Cost
Neutrality - How They Conceal It
The wording and organization of most
RedFlex
contracts is pretty much the same, with everything in
the same place -
except when it comes to the cost neutrality clauses,
which are
worded
in many different ways, and often move around.
Cities having cost
neutrality must feel
guilty about it (legal term: mens rea),
because they sure
go to some
lengths to disguise it and/or hide it.
Hiding
It
The most common,
and most logical, location for cost neutral clauses
has been in Exhibit
"D," where a contract will prominently say "fixed
price" - often
multiple times - then will
say:
"Cost neutrality
is guaranteed to the city."
However,
some
contracts
locate the clause in a section of the main
body of the
contract. Examples: Commerce and
Modesto in 6.4, Glendale
in 8.2 of its now-expired 2007 contract,
Emeryville and Inglewood in
11.14.
(Modesto's contract now mentions cost
neutrality twice - once in 6.4 of
the 2004 contract, and again in Exh. D of the
2009 amendment.)
Disguised
by
the Wording
Instead of
saying "cost neutrality,"some contracts call for a
quarterly or annual
review, or an audit, followed by a mandatory price
adjustment if
revenue is not
covering the rent (examples: Culver City until
2009, Encinitas
until 2009, Santa
Ana).
Some wording is mysterious, such as the "fixed price not to exceed" terms found, but not defined, in the Elk Grove contract.
A recent clever
wording is
"financial feasibility" (examples: Gardena,
Montebello,
Oceanside, Redlands, San Leandro, Santa Clarita).
The newest clever
wording
is "financial insolvency," found in Exhibit D of the
2011 contract of
the City of Rancho Cordova.
Sometimes
It's
Both
Hidden
and Disguised by the Wording
From
the
"boilerplate"
of
the
2004
Contract
between
Encinitas and RedFlex -
removed by 2009 Amendment
You Should Check
Highwayrobbery.net has not checked all
contracts in California for hidden and cleverly worded
cost neutral
clauses. If you have a ticket, you should check
the contract in
the town that issued it. Most cities' contracts
are posted here on
highwayrobbery.net, or you
can obtain the latest contract and
amendment(s) by phoning or emailing the city clerk, at
City Hall.
Most city clerks will email it to you, for free.
---------------------------------
RED LIGHT
CAMERAS
www.highwayrobbery.net
www.highwayrobbery.net