A Million Dollars Every Week

          Washington State is losing a million dollars a week on a $23 million contract that was supposed to improve customer service and toll operations.  In January of last year, the Washington State Dept of Transportation (WSDOT) contracted with Electronic Transaction Consultants (ETC) for customer and toll services at the Tacoma Narrows Bridge, SR 167 HOT lanes, and the SR 520 bridge.  ETC recently sited thousands of driver’s for not paying tolls on the Tacoma Narrows Bridge, but they were wrong and the state has been forced to dismiss 11,000 tickets.  ETC is not collected tolls at the 520 bridge.

          In addition to the toll problems, ETC appears to have a difficulty paying bills.  The Seattle Times reports that, “Champion Transfer Co., a mail-courier service in Bellevue, made more than $4,000 worth of deliveries around the Puget Sound area…” Despite repeated attempts to collect the thousands owed to Champion, ETC ignored them.  Only when Champion contacted the Seattle Times did ETC pay the bill.  The Times quotes Janet Matkin, a state toll division spokeswoman, as saying that “because Champion Transfer bills are an accounting matter, and processed in Texas, they're probably unrelated to glitches with local customer-service centers or toll technologies.”  First, I find it amazing that a state spokesperson characterizes losing a million dollars a week as “glitches.”  Also, refusing to pay a small contractor until contacted by a major newspaper demonstrates either a lack of character or incompetence.         

          The state may consider electronic tolling to be smart, cost effective and innovative, but that is only so if it works.  Right now, the contract with ETC appears to be a costly mistake.  The Seattle PI reported that ETC has had similar problems in Chicago, Miami and Louisiana.  The PI also states, “One expert on toll roads says ETC may simply be overwhelmed, since it is a relatively small company.”  That is quite possible, but Washington State taxpayers should not be on the hook for ETC’s problems. 

          Washington State has collected $2 million in reimbursements and fines from ETC, but WSDOT continues to lose.  Why is WSDOT continuing to deal with a company that stonewalls paying bills and repeatedly fails to live up to contractual obligations?