Funds Allocated to Repair Library

The city will spend $409,000 in reserve funds to repair its problem-plagued, 5-year-old library while legal battles over its construction continue. Council members agreed Tuesday night to repair a leaky roof and windows, and replace water-damaged carpet before the start of the rainy season. But City Atty. Alan R. Burns said costs could increase if more water damage is found inside the walls once repair work begins.

The city-owned library is operated by the county.

The city awarded the contract to build the library to Rainey Construction Co. of La Habra in 1989. But after the completion in 1991, the company filed suit against the city, seeking compensation for costs allegedly caused by design problems and subsequent construction delays.

The city then filed a lawsuit against the construction company, subcontractors and architect because of water leaks.

Another lawsuit was filed against the city by state labor officials, who said the city should have withheld part of the funds paid to the contractor for library construction. Final payments should not have been made, state officials said, while the state had a pending claim against the company alleging that it failed to pay workers the “prevailing wages” required on public works projects.

Fountain Valley paid $85,000 to the state in April 1994 and has since received about $23,000 back as a result of the state’s litigation against the contractor, Burns said. The city also spent about $10,000 on temporary repairs to the library.

“If we do not repair the library, we’ll hear that we did not mitigate our damages and it will be used against us,” Burns said. “So this is somewhat of an easy decision, although a painful one.”

The complex tangle of legal actions are scheduled for trial in March, but city officials are hoping a settlement can be reached.