#RedLightCameras

Australian investors in the photo enforcement firm Redflex Traffic Systems voted down a buyout offer from toll road giant Macquarie Bank and the asset management firm Carlyle Group at a general meeting in Melbourne today. The recently sweetened deal would have paid A$2.75 per share, or $305 million total, to take over the speed camera and red light camera business.

“Your directors unanimously recommend that shareholders vote in favor of the improved scheme proposal, in the absence of a superior proposal,” Redflex Chairman Max Findlay told assembled shareholders. “I can confirm that no superior proposal has been received.”

The Los Angeles, California police commission voted 3-2 on Tuesday to approve a report defending the status quo regarding the use of red light cameras. In January, the city council tasked the commission with reviewing a report by Safer Streets LA that found the department had misrepresented accident statistics to make the program appear effective ( view report, 250k PDF). Another report suggested lengthening yellow times one second beyond the bare minimum would reduce violations and accidents ( view report, 450k PDF). A third report concluded that 75 percent of tickets were issued for rolling right turns, which have never been a significant cause of accidents in Los Angeles ( view report).

A New Mexico district court judge on Thursday transferred a case challenging the legality of photo enforcement systems to the state’s second highest court. In a written decision, Judge Manuel Arrieta suggested it would save time and expense for the court of appeals directly to weigh the case against Cristobal Rodriguez who was issued a red light camera ticket by the private company operating on behalf of the city of Las Cruces.

The employee of a photo enforcement firm was arrested in Victoria, Australia yesterday after being accused of adjusting the speed readings in a database of photo tickets. Police believe the man identified as a 36-year-old from Craigieburn changed the date, time, speeds and other variables on a total of 67,541 red light camera and speed camera citations. The data were altered between February and March while the man worked for Serco, the private firm in charge of ticketing operations.

The city council in Highland, California decided three years ago to allow an Australian company, Redflex Traffic Systems, issue tickets at two intersections. Nearly 4300 “violations” have been generated since August 2008, each worth nearly $500. A committee of the council opened debate yesterday on whether the automated ticketing machine contract should be renewed. When the same question was debated last year, officials focused on safety.

The California Senate Appropriations committee voted 9-0 on March 29 to advance legislation that would alter the way red light cameras operate in the state. State Senator Joe Simitian (D-Palo Alto) re-introduced legislation that had stalled last year tweaking some of the more controversial aspects of automated ticketing programs.

An Australian company has hired kingmakers from Chicago, Illinois to prevent Texas residents from being able to decide whether or not red light cameras should be used in their community. A “grassroots” group calling itself the Texas Traffic Safety coalition filed a lawsuit to stop the city of Port Lavaca, Texas from holding a referendum on the photo enforcement program run by Melbourne-based Redflex. Although no court order was issued in the case, the city council decided not to hold the election, despite the city charter’s instruction that the council must place a qualified petition on the ballot.

Lawmakers in four states this week advanced legislation that would, if passed, either place mild restrictions on or outright ban the use of automated ticketing machines by municipalities. The Florida state Senate Transportation Committee on Tuesday voted 4 to 2 to approve an outright prohibition on the use of red light cameras — just one year after the legislature had given in to the lobbying effort of localities in authorizing their use. Senate Bill 672 must now clear the Senate Community Affairs Committee before being considered by the full Senate.

A Grand Jury in Napa, California last month issued a report calling for reform and refunds in the city’s red light camera program. The jurors uncovered yellow light timing discrepancies and an unusual dependence upon right-turn tickets to generate revenue at the most productive intersection. The Australian vendor Redflex Traffic Systems began issuing tickets in May 2009, and citations at four intersections now cost $475 each. So far, 9278 tickets worth $4 million have been mailed — 3789 of which were sent to vehicle owners that turned right on red.

A Los Angeles County, California court last month distanced itself from judicial colleagues in defending the use of red light cameras. A three-judge appellate division panel on February 14 upheld the validity of photo ticketing despite the contrary holdings of the appellate division in Alameda, Kern, Orange, San Bernardino and San Mateo counties.

The US Court of Appeals for the Ninth Circuit on Friday decided that photo enforcement vendors American Traffic Solutions (ATS) and Redflex were too much at odds with one another to participate in a court mediation program designed to settle tough cases without going to trial. Each firm has filed suit questioning the integrity and ethics of the other. Redflex refers to “ATS’ pattern and practice of consistent false representations.” ATS, in turn, claims Redflex has been making “false and misleading statements of fact concerning its photographic traffic enforcement products and services.”

Red light running all but disappeared at a New Jersey intersection after the duration of the yellow light warning time was increased under threat of a lawsuit. Glassboro gave the private company American Traffic Solutions (ATS) permission to issue red light camera tickets at the intersection of William Dalton Drive and Delsea Drive on March 26. The location was so successful at issuing $85 tickets that it generated $1 million worth of notices within just seven months.

The largest operator of red light cameras and speed cameras in the United States experienced essentially no growth in the first half of the fiscal 2011. Melbourne-based Redflex Traffic Systems told Australian investors Friday that its revenue increased by a three-tenths of a percent over the same period last year — less than the rate of inflation. In 2009, Redflex sales were booming with the activation of 445 new systems. In 2011, Redflex only boasted eight new contracts.

“As a result of the macro economic challenges facing the US market throughout 2010, and the current politically challenging times, new contract executions have declined,” the Redflex filing explained. “The number of installed systems includes some cameras that may not be generating revenues for various reasons including: warning periods; delays in going live; legislative issues; road work; or maintenance actions.”

Redflex Traffic Systems of Australia today announced that the Australia-based toll road giant Macquarie and the asset management firm Carlyle Group would spend $300 million to dominate the red light camera and speed camera business.

“The proposed acquisition of Redflex by the consortium will be by way of a scheme,” Redflex stated in its announcement to the Australian Securities Exchange. “The scheme is subject to certain conditions including Redflex shareholder and court approval, regulatory approvals and other conditions that are usual for a transaction of this nature.”

The Las Cruces, New Mexico city council on Monday agreed once again to continue using a photo enforcement program that has proved to cause a significant increase in accidents. The jurisdiction in May reluctantly complied with a New Mexico Department of Transportation (NMDOT) order shutting down automated ticketing on state roads. Officials ignored the evidence at the time that accidents had increased, not decreased as promised, at photo enforced locations.