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City of Fremont Documents
(and Information)

Fremont, pop. 190,000, is in the East Bay, 10 miles north of San Jose and 25 miles southeast of San Francisco.

  Fremont Docs Set # 3
New Contract - Is It Legal?
New,  12-30-05

The original contract was expiring, so on Sept. 23, 2005 the City signed a new contract with RedFlex.  The new contract includes a new compensation scheme so complex that I am having trouble telling if it complies with the CVC 21455.5 "pay-per-ticket" prohibition.  (See Defect # 10.)  Maybe a judge will have to decide.  But if you are an accounting or contract whiz, have a look at it, let me know what you think.  The applicable pages are below.

The original contract, signed in 1999, required the City to pay RedFlex $115.09 per ticket, upon conviction or payment of the fine.  New legislation effective Jan. 1, 2004 outlawed such "pay-per-ticket" deals, but grandfathered them until the contract was renewed or modified. 

Here below is the compensation section from Fremont's new contract.  It specifies a flat amount to be paid each month, which would appear to comply with the new legislation.  However, the Implementing Agreement, further below, leaves matters much less clear. 

Exhibit B, second page:

The Implementing Agreement, below, is separate from the contract.

Implementing Agreement, second page:

Section 8.4, mentioned above, is reproduced at the bottom of this web page.

For October 2005, RedFlex invoiced the City two ways.  The first invoice, under the terms of the original contract, is for tickets paid/convicted at court.

The second October invoice, below, is the flat rate charge, under the new contract.
I intend to ask the City how much actually was paid to RedFlex.

The page below includes Section 8.4 of the contract, as mentioned in the Implementing Agreement, above.