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S-877 - 05/27/1997 - AGREEMENT - Ordinances Supporting Documents GOOF Ogke vP 900 D of G p 4 `2 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 i i cc: Stephen Veitch, Village Manager Dale Durfey, Jr., Village Engineer i 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$2,500 (copies of these provisions are attached as Exhibit B). This Notice is hereby given by AT&T on this 5th day of September, 1997. AT&T Corp. BY: ITS: I �l'tl►'[ ' P V A- o f',,y proposed construction on the Public Ways of the Village, as such cost is �onably documented and determined by the Village Engineer, as reimbursement to the Village ti for the review and processing of any and all plans for any construction of Telecommunications Facilities including, without limitation, the review and processing of the Preliminary Plans and Specifications and the Final Plans and Specifications. C. Franchise Fee. 1. Access Line Fee; Pre-Activation Fee. a. Except as provided in(b) below, so long as Franchisee exercises and enjoys the rights granted to it hereunder, it shall pay to the Village for each Access Line that Franchisee maintains and operates to serve premises within the Village an Access Line Fee of thirty-eight cents ($.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 t 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 ,. 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