D Metropolitan Transportation Authority ‘Siete of NewYork “April 13,2018 VI Me. Richard H, Anderson President and CEO “Amtrak “60 Massachusetts Avenue NE ‘Washington, D.C. 20002-4285 Re: Support for the ast Side Access Project Dear Mr, Anderson: 1 am writing to advise you of the problems that the Metropolitan Transportation Authority (CMTA") has faced as a result of the failure of the National Railroad Passenger Corporation (Amirak”) to provide the resources needed to support the Fast Side Access Project ( “ESA” or ‘the “Project”). The ESA Project is providing the region with benefits similar to those of the Gateway project ~ redundancy for routing cross-river trafic for huge numbers of people and significant upgrades to service reliability. Nonetheless, Amtrak’s actions, which violate written agreements between the partes and basic principles of good faith, have seriously harmed the Project, causing extersive construction delays and triggering huge cost increases. As you know, the ESA Project includes massive and costly improvements to Amtrak's high priority facilites and infrastructure in the Harold Interlocking ~ the area in western Queens in ‘Which over 800 Amtzak, Long Island Rail Road (*LIRR”) and New Jersey Transit trains pass daily en route to and from Manhattan, More specifically, MTA is spending more than $1. billion to ‘upgrade Amirak’s long-neglected infrastructure at this key nexus of our regional transportation system. But although MTA is paying for that work, we need Amirak forces to perform certain construction work and to oversee our outside contractors where we are permitted to use them. ‘Since 2006, Amtrak and MTA, working through MTA Capital Construction (*MTACC") have ‘operated under a series of written contracts, pursuant to which Amirak pledged to use “proactive ‘and reasonable means to provide labor and services in the manner anticipated to be necessary 10 ‘support the work of the Project ...” Yet, Amtrak has not been reasonable or proactive in its ‘dealings with MTACC ot the Project. Rather than making good on its obligations to support the ESA Projec, including MTA’s costly and extensive improvements to AmUrak-owned facilities, “Amtrak has comsstently diverted available resouroes to other project, especialy its own projects, ‘and generally filed to engage with MTACC in good futh. ESA Project work is regularly MiaLanpiina at foad —MTABajensnd umes MIABue ConaryMe. Richard H, Anderson 3, 2018 ‘cancelled atthe last minute or cut short because Amtrak workers are unavailable or have to clock ‘out carly. In many other cases, planned work cannot be performed because Amirak has ‘unreasonably withheld properly scheduled track outages. Since arriving at MTA last summer, I have repeatedly raised Amiak’s failure to support the FSA. Project at regular meetings with Amtrak. But my suggestions about how Amirak could meet the Project’s needs were ignored — at least until our March 15, 2018 meeting, where you acknowledged the problem and expressed a willingness to begin to addres it. The harm that Amtrak’s conduct has caused to the Project is significant. As mentioned above, Amtrak's failure to comply with the terms of the agreements has caused extensive construction ‘delays and now has consumed much ofthe schedule contingeney supporting the current planned revenue service date of December 2022. Moreover, just since 2014, Amtrak-caused delays have cost the Project approximately $340 Million ~ again, on top of the $1.5 billion-plus MTA is investing in facilites owned and/or used by Amtrak. Amtrak's conduct seems especially irrational, since ~ as we have frequently discussed — completion of ESA is essential to allow full reconstruction of the Sandy-damaged East River Tunnels. And Amirak’s inability to support MTA’s scheduled work has also led to delays of significant portions of the separate Regional Investment work, which will add significant cost to that work as well ‘As MTACC redoubles its efforts to complete this Project by 2022, we need @ commitment from ‘Amirak to make the necessary resources, both manpower and outages, available to support our scheduled work. But the Project and the MTA cannot be expected to absorb the huge cost increases attributable to Amtrak's conduet. In light ofthe cost increases triggered to date by Amtrak's failure to provide necessary personnel and supervision, we believe that it is appropriate that Amtrak provide the remaining resources required for the completion of the ESA Project at no cost to the MTA. Further, we need Amtrak's future-going commitments to be supported by a system of financial penalties that will protect MTA against further cost creep. And with regard to the remaining Regional Investment construction work, Amtrak should cover the additional cost attributable to the fact thatthe work needs fo be performed later than as originally planned, and without the efficiency of doing it at the same time as the ESA Projet. ‘You have only recently joined Amirak and bear no responsibility for any ofthis. Nevertheless, you have conveyed to me and other MTA leaders that you want to do a better job of supporting the ESA Project. That’s a welcome change. But it shouldn't have taken until your arival. As mentioned above, the ESA Project is providing the region with benefits similar to those of the Gateway project ~ redundancy for routing huge cross-River passenger rail traffic and significant upgrades to reliability. We have also discussed how ESA is needed in order for Amtrak to complete repair and restoration of its damaged Fast River Tunnels. Going forward, we need ‘Amiak to give the East Side Access project a very diferent level of effort ~a level that reflects the magnitude ofthe capital investment MTA is making for Amitrak and that treats ESA as aritical AmarakMr. Richard H. Anderson ‘April 13, 2018 Page 3 | welcome the opportunity to discuss the details of ths proposed resolution with you in person ‘whether in New York, Washington or somewhere in between. Please let me know your avalabili so that we can schedule something soon. In the meantime, we of eourse must reserve all of MTA'S rights, claims and remedies. pa ce: Joseph Lhota, MTA Chairman earl ee cena William Wheeler, MTA Director of Special Project Development & Planning. William Goodrich, MTACC Exec. Vice President and St. Program Executive, ESA Project