Kansas will be holding back its final payment to a Minnesota company handling the state's new motor vehicle system until the program's problems are resolved.
The state previously said it was withholding the final 10 percent of its payment on the $25 million contract with 3M Co. until all the known problems with the system were rectified.
Department of Revenue spokeswoman Jeannine Koranda said the final $2 million payment is being held until the system is free of issues.
“We still have a significant part of the contract left to resolve,” Koranda said. “We're just being cautious and keeping all our options open.”
The system was rolled out in phases starting in May 2012, with the final payment due June 30, 2012, following an evaluation process. The evaluation period was extended after multiple problems with the system were discovered, leading to long tlines and sharply increased overtime in many license offices.
Koranda said the system has stabilized over the past year and the state works with 3M daily “to make sure the system is running at peak performance.”
“The system is running within normal parameters, and any issues we're seeing now are localized,” she said. “You aren't seeing the lines we had this time last year.”
Statewide, county offices processed 13,000 fewer vehicle tag renewals and 22,700 fewer title registrations from May 2012 through April 2013 than were handled in 2011.
“It's important to keep in mind that title and registration activity varies based on consumer activity more than anything,” she said. “If people are buying and selling a lot of cars, the number of transactions will go up.”
Overall, Kansas spent $40 million on the new vehicle system, aimed at increasing efficiencies and better coordination of information between the 105 counties and the state.