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A resolution authorizing the Metropolitan Department of Law to compromise and settle the Metropolitan Government of Nashville and Davidson County’s property damage claim against MasTec North America, Inc., in the amount of $135,000.00, with said amount to be paid to the Water Operating Fund 67331.
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WHEREAS, a 36-inch water main, owned and operated by the Metropolitan Government in the right-of-way at the intersection of 8th Avenue South and Division Street in Nashville, was damaged by directional drilling performed by MasTec North America, Inc. related to a construction project on February 23, 2021. The Metropolitan Government incurred costs for temporary remedial work and repairs to the stormwater line totaling $383,452.28. USIC Locating Services, LLC remitted payment to the Metropolitan Government in the amount of $191,726.14 to reimburse a portion of the cost incurred by the Metropolitan Government in repairing the water main.
WHEREAS, after investigation, the Metropolitan Department of Law believes that the settlement listed in Section 1 is fair and reasonable and in the best interest of the Metropolitan Government and recommends that any and all claims or causes of action brought or that could have been brought by the Metropolitan Government of Nashville and Davidson County against MasTec North America, Inc. related to the events detailed above, be compromised and settled for $135,000.00, and that this amount be paid to the Water Operating Fund 67331.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1: The Metropolitan Department of Law is authorized to compromise and settle the property damage claim of the Metropolitan Government for the sum of $135,000.00 with said amount to be paid to the Water Operating Fund 67331.
Section 2: This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
In 2020 and 2021, licensed contractor MasTec North America, Inc. (“MasTec”) was installing underground cable in downtown Nashville. MasTec had two methods to install these cable lines. On streets owned by the Metropolitan Government (“Metro”), MasTec would dig along the side of the road, lay cable, and cover the cable up. On streets owned by the State of Tennessee, it would bore under an intersection to not disturb pavement.
To ensure that the cable installation does not damage underground utilities, MasTec called TN811 to request that underground lines be marked. Metro’s contractor, USIC, responds to requests to mark underground lines.
On December 22, 2020, MasTec requested utility location along Division Street between the east side of 7th Avenue South and the west side of 8th Avenue South. The request was later renewed, and Kye Pryor, a USIC employee responded on February 11, 2021. Bud Reynolds, a MasTec supervisor said that work would not cross the intersection of 8th and Davidson. Mr. Pryor asked to be called if that changed, as a large water main ran under 8th Avenue South.
On February 23, 2021, a four-man MasTec crew was set to start drilling across 8th Avenue South. USIC did not mark the intersection. The MasTec crew looked for signs of unmarked underground utilities within 50 feet of either direction of the drilling path. Three large plates within that area covered a 36-inch water main. A smaller plate was also north of the intersection. Water markings from an apparent prior TN811 call indicated that a nearby hydrant was connected to the water main, though the water marks could be interpreted differently.
State law requires that excavators call TN811 before starting their work, if they observe clear evidence of an unmarked utility in the area of the proposed excavation. MasTec began drilling and struck a 36-inch water main.
A Metro employee investigated the incident and attributed fault to both USIC and MasTec. Repair of the water main cost $383,452.28. USIC paid half of the repair amount, which was $191,726.14.
Metro filed suit against MasTec and alleged negligence and negligence per se. The parties have participated in settlement negotiations and have agreed upon the settlement amount of $135,000, subject to approval from the Metropolitan Council. The Department of Law recommends settlement of Metro’s property damage claim for $135,000.
Fiscal Note: The total settlement amount is $135,000 to be paid to Metropolitan Water and Sewerage Services operating fund 67331.