Who knew that there were three sets of Metropolitan Transportation Authority books for Long Island Rail Road East Side Access To Grand Central Terminal now known as Grand Central Madison? (Source: “Tunnel Of Deceit The Billion-Dollar Tunnel Shim Sham” by Clayton Guse, New York Daily News – Oct. 16). One, internal within the MTA, a second to the Federal Transit Administration and a third to the MTA Board.

MTA Chairman Janno Lieber and Gov. Kathy Hochul, never shy around a microphone or camera, have never held a press conference to acknowledge that debt service payments for the cost of borrowing brings the true project cost to $12.2 billion. Debt service costs are buried under a separate agency operating budget.

There is another set of books that includes over $4 billion more for indirect costs for what is known as LIRR readiness projects to support ESA service to Grand Central Madison. They take place east of the Woodside Harold Interlockings and are carried off line from the official project budget. These include the $2.6 billion Main Line Third Track, $450 million Jamaica Capacity Improvements, $387 million Ronkonkoma Double Track, $120 million Ronkonkoma Yard Expansion, $44 million Great Neck Pocket Track, $423 million for rail car fleet expansion and others that are necessary for implementation for ESA.

Without these projects, the LIRR would lack the expanded operational capabilities to support both promised 24-rush-hour train service to Grand Central Madison along with a 40% increase in reverse peak rush hour service. Any honest transportation project cost allocation plan would include these expenditures. This would bring the full true cost of ESA to $16.2 billion.

MTA ‘s inability to provide a specific date for start of service to Grand Central Madison other than by the end of 2022 is dishonest. There is a specific agreed-upon revenue service date in both the amended FTA Full Funding Grant Agreement with MTA along with the current project construction recovery schedule. It is dishonest for the MTA to claim that the project is proceeding on schedule and within budget.

Since 2006, this project has had numerous construction recovery schedules to make up for lost time. In 2022, the project is proceeding under the most recent current project construction recovery schedule. The budget has increased on several occasions from $6.3 billion to over $11 billion in recent years.

Each time the project has been delayed since 2006 from the agreed-upon FFGA completion date of 2013, the MTA has to keep its own Construction Management firm, Independent Engineering Project Management Oversight firm, Office of Capital Construction, LIRR Force Account and other employees on the payroll assigned to ESA for nine more years than originally forecasted in 2006. How much has all of this cost the MTA during the life of this project?

There will still be outstanding work remaining, when service begins to Grand Central Madison. How many of the 72 ESA contracts have already been or will be closed out by December 2022? Many contracts will still the need completion of all contract punch list items (to insure the contractors built the asset to meet design and engineering contract specifications), receipt of all asset maintenance manuals for any project components worth $5,000 or more under each of the remaining open contracts, payments for outstanding bills, and release of contract retainage to contractors.

Some contractors may submit claims for additional reimbursement for work based upon delays attributed to insufficient track outages or force account support from both Amtrak and LIRR. It may be several more years before all 72 project contracts are closed out. At that point, ESA will really be 100% complete. Only then, will the final true project cost be known.

Was investing $12.2 billion in direct costs for ESA worth it? The verdict is still out. Time will tell if commuters and taxpayers will see all of the benefits from this project promised by elected officials, MTA and LIRR Presidents.

Larry Penner

Great Neck

(Retired former director, Federal Transit Administration, NY Region Office of Operations and Program Management)