Objective

To determine the extent of implementation of the one recommendation included in our initial report, Utilization of the Arch Street Yard and Shop Facility (2016-S-78).

About the Program

The Metropolitan Transportation Authority (MTA) is a public benefit corporation providing transportation services in and around the New York City metropolitan area. As part of the MTA’s East Side Access Project (ESA), it constructed a new yard and shop facility at Arch Street in Long Island City, adjacent to the No. 7 line Hunters Point Ave. Station. This facility was designed to provide inspections, maintenance, and cleaning for Long Island Rail Road (LIRR) trains that operate into Grand Central Terminal. However, the latest projections are that this service, which is contingent upon ESA completion, will not begin until December 2022.

From July 2016 to June 2019, LIRR incurred $2,714,552 in operating expenses at the Arch Street Yard and Shop Facility (Facility). The Metro-North Railroad (MNR) was billed $707,694 of the operating expenses for the incremental costs to operate the Facility for the installation of Positive Train Control on MNR trains. MNR used the Facility from September 1, 2016 to November 30, 2018.

We issued our initial audit report on December 8, 2017. We found that the Facility was constructed before it was needed for ESA and was never used as intended: for the initial acceptance and inspection of M-7 cars. Moreover, except for occasional use of the wheel truing machine to round off flat spots on wheels, the Facility was not used for periodic inspections or repairs by LIRR’s Maintenance of Equipment Department. Instead, since its completion, the Facility was vacant for over 3½ years, leased to the M-7 vendor to make warranty repairs, and licensed twice – once as a parking lot to accommodate a tenant displaced from an MTA project, and once to a contractor to perform modifications on MNR rail cars.

Key Finding

LIRR officials did not address the problems we identified in the initial audit report. The one recommendation was not implemented.

Key Recommendation

Officials are given 30 days after the issuance of the follow-up review to provide information on any action planned to address the unresolved issues discussed in this review.