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City of Colorado Springs / Transit Service / News

City Reaches Tentative Settlement with First Fleet/First Transit
Wednesday, April 10, 2013


City Reaches Tentative Settlement with First Fleet/First Transit

 

After over three years of litigation, the City of Colorado Springs and First Fleet/First Transit have reached a tentative settlement agreement over the City's decision in November 2009, to terminate a 2006 contract with First Fleet/First Transit services.  A prior City Manager and City Council had determined it was in the City's best financial interests to terminate the contract. Such termination resulted in general fund savings but also resulted in several claims being filed against the City.

 

Today, the City Attorney's office advised Mayor Bach and City Council that it was in the best interest of the City to settle Transit litigation claims in state and federal court in order to avoid the risks inherent in the litigation and to further preserve the General Fund balance.  The Office also advised Council that the funds for settlement needed to be approved by emergency ordinance in order to allow a settlement to be quickly reached.

 

City Council deemed it appropriate that this emergency ordinance be published and available for inspection and acquisition in the office of the City Clerk.  The emergency appropriation association involves negotiation of the settlement of an ongoing legal dispute, which will be incorporated into a definitive settlement agreement. 

 

City Staff cannot further comment on the merits of the claims or the settlement until a final agreement is reached.

 

Mayor Steve Bach said, “This $8,000,000 loss out of our reserves is a painful example of why we must continue to transform City government.”

 

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After over three years of litigation, the City of Colorado Springs and First Fleet/First Transit have reached a tentative settlement agreement over the City's decision in November 2009, to terminate a 2006 contract with First Fleet/First Transit services.  A prior City Manager and City Council had determined it was in the City's best financial interests to terminate the contract. Such termination resulted in general fund savings but also resulted in several claims being filed against the City.

Today, the City Attorney's office advised Mayor Bach and City Council that it was in the best interest of the City to settle Transit litigation claims in state and federal court in order to avoid the risks inherent in the litigation and to further preserve the General Fund balance.  The Office also advised Council that the funds for settlement needed to be approved by emergency ordinance in order to allow a settlement to be quickly reached.

City Council deemed it appropriate that this emergency ordinance be published and available for inspection and acquisition in the office of the City Clerk.  The emergency appropriation association involves negotiation of the settlement of an ongoing legal dispute, which will be incorporated into a definitive settlement agreement. 

City Staff cannot further comment on the merits of the claims or the settlement until a final agreement is reached.

Mayor Steve Bach said, “This $8,000,000 loss out of our reserves is a painful example of why we must continue to transform City government.”