The Sandy Springs City Council recently authorized its legal staff to pursue “all legal avenues” against the Fulton County Perimeter Community Improvement District and consultant CH2M Hill Inc. to protect the city in a dispute over nearly $2.8 million in federal highway funds.

The funds went toward a project several years ago involving Peachtree-Dunwoody Road from I-285 to Abernathy Road. The Federal Highway Administration, through the Georgia Department of Transportation, is now seeking the return of the grant monies, according to Sandy Springs.

A 2014 federal audit found non-compliance with conditions of the grant, including a “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 said. A Perimeter CID spokeswoman declined to comment. Efforts were being made to contact CH2M.

Sandy Springs was the road project’s sponsor. It was administered by the Perimeter CID. At the time, CH2M Hill was under contract with the newly incorporated city to provide general government services in certain areas. The city contends its agreements with both parties contained indemnification and hold harmless provisions in its favor.