Parking contract costs Metro $500K

Mismanagement of a Metro parking services contract forced transit officials to approve nearly $500,000 in emergency funds Thursday as costs spiked at the system’s 36 parking facilities, officials said.

Metro interim General Manager Dan Tangherlini said the $4.3 million set aside for parking services this fiscal year has been nearly depleted and the transit agency would have to immediately cut services if additional money was not allocated. Metro’s fiscal year ends June 30.

Increased ridership and service expansions — including additional staff for the tourist season and events at FedEx Field — led to the increased costs, officials said.

On Tuesday, a regular business day, 765,516 riders traveled on Metro. The week before the opening of the Nationals baseball season brought 820,000 in one day.

Several board members wondered why Pamela Wilkins, Metro’s assistant general manager of contract services — who oversees the parking contract with LAZ Parking — had not alerted the board of the funding shortage until the last minute.

Several board members said privately that Wilkins, who also oversees the system’s troubled MetroAccess contract, has a history of problems managing contracts and timelines. Wilkins left the meeting before she could be reached for comment.

LAZ Parking took over the $3.1 million contract for Metro parking lots in 2004 in the wake of scandal involving attendants allegedly stealing millions in parking fees. Most employees were fired and the parking lots were converted to a cashless payment system.

The board voted against another request from Wilkins to approve a second-year option on the contract with LAZ Parking.

Wilkins said not renewing the contract could make it tough to find a new service provider before the LAZ contract expires on June 30.

Board members said they are waiting for labor negotiations to be held between LAZ officials and the company’s 100 employees at Metro, who are hoping to unionize. Metro officials say parking lot attendants — who make between $7.50 and $8 per hour — are among the lowest paid in the transit system.

At a glance

» LAZ Parking oversees dozens of parking systems along the East Coast.

» A 2004 investigation found that $500,000 to $1 million had gone missing annually from parking facilities.

» Metro is the largest provider of parking in the region.

» Nearly 85 percent of Metro employees belong to one of five unions.

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