$41,000 goes uncollected at T parking garage
Vendor reimburses agency; officials blame computer setting
THE MBTA SAID an incorrect computer setting at its Haymarket parking garage resulted in nearly $41,000 in credit card transactions going uncollected over 14 days in late May and early June.
T officials say their parking lot operator, Republic Parking System of Chattanooga, Tennessee, ate the $40,900 loss and reimbursed the transit authority for the lost funds. The T disclosed the snafu and the recovery of the funds on Tuesday after inquiries from CommonWealth.
Republic took oversight of parking operations at the T in April. The authority put the business out to bid last year after parking receipts were allegedly stolen by employees of the previous operator, LAZ Parking Ltd. The MBTA sued LAZ on May 4, with officials estimating the authority is owed millions of dollars. The two parties are currently engaged in settlement talks.
T officials said the situation with Republic is very different from the problems with LAZ. The officials said no money was stolen at the Haymarket garage.
The MBTA has a five-year contract with Republic that pays the firm $9.8 million a year. In a presentation to the T’s Fiscal and Management Control Board in February, MBTA officials highlighted Republic’s technological sophistication. The presentation also said the contract with Republic included “strict penalties for revenue discrepancies.” Officials said no penalties were assessed in connection with the Haymarket situation because it was an error discovered during the reconciliation process and not a revenue discrepancy.