S-877 - 05/27/1997 - AGREEMENT - Ordinances Supporting Documents GOOF Ogke
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FCOUN'ty.
VILLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS 60521 -2255
May 22, 1997 PHONE: 630 990-3000
FAX: 630 990-0876
MEMO TO: Village President& Board of Trustees
SUBJECT: Proposed AT&T Franchise Agreement
Pursuant to your direction, I have drafted the attached ordinance which grants a franchise for
use of the public ways to AT&T Corp. for telecommunications services. This ordinance
approves the Franchise Agreement which is attached as Exhibit A.
Please note that Section 2 of the ordinance states that because AT&T is a large company with a
good credit history, the Village finds that AT&T may self insure the insurance requirements set
forth in the Franchise Agreement. Like many large companies, AT&T self insures rather than
use a third party carrier.
The Franchise Agreement itself is the same as you reviewed at your last meeting with the
exception of Section 15, which I have redlined for your convenience. Certain provisions in the
new Section 15 track the renewal provisions in our existing franchise with Ameritech.
I understand that the Infrastructure Maintenance Fee Bill in Springfield will likely be approved; if
that is the case, the Infrastructure Maintenance Fee would replace the$0.38 per line fee as set
forth in Section 4, As I understand it, the legislation in Springfield would allow the other
provisions in this Franchise Agreement to remain in full force and effect during the term of the
agreement.
I understand you will consider this ordinance at your meeting on May 28, 1997.
Respectfully submitted,
Richard A. Martens
Village Attorney
RAM:sps
Attachment
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cc: Stephen Veitch, Village Manager
Dale Durfey, Jr., Village Engineer
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D. the Franchisee institutes dissolution or liquidation proceedings with respect to its business; or
E. an order is entered approving an involuntary petition to reorganize the business of the Franchisee
or to effect a plan or other arrangement with creditors or appointing a receiver or trustee for the
Franchisee of all or a part of its property, including all or any part of its telecommunications
operations.
SECTION 15. FRANCHISE RENEWAL.
A. Application.
The Franchisee may apply to renew the Franchise and this Agreement for additional terms of
f4"° '" ye following the expiration of the then-current term of the Franchise and this Agreement.
(249) da5's fler- less t4m;_ ea-Re hundf:ed fifty (450) days befer-e the expir-ali@R 4 the thell euFfent
+°fm. The provisions of this Agreement shall be renegotiated upon written notice by either
party to the Other at any time after July 1, 2000. The renewal application shall include any
information which may be required by toe Village ordinance applicable to Telecommunications
Services. Any new terms and conditions agreed to as a result of such negotiation shall be effective
upon the expiration of this Agreement in accordance with the terms contained herein unless the
parties agree otherwise.
B. Determination by Corporate Authorities.
The Corporate Authorities shall apply the following standards in their review of the Franchisee's
renewal application:
1. The financial and technical ability of the applicant,
2. The legal authority of the applicant to engage in the activities governed by the Franchise,
I The continuing capacity of the public ways to accommodate the applicant's existing
facilities,
4. The applicant's compliance with the requirements of the Agreement, and
5. Applicable federal and state telecommunications laws, rules and policies and local
telecommunications laws not inconsistent with such federal and state laws rules and policies
sef:ve the Go
FranchiseAgreement.doc 05/20/97 10:42 AM
Page 29
NOTICE
Stephen Veitch, Village Manager
Village of Oak Brook
1200 Oak Brook Road
Oak Brook, IL 60521
In accordance with Section 18 of the Non-Exclusive Use of Public Ways Franchise
Agreement,made and executed between the Village of Oak Brook, an Illinois municipal
corporation, ("Oak Brook"), and AT&T Corp., a New York corporation, ("AT&T"), dated
June 2, 1997, AT&T notifies you that:
1. On August 6, 1997, AT&T entered into a"Non-Exclusive Use of Public
Ways Franchise Agreement" (the "Agreement")with the Village of Rosemont
("Rosemont"),whereby AT&T has agreed to provide "Municipal Services" to Rosemont
under certain conditions (a copy of the provision is attached as Exhibit A).
2. The "Municipal Services" are conditioned upon the Agreement
terminating on July 1, 2000 and AT&T paying Rosemont certain"Unascertainable Costs
and Expenses" in the amount of$2,500 (copies of these provisions are attached as Exhibit
B).
This Notice is hereby given by AT&T on this 5th day of September, 1997.
AT&T Corp.
BY:
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o f',,y proposed construction on the Public Ways of the Village, as such cost is
�onably documented and determined by the Village Engineer, as reimbursement to the Village
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for the review and processing of any and all plans for any construction of Telecommunications
Facilities including, without limitation, the review and processing of the Preliminary Plans and
Specifications and the Final Plans and Specifications.
C. Franchise Fee.
1. Access Line Fee; Pre-Activation Fee.
a. Except as provided in(b) below, so long as Franchisee exercises and
enjoys the rights granted to it hereunder, it shall pay to the Village for each Access Line that
Franchisee maintains and operates to serve premises within the Village an Access Line Fee of
thirty-eight cents ($.38) per Access Line per month. Franchisee shall make said payments on a
quarterly basis, based on the quarters of a calendar year, due the last day of the calendar month
next following the end of the calendar quarter in which such fee accrued. However, such
payments shall not commence and shall not be due until: (1) such Access Lines are activated; and
(2) Franchisee is no longer required to pay the Pre-Activation Fee described in(b) below;
b. Franchisee shall pay to the Village a Pre-Activation Fee of$167 per
month, instead of and in lieu of thci-Access Line Fee. Franchisee shall make said payments on an
annual basis, with the first payment($2000)due on the date this Agreement is executed by both
parties. Thereafter,the payment is due annually on that date. However, such payments shall
cease and shall no longer be required under this Agreement when Franchisee establishes,through
the process described in Section 4(C)(2)below, that the amount of the Pre-Activation Fee is
equal to or less than the Access Line Fee(as defined in(a)above)would have been for any
month in the most recent calendar quarter in which the Pre-Activation Fee accrued
G:LLAWIC OUINNIR0SEMONT.AGR 8
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b. direct and indirect costs and expenses incurred by the Village in connection
with the modification, amendment, renewal or transfer of the Franchise.
E. Municipal Services.
In the event that any portion of the Facilities is placed in any Public Way so that
the Facilities are located adjacent to or within 500 feet of property on which a municipal
building is located and used for municipal purposes, the Franchisee shall provide, upon written
request by the Village, at no cost to the Village and as additional compensation to the Village for
the Franchise, the following services:
1. Splice Points. The Franchisee shall bring a single termination point into
any such building, which the Franchisee shall terminate with connectors within the building at or
near the building entrance point. The Village Superintendent of Public Works shall designate, in
timely fashion, the buildings to be so served and shall arrange for access for the Franchisee. The
maximum number of splice points to be provided to the Village by the Franchisee is ten(10).
The Village shall be responsible for building and maintaining its system from outside the splice
points to its buildings.
2. Purchase or Lease. In the event that the Village desires to purchase, lease
or use any service or any facilities or equipment provided by the Franchisee, the Franchisee shall,
subject to applicable law,offer the same to the Village upon contract terms and conditions
offered to any similarly situated or equivalent customer. The Franchisee's obligation to provide
service to the Village is dependent on availability of excess capacity. The Franchisee is not
obligated to terminate Service to any customer to accommodate the Village's request.
G:UAMONQUINNAOSEMONTAGR 10
.. 3. engage in, maintain, operate or carry on a business within the Village.
D. Franchise Term.
The term of the Franchise shall begin on the Effective Date and shall expire July
1, 2000. The term may be terminated earlier by mutual agreement or in the event of default.
E. Nonexclusivity of Grant.
Nothing contained in the Ordinance or in this Agreement shall prohibit the
Village from granting to any other Person or Governmental Authority a franchise similar to the
one granted herein to construct, install, maintain and operate telecommunications facilities in the
Village. The Village shall use its best efforts to notify the Franchisee upon the Village's receipt
of an application for a franchise similar to the one granted herein, but, in any event, the Village
shall provide notice to the Franchisee of any additional telecommunication franchises granted by
the Village and shall provide to the Franchisee the terms and conditions thereof.
SECTION 4. COSTS, EXPENSES,FRANCHISE FEE AND OTHER
PAYMENTS
A. Unascertainable Costs and Expenses.
The Franchisee shall pay to the Village on the Effective Date the sum of Two
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Thousand Five Hundred Dollars($2,500.00),which amount the parties agree is a fair estimate of
certain costs and expenses incurred by the Village in connection with the granting of the
Franchise, the precisa amount of which are too difficult to ascertain.
B. Engineering Review Fee.
The Franchisee shall pay to the Village, within five business days of presentation
of a written demand or demands therefore, all engineering fees incurred by the Village to cover
GALAMMOUINWAOSENONT.AGR 7