COLORADO SPRINGS, Colo. - The City of Colorado Springs has announced tentative plans to settle lawsuits filed by First Fleet/First Transit for $8,000,000.
According to City spokeswoman Julie Smith, the agreement comes after more than three years of litigation that began over the City's decision to terminate a contract with the company. The contract had been signed in 2006, but in 2009 the City Manager and City Council decided it would be in the City's financial interests to terminate the contract.
"This $8,000,000 loss out of our reserves is a painful example of why we must continue to transform City government," Mayor Steve Bach said in a statement provided by his spokeswoman.
Tuesday, Smith wrote, the City Attorney's office advised the Mayor and City Council to settle the claims, but the expenditure needs to be approved by emergency ordinance.
The City Council decided it was appropriate that this emergency ordinance be published and made available in the office of the City Clerk.
Tuesday, the city also announced plans to settle a wrongful termination lawsuit filed by a former employee for $250,000.