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California City Owes Red Light Camera Company $1.7 Million
Questionable contract arrangement allows Ventura, California to escape $1.7 million payment to red light camera company.

The city of Ventura, California escaped paying an Australian red light camera contractor more than $1.7 million as of last June by exercising a questionable contract provision. Under state law, municipalities are required to pay a single flat-rate fee to the private companies that own and operate automated ticketing machines. Ventura claims that it does not owe any money at all because, on May 22, 2006, it signed a contract with Redflex with a “cost-neutrality” clause.

“In order to ensure cost neutrality to the customer, customer will only be obligated to pay Redflex from the gross cash receipts received from Ventura County after first deducting customer operating costs,” the contract states. “Cost neutrality is assured to the customer using this methodology as the customer will never pay Redflex more than the actual cash received from Ventura County after deducting customer operating costs.”

According to documents obtained from the city, the provision ensures that as long as Redflex is able to issue a sufficient number of tickets to generate at least $15,000 and as much as $124,000 in revenue, Redflex will pocket 100 percent of the ticket proceeds. Under this arrangement, the city pays more or less money to Redflex based upon the number of citations issued, giving the company a direct financial incentive to boost the number of tickets issued.

The state legislature outlawed contingent-fee payment systems in response to a 2001 court ruling that found such contracts undermined the integrity of the evidence provided by private camera operators (view opinion).

“A contract between a governmental agency and a manufacturer or supplier of automated enforcement equipment may not include provision for the payment or compensation to the manufacturer or supplier based on the number of citations generated, or as a percentage of the revenue generated, as a result of the use of the equipment authorized under this section,” section 21455.5(g) of the California Code states.

Last month a California appellate court judge applied this law to a similar cost neutrality deal struck between the city of Fullerton and Nestor Traffic Systems (NTS). The judge found the illegal arrangement invalidated tickets issued by the system (view opinion).

“The purpose of the statute is to avoid an incentive to the camera operator, as a neutral evaluator of evidence, to increase the number of citations issued and paid through the use of the equipment,” Orange County Superior Court Judge Robert J. Moss wrote. “[Under the cost neutral contract], NTS has an incentive to ensure sufficient revenues are generated to cover the monthly fee.”

A copy of the Ventura County red light camera contract and payment invoices can be found in a 250k PDF file at the source link below.

Source: City of Ventura, California Invoices (Redflex Traffic Systems, 6/30/2008)

What people should expect: stricter noise and muffler rules, a local helmet law, no parties in parking lots, a juvenile curfew and more.

The Web site bears a message from Mayor John Rhodes, a list of the 15 ordinances and amendments the city approved last fall to target the two May motorcycle rallies it says have grown too large and too difficult to control, and a section of questions and answers.

The top of the site says “effective 2009, Myrtle Beach, SC will no longer host motorcycle rallies.” Even though the city never officially hosted the rallies, “Myrtle Beach doesn’t want to be the center of the motorcycle universe in May anymore,” Kruea said.

The Harley-Davidson and Atlantic Beach Bikefest have drawn nearly half a million visitors over about three weeks, and prompt locals to complain loudly each year. But in 2008, after a Coastal Carolina University student was shot to death in a dispute over a parking space during Bikefest, even though the shooting didn’t involve bikers, the city said it would take steps to end the rallies.

The chamber designed the Web site and has paid for the brochures, and Kruea said they city might reimburse the chamber but that has not been decided yet Chamber President and CEO Brad Dean said the site and and brochures are not an ad campaign and will not be advertised or mailed out generally, but will be given to people who request information.

Bill to repeal helmet law is introduced again

Term limits may bring new life to the often-defeated efforts to repeal Nebraska’s motorcycle helmet law.

Freshman State Sen. Charlie Janssen of Fremont introduced a helmet-repeal bill today.

Last year’s attempt failed by just two votes. Since then, term limits has removed nine opponents and seven supporters of the idea - a two-vote swing.

It’s unclear how the 16 new senators align on the issue, but Janssen feels he’s got a good chance. Janssen’s uncle, former State Sen. Ray Janssen, is a helmet law-repeal foe removed from the Legislature last year.

“We’ve got new senators with new ideas,” Charlie Janssen said.

Legislative Bill 200 would repeal the helmet requirement for all motorcycle riders 21 or older. Younger riders would be required to wear helmets, unless they passed a state-sponsored safety course.

All riders would be required to have eye protection, either goggles or a windshield.

Janssen said it’s a freedom of choice issue and an economic booster, since it might bring more motorcycle riders to Nebraska, which is surrounded by states that don’t require helmets.

The senator said that while it’s probably safer to wear a helmet when riding a motorcycle, it’s also probably safer to wear a helmet while driving a car or truck.

“But I don’t see people pushing that,” he said.

State Sen. Steve Lathrop of Omaha, who opposes repealing the law, said last year’s two-vote defeat of a repeal effort might have been deceiving - senators can lend their support to a politically charged issue when they know it’s going to lose.

If there was a “hard vote” on the issue, it’s hard to tell how it would go, Lathrop said.