Submitted By: William E. Sexton, City Attorney
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Presentation By: William E. Sexton
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Department: City Attorney
FORMAL TITLE:
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Approval of settlement in the matter of City of Ocala, Florida versus FiberPro Network Services, LLC, with a proposed settlement amount of $110,000 payable to the City of Ocala, Florida
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OCALA’S RELEVANT STRATEGIC GOALS:
Choose an item., Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On or about November 3, 2022, FiberPro Network Services, LLC (“FiberPro”) was installing underground conduit for fiber optic cable along SE 25th Avenue near the intersection of SE 14th street through use of directional boring. While FiberPro and its subcontractor were directional boring in the City’s right-of-way on SE 25th Avenue, their drill struck a 12” reclaimed water line, which caused a spill of thousands of gallons of reclaimed water and damaged the above roadway. The City, through its contractors, completed emergency repairs of the water line and completed extensive resurfacing of the roadway at the City’s total expense of $196,235.99.
Through its investigation of the claim, the City learned that FiberPro failed to obtain a right-of-way permit from the City which would have permitted said drilling to take place. However, FiberPro contends that the City had notice of the project because it responded to FiberPro’s request for utility locate markings through the “811 Sunshine” process. The City did, indeed, respond to the area to mark its utility lines in the area. However, FiberPro contends that the City failed to adequately mark the reclaimed water line that was struck; thus, FiberPro claims it was unaware of the reclaimed water line and denies liability. FiberPro further disputes liability because it claims that any negligence in carrying out the drilling is attributable to its subcontractor, Zaldivar Conduit Installers, LLC, an entity which dissolved soon after the incident.
The City’s damages are also disputed by FiberPro. FiberPro claims that the City’s claim for damages is excessive because (1) much of the roadway in the area was resurfaced more than once during the repairs, and (2) more roadway was resurfaced than necessary. The City contends that it did no more resurfacing than was necessary. Resurfacing work went beyond the immediate area of the burst pipe to ensure structural integrity of the roadway. Resurfacing in some areas had to be redone because multiple cavities were discovered under the roadway after resurfacing had begun. FiberPro disputes that these cavities resulted from the subject incident.
The City filed suit against FiberPro on February 19, 2024, and the parties have extensively litigated and negotiated the case. FiberPro’s last settlement offer prior to mediation was $13,000.00. The parties met for mediation on November 20, 2025. After thorough negotiations, the parties reached a tentative settlement in the amount of $110,000.00, subject to Council approval. The proposed settlement requires that the City release all claims relating to the incident against FiberPro and its contractors.
Pursuant to City of Ocala Resolution 2019-10, a settlement in the amount of $110,000.00 requires approval of the City Council, based upon recommendations from the City Manager, the City Attorney, and the Human Resources & Risk Management Director.
An agreement to settle this matter at this time will avoid the additional costs of continued litigation-including discovery costs, expert witness fees, and other expenses-and will prevent the possibility of an adverse judgment at jury trial in favor of FiberPro.
FINDINGS AND CONCLUSIONS:
City staff, including the City Manager, City Attorney, and Human Resources & Risk Management Director, finds and determines that settlement of this matter for the sum of $110,000.00:
• Represents a reasonable settlement of the pending litigation while avoiding additional costs of litigation and the risk of an adverse judgment at trial;
• Results in a benefit to the finances of the City of Ocala, Florida;
• Is intended to and does protect and promote the health, safety, and welfare of the citizens of the City of Ocala, Florida; and
• Is in the best interest of the City of Ocala, Florida and its citizens.
FISCAL IMPACT:
This proposed settlement will have result in payment of $110,000.00 to the City of Ocala.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
Approval of this proposed settlement has been reviewed, approved, and is recommended to City Council by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny