City suspends Live Oak Fiber permits after Airport Road utility blowout; will require permit-by-permit reopening

City staff told the council on April 21 they revoked all Live Oak Fiber permits after a significant construction blowout on Airport Road that shut eastbound lanes for more than 24 hours and caused costly service disruptions to Destin Water users and city operations.

City staff and Destin Water representatives described lengthy, costly restoration work after the incident. The city said it will not reissue a broad permit portfolio to Live Oak Fiber; instead the company will receive one permit at a time and will remain restricted until the affected utilities and the city are fully compensated and repairs are satisfactorily closed out.

City Manager Andy Jones and staff said Live Oak’s prior practice of moving from worksite to worksite — sometimes continuing work despite stop‑work orders — created an enforcement and repair burden. The city characterized the revocation as a temporary measure to force accountability and to ensure that future work proceeds under closer supervision. Staff said the city will consider bonding or other guarantees under the city’s Right‑of‑Way protection rules if those tools are appropriate before allowing further work.

Council members asked staff to confirm whether the city can require a bond under the city’s Right‑of‑Way protection authority; staff said they would investigate and use available remedies. Staff also said the city could consider no‑Friday‑bore restrictions and other scheduling limitations while Live Oak’s permits remain restricted.

The city said it will reissue permits only as outstanding issues are resolved and possibly on a parcel‑by‑parcel basis to improve oversight. No formal council motion was required to carry out the administrative revocation; staff reported the action to the council and said they will return with any required ordinance or contract steps if bonding or other financial assurance is necessary.