Scottsdale-Based Redflex Helps State Cash in on Speeding Tickets - PhoenixCEOCFO.com

Scottsdale-Based Redflex Helps State Cash in on Speeding Tickets

Scottsdale-based Redflex Traffic Solutions, a maker of photo enforcement radar, won the contract to install over 100 cameras on Arizona freeways which the Governor expects to generate $90 million a year in fines. Motorists will be cited for driving 10 miles per hour above posted speed limits, according to the Arizona Department of Safety. The fine for speeders will be around $181.50 which includes a 10 percent surcharge for public financing for political campaigns. The new law was passed in July 2008 to authorize the use of photo enforcement radar and that all fines go to the state general fund. The law did remove the points from photo enforcement tickets and the department says that insurance companies will not be notified.

Redflex Traffic Systems beat out Nestor Traffic Systems and American Traffic Solutions to win the $20 million contract. The plan is to have the first 50 cameras operating on September 26, 2008, the day the new law takes effect. An additional 50 cameras are planned for the end of the year.

It is the biggest win to-date for Redflex Traffic Systems, the US arm of the Melbourne-based company, and this contract was the first statewide speed enforcement program in North America. In addition the contract awards Redflex Traffic Systems $28.75 for every ticket paid to the state.

Photo enforcement is not very popular; however, when the state of Arizona saw an opportunity to make up a budget shortfall, the state became the first one in the country to implement it statewide.

The contract is for two years, plus three one-year extensions.

John Laub is the Chairman of the Phoenix CEO-CFO Group.

1. "Statewide Photo-Enforcement Plans a Boon for Redflex." Jane Larson and Samantha Hauser. The Arizona Republic. July 19, 2008.

2. "Contractor to Get Cut of Photo Radar Tickets." Howard Fischer. Capitol Media Services. July 17, 2008.

3. "Redflex Gets US Green Light." Philip Hopkins. The Age.com.au. July 25, 2008.