The city of Oroville has sued the state’s Department of Water Resources, alleging that decades of mismanagement were to blame for the Oroville Dam’s near-failure in February 2017 and the emergency evacuation of 188,000 people.

The suit, filed Wednesday in Butte County Superior Court, calls on the DWR to cover millions of dollars in economic and infrastructure losses incurred by the dam’s issues.

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California has restructured a key water agency in the wake of a scathing independent report on last year's crisis at Oroville Dam. Changes announced Wednesday include naming a new director for the California Department of Water Resources. Gov. Jerry Brown named longtime water official Karla Nemeth as the new agency director.

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“The alleged failure of the Oroville Dam represents millions of dollars lost to our California economy and, along with the fires that have devastated California, combine to make our rural areas very difficult to live and work in,” said David Janes, one of the attorneys representing the city.

Raging storms in early 2017 caused a crisis at the nation’s tallest dam, which controls water delivered to 25 million people across California. It was built in 1968 and is 770 feet high and almost 7,000 feet long. The heavy rains last year led dam operators to release flows down the Feather River, but concerns arose when a crater appeared on the main spillway. Water also poured over a previously unused emergency spillway, resulting in the mass evacuation order.

The spillover damaged Oroville’s roads and infrastructure and issued a blow to the economy, city officials claim, noting that the cost of evacuating residents also drained Oroville’s budget.

The lawsuit attributes the dam’s near failure to decades of mismanagement, which allegedly carried over to a “culture of corruption and harassment,” in particular against women and minorities. The complaint also refers to some department officials as the “water mafia” and alleges that supervisors and employees stole state equipment.

A spokeswoman for DWR said the agency does not comment on pending litigation.

At The Chronicle’s request last February, Robert Bea, a professor emeritus and engineering expert at UC Berkeley, reviewed four dam inspections that were conducted between 2008 and 2016 by the Division of Safety of Dams, which is part of the DWR. The cratering of the main spillway, he determined, occurred in a spot where cracks and other defects had been found repeatedly since 2009.

Oroville’s lawsuit alleges that the dam was originally designed by an “inexperienced engineer who was hired directly from a university post-graduate program,” and that DWR was aware of the structure’s vulnerabilities. The complaint also said that structural issues with the dam were known to DWR as far back as 2000, and supervisors routinely fabricated reports on cleanup and maintenance projects.

“This case calls out for a total evaluation of our water projects and how they are being neglected and mismanaged by those in control of the delivery of water in California,” said Joseph Cotchett, one of Oroville’s attorneys in the suit.

Since the crisis last year, DWR has received criticism from independent experts for its handling of the dam’s upkeep, resulting in a shakeup at the department.

Federal regulators tasked a team of six with investigating the dam, and the group released a 584-page report that found both the DWR and Federal Energy Regulatory Commission, which is responsible for inspecting all dams that generate electricity, had failed to recognize and address issues with the Oroville Dam before the crisis.

The report also criticized the DWR’s culture of complacency, leading Gov. Jerry Brown to name a new senior state water official to head the department — the fourth person to hold that position since 2016.

Karla Nemeth, a deputy secretary and senior adviser at the California Natural Resources Agency, will take over as the head of DWR pending senate confirmation.

Oroville’s lawsuit also attempts to link allegations of dam mismanagement to a toxic work culture that included racism and sexual harassment, as well as allegations of theft.

DWR supervisors allegedly allowed a noose to be hung in a meeting room for several months that was used daily by the staff, according to the complaint. The noose, which was pictured in the lawsuit, reportedly remained in the room until an African American employee removed it.

That same employee — one of just two African Americans hired at the dam over a 20-year period, the complaint said — allegedly found a doll hanging in his locker and was called a racial epithet, in addition to being told that his job was “not like picking cotton.”

The lawsuit also claims that DWR’s female employees consistently faced harassment. A work conference held for women was referred to as the “Dyke Conference,” the complaint said. When women spoke out about harassment, the lawsuit claimed, they were subject to physical threats outside of work.

Sarah Ravani is a San Francisco Chronicle staff writer. Email: sravani@sfchronicle.com Twitter: @SarRavani