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. They are
worded
many different ways, and they 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
Insteading 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. Many contracts are posted here on
highwayrobbery.net - but they may not be the latest version. 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