State Capitol News
4:24 am
Mon January 19, 2009

Scottsdale Firm Drops Appeal for Photo Radar

Phoenix, AZ – American Traffic Solutions said it makes no sense to try to wrest
the contract from Redflex Traffic Systems, which began operating
the fixed and mobile cameras in late September.

ATS stated it was
dropping the appeal because it didn't want the state to have to
change vendors in the middle of the financial crisis. However, the
move by ATS came only after the Federal Communications Commission
signed a consent decree with Redflex over that company's illegal
operation of certain kinds of radar equipment. Redflex officials
never denied having gotten the proper certification, but instead,
said it was an oversight.

In its appeal, ATS argued that this meant
Redflex was not a, "responsive or responsible" bidder.
But, the FCC still concluded there was no reason to believe Redflex did
not have, "the basic qualifications, including those
related to character, to hold or obtain any commission license or
authorization." That finding likely undermined ATS' appeal that
Redflex was unqualified. That FCC settlement, however, came at a
price: Redflex agreed to make a "voluntary contribution'' of
$22,000 to the government. But that pales in comparison with the
estimated $20 million Redflex could get in just nine months from
the state contract in its share of the fines paid by speeding
motorists.