(Source: The Sacramento Bee)
By Loretta Kalb, The Sacramento Bee, Calif.
Oct. 20--The city of Elk Grove is winding up the bulk of its legal battles over the ill-fated purchase of a hybrid gas and electric commuter fleet for e-tran and has reached agreements on about $2.3 million in settlements.
The city unveiled its hybrid gas and electric buses in January 2005. The hybrid fleet grew to 21 buses and represented a $10 million city investment.
But the buses ran into problems, and the city filed suit in 2008 against the manufacturers and other transit-related contractors for breach of contract.
Among lawsuit complaints: at least four bus fires, some 30 catastrophic engine failures, noxious exhaust fumes inside buses, and buses unable to achieve freeway speeds with full passenger loads.
The fleet was sidelined in 2008.
Not all settlements have been approved by the court. And none of the defendants reaching agreement admits any liability, court records show.
ISE Corp. of Poway, maker of the hybrid drive system, settled and agreed to pay $1.15 million. Payment is subject to court approval, the city said. ISE insurers have agreed to pay another $600,000, court documents show.
MV Transportation Inc., the operator of the e-tran system, has agreed to settle for $125,000. That settlement also is subject to court approval.
The city also settled with Ameritran Service Corp., the company that provided consulting and engineering work for the fleet's manufacture. Ameritran has paid the settlement amount, $425,000, court records show.
No settlement has been reached with Complete Coach Works of Riverside, which used the ISE equipment in refurbishing the hybrid buses.
How much did the city spend? City officials last week said total attorneys' fees and costs billed to date are $237,300.
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Call The Bee's Loretta Kalb, (916) 321-1073.
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