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City attorneys contend SM was never to blame

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Construction Co., which is the general contractor in charge of building the new Santa Monica Library. The old library, located at Sixth Street and Santa Monica Boulevard, was razed in June 2003 to accommodate the site for the new Main Library, still under construction, said librarian Greg Mullen.

Deputy City Attorney Eriko Matsumoto, who handled the case, said Morley Construction Co., which entered into a contract with the city, had an obligation under the law to provide uncontaminated soil. It’s also a claim Hoyas said Watson was hoping to address in the lawsuit.

City Attorney Marsha Moutrie reported that Morley would be paying City Hall as a result of the agreement, which was approved by the Santa Monica City Council.

Matsumoto wouldn’t discuss details of the settlement until it’s finalized. However, she has previously indicated City Hall isn’t responsible for what happened on the Dominguez Center site.

The Santa Monica Library site has been cleared of asbestos, Matsumoto said. She also said the lawsuit didn’t interfere with the opening of the new Main Library, a $57.8 million project which is set to go online after a grand opening celebration is held on Jan. 7.

The South Coast Air Quality Management District issued a notice of violation April 30, 2004, against Santa Monica and Morley Construction Co. as a result of the soil delivery, according to a city audit.

Matsumoto said the Watson claim was rejected last year by City Hall’s risk management department, which is what prompted the company to file suit earlier this year.

Charlie Nugtillo, vice president of Morley Construction Co., didn’t comment on the case.

Shoring Engineers, Inc., Morley’s subcontractor which is believed to have transported the soil, didn’t return calls seeking comment.

Assistant City Manager Gordon Anderson said the remediation occurred between September and November of 2003. He wouldn’t release figures on the remediation costs until the settlement was finalized.

Asbestos is the common name for natural minerals that easily separate into dust fibers, according to the Environmental Protection Agency. Asbestos is chemically inert and heat-resistant, which makes it useful for fire-proofing and insulating. Once considered a health risk only for asbestos workers, it’s said to be a potential hazard for millions of people on and off job sites who are routinely exposed to it, according to the EPA.

According to the complaint, Watson didn’t specify the exact amount of damages the company was seeking. However, the settlement sought to recover from the loss, which includes the cost of assessing the contamination; repairing and restoring the Dominguez site; increasing construction costs from the contamination delay; missed rent, financing and business opportunities; diminution of property value; future insurance costs; and damage to business reputation.

The Watson Land Co. has master planned more than 1,000 acres of industrial and commercial property, according to a company profile. In addition, Watson has developed and now owns and manages approximately 12 million square feet of industrial, office and technology buildings and business centers.

Morley Construction Co. is one of the largest Southern California-based general contractors, specializing in projects built principally of steel and reinforced concrete, according to a company profile. Morley constructs commercial, institutional and multi-family residential buildings, as well as parking structures. Morley also protects older structures through seismic strengthening, modernization and preservation efforts.

Shoring Engineers has performed work throughout the western United States since 1964, with projects completed in California, Arizona, Utah and Nevada.

Originally published in the Santa Monica Daily Press print edition on October 27, 2005. Read the original PDF.

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