Learn from this city; too expensive to get out of the contracts. Solution: don't sign them in the first place

San Bernardino, facing having to pay $1 million to get out of its red-light traffic enforcement camera contract, decided Monday to instead continue the program by eliminating some intersections, adding new ones and upgrading the technology at other intersections.

The City Council approved, 5-2, a new deal with American Traffic Systems that expires the same date as the old contract, July 2014.

"Ultimately it came down to the fact that when we looked at the cost of getting out of it, the penalties associated with that, it was much better for the city to proceed with renegotiating," City Manager Charles McNeely said after the meeting.

The new contract moves some cameras out of intersections where violations have been reduced, provides a larger call center for the public and a better computer system for officers who review tickets.

The council had voted in March end the contract, based partly on a memo from the city attorney's office that said the city's cost would be about $115,000. American Traffic Systems countered that the city's cost would be $1.9 million, the value of the remainder of the contract.

That higher figure shocked council members. The city negotiated it down, but only to $1 million.

In a public spat over the discrepancy, the city attorney's office said the figure was miscalculated because the Police Department provided incorrect definitions of "approaches" and "intersections" in the contract. The Police Department blamed the city attorney's office, saying it incorrectly interpreted the contract.

McNeely said Monday the city no longer has any confusion about its terms.

Chas Kelley and Wendy McCammack voted against the new deal.

Kelley said the cameras should not be used as money-makers, and he worries that the council in 2014 will renew the contract for the revenue.

Fred Shorett voted for the new contract but said he would not support a renewal.

The city expects the cameras to cost San Bernardino $552,238 and bring in $662,348 in 2011-12, according to a staff report. The camera company projects the city's cost (not including personnel and administration) in 2012-13 and 2013-14 at $835,740 annually. The company projects annual city revenue for those years at $2,391,830, based on the city historically receiving $69.69 for each ticket.

Here is where cameras are being pulled or added:

Out: University Parkway at Kendall Drive, Tippecanoe Avenue at San Bernardino Avenue, Hospitality Lane at Waterman Avenue, westbound 30th Street at Waterman.

Added: Eastbound and westbound Baseline and Mt. Vernon Avenue, northbound and westbound Baseline at Waterman, northbound and southbound Mill Street at Pepper Avenue. They are expected to be on in January.

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