WSDOT gets $6.4 million settlement for late bridge tolls
SEATTLE (AP) - The Washington Transportation Department has reached a settlement with the company that was late in setting up tolling on the Highway 520 floating bridge on Lake Washington, and it now has confidence in its partner as tolling expands in the state, said Craig Stone, Toll Division director.
"We clearly had challenges during 2011 and the transition," Stone said. "Fundamentally we think we have a solid system for the future."
The agreement announced Wednesday settles claims and counterclaims with the ETC Corp. of Richardson, Texas, and avoids possible litigation over the delay as well as problems in processing tolls on the Tacoma Narrows Bridge.
The settlement is worth $6.4 million to the state - $2.4 million in reduced monthly payments to ETC and $4 million for a software license that would allow the state to operate the tolling system on its own, the department said.
ETC pays no cash and gets a four-year contract extension worth $29 million, the company said. ETC's original five-year contract with the state in 2009 was worth $23 million.
Tolling began in late December on the floating bridge instead of the spring of 2011 as planned because of delays implementing technology that makes tollbooths unnecessary. The all-electronic system collects tolls at highway speeds through Good To Go windshield stickers or through license-recognition photos, which automatically generate a bill that is mailed to drivers.
ETC said the state was partly responsible for the delays in Highway 520 tolling due to changes in the scope of the work.
The tolling is expected to raise $1 billion of the $4.65 billion cost of replacing the 49-year-old bridge and other improvements on 13 miles of Highway 520 between Seattle and Redmond. The span is one of the longest floating bridges in the world at over a mile.
The settlement covers the bridge tolling delay and lost revenue from dismissed or unprocessed toll infractions on the Tacoma Narrows Bridge, the department said. In 2011, ETC took over tolling operations on the Highway 16 bridge at Tacoma as well as Highway 167 HOT express lanes so that drivers could use the same technology.
The software part of the settlement is important in giving the state the ability to operate or modify the tolling technology itself or with a contractor other than ETC, Stone said.
Tolling is just ahead for more highways in Washington. It's already planned for the tunnel under downtown Seattle that will replace the Alaskan Way Viaduct and for a new Columbia River Crossing bridge across the Columbia River between Vancouver and Portland, Stone said. It's also likely on Interstate 405 express lanes between Bellevue and Lynnwood.
Tolling also may be studied on other highways, including the Interstate 90 floating bridge on Lake Washington where much of the 520 traffic diverted to avoid the toll.
About 100,000 drivers a day used the Highway 520 floating bridge before tolling. That dropped significantly after tolling started. It's back up to about 60,000 a day, but it would likely take years to get back to the pre-toll volume, Stone said.
ETC says the settlement also allows it to look forward and focus providing tolling systems and customer service in Washington. The company collects nearly one-third of the toll transactions in the United States, representing more than $1 billion a year in revenue.
"We clearly had challenges during 2011 and the transition," Stone said. "Fundamentally we think we have a solid system for the future."
The agreement announced Wednesday settles claims and counterclaims with the ETC Corp. of Richardson, Texas, and avoids possible litigation over the delay as well as problems in processing tolls on the Tacoma Narrows Bridge.
The settlement is worth $6.4 million to the state - $2.4 million in reduced monthly payments to ETC and $4 million for a software license that would allow the state to operate the tolling system on its own, the department said.
ETC pays no cash and gets a four-year contract extension worth $29 million, the company said. ETC's original five-year contract with the state in 2009 was worth $23 million.
Tolling began in late December on the floating bridge instead of the spring of 2011 as planned because of delays implementing technology that makes tollbooths unnecessary. The all-electronic system collects tolls at highway speeds through Good To Go windshield stickers or through license-recognition photos, which automatically generate a bill that is mailed to drivers.
ETC said the state was partly responsible for the delays in Highway 520 tolling due to changes in the scope of the work.
The tolling is expected to raise $1 billion of the $4.65 billion cost of replacing the 49-year-old bridge and other improvements on 13 miles of Highway 520 between Seattle and Redmond. The span is one of the longest floating bridges in the world at over a mile.
The settlement covers the bridge tolling delay and lost revenue from dismissed or unprocessed toll infractions on the Tacoma Narrows Bridge, the department said. In 2011, ETC took over tolling operations on the Highway 16 bridge at Tacoma as well as Highway 167 HOT express lanes so that drivers could use the same technology.
The software part of the settlement is important in giving the state the ability to operate or modify the tolling technology itself or with a contractor other than ETC, Stone said.
Tolling is just ahead for more highways in Washington. It's already planned for the tunnel under downtown Seattle that will replace the Alaskan Way Viaduct and for a new Columbia River Crossing bridge across the Columbia River between Vancouver and Portland, Stone said. It's also likely on Interstate 405 express lanes between Bellevue and Lynnwood.
Tolling also may be studied on other highways, including the Interstate 90 floating bridge on Lake Washington where much of the 520 traffic diverted to avoid the toll.
About 100,000 drivers a day used the Highway 520 floating bridge before tolling. That dropped significantly after tolling started. It's back up to about 60,000 a day, but it would likely take years to get back to the pre-toll volume, Stone said.
ETC says the settlement also allows it to look forward and focus providing tolling systems and customer service in Washington. The company collects nearly one-third of the toll transactions in the United States, representing more than $1 billion a year in revenue.
I just read that the 520  bridge designers who were caught drinking beer on the job are being given "counseling." I wonder if we taxpayers will also be paying for alcohol counseling and rehabilitation for the bridge designers in addition to the $4000 per day fee paid to Bill Nye, who did nothing but posing for pictures and endorsing the bridge toll. The reasons for that toll are becoming quite apparent.
ETC says it pays no cash and gets a four-year contract extension worth $29 million.
Â
Boy that was such a harsh punishment. Â I am surprised that ETC can stay in business with judgements like that.
Â
...ETC says it pays no cash and gets a four-year contract extension worth $29 million...
Â
And this is winning???
Well isn't this nice... do all the people who got over-charged get a refund too? Â I'm betting not.Â
Â
It seems like the only winners in these deals are the state and the vendors.
Hasn't the east coast been tolling for ever? why would they go with a company in texas?
You could toll twice one way since most people go back anyway. Then if you don't you can ask for a refund. This would cut the cost of the system by 1/2. You could also deduct the toll from a persons job wages to make it easier on folks paying tickets.
How will our state pay "ETC", and replace the revenue lost on that 4 year agreement? Mmmmm, read my lips, "Higher toll fees"! Â Â
This is just another chapter in the saga of incompetence surrounding the WDOT. From beer drinking bridge designers to $4000 per diems paid to "the science guy" Bill Nye for posing and looking cute on posters, the WDOT shows constant evidence of gross mismanagement of taxpayers' money. Then there is the fact that the bridge is a monumental financial booby trap for users with monumental late fees slapped on toll payments deemed "late" by the WDOT gestapo. Oh, and anyone who sells a car can prepare to be responsible for tolls on that car ad infinitum or until jumping through the proper hoops. My advice, after paying a toll that ended up as a $70 amount for one trip is: Stay Away From That Bridge!
Oh, and for that software license that would allow the state to operate the tolling system without the company.With all the problems with that software, it's very doubtful that the other states, nor their counties, municipals, and cities would want to license it from "ETC" for the usage!!!Â
Â
Yup! Gotta luv it! We the State of Washington will be keeping that company in business with that $29 million four year extension. Gotta luv it!
To me it sounds like ETC came out on top.
Gotta luv how this state does business!!! How about our state just give that $6.4 million back to start paying on that $29 million. ETC made out on this agreement!!!
So we get 4 million dollars for a software license that lets the state operate the tolling system without the company and give the company a four year contract extension??? What am I missing here???
I'm thinking ETC is not worth the $29 million dollar contract. Its been one screw up after another since they took over, and having to settle up with $6.4 million doesn't exactly instill confidence in their abilitiy to effectively run the tolling for the state. But hey, its just our tax dollars and toll payments at work--right?