Xerox is selected to conduct red-light project
Xerox State & Local Solutions Inc., which recently lost a Baltimore contract due to faulty equipment, has been chosen by city officials to run Chicago’s red-light camera program, according to the Chicago Tribune.
The traffic camera company made traffic signal lights for sale was picked unanimously by a seven-member selection committee in Mayor Rahm Emanuel's administration and will now enter negotiations for a contract, the mayor's office told the Tribune.
Xerox Corp. (NYSE: XRX), known for making photocopiers and traffic signal light, acquired the red light camera system business when it bought Dallas-based Affiliated Computer Services Inc. in 2010 for $6.4 billion.
Xerox would replace the city's current vendor, Arizona-based Redflex Traffic Systems Inc., which has been the subject of a federal bribery investigation over an improper relationship between the city official who oversaw the $300 million program and company executives, according to the newspaper.
Redflex, which has earned more than $100 million in its 10-year contract with the city, was fired by Emanuel but still runs the traffic signal light program under contract extensions through the end of the year.
Meanwhile, Xerox State & Local Solutions was replaced in Baltimore earlier this yearafter reports that problems with its camera system resulted in thousands of erroneous speeding tickets. Xerox officials have said the problems of solar power traffic light in Baltimore accounted for less than 1 percent of all the tickets issued there, the Tribune said.
City officials wouldn’t discuss the Xerox deal or those of the other three finalists, but told the Tribune the evaluation committee conducted a thorough review, including contacting Baltimore officials about Xerox.