Contractor Sues Over Civic Arts Plaza Work

The electrical contractor who worked on the Civic Arts Plaza is suing the city for $1.7 million, claiming that sloppy planning and a flurry of last-minute changes by those in charge of the project forced it to do much more work than anticipated.

Amelco Electric of Gardena alleges that city officials and construction consultants made so many sudden alterations to the original plans that the contractor’s costs ballooned to $8.2 million, far more than the $7.2 million it received from the city to do the work.

Amelco is demanding at least $1.7 million from Thousand Oaks to cover the difference in costs plus a reasonable profit, as well as lawyers’ fees.

Company representatives did not return repeated calls asking for comment last week. Attorney Michael G. Long of Watt, Tieder & Hoffar, the Irvine law firm representing Amelco, was on vacation late last week and could not be reached for comment.

James Negele of Negele & Associates, the Los Angeles law firm hired by Thousand Oaks to defend the city, said that Amelco has yet to cite any good reasons why Thousand Oaks should pay the contractor more than it has already.

Amelco did not complain about the changes or its cost overruns until well after it had been paid and the Civic Arts Plaza was open, Negele said. He is seeking to have the suit dismissed.

“When contractors lose money, they have to blame it on somebody,” Negele said. “You would think that if the Civic Arts Plaza construction project was as disastrous as this contractor claims, many of the other contractors would be filing claims against the city. But that’s not the case.

“The problems they [Amelco] are talking about are almost completely unknown to the city staff at this point,” he added. “This is a situation where, after the fact, Amelco is bringing up all these issues, asking for more money.”

So far, Thousand Oaks has spent about $25,000 fighting Amelco, which filed its lawsuit in July. The City Council agreed last week to spend up to $100,000 more to defend Thousand Oaks in what is expected to be a complex and lengthy court battle with numerous construction experts testifying on behalf of both sides. Trial is set to begin in December.

“Construction litigation is very expensive,” City Atty. Mark Sellers said. “You need experts. It’s going to be a jury trial, and it takes a very long time.”

Amelco is not the first contractor to file a lawsuit over the construction of the $64-million Civic Arts Plaza.

Roy J. Hamilton Inc., which poured concrete and installed drainage systems for the mammoth performing arts center and City Hall, sued Thousand Oaks for more than $1 million last year, contending that it was not reimbursed for the extra costs of rushing to complete the project in the rain. Thousand Oaks later settled that lawsuit for $162,000.

In October 1992, Amelco Electric signed a contract with Thousand Oaks to assist in the construction of the Civic Arts Plaza, one of numerous agreements the city made with construction companies for the project.

As part of the deal, Amelco was to complete its work within 698 calendar days.

The company finished its electrical work in time, and the Civic Arts Plaza opened to great accolades in October 1994. But six months later, Amelco submitted a claim to the city arguing that it was owed more money because it had done 52% more work than its original agreement called for. When Thousand Oaks refused Amelco’s claim, the company took the city to court.