The Ocala City Council will issue a final vote on Tuesday to accept a $110,000 settlement stemming from an incident where a company that was drilling to install fiber optic cable ruptured a city water line and spilled thousands of gallons of wastewater onto a local roadway.
The settlement agreement will be presented during the council’s regular meeting on Tuesday, December 16. The item is part of the council’s consent agenda, which is enacted with one vote.
The tentative settlement, reached after mediation on November 20, aims to resolve a lawsuit the city filed against FiberPro Network Services, LLC, on February 19, 2024. According to city staff, the drilling incident occurred on or about November 3, 2022, along SE 25th Avenue near the intersection of SE 14th Street.
On that day, while FiberPro and one of its subcontractors were using directional boring to install underground conduit for fiber optic cable, their drill struck a 12-inch reclaimed water line.
The strike caused a spill of thousands of gallons of reclaimed water and damaged the roadway. The city completed emergency repairs to the water line and conducted extensive resurfacing of the roadway at a total expense of $196,235.99.
During a follow-up investigation by the city, staff found that FiberPro failed to obtain a required right-of-way permit from from the city for the drilling.
FiberPro, however, disputes that liability, arguing that the city failed to adequately mark the reclaimed water line during the “811 Sunshine” utility locate process, making the company unaware of the line. FiberPro also claims that any negligence is attributable to its subcontractor, Zaldivar Conduit Installers, LLC, an entity which dissolved soon after the incident.
Furthermore, the company disputes the city’s claimed damages, arguing the cost is excessive because much of the roadway was resurfaced more than once, and more area was resurfaced than necessary.
The city contends the resurfacing was necessary to ensure structural integrity and address multiple underlying cavities, though FiberPro disputes these cavities resulted from the incident.
FiberPro’s last settlement offer prior to mediation was $13,000.00.
The $110,000.00 tentative settlement was reached following “thorough negotiations,” according to city staff, who find that the settlement represents a reasonable resolution that avoids the additional costs of continued litigation.
If approved, the parties acknowledge that the claims are disputed and the city would agree to release all claims against FiberPro and its contractors related to the incident. Neither party or their insurers would be making an admission of liability or insurance coverage or a confession of judgment, according to the agreement.
The Ocala City Council regularly meets on the first and third Tuesday of every month. It next meets on December 16, at 4 p.m. at Ocala City Hall (110 SE Watula Avenue).