The council voted 6-3 May 29 to commence negotiations with Affiliated Computer Services Inc., a private Texas-based company.
If negotiations go well, the next step will be to set up a series of test sites around town. The goal of the testing sites would be to determine the effectiveness and revenue potential of the camera system.
The proposal before the council is a 10-camera system at intersections throughout the downtown area.
Each camera will cost the town an estimated $65,000.
The costs for operations and maintenance for the cameras will fall to the company, which will take home the majority of the revenue produced from the $50 fines for red light violations.
The proposal has faced criticism from Chapel Hill Mayor Kevin Foy and council members Mark Kleinschmidt and Bill Strom.
Kleinschmidt was adamant that the camera system not be put into effect.
"The whole idea is an abomination," Kleinschmidt said. "It's a massive violation of our citizens' civil liberties.
"Never did our founding fathers expect 24-hour surveillance of the populace."