMAIN PROCEDURE LAW SECOND AVENUE SUBWAY PROJECT nod Street Station - Entrance East 69 th Street, Manhatta.n (alkla Manhattan Block 1444, Former Lot 1, Condo #317) In accordance with Section 204 of the New York Eminent Domain Procedure Law ("EDPL"), the Board of the Metropolitan Transportation Authority e'mt A") hereby approves the acquisition of property interests described below by eminent domain, if necessary, and adopts the following statutory findings: 1. EOPL Public Hearing. On July 24, 2013, on prior notice duly given to the publfc and the affected property owners, MTA held an EDPL public hearing to inform the public and to receive the public's comments on the proposed ac:iuisition of a permanent easement and temporary easements in the building at 301 East 69 Street in Manhattan (the "Building") to support construction of Entrance 1 of the Second Avenue Subway Project's 72nd Street Station (NEntrance 1"). All oral and written comments received during the public comment period have been reviewed, made part of the record, and given due consideration. 2. Additional Property Interests Needed to Construct Entrance 1 under its Modified Design and Reasons Supporting the Design and Location Change. Under its original design, Entrance 1 would have been located entirely within the Building, a 19-story condominium building consisting of residential apartments on floors 2 to 19, first floor retail currently subdivided into 5 stores with basement space, and an underground parking garage. The residential space, retail space, and garage each comprises a separately-owned condominium unit. The residential condominium unit is operated as a co-op; the garage condominium has a single owner; and the retail condominium presently is subdivided into 5 separate store spaces. In September 2010, MTA acquired permanent and temporary easements in a portion of the Building's ground-level retail space, garage and other areas of the basement to accommodate entrance construction under the original design. The acquisitions required MT A to permanently displace the two commercial tenants closest to the comer at East 69th Street - Patsy's Pizzeria and the New York City Off-Track Betting Corporation's uotb" betting parlor. In early 2010, in an effort to minimize entrance construction impacts and risks associated with utility relocations and structural modifications to the Building, MTA began a consultation process with the three condominium unit owners. To address the Building's utility concerns and meet the needs for a subway entrance at this location, MTA and its consultants have developed a modified design for Entrance 1. At street level, the modified design relocates Entrance 1 from the former Patsy's Pizzeria and OTB spaces into two canopy~sheltered entrances within a widened public sidewalk on the east side of Second Avenue adjacent to the Building. The sidewalk will be bumped out by an additional 9 feet from its existing width of 20 feet. Each canopy structure will measure approximately 13 feet, 10 inches wide by 40 feet. 8 inches long. Each canopy will consist of a granite base topped by a glass and steel canopy. The canopy will be tallest (15 feet, 7 inches) where the stairvvay or stairvvay/escalator meets the sidewalk. The canopy will slope downward to a height of 6 to 7 feet above the sidewalk. The northernmost canopy will house an escalator and a staircase. The southernmost canopy will house a staircase. Below street level, the two entrances will enter the basement and garage areas I ~ *X~II~29~ ~ 1

246 ..._..._-----_._ _---1 of the Building utilizing the permanent easement areas that MTA previously acquired by eminent domain and lead to a common mezzanine and escalator bank for the 12 nd Street Station. The escalator bank will lead customers downward to the station control area. When the FEIS was prepared, the New York City Department of Transportation had a policy against sidewalk bump-outs along Second Avenue south of 12nd Street. However, at this time the City DOT is planning a bike lane In the east lane of Second Avenue and will now ahow sidewalk bump-outs adjacent to the bike lane. With this change, a widened sidewalk on Second Avenue in front of the Building is now possible and will complement the City oors plans for a bike lane at this location. City DOT also has agreed to a bump-out configuration that could remain at this location in the event that a bike lane is not constructed. Under this location and design change, there will be much less impact to the Building's utilities. A relocation of the boiler room will not be necessary, changes to the gas service mains will not be required, and the duration of outages is likely to be reduced. Only minimal building utility lines will remain in the entrance space as compared to the original Entrance 1 design. With the Entrance 1 design and location change. some portions of the entrance structure will remain in subsurface areas under the Building, but there will be less impact to the Building's utilities and minimal permanent use of its ground floor space. In order to construct Entrance 1, however, MTA must acquire additional easement rights in the building as follows: (1) extension of the existing temporary easement over the entlre garage for a period up to 24 months; (2) modification of the existing permanent easement to accommodate a subsurface opening in west side of the Building'S foundation wall; (3) temporary easements in the three retail stores for utility relocation; (4) a temporary easement in the store previously used as a tanning salon for structural modifications; and (5) a non-exclusive temporary easement over the remaining basement area of the residential co-op for access during construction of Entrance Public Use, Benefits and Purposes. The public use, benefits and purposes of the Second Avenue Subway Project are extensively discussed in the Final Environmental Impact Statement for the Second Avenue Subway Project ("FEIS") that was issued in April In short, the Second Avenue Subway will provide mucf1..n!!eded subway service to new areas on Manhattan's East Side and an alternative to the overcrowded LeXington Avenue Line. Entrance 1 is an essential element to the subway's 72"d Street Station. 4. General Effect on the Environment and Residents of the Locality. A complete description of the environmental impacts of the Second Avenue Subway Project is set forth In the FEIS. The potential impacts associated with the new design for Entrance 1 were evaluated in MTA's Technical Memorandum No. 11 ("Tech Memo 11"), which the Federal Transit Administration approved on June 7,2013. The following is a summary of impacts most applicable to the work in and around Entrance 1 and the 12"d Street Station. Construction Impags With the modified Entrance 1 design, material that is excavated during construction will no longer be removed through the Building's retail space. The utility network in the former Patsy's Pizzeria and OTB spaces will remain largely In place and will not allow for a large enough opening between the basement and street levels for removal of construction spoils. Under the modified design, spoils will be removed from two locations. Spoils from the station adit, which is the Inclined escalator tunnel connecting the mined subway tunnel to the Building's basement, will be removed via the parking garage and possibiy.from the Second Avenue sidewalk area. Spoils from the sidewalk entrances and area immediately beneath the sidewalk will be X~I~2Z

247 removed from the Second Avenue sidewalk area. Spoils from the adit removed through the Building's parking garage will require its full closure for up to 24 months. The amount of the spoils removal from the adit is the same as for the original design. Spoils from the sidewalk entrances will be carted from a work zone along Second Avenue. Spoils removal is expected to take place for about 33 days. Tech Memo 1 concluded that the amount and duration of spoils removal under the modified entrance design will not meaningfully change the construction means and methods or the analysis of construction impacts presented in the FEIS. As with all construction on this project, MTA wilt monitor noise, vibration and air quality to insure that all applicable performance standards are met by its contractors. During construction of Entrance 1, preventlve measures will be undertaken to protect the safety of Bunding residents, the public, and construction workers from any contaminated materials that may be encountered. Any asbestos or lead paint abatement work that may be encountered in the course of utility relocation and structural work inside the Building will be performed in accordance with all applicable standards and regulatory requirements. Pedestr,@n nd Traffic Impacts MTA's pedestrian analysis for the modified Entrance 1 design concluded that in the morning and evening peak periods for subway ridership, the east side of Second Avenue and north side of East 69th Street, the north and east crosswalks, and the northeast comer at the intersection of East 69th Street and Second Avenue will operate at los D or better, which is acceptable for this location, wiunot adversely impact pedestrian flows, and will not result in a degradation of the LOS as compared to the Original Entrance 1 design. The sidewalk bump-out that would accommodate the modified design for Entrance 1 wiu eliminate approximately 6 to 8 metered parking spaces that were planned along the east sidewalk of Second Avenue. As with the original design, the modified design will permanently remove about 18 of the 40 striped parking spaces in the Building's garage. In addition, the modified design will temporarily close the garage during construction for up to 24 months. Tech Memo 11 shows that the study area around Entrance 1 currently has a surplus of off-street parking. It concludes that the loss of 6 to 8 metered spaces that were planned for in the original design will not significantly impact parking supply and that the reduction of about half of the garage's parking spaces will not result In a shortfall of off~street parking spaces in the parking study area. MTA has developed an Interagency Traffic Management Task Force to implement and monitor traffic mitigation for the Project. The traffic mitigation will be refined as needed to accommodate traveler and community needs while maintaining the safe and efficient construction of the subway in as timely a manner as possible. Land Use ImD: cts The modified design will utilize only about 170 square feet out of the 2,717 square feet of the Building's ground floor retail space for a Station Entrance Control Room and scale back the area needed in the basement from 4,658 square feet to 2,945 square feet of space. This will result in a net reduction of 4,260 square feet of space within the Building than was needed under the Original entrance design. At some point in the future after construction of Entrance 1 is completed, MTA may be in a position to sell or lease the excess space for retail or other non-transit uses. The new canopied subway entrances atong the expanded sidewalk of Second Avenue will *,_, Xll,28_,, --l

248 Introduce new visual elements on the sidewalk. As noted in the FEIS, subway-related structures will not have significant visual effects along the Second Avenue Subway alignment because they are similar to other common features of Manhattan streetscapes and will not be incongruous to the visual environment. While some utility relocation within the Building is still required, the modified design substantially reduces the Impacts to the Building's utility functions as compared to the original design. A utility access easement will continue to be reserved for the portion of Entrance 1 that will remain in the Building's basement to allow the Buildings owners to access and service those utilities. Socio-Economic Impacts Businesses could be adversely affected by the disruptions associated with construction activities, such as reduced pedestrian and vehicular access, removal of parking. and reduction in the visibility of some businesses. Though temporary, these disruptions could affect the businesses' revenue streams and could make the areas in the vicinity of construction activities less desirable locations while construction is underway. To help mitigate these impacts, MT A will coordinate with businesses in each phase to address access/delivery issues; and provide special loading and unloading areas on nearby side streets to locations where access will be curtailed in front' of buildings during construction. In those designated side street areas. parking may be prohibited to allow more reliable deliveries and pickups. MTA will continue to employ its community outreach program throughout construction to keep the affected neighborhood informed about construction activities taking place. ANYONE SEEKING JUDICIAL REVIEW Of THE ABOVE DETERMINATION AND FINDiNGS MUST COMMENCE LEGAL ACTION IN ACCORDANCE WITH EOPl 207 NO LATER THAN 30 DAYS AFTER MTA COMPLETES ITS lwoday PUBLICATION Of THIS DOCUMENT, OR A SYNOPSIS THEREOF. XII 29 J

249 _----_..._._--_._--_._ _... I XII-30

250 ... _._ Staff Summary. Subject Date REAL ESTATE POLICIES SEPTEMBER is} 2013 Oepartment Vendor Name REAL ESTATE Contract Number Metropolitan iransportation Authority Page 1of3 Contract Manager Name Table of Contents Ret" Board Action Internal Approvals Order To Date Approval Info Other Order Approval Ordar 1 FI_CommIttft 9/16113 X Soard X 3 Chief of Staff t!= AGENCY; PURPOSE: All agencies To obtain Board approval to modify certain existing policies and approve additional policies regulating how MTA Real Estate (UMTARE") enters into certain agreements as set forth in the attached resolution COMMENTS: In an effort to streamline and expedite the process by which MTARE enters into real estate agreements, the MTA Board has approved a number of policies setting forth the parameters under which MT ARE may enter into specific categories of agreements with third parties without prior Board approval, in most cases notifying the Board of the terms of the agreement subsequent to the agreement's execution. MTARE Is hereby proposing to amend two of these policies and add three additional policies, as described below. Board approval of these proposals will permit MT ARE to more rapidly execute certain transactions under circumstances in which (I) time is a factor; (ii) the transaction Is between public entities and the value is low; {iii} the real estate transaction is essentially ministerial; or (iv) where there is a clear winner amongst multiple proposers pursuant to a publicly-advertised request for proposals. Proposed modifications to existing policies: A. Modification to Polley on Month-ta-Month License for Passenger Amenities, dated June 9, 1988 (Real estate Department Policy #9, copy attached) This policy permits MT ARE to enter into monthto-month agreements for vacant concessions that provide amenities for MTA customers (such as newsstands and coffee shops). MTARE seeks to modify paragraph 6, "Type of Servjces~ of the policy to include the month-to~month licensing of vacant space for "pop-up retailers of various kinds. which would include any use permitted by the MT A agency in whose facility the retail space is located. The phenomenon of pop-up retail has grown rapidly of late allowing smail entrepreneurs, online businesses (socalled as-tailers"), and established corporations to rent space in generally "as-is" condition to provide short-term «showroom" exposure for products or services, MTARE believes pop-ups will provide a fresh and beneficial element to our facilities, while also providing revenue in spaces that would otherwise be vacant while the request for proposals process for a term tenant is underway. MTAAE will obtain market compensation if possible, percentage rents where market rates are unknown. or the highest compensation that can be negotiated for any given situation, The agreements will be month-to-montn in duration. terminable at will by the MTA; Finance Committee notification of these agreements will be provided as information items. XII-31

251 ' Staff Summary FINANCE COMMiTTEE MEETING' Real Estate Policies (Confd.) Page 20f 3 11 Metropolitan Transportation Authority B. Modification to Policy on Leased-In access agreements, dated November, 15, 1999, as amended February (Real Estate Department Policy #11) This policy allows MTARE to negotiate access rights and privileges required by MTA operating agencies for capital projects or maintenance or repairs of operating facilities, typically for the duration of the project for which the rights are required, subject to a $2.000 per month limit Such permits or licenses are typically obtained from other public entitles. MTARE seeks to make this policy reciprocal (except that the $2,000 limit would not apply) so as to permit MTARE to license or grant permits with respect to property controlled by MTA agencies to other public entities for capital projects or maintenance or repairs of their operating facilities for a term no longer than the duration of the applicable project Finance Committee notification of these transactions will be provided as information items. Proposed new policies: A. Agreements covering bus route reroutlngs From time to time MTARE enters into license or permit agreements with public or private land owners at the request of MTA New York City Transit or MTA Bus to permit bus routes to traverse public or private property not considered part of the public street grid, sucli as park property. parking lots owned by otlier agencies, colteges or shopping mall parking lots, to name a few examples. The agreements usually (though not always) do not require payment on the part of either party. MTA New York City Transit or MTA Bus already informs the Transit Committee of the MTA Board of bus rerouting, as information Items, or obtains committee and Board approval of a rerouting if 25% or more of a route is thereby changed. Nothing in this proposed new MTARE policy would affect the policy of MTA New York City Transit or MTA Bus addressing Board approval relating to route changes that meet the definition of "major service changes" (where the distance of a route is changed by 25% or more of the route). Since the agreements are primarily ministerial in nature, and since Board members are already notified of the applicable rerouting. MTARE seeks permission to enter into such agreements without Board approval. An information Item (or approval, in the case of "major service changes") will be provided to the Board before or after the transaction takes place. B. Agreements with public entities where compensation Is nominal (estimated fair market value under $15,000 for permanent rights or, on a present value basis, for leased or licensed rights), and where the ownership and use of the property will remain with such public entities From time to time, licenses, permits, leases or easements are either acquired by the MTA from or granted by the MTA to other public entities. Frequently, these interests are relatively minor and the ownership and use remain with the governmental or public entity to which the lease, license, permit or easement is being granted, MTARE seeks Board authorization to enter into such low value transactions. defined as those with an estimated fair market value under $15,000 (on a present value basis) and in which the grantee is a governmental or public entity that will remain the owner and user of the rights in question, without specific Board approval. Such transactions are not subject to the Public Authorities Law requirements by virtue of having an estimated fair market value of under $ An appraisal will be obtained as required by the Public Authorities Law to estimate fair market value of dispositions as defined by the Jaw. Finance Committee notification of such transactions will be provided as information items. C. leases or licenses for retalilocatfons awarded pursuant to a request for proposals process where at least three responsive proposals are received from proposers considered to be responsible per MT A Real Estate's Board-approved policies an~ procedures MT ARE generally offers retail locations for lease or license through a publicly advertised request for proposals process. In each case where three responsive (i.e., complete and meeting the criteria of the RFP) bids are received, each from a responsible proposer, as defined in MTARE's Policies and Procedures for the Leasing-out XII-32