The Denver Glazing Contractors Association filed a lawsuit Thursday against the city of Denver and three former Denver City Council members, claiming that they failed to pay for city-owned equipment in violation of the state’s Fair Labor Standards Act.
In a statement, the group said it would ask the Colorado Supreme Court to invalidate the contracts and the city’s subsequent refusal to pay them.
The lawsuit alleges that the contracts were not approved by the City Council, and instead were negotiated and executed by the contractors, who were paid $15 million in severance and other compensation.
The association claims that the city did not follow proper procedures in approving the contracts, which were awarded to a former City Council member, Chris Daley, for the Denver Water and Power project in 2008.
The company also alleged that Daley was paid millions in bribes.
Denver is facing more than a dozen lawsuits from contractors who claim they were not properly compensated for work done on city-controlled projects.
The city has said that it will pay more than $100 million in damages to contractors who have been fired or laid off.
Denver Water spokesman Chris Saldana said in a statement that the contract is “not a public trust, and the contract was approved by Denver’s Department of Human Services.
The City of Denver is a city-run organization, and Denver Water operates its water distribution system on behalf of the people of the City of Colorado.
We are cooperating fully with the attorneys and will vigorously defend our clients in this matter.”