Errors in paperwork from a project done nearly a decade ago will cost the Fulton Perimeter Community Improvement District (PCID) $2.8 million.
The city of Sandy Springs reached a settlement on Tuesday with the PCID and contractors over assessments the city was forced to pay due to paperwork errors by the improvement district related to a federal streetscape project completed in 2009. The city will not have to pay for for the mistakes or pay any additional penalties, according to the agreement.
As part of the settlement agreement, PCID will pay about $2.1 million to GDOT, a cost that — if not for the lawsuit — would have likely falenl on Sandy Springs taxpayers to pay. PCID will also pay the Sandy Springs about $700,000, which is the amount of grant money the city did not receive from GDOT in fiscal year 2017 because of the paperwork problems.
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“The city is pleased that this matter has been concluded in favor of the city,” Sandy Springs mayor Rusty Paul said in a statement.
The lawsuit stems from streetscaping, sidewalk improvements and environmental work done on Peachtree-Dunwoody Road in 2009. PCID commissioned the project using money from GDOT through a federal grant. Work was completed by contractors, CH2M Hill Inc. and Aecom Technical Services.
In 2014 — well after the work had been finished — an audit from the Federal Highway Administration found that paperwork wasn't in order and the federal government demanded it's money back, according to the 170-page lawsuit, obtained by Channel 2 Action News in June of this year.
GDOT had already paid the contractors, but was forced to return the grant money, leaving the state agency on the hook for a hefty bill. GDOT looked to Sandy Springs, as the PCID’s financial agent, and demanded the city reimburse the state for the bill.
When the PCID refused to reimburse Sandy Springs, the city council authorized legal action against the PCID and CH2M Hill.
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