SANDAG vows steps to improve transparency, accountability after SR-125 toll road audit report

SAN DIEGO (FOX 5/KUSI) — After a new audit report into the investigation into San Diego Association of Governments’ tolling system on state Route 125, SANDAG held a meeting on Friday. Chairwoman Nora Vargas called for the special meeting to discuss the report’s findings, air frustrations and discuss ways to improve with recommendations.

“I’m embarrassed as a board member that here we are yet again,” San Marcos Mayor Rebecca Jones said.

“In this very exact position, where information had not been forthcoming, and….I don’t understand it,” added Luz Molina, National City Councilmember.

During Friday’s special meeting, board members and agencies connected to SANDAG discussed a need for a cultural change, transparency and accountability starting immediately.

“Where ethics and compliance are key to how we manage this agency and organization, and I think we are at that space where it’s not happening naturally based on what we are hearing, and so I want to make that it is institutionalized,” said Nora Vargas, SANDAG Chairwoman.

An investigation into SANDAG’S SR-125 tolling system found a list of system issues. The investigation started in December following a November lawsuit. The suit alleged that 45,000 people had been incorrectly charged on the SR-125 toll road.

The report stated the system had problems from the start. The report found the system did not meet their contract requirements before going live in 2022, but stated that SANDAG did not want to delay the start date. From there, the report states the performance issues and errors had doubled.

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The report found that SR-125 collects $35 million annually on toll revenue, while $23 million comes from FasTrak customers.

However, the report stated that the tolling contractor ETAN Fastlane’s financial reporting “cannot be relied upon.” Additionally, the report stated that the financial department lacks adequate internal controls.

“I sort of wonder what would’ve happened had very early on had the right action been taken. Perhaps this incredible loss wouldn’t be so great,” Molina said.

The report found incorrect recording of transactions from the fast lane. The report found that SANDAG lost $1 million in revenue when a function in the ETAN tolling system did not get turned on. When this function is turned on, the DMV is able to place a hold on someone’s registration until all of their fees are paid.

“ETAN should have never been hired. There is no scaling, there’s no grading, no information on how they were selected and how they actually won the contract. So that to me is a real issue,” Jones said.

To rebuild community trust, Chula Vista City Councilmember Carolina Chavez recommends a toll-free SR-125.

“Continuing to fund the flawed tolling system is not only a misuse of resource but also a disservice to the public trust,” Chavez.

Another recommendation that has already been requested on SANDAG is for staff to give budget options by June 2024 on how they plan to resolve their SR-125 debt by 2027.

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