Pacific Bell Sues Santa Ana Over Use of Firm’s Equipment : Courts: City officials say they thought dispute over use of conduits for the traffic signal control system already had been resolved with a seven-year fee schedule.

Pacific Bell has filed a lawsuit against Santa Ana alleging that the city illegally used the company’s equipment to maintain a traffic control system.

Court documents filed Tuesday allege that city workers placed traffic control circuits within conduits operated by Pacific Bell without permission.

City Atty. Edward J. Cooper said Thursday he was surprised and puzzled that the suit was filed, because the city had agreed several months ago to pay rent for using the conduits.

“I thought we’d reached agreement,” Cooper said. “I don’t understand why they would do that. We’ve been willing to work with them right along.”

Pacific Bell attorney Lori L. Ortenstone, who filed the lawsuit in Orange County Superior Court, did not return calls to her office Thursday.

The suit alleges that the city improperly appropriated private property for public use and seeks $746,000 in damages, plus interest and attorneys’ fees.

Cooper said that when the traffic control circuits were installed about 10 years ago, city officials received verbal authorization from company employees.

However, since there was no written authorization and the employees who made the agreement no longer work for either agency, Cooper said phone company officials recently demanded payment.

“All of a sudden, a few years later, they said, ‘There’s no agreement, you have to pay the standard tariff.’ So we looked at that issue and negotiated with them,” he said.

Public Works Director Jim Ross said the city has agreed to pay $73,000 a year for the next seven years, during which time the city will construct its own conduits for traffic signal controls.

Cooper said he was disappointed that the phone company initiated a lawsuit to resolve the matter.

“You’d think they’d at least send a letter if they were unhappy with the agreement, or that they would tell me before they would file that. But that just never happened.”