Department of Transportation: Welcome Center and Rest Area

Department of Transportation Welcome Center and Rest Area Planning and Implementation

Report 2017-S-25 June 2019

OFFICE OF THE NEW YORK STATE COMPTROLLER Thomas P. DiNapoli, State Comptroller Division of State Government Accountability Audit Highlights

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 WUDYHOLQ1HZ

Report 2017-S-25 1 $OWKRXJKWKH'HSDUWPHQWKDVDGUDIWGRFXPHQW IURP'HFHPEHU IRUWKH:HOFRPH &HQWHUSURJUDPHVWDEOLVKLQJSURJUDPJRDOVDQGREMHFWLYHVLWGLGQRWSURYLGHGHWDLOHG SODQV DPHQLWLHVSDUNLQJYHQGRUORFDWLRQXWLOLWLHV IRULQGLYLGXDOFRPSOHWHG:HOFRPH &HQWHUVRUWKRVHXQGHUGHYHORSPHQW 7KH'HSDUWPHQWLVQRWLQFRPSOLDQFHZLWK$$6+725HVW$UHDVSDFLQJVWDQGDUGVRQ Interstates 81 and 495. The Department did not have a Memorandum of Understanding with any State or local DJHQF\RFFXS\LQJVSDFHLQWKH'HSDUWPHQW¶V5HVW$UHDVRU:HOFRPH&HQWHUV Key Recommendations )ROORZWKHFDSLWDOSODQDQGGRFXPHQWWKHUHDVRQVIRUDQ\GHYLDWLRQVIURPWKHSODQ 6WUHQJWKHQSODQQLQJIRU5HVW$UHDVDQG:HOFRPH&HQWHUVE\IROORZLQJ'HSDUWPHQW policies and procedures related to capital project planning and implementation. Develop and implement detailed policies and procedures regarding the processing of deleted, deferred, and withdrawn projects. &UHDWHDQGPDLQWDLQDWUDQVSDUHQWHQYLURQPHQWWKDWDOORZVIRUWKHH[DPLQDWLRQRIWKH decision-making process and use of public resources in a State government agency. 8SGDWHSODQQLQJJXLGDQFHLQFOXGLQJWKH'HSDUWPHQW¶V5HVW$UHD3ODQDQG,QWHUVWDWH corridor plan, both of which were last issued in 1998. Identify solutions to bring the Interstate 81 corridor and Interstate 495 in compliance with $$6+72VWDQGDUGV 0DLQWDLQFXUUHQW5HVW$UHD3ODQVDQG5HVW$UHDFRUULGRUSODQV

Report 2017-S-25 2 2I¿FHRIWKH1HZ

June 20, 2019

0V0DULH7KHUHVH'RPLQJXH] $FWLQJ&RPPLVVLRQHU New York State Department of Transportation :ROI5RDG $OEDQ\1<

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7KH2I¿FHRIWKH6WDWH&RPSWUROOHULVFRPPLWWHGWRKHOSLQJ6WDWHDJHQFLHVSXEOLFDXWKRULWLHV DQGORFDOJRYHUQPHQWDJHQFLHVPDQDJHWKHLUUHVRXUFHVHI¿FLHQWO\DQGHIIHFWLYHO\%\ GRLQJVRLWSURYLGHVDFFRXQWDELOLW\IRUWD[GROODUVVSHQWWRVXSSRUWJRYHUQPHQWRSHUDWLRQV 7KH&RPSWUROOHURYHUVHHVWKH¿VFDODIIDLUVRI6WDWHDJHQFLHVSXEOLFDXWKRULWLHVDQGORFDO government agencies, as well as their compliance with relevant statutes and their observance RIJRRGEXVLQHVVSUDFWLFHV7KLV¿VFDORYHUVLJKWLVDFFRPSOLVKHGLQSDUWWKURXJKRXUDXGLWV ZKLFKLGHQWLI\RSSRUWXQLWLHVIRULPSURYLQJRSHUDWLRQV$XGLWVFDQDOVRLGHQWLI\VWUDWHJLHVIRU reducing costs and strengthening controls that are intended to safeguard assets. )ROORZLQJLVDUHSRUWRIRXUDXGLWHQWLWOHGWelcome Center and Rest Area Planning and Implementation7KHDXGLWZDVSHUIRUPHGSXUVXDQWWRWKH6WDWH&RPSWUROOHU¶VDXWKRULW\DV VHWIRUWKLQ$UWLFOH96HFWLRQRIWKH6WDWH&RQVWLWXWLRQDQG$UWLFOH,,6HFWLRQRIWKH6WDWH )LQDQFH/DZ This audit’s results and recommendations are resources for you to use in effectively managing \RXURSHUDWLRQVDQGLQPHHWLQJWKHH[SHFWDWLRQVRIWD[SD\HUV,I\RXKDYHDQ\TXHVWLRQVDERXW this report, please feel free to contact us. 5HVSHFWIXOO\VXEPLWWHG

Division of State Government Accountability

Report 2017-S-25 3 Contents

Glossary of Terms 5 %DFNJURXQG 6 Audit Findings and Recommendations 8 :HOFRPH&HQWHU3ODQQLQJ 8 5HVW$UHD3ODQQLQJ 10 :HOFRPH&HQWHU&DSLWDO3URMHFWV 13 5HVW$UHD&DSLWDO3URMHFWV 17 5HFRPPHQGDWLRQV 19 Audit Scope, Objectives, and Methodology 21 Statutory Requirements 23 $XWKRULW\ 23 5HSRUWLQJ5HTXLUHPHQWV 23 Agency Comments and State Comptroller’s Comments 25 Contributors to Report 32

Report 2017-S-25 4 Glossary of Terms

Abbreviation Description Identifier $$6+72 $PHULFDQ$VVRFLDWLRQRI6WDWH+LJKZD\ Standards Setting and Transportation Officials Organization Department Department of Transportation Auditee (6'& (PSLUH6WDWH'HYHORSPHQW&RUSRUDWLRQ Public Benefit Corporation ,33 ,QLWLDO3URMHFW3URSRVDO Key Term MOU Memorandum of Understanding Key Term 085. 0DQXDOIRU8QLIRUP5HFRUG.HHSLQJ Key Term 3ODQ 5HVW$UHD3ODQ Key Term 3ROLF\ 5HVW$UHD3ROLF\ Key Term 330,6 Instructions 3URJUDPDQG3URMHFW0DQDJHPHQW Key Term Information System User Instructions 34$5 3URMHFW4XDOLW\$VVXUDQFH5HSRUW Key Term 366 3URMHFW6FKHGXOLQJ6\VWHP Key Term

Report 2017-S-25 5 %DFNJURXQG

It is the mission of the Department of Transportation (Department) to ensure its customers – those who live, work, and travel in New York State – have a VDIHHI¿FLHQWEDODQFHGDQGHQYLURQPHQWDOO\VRXQGWUDQVSRUWDWLRQV\VWHP In order to accomplish this mission, the Department plans and implements FDSLWDOSURMHFWVIRUWKH6WDWH¶VWUDQVSRUWDWLRQV\VWHP*HQHUDOO\DSURMHFW HYROYHVIURPDQLGHQWL¿HGWUDQVSRUWDWLRQSUREOHPRUQHHG7KLVSURFHVV EHJLQVZKHQWKH'HSDUWPHQW¶V0DLQ2I¿FHVHQGV3URJUDP8SGDWH6FHQDULR 'HYHORSPHQW,QVWUXFWLRQVWRWKH5HJLRQDO2I¿FHVWRGHYHORSD¿YH\HDU capital plan. The instructions provide information needed to complete a listing RISURMHFWVIURPHDFKUHJLRQWKDWDGGUHVVSODQQLQJJRDOV*XLGDQFHVHQW WRWKH5HJLRQDO2I¿FHVUHÀHFWVWKH'HSDUWPHQW¶V)RXU*XLGLQJ3ULQFLSOHV± 3UHVHUYDWLRQ)LUVW0D[LPL]H5HWXUQRQ,QYHVWPHQW0DNH,W6XVWDLQDEOHDQG 6\VWHP1RW3URMHFWV±ZLWK6DIHW\EHLQJWKHRYHUDUFKLQJWKHPHIRUDOORIWKH SULQFLSOHV)RUWKHSHULRG-DQXDU\WR0D\WKH'HSDUWPHQW had 7,449 capital projects totaling $68.1 billion. Of those 7,449 projects, 73 SURMHFWVWRWDOLQJDERXWPLOOLRQZHUHUHODWHGWR:HOFRPH&HQWHUV SURMHFWV DQG5HVW$UHDV SURMHFWV 7KH'HSDUWPHQW¶V3URMHFW'HYHORSPHQW0DQXDOUHÀHFWVWKHSROLFLHVDQG procedures for projects progressing from project scoping to contract award. 7KH,QLWLDO3URMHFW3URSRVDO ,33 LVWKHLQLWLDOSODQQLQJGRFXPHQWXVHGWR VHOHFWSURMHFWVEDVHGRQSODQQLQJJRDOV7KH,33LQFOXGHVDGHVFULSWLRQRI the problem, project objectives, preliminary schedule, and cost estimates. 2QFHWKH,33LVDSSURYHGWKHSURMHFWLVWKHQDGYDQFHGWRWKH3URMHFW6FRSLQJ 6WDJHDQGWKHQWRWKH'HVLJQ6WDJH7KH¿QDOSKDVHRIWKH'HVLJQ6WDJH FRQVLVWVRIWKHSUHSDUDWLRQRIWKH)LQDO3ODQV6SHFL¿FDWLRQV (VWLPDWHV )LQDOO\DSULYDWHFRQWUDFWRULVUHWDLQHGWKURXJKDFRPSHWLWLYHELGGLQJSURFHVV and the project is constructed with oversight by the Department or another State agency. )HGHUDOFRGHDOORZVWKH'HSDUWPHQWWRFRQVWUXFWRSHUDWHDQGPDLQWDLQ 5HVW$UHDVDORQJWKHLQWHUVWDWHKLJKZD\V\VWHP7KHSULPDU\EHQH¿WVRI these facilities include reduced driver fatigue, improved safety, and refuge IURPDGYHUVHGULYLQJFRQGLWLRQV5HVW$UHDVDUHGH¿QHGDVIDFLOLWLHVWKDW H[LVWRQLQWHUVWDWHKLJKZD\VDQGRWKHUFRQWUROOHGDFFHVVIUHHZD\VDUH EXLOWWR$PHULFDQ$VVRFLDWLRQRI6WDWH+LJKZD\DQG7UDQVSRUWDWLRQ2I¿FLDOV $$6+72 VWDQGDUGVDUHQRPRUHWKDQ\HDUVROGDQGDUHRSHQDQG staffed 24 hours a day 365 days a year and, at a minimum, provide certain services (clean, well-lit, and sanitary facilities, drinking fountains, gender- separated restrooms, vending machines, telephones, tourist information, and WUDVKUHFHSWDFOHV $$6+72JXLGHOLQHVLQGLFDWHWKDWWUDYHOHUVDUHZHOOVHUYHG LI5HVW$UHDVDUHORFDWHGDSSUR[LPDWHO\PLOHVDSDUWZKLFKUHSUHVHQWV DSSUR[LPDWHO\RQHKRXURIWUDYHOWLPHDWWKH6WDWHVSHHGOLPLW

Report 2017-S-25 6 7KH'HSDUWPHQW¶V5HVW$UHD3ODQ 3ODQ ODVWLVVXHG-XO\LVD FRPSUHKHQVLYH6WDWHZLGH3ODQIRU+LJKZD\5HVW$UHDV7KH3ODQDVVHVVHG HDFKIDFLOLW\¶VFXUUHQWFRQGLWLRQDQGIXWXUHQHHGVLQWKHFRQWH[WRIWKHUROH of transportation service in supporting the State’s tourism industry and DWWHPSWLQJWRSURYLGHVDIHWULSVIRUWUDYHOHUV$FFRUGLQJWRWKH3ODQVLQFHWKH PDMRULW\RIWKH5HVW$UHDVZHUHFRQVWUXFWHGLQWKHVDQGVPDQ\RI WKHPZLOOQHHGWREHUHSODFHGRUUHKDELOLWDWHG7KH3ODQVXSSRUWHGSURYLGLQJ :HOFRPH&HQWHUVORFDWHGZLWKLQPLQXWHVRINH\HQWU\SRLQWVRUZLWKLQ WRXULVWUHJLRQVIRUSURYLGLQJLQIRUPDWLRQWRWUDYHOHUV7KH3ODQLQJHQHUDODOVR LQFRUSRUDWHV$$6+72VWDQGDUGV 7KH'HSDUWPHQW¶V5HVW$UHD3ROLF\ 3ROLF\ VWDWHVWKDWWKH'HSDUWPHQWVKDOO provide, operate, maintain, and continuously improve a statewide system of TXDOLW\5HVW$UHDVDQGRWKHUUHODWHGQRQFRPPHUFLDOIDFLOLWLHVWKDWVXSSRUW WUDYHOUHODWHGVDIHW\FRPIRUWDQGFRQYHQLHQFHRIIHUDSSURSULDWHVHUYLFHVDQG LQIRUPDWLRQIRUDOOKLJKZD\XVHUVPHHWXVHUV¶QHHGVIRUVDIHFRQYHQLHQWDQG FOHDQIDFLOLWLHVDUHHQHUJ\HI¿FLHQWDQGHQYLURQPHQWDOO\VRXQGDQGSUHVHQW DSRVLWLYHLPDJHRIWKH6WDWHDQGWKH'HSDUWPHQW$FFRUGLQJWRWKH3ROLF\ IDFLOLWLHVWREHSURYLGHGLQFOXGH5HVW$UHDVJDWHZD\LQIRUPDWLRQFHQWHUV truck inspection areas, parking areas, and scenic overlooks. These facilities, ZKLFKH[LVWRQLQWHUVWDWHKLJKZD\VDQGRWKHUFRQWUROOHGDFFHVVIUHHZD\VDUH EXLOWWR$$6+72VWDQGDUGV5HVW$UHDVWKDWGRQRWPHHWWKHGHVLUHGPLQLPXP UHTXLUHPHQWVRUDUHLGHQWL¿HGE\WKH5HJLRQDO'LUHFWRUDVLQDGHTXDWHO\ serving the needs of the traveling public shall receive appropriate attention IRUUHFRQVWUXFWLRQLQWKHUHJLRQ¶VSHULRGLFFDSLWDOSODQXSGDWHV7KH5HJLRQDO 2I¿FHVZLOOPDLQWDLQ5HVW$UHDFRUULGRUSODQVWRGHWHUPLQHORQJWHUP UHTXLUHPHQWVDQGWRGH¿QHWKHUHVRXUFHVDQGIXQGLQJQHHGHGIRUWKHWLPHO\ LPSOHPHQWDWLRQRIWKHSURJUDP7KH3ROLF\VWDWHVWKDWLISRVVLEOHVSDFLQJ RI5HVW$UHDVVKRXOGSURYLGHWKHPRWRULVWZLWKUHVWURRPIDFLOLWLHVDWGULYLQJ WLPHLQWHUYDOVRIDSSUR[LPDWHO\RQHKRXUDORQJWKHKLJKZD\7KH3ROLF\ DORQJZLWKWKH+LJKZD\'HVLJQ0DQXDOVWDWHVWKDWDQ\6WDWHRUORFDODJHQF\ RFFXS\LQJVSDFHLQRQHRIWKH'HSDUWPHQW¶V5HVW$UHDVPXVWGRVRXQGHUD Memorandum of Understanding (MOU) or other agreement as determined by the Department. 6XEVHTXHQWWRRXUDXGLW¿HOGZRUNVHYHUDO:HOFRPH&HQWHUVZHUHRSHQHG LQIDOO7KUHHRIWKHP :HVWHUQ&DSLWDO5HJLRQDQG0RKDZN DUHRQ ,QWHUVWDWH 1HZ

Report 2017-S-25 7 Audit Findings and Recommendations

7KH'HSDUWPHQWKDVQRWDGHTXDWHO\SODQQHGDQGLPSOHPHQWHG:HOFRPH &HQWHUDQG5HVW$UHDFDSLWDOSURMHFWV7KH:HOFRPH&HQWHUSURJUDP JRDOVDQGREMHFWLYHVRQO\H[LVWLQGUDIWIRUPDQGZHUHGHYHORSHGDIWHUWKH FRPSOHWLRQRIWKH/RQJ,VODQG:HOFRPH&HQWHU)XUWKHUWKH'HSDUWPHQW GLGQRWSURYLGHVXEVWDQWLYHSODQVIRUFRPSOHWHG:HOFRPH&HQWHUVRUWKRVH XQGHUGHYHORSPHQWWRVXSSRUWLWVGHFLVLRQPDNLQJ$OVRWKH'HSDUWPHQWGLG not adhere to its own policies and procedures for highway capital projects, ZKLFKUHVXOWHGLQPLOOLRQLQ:HOFRPH&HQWHUFRVWRYHUUXQVDEDQGRQHG :HOFRPH&HQWHUSURMHFWVDQG5HVW$UHDVWKDWDUHRXWRIFRPSOLDQFHZLWK $$6+72DQGLWVRZQ5HVW$UHDVSDFLQJVWDQGDUGV%\QRWSURYLGLQJDVDIH comfortable, and convenient place for motorists to rest, the Department has not achieved its overarching guiding principle for capital project planning – safety. Welcome Center Planning 7KH'HSDUWPHQWSURYLGHGDGUDIWGRFXPHQWIRUWKH:HOFRPH&HQWHUSURJUDP GHYHORSHGLQ'HFHPEHUDIWHUWKHFRPSOHWLRQRIWKH/RQJ,VODQG :HOFRPH&HQWHUZKLFKHVWDEOLVKHGWKHSURJUDP¶VJRDOVDQGREMHFWLYHV 7KH'HSDUWPHQWGLGQRWSURYLGHGHWDLOHGSODQVIRUFRPSOHWHG:HOFRPH &HQWHUVRUWKRVHXQGHUGHYHORSPHQW$OVRWKH'HSDUWPHQWRI¿FLDOVGLGQRW provide documentation to support that they adhered to their own policies and procedures for the effective planning of facilities. Initially, we were told WKH:HOFRPH&HQWHUSURJUDPEHJDQLQZKHQWKH'HSDUWPHQWZDV SURYLGHGIXQGLQJE\WKH1HZ

Report 2017-S-25 8 ±WRLGHQWLI\DPHQLWLHVWKH\FRXOGSURYLGHWRWKH:HOFRPH&HQWHUV:HZHUH DOVRWROGWKDWWKH:HOFRPH&HQWHUVDUHSDUWRIDVWDWHZLGHLQLWLDWLYHVHSDUDWH IURPWKH'HSDUWPHQW¶VFDSLWDOSURJUDP+RZHYHUZHIRXQGIRXU:HOFRPH &HQWHUVOLVWHGRQWKH'HSDUWPHQW¶V¿YH\HDUFDSLWDOSODQ /RQJ ,VODQG:HVWERXQG PLOOLRQ /RQJ,VODQG(DVWERXQG PLOOLRQ +XGVRQ 9DOOH\ PLOOLRQ DQG&DSLWDO'LVWULFW PLOOLRQ :HUHTXHVWHGSODQQLQJ GRFXPHQWVUHJDUGLQJWKHVHOHFWLRQRIWKH¿YH:HOFRPH&HQWHUORFDWLRQV WKHDJHQFLHV¶SDUWLFLSDWLRQLQWKHGHYHORSPHQWRI:HOFRPH&HQWHUVDQGWKH statewide initiative. The only documents the Department provided regarding :HOFRPH&HQWHUSODQQLQJZHUHGUDIWSURJUDPUHTXLUHPHQWVLQWHUQDOHPDLOVRI 7KH7DVWH1<([SHULHQFH ZKHUHHDFKVLWHLVORFDOL]HGDQGRIIHUV1HZ

Report 2017-S-25 9 Rest Area Planning The Department has not adequately planned for the rehabilitation or UHSODFHPHQWRI5HVW$UHDVRQWKH6WDWH¶VLQWHUVWDWHKLJKZD\V\VWHP $FFRUGLQJWRWKH'HSDUWPHQW¶V5HVW$UHD1HHGV$VVHVVPHQWZLWKWKH H[FHSWLRQRIWKH/RQJ,VODQG:HOFRPH&HQWHUWKHUHKDVQRWEHHQDQHZ5HVW $UHDFRQVWUXFWHGVLQFH2IWKH5HVW$UHDVOLVWHGRQWKHDVVHVVPHQW ZHUHRUPRUH\HDUVROGZHUHEHWZHHQDQG\HDUVROGZHUH EHWZHHQDQG\HDUVROGZDVOHVVWKDQ\HDUVROGDQGZDVRI XQNQRZQDJH$FFRUGLQJWRWKH'HSDUWPHQW¶V+LJKZD\'HVLJQ0DQXDOD5HVW $UHDSURMHFWVKRXOGEHFRQVLGHUHGIRUWKHIDFLOLWLHVWKDWDUHRUPRUH \HDUVROG)XUWKHUWKH'HSDUWPHQW¶V3ODQDQG3ROLF\IRU5HVW$UHDVERWKRI ZKLFKLQFRUSRUDWH$$6+72VWDQGDUGVVWDWHD5HVW$UHDVKRXOGEHQRPRUH than 20 years old. :HIRXQGD'HSDUWPHQWLVVXHG3URJUDP8SGDWH*XLGDQFHDQG,QVWUXFWLRQV GRFXPHQWGDWHG$XJXVW7ZRDUHDVRIIRFXVZLWKLQWKHLQVWUXFWLRQV LQFOXGH:HOFRPH&HQWHUVDQGWKHIXQFWLRQDOLW\RIWKH5HVW$UHDV\VWHP,Q -DQXDU\ZHDVNHG'HSDUWPHQWRI¿FLDOVLIWKHLQVWUXFWLRQVZHUHVWLOO YDOLGDVWKH\FRYHU6WDWH)LVFDO

Report 2017-S-25 10 remain open and operating until they are reconstructed or closed. :HYLVLWHGRIWKH5HJLRQDO2I¿FHVWRGHWHUPLQHZKDWSODQQLQJWKH UHJLRQVSHUIRUPUHJDUGLQJ5HVW$UHDV:HGLGQRWYLVLW5HJLRQDVLW GRHVQRWKDYHDQ\5HVW$UHDV7ZRUHJLRQVSURYLGHG5HVW$UHDSODQQLQJ WKH\FRPSOHWHGDVDUHVXOWRIWKH3URJUDP8SGDWH*XLGDQFHDQG ,QVWUXFWLRQV2QHUHJLRQSURSRVHGFRQVWUXFWLRQRIDQHZ¿UVWFODVV:HOFRPH &HQWHURQ,QWHUVWDWHVRXWKERXQGWRUHSODFHWKHH[LVWLQJ5HVW$UHDEXLOWLQ 1985 and listed in poor condition. The region never received funding from the 0DLQ2I¿FHIRUWKHSURMHFW7KHRWKHUUHJLRQSURSRVHGUHEXLOGLQJDQH[LVWLQJ 5HVW$UHDFORVHGVLQFHRQ,QWHUVWDWHVRXWKERXQGWKDWZDVEXLOW LQDQGOLVWHGDVGLODSLGDWHGDQGFRQVWUXFWLQJDQHZ5HVW$UHDLQWKH northbound direction of Interstate 81. The region did not receive funding for this project. 5HJLRQRI¿FLDOVVWDWHGWKDWWKHRSHQLQJRIWKHVHWZRIDFLOLWLHVZDVQHHGHG WREULQJWKH,QWHUVWDWHFRUULGRULQFRPSOLDQFHZLWK$$6+72VSDFLQJ JXLGHOLQHV&XUUHQWO\WKHUHLVDJDSRIRYHUPLOHVEHWZHHQWKH3UHEOHDQG 2UOHDQV5HVW$UHDVRQQRUWKERXQG,QWHUVWDWHDQGRYHUPLOHVEHWZHHQ WKH:DWHUWRZQDQG:KLWQH\3RLQW5HVW$UHDVRQVRXWKERXQG,QWHUVWDWH ,QDGGLWLRQWKHUHDUHQR5HVW$UHDVORFDWHGLQWKHZHVWERXQGGLUHFWLRQRI ,QWHUVWDWH /RQJ,VODQG([SUHVVZD\ ZKLFKFRYHUVDSSUR[LPDWHO\ miles. )RUWKHUHPDLQLQJHLJKWUHJLRQVZHYLVLWHGRI¿FLDOVVWDWHGWKDWWKH\KDG QRWSHUIRUPHGDQ\5HVW$UHDSODQQLQJDVVXI¿FLHQWIXQGVGLGQ¶WH[LVWLQWKH UHJLRQ¶VEXGJHWWRFRPSOHWHDODUJHVFDOH5HVW$UHDSURMHFWDQGWKH\XWLOL]H WKHLUPDLQWHQDQFHEXGJHWVWRPDLQWDLQH[LVWLQJ5HVW$UHDV %\KDYLQJRXWGDWHGFRUULGRUSODQVDQGFRUULGRUVWKDWDUHQRWLQDOLJQPHQWZLWK $$6+72VSDFLQJJXLGHOLQHVWKH'HSDUWPHQWLVQRWSURYLGLQJWKHWUDYHOLQJ public a safe, comfortable, and convenient place to rest. This goes against the Department’s overarching theme of its four guiding principles – safety. The following map depicts those corridors that are out of compliance with $$6+72VSDFLQJJXLGHOLQHV

Report 2017-S-25 11 Report 2017-S-25 12 Welcome Center Capital Projects :HUHTXHVWHGSODQQLQJGHVLJQDQGFRQVWUXFWLRQGRFXPHQWDWLRQ ZKHUH DSSOLFDEOH IRUDOOVL[:HOFRPH&HQWHUVIRUZKLFKWKH'HSDUWPHQWZDVWKH lead agency to determine whether the projects were properly planned and implemented. The documentation received was limited as it lacked support for decision making, planning, design, and construction detail for individual :HOFRPH&HQWHUV)RUH[DPSOHLWHPVQRWDGGUHVVHGLQFOXGHG:HOFRPH &HQWHUORFDWLRQVDQGDPHQLWLHV6WDWHDJHQFLHV¶VHUYLFHVWREHSURYLGHG VTXDUHIRRWDJHQHHGV6WDWHDJHQFLHV¶ORFDWLRQLQWKH:HOFRPH&HQWHUV SDUNLQJQHHGVRIPRWRULVWSDVVHQJHUWRXULQJEXVHVDQGFRPPHUFLDOWUXFNV and other building requirements such as utilities. Long Island Welcome Center 7KH/RQJ,VODQG:HOFRPH&HQWHUZDVWKH¿UVWRQHEXLOW,WZDVFRPSOHWHG LQ2FWREHUSULRUWRWKHGHYHORSPHQWRIWKH:HOFRPH&HQWHUSURJUDP JRDOVDQGREMHFWLYHV:HZHUHWROGWKDWSODQQLQJZDVGRQHSULQFLSDOO\WKURXJK HPDLOVDQGFRQIHUHQFHFDOOVEHWZHHQWKH0DLQ2I¿FHDQG(6'&$VLGHIURP a few emails discussing local wineries, Taste NY Market updates, and the ORFDWLRQRINLRVNVLQWKHFRPPXQLW\URRPUHJLRQRI¿FLDOVGLGQRWSURYLGHDQ\ substantive planning documents for this facility. The region deviated from its policies and procedures by not developing DQ,33IRUWKH:HOFRPH&HQWHUSURMHFW7KH,33LQFOXGHVDGHVFULSWLRQRI the problem, project objectives, preliminary schedule, and cost estimates. 5HJLRQRI¿FLDOVVWDWHGWKDWWKH:HOFRPH&HQWHUKDGDQDFFHOHUDWHGVFKHGXOH that resulted in some items being missed during the design of the building, which caused two large change orders and several smaller ones during construction. One change order totaled $4.8 million to add a sewer system to the project because it was completely left out of the plans. The other large FKDQJHRUGHUWRWDOHGPLOOLRQGXHWRDQLQFUHDVHLQWKHVL]HRIWKHFHQWHU from 10,000 square feet to 15,000 square feet just before the contract was DZDUGHG&KDQJHRUGHUVIRUWKHFHQWHUWRWDOHGPLOOLRQ7KLVLQFUHDVHGWKH FRQWUDFWDZDUGHGDPRXQWRIPLOOLRQWRD¿QDOFRQVWUXFWLRQFRVWRI PLOOLRQ'HSDUWPHQWRI¿FLDOVWRRNWKHSRVLWLRQWKDWWKHEHQH¿WVRIRSHQLQJD :HOFRPH&HQWHUHDUOLHUWRWKHWUDYHOLQJSXEOLFIDURXWZHLJKDQ\DGGLWLRQDO H[SHQVHVLQFXUUHGDVDUHVXOWRIDFFHOHUDWLQJWKHSURMHFWVFKHGXOHVEXW\HW WKH\FRXOGQRWSURYLGHDFRVWEHQH¿WDQDO\VLVWRVXSSRUWWKHLUDVVHUWLRQ 2XUUHYLHZRIFKDQJHRUGHUVIRUWKLVSURMHFWLGHQWL¿HGLQZRUNWKDW was completed but was removed and replaced. This work included a concrete foundation slab in a police bathroom, a kitchen grease trap, a front entryway, a wood trellis on a front porch, a boat fence, hand dryers, plaques on the

Report 2017-S-25 13 ZDONRIIDPHDQGH[FDYDWLRQDQGEDFN¿OOWRUHORFDWHWKHJHQHUDWRU7KLVH[WUD work was not due to inferior materials or workmanship, but instead due to poor planning by the Department. These cost overruns also deviated from WKH'HSDUWPHQW¶VSODQQLQJJXLGDQFH±0D[LPL]H5HWXUQRQ,QYHVWPHQW±DVD need for this re-work was not substantiated. :KHQWKH/RQJ,VODQG:HOFRPH&HQWHUZHQWRXWWRELGWKH(QJLQHHU¶V Estimate was $24.4 million. The winning bid came in at $20.2 million, which is SHUFHQWXQGHUWKHHVWLPDWH%HFDXVHWKHELGZDVPRUHWKDQSHUFHQW EHORZWKH(QJLQHHU¶V(VWLPDWHDVSDUWRIWKH&DVH,5HYLHZSURFHVVD FRVWUHDVRQDEOHQHVVMXVWL¿FDWLRQVKRXOGKDYHEHHQFRPSOHWHGZLWK¿QGLQJV WUDQVPLWWHGWRWKH2I¿FHRI&RQVWUXFWLRQ+RZHYHUWKLVUHYLHZZDVQRW performed. 7KH'HSDUWPHQWGLGQRWIROORZWKHSURYLVLRQVRIWKH+LJKZD\'HVLJQ0DQXDO which states that any State or local agency occupying space in one of the 'HSDUWPHQW¶V5HVW$UHDVPXVWGRVRXQGHUD0285HJLRQRI¿FLDOVFRXOG QRWSURYLGHD028IRUDQ\RIWKHDJHQFLHVRFFXS\LQJVSDFHZLWKLQWKH/RQJ ,VODQG:HOFRPH&HQWHUHYHQWKRXJKWKH\ZHUHDZDUHWKDWDWDPLQLPXP 6WDWH3ROLFH6XIIRON&RXQW\3ROLFHDQGWKH'HSDUWPHQWVRI0RWRU9HKLFOHV DQG$JULFXOWXUHDQG0DUNHWVDOORFFXS\VSDFHZLWKLQWKH:HOFRPH&HQWHU 'HSDUWPHQWRI¿FLDOVSURYLGHGWZRRXWGDWHG028VLVVXHGLQ±RQH IRUWKH6WDWH3ROLFHDQGRQHIRU(6'&±WKDWGRQRWSHUWDLQWRWKH:HOFRPH &HQWHU 7KH/RQJ,VODQG:HOFRPH&HQWHUGRHVQRWDOORZSDVVHQJHUWRXULQJEXV RUFRPPHUFLDOWUXFNSDUNLQJ:KLOHZHZHUHQRWSURYLGHGDQ\VXSSRUWLQJ HYLGHQFHUHJLRQRI¿FLDOVVWDWHGWKHGHFLVLRQWRQRWDOORZWRXUEXVDQG commercial truck parking was a compromise between the community and WKH'HSDUWPHQW%\QRWDOORZLQJWRXUEXVSDUNLQJWKH'HSDUWPHQWGHYLDWHG IURPLWV7DVWH1<([SHULHQFHSROLF\DVWRXUEXVWUDI¿FLVDQLPSRUWDQWUHYHQXH GULYHU,QDGGLWLRQWKH'HSDUWPHQW¶V5HVW$UHD3ODQVXSSRUWVSURYLGLQJ :HOFRPH&HQWHUVZLWKLQPLQXWHVRINH\HQWU\SRLQWVWRWKH6WDWHRUWR WRXULVWUHJLRQV+RZHYHUWKH:HOFRPH&HQWHULVORFDWHGLQWKHFHQWHURI/RQJ ,VODQGZKLFKH[FHHGVWKHPLQXWHVRINH\HQWU\SRLQWVWRWKH6WDWH Southern Tier Welcome Center 7KH6RXWKHUQ7LHU:HOFRPH&HQWHUZDVWKHVHFRQG:HOFRPH&HQWHU FRPSOHWHGRSHQLQJLQ2FWREHU6LPLODUWRWKH/RQJ,VODQG:HOFRPH &HQWHUWKH6RXWKHUQ7LHU:HOFRPH&HQWHUKDGDQDFFHOHUDWHGVFKHGXOH DQGLQFXUUHGVLPLODUSUREOHPV)RUH[DPSOHWKH)LQDO3ODQV6SHFL¿FDWLRQV (VWLPDWHVWUDQVPLWWDOPHPRXVHGWRVHQGWKHSURMHFWRXWWRELGVWDWHG that the project plans were only 30 percent complete. Not having a fully

Report 2017-S-25 14 developed plan led to the need for additional material, labor, and equipment and increased construction costs by more than $1.9 million from the awarded amount of $6.4 million – to $8.3 million. 5HJDUGLQJ:HOFRPH&HQWHUSODQQLQJ5HJLRQRI¿FLDOVSURYLGHGGUDIW SURJUDPUHTXLUHPHQWVIRU:HOFRPH&HQWHUVGLVFXVVHGGXULQJDWZRGD\ PHHWLQJKHOGLQ'HFHPEHU%XLOGLQJUHTXLUHPHQWVLQFOXGHGHVLJQ criteria, tourist elements, public safety, vending, and maintenance. Site requirements include picnic area, play area, farmers’ market, bus drop- RIIDQGUHQHZDEOHHQHUJ\7KH\DOVRSURYLGHGD3RZHU3RLQWSUHVHQWDWLRQ ZLWKEDVLFLQIRUPDWLRQSURSRVHGÀRRUSODQVLWHOD\RXWDQGFRVWHVWLPDWHV +RZHYHUUHJLRQRI¿FLDOVFRXOGQRWSURYLGHGRFXPHQWDWLRQVXSSRUWLQJWKH GHFLVLRQVPDGHEHFDXVHDOOSODQQLQJIRUWKH6RXWKHUQ7LHU:HOFRPH&HQWHU ZDVGRQHE\WKH0DLQ2I¿FH2XUUHTXHVWVWRWKH0DLQ2I¿FHIRUDQ\DQGDOO SODQQLQJGRFXPHQWDWLRQUHODWHGWRWKH:HOFRPH&HQWHUKDYHJRQHXQIXO¿OOHG 3URMHFWVZLWKDFRQWUDFWYDOXHJUHDWHUWKDQPLOOLRQDUHUHTXLUHGWRKDYH D0DQXDOIRU8QLIRUP5HFRUG.HHSLQJ 085. 5HYLHZDVZHOODVD3URMHFW 4XDOLW\$VVXUDQFH5HSRUW 34$5 FRPSOHWHG7KHUHJLRQGLGQRWKDYHWR SHUIRUPWKH085.5HYLHZRUWKH34$5DVLWUHFHLYHGDQH[HPSWLRQIURP WKH0DLQ2I¿FH+RZHYHUWKH'HSDUWPHQW¶V&RQWUDFW$GPLQLVWUDWLRQ0DQXDO GRHVQRWSURYLGHIRUH[HPSWLRQVIURPSHUIRUPLQJ085.5HYLHZVDQG34$5 $Q\FRQGLWLRQVWKDWDOORZIRUGHYLDWLRQVIURPVWDQGDUGSURFHGXUHVVKRXOGEH documented in a comprehensive policy and procedure manual. Capital District Welcome Center ,QLWLDOO\WKH&DSLWDO'LVWULFW:HOFRPH&HQWHUZDVWREHORFDWHGDWWKHVLWHRI WKHH[LVWLQJ6FKRGDFN5HVW$UHDRQ,QWHUVWDWH7KHSURMHFWZDVDZDUGHG in June 2016 and construction began in July 2016, prior to the development RI:HOFRPH&HQWHU3URJUDPLQ'HFHPEHU+RZHYHUDVWRSZRUNRUGHU was issued one month into construction. The project was quickly scoped and designed, and as a result of poor planning, the Department concluded that a GHVLUHGXSJUDGHWRWKH&DSLWDO'LVWULFW:HOFRPH&HQWHUDPHQLWLHVUHTXLUHG a much larger footprint (the area on a project site that is used by the building DQGLVGH¿QHGE\WKHSHULPHWHURIWKHEXLOGLQJSODQSDUNLQJORWVODQGVFDSHV and other common building facilities are not included in the calculation) than the facility under construction in Schodack. 3ULRUWRWKHSURMHFWEHLQJWHUPLQDWHGWKH'HSDUWPHQWVSHQWPLOOLRQWR GHPROLVKWKHH[LVWLQJ5HVW$UHDUHPRYHWKHVHSWLFV\VWHPDQGSHUIRUP H[FDYDWLRQDQGXWLOLW\ZRUN$QRWKHUZDVVSHQWRQFRQVWUXFWLRQRI the building, which included installing footings and preparing foundation walls IRUFRQFUHWH$FFRUGLQJWRUHJLRQRI¿FLDOVVRPHPDWHULDOVIURPWKHSURMHFW

Report 2017-S-25 15 may be salvageable but the majority of the site work will have to be buried. 7KH'HSDUWPHQWSODQVWRFRQYHUWWKH6FKRGDFN5HVW$UHDLQWRDWH[WVWRSZLWK WUXFNSDUNLQJDQGLQVSHFWLRQDUHDDQGWKH&DSLWDO'LVWULFW:HOFRPH&HQWHU will be located on the New York State Thruway. The Department did not SURYLGHVSHFL¿FSODQQLQJGRFXPHQWVIRUWKLVIDFLOLW\DQGWKHDPHQLWLHVWREH included. Hudson Valley Welcome Center 7KH+XGVRQ9DOOH\:HOFRPH&HQWHUZDVRULJLQDOO\VXSSRVHGWREHORFDWHG RQ,QWHUVWDWHDWWKHVLWHRIWKHH[LVWLQJ6WRUPYLOOH5HVW$UHDDWDFRVWRI $36 million. The project was withdrawn in June 2017 because the facility FRXOGQRWEHEXLOWDWWKHH[LVWLQJORFDWLRQ5HJLRQRI¿FLDOVEHOLHYHWKHUHDVRQ the Stormville facility was not a suitable location was due to the ongoing GLVSXWHZLWKWKH)HGHUDO+LJKZD\$GPLQLVWUDWLRQFRQFHUQLQJRYHUWKHFRXQWHU VDOHVLQWKHLU7DVWH1<0DUNHW$QDOWHUQDWLYHORFDWLRQZDVLGHQWL¿HGRQWKH 7DFRQLF6WDWH3DUNZD\EXWWKLVSURMHFWZDVDOVRZLWKGUDZQEHWZHHQ2FWREHU and November 2017 due to issues with the new ramps and environmental concerns. The Department spent $1.5 million in design costs for this center. $FFRUGLQJWR'HSDUWPHQWRI¿FLDOVWKH+XGVRQ9DOOH\:HOFRPH&HQWHUZLOO EHFRQVWUXFWHGDORQJWKH1HZ

Report 2017-S-25 16 $GLURQGDFN:HOFRPH&HQWHU ,QLWLDOO\WKHQRUWKERXQG*OHQV)DOOV5HVW$UHDZDVWREHUHQRYDWHGXVLQJ a $1 million reappropriation of State funds, according to the Department. 2QFHWKHUHJLRQOHDUQHGWKDWWKH5HVW$UHDZDVJRLQJWREHFRQYHUWHGWRWKH $GLURQGDFN:HOFRPH&HQWHUWKHPLOOLRQZDVWKHQDSSOLHGWRUHRSHQLQJ WKHQRUWKERXQG6FKURRQ/DNH5HVW$UHDDVDWH[WVWRSDQGUHQRYDWLQJ WKHVRXWKERXQG*OHQV)DOOV5HVW$UHD$FFRUGLQJWRUHJLRQRI¿FLDOVWKH $GLURQGDFN:HOFRPH&HQWHUZDVLQLWLDWHGDVSDUWRIDVWDWHZLGHHIIRUWWR XSJUDGHYDULRXV5HVW$UHDVDFURVVWKH6WDWH:HPDGHPXOWLSOHUHTXHVWVIRU planning documentation related to the statewide initiative for rest areas and :HOFRPH&HQWHUVVLQFH$XJXVWEXWWKHVHSODQQLQJGRFXPHQWVKDYHQRW EHHQSURYLGHG$VZLWKWKH1RUWK&RXQWU\:HOFRPH&HQWHUWKH'HSDUWPHQW GHYLDWHGIURPLWVSROLFLHVDQGSURFHGXUHVE\QRWGHYHORSLQJDQ,335HJLRQ RI¿FLDOVVWDWHGWKDWDQ,33ZDVQRWQHFHVVDU\EHFDXVHWKHSURMHFWZDV DOUHDG\VHOHFWHGIXQGHGDQGFRPPLWWHGZLWKSHUFHQW(6'&IXQGVRQD VWDWHZLGHEDVLV$OVRVLPLODUWRWKH1RUWK&RXQWU\:HOFRPH&HQWHUUHJLRQ RI¿FLDOVVWDWHGWKDWWKH\SOD\HGQRUROHLQWKHSODQQLQJRIWKH:HOFRPH&HQWHU DVDOOSODQQLQJZDVGRQHE\WKH0DLQ2I¿FH7KH'HSDUWPHQWEXGJHWHGRQO\ PLOOLRQWRFRYHUWKHGHVLJQFRVWVRIWKH:HOFRPH&HQWHU+RZHYHULW ZDVHVWLPDWHGWKDWGHVLJQFRVWVZRXOGUHDFKPLOOLRQ$FFRUGLQJWRUHJLRQ RI¿FLDOVGHVLJQFRVWVH[FHHGHGWKHEXGJHWEHFDXVHRIGHVLJQFKDQJHV WRPDNHWKHEXLOGLQJVPDOOHUWKDQRULJLQDOO\SODQQHG+DGWKH'HSDUWPHQW SHUIRUPHGEHWWHUSODQQLQJRIWKH:HOFRPH&HQWHUWKHVHDGGHGFRVWVPD\ have been avoided. Rest Area Capital Projects 7KH'HSDUWPHQWKDVQRWFRQVWUXFWHGDQHZ5HVW$UHDVLQFH7KH 'HSDUWPHQWSUHIHUVWRPDLQWDLQH[LVWLQJ5HVW$UHDVDVWKHFXUUHQWIRFXV LVRQPDLQWDLQLQJH[LVWLQJEULGJHDQGSDYHPHQWFRQGLWLRQVDQGEULQJLQJ LQIUDVWUXFWXUHWRD6WDWHRI*RRG5HSDLUZLWKLQWHQ\HDUVZKLOHPD[LPL]LQJ RXWFRPHVDWWKHOHDVWFRVW,QDGGLWLRQWRWKHVL[:HOFRPH&HQWHUVZH MXGJPHQWDOO\VHOHFWHGDVDPSOHRI5HVW$UHDSURMHFWVWRGHWHUPLQH whether the projects were properly planned and implemented. Of the 52 projects, there were 6 projects we did not review because, while the title of WKHSURMHFWPD\KDYHFRQWDLQHGWKHZRUGV³5HVW$UHD´RU³&RPIRUW6WDWLRQ´ after further review we determined that these projects were related to paving or city parks or were carried out by a different agency. Thirty-two projects had a status of deleted, deferred, or withdrawn and were never developed LQWRD5HVW$UHDFDSLWDOSURMHFW)RUWKHUHPDLQLQJSURMHFWVZHUHYLHZHG planning, design, and construction documentation for compliance with Department policies and procedures. Our review of these 14 projects found

Report 2017-S-25 17 WKHIROORZLQJ 7KUHHSURMHFWVFRQWDLQHGDOOQHFHVVDU\DQGDSSURSULDWHGRFXPHQWDWLRQ Nine projects contained all necessary and appropriate documentation ZLWKWKHH[FHSWLRQRIWKHFRUUHVSRQGHQFHORJV7KHVHQLQHSURMHFWV ZHUHUHODWHGWRVHZHULPSURYHPHQWVDWWKH*DWHZD\5HVW$UHDDQG :KLWQH\3RLQW5HVW$UHDDORQJ,QWHUVWDWH%RWKVHZHULPSURYHPHQW SURMHFWVZHUHVXEVWDQWLDOO\EHKLQGVFKHGXOH)RUWKH*DWHZD\VHZHU LPSURYHPHQWVWKHELGGLQJSURFHVVKDGDQRULJLQDOGDWHRI$SULO but was pushed back to its actual date of January 2016. The project had an original completion date of November 2016 but was pushed back to EHWZHHQ2FWREHUDQG)HEUXDU\)RUWKH:KLWQH\3RLQWVHZHU improvements, the bidding process had an original date of January 2015 but was pushed back to May 2016. The original completion date of December 2017 was pushed back to June 2018. 2QHSURMHFWZDVFRPSOHWHGXQGHUDGLIIHUHQWSURMHFWLGHQWL¿FDWLRQ QXPEHUEXWIRUWKHVDPHIDFLOLW\DQG One project did not contain the planning, design, and construction documentation needed for a capital project. Instead, this project used YRXFKHUVDQGSXUFKDVHRUGHUVWRPDLQWDLQWKHH[LVWLQJ5HVW$UHDDQG purchase equipment. 'HOHWHG'HIHUUHGDQG:LWKGUDZQ3URMHFWV 7KH'HSDUWPHQW¶V3URMHFW6FKHGXOLQJ6\VWHP 366 LVXVHGWRWUDFNDFDSLWDO SURMHFW¶VVWDWXVDVLWPRYHVDORQJLQWKHSURFHVVUDQJLQJIURP³3URJUDPPHG´ LQFOXGHGLQWKHFDSLWDOSURJUDPEXWQRWVWDUWHG WR³)LQDOHG´ FRQVWUXFWLRQ FRPSOHWHGDQG¿QDOFRQWUDFWSD\PHQWPDGH 3URMHFWVWKDWDUHQRORQJHU EHLQJSXUVXHGDUHOLVWHGLQ366DV'HOHWHG'HIHUUHGRU:LWKGUDZQ'XULQJ RXUYLVLWVWRWKHWHQ5HJLRQDO2I¿FHVZHDVNHGUHJLRQRI¿FLDOVLIWKH\KDG any policies and procedures related to the processing of such projects. 2I¿FLDOVDWVHYHQRIWKHWHQUHJLRQVGLGQRWKDYHDQ\SROLFLHVDQGSURFHGXUHV 7KUHHUHJLRQVSURYLGHGDFRS\RIWKH'HSDUWPHQW¶V3URJUDPDQG3URMHFW 0DQDJHPHQW,QIRUPDWLRQ6\VWHP8VHU,QVWUXFWLRQV 330,6,QVWUXFWLRQV +RZHYHUWKHVH330,6,QVWUXFWLRQVPHUHO\SURYLGHVWHSE\VWHSJXLGDQFH IRUHQWHULQJDQGPDLQWDLQLQJWKHGDWDFRQWDLQHGLQ366WKH\GRQRWFRQWDLQ procedures related to projects removed from the capital program and whether any approvals are necessary. 2QHRIWKHPDLQFDWHJRULHVRISURMHFWLQIRUPDWLRQLGHQWL¿HGLQWKH330,6 ,QVWUXFWLRQVLV³&RPPHQWV´$FFRUGLQJWRWKH330,6,QVWUXFWLRQVLWLV essential that comments be accurate, up-to-date, and entered in a consistent

Report 2017-S-25 18 manner so that the Department’s capital program can be reviewed and DQDO\]HGEDVHGRQFRUSRUDWHJRDOVHVWDEOLVKHGE$[HFXWLYH0DQDJHPHQW :HIRXQGIRXU5HJLRQDO2I¿FHVZHUHQRWHQWHULQJFRPPHQWVDVUHTXLUHG RULQDWLPHO\PDQQHU)RUH[DPSOH5HJLRQKDGHLJKWGHOHWHGRUGHIHUUHG SURMHFWVLQRXUVDPSOHDQGDOOHLJKWSURMHFWVKDGQRFRPPHQW¿HOGVLQ 3665HJLRQ¶VRQO\FRPPHQWVZHUHHQWHUHGLQWR366RQWKHGD\ZHPHW ZLWKUHJLRQRI¿FLDOVLQ-DQXDU$RURQHGHOHWHGSURMHFWWKHSUHYLRXV FRPPHQWVZHUHHQWHUHGLQ$XJXVW Deleted, deferred, and withdrawn projects are generally projects the Department wanted to implement at one time but for various reasons decided not to implement. The bases for these decisions are critical and should be GRFXPHQWHGDQGPDLQWDLQHG:HLGHQWL¿HGRQHGHIHUUHGSURMHFWZKHUHWKH Department spent $440,934 on design and right-of-way, but the project was QHYHUFRPSOHWHG7KLVSURMHFWZDVLQLWLDWHGWRUHSODFHDQH[LVWLQJ5HVW$UHD RQ5RXWHLQWKH7RZQRI1LFKROVDQGZDVRULJLQDOO\GHIHUUHGLQ)HEUXDU\ 5HJLRQRI¿FLDOVWROGXVLQHDUO\WKDWWKHSURMHFWUHPDLQVGHIHUUHG EHFDXVHWKH\KDYHQRWUHFHLYHGWKHQHFHVVDU\IXQGLQJIURPWKH0DLQ2I¿FH WRUHSODFHWKHH[LVWLQJ5HVW$UHD7KHVHVXQNHQFRVWVDOVRGHYLDWHGIURPD 'HSDUWPHQWJXLGLQJSULQFLSOH0D[LPL]H5HWXUQRQ,QYHVWPHQW2ISURMHFWV (across eight regions) that were deferred, deleted, or withdrawn, 24 had no documentation to support the decision. Recommendations 1. 6WUHQJWKHQSODQQLQJIRU:HOFRPH&HQWHUVDQG5HVW$UHDVE\IROORZLQJ 'HSDUWPHQWSROLFLHVDQGSURFHGXUHVUHODWHGEXWQRWOLPLWHGWRSURMHFW SODQQLQJDVGHVFULEHGLQWKH3URMHFW'HYHORSPHQW0DQXDOHQWHULQJ FRPPHQWVLQWR366DVGHVFULEHGLQWKH330,6,QVWUXFWLRQV&DVH, 5HYLHZVDQG028UHTXLUHPHQWVDVGHVFULEHGLQWKH+LJKZD\'HVLJQ Manual. 2. &UHDWHDQGPDLQWDLQDWUDQVSDUHQWHQYLURQPHQWWKDWDOORZVIRU WKHH[DPLQDWLRQRIWKHGHFLVLRQPDNLQJSURFHVVDQGXVHRISXEOLF resources of a State government agency. 3. Document planning and implementation decisions that follow the V\VWHPVLQSODFHIRUWKHSODQQLQJGHVLJQDQGFRQVWUXFWLRQRI:HOFRPH &HQWHUV 4. Identify solutions to bring the Interstate 81 corridor and westbound /RQJ,VODQG([SUHVVZD\LQFRPSOLDQFHZLWK$$6+72VSDFLQJ guidelines. 5. 0DLQWDLQFXUUHQW5HVW$UHD3ODQVDQG5HVW$UHDFRUULGRUSODQV

Report 2017-S-25 19 6. Develop and implement detailed policies and procedures regarding the processing of deleted, deferred, or withdrawn projects and the H[HPSWLRQZDLYHUSURFHVVIRUERWK085.5HYLHZVDQG34$5V

Report 2017-S-25 20 Audit Scope, Objectives, and Methodology

The purpose of our audit was to determine whether the Department has a written 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. To accomplish our objectives, we reviewed relevant laws, regulations, and 'HSDUWPHQWPDQXDOV:HDOVRLQWHUYLHZHG0DLQ2I¿FHDQGUHJLRQRI¿FLDOV RQHFRQWUDFWRUDQGRQH0HWURSROLWDQ3ODQQLQJ2UJDQL]DWLRQ,QDGGLWLRQZH evaluated the internal controls related to the audit objectives. 'HSDUWPHQWRI¿FLDOVSURYLGHGDOLVWRIFDSLWDOSURMHFWVWKDWZHUHLQ366 GXULQJRXUVFRSHSHULRG7KHSURMHFWVZHUHLQYDULRXVVWDWXVHVLQFOXGLQJ $FWLYH$SSURYHG'HYHORSHG&RPSOHWHG&RQVWUXFWLRQ³)LQDOHG´'HOHWHG 'HIHUUHGDQG:LWKGUDZQ)URPWKLVOLVWZHMXGJPHQWDOO\VHOHFWHGDOO FDSLWDOSURMHFWVLQWKH&DSLWDO3ODQUHODWHGWRKLJKZD\IDFLOLWLHVEDVHGRQWKHLU GHVFULSWLRQVXFKDV³5HVW$UHD´DQG³:HOFRPH&HQWHU´2IWKRVHSURMHFWV ZHUHUHODWHGWR5HVW$UHDVDQGZHUH:HOFRPH&HQWHUSURMHFWVWKDW LQFOXGHGDQDGGLWLRQDOSURMHFWVIRUYDULRXVFRQVWUXFWLRQWUDGHV/DVWO\ZH YLVLWHGRIWKH5HJLRQDO2I¿FHV 5HJLRQGLGQRWKDYHDQ\'HSDUWPHQW operated highway facilities) to review planning, design, and construction documentation associated with the 73 projects in our sample. The results of our review were not intended to be projected to the population. $VSDUW RIDXGLWSURFHGXUHVWKHDXGLWWHDPXVHG*HRJUDSKLF,QIRUPDWLRQ6\VWHPV *,6 VRIWZDUHIRUJHRJUDSKLFDQDO\VLV$VSDUWRIWKHJHRJUDSKLFDQDO\VLV ZHGHYHORSHGDYLVXDOL]DWLRQ VHHPDSRQS WRLPSURYHXQGHUVWDQGLQJ of our report. To improve ease of use, some minor locational changes were PDGHLQWKLVYLVXDOL]DWLRQ7KHFKDQJHVGRQRWPDWHULDOO\DIIHFWWKHDFFXUDF\ RULQWHUSUHWDWLRQRIWKHXQGHUO\LQJGDWDRUYLVXDOL]DWLRQ $VLVRXUSUDFWLFHZHUHTXHVWHG'HSDUWPHQWRI¿FLDOVWRSURYLGHXVZLWKD OHWWHURIUHSUHVHQWDWLRQDI¿UPLQJWKH\KDYHPDGHDOOUHOHYDQWUHFRUGVDQG related data available for audit, there are no undisclosed communications from regulatory agencies concerning noncompliance with operating practices and they have complied with all applicable laws, rules, and regulations that FRXOGKDYHDVLJQL¿FDQWHIIHFWRQRSHUDWLRQVVXEMHFWWRRXUDXGLW7KHOHWWHURI UHSUHVHQWDWLRQLVDOVRLQWHQGHGWRFRQ¿UPDQ\VLJQL¿FDQWRUDOUHSUHVHQWDWLRQV made to the auditors and thereby reduce the likelihood of misunderstandings. :HSURYLGHGWKH'HSDUWPHQWZLWKDVWDQGDUGUHSUHVHQWDWLRQOHWWHUWKDWLV used for all audits. The Department provided a representation letter, but changed the document to limit assurances. The limited assurances related to DI¿UPLQJWKH'HSDUWPHQWPDGHDOOUHOHYDQWUHFRUGVDQGUHODWHGGDWDDYDLODEOH

Report 2017-S-25 21 for audit to only those in its possession and oral representations made may QRWKDYHFDSWXUHGDOODVSHFWVRIWKHLVVXHDWKDQG/DVWO\WKHOHWWHUDOVR represents that there were no undisclosed communications from regulatory agencies, but our multiple requests during the survey phase of our audit for supporting documentation regarding the Department’s agreement with the )HGHUDO+LJKZD\$GPLQLVWUDWLRQIRUKLJKZD\VLJQVZDVQRWIXO¿OOHGQRUGLG 'HSDUWPHQWRI¿FLDOVSURYLGHGHWDLOHGSODQV VLWHVHOHFWLRQIRUIDFLOLWLHVVTXDUH footage needs, amenities, State agencies’ services to be provided, parking, YHQGRUORFDWLRQDQGXWLOLWLHV IRUFRPSOHWHG:HOFRPH&HQWHUVRUWKRVHXQGHU GHYHORSPHQW$VVXFKZHGHHPHGWKHOHWWHUXQDFFHSWDEOHIRUWKHSXUSRVHV of our audit and, therefore, we have limited assurance that the information provided to us during the course of our audit was reliable, accurate, and complete.

Report 2017-S-25 22 Statutory Requirements

Authority 7KHDXGLWZDVSHUIRUPHGSXUVXDQWWRWKH6WDWH&RPSWUROOHU¶VDXWKRULW\XQGHU $UWLFOH96HFWLRQRIWKH6WDWH&RQVWLWXWLRQDQG$UWLFOH,,6HFWLRQRIWKH 6WDWH)LQDQFH/DZ :HFRQGXFWHGRXUSHUIRUPDQFHDXGLWLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHG government auditing standards. Those standards require that we plan DQGSHUIRUPWKHDXGLWWRREWDLQVXI¿FLHQWDSSURSULDWHHYLGHQFHWRSURYLGH DUHDVRQDEOHEDVLVIRURXU¿QGLQJVDQGFRQFOXVLRQVEDVHGRQRXUDXGLW REMHFWLYHV:HEHOLHYHWKDWWKHHYLGHQFHREWDLQHGSURYLGHVDUHDVRQDEOH EDVLVIRURXU¿QGLQJVDQGFRQFOXVLRQVEDVHGRQRXUDXGLWREMHFWLYHV ,QDGGLWLRQWREHLQJWKH6WDWH$XGLWRUWKH&RPSWUROOHUSHUIRUPVFHUWDLQRWKHU FRQVWLWXWLRQDOO\DQGVWDWXWRULO\PDQGDWHGGXWLHVDVWKHFKLHI¿VFDORI¿FHURI 1HZ

Report 2017-S-25 23 UHYLHZUHFRUGVIRUWKHVDPSOHGSURMHFWVIURPWKHLUSHUVSHFWLYH&RQVHTXHQWO\ LIWKH'HSDUWPHQW¶VRI¿FLDOVFKRVHWRQRWHQIRUFHWKHLURZQSROLFLHV SURFHGXUHVHWFWKH\VKRXOGUHZULWHWKHPWRDFFXUDWHO\UHÀHFWPDQDJHPHQW¶V objectives for highway facilities used by the traveling public. Our rejoinders to the Department’s comments are embedded within the Department’s response. :LWKLQGD\VDIWHU¿QDOUHOHDVHRIWKLVUHSRUWDVUHTXLUHGE\6HFWLRQ RIWKH([HFXWLYH/DZWKH&RPPLVVLRQHURIWKH'HSDUWPHQWRI 7UDQVSRUWDWLRQVKDOOUHSRUWWRWKH*RYHUQRUWKH6WDWH&RPSWUROOHUDQGWKH OHDGHUVRIWKH/HJLVODWXUHDQG¿VFDOFRPPLWWHHVDGYLVLQJZKDWVWHSVZHUH taken to implement the recommendations contained herein, and where recommendations were not implemented, the reasons why.

Report 2017-S-25 24 Agency Comments and State Comptroller’s Comments

Report 2017-S-25 25 ,QVWUXFWLRQV&DVH,5HYLHZVDQG028UHTXLUHPHQWVDVGHVFULEHGLQWKH+LJKZD\ Design 0DQXDO´,QUHVSRQVH, the Department states “:Hdisagree with this UHFRPPHQGDWLRQ´ The documents cited, which the auditors relied upon, are not “a trade association’s GLVFUHWLRQDU\JXLGHOLQHV´EXWLQVWHDGWKH'HSDUWPHQW¶VRZQSROLFLHVDQGSURFHGXUHV Moreover, our findings that the Department failed to comply with its own policies and procedures are inconsistent with the Department’s position that it is compliant with federal and Industry standards, which their policies and procedures incorporate. /DVWO\ WKURXJKRXWWKH UHSRUWWKHUH DUH UHSHDWHGUHIHUHQFHV PDGH WR 1<6'27 ZLWKKROGLQJ LQIRUPDWLRQIURPWKH$XGLW7HDP$VGHWDLOHGLQWKH$XGLW5HSUHVHQWDWLRQ/HWWHUWKURXJKRXW WKHFRXUVH RIWKH DXGLW 1<6'27 UHVSRQGHG WR 26& LQ JRRG IDLWK PDNLQJ HYHU\ HIIRUWWR ensure that all representations made were accurate. State Comptroller’s Comment – The Department’s response does not address the completeness of their representations or documented evidence provided to support WKHLUSODQQLQJDQGGHFLVLRQPDNLQJ)RUH[DPSOHour multiple requests during the survey phase of the audit for detailed plans and supporting documentation on how the plans were developed (site selection for facilities, square footage needs, amenities, State agencies’ services to be provided, parking, vendor location, and utilities) for completed :HOFRPH&HQWHUVRUWKRVHXQGHUGHYHORSPHQWZHUHXQIXOILOOHG If we take the Department’s assertions that it did not withhold information at face value, then it logically follows that the Department does not have detailed plans for several hundred millions of dollars of projects or critical information on how these plans were developed, which is HYHQPRUHWURXEOLQJWKDQWKH'HSDUWPHQWZLWKKROGLQJLQIRUPDWLRQ$GGLWLRQDOO\WKH Department’s representation letter provided limited assurance regarding audit evidence provided and we deemed the letter unacceptable for the purposes of our audit.

,QFORVLQJ1<6'27QRWHVWKDW26& V([DPLQHULQ&KDUJHUHVSRQVLEOHIRUWKHGD\-to-day audit work engaged in inappropriate and harassing behavior of a NYSDOT employee – for which he was arrested and charged - during this audit process. 'HVSLWH EHLQJ WKH ([DPLQHU LQ &KDUJHDQGEHLQJWKHSULPDU\FRQGXLWIRUWKHUHYLHZDQGGLVVHPLQDWLRQRIPDWHULDOVSURYLGHG by NYSDOT, he is not listed as a participant or author of the audit. NYSDOT is concerned that many of the findings and recommendations included in this audit were unduly impacted by the ([DPLQHULQ&KDUJH VDFWLRQVGXULQJWKHaudit, and his apparent lack of participation in the final audit drafting. Specific to the finding/recommendations included in the draft report, NYSDOT offers the attached for your further consideration.

State Comptroller’s Comment – The individual in question was removed from the audit LQWKHIDOORIZKHQWKHVLWXDWLRQZDVEURXJKWWR26&¶VDWWHQWLRQDQGKHOHIWWKHDJHQF\ VKRUWO\WKHUHDIWHU26&GRHVQRWtolerate such behavior. The audit was written subsequent WRWKHVHHYHQWVDQGWKHGUDIWDXGLWZDVLVVXHGWRWKH'HSDUWPHQWRQ$SULO – over half a year later. It is therefore surprising that Department officials would insinuate that there was an issue with this individual not being included as an author or participant on the UHSRUW$V'HSDUWPHQWRIILFLDOVDUHDZDUHWKLVLQGLYLGXDOZDVQRORQJHUZLWKWKHDJHQF\ ZKHQWKHUHSRUWZDVZULWWHQDQGLWLVQRW26&¶VSUDFWLFHWROLVWSDUWLFLSDQWV – only major contributors to the report. $GGLWLRQDOO\'HSDUWPHQWRIILFLDOVDWWHPSWWRUDLVHGRXEWVDERXW WKHDXGLWZRUNE\H[DJJHUDWLQJWKHUROHSOD\HGE\WKLVLQGLYLGXDOLQRUGHUWRUDLVHFRQFHUQV UHJDUGLQJWKLVLQGLYLGXDO¶VLQIOXHQFHRQWKHDXGLW¶VRXWFRPH+RZHver, these concerns are

Report 2017-S-25 26 Report 2017-S-25 27 Attachment 1

1<6'27'UDIW5HSRUW&RPPHQWV

Throughout the report, WKH$XGLW7HDPVSHFXODWHVWKDW1<6'27PD\KDYHVDYHGPRQH\LIWKH $JHQF\KDGHORQJDWHGSURMHFWGHOLYHU\VFKHGXOHV6HWWLQJDVLGHWKH$XGLW7HDP VRSLQLRQ on project delivery, WKH DXGLW IDLOV WR UHFRJQL]H WKDW WKH timing of these new facilities was FRRUGLQDWHGWRPD[LPL]HXWLOL]DWLRQWRWKHWUDYHOLQJSXEOLFGXULQJSHDNWUDYHOVHDVRQV.

State Comptroller’s Comment – The Department’s comment does not reflect the auditors’ position regarding project delivery. The facts are that the Department stated, in response to our preliminary findings, that the benefits of having the :HOFRPH&HQWHUVRSHQHDUOLHUIDURXWZHLJKHGDQ\DGGLWLRQDOH[SHQVHWKDWRFFXUUHG DVDUHVXOWRIDFFHOHUDWLQJWKHSURMHFWVFKHGXOH+RZHYHUZKHQDVNHGWRVXSSRUWWKH statement, the Department did not provide any information.

7KHDXGLWDOVRHTXDWHV2UGHUVRQ&RQWUDFWVZLWKZDVWHIXOVSHQGLQJ, when in fact many of these changes during design and/or construction provided additional value to the traveling public at DUHDVRQDEOHFRVW)RUH[DPSOH, additional sewer costs cited for WKH/RQJ,VODQG:HOFRPH &HQWHUZHUHGXHLQSDUWWRHQKDQFHVHUYLFHVDYDLODEOHWRPRWRULVWV. $GGUHVVLQJWKHVHZHUFRVWV outside the core building construction costs was a more cost-effective delivery method. )XUWKHUPRUH, DFFRUGLQJ WR 26& V &DSLWDO 3ODQQLQJ guide, "contingencies happen", so it is important to provide for them.

State Comptroller’s Comment – The Department’s position that a sewer system was intentionally omitted during the bidding process as being a more effective delivery method is not a rational position. The planning for a sewer system is not a contingency item, but rather a necessity for a public facility and should not have been OHIWXQWLORQHPRQWKEHIRUHSURMHFWFRPSOHWLRQ$GGLWLRQDOO\UHFRUGVVKRZWKDWWKH need for a new sewer system dated back to 2006.

The audit states "%\not providing a safe, comfortable, and convenient place for motorists to rest, the Department has not achieved its overarching guiding principle for capital project planning – safety." 7KH$XGLW7HDP s conclusion is baseless. 6DIHW\LV1<6'27 VWRSSULRULW\ 7KH $XGLW 7HDP DSSDUHQWO\ UHOLHG RQ LWV PLVLQWHUSUHWDWLRQV RI JXLGHOLQHV LVVued by the $PHULFDQ$VVRFLDWLRQRI6WDWH+LJKZD\DQG7UDQVSRUWDWLRQ2IILFLDOV $$6+72 SHUWDLQLQJWR rest areas. NotwithsWDQGLQJH[WHQVLYHGLVFXVVLRQVSHUWDLQLQJWRWKHVHGLVFUHWLRQDU\JXLGHOLQHV DQG1<6'27 VRZQUHVWDUHDSROLFLHVWKH$XGLW7HDPFRQWLQXHVWRDVVHUWWKDW1HZ

JXVWDVWKH$XGLW7HDPLJQRUHVWKDW$$6+72JXLGHOLQHVRQUHVWDUHDVUHFRJQL]HWKHQHHGWR evaluate the transportation systems as a whole in order to best invest public funds to meet critical needs, WKH$XGLWIDLOVWRDFNQRZOHGJHWKDWUHVWDUHDVDUHMXVWRQHRIWKHPDQ\DVVHWV managed and maintained by NYSDOT.

State Comptroller’s Comment – Multiple times during the audit, Department officials UHIHUUHGWR$$6+72JXLGHOLQHVDQGKDYHLQFOXGHGWKHPLQWKHLURZQ3ROLFLHV

Report 2017-S-25 28 5HJDUGLQJthe need to consider factors beyond geographic spacing (including highway operating conditions, traffic patterns and volumes, and availability of private services at highway H[LWV), ZHUHTXHVWHGWKH'HSDUWPHQWSURYLGHGRFXPHQWHGH[DPSOHVIRUWKHWZR areas of non-compliance, and the request was not fulfilled.

1<6'27Response to OSC Recommendations

1. 6WUHQJWKHQ SODQQLQJ IRU :HOFRPH &HQWHUV DQG 5HVW $UHDV E\ IROORZLQJ 'HSDUWPHQW SROLFLHV DQG SURFHGXUHV UHODWHG EXW QRW OLPLWHG WR SURMHFW SODQQLQJ DV GHVFULEHG LQ WKH 3URMHFW 'HYHORSPHQW Manual, HQWHULQJ FRPPHQWV LQWR 366 DV GHVFULEHG LQ WKH 330,6 Instructions, &DVH,5HYLHZVDQG028UHTXLUHPHQWVDVGHVFULEHGLQWKH+LJKZD\'HVLJQ Manual.

1<6'275HVSRQVH– :HGLVDJUHHZLWKWKLVrecommendation.

State Comptroller’s Comment –:HDUHVXUSULVHGWKDWWKH'HSDUWPHQW disagrees with following its own policies and procedures.

7KH $XGLW 7HDP IDLOV WR IXOO\ UHFRJQL]H the scope and H[WHQW of the transportation infrastructure that falls under the operations/maintenance jurisdiction of NYSDOT. NYSDOT has a comprehensive set of project development/delivery manuals, instructions and guidelines. These documents, which were provided to the $XGLW Team, clearly detail a consistent approach inguiding the delivery of a wide variety of capital project types. 26& V audit does not acknowledge that the welcome center/rest area rehabilitation/construction development process audited was a multi-agency initiative that incorporated strategic priorities and design elements funded by others. $VVXFKWKH:HOFRPH&HQWHUSURFHVVQHFHVVDULO\GLIIHUHGIURP 1<6'27 V typical capital planning process. 26& specifically questioned certain process steps, suchas theInitial3URMHFW 3URSRVDO O33 that were not necessary orin somecases inappropriate for this initiative. Notwithstanding, UHFRJQL]LQJthe age of the 3URMHFW 6FKHGXOLQJ6\VWHP 366 1<6'27LVLQWKHSURFHVVRILPSOHPHQWLQJD new program management system – 2UDFOH3ULPDYHUD3RUWIROLR0DQDJHPHQW 2330 V\VWHP2330ZLOOUHSODFHWKHFXUUHQWand provide enhanced utility and consistency EHWZHHQ5HJLRQVDQGIXUWKHUVWUHQJWKHQRQJRLQJSODQQLQJ:LWKUHVSHFWWRWKH028, '27ZLOOHQVXUHWKDWWKHUHVSRQVLELOLWLHVIRUVSDFHLQWKHVHIDFLOLWLHVXWLOL]HGE\RWKHU agencies, such as I love NY, are memorLDOL]HG

State Comptroller’s Comment – $OWKRXJKWKH:HOFRPH&HQWHUVSURJUDPLVD multi-agency initiative, :HOFRPH&HQWHUV are Department capital projects and the Department needs to adhere to its policies and procedures.

2. &UHDWH and maintain a transparent environment that allows for the H[DPLQDWLRQ of the decision- making process and use of public resources of a State government agency.

1<6'275HVSRQVH– :HGisagree with this recommendation.

State Comptroller’s Comment – The Department disagreeing to create and maintain a transparent environment is inconsistent with its response to the recommendation.

NYSDOT maintains transparency throughout the planning, contracting and delivery of

Report 2017-S-25 29 its capital projects. 5HVRXUFHV DYDLOable to the public include, among other things 3URMHFWV LQ \RXU 1HLJKERUKRRG DQG WKH 6WDWHZLGH 7UDQVSRUWDWLRQ ,PSURYHPHQW 3URJUDP. $GGLWLRQDOO\ 1<6'27 SURYLGHG WKH DXGLWRUV ZLWK DFFHVV WR DOO RI WKH requested materials in our possession such as, information on the National (QYLURQPHQWDO3ROLF\$FWWHFKQLFDOPHPRUDQGXPGHWDLOLQJVFRSHFKDQJHV'DLO\:RUN 5HSRUWVDQGGHVLJQDJUHHPHQWV. $VGHWDLOHGDERYH1<6'27UHVSRQGHGWR26&LQ good faith, making every effort to ensure that all representations made were accurate DQGGLVFXVVHGLQGHWDLOZLWKWKH$XGLW7HDP.

State Comptroller’s Comment – Multiple items requested were not received. )RUH[DPSOHDNH\LWHPQRWUHFHLYHGZDVdetailed plans for individual completed :HOFRPH&HQWHUVRUWKRVHXQGHUGHYHORSPHQW

3. Document planning and implementation decisions that follow the systems in place for the SODQQLQJGHVLJQDQGFRQVWUXFWLRQRI:HOFRPH &HQWHUV

1<6'275HVSRQVH- :e disagree with this recommendation. $OO RI WKH SURMHFWV UHYLHZHG DV SDUW RI WKLV $XGLW IXOO\ DGKHUHG WR WKH 'HVLJQ $SSURYDO 'RFXPHQW procedure.

State Comptroller’s Comment – $VQRWHGSUHYLRXVO\WKH'HSDUWPHQWHLWKHU withheld information or did not have information to document its decisions. The Department’s disagreement with the need to document planning and implementation decisions may in part have led to the deficiencies identified in WKHDXGLW$VVWDWHGLQ1HZ

4. ,GHQWLI\ VROXWLRQV WR EULQJ WKH ,QWHUVWDWH FRUULGRU DQG ZHVWERXQG /RQJ ,VODQG ([SUHVVZD\LQFRPSOLDQFHZLWK$$6+72VSDFLQJ guidelines.

1<6'27 5HVSRQVH - 1<6'27 VWURQJO\ GLVDJUHHV ZLWK 26& WKDW WKH GLVFUHWLRQDU\ $$6+72JXLGHOLQHVDSSO\LQWKHVHLQVWDQFHVRUZLWKWKHDVVHUWLRQWKDWWKH6WDWHLVLQ non-FRPSOLDQFH$VGLVFXVVHGUHSHDWHGO\ZLWKWKH$XGLW7HDPERWKRIWKHVHKLJKZD\ segments paVV WKURXJK GHQVHO\ SRSXODWHG XUEDQL]HG DUHD ZLWK SOHQW\ RI VWRSSLQJ RSSRUWXQLWLHV 7KH $$6+72 JXLGHOLQHV SURYLGH EURDG GLVFUHWLRQ LQ WKH VSDFLQJ DQG W\SHVRIVHUYLFHVRIIHUHGQHHGWREHLQWKHFRQWH[WRIOLPLWHGIXQGLQJservice demand and availability of other facilities (including private) for stopping opportunities. )RU H[DPSOH, DPSOH VWRSSLQJ SRLQWV ZLWK VHUYLFHV H[LVW DORQJ I- DQG WKH /RQJ ,VODQG ([SUHVVZD\ I-495) in the areas cited by the audit include I-81N - KWWSVLH[LWDSSFRPH[LWV1HZ

State Comptroller’s Comment – $OWKRXJKWKH'HSDUWPHQWstrongly disagrees, the Department has had or planned to have highway facilities to provide motorists with services for both I-DQGWKH/RQJ,VODQG([SUHVVZD\ $OWKRXJKDORQJDOPRVWHYHU\KLJKZD\, ORFDOHQWLWLHVH[LVWWKDWFDQSURYLGH

Report 2017-S-25 30 services, the concept of rest areas on highways is so that motorists can have easily accessible services that are safe and comfortable, without incurring a substantial delay in their travels

5. Maintain FXUUHQW5HVW$UHD3ODQVDQG5HVW$UHDFRUULGRU plans

1<6'27 5HVSRQVH - NYSDOT supports and already complies with the recommendation to refresh and consolidate the current welcome center/rest area SROLF\SURFHGXUHV and guidance. 1<6'27QRWHVWKDWWKHH[LVWLQJVXLWHRIGRFXPHQWV, including corridor plans, policies and procedures, provide sound guidance for implementing these projects and are consistent with national guidelines.

6. Develop and implement detailed policies and procedures regarding the processing of GHOHWHGGHIHUUHGRUZLWKGUDZQSURMHFWVDQGWKHH[HPSWLRQZDLYHUSURFHVVIRUERWK085. 5HYLHZVDQG 34$5V.

1<6'275HVSRQVH- :HGLVDJUHHZLWKWKLVUHFRPPHQGDWLRQ. 7KH366GDWDEDVHLV the system of record for project termination. The deletion of temporary project numbers or other unused database items are merely database management practices. NYSDOT ZLOOIXUWKHUHQKDQFHLWVSURFHVVHVWKURXJKWKHQHZ2330.

$FFRUGLQJWRWKH&RQWUDFW$GPLQLVWUDWLRQ0DQXDO &$0 , D085.UHYLHZLVSHUIRUPHG to assure that contract records are kept in accordance the 085. manual and other pertinent policies and procedures. Due to the nature of the project, the region chose to DVVLJQWKH085. reviewer to the Southern Tier project as the office engineer to ensure records were properly kept thus meeting the intent of the &$0. There was no waiver of the review, only a delegation of the task to the office engineer which is appropriate for this project.

7KH3URMHFW4XDOLW\$VVXUDQFH5HSRUW 34$5 SURYLGHVIHHGEDFNRQSURMHFWGHVLJQV DV D UHVXOW RI WKH H[SHULHQFH JDLQHG GXULQJ FRQVWUXFWLRQ 7Ke justification for the H[HPSWLRQZDVWKDWWKH6RXWKHUQ7LHUSURMHFWZDVQRWDW\SLFDO1<6'27SURMHFWDQG therefore there was little to be learned or gained for similar type projects. The H[HPSWLRQIROORZHGZDVVWDQGDUGSUDFWLFHWKDWKDVEHHQLQSODFHIRUquite some time, EXWLWLVQRWGRFXPHQWHGLQWKH&$01<6'27ZLOOUHYLVHWRGRFXPHQWWKHH[HPSWLRQ SURFHVVLQWKH&$0

Report 2017-S-25 31 Contributors to Report

Executive Team Andrew A. SanFilippo - Executive Deputy Comptroller Tina Kim - Deputy Comptroller Ken Shulman - Assistant Comptroller Audit Team Carmen Maldonado - Audit Director Robert C. Mehrhoff, CPA - Audit Manager Bob Mainello, CPA - Audit Supervisor Melissa Davie - Examiner-in-Charge Andrew Philpott - Examiner-in-Charge Jonathan Julca - Mapping Analyst

Contact Information (518) 474-3271 6WDWH*RYHUQPHQW$FFRXQWDELOLW\#RVFny.gov 2I¿FHRIWKH1HZ

/LNHXVRQ)DFHERRNDWIDFHERRNFRPQ\VFRPSWUROOHU )ROORZXVRQ7ZLWWHU#Q\VFRPSWUROOHU )RUPRUHDXGLWVRULQIRUPDWLRQSOHDVHYLVLWZZZRVFVWDWHQ\XVDXGLWVLQGH[KWP