Objective

To determine if the Department of Transportation (Department) has a written capital plan for highway facilities for the traveling public, and whether the capital projects are properly planned and implemented. The audit covered projects on the Department’s plan between January 1, 2014 and May 19, 2017, and subsequent work completed by the Department through May 22, 2018.

About the Program

It is the mission of the Department to ensure its customers – those who live, work, and travel in New York State – have a safe, efficient, balanced, and environmentally sound transportation system. To help accomplish this mission, the Department plans and implements capital projects for its transportation system. Main Office guidance to the 11 Regional Offices reflects the Department’s Four Guiding Principles – Preservation First, Maximize Return on Investment, Make It Sustainable, and System Not Projects – with Safety being the overarching theme for all of the principles. The capital program includes projects to construct and improve Rest Areas located on interstate highways. The Rest Area Plan, last issued in July 1998, is the Department’s comprehensive Statewide Plan for Highway Rest Areas. Rest Areas are defined as facilities that: exist on interstate highways; are built to American Association of State Highway and Transportation Officials (AASHTO) standards; are no more than 20 years old; and are open and staffed 24 hours a day 365 days a year and, at a minimum, provide certain services. The Rest Area Plan supports providing Welcome Centers located within 20 minutes of key entry points to the State or within tourist regions for providing information to travelers. The Department operates and maintains 36 Rest Areas, of which 27 are more than 20 years old, and 2 recently opened Welcome Centers. During our audit scope, the Department managed 52 capital projects related to Rest Areas and 21 projects related to Welcome Centers totaling about $333 million. Subsequent to our audit fieldwork, several Welcome Centers were opened in fall 2018. Three of them (Western, Capital Region, and Mohawk) are on Interstate 87 (New York State Thruway), and the Adirondack Welcome Center is on the Northway and funded through the Market NY program that promotes tourism.

Key Findings

• The Department did not follow its own policies and procedures for capital project planning and implementation for Welcome Centers and Rest Areas, prioritizing Welcome Centers and Rest Areas ahead of other projects.
• The Department lacks policies and procedures related to the recording and substantiating of deleted, deferred, and withdrawn capital projects.
• The Department incurred cost overruns of more than $8.8 million and needlessly spent approximately $4.0 million due to poor planning for one Rest Area and four Welcome Center capital projects.
• Although the Department has a draft document (from December 2016) for the Welcome Center program establishing program goals and objectives, it did not provide detailed plans (amenities, parking, vendor location, utilities) for individual completed Welcome Centers or those under development.
• The Department is not in compliance with AASHTO Rest Area spacing standards on Interstates 81 and 495.
• The Department did not have a Memorandum of Understanding with any State or local agency occupying space in the Department’s Rest Areas or Welcome Centers.

Key Recommendations

• Follow the capital plan and document the reasons for any deviations from the plan.
• Strengthen planning for Rest Areas and Welcome Centers by following Department policies and procedures related to capital project planning and implementation.
• Develop and implement detailed policies and procedures regarding the processing of deleted, deferred, and withdrawn projects.
• Create and maintain a transparent environment that allows for the examination of the decision-making process and use of public resources in a State government agency.
• Update planning guidance including the Department’s Rest Area Plan and Interstate 87 corridor plan, both of which were last issued in 1998.
• Identify solutions to bring the Interstate 81 corridor and Interstate 495 in compliance with AASHTO standards.
• Maintain current Rest Area Plans and Rest Area corridor plans.