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Navigant Phase 2 and Rothschild Reports

Navigant Phase 2 and Rothschild Reports

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Published by Celeste Katz

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Published by: Celeste Katz on Sep 19, 2012
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09/19/2012

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Phase
 
II
 
Report
 
Presented
 
to:
 
The
 
Special
 
Committee
 
of
 
the
 
Board
 
of
 
Commissioners
 
of
 
September
 
2012
 
Presented
 
 by:
 
 
Phase
 
II
 
Report
 
to
 
the
 
Special
 
Committee
 
of
 
the
 
Port
 
Authority
 
of
 
New
 
York
 
and
 
New
 
Jersey
 
1
Table
 
of
 
Contents
 
I.
 
EXECUTIVE
 
SUMMARY
 
..............................................................................................
 
5
 
II.
 
OVERVIEW
 
....................................................................................................................
 
11
 
B
ACKGROUND
 
.........................................................................................................................................................
 
11
 
C
URRENT
 
L
ANDSCAPE
............................................................................................................................................
 
13
 
A
CHIEVEMENTS
 
AND
 
I
NITIATIVES
 
U
NDERWAY
 
.....................................................................................................
 
16
 
K
EY
 
O
PERATING
 
P
RINCIPLES
 
.................................................................................................................................
 
17
 
III.
 
APPROACH
 
&
 
METHODOLOGY
 
...........................................................................
 
19
 
O
RGANIZATIONAL
 
D
ESIGN
 
&
 
E
FFECTIVENESS
 
......................................................................................................
 
19
 
O
PERATIONAL
 
A
SSESSMENT
 
..................................................................................................................................
 
19
 
WTC
 
C
OST
 
R
EVIEW
 
................................................................................................................................................
 
19
 
C
APITAL
 
P
LANNING
 
A
SSESSMENT
 
.........................................................................................................................
 
20
 
IV.
 
CORPORATE
 
GOVERNANCE
 
.................................................................................
 
21
 
O
VERVIEW
 
...............................................................................................................................................................
 
21
 
C
URRENT
 
C
OMMITTEE
 
C
ONFIGURATION
 
..............................................................................................................
 
22
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
23
 
V.
 
ORGANIZATIONAL
 
DESIGN
 
&
 
EFFECTIVENESS
 
...........................................
 
26
 
C
URRENT
 
O
RGANIZATIONAL
 
S
TRUCTURE
 
O
VERVIEW
 
..........................................................................................
 
26
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
28
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
29
 
VI.
 
LINE
 
DEPARTMENT
 
REVIEW
 
 
AVIATION
 
.......................................................
 
35
 
O
VERVIEW
 
...............................................................................................................................................................
 
35
 
F
INANCIAL
 
R
ESULTS
 
...............................................................................................................................................
 
36
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
38
 
R
EVENUE
 
E
NHANCEMENT
 
O
PPORTUNITIES
 
..........................................................................................................
 
39
 
C
OST
 
C
ONTAINMENT
 
O
PPORTUNITIES
 
..................................................................................................................
 
41
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
41
 
VII.
 
LINE
 
DEPARTMENT
 
REVIEW
 
 
TUNNELS,
 
BRIDGES
 
&
 
TERMINALS
 
.......
 
42
 
O
VERVIEW
 
...............................................................................................................................................................
 
42
 
F
INANCIAL
 
R
ESULTS
 
...............................................................................................................................................
 
44
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
45
 
N
ON
T
OLL
/N
ON
F
ARE
 
R
EVENUE
 
O
PPORTUNITIES
 
...............................................................................................
 
47
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
49
 
VIII.
 
LINE
 
DEPARTMENT
 
REVIEW
 
 
PATH
 
..................................................................
 
50
 
O
VERVIEW
 
...............................................................................................................................................................
 
50
 
F
INANCIAL
 
R
ESULTS
 
...............................................................................................................................................
 
51
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
53
 
N
ON
F
ARE
 
R
EVENUE
 
E
NHANCEMENT
 
O
PPORTUNITIES
 
.......................................................................................
 
54
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
55
 
IX.
 
LINE
 
DEPARTMENT
 
REVIEW
 
 
PORT
 
COMMERCE
 
........................................
 
56
 
O
VERVIEW
 
...............................................................................................................................................................
 
56
 
F
INANCIAL
 
R
ESULTS
 
...............................................................................................................................................
 
57
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
58
 
 
Phase
 
II
 
Report
 
to
 
the
 
Special
 
Committee
 
of
 
the
 
Port
 
Authority
 
of
 
New
 
York
 
and
 
New
 
Jersey
 
2
R
EVENUE
 
E
NHANCEMENT
 
O
PPORTUNITIES
 
..........................................................................................................
 
59
 
C
OST
 
C
ONTAINMENT
 
O
PPORTUNITIES
 
..................................................................................................................
 
60
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
61
 
X.
 
WORLD
 
TRADE
 
CENTER
 
PROGRAM
 
...................................................................
 
62
 
O
VERVIEW
 
...............................................................................................................................................................
 
62
 
S
UMMARY
 
OF
 
K
EY
 
F
INDINGS
 
..................................................................................................................................
 
64
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
65
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
68
 
XI.
 
SHARED
 
SERVICE
 
REVIEW
 
 
PROCUREMENT
 
.................................................
 
70
 
O
VERVIEW
 
...............................................................................................................................................................
 
70
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
70
 
C
OST
 
C
ONTAINMENT
 
O
PPORTUNITIES
 
..................................................................................................................
 
73
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
74
 
XII.
 
SHARED
 
SERVICE
 
REVIEW
 
 
ENGINEERING
 
...................................................
 
76
 
O
VERVIEW
 
...............................................................................................................................................................
 
76
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
76
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
79
 
XIII.
 
SHARED
 
SERVICE
 
REVIEW
 
 
LAW
 
.......................................................................
 
80
 
O
VERVIEW
 
...............................................................................................................................................................
 
80
 
O
BSERVATIONS
 
AND
 
F
INDINGS
 
..............................................................................................................................
 
81
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
83
 
XIV.
 
SHARED
 
SERVICE
 
REVIEW
 
 
REAL
 
ESTATE
 
&
 
DEVELOPMENT
 
................
 
84
 
O
VERVIEW
 
...............................................................................................................................................................
 
84
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
86
 
R
EVENUE
 
E
NHANCEMENT
 
O
PPORTUNITIES
 
..........................................................................................................
 
86
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
87
 
XV.
 
CAPITAL
 
PLAN
 
ASSESSMENT
 
&
 
FORECAST
 
REVIEW
 
...................................
 
89
 
O
VERVIEW
 
...............................................................................................................................................................
 
89
 
S
UMMARY
 
OF
 
K
EY
 
F
INDINGS
 
..................................................................................................................................
 
91
 
O
BSERVATIONS
 
&
 
F
INDINGS
 
..................................................................................................................................
 
91
 
R
ECOMMENDATIONS
 
..............................................................................................................................................
 
98
 
XVI.
 
IMPLEMENTATION
 
PLAN
 
&
 
NEXT
 
STEPS
 
.........................................................
 
99
 
XVII.
 
APPENDIX
 
 
A:
 
KEY
 
INITIATIVES
 
IMPLEMENTATION
 
PLAN
 
..................
 
100
 
XVIII.
 
APPENDIX
 
 
B:
 
PROCUREMENT
 
BUYING
 
GROUPS
 
(DEFINED)
 
................
 
105
 
XIX.
 
APPENDIX
 
 
C:
 
PROCUREMENT
 
DEPT.
 
RECOMMENDATIONS
 
...............
 
107
 
XX.
 
APPENDIX
 
 
D:
 
ACHIEVEMENTS
 
&
 
INITIATIVES
 
UNDERWAY
 
...............
 
114
 
XXI.
 
APPENDIX
 
 
E:
 
REPORT
 
QUALIFICATIONS
 
&
 
DISCLAIMER
 
.....................
 
117
 

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