Special Committee to Conduct ‘Comprehensive Review’ of Port Authority

The chairman, vice chairman and two commissioners of the Port Authority of New York and New Jersey will comprise a special committee charged with reviewing the agency’s “past and current governance, management and financial practices” in an effort to lower costs and increase efficiency, Port Authority officials said.

The committee, which includes Port Authority chairman David Samson, along with vice chairman Scott Rechler and commissioners Jeffrey Lynford and William “Pat” Schuber, was formed in response to direction provided by New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo in light of recent toll increases on Hudson River crossings and PATH fare increases.

“The Board of Commissioners, at the direction of our Governors, is committed to sharpening its financial review and to initiating sustainable change at the Authority to ensure that it continues to meet its responsibilities of infrastructure investment, repair, replacement and maintenance of our facilities, and provision of security, while carrying out its historic mission of economic growth,’’ Samson said in a statement. “In addition to reviewing capital project spending and operating costs for organizational effectiveness, we will consider more creative funding approaches to priority projects.”

In a letter to the two governors in mid-September Samson outlined the steps the Port Authority is taking, including the following, according to Port Authority officials:

• Analyzing the agency’s 10-year capital plan, with an emphasis on reducing the cost of non-revenue-producing projects, reprioritizing projects and determining the most effective way to finance them.
• Reviewing the Port Authority’s capital projects and spending over the past 10 years, specifically addressing the “cost escalation” projects such as the World Trade Center site.
• Evaluating potential alternative revenue and capital sources to “minimize the impact on New York and New Jersey residents and businesses.”
• Reviewing “top-to-bottom” the agency’s organizational structure and effectiveness, including staffing, compensation, benefits and financial management.
• Developing a request for proposals for external auditors for 2012.