A rocky relationship between Denver Transit Partners, which operates the University of Colorado A-Line between downtown and Denver International Airport, and the Regional Transportation District has landed in court.
Denver Transit Partners, a consortium of private companies that works with RTD, including building and operating the oft-troubled A-Line, filed a lawsuit against the transit district in Denver District Court on Thursday.
Denver Transit Partners, through the lawsuit, is trying to force RTD “to reimburse them tens of millions of dollars for the crossing gate attendants that DTP has been paying for all along,” according to a RTD news release.
The transit consortium is citing a change in law, or a change in the interpretation of law, by federal and state rail safety agencies as being the reason for its failure to get final approval of grade crossings and quiet zones on RTD’s commuter rail system, according to RTD’s news release. Denver Transit Partners is attempting to recoup lost revenue, because of continual grade crossing failures, by suing the district, the release said.
In the lawsuit, DTP accuses RTD of breach of contract, violation of the covenant of good faith and fair dealing and declaratory relief against the district’s refusal to accept change in law and unforeseeable circumstances that prevented DTP from fulfilling its contract during the design and building phase of the project.
According to the lawsuit, DTP’s public-private partnership with RTD includes the financing, design, construction and long-term operation and maintenance of three new commuter rail lines from Denver Union Station to Denver International Airport (the A-Line), south Westminster (the B-Line) and Arvada and Wheat Ridge (the G-Line), among other construction commitments.
“DTP seeks declaratory relief, monetary damages, and extensions of time to which it is entitled” but which RTD has refused to give, the lawsuit claims.
According to the lawsuit, RTD deducted $250,000 monthly from DTP’s service payments from June 2016 through August 2018. DTP has paid for all crossing guards since March 2016 and is claiming a right to reimbursement from RTD.
“DTP is following the steps as outlined in the Dispute Resolution section of the contract agreement with RTD. That procedure calls for a review and decision by the Court when RTD and DTP have not been able to agree on a resolution,” said John Thompson, executive project director of DTP. “This is a commercial matter between the agencies, and DTP is simply protecting its position by exercising the escalation next steps as outlined in the contractual agreement.”
In 2016, RTD withheld $827,000 in payments to Denver Transit Partners for ongoing A-Line problems.
Relations between Denver Transit Partners and RTD showed further signs of strain in May, at an RTD Board of Directors meeting, when directors called out the transit consortium for breakdowns on the A-Line.
RTD says Denver Transit Partners is attempting to make the district pay for crossings and ongoing operational issues.
“For many months now, RTD has been negotiating with DTP about these issues — even though we strongly disagree with DTP and its tactics,” RTD’s release stated. “Late last night (Wednesday), DTP broke off negotiations, and this morning they filed their lawsuit.”
Denver Transit Partners did not immediately respond to RTD’s news release on the lawsuit.
RTD said it’s not to blame for what it sees as Denver Transit Partners issues and lost revenue.
“The RTD board is extremely disappointed that things have come to this pass,” said Doug Tisdale, RTD’s board chair, in the release. “The board fully understands and respects the legal process, and the right of parties to resort to that process. While the board regrets DTP’s action, we are confident that RTD’s position will ultimately prevail.”
