Traffic revenue
Michael Silence details the local traffic camera revenue scheme that’s up for consideration:
Under the contract terms, Redflex would receive 85 percent of all revenue generated each month, up to $4,500 from each intersection. Any more monthly revenues from a particular site would be split 50-50 between the vendor and the city.
Redflex, which was chosen by a city-appointed committee from among six companies’ proposals, also would be entitled to 20 percent of all late fees received for delinquent fines.
October 3rd, 2005 at 5:06 pm
Gee, there’s no incentive for corruption is there?
October 3rd, 2005 at 8:21 pm
As I wrote on my blog before, cities that install these will be setting themselves up for negligence lawsuits. The data shows that rear-end collisions increase at RLC intersections.
A person will be injured at one trying to stop and their lawyer is going to sue for more than the city has ever made by having them installed.
If one cares about their tax dollars, one would really press the city council on this.
October 3rd, 2005 at 9:39 pm
I’m writing again and this is one of my first topics.
This contract is bad. Those figures are for each “designated intersection approach” not just each intersection. That’s means there could be 4 cameras at each intersection and each one will have to get $4,500 to get to the 50/50 split. Quite frankly, I don’t think the revenue will get to the point where Knoxville will get 50% but Redflex will be raking the dough in.
Another problem is that Redflex gets their money even if the citation isn’t paid. While payments are sent to Redflex, it will be the city’s responsibility to prosecute and make sure the citations are paid. Knoxville could easily end up in the red in this deal.