Parking meters in the capital will remain free until the service provider begins operations, the Municipality of San José reported.
Additionally, the service would begin to operate again between October and November, although they do not have a defined date, the Municipal Supply Department detailed in response to queries from The Observer.
This is because on Tuesday night, the City Council awarded the tender to the company Setex-Alpha-San José for a period of five years, extendable to complete 10 years.
This is the same company that has provided the service since 2012, however its contract ended in July of this year and since then, the local government announced that the parking meter would be free for the month of August.
As that month has already ended, users are left with uncertainty about whether or not they should charge for parking in these areas.
The Municipality thus clarified that it will not charge until the new provider starts. It was indicated that it would be between October and November, although they have not yet set a date.
WATCH MORE: San Jose City Council awards parking meters to company opposed by Mayor Diego Miranda
The Council made the decision at a meeting on Tuesday. (Courtesy/Press Office of the Municipality of San José).
What’s next?
Juan José Echeverría, legal advisor of the company awarded the contract, indicated that for now, the agreement must be finalized, an action that is expected to be completed next Tuesday, September 10.
After this, the agreement must be published in the Integrated Public Procurement System (Sicop) to proceed to sign the agreement.
With this, the city council gives the order to start and it will be at that time when they will begin to operate again. On the part of the company, they will have to make adjustments in the Epark CR platform, which is used to make the payment for the use of time in the space.
“We parking meters can act on instructions from the Municipality, they are the owners of the service, we are the provider that outsources the service,” he recalled.
Echeverría highlighted that commission percentages were reduced from 45% to 35% for parking meters and from 5% to 3% for fines.
“We would expect it to be more profitable for the Municipality than the previous one (with the other contracts), which was already successful,” said the lawyer.
“Lobby”
The decision to award the contract to them was made after the Comptroller General of the Republic upheld an appeal filed by the consortium, because the municipality excluded them from the process.
The oversight body was able to verify that the company’s offer was valid.
The council’s decision comes despite a request from Diego Miranda, mayor of San José, who asked the councillors to declare the tender void in favour of the company.
The mayor said he hopes he is wrong, because in his opinion the decision taken by the Council is wrong.
Miranda alleges aggressive lobbying. He also claimed to have received a message from Setex’s legal advisor.
Echeverría confirmed that he had sent the communication to Miranda, requesting a meeting, “like any other mayor who gives audiences to groups from his canton.”
He said that Miranda had every right not to receive them, which he did.
“We are now ready to work and form a team with Don Diego in a respectful manner,” the lawyer said.
He also confirmed that they sent notes to the councilors with specifications of the case and a copy to the audit, but everything was done based on what the law allows.
“At no time was there anything incorrect, improper, undue, never even a hint of anything illegal,” Echeverría said.
Background
Previously, there was compensation to Setex Aparki for ¢253 million in 2018.
The company claimed that it expected an occupancy rate of between 60% and 70% in its service. However, this was later updated to 13%. The company then demanded compensation for an alleged imbalance in its finances.
The Comptroller’s Office acted in this case and indicated that what the company said lacked technical and legal basis.
Additionally, the court found that the then mayor, Johnny Araya, acted “negligently and recklessly” by allowing the payment.
The reasons why the Municipality increased the commission received by Setex for each hour of paid parking and 5% for fines were also investigated. This despite the fact that it was warned that doing so could be ruinous for the local government of the capital.
Following the incident, the comptroller’s office sanctioned Araya with one month’s pay without pay. That case was referred to the Comptroller’s Office by the then councilor Diego Miranda, who is currently the municipal leader.
In total, there are 3,000 parking spaces in San José.
WATCH MORE: Mayor Johnny Araya will be suspended for another month without pay, now for the parking meter case
