As it goes through a series of troubles and disappointments, one question stands out unanswered. Who is responsible for the Tram? As former RIOC board member Margie Smith points out, Roosevelt Islanders foot the operating deficits but have little to say about it. Operations, costs and even safety don’t come under resident review.
by David Stone
The Roosevelt Island Daily News
In a March board meeting, RIOC Deputy Chief Counsel Gerrald Ellis reported that contract renewal conversations had begun with Roosevelt Island Tram operator, Leitner-POMA. Alarms should have gone off. Leitner-POMA is enmeshed in so many unresolved controversies they should in no way be considered as a sole source.
The latest, involving basic safety, abruptly turned a little worse, this week.
Who Is Responsible for the Tram?
Ultimately, that’s RIOC, but reality tells another story. Even as Tram cabin swinging and swaying incidents increased and the NYS Department of Labor was called in for oversight, RIOC kept its distance. And while DOL’s intervention spotlighted serious flaws in Leitner-POMA’s operations, RIOC remained steadfast in support.
We’ll look at costs associated with the Tram below, but for now, let’s note the obvious.
- With Leitner-POMA unable to diagnose causes for cabin-swinging incidents, DOL stepped in, prompting the installation of dampers which, at least, reduce the physical effect. Cabin-swinging, however, continues, if dampened.
- Unable to persuade its operators to exercise the simplest warnings or announcements upon launch as they did in the past, DOL talked Leitner-POMA into posting “Hold On” signs above the doors. Operators remain almost always silent. That includes concerns about tourists hogging bench seating supposedly set aside for physically challenged riders.
The scary part is that neither of these initiatives is exceptional. They should be SOP for experienced Tram operators but, in this case, were not. Now, add in the inability to figure out why cabins start swinging, plus what amounts to denial that a problem exists, and what have you got?
And then, it got worse…
After The Daily reported on fresh incidents of cabin swaying – one video showed a cabin out of control, rocking just feet above Second Avenue Traffic – NYS Assembly Member Rebecca Seawright, who brought DOL in in the first place, engaged again.
A week ago, DOL posted these signs at both Tram locations.
Although The Daily was on hiatus at the time, with an assist from Seawright’s Chief of Staff Courtney Ferrissey, we shared them on our social media accounts.
We don’t know DOL’s thought process, but it’s clear that they were unsatisfied with the completeness of information they got from RIOC and/or Leitner-POMA.
Returned to New York yesterday, we visited the Roosevelt Island Tram Plaza and found not a single DOL poster in place. We checked in with Ferrissey.
DOL told her, she said, that “they had been torn down.”
We are trying to find out who tore the passenger-focused signs down and why. We will explore this violation further with RIOC.
Tram Costs and Income
Who is responsible for the Tram costs and income? Again, this is RIOC and a point of significant failure.
Little known to most Roosevelt Islanders are two simple facts:
- The Roosevelt Island Tram loses money, lots of it, even with the tourist influx and sometimes because of it.
- Roosevelt Islanders pay for the monthly deficits, even while losing access of the Tram for everyday uses as the system was intended.
By far, the biggest factors in the losses are deals RIOC signed with Leitner-POMA and the MTA. Both seem exercises in either incompetence or profound wimpiness.
The Leitner-POMA deal…
Although RIOC once managed Tram operations with its own personnel, its board in its wisdom determined that farming it out was better. A contract was signed with Leitner-POMA, and in its current form, it pays the contractor over $5 million every year.
That’s enough to guarantee losing money with the only outstanding question being “How much?”
But then, you add in escalating insurance costs of at least another $1 million and charges for physical repairs like track ropes.
None of this seems to come with performance metrics or traffic management. The resulting losers are residents who pay for the losses as part of the compulsory RIOC Tax. Contrary to common belief, New York State does not fund RIOC. The money comes almost exclusively from our two-mile strip of land in the East River.
The MTA fiasco…
When RIOC originally signed a deal with the MTA that brought MetroCards to the Tram, the partners shared in the $2.00 fare, with RIOC getting the lion’s share. Here, again, RIOC surrendered its own established system of tokens, but in this instance, it was a great idea.
Residents were suddenly free to transfer between both systems without additional cost or the need for tokens. It was great, but there was a flaw that RIOC didn’t notice until years later.
The MTA contract had no escalation clause. So, as fares went up and the MTA sucked in more money, they partied like it was 2005. That is, RIOC’s income never went up because the MTA kept the entire increase.
At this point, that means the big boys downtown rake in at least $100,000 every month that should go to Roosevelt Island. And after years of alleged negotiations aimed at ending the thefts, RIOC meekly surrendered to no revenue change at all when accepting the OMNY upgrade.
Thanks to intrepid researcher Zack Ephron, we now have a copy of the deal signed by RIOC President/CEO Shelton Haynes. Even without the revenue failure, here’s a chunk of what Haynes agreed to:
Section 17.10 (Media and Public Interactions) is amended by replacing it in its entirety with the following language:
OMNY Memo of Understanding (MOU), dated August 16th, 2023.
“To the fullest extent permitted by law, Subscriber shall not publicize, issue, or disclose any release, statement, or other information relating to this Agreement or the OMNY Platform (including anything concerning the OMNY Subscription Work or containing MTA Trademark Assets) in any manner, including in advertisements, publications, press releases, articles, websites, social media, or speeches (collectively, “Public-Facing Messages”), without the MTA’s prior written approval. Notwithstanding the foregoing, the Subscriber may request MTA pre-approval for certain recurring Public-Facing Message templates; in which event, subsequent MTA approval is not required when such MTA-approved Public-Facing Message template is used. As a clarifying example, Subscriber’s recurring service announcement template that would constitute a Public-Facing Message could be pre-approved by the MTA upon Subscriber request. For the avoidance of doubt, (i) press release templates do not qualify for MTA pre-approval and must be submitted to the MTA prior to release; and (ii) Public-Facing Messages targeting consumers outside of the United States is strictly prohibited.”
In other words, RIOC agreed not to talk with anyone about anything without the MTA’s prior approval. It fit right in with the bunker mode in force at the time. The MOU expires in August 2024.
In getting OMNY readers installed, RIOC coughed up tens of thousand in start up fees and, in return, got nothing. Sure, OMNY readers eased some travel for residents but added nothing more than MetroCards already provided.
But hey, it made things much better for tourists, taking away the one advantage residents – who pay all the bills – had with MetroCards already in hand.
Finally, Responsible for the Tram…
Despite the MYA’s success in beating up the local weakling to the tune of over $100,000 ever month and Leitner-POMA’s overpaid, ineffective contract, the Roosevelt Island Tram is still RIOC’s baby.
Of course, RIOC’s currently a shambles with interim management working hard at longstanding repairs in every aspect but without any assurance of what comes next. The Return of Gretchen and Shelton? Who knows?
The governor’s hand, better known as the Executive Chamber, has its hands in the Roosevelt Island stew all the time, but who are they serving? There used to be a name for officials who controlled with out contributing, but it’s not enough anymore.
We need a new word… but we can’t come up with one without violating the standards maintained for family readership.
