An approximately $1 million overpayment to Sacramento Regional Transit is now estimated at just $100,000, according to a recently finished investigation conducted by RT.

Ronald Grant, director of university support services, said the transit service has given Sacramento State a couple of overpayment estimates. The most recent estimate, $100,000, came last week when RT General Manager Beverly Scott met with Sac State President Alexander Gonzalez.

Both sides will meet Friday to continue the process.

“Some people believe a $1 million overcharge exists, but the analysis was incomplete and some conclusions were reached in error,” said Mike Wiley, deputy general manager at RT.

The overpayment was caused by overestimating summer ridership and neglecting to divide a number by two when the payment calculation formula called for doing so, said Patricia Worley, executive director of Associated Students Inc.

During the 10 years of the current contract, which expires in June, Wiley said that Sac State paid $500,000 more than it should have. However, when examining the total life of Sac State’s relationship with RT, a $400,000 underpayment to RT happened from 1991-1997, resulting in the $100,000 figure, Wiley said.

“Everything is open, it’s a blank sheet of paper,” Grant said. “We’re going in with no preconceived notions.”

Grant added that Sac State considers RT a partner and acknowledges that the transit service likely has valid reasons for settling on $100,000 as the amount owed.

Wiley is equally optimistic about reaching an accord.

“We hope we can work this out in short order, agree on a dollar amount, and then go forward with a future agreement,” Wiley said. “This program provides tremendous value to Sac State, students and RT; and it’s my strong belief we can reconcile the past and establish an on-going relationship.”

Regardless of the amount of the refund due, Grant said that a repayment plan shouldn’t “harm either agency.” Because the discrepancy happened over a number of years, Sac State is agreeable to receiving installments, Grant said.

“I think we can find a happy medium and make sure everyone’s treated fairly,” Grant said.

Wiley said that RT has yet to formulate a repayment schedule and was open to Sac State’s suggestions.

Concerning the next contract, Sac State will take a more active role in verifying, earlier in the process, that the correct payments have been made, Grant said.

He likened the situation to an algebra problem ?” Sac State would receive the “answer” form RT but not the “work” that led to it. When the new contract is signed, the university will get the work and determine the accuracy of the answer, Grant said.

Grant also said Sac State is seeking a 10-year, or longer, agreement and that he has set a “soft target” of 30 days for finalizing the new contract.

ASI president Angel Barajas said he hoped to present an agreement to the student government’s board by its last meeting on June 1.

That board’s approval is necessary because ASI pays the student portion of the contract costs from a $7 fee that’s charged to each student on campus.Barajas expects approval merely to be a formality.

“There’s no conflict on this issue. ASI and the university are working together for the betterment of the students,” he said.

Barajas added that the student fee would not increase.

“That isn’t an option at all,” he said.

Students and faculty used RT 768,283 times during the fiscal year 2004-2005, according to a prepared statement from University Transportation and Parking Services.

Norm Erickson can be reached at [email protected]