SR-701-011 (2)
PD:JTB:JRK:f:\\police\share\staffrpt\PhotoEnfLease.doc
City Council Meeting: August 13, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Lease with Redflex Traffic Systems, Inc. for Red Light Photo Enforcement
Equipment and Approval of Related Budget Changes
INTRODUCTION
This report recommends the City Council authorize the City Manager to negotiate and
execute a lease with Redflex Traffic Systems, Inc. for automated signal enforcement
equipment and for related services. This report also recommends that Council
appropriate $310,710 to finance FY2002-03 lease costs and approve a revenue budget
increase of $497,800 to reflect projected traffic citation revenue.
BACKGROUND
In February 2000, the City Council approved, in concept, the implementation of a photo
enforcement program for red light violations. The goal of the program is to improve
traffic safety by increasing compliance with traffic regulations. The proposed program
will include a public outreach/education component and an initial warning period.
Currently budgeted City personnel will be responsible for program administration.
City staff studied the available photo enforcement technologies in terms of capabilities,
costs, and administrative requirements. Staff also researched other cities? red light
photo enforcement programs, and contacted representatives of agencies considering
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implementation. Analysis of the available data indicated that implementation of a photo
traffic enforcement program in Santa Monica would reduce red light running and
improve traffic safety.
In October 2001, City staff requested proposals from five (5) companies for the initiation
and operation of an automated red light photo enforcement program in Santa Monica.
Redflex Traffic Systems, Inc., Affiliated Computer Systems (ACS), and Nestor Traffic
Systems submitted proposals and were invited to make presentations to and participate
in interviews with a team of staff members from involved City departments (including the
Police Department, Planning and Community Development Department, Environmental
and Public Works Management Department, and the City Attorney?s Office). After all
information had been considered, the interdepartmental team members unanimously
recommended that the City enter into a lease agreement with Redflex Traffic Systems,
Inc. for photo enforcement systems to be used at selected, high violation rate
intersections within Santa Monica.
DISCUSSION
Staff reviewed the safety record of all signalized intersections and identified those with
the greatest number of right-of-way accidents. Traffic signal violation and accident data
for each of the top twenty accident locations from January 2000 through September
2001 was gathered. When the data from all 20 locations was compiled, it was found
that more than 600 collisions had occurred, and officers had issued more than 2,600 red
light traffic citations to motorists at those sites during the study period.
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Experience within Santa Monica, and in other communities, shows that increasing the
level of enforcement at problem locations improves compliance rates and reduces
accidents. In most locations where photo enforcement technology is deployed, violation
rates have been significantly reduced over a period of several years. However, there
are some high traffic volume locations where the violation rate is more robust, despite
the issuance of large numbers of citations. Over time, however, constant photo
enforcement at even those locations is expected to eventually produce some reduction
in the number of red light violations.
Redflex Traffic Systems, Inc. is a leader and expert in digital photo-enforcement
systems and services. Redflex?s digital multi-shot camera technologies capture clear
and prosecutable images. To ensure the integrity of evidence, Redflex systems encrypt
images and data prior to transmission and processing. The company recently began
adding video cameras to its digital photo enforcement equipment. The video cameras
provide actual footage of violations and can be used as supplemental evidence in court.
Redflex Traffic Systems, Inc. has red light, speed camera, and infringement processing
systems currently operating in twelve cities in four states in the United States, in
addition to systems in Queensland and New South Wales in Australia and Saudi Arabia
and Tehran in the Middle East. California cities that Redflex serves include Culver City,
Garden Grove, Ventura, Fremont, and San Juan Capistrano. Surveys of officials in
those cities have indicated a high degree of satisfaction with Redflex.
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Recently, courts have questioned agreements between local governments and photo
enforcement system vendors wherein vendor compensation is based upon the number
of paid citations resulting from system operation. This would not be the case with the
Redflex system proposed by staff. Staff recommends a photo enforcement equipment
lease with Redflex Traffic Systems that includes a fixed payment to Redflex for the data
and document processing services that the firm will provide. With such a lease, there
will be no connection between the number of citations issued or paid as a result of
system operation and the amount of money that Redflex will receive. The new photo
enforcement program will remain under the control of the Police Department. Police
Department personnel will constantly monitor program operations, and only those photo
enforcement citations that have been individually reviewed and approved by a trained
SMPD traffic enforcement officer will be issued. Local court officials have also been
consulted, and plans for court activities related to the new photo enforcement citations
are now being finalized.
Installation, calibration, and testing of the new photo enforcement equipment will be
completed in stages and is projected to occur between September 2002 and March
2003. The first two ?systems? (approach monitors) are expected to be fully operational
by December 1, 2002. Signs informing the public that photo enforcement technology is
in use will be installed at major entrances to the city and at approaches to photo
enforced intersections. Signage will conform to the City?s graphic design standards. A
30-day warning period for motorists will precede implementation. During that period,
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warning notices, as opposed to citations, will be mailed to verified red light violators
detected by the new systems. Actual citations will be issued to violators in January
2003. The number of accidents at photo enforced intersections is projected to decline
significantly during the first year that photo enforcement occurs and to continue at lower
than normal rates.
BUDGET/FISCAL IMPACT
There are a variety of financing arrangements available for obtaining and operating
photo enforcement equipment. Virtually all provide net revenue increases. Staff has
evaluated the various financing options available (including purchase of the photo
enforcement equipment, lease purchase, and a straight lease) and concluded that it is
most advantageous for the City to lease the equipment.
The proposal submitted by Redflex Traffic Systems is for the provision and operation of
twelve automated photo enforcement systems. A ?system? contains the amount of
equipment needed to monitor and record red light violations along one approach to an
intersection. Two or more systems would be needed at each ?photo enforced?
intersection. Thus, acceptance of the Redflex proposal would result in the monitoring of
up to six intersections. The Redflex proposal calls for operation of the twelve photo
enforcement systems for five years. Staff has concluded that obtaining and using
twelve systems for five years is appropriate, because providing that amount of coverage
is projected to result in significant traffic collision reductions and to generate sufficient
traffic citation revenue to fully cover photo enforcement program costs.
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Leasing the proposed system will cost an average of $640,892 per year, with a highest
one-year contract cost of $701,280. With a lease agreement, the City will receive full
maintenance service and hardware and software upgrades as they become available at
no cost or nominal cost. The five-year total of projected lease fees equals $3,204,460.
City internal support costs for the proposed photo enforcement system include one (1)
currently budgeted senior Police Officer?s salary and benefit expenses and a small
amount (perhaps $10,000 per year) of supply and services expense. The cost of
internal photo enforcement program support from the beginning of FY2002-03 to the
end of the five-year contract period is projected to equal a maximum of $649,520.
Funding for the current fiscal year portion of this cost is included in the Police
Department?s FY 2002-03 Operating Budget. Staff also believes that 10% in
contingency funding should be budgeted for each year of the proposed lease, to cover
the cost of system upgrades and any unanticipated expenses. The five-year total for
this contingency funding equals $320,450. In total, (internal, external, and contingent)
costs are projected to be no more than $4,174,430 for the proposed five-year lease.
Traffic citation revenue resulting from installation and operation of the new photo
enforcement equipment would fully offset City costs each year that the full system is
operating. Photo enforcement system generated traffic citation revenue for all five
years of the projected lease (including the system installation time period) is projected
to equal approximately $4,231,730.
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From the above figures it can be seen that net additional City revenue resulting from
implementation of the photo enforcement program is projected to equal about $57,300
over the proposed five-year lease period.
For FY2002-03, the maximum appropriation that would be needed would be $310,710
($282,460 for the projected FY2002-03 lease cost + $28,250 (10%) in contingency
funding). The $310,710 should be appropriated to a Capital Improvement Project (CIP)
account, number C01084503.589000 (Photo Enforcement Lease).
The amount of additional traffic citation revenue that is conservatively projected for
FY2002-03 is $497,800. The $497,800 additional revenue amount should be added to
the FY2002-03 budget in Revenue Account #01304.400731 (California Vehicle Code
Fines ? Photo Enforcement).
Appropriation and revenue amounts for remainder of the five-year lease period would
be budgeted in the appropriate future fiscal years.
RECOMMENDATION
Given the projected beneficial impacts of the proposed photo enforcement system on
traffic and pedestrian safety within Santa Monica, and given the financially self-sufficient
nature of the proposed system, it is recommended that Council authorize the City
Manager to negotiate and execute a lease agreement, as described above, with Redflex
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Traffic Systems, Inc.
It is further recommended that the budget changes described above be approved.
Prepared by: James T. Butts, Jr., Chief of Police
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