AgdaPkt 2010-10-25 - Laserfiche WebLink

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7.B ' Page 6 ALTERNATIVES • Provide alternative direction • Terminate the contract prior to the end of its full term in the event that state statutes are amended to prohibit or substantially change the operation of photo red light systems or state courts publish decisions that have the effect of rendering photo red light evidence inadmissible. FISCAL IMPACT When originally implemented, the program was represented to be financially self-sufficient and the City anticipated that the system would pay for itself with revenue generated from fines collected. Each citation carries a state mandated fine of $446.00, approximately 34% of which is earmarked for Redwood City. There have been, and cvntinue to be, some difficulties with collecting the City's portion of the fees from the county, though this appears to be 'rmproving. Addi�ionally, even for fees which the City successfully collects, there is a delay of several months and the entire fine is not always collected due to reductions by the court and other factors outside the City's control. As would be expected, there was a period of time after each approach went operational � when expenditures were higher than the revenue generated, primarily due to the defay in collecting fines, but as of now the program is self-funding. Year Gross Revenue Expenditures Net Revenue/ Loss � '07-`08 $18,086 $59,25v $41,149 '08--`09 $86,142 $120,397 $34,255 '�9-` 10 $369,480 $187, 352 $182,128 Total To Date $473,708 $367,004 $1 �6,704 As this chart demonstrates, the Redflex enforcement program lost money the first two years and became self-sufficient in the third year. The program has presently recouped all of its previous losses and generated $'106,704 in total additional revenue. The revenue increase can be attributed to: 1) the collection of fines from the county has become more consistent; and 2) both approaches were operational for the entire fiscal '09-'10 year. For the previous two fiscal years only the eastbound Whipple approach was operational, and for only four months of fiscal year '2007-08. Based on the average revenues and expenditures for both approaches over the previous six month period, the projected net revenue for fiscal year 2010-'11 would be approximately �325,000. If the City allows the Redflex program to run for the remaining length of the contract, and presuming the number of violations cited and fines collected remains static, the program should generate approximately $325,00� in net revenue in each of the next two fiscal years and $217,000 of net revenue in the final partial fiscal year (through March 2013). Should the City terminate the contract due changes in state law or published court , decisions which impact the viability of photo red light enforcement systems there is no early termination pena[ty per the terms of the contract. 6 �