The Forney City Council voted unanimously Tuesday night, March 19, at the Forney City Council Meeting to settle the lawsuit by Pate Transportation and its subsidiary company, Forney Roadbuilders, against the City of Forney.
The Forney City Council voted unanimously Tuesday night, March 19, at the Forney City Council Meeting to settle the lawsuit by Pate Transportation and its subsidiary company, Forney Roadbuilders, against the City of Forney.
The City Council approved a $2 million settlement payment to Pate Transportation Partners. The settlement agrees to pay the approximately $1.2 million in unpaid invoices for work completed and $800,000 in other expenses incurred by Pate Transportation.The settlement will also eliminate the need for a trial.
The $1.2 million will be paid with bond monies already set aside for the construction work, because it was already completed. The $800,000 will likely come from the City's contingency fund which is primarily used for cases such as this or natural disasters such as the April 3rd tornado that hit Forney last year.
On March 6, 2007, the City of Forney hired Pate Transportation Partners for their knowledge of the state's once-new financing program called “pass-through” funding to complete much needed road projects in Forney. On December 21, 2010, the Forney City Council officially voted to terminate the contract with PTP effective January 13, 2011, and later cited issues in court documents as to why the contract was terminated.
“Our goal from the beginning was to get these roadway projects completed on time and on budget and to ensure improved traffic flow and safety for Forney area drivers. Despite the lawsuit, the City is well on its way to achieving this goal. We have completed the Highway 80/FM 548 interchange and the FM 741 improvements and have started the FM 740 work. We have been able to work with our current construction manager to expedite the projects and therefore receive a greater annual reimbursement from the State. This in turn will allow the City to pay off the Roadway Bonds, approved by voters in 2006 to finance the projects, twice as fast as originally scheduled,” said Forney Mayor Darren Rozell.
In a press release, the City explains what the expedited construction means for taxpayers, “The City is due to receive reimbursement from the State of Texas in the amount of $40 million for the cost of the projects as part of the Pass-Through Toll Program. Under the accelerated reimbursement schedule, the City will receive the full $40 million ten years earlier than originally anticipated, thereby saving Forney taxpayers $5.94 million. The reimbursement is dedicated to the repayment of the Roadway Bonds.”
According to the release, "The settlement also secures Pate’s assistance in identifying and gathering original records the City has been asked to submit to the Federal Highway Administration," records that Pate Transportation Partners kept after the termination of the contract. The documents are crucial to receiving an additional $5.6 million Bottleneck Grant from the Federal Highway Administration.
“The vote by the City Council brings an end to the litigation that has been going on now against the City for almost two years, and it means certainty of a result that we can plan for, at an amount we have budgeted for, and closure for all parties concerned,” said Mayor Rozell after the Council’s vote. “We believe the settlement is in the best interest of the citizens of Forney because it allows the City to move forward and to focus its attention and resources on the future.”
