Comptroller’s Office Updates Agency Directive to Streamline Capital Project Approvals

 

Revisions to Directive 10 clarify and expand approval eligibility for City capital dollars aimed at improvements, such as tree planting, window replacements, and split HVAC systems

The New York City Comptroller’s Office announced updated guidance to City agencies that streamlines approvals for using capital dollars for certain kinds of climate, streetscape, park, infrastructure, and building improvements. The Comptroller’s Directive 10 revisions fulfill commitments proposed by the Mayor’s Capital Process Reform Task Force, which convened leaders in industry, labor, and the M/WBE community to recommend ways to deliver city capital projects faster, better, and cheaper.

“Improving the City’s ability to deliver capital projects on-time and on-budget is essential for an inclusive economic recovery,” said Comptroller Brad Lander. “By updating capital eligibility and providing clearer guidance to City agencies, we chip away at the bureaucratic steps that slow down our system for making necessary capital improvements to our streets, sidewalks, and parks. Capital project procurement, management, and delivery reforms are top priority for my office as we strive to make government work better for New Yorkers.”

“Directive 10 sets forth guidelines based upon generally accepted accounting principles for determining when capital funds may be used for the acquisition, construction, or improvement of a capital asset,” said Jacqueline Thompson, Deputy Comptroller for Accountancy. “The revisions will provide better guidance to agencies applying for capital eligibility, leading to a reduction in unnecessary delays and an acceleration of approvals that will allow projects to get underway in a timely manner. By partnering with the Office of Management and Budget General Counsel Scott Ulrey and their team, we were able to collaboratively transform the City’s capital process expeditiously and look forward to future opportunities to secure a thriving future for all New Yorkers.”

The Capital Process Reform Task Force proposed a package of 9 reforms that requires state legislative approval and 30 procurement reforms that various City agencies could implement, including proposed changes to Directive 10. Today’s revisions include:

• Increase the radius for combining work to meet minimum cost requirements from two blocks to half a mile for sidewalks, pedestrian ramps, street lighting, tree guards, and green/gray infrastructure such as right-of-way bioswales and catch basins;
• Expand scenarios where renovations to different areas of an asset may be combined for purposes of meeting minimum capital cost requirements;
• Allow Energy Conservation Measures to help the City meet climate goals to be eligible for capital dollars;
• Clarify eligibility rules for window replacements and various types of HVAC systems.

“The Adams Administration mantra is ‘Get Stuff Done’–and the Mayor’s Capital Process Reform Task Force, in partnership with the NYC Comptroller’s Office, has done just that,” said First Deputy Mayor Sheena Wright.  “The updating of Directive 10 is principally about excellence in government. Streamlined approvals resulting from this work will allow us to more efficiently build public buildings and infrastructure for New Yorkers.”

“The Comptroller’s Directive 10 update provides essential guidance to ensure that we are financing the capital projects of today appropriately, and updating it was a priority of the Mayor’s Capital Process Reform Task Force,” said Deputy Mayor for Operations, Meera Joshi.  “I am grateful to the Task Force, the Comptroller’s Office, the City’s capital agencies, and the Office of Management and Budget for this work, which will streamline the initiation phase of capital projects and save the City time and money.”

“New York City’s capital process is widely known to be bureaucratic and unwieldy, and what better group to take that on than the Mayor’s Capital Process Reform Task Force, which brings together leaders in industry, the MWBE community, and labor,” said Mayor’s Office of Policy and Planning Director Sherif Soliman. “The Comptroller’s work on Directive 10 implements a key recommendation for streamlining project initiation while continuing to respect accounting standards, and all New Yorkers will benefit from the efficiencies generated.”

Delays and cost overruns have long plagued the City of New York’s procurement and delivery process for capital projects. Analysis by the Comptroller’s office in December 2022 found that over the last eight years, just 45.2% of capital projects started on time and more than a quarter of projects took longer than initially planned (27.4%). From 2008 to the present, as many as 33% of completed capital projects ran over their projected budget.

The Office of the New York City Comptroller, through its Bureau of Accountancy, issues Internal Control and Accountability Directives and Memoranda as authorized by the NYC Charter chapter 5 §93 to establish: (1) policy, procedures and standards for the accountability and control of The City of New York’s financial operations, policies and transactions, and (2) a uniform system of accounting and reporting based on generally accepted accounting principles for all City agencies. Comptroller’s Directives and Memoranda apply to a broad array of management issues, internal controls, and procedures to ensure the efficient and effective operation of City agencies and appropriate use of public funds.

The revised version of Directive 10 is available here, the revision history is available here, and the revised Frequently Asked Questions offering a variety of scenarios for further clarity is also available here.