90 Day Integration Report September 2009

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mass DOT

Massachusetts Department of Transportation

Moving Massachusetts Forward.

The Commonwealth of Massachusetts

Executive Office of Transportation and Public Works Executive Office for Administration and Finance

Office of Transition Management Moving Massachusetts Forward…

ANF Secretary Leslie Kirwan EOT Secretary James A. Aloisi, Jr.

Incoming MassDOT Secretary/CEO Jeffrey B. Mullan

90 Day Integration Report

September 2009

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Moving Massachusetts Forward.

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1.0 Introduction

1.1 Governor Patrick’s Vision of Transportation Reform 2.0 The Vision, Mission, and Goals of MassDOT

2.1 Creating a New Integration Culture 2.2 Overview of MassDOT

3.0 Purpose of Integration Effort 4.0 History of Transportation Reform

4.1 The Massachusetts Mobility Compact

4.2 Summary of October 2008 Mobility Compact Annual Report 4.3 Mobility Compact Working Groups

5.0 Reform Achievements to Date

5.1 Integrating Control Center Operations for a Safer Highway 5.2 Upgrading MTA Bond Ratings

5.3 Reforming Traveler Information

5.4 Improving Roadway Notification Process

5.5 Open Data Initiative to Improve Online Customer Service 5.6 Providing Drivers and Commuters Access to Traffic Cameras 5.7 Relocating RMV Facilities and Expanding Services

5.8 Consolidating Resident Discount Programs 5.9 Integrating Toll and Fare Currency Operations 5.10 Fostering Other Collaborative Engagements 6.0 Transition Implementation

6.1 Consultant Services

6.2. Functions of the Highway Division 6.2.1 Highway Division Integration 6.2.2 Scope of Highway Integration 6.2.3 New Highway Division Boundaries 6.2.4 Milestones and Accomplishments Table of Contents

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6.2.5 Completed Activities

6.2.6 Activities on Track for Completion

6.2.7 Activities to Commence After November 1, 2009 6.3 Finance Integration

6.3.1 A Fiscal Vision for MassDOT 6.3.2 Scope of Integration

6.3.3 Functions of Finance Operations 6.3.4 Milestones and Achievements 6.3.5 Completed Activities

6.3.6 Activities on Track for Completion

6.3.7 Activities to Commence After November 1, 2009 6.4 Information Technology Integration

6.4.1 Scope of Integration

6.4.2 Functions of Information Technology Operations 6.4.3 Milestones and Achievements

6.4.5 Completed Activities

6.4.6 Activities on Track for Completion

6.4.7 Activities to Commence After November 1, 2009 6.5 Legal Integration

6.5.1 Scope of Integration

6.5.2 Functions of Legal Operations 6.5.3 Milestones and Achievements 6.5.5 Completed Activities

6.5.6 Activities on Track for Completion

6.5.7 Activities to Commence After November 1, 2009 6.6 Human Resources Integration

6.6.1 Scope of Integration

6.6.2 Functions of Human Resources Operations 6.6.3 Milestones and Achievements

6.6.5 Completed Activities

6.6.6 Activities on Track for Completion

6.6.7 Activities to Commence After November 1, 2009 Table of Contents,cont.

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6.7 Organizational Structure and Culture 6.7.1 Update on Organizational Plan 6.7.2 Enterprise Services Model

6.7.3 New Offices and Functions Created by Chapter 25 Acts of 2009 6.7.4 Consolidated Real Estate Services

7.0 Other Transition Implementation Efforts 7.1 Aeronautics Division

7.2 Registry Division 7.3 Transit Division

8.0 Structure of MassDOT on November 1, 2009 9.0 The Long Term; After November 1, 2009 10.0 Appendix

10.1 Governor Patrick’s Vision for Transportation Reform 10.2 MassDOT Organizational Structure

10.3 Mobility Compact Annual Report; October 2008 10.4 Mobility Compact Current Structure

10.5 Roadway Notification Form 10.6 Website Developers Page

10.7 Office of Transition Management - Integration Teams & Subcommittees 10.8 Office of Transition Management - Tools & Processes

10.9 Commonwealth of Massachusetts Highways 10.10 Massachusetts Highway Department Scorecard 10.11 Employee Engagement

10.12 Culture Assessment

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Table of Contents,cont.

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The Commonwealth of Massachusetts

Executive Office of Transportation and Public Works Executive Office for Administration and Finance

Office of Transition Management 90 Day Integration Report

September 2009

1.0 Introduction

In June 2009, Governor Deval Patrick signed Chapter 25 of the Acts of 2009, “An Act Modernizing the Transportation Systems of the Commonwealth of Massachusetts, (as amended by Chapter 26 of the “Act.”) This landmark transportation reform legislation requires that the Commonwealth inte- grate transportation agencies and authorities into a new, streamlined Massachusetts Department of Transportation (MassDOT) to be established by November 1, 2009. The organization will oversee four new divisions: Highway, Mass Transit, Aeronautics and the Registry of Motor Vehicles (RMV), in addition to an Office of Planning and Programming. MassDOT will be administered by a

Secretary of Transportation, appointed by the Governor to serve as Chief Executive Officer.

A five-member Board of Directors appointed by the Governor with expertise in transportation, finance and engineering will oversee the new organization, while serving as the governing body of both MassDOT and the Massachusetts Bay Transportation Authority (MBTA), which will be part of MassDOT but will retain a separate legal existence.

The Massachusetts Department of Transportation is a merger of the current Executive Office of Transportation and Public Works (EOT) and its divisions with the Massachusetts Turnpike Authority (MTA), the Massachusetts Highway Department (MHD), the Registry of Motor Vehicles (RMV), the Massachusetts Aeronautics Commission (MAC), and the Tobin Bridge, currently owned and operated by the Massachusetts Port Authority (MPA). In addition, the Massachusetts Bay Trans- portation Authority (MBTA) and Regional Transit Authorities (RTA) are subject to oversight by the new organization. The new organization will also assume responsibility for many of the bridges and parkways currently operated by the Department of Conservation and Recreation (DCR).

This report complies with Section 149 of the Act, which requires that, ninety days after the effec- tive date of the Act and quarterly thereafter until the transition period is complete, a report to the Governor, the Secretary of Administration and Finance, the Joint Committee on Transportation, the Senate and House Committees on Ways and Means, and the Clerks of the Senate and the House of Representatives, shall be filed relative to the progression of the incorporation of the agencies and authorities into the new organization. The report shall include, but shall not be limited to, plans for the assignment and reassignment of resources including personnel, equipment and supplies into the Massachusetts Department of Transportation. The report shall also include the status of the

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transition of roads, bridges, designated parkways and any other transportation assets of the MTA, MPA, the DCR, and MHD and shall further include approximate schedules for the completion of the transition.

1.1 Governor Patrick’s Vision of Transportation Reform

On February 20, 2009, Governor Deval Patrick announced his vision for a comprehensive reform plan to radically transform the Commonwealth’s transportation system, while addressing serious fiscal challenges stemming from decades of neglect and inaction, and a failed bureaucracy under the “Big Dig” culture. Governor Patrick’s Transportation and Economic Security Plan incorporated recommendations from the Transportation Finance Commission Report that uncovered decades of inaction and neglect under previous administrations. The report documented that the

Commonwealth's transportation system faces a significant funding gap in the next 20 years to maintain the current network of roads, bridges and transit for safe, reliable service. After receiving this report in 2007, Governor Patrick started to develop a plan to secure the Commonwealth’s economic future and maintain safety of the state’s roads and bridges.

Under Governor Patrick’s leadership, the transportation agencies and authorities generated more re- form savings and efficiencies, while working on a long-term reform plan. Those reforms included joining 49 other states in using civilian flaggers rather than police details on construction projects, streamlining project delivery time at MassHighway by 40%, saving $47 million at the MBTA by re- ducing overtime costs and staff levels and increasing employee health care contributions, and saving

$31 million at the Turnpike by eliminating middle management and toll takers, and with the legisla- ture’s support, launching the Accelerated Bridge Repair Program to address the backlog of mainte- nance projects left by previous administrations.

In spite of these efforts, it was also necessary to implement reforms that radically simplified the current system to build a modern transportation network that is adequately funded and profession- ally managed to help secure our economic future. An initial transportation plan was authored by the Senate. Governor Patrick and his transportation team put forward a comprehensive reorganization plan that would build a unified and transparent transportation system through a number of reforms.

The House followed with its own plan. Each party later worked closely together to a craft a final product which includes much of the Governor’s vision. (Appendix 10.1 Governor Patrick’s Vision for Transportation Reform)

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2.0 The Vision, Mission, and Goals of MassDOT Moving Massachusetts Forward…

One vision to build a unified transportation organization that strengthens communities and encour- ages economic development by making long-term investments that move people and goods effi- ciently and safely throughout the Commonwealth.

One mission to deliver safe and efficient transportation services across the Commonwealth by building a culture of innovation and respect that makes customer service and public safety top prior- ities. We will be fair to all transportation users by making regionally-equitable and generationally- responsible investments that expand mobility, spark economic growth, improve public health, and that support a clean environment and stronger communities.

We will focus on three primary goals:

• Respect: We will provide efficient, courteous and high quality customer service and restore public trust by creating an open and transparent transportation organization that is accountable and responsive to those who work, live in and visit the Commonwealth of Massachusetts.

• Innovation and Accountability: Through a culture of innovation and accountability we will deliver the most efficient transportation services and information possible.

• Future Growth: We will leverage transportation projects to spark economic development, encourage private sector investment and support more livable communities. Transportation services and investments will balance the needs of all users -- transit riders, bicyclists, drivers and pedestrians.

2.1 Creating a New Integration Culture

To achieve MassDOT’s vision and mission, and to ensure MassDOT employees are committed to the organization’s primary goals, management is driving a change in transportation culture, focused on the three broad themes.

• ONE: One government, one transportation agency, one mission.

• CUSTOMER SERVICE: A renewed focus on the transportation user and becoming more responsive to their needs.

• SAFETY: Employee safety and public safety are top priority.

2.2 Overview of MassDOT

MassDOT is an independent authority and component organization of the Commonwealth. It is governed by a five member board and headed by a Secretary. While it has an existence separate and apart from the Commonwealth, the Act requires that it maintain several agency-like features, including the use of the Commonwealth’s central accounting system (MMARS) and its payroll

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system. MassDOT will feature a central office, referred to as the Office of Planning and Program- ming in the Act, that will house the central administrative functions of the organization, including a central planning office to be known as the Office of Transportation Planning.

The transportation agencies and authorities that will be merged into MassDOT currently include more than 4,000 employees, represented by 11 separate bargaining units. The highway agencies and departments employ 3,250 employees, the RMV employs approximately 800 employees, and the Aeronautics Division employs 13 employees. The current estimated FY2010 total budget for em- ployees, including pay and benefits is approximately $360,000,000. Including the 6,000 plus em- ployees at the MBTA, MassDOT will oversee more than 10,000 employees. MassDOT will also absorb an annual operating budget of over $459 million and a capital budget of over $1.88 billion.

When the full integration is completed, the new highway division will be responsible for 9,517 lane miles of roadway, representing 3,009 linear miles. It will include at least 95,000 catch basins and 5,560,400 feet of guardrail, 450,000 signs, 1,547 traffic signals, and 542 flashing beacons. It will be serviced by 133 maintenance depots and 65 fueling sites, 214 salt sheds using 662,022 tons of salt each year. It will monitor approximately 1,000 traffic and facility security cameras and post infor- mation on 374 message boards and signs.

MassDOT will be responsible for 5,098 bridges, including the Tobin and Zakim Bridges, and employ 39 bridge inspection teams, and 4 underwater “dive” teams. It will be responsible for 7 tunnel systems, including 65 lane miles or 27 linear miles of tunnel structure, including ramps.

The tunnels will be supported by 14 ventilation buildings and 7 fan rooms and 215 Supply/Exhaust Fans and require 60,000 lamps and 7,000 UPS batteries. The tunnels will use 100 million Kilowatt Hours (KWH) of electricity per year. The new organization will also operate 40 water pump stations in tunnels and roadways.

On the toll roads, there are 1.3 million private and commercial FAST LANE transponders used by motorists. Over 230,000 transponders have been issued since they were offered free of charge in February 2009, and there have been over 83 million separate electronic toll collection transactions and over 41million manual cash toll transactions in the first 8 months of 2009. The toll roads include 11 service plazas and 11 Park-N-Ride lots.

The RMV Division will be responsible for licensing 4.68 million drivers and registering 5.82 million vehicles and the inspection of 9,000 school buses three times a year. It oversees more than 1,600 commercial and non-commercial inspection stations, which conduct safety and emission checks on over 4.4 million vehicles a year. The division certifies more than 403 driving schools and 1785 driving instructors. It recycles more than 90 tons of aluminum from registration plates a year.

The RMV also handles more than 1.5 million transactions a year through the Internet and more than 3.9 million transactions at its branches.

The Aeronautics Division will have jurisdiction over the Commonwealth's 37 public use airports, including 24 which are publicly owned and 13 which are privately owned, 2 seaplane bases, and 184 private use landing areas. (Appendix 10. 2 MassDOT Organizational Structure)

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The Act mandates the formation of the Office of Transition Management (OTM). The OTM is staffed by the EOT and the Executive Office for Administration and Finance (EOAF) and is supported by outside contract personnel. The purpose and mission of the OTM is to develop short and long term plans to integrate the facilities and personnel of the major transportation systems of the Commonwealth of Massachusetts into one organization, and to monitor and steer progress toward that integration.

The short term objective of integration is to establish a functional organization on November 1, 2009.

“Day One” goals include implementation of a consolidated highway map, the launch of a customer focused MassDOT website, payroll and email consolidation for all employees,

and the use of a single Chart of Accounts to support financial accountability. These fundamental yet significant goals will provide the platform to pursue MassDOT’s long term vision.

The ultimate goal of integration is to create one transportation enterprise where employees work collaboratively to implement change and deliver transportation services more efficiently.

The integration effort seeks to build a new transportation organization and culture that provides streamlined service delivery. The effort requires the identification of best practices within and outside the enterprise, with a priority on organizational efficiency, in support of its mission to provide a safe, efficient, and courteous experience for the public using the state’s

transportation system.

The Act will enable cost efficiencies through credit rating enhancements, salary & benefits alignment, operations consolidation, and the use of commonwealth systems and capabilities.

Improved MTA credit ratings have already generated substantial savings (see section 5.2).

The transfer of MTA and MBTA employees to the state's Group Insurance Commission health plans, which will save the Commonwealth an estimated $30-$40 million annually, will begin with GIC enrollment on November 1 for the first group of MTA employees required to transfer by the Act. Additional efficiencies are expected through the consolidation of highway operations and integration onto the state’s accounting and payroll systems.

The integration effort has progressed with the recognition that in some respects the new organization will operate as an independent authority of the Commonwealth using a business enterprise model to support its long term development. A requirement of the Act, for example, will be the use of performance management techniques, requiring a focus on outcomes and results, and renewed attention to measuring the return on investments. At the same time, the new organization will also function as part of the Commonwealth’s governance structure and adopt certain state agency characteristics, including the use of the state financial systems and human resources platform. These state agency features are designed to support financial accountability and the benefits of economies of scale.

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There are challenges in building an organization to meet statutory requirements of government while adopting the best practices of a business enterprise. There are, moreover, significant challenges when integrating independent organizations that have their own unique histories, cultures, and business practices. The work to achieve this with transportation reform is now well along.

It is important to recognize, however, that this integration is a monumental undertaking unprecedented in the history of the Commonwealth with respect to the depth and scope of the consolidation, the number of public servants impacted, and the number of functions, assets, networks, systems, programs, policies and procedures that will need to be integrated and maintained. Put another way, the issues facing the Commonwealth’s transportation system took a long time to develop and will take some time to fix. But we have begun. The integration effort is focused on making real changes for the long term, with the recognition that, by

maintaining a consistent focus on the vision, mission and goals of MassDOT, continuous positive progress will be made, and continuous positive progress will be realized.

The legislature approved $1 million in funding for the OTM. These funds are currently being allocated to EOT and EOAF staff dedicated to the effort, support from outside consultant Accenture, additional resources for back off systems consolidation, and additional resources in support of job classification and related efforts. A detailed breakdown of costs will be available on November 1, 2009.

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4.0 Recent History of Transportation Reform

Chapter 196 of the Acts of 2004 initiated transportation reform in the Commonwealth and mandated meaningful actions to enable enhanced coordination between transportation agencies and authorities. The legislation set the stage for current activities related to the development of MassDOT and required transportation agencies and authorities to identify potential opportunities to reduce duplication, enhance coordination, promote administrative savings and implement improvement initiatives. The concepts behind shared services were implemented through the consolidation of administrative functions within the Executive Office of Transportation, and the transfer of the Registry of Motor Vehicles to the EOT. The legislation also provided new authority to the Secretary of Transportation to better coordinate and oversee transportation planning and operations throughout the state.

Through the 2004 legislation, the EOT established a Transportation Coordination Steering Committee to oversee implementation of the law’s requirements. In addition, a new unified Office of Transportation Planning was organized allowing all modes of transportation to be incorporated into the planning process, and a new performance measurement system was established to monitor monthly progress reports on construction projects throughout the state.

Other features of reform included decentralization within the MHD which transferred operating authority to its five highway districts. A Project Management Section was tasked with ensuring uniformity in project design, oversight, and remediation and the development of standards for traffic management planning and contracting across the districts. In addition a new EOT web site was developed to serve as a single one stop location for transportation information Other technology initiatives included the provision for instantaneous wireless resident engineering reports and electronic trucking permits.

4.1 The Massachusetts Mobility Compact

On July 17, 2007, Governor Deval Patrick signed Executive Order 488, creating the Massachusetts Mobility Compact. The order was also signed by the heads of each of the transportation agencies and authorities that oversee transportation in the Commonwealth with the goal of improving mobility, implementing efficiency, and adopting best practices. The work of the Mobility Compact since 2007 continued to build upon the legislation executed in 2004 and continued the process of identifying many of the real opportunities for change and transformation in the transportation bureaucracy being developed today.

4.2 Summary of October 2008 Mobility Compact Annual Report

The Mobility Compact was created to enhance the delivery of transportation in the Commonwealth through improved communication, coordination and resource sharing between agencies and authorities. The Compact was developed with a mission to (1) increase mobility for people and goods within and throughout the Commonwealth in a safe, secure, environmentally sustainable and efficient manner, (2) promote and adopt administrative efficiency and program improvement initiatives, and (3) share best practice techniques for implementation across transportation modes.

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Monthly meetings with the chief executive officers of the Compact agencies and authorities served as a clearinghouse for innovative ideas as well as a place where policy decisions impacting the transportation system could be made. These meetings also helped strengthen relationships and provided critical building blocks toward a greater understanding of agency roles, mission, and responsibilities across the state transportation system. (Appendix10.3 Mobility Compact Annual Report; October 2008)

4.3 Mobility Compact Working Groups

In addition numerous working groups were created with membership from each of the member agencies and authorities to work collaboratively and to identify specific reforms that could streamline and improve the transportation system. Those working groups included the following;

Legal, Security Planning and Emergency Preparedness, Information Technology, Finance, Environmental/Energy, Human Resources, Diversity, Asset Management and Facilities, Chiefs of Staff, Labor, Operations, Procurement, Chief Engineers, and Legislative.

The Mobility Compact also produced several significant initiatives, including a Cost Sharing Plan whereby financial assistance would be provided to the MBTA and the MTA from the MHD and MPA, amounting to over 13 million dollars for these authorities. Another initiative was a program to increase the use of FASTLANE transponders by making them available at RMV facilities and requiring their use by all taxis using toll roads, bridges and tunnels. The Compact also explored the use of a single inter-modal payments and collection system for all fees, fares and tolls of the transportation system.

One of the working groups was Security Planning and Emergency Preparedness, established to develop a common transportation approach to incident and emergency management, response and recovery in support of the Compact’s commitment to public safety. The Working Group developed a plan to integrate the MTA Operations Control Center with the MHD Traffic Operations Center, which is being implemented today. This Working Group also identified Homeland Security Funds that could be utilized across different agencies for the procurement of new technologies to enhance interagency situational awareness through video sharing. It also worked closely with the Massachusetts State Police to identify critical traffic control points in the Boston area that would need resources in the event a planned evacuation of the city was activated, and initiated the first transportation Expanded Interagency Table Top Exercise (EITTX) in December 2008 to assess preparedness for an escalating emergency. This Working Group also initiated the use of a common approach across the agencies with respect to the development of emergency plans and procedures, the design and conduct of emergency management training and exercises, and the identification of vulnerabilities and mitigation strategies associated with critical transportation assets. Currently the Working Group is designing a new series of exercises that will build upon the Table Top Exercise conducted in December 2008. (Appendix 10.4 Mobility Compact Current Structure)

Another significant reform implemented through the Compact was the promulgation of regulations to allow road flaggers rather than police details to provide traffic controls on public works projects, with an estimated savings of $5 million construction a year. The Compact member agencies also

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initiated a partnership with the Office of the Attorney General to reduce fraudulent claims, create cost savings and restore public confidence in construction contracting. Other projects included de- velopment of an internet-based project coordination software system and consolidated advertising across the different agencies.

The Compact also explored instituting better recycling and energy reduction programs within each agency, developing interagency coordination on procurement contracts, utilizing design/build contracts to achieve cost savings, developing incentives for timely and efficient contract perform- ance, and coordinating engineering expertise from the different organizations for major construction projects. In the end, the Compact identified ways that costs could be shared across different agen- cies, and instituted various projects to enhance service delivery and share resources that serve as the cornerstone of the current MassDOT integration effort.

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5.0 Reform Achievements to Date

While the Act mandates specific integration of operations and systems across the different trans- portation organizations that are documented later in this report, it also served to generate a renewed awareness of reform and created an environment where people could consider other approaches that could be taken to comply with the intent of the legislation and the new vision and mission of the or- ganization. Some of those new achievements may not be part of the legislative requirements, but are directly related to the legislation and support the intent of transportation reform.

These initiatives are the direct result of leadership utilizing a basic management approach to coordi- nate interagency communication around different issues as integration efforts mobilized. They were identified and advanced merely through common ground communication afforded through the creation of a Highway Division Integration Team within the MTA and a Management Integration Team within the EOT. When the reforms are fully implemented, MassDOT aims to be the best transportation organization in America. All employees of all agencies have been encouraged by leadership to dream of what is possible in this new environment, to communicate their knowledge, objectives, and results to others, and to delegate to co-workers and subordinates. Taken together, this top down and bottom up approach is achieving results.

Another key effort at reforming the way transportation agencies provide information to the public is the MHD ScoreCard launched on its web site in April of 2008, giving the public regular updates on performance as measured across numerous categories. As part of the Patrick Administration’s com- mitment to accountability, transparency, and performance based management, the MHD ScoreCard reports quarterly on such items as the progress of MHD projects, condition of pavement and bridges, and safety. The next ScoreCard is scheduled to be released in early October 2009 and will be avail- able on the MHD website. This project has been expanded to include other agencies and authorities that will be part of the MassDOT organization. In December of 2008, EOT published a ScoreCard on performance measures at its agencies covering MHD, EOT Rail, the MBTA, MTA, and MPA.

This is the first report of its kind on performance at all EOT agencies. MassDOT will build on the success of these efforts by expanding the use of performance measures and performance management across its divisions. The innovative initiatives outlined below will be part of regular Score Card updates.

5.1 Integrating Control Center Operations for a Safer Highway

In support of the goal of creating one transportation organization, on September 18, 2009, the MTA Operations Control Center and the MHD Traffic Control Center were co-located within a single fa- cility. Tobin Bridge traffic cameras were also redistributed to the combined facility in South Boston.

From this single location, operators of the state’s bridges, tunnels and surface roadway systems can now share images and information and communicate directly regarding incidents that may impact different operations.

The communications link between the Tobin Bridge and the new Highway Operations Control Center required the installation of cable linking the two assets to include a video and data link to

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provide operational efficiencies in the categories of roadway safety, security, and event response.

It will also allow for an anticipated financial and administrative data stream from the Tobin Bridge to the new organization.

All of the work was accomplished by in-house electrical, communications and operations personnel from the MTA, MHD, and MPA working closely to plan and execute the move. Operators can mon- itor several major state highways and facilities and detect and report incidents. Sophisticated elec- tronic systems manage and respond to more than 50,000 annual traffic and facility events.

The new combined Operations Control Center is staffed 24 hours a day to monitor traffic and pro- vide quick incident response. Operators monitor the I-90/I-93 system of tunnels, ramps, bridge, and surface roadways in the Metropolitan Boston area, including the Sumner, Callahan, Prudential, and City Square tunnels, I-93 from Somerville to Canton, I-90 West to the New York border, Interstate 95 from Westwood to Wakefield, Route 3 from Burlington to the New Hampshire border and the mainland side of the Sagamore Bridge in Bourne.

5.2 Upgrading MTA Bond Ratings

The Commonwealth avoided a termination payment of approximately 190 million dollars as a direct result of the Transportation reform legislation. The additional Commonwealth assistance pledged to the MHS outstanding subordinated debt contributed to the upgrade of the MTA subordinated bond rating. As a result of the upgrade, the MTA was able to avoid the termination of four interest rate swap agreements, which would have resulted in a payment of approximately 190 million dollars.

The MTA continues to work with financial institutions on an agreement regarding a fifth swap agreement presently valued at approximately 71 million dollars.

5.3 Reforming Traveler Information

The Federal Communications Commission designated 511 as the single traffic information tele- phone number for use by states and local jurisdictions on July 21, 2000. Since then, 27 states nation- wide have launched 511 services to benefit travelers. Traveler information systems help reduce travel times, decrease fuel consumption, and reduce the number of accidents to benefit regional economies, reduce vehicle emissions, and improve air quality. 511 Massachusetts was launched on October 15, 2007 and provides real time traffic, transit, weather, construction, and event information for Eastern Massachusetts. However, because of the substantial cost of operating the system, EOT has undertaken a full cost/benefit analysis of existing and proposed 511 services.

After a full review, EOT has decided to solicit a “turn-key” service that will replace the existing 511 phone service while minimizing cost to the Commonwealth. At a savings of at least 4 million dol- lars compared with operating the system on its own, the turn-key service will continue to provide a high-level of traveler-information while leveraging private-sector investment. The solicitation will encourage providers to submit bids that (1) integrate advertising into the service and, (2) provide op- tional premium services made available to 511 end-users at a cost to the customer. This new 511 procurement fits with the vision for transportation reform because it lowers costs while continuing

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to provide an important service to drivers, moves toward a vision of government as a wholesaler of information rather than a retailer of information, and takes advantage of MassDOT’s consolidated construction information from current MHD, MTA and DCR roadways.

5.4 Improving Roadway Notification Process

Effective August 13, 2009, the MTA and MHD began using a single electronic roadway work notifi- cation form to collect information regarding planned surface road work in 7 MTA Regions and 5 MHD Districts for the upcoming week, and to share that information with the public using Massa- chusetts roadways. The forms are electronically forwarded to the MHD Transportation Operations Center (TOC) for entry into the MHD Event Reporting System (ERS) and to providers of traveler information services. This process allows both agencies to internally access ERS to view all

planned surface roadway activity for the coming week, and allows service providers to use the infor- mation to develop electronic feeds to different media outlets. The MTA’s Public Information Office uses the ERS information to generate reports to a broader pool of media outlets. (Appendix 10.5 Roadway Notification Form)

5.5 Open Data Initiative to Improve Online Customer Service

In July 2009, the EOT launched the Developers Page on its website as part of the Patrick Adminis- tration’s commitment to creating a modern, efficient, and customer-friendly transportation system.

The EOT Developers Page (www.mass.gov/eot/developers) provides information and data from Massachusetts’ transportation agencies and authorities that would be useful to developers interested in creating mobile phone and web-based applications that will deliver information more efficiently and effectively to customers. Data released through the Developers page includes MBTA and RTA route and schedule data, MHD and MTA planned construction event data, RMV branch wait time feeds and a variety of other information. EOT is engaging developers in new ways as part of Gover- nor Patrick's Civic Engagement agenda to encourage creative opportunities for citizens to engage state government. The EOT Developers use Twitter for updates, a Google Group, and regular meet- ings to engage developers. In less than two months, more than five applications have been built using this data. (Appendix 10.6 Website Developers Page)

5.6 Providing Drivers and Commuters Access to Traffic Cameras

As part of the commitment to transparency and innovation, MHD and MTA traffic cameras have been made available for public viewing on their respective websites, providing a critical tool for busy travelers to use as they plan their road-trips. Media outlets are provided with electronic data feeds of the cameras so they can be integrated into existing media websites and traffic web pages.

MHD’s live traffic cameras are available online at: www.mass.gov/511/cameras

MTA’s live traffic cameras are available online at: www.masspike.com/travel/cameras.html These cameras were developed at essentially no cost to the Turnpike because a team of employees recycled cameras left over from the Central Artery/Tunnel project.

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5.7 Relocating RMV Facilities and Expanding Services

In August, the RMV opened the doors of a new branch on the MTA’s Eastbound Charlton Service Plaza to replace the now closed Southbridge branch. The move heralds a new business model that the RMV and sister transportation agencies will implement to create a more efficient transportation organization to deliver one stop shopping customer service by using under utilized space when possible. The RMV’s new customer service initiative saves $1.78 million by closing high cost branches and moving to vacant or underutilized facilities owned and operated by the other

transportation agencies. The original pilot program to increase the use of FASTLANE transponders by making them available at RMV facilities has been expanded to include the MBTA Charlie Card at over 10 RMV facilities.

5.8 Consolidating Resident Discount Programs

The MTA and MPA have updated and combined their separate Resident Discount Program applica- tion forms into one. In the past, both agencies sent out separate application and renewal notices to qualifying residents. In addition, the two agencies have combined their Annual Resident Discount Renewal Postcard into one resulting in a savings of approximately $200 a month in printing costs.

This postcard is sent out each year to qualifying residents of Chelsea, Charlestown, East Boston, South Boston, and the North End.

5.9 Integrating Toll and Fare Currency Operations

In July, 2009, the MTA and the MBTA signed a Memorandum of Understanding providing for the MBTA to pick up and count MTA daily cash receipts. Currently, the MBTA maintains its own money counting operation to handle it large volume of daily cash receipts. By utilizing this existing service rather than continuing its existing money counting contract, the MTA will save approxi- mately $500,000 annually.

5.10 Fostering Other Collaborative Engagements

• The RMV, MTA, MHD, MBTA, and MPA are developing a collaborative customer service plan and approach to begin implementation on November 1st.

• A website task force has developed a web design, content and online communications action plan and timeline in order to launch a new customer-focused website on November 1st.

• The Human Resources Departments of EOT, MTA and Tobin along with Communications Departments have been working together to develop and administer an active Employee Engagement Program for the Transportation Integration.

• MTA communications will be assisting wiring at the RMV locations, as currently these services are outsourced to private entities.

• MTA, MBTA, MHD, DCR, MHD have developed an interagency notification protocol for incidents in their jurisdictions that reach a critical threshold, allowing for coordinated response.

• The Tobin electronic toll collection connectivity will be integrated into MTA’s Electronic Toll Collection Systems.

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6.0 Transition Implementation

The Office of Transition Management (OTM) was mandated by the Act and was organized in June 2009 to manage all transition activities. It is staffed by representatives of the EOT and EOAF, and is working closely with a management consulting firm to assist in the transition. An Executive Steer- ing Committee, chaired by the Secretary of EOAF and the Secretary of EOT, has been established at the OTM to identify the short term and long term priorities of the organization, develop the structure of the shared services component of the new organization, and to coordinate information sharing across the different agencies impacted by the transition. It oversees the work of 10 integration teams and over 60 subcommittees collaborating collectively on the integration effort involving over 300 employees. Those integration teams include the following; Highway, Finance, Comptroller, Bene- fits/Human Resources, Group Insurance Commission, Information Technology, Legal, Organization Design, Public Affairs, and Labor. (Appendix 10.7 Office of Transition Management- Integration Teams and Subcommittees)

6.1 Consultant Services

The OTM has secured the services of Accenture LLP (Accenture) to provide project management and planning services in support of the state’s ongoing efforts to implement the Act. This includes the following deliverables:

• Project Management Office (PMO) Plan – The PMO plan outlines the project team structure and project management tools and processes.

• PMO Operations Support - Accenture resources will assist the Commonwealth with PMO operational activities leveraging the project team structure and project management tools and processes outlined in the PMO Plan.

• Day 1 Integration Project Plan - The Day 1 Integration Project Plan provides a consolidated list of the milestones for the November 1, 2009 and January 1, 2010 integration target dates.

• Day 1 Integration Project Plan Support - Accenture resources will assist the Commonwealth in tracking status of the milestones in the Day 1 Project Plan.

• Change Management Communications Plan Recommendations – Accenture resources will provide a document outlining the high level recommendations for initiating a change man- agement and communications plan specific to the integration effort.

• Shared Services Recommendations – Accenture resources will provide a document outlining the high level recommendations for the effort to build a shared services model for the MassDOT.

(Appendix10.8 Office of Transition Management- Tools and Processes)

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6.2. Functions of the Highway Division

All Highway Division functions will be consolidated and managed by a Division Administrator.

The division will have numerous functions administered by various departments. This division will be responsible for the efficient management of facilities maintenance, motor equipment operation, the Highway Operations Control Center (OCC), tunnels maintenance, roadway maintenance, engi- neering communications, and commuter services. The division will also perform a variety of main- tenance services, including fleet repairs and maintenance, roadway repairs and maintenance, landscaping, and snow removal. This division will be responsible for the transition of construction sites into operational elements of the roadway structure. It will also be responsible for the develop- ment and maintenance of the new organization’s communications and electronics infrastructure.

The Highway Division will also be responsible for the administration of design and construction projects, the provision of engineering services including structural and environmental engineering, occupational safety practices, the development of contract specifications, and overseeing consultant, design, and construction services. The division will also perform a variety of services, including permitting and inspection services, damage assessments, environmental assessments and oversight of contract closeouts and claims. It will also be responsible for a variety of functions including detour routing, traffic signal control, sign design and traffic management planning.

The new division will also be responsible for oversight of the OCC which manages a 24 hour roadway conditions and incident monitoring system, various automated roadway operating systems, and disseminates information on roadway conditions and incidents to all elements of the organization, utilizing traffic management systems, surveillance systems, and communications protocols through established internal and external networks. Through the OCC, the division plays a critical role in managing incident communications, utilizing an established internal communication network that provides standardized situation reports to division managers, throughout the course of incident response and recovery. The OCC, in response to specific monitored or reported incident or emergency conditions, is also responsible for adjustments, modifications, and reconfigurations of automated operating systems that will augment conditions in critical roadways and facilitate efficient emergency mitigation and response. This department of the division plays a critical role in ensuring the appropriate deployment of public safety and Engineering and Maintenance personnel to an incident, by interacting and sharing vital information regarding an incident’s condition throughout the organization.

A central component of the transportation legislation is to develop a performance-based manage- ment model. This means that the division should ensure that it understands its assets, both personnel and physical, and resources. It will then use this knowledge to make well- informed decisions on how to invest in and operate the highway system.

The unified Highway Division will be focused on customer service throughout all the departments and units of the division. It will also ensure that workplace and public safety is ingrained into all aspects of the division.

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6.2.1 Highway Division Integration

The Highway Integration Team is responsible for merging the facilities and personnel of the major highway systems of the Commonwealth of Massachusetts into one fully integrated system.

The Highway Integration Team’s mandate is to build the foundation for the new highway entity to become the premier public highway organization in the country. The objective of the team is to combine in an efficient manner the assets of the various state highway agencies within the Commonwealth, streamline the day-to-day operations of the highway agencies, to take advantage of central administrative services provided by the Office of the Secretary, and to develop and manage division activities according to a system of performance measures.

The Highway Integration Team structure includes a Project Manager reporting to the Executive Director of the MTA. There are five subcommittees working with the Project Manager, including the following; Engineering / Design, Tolling Operations, Management, Administration, and Finance.

There are another 45 working groups or subcommittees with specific tasks associated with creating the structure of the Highway Division.

The team has been building a work plan to guide all functions to be performed by the single division on Day One of the integration, designates new division boundaries, and identifies critical issues that may warrant the development of contingency plans. The work plan is to be divided into tasks capable of being achieved immediately, within the first 100 days of the integration, and within one year and 5 years of the integration. Other tasks include the development of a blueprint to guide the integration of toll operations into the new division boundaries. The team has also been developing a plan to address the unique maintenance issues associated with incorporating the Tobin Bridge into the division, and the need to ensure the transfer of knowledge associated with its infrastructure, along with capital project considerations. The team has been working to transfer significant

resources and assets from DCR in a manner that ensures that DCR is not hampered in carrying out its core mission.

The Highway Integration Team has identified over 100 different integration activities to be competed before, during and after November 1, 2009. It has completed 14 activities as of the date of this report, and is on track to complete an additional 70 activities by November 1, 2009.

Four activities are subject to diligent remediation efforts to ensure completion by scheduled dates.

An additional 16 activities are scheduled for completion through the integration process to commence on November 1, 2009.

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6.2.2 Scope of Highway Integration

In 2007, there were a total of 71,383 lane miles of roads in the Commonwealth. The MHD is re- sponsible for maintaining 12.3% of the lane miles primarily along interstates and arterial roadways.

The DCR and MTA, and other state and federal agencies are responsible for another 3% of the lane miles. The majority of roadway lane mileage in the Commonwealth (77%) is under jurisdiction of local communities. The remaining percentage is private roadways.

The four roadway departments that will provide bridge assets to MassDOT oversee a total of 3,400 bridges. Of the two state agencies, MHD currently owns 84% of these bridges and DCR owns 3%.

The MTA owns 13% and MPA owns the Tobin Bridge, the only stand-alone tolled bridge in the Commonwealth. Currently, MHD maintains a bridge management system to collect information re- garding the condition and status of each of the bridges in its inventory. In addition to state owned bridges, the inventory also tracks 1,560 municipally owned bridges.

The Accelerated Bridge Program (ABP) was established by chapter 233 of the Acts of 2008 to stim- ulate the economy by creating thousands of jobs and to reduce the number of structurally deficient bridges by investing $3 billion over eight years. The program includes approximately 190 projects statewide including every area of the state and every type of bridge. Among the 190 projects are 32 DCR bridge projects, including the Longfellow Bridge. While the Acts specifically listed 14 bridges that could remain under DCR control until construction is completed or by December 2014 at the latest, the highway team has determined that it is best to transfer the management of those projects to MassDOT as of November 1, 2009.

6.2.3 New Highway Division Boundaries

The new Highway Division is working on a plan to consolidate eight existing MTA depots and five MHD districts into new regions of the Commonwealth. Each region will be under the direction of a director, reporting to the Division Administrator. Each region will be responsible for the oversight maintenance and construction activities within its jurisdiction, design and engineering, traffic man- agement plans and emergency detour plans, and the provision of engineering support to cities and towns within the region. The regions will be divided into a number of functional sections including, maintenance, construction, bridge operations, traffic management, permitting and other sections per- forming a variety of responsibilities. (Appendix 10.9 Commonwealth of Massachusetts Highways) 6.2.4 Milestones and Accomplishments

The Highway Integration Team has established goals for the first day of the new organization, in- cluding the development of a new division organization chart within the new boundaries to be com- pleted by November 1, 2009. The first completed milestone of this integration plan is the

integration of the MHD Traffic Operations Center into the MTA Operations Control Center and completed installation of fiber optic cable from the Tobin Bridge to the new Highway OCC to en- sure seamless transfer of operations.

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These and other achievements will be highlighted in the next MHD ScoreCard report. MHD launched the ScoreCard on its web site in April of 2008, giving the public regular updates on per- formance as measured across numerous categories, from pavement condition to construction com- pletion. The summer 2009 ScoreCard is an appendix to this report; all past and future editions are on the MassHighway website. (Appendix 10.10 Latest Massachusetts Highway Department Score- card; to be updated October 2009)

6.2.5 Completed Activities

As of the date of this report, the Highway Integration Team has integrated MTA and DCR phone numbers into the transportation network and integrated DCR Accelerated Bridge project data into project management systems. The team has also completed review of current practices, policies, and procedures for accident recovery, and has adopted standard operating procedures. As noted previ- ously it has also initiated integration of the MTA and MHD Control Rooms as a combined Mass- DOT Operations Control Center, including Tobin Bridge operations. With respect to the new regions of the division, the team is working to identify locations of facilities and resources that would be assigned to these new regions. The team has also documented current capital funding pri- orities for each of the agencies and has proposed procedures for addressing those priorities. It has completed a review of the MTA Event Classification System for integration with the MHD Event Reporting System, and has reviewed current practices taken to protect information regarding critical infrastructure, and has completed an outline of a proposed new policy.

6.2.6 Activities on Track for Completion

The Highway Integration Team has identified numerous complementary tasks that are on track for completion by November 1, 2009. Those activities include the development of a snow and ice plan for the upcoming winter season, including procedures for purchase authority for snow and ice re- moval materials. Various subcommittees are also working on completion of multiple inventory ac- tivities, including inventories of tunnels and associated systems, facilities and buildings, fiber and network infrastructure, vehicles owned by each of the agencies, customer service and travel facili- ties, plazas, and rest areas, fueling facilities, and fire protection and detection systems. This effort in- cludes identification of the wide variety of maintenance issues for each inventory.

To consolidate project data and asset management tracking, the team is working to review current software systems utilized, exploring the integration of information from the different agencies into a common database, the transfer of information and/or the linking of databases. The group is also planning to produce a needs assessment study of asset management practices and protocols, and the formal adoption of a policy regarding the protection of security sensitive information.

The Team is also working to integrate data regarding assets into consolidated databases, including bridges, roadways, parkways, tunnels, and other facilities. This also includes compiling design specifications for each agency and developing a comprehensive set of bridge, highway and parkway design standards. The team is reviewing current permitting practices, policies, and procedures and recommending standardized rates. A subcommittee is working on the review of traffic signals and

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signs policies, directives, regulations, and procedures, and preparing an integrated implementation plan for uniform procedures. This also includes a review of different speed regulations approval procedures and recommendations for new standards. Another task includes completion of revised guidelines for accident recovery, and the development of initial policies and procedures regarding occupational health and safety.

Regarding electronic communications, the team is working on developing a direct link between dif- ferent radio system frequencies utilized by the agencies, and programming radios to work on multi- ple communications platforms. This Team is also working on a long range plan to integrate all telephone systems into the transportation network, and a study to integrate fiber and network back- bone across the new organization. The Team is also scheduled to conduct and complete an evalua- tion of different needs associated with the integration of the Operations Center, and to ensure testing and maintenance of the communications link established between the Tobin Bridge and the Control Center. This team is also working on the transfer of all applicable Federal Communications Com- mission (FCC) licenses to MassDOT.

Other activities on track for completion include preparations for continued maintenance on the Tobin Bridge, and documenting all operations, systems, and maintenance activities between MTA and the Tobin Bridge including plans for advertising contracts for needed services.

Regarding fleet management, a subcommittee is developing policies and procedures for consoli- dated fleet services, vehicle resource utilization and sharing, expanding the use of software to track and monitor vehicle maintenance and repairs to include all vehicles, and developing plans for the lo- cation and deployment of new vehicle inspection bays throughout the state. This also includes the development of new procedures for purchasing parts and vehicle equipment.

The tasks to be completed by November 1, 2009 also include those related to the procurement of goods and professional services, including the review and integration of policies and procedures, the adoption of procedures related to capital planning priorities, and the development of contract stan- dards related to equal opportunity and affirmative action, various contract compliance requirements as may be required by state or federal laws and regulations.

Traffic management planning tasks on track for completion include developing the structure of a unified event reporting system, consolidating traffic management plans, establishing a review team to complete the consolidation and developing integrated work access plans and procedures. Another task related to managing traffic is the identification of major electrical system components that sup- port operations and maintenance of the roadway system, and the review of documents and proce- dures utilized for right of way acquisition activities.

The team is also developing a uniform approach to customer service and reviewing each of the ex- isting travel service agreements, developing inspection procedures and a quality assurance check list for the travel facilities, and ensuring facilities comply with federal regulations. Other activities in- clude integration of the MTA and MHD emergency roadway assistance programs, and integration of different towing policies and procedures in coordination with the State Police. The team is also on

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track to obtain a centralized phone number (1-877-MADOTGOV) for customer service inquiries.

Activities that require concerted effort to achieve milestone completion include the production of decals for motor fleet vehicles, the re-registration of all vehicles, the development of formal proce- dures for the procurement of professional services, and the development of interim protocols and procedures for right-of-way across the new organization.

Regarding toll operations activities, the team is on track to consolidate a Customer Handbook for MTA and Tobin Resident Discount Programs, formalize the consolidation of the Resident Discount renewal program, and submit consolidated program account holder records to the RMV for address verification and future correspondence. Other activities include consolidating the Maintenance Scope of Services contracts for electronic toll collection. The team is working on modification of toll system operations to incorporate the Tobin Bridge into the MTA electronic toll collection sys- tem, and exploring the need for a new contract with the service provider. Consolidation of toll col- lection programs will require an integrated No-Payment Violation Program. The team is also on track to formalize procedures regarding the agreement to have all cash receipts from toll plazas counted by the MBTA Money Room.

6.2.7 Activities to Commence After November 1, 2009

Activities that have been scheduled for integration and implementation after November 1, 2009 in- clude the following; issuance of a new Bridge Maintenance Contract for Fiscal Year 2010, the devel- opment of a final set of highway/parkway design standards, and joint state and federal safety

reviews of roadways, parkways and other facilities. Other tasks include the adoption of standard commercial permitting rates, and the expansion of the on-line permitting program, as well as consol- idating current regulations and revising state regulations. Post November activities will also include an evaluation of a single communications system across the new organization and its four divisions, and the review of current practices for processing, approving, distributing and archiving construc- tion and consultant contracts. A new Safety Manual will be developed and adopted, and a systems integration study will need to be conducted at the joint OCC. The division will also need to review current policies and processes for administering utility and force accounts, merge administrative tasks related to these functions, and evaluate current and adopt new maintenance and right of way practices and formal procedures.

6.3 Finance Integration

Representatives of the MTA and EOT have been working with the Comptroller’s Office and the In- formation Technology Division of the Commonwealth on the integration of financial systems to support the new department in accordance with Chapter 25 of the Acts of 2009 which establishes the Massachusetts Department of Transportation and more specifically Chapter 6C section 15 . The goal has been to complete the initial phase of the integration by November 1, 2009, within a single financial system capable of absorbing complex financial functions, the Commonwealth’s Massachu- setts Management Accounting and Reporting System (MMARS). A more complete report on the progress of systems integrations is required to be submitted to several parties on April 1, 2010 pur-

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This effort involves the integration of accounting systems geared to a cash-based system of account- ing and an accrual-based system of accounting. The Integration Team is lead by EOT and MTA, with six subgroups including team members from the various organizations, including General Ac- counting, Budget, Revenue / Treasury, Procurement / Accounts Payable, Fixed Assets / Non Fixed Assets, and Federal Grants. The Finance Integration Team has been formed to develop short and long-term plans that will allow MassDOT to function as one of the premiere transportation depart- ments in the country with a financial system in compliance with Chapter 7A section 7 that allows for accountability and transparency to all stake holders.

6.3.1 A Fiscal Vision for MassDOT

As one entity, MassDOT will use the Massachusetts Management Accounting and Reporting System (MMARS) as its accounting system, operating as a business or enterprise. MMARS serves as the financial system that complies with the requirements of the transportation reform law and is accountable and transparent. This system supports horizontal activities across the department, not just vertical activities, and supports a client service mission.

MassDOT will be managed as a business. MMARS and other integrated financial tools permit the leadership of the new department to hold the divisions accountable for budgets and spending. The divisions will receive services from a centralized Finance unit, and the financial system must work for all divisions, including ultimately, the Mass Transit Division. Divisions should operate as cost centers and must be accountable to annual and monthly budgets. MassDOT must have a budget function ability to track separate accounts based on sources of funds. It is recognized that MassDOT is an authority that must adopt certain agency-like functions, acknowledging that the future of the department will include user fees as well general appropriations. MassDOT should be focused to raise as much of its own revenue as possible.

MMARS and other integrated financial tools are designed to achieve the objectives of the Board of Directors, as a separate body politic and corporate with fiduciary obligations to the department and contractual obligations to bondholders and receiving regular reports on progress against approved budgets. Moreover, in order to comply with toll equity requirement of the Act, MassDOT must account for all revenues and all costs, and must provide accurate reporting and full disclosure.

6.3.2 Scope of Finance Integration

The integration team developed a work plan that identified and addresses the numerous activities associated with the integration of financial systems, including but not limited to ensuring the system can support the transfer of funds from different agencies and developing a common revenue collec- tion methodology reporting requirements. The team has developed a new Chart of Accounts for the organization that will ensure employees and service providers can be compensated, appropriate financial statements can be generated and audited and bond indentures are fulfilled.

As part of this process, the team is developing financial and operational reporting system to the public, rating agencies, and others for a variety of revenue sources, investments, payroll, operational

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expenses, and capital expenses on a Trust basis in conformance with bond covenants and Generally Accepted Accounting Principles (GAAP). This process will eventually allow the department to report segregated costs centers, as well as combined financials, allocating certain revenues and expenses between cost centers in accordance, and tracking projects.

6.3.3 Functions of Finance Operations

As stated in section 15 of Chapter 6C the department shall, for the purposes of compliance with state finance law, operate as a state agency as defined in section 1 of chapter 29 and shall be subject to the provisions applicable to agencies under the control of the governor including, but not limited to, chapter 29, chapter 7A, chapter 7 and chapter 10; provided, however, that the comptroller may iden- tify any additional instructions or actions necessary for the department to manage fiscal operations in the state accounting system and meet statewide and other governmental accounting and audit standards. The Finance Department of the new organization will be responsible for formalizing and implementing financial management and investment guidelines that enable all divisions and depart- ments to achieve goals in a fiscally prudent manner, through the coordination of various activities, including the development of annual operating and capital budgets, financial management and ac- counting controls, long term capital plans, construction project finance plans, note and bond is- suances, investor relations, procurement, and risk management. The Office will oversee all of the fiscal-related functions for MassDOT and will be responsible for overseeing and reviewing all fiscal management, budget, and capital expenditure and program office functions and related operations.

These programs include accounting, revenue operations, fiscal operations, federal grants, operating and capital budgets.

6.3.4 Milestones and Achievements

The Finance Integration Team has established various milestones to achieve by November 1, 2009, including the development of a fiscal vision for the new organization that will guide system integration. This will facilitate the development of new Chart of Accounts, completion of an annual operating budget, and the conversion of contracts and encumbrances to the new system.

Various assets to be owned by MassDOT will need to be transferred to the new systems, federal grants will need to be converted, and procurement will need to be centralized.

6.3.5 Completed Activities

Integration efforts have focused on the consolidation of the current state agencies and the additional integration of the external former entities MTA and Tobin., and a review of MTA’s Oracle Financials System and the Commonwealth’s Massachusetts Management Accounting and Reporting System (MMARS). Integrated financial structure discussions and system functionality overviews have been conducted.

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6.3.6 Activities on Track for Completion

By November 1, 2009 MassDOT will meet its mandates to function within the state’s financial system and structure. This will require the use of a statutory based accounting system working in concert with an enterprise accrual based accounting and reporting system in order to meet its unique financial obligations. The team will ensure consolidation onto MMARS as the primary financial management system and system of record for MassDOT by November 1, 2009 while maintaining the ability to track, plan and report projects on the other project management systems currently used by MassDOT entities. The use of MMARS is designed to provide efficiencies through systems consolidation while ensuring financial accountability to the legislature and taxpayers of the

Commonwealth.

The immediate task charged to the working group is to complete the MassDOT Chart of Accounts and a Day One project plan. Chart of Account changes that surface in the interim will be evaluated through a change order process to determine if these changes require pre or post November 1, 2009 adjustments. The path to ensure the necessary transfer of data from existing project systems to MMARS will be determined through the project planning process. The Comptroller’s Office will support interfacing into the other applications via electronic data feeds, ensure that all MMARS data will be available to MassDOT through the state’s electronic data warehouse, and fully support MassDOT’s efforts to adopt its existing business practices to the state’s system environment.

6.3.7 Activities to Commence After November 1, 2009

The Team will continue development of stronger links between the financial systems and supporting financial tools after November 1, 2009 and develop plans to ensure all financial accounting and re- porting functions can be achieved in an efficient and timely manner that meet all statutory and bond covenant requirements and to comply with management’s “enterprise” and “Mobility Corporation”

requirements.

6.4 Information Technology Integration

The Information Technology Team has been formed to develop short and long-term plans to integrate IT services and functions of the four MassDOT divisions in alignment with the themes of Transportation Reform. The IT Integration Team's mission is to develop IT Solutions to provide MassDOT with the highest quality customer service and technical solutions that advances its mission and creates efficiencies in its processes. The team is developing solutions for a consolidated infrastructure that will allow the seamless use of applications, file/data sharing, and access to its internal website throughout the organization. Teams will coordinate with MassDOT to develop enterprise technology solutions that will support integrated HR/Payroll and Financial systems that meet transportation business needs. A new website presence will be deployed that better serves customers and unifies the various transportation divisions. The team will also work with different business units to leverage the new organizational structure and obtain economies of scale through IT procurement strategies.

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