Sandy Springs May Sue Fulton PCID, CH2M Hill Over LCI Project

SANDY SPRINGS, GA -- The city of Sandy Springs could file a lawsuit against two entities over its management of a project designed to bring improvements along a major corridor in the city.

The Sandy Springs City Council at its Aug. 16 meeting authorized its legal team to "pursue all legal avenues to preserve the city’s rights and claims related to liability for non-compliance issues" identified by the U.S. Department of Transportation and the Federal Highway Administration through the Georgia Department of Transportation in connection to the management and administration of the LCI project along Peachtree Dunwoody Road between Interstate 285 and Abernathy Road.

The Council made its unanimous decision following an executive session held after its regular meeting.

Sandy Springs originally served as sponsor of the project administered by the Fulton Perimeter Community Improvement District. During the term of the project, CH2M Hill, Inc. was under contract with the city to provide general government services in the area of public works and administrative services.

The project was developed and administered pursuant to an agreement between the city and PCID. The agreement outlined the framework pursuant to which the PCID would be authorized to proceed with implementation of the project, and included indemnification and hold harmless provisions in favor of Sandy Springs.

In addition, the city’s contract with CH2M for the management and administration of locally administered projects such as the project contained indemnification and hold harmless language in favor of the municipality.

In 2014, the FHWA conducted a review of locally administered projects in each GDOT district. As a result of this review, the FHWA found non-compliance issues in connection with the project, including: lack of information in the files related to materials and testing information; missing sediment and erosion control reports; and failure to include Buy America requirements in the project contract.

Sandy Springs was notified by GDOT in March of its plans to seek federal funding reimbursement in the amount of roughly $2.79 million.

The city then notified PCID in April that it would cooperate with PCID to seek resolution with the FHWA and GDOT to the extent possible; however, the city encouraged PCID to take the lead on the matter as responsibility for the repayment of the federal funding ultimately rests with the PCID under the indemnification provisions of the agreement.

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