SANDAG board fires toll road vendors

The agency hires new contractors to replace, install and maintain a new toll system on State Route 125 and Interstate 15 as millions are spent to address major issues with the old system

The SANDAG Board of Directors fired two vendors for their inaction regarding toll road failures on State Route 125. The agency hired two new contractors to install and new system, which is expected to be completed in 11 months. Courtesy photo

COUNTY — Years of delays and software with bugs led the San Diego Association of Governments Board of Directors to fire the current contractors and approve an action plan regarding the toll system.

The board voted 15-1 during its Jan. 12 meeting to hire Deloitte and A-to-Be to take over installing and managing a new toll system on State Route 125 and Interstate 5. For years ETAN Tolling Technology and HNTB missed deadlines and once operational, the toll system failed to capture user data and incorrectly charged motorists.

A lawsuit was filed by a former SANDAG employee in November 2023 for wrongful termination after concerns were expressed over the scale of drivers being incorrectly charged.

Several on the board railed against ETAN Tolling Technology and HNTB as they missed deadlines, kept charging the agency and installed a faulty system. ETAN was charged with operating and installing the toll system, while HNTB was the project manager.

ETAN and HNTB are due another $1.8 million to assist with the migration to the new vendors. ETAN and has already been paid at least $8.4 million, according to SANDAG staff. ETAN and HNTB were awarded the contract in 2016 for SR 125, known as the South Bay Expressway, and Interstate 15 from a private company that built the highway.

In total, SANDAG has spent $12.9 million to date plus $2.3 million in expenditures to maintain the system and address backend issues. The action plan will cost $31.7 million for the new vendors to install the new back-office system, according to SANDAG.

Mayors Rebecca Jones of San Marcos and Tony Kranz of Encinitas were steamed ETAN would still be on the payroll as ETAN has accrued $6.45 million in liquidated damages owed to SANDAG since October 2018 for its role. Jones and Kranz also wanted to fire HNTB’s role in the operation, but SANDAG staff said at least one was needed to continue operations, assist with the transition and legal concerns over not paying a contractor.