METRO, Spanish rail car company reach settlement

December 17, 2010 11:04:04 AM PST
METRO says they've reached a settlement with a Spanish company with which they had a contract to build rail cars for its North and Southeast Corridor lines. In a press release issued today, the transportation agency says under the deal, the contracts are canceled and the Spanish Company, CAF, will refund $14 million to METRO. METRO's board approved the deal this morning.

"This is $14 million more for public transportation than we had yesterday," said METRO Chairman Gilbert Garcia. "More importantly, it's another step forward from old legacy issues to the safe, reliable and affordable public transit and mobility services that our customers and taxpayers deserve."

Back in September, the Federal Transportation Administration found CAF and prior METRO management violated federal law, putting $900 million in federal grants in jeopardy.