Okay, so City Hall was responsible for the damage to City Hall.
But blaming the city for everything still strikes me as absurd. It was a private enterprise that dug tunnels without getting permits from the city, and it created a problem.
Saying it's totally the city government's fault strikes me as nonsense given that reality.
I'll grant them some responsibility, because government does tend to clean up when private industry leaves a mess, but it seems far from total to me.