G-718 - 04/22/2003 - CABLE TV - Ordinancesa
ORDINANCE 2003 -CB -G- 718
AN ORDINANCE PROVIDING FOR THE FRANCHISING
AND REGULATION OF CABLE TELEVISION SYSTEMS
IN THE VILLAGE OF OAK BROOK, ILLINOIS
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE
OF OAK BROOK, DUPAGE AND COOK COUNTIES, ILLINOIS, AS FOLLOWS:
Section 1: Short title.
This chapter shall be known and may be cited as the "Oak Brook Cable Television
Franchise Ordinance," hereinafter or "Ordinance."
Section 2: Definitions.
For the purpose of this chapter the following terms, phrases, words and their derivations
shall have the meaning given herein:
Basic Service means all subscriber services provided by the Grantee in one (1) or more
service tiers, which includes the delivery of local broadcast stations, and public, educational and
government access channels. The Basic Service does not include optional program and satellite
service tiers, a la carte services (to the extent such services are not Basic Service under FCC
rules), per channel, per program, or auxiliary services for which a separate charge is made.
However, Grantee may include other satellite signals on the Basic Service.
Cable Mile means any extension of feeder or trunk measured from the nearest point of
distribution with adequate signal strength to allow for expansion.
Cable Service means the one -way transmission to subscribers of video programming or
other programming services and subscriber interaction, if any, which is required for the
selection, or use of such video programming or other programming services.
Cable System or System or Cable Television System means a system of antennas, cables,
wires, lines, towers, wave guides, or other conductors, converters, equipment or facilities,
designed and constructed for the purpose of producing, receiving, transmitting, amplifying and
distributing, audio, video, data and other forms of electronic, electrical or optical signals, which
includes cable television service and which is located in the Village. The definition shall not
include any such facility that serves or will serve only subscribers without using Village rights -
of -way.
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Channel means a signaling path provided by a cable communications system to transmit
signals of any type from a subscriber terminal to another point in the cable communications
system.
Control and /or Controlling Interest means actual working control or ownership of a
System in whatever manner exercised. A rebuttable presumption of the existence of control or a
controlling interest shall arise from the beneficial ownership, directly or indirectly, by any
Person or Entity (except underwriters during the period in which they are offering securities to
the public) of holding twenty percent (20 %) or more of a Cable System or the Franchise under
which the System is operated. A change in the control or controlling interest of an Entity, which
has control, or a controlling interest in a Grantee shall constitute a change in the control or
controlling interest of the System under the same criteria. Control or controlling interest as used
herein may be held simultaneously by more than one Person or Entity.
Converter means an electronic device, which converts signals to a frequency within the
television receiver of a subscriber, and by an appropriate channel selector also permits a
subscriber to view more than twelve (12) channels delivered by the system at designated
converter dial locations.
FCC means the Federal Cominunications Cominission and any legally appointed,
designated or elected agent or successor.
Franchise means the nonexclusive right granted through the authority of a Franchise
Agreement between the Village and the Grantee hereunder which allows the Grantee to own,
operate, construct, reconstruct, upgrade, dismantle, test, use, and maintain a Cable System within
the corporate boundaries of the Village, and is not intended to include any license or permit
required for the privilege of transacting and carrying on a business within the Village as may be
required by other laws or ordinances of the Village.
Franchise Agreement means that certain written agreement entered into between a
Grantee and the Village /Franchising Authority wherein the Franchise and the terms thereof are
conferred upon the Grantee.
Franchise Fee means the fee that a company is required to pay to the Village pursuant to
Section 27 of this Ordinance. This fee includes any tax, fee or assessment of any kind imposed
by the Village or other governmental entity on a cable operator or cable subscriber, or both,
solely because of their status as such; the term "Franchise Fee," does not include:
(A) any tax, fee or assessment of general applicability (including any such tax, fee, or
assessment imposed on both utilities and cable operators, or their services but not including a
tax, fee or assessment which is unduly discriminatory against cable operators or cable
subscribers);
(B) in the case of any franchise in effect on the date of enactment of the 1984 Cable Act,
payments which are required by the franchise to be made by the Grantee during the term of such
franchise for, or in support of the use of, public, educational or governmental access facilities;
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(C) in the case of any franchise granted after such date of enactment, capital costs which
are required by the franchise to be incurred by the Grantee for public, educational, or
governmental access facilities;
(D) requirements or changes incidental to the awarding or enforcing of the franchise,
including payments for bonds, security funds, letters of credit, insurance, indemnification,
penalties, or liquidated damages; or
(E) any fee imposed under title 17, United States Code.
Grantee means a Person or Entity to whom or which a Franchise under this chapter is
granted by the Village, along with the lawful successors or assigns of such Person or Entity
Gross Revenues means all revenue collected by the Grantee from the operation of the
Cable System to provide cable service within the Village including, but not limited to: periodic
fees charged Subscribers for any basic, optional, premium, per - channel or per - program service;
Franchise Fees; installation and reconnection fees; leased channel fees; converter rentals and/or
sales; program guide revenues; late or administrative fees; upgrade, downgrade or other change -
in- service fees; advertising revenues; revenues from home shopping channels; provided,
however, that this shall not include any taxes on services furnished by the Grantee herein
imposed directly upon any subscriber or user by the state, local or other governmental unit and
collected by the Grantee on behalf of the governmental unit, any uncovered bad debt and any
PEG capital support recovered from subscribers.
The term Gross Revenues is intended to include revenues collected from high -speed
cable modem or cable Internet service should the current classification of such services as an
information service be re- classified by the FCC as a cable service.
Initial Franchise is the first Franchise granted to an entity but it does not include the
renewal of that Franchise.
Initial Grantee means the Person or Entity and his/her /its lawful successor who was
granted a cable television Franchise by the Village of Oak Brook in 1982 and proceeded to
construct the first cable television system in the Village; "Initial Grantee" also includes the
Person or Entity who may obtain a renewal of the above referenced cable television Franchise.
Installation means the connection of the system from feeder cable to subscribers'
terminals.
May is permissive.
Normal Business Hours, as applied to the Grantee, means those hours during which
similar businesses in the Village are open to serve customers. In all cases, Normal Business
Flours must include some evening hours at least one night per week, and/or some weekend hours.
Normal Operating Conditions means those service conditions that are within the control
of the Grantee. Those conditions that are not within the control of the Grantee include, but are
not limited to. natural disasters, civil disturbances, power outages, telephone network outages,
and severe or unusual weather conditions. Those conditions, which are ordinarily within the
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control of the Grantee, include, but are not limited to, special promotions, pay - per -view events,
rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the
Cable System.
Person or Entity means any individual human being or any association, firm, corporation,
partnership, proprietorship or any other legally recognized organization of individual human
beings, whether for - profit or not -for- profit.
Renewed Franchise means any Franchise renewed pursuant to the franchise renewal
procedures in 47 U.S.C. § 546.
Shall is mandatory.
Service Interruption means the loss of picture or sound on one or more cable channels.
Schools means all public and private elementary and secondary schools which have
been granted a certificate of recognition by the Illinois State Board of Education, pursuant to
Illinois State Statutes, and which are located within the franchise area.
Street means the surface of and all nghts -of -way and the space above and below any
public street, road, highway, freeway, lane, path, public way or place, sidewalk, alley, court,
boulevard, parkway, or drive now or hereafter held by the Village for the purpose of public travel
and shall include other easements or rights -of -way as shall be now held or hereafter held by the
Village which shall, within their proper use and meaning entitle the Grantee to the use thereof for
the purposes of installing poles, wires, cable, conductors, ducts, conduits, vaults, manholes,
amplifiers, appliances, attachments, pedestals, and other property as may be ordinarily necessary
and pertinent to a cable television system.
Subscriber means any person, firm, corporation, entity or association lawfully receiving
any service provided by a Grantee pursuant to this Ordinance.
User means a party utilizing a cable television system chamlel for purposes of production
or transmission of material to subscribers, as contrasted with receipt thereof in a subscriber
capacity.
Village means the Village of Oak Brook an Illinois municipal corporation
Section 3: Rights and privileges of Grantee.
Any Franchise granted by the Village pursuant to Illinois Statutes (65 ILCS 5/11- 42 -11),
shall grant to the Grantee, subject to the terms and conditions of the Franchise Agreement
between the Village and the Grantee, the right and privilege to erect, construct, operate and
maintain ml upon, along, across, above, over and under the streets now in existence and as may
be created or established during its terms any poles, wires, cable, underground conduits,
manholes, and other television conductors and fixtures necessary for the maintenance and
operation of a Cable System.
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Section 4: Agreement and incorporation of application by reference.
(a) Upon adoption of any Franchise Agreement and execution thereof by the Grantee, the
Grantee agrees to be bound by all the terms and conditions contained in this Ordinance, as of the
effective date of the Franchise Agreement.
(b) Any Grantee also agrees to provide all services specifically set forth in its application,
if there is one, and to provide cable television service within the confines of the Village; and by
its acceptance of the Franchise, the Grantee specifically grants and agrees that its application is
thereby incorporated by reference and made a part of the Franchise, except that the Grantee may
from time to time change its services in response to market and financial decisions
Section 5: Franchise territory.
Any Franchise is for the current territorial limits of the Village and for any area
henceforth added thereto during the term of the Franchise.
Section 6. Duration and acceptance of non - exclusive Franchise.
(a) Any Franchise and the rights, privileges and authority hereby authorized shall take
effect and be in force from and after the signing of a Franchise Agreement by the Village, as
provided by law, and shall continue in force and effect for a term of no longer than fifteen (15)
years, provided that the Grantee shall file acceptance of the Franchise and its promise to comply
with and abide by all its provisions, terms and conditions. Such Franchise shall be non - exclusive
and revocable only under the terms herein or in the Franchise Agreement with Grantee
(b) In the event the Village enters into an additional Franchise Agreement to use and
occupy the public right -of -way for the purpose of operating a cable system, said additional
Franchise Agreement should only be granted if the terms, conditions, and requirements relating
to payments, facilities, equipment and services to be provided by the subsequent cable operator
satisfy the applicable requirements set forth in Section 11 -42 -11 of the Illinois Municipal Code
(65 ILCS 5/11- 42 -11), as now or hereafter amended. Notwithstanding the applicability or repeal
of Section 11- 42 -11, to maintain a competitively neutral and nondiscnminatory environment as
required by the Telecommunications Act of 1996, any additional Grantee shall provide terms,
conditions, and requirements relating to the payments, facilities, equipment and services and
regulatory requirements for use of the public right -of -way that are substantially equivalent to the
payments, facilities, equipment and services and regulatory requirements imposed on the Grantee
previously granted a Franchise pursuant to this Ordinance.
Section 7: Franchise renewal.
Franchise renewal shall be prescribed by applicable law as set forth in 47 U.S C. X546, unless
otherwise amended or pre - empted. Village and Company by mutual consent may enter into
informal renewal negotiations at any time during the term of the Franchise.
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(a) Commencement of proceedings; public notice and participation
(1) A franchising authority may, on its own initiative, during the six -month period
which begins with the thirty -sixth (36th) month before the Franchise expiration,
commence a proceeding which affords the public in the franchise area appropriate
notice and participation for the purpose of (A) identifying the future cable - related
community needs and interests and (B) reviewing the performance of the cable
operator under the Franchise during the then current franchise term. If the cable
operator submits, during such six -month period, a written renewal notice
requesting the commencement of such proceeding, the franchising authority shall
commence such a proceeding not later than six (6) months after the date such
notice is submitted.
(2) The cable operator may not invoke the renewal procedures set forth in subsections (b)
through (g) of the section unless -
(A) such a proceeding is requested by the cable operator by timely submission of
such notice; or
(B) such a proceeding is commenced by the franchising authority on its own
initiative.
(b) Submission of renewal proposals; contents; time
(1) Upon completion of the proceeding under subsection (a) of this section, a
cable operator may, on its own initiative or at the request of the
franchising authority, submit a proposal for renewal.
(2) Subject to section 544 of this title, any such proposal shall contain such
material as the franchising authority may require, including proposals for
an upgrade of the cable system.
(3) The franchising authority may establish a date by which such proposals
shall be submitted.
(c) Notice of proposal; renewal; preliminary assessment of nonrenewal;
administrative review; issues, notice and opportunity for hearing; transcript;
written decision
(1) Upon submittal by the cable operator of a proposal to the franchising authority
for the renewal of a Franchise pursuant to subsection (b) of this section, the
franchising authority shall provide prompt, public notice of such proposal and,
during the 4 -month period which begins on the date of submission of the cable
operator's proposal pursuant to subsection (b) of this section, renew the Franchise
or, issue a preliminary assessment that the Franchise should not be renewed and,
at the request of the operator or on its own initiative, commence an administrative
proceeding, after providing prompt, public notice of such proceeding, in
accordance with paragraph (2) to consider whether -
(A) the cable operator has substantially complied with material terms
of the existing Franchise and with applicable law;
(B) the quality of the operator's service, including signal quality,
response to consumer complaints and billing practices, but without
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regard to the mix or quality of cable services or other services
provided over the system, has been reasonable in the light of
community needs;
(C) the operator has the financial, legal and technical ability to provide
the services, facilities and equipment as set forth in the operator's
proposal; and
(D) the operator's proposal is reasonable to meet the future cable -
related community needs and interests, taking into account the
costs of meeting such needs and interests.
(2) In any proceeding under paragraph (1), the cable operator shall be afforded
adequate notice and the cable operator and the franchising authority, or its
designee, shall be afforded fair opportunity for full participation, including the
right to introduce evidence (including evidence related to issues raised in the
proceedings under paragraph subsection (a) of this section), to require the
production of evidence and to question witnesses. A transcript shall be made of
any such proceeding.
(3) At the completion of a proceeding under this subsection, the franchising
authority shall issue a written decision granting or denying the proposal for
renewal based upon the record of such proceeding, and transmit a copy of such
decision to the cable operator. Such decision shall state the reasons therefore.
(d) Basis for denial
Any denial of a proposal for renewal that has been submitted in compliance with
subsection (b) of this section shall be based on one or more adverse findings made
with respect to the factors described in subparagraphs (A) through (D) of
subsection (c)(1) of this section, pursuant to the record of the proceeding under
subsection (c) of this section A franchising authority may not base a denial of
renewal on a failure to substantially comply with the material terms of the
Franchise under subsection (c)(1)(A) of this section or on events considered under
subsection (c)(1)(B) of this section in any case in which a violation of the
Franchise or the events considered under subsection (c)(1)(B) of this section
occur after the effective date of this subchapter unless the franchising authority
has provided the operator with notice and the opportunity to cure, or in any case
in which it is documented that the franchising authority has waived its right to
object, or the cable operator gives written notice of a failure or inability to cure
and the franchising authority fails to object within a reasonable time after the
receipt of such notice.
(e) Judicial review; grounds for relief
(1) Any cable operator whose proposal for renewal has been denied by a final
decision of a franchising authority made pursuant to this section, or has
been adversely affected by a failure of the franchising authority to act in
accordance with the procedural requirements of this section, may appeal
such final decision or failure pursuant to the provisions of section 555 of
this title.
(2) The court shall grant appropriate relief if the court finds that-
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(A) any action of the franchising authority, other than harmless error, is
not in compliance with the procedural requirements of this section; or
(B) in the event of a final decision of the franchising authority denying the
renewal proposal, the operator has demonstrated that the adverse finding
of the franchising authority with respect to each of the factors described in
subparagraph (A) through (D) of subsection (c)(1) of this section on which
the denial is based is not supported by a preponderance of the evidence,
based on the record of the proceeding conducted under subsection(c) of
this section.
(f) Finality of administrative decision: Any decision of a franchising authority on a
proposal for renewal shall not be considered final unless all administrative review
by the Sate has occurred or the opportunity therefore has lapsed.
(g) "Franchise expiration" defined: For purposes of this section, the term "Franchise
expiration" means the date of the expiration of the term of the Franchise, as
provided under the Franchise, as it was in effect on October 30, 1984.
(h) Alternative renewal procedures: Notwithstanding the provisions of subsections (a)
through (g) of this section, a cable operator may submit a proposal for the renewal
of a Franchise pursuant to this subsection at any time, and a franchising authority
may, after affording the public adequate notice and opportunity for comment,
grant or deny such proposal at any time (Including after proceedings pursuant to
this section have commenced). The provision of subsections (a) through (g) of
this section shall not apply to a decision to grant or deny a proposal under this
subsection. The denial of a renewal pursuant to this subsection shall not affect
action on a renewal proposal that is submitted in accordance with subsections (a)
through (g) of this section.
(i) Effect of renewal procedures upon action to revoke Franchise for cause:
Notwithstanding the provisions of subsections (a) through (h) of this section, any
lawful action to revoke a cable operator's Franchise for cause shall not be negated
by the subsequent initiation of renewal proceedings by the cable operator under
this section.
Section 8: Police powers.
(a) In accepting a Franchise, the Grantee acknowledges that its rights there under are
subject to the police power of the Village to adopt and enforce ordinances necessary to the safety
and welfare of the public; and it agrees to comply with all applicable laws and ordinances
enacted by the Village pursuant to such power.
Section 9: Cable Television Franchise required.
No cable television system shall be allowed to operate or to occupy or use the streets (i.e.,
rights -of -way) for system installation and maintenance purposes without a Franchise.
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Section 10: Initial Franchise Costs.
Costs to be borne by the Grantee shall include any requirements or charges incidental to
the awarding or enforcing of the Initial Franchise, but shall not be limited to: all costs of
publications of notices prior to any public meeting provided for pursuant to this chapter, and any
costs not covered by application fees, incurred by the Village in its study, preparation of proposal
documents, evaluation of all applications, and examinations of the applicant's qualifications,
including reasonable fees for attorneys and cable television consultants.
Section 11: Notices.
All notices from the Grantee to the Village pursuant to any Franchise shall be to the
Village Manager's Office: Village of Oak Brook, Attn• Village Manager, 1200 Oak Brook
Road, Oak Brook, IL 60523 The Grantee shall maintain with the Village, throughout the term
of the Franchise, an address for service of notices by mail. The Grantee shall maintain a central
office to address any issues relating to operating under this cable television ordinance
Section 12: Security Fund
(a) Within fifteen (15) days after the award of the Franchise, the Grantee shall deposit
with the Village either an irrevocable letter of credit, performance bond or other financial
instrument from a financial institution acceptable to the Village or a security deposit in the
amount of twenty' -five thousand dollars ($25,000), with the form to be established by the Village.
The form and content of such letter of credit, performance bond or other financial instrument
shall be approved by the Village Attorney. The letter of credit, performance bond or other
financial instrument or the cash security deposit shall be used to ensure the faithful performance
of the Grantee of all provisions of this ordinance, and to ensure compliance with all orders,
permits and directions of any agency, commission, board, department, division, or office of the
Village having jurisdiction over its acts or defaults under this ordinance, and to ensure the
payment by the Grantee of any claims, liens, and taxes due the Village which arise by reason of
the construction, operation or maintenance of the system.
(b) The letter of credit shall be continuously maintained at the amount established above
or as otherwise specified in a Franchise agreement. The Grantee shall replenish the security fund
within fourteen (14) days after written notice from the Village that monies have been withdrawn
from the fund, or if there is otherwise a deficiency in the amount of the fund.
(c) If the Grantee fails to pay to the Village any compensation within the time fixed
herein; or fails after thirty (30) days notice to pay to the Village any taxes due and unpaid which
the Village is permitted by law to impose and collect directly; or fails to repay the Village within
thirty (30) days, any damages, costs or expenses which the Village is compelled to pay by reason
of any act or default of the Grantee in connection with the Franchise, or fails, after thirty (30)
days notice of such failure by the Village to comply with any provision of the Franchise which
the Village reasonably determines can be remedied by drawing down on the letter of credit , the
Village may immediately draw down on the letter of credit or disburse from the cash security
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deposit fund the amount or amounts therefore, with interest and any penalties. Upon such draw
or disbursement, the Village shall notify the Grantee of the amount and date thereof.
(d) The rights reserved to the Village with respect to the letter of credit are in addition to
all other rights of the Village, whether reserved by the Franchise or authorized by law, and no
action, proceeding or exercise of a right with respect to such letter of credit shall affect any other
right the Village may have.
(e) The letter of credit shall contain the following endorsement: "It is hereby understood
and agreed that this letter of credit may not be canceled by the issuer nor the intention not to
renew be stated by the issuer until thirty (30) days after receipt by the Village, by registered mail,
of a written notice of such intention to cancel or not to renew."
(f) Receipt of the thirty -day notice provided in (e), shall be construed as a default by
Grantee permitting the Village to draw the entire amount of the letter of credit, unless Grantee
cures by providing a replacement letter of credit within seven (7) days of the Village's receipt of
said thirty (30) days notice.
(g) The Village at any time during the term of this Ordinance may waive in writing
Grantee's requirement to maintain a letter of credit or may lessen the amount.
Section 13: Initial Franchise Construction bond.
(a) Within thirty (30) days after the award of the Franchise (excluding renewed-
Franchises), the Grantee shall file with the Village a performance bond in the amount of not less
than fifty percent (50 %) of the costs to install the system contained in the application in favor of
the Village. This bond shall be maintained throughout the construction period and shall be
released only upon the approval of the Village, unless specified in the Franchise Agreement.
(b) If the Grantee fails to comply with any law, ordinance or resolution governing the
Franchise, or fails to fulfill and perform each term and condition of the Franchise as it relates to
the conditions relative to the construction and maintenance of the system, including the
Franchise Agreement that is incorporated herein by reference, there shall be recoverable jointly
and severally, from the principal and surety of the bond, any damages or loss suffered by the
Village as a result, including the full amount of any compensation, indemnification, or cost of
removal or abandonment of any property of the Grantee, plus a reasonable allowance for
attorney's fees, including the Village's legal staff, and costs, up to the full amount of the bond.
This section shall be an additional remedy for any and all violations outlined in Section 13.
(c) The Village shall, upon completion of construction of the service area, waive the
requirement of the Grantee to maintain the bond as provided in (a) above. However, the Village
may require a construction bond to be posted by the Grantee for any Eonstruction subsequent to
the completion of the initial service areas where the estimated cost of the project exceeds forty
thousand dollars ($40,000)
(d) The bond shall contain the following endorsement. "It is hereby understood and
agreed that this bond may not be canceled by the surety nor the intention not to renew be stated
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by the surety until thirty (30) days after receipt by the Village, by registered mail, a written
notice of such intent to cancel and not to renew."
(e) Upon receipt of a thirty -day notice, this shall be construed as default granting the
Village the right to demand payment on the bond except to the extent another bond is provided.
(f) The Village, at any time during the term of this Ordinance, may waive in writing
Grantee's requirement to maintain a performance bond. The waiver of the requirement can be
initiated by the Village or the Grantee.
Section 14. Liability and insurance.
(a) The Grantee shall maintain and by its acceptance of the Franchise specifically agrees
that it will maintain throughout the term of the Franchise, liability insurance insuring the Village
and the Grantee in the minimum amount of:
(1) Two million dollars ($2,000,000.00) for property damage to any one person;
(2) Five million dollars ($5,000,000.00) for property damage from any one
accident;
(3) Two million dollars ($2,000,000.00) for personal injury to any one person;
and
(4) Five million dollars ($5,000,000.00) for personal injury from any one
accident.
(b) The certificate of insurance obtained by the Grantee in compliance with this section
may be reviewed by the Village Attorney, and shall name the Village as an additional insured
party, and shall be filed and maintained with the Village during the term of the Franchise.
(c) Neither the provisions of this section nor any damages recovered by the Village there
under shall be construed to limit the liability of the Grantee under any Franchise issued
hereunder or for damages.
(d) All insurance policies maintained pursuant to the Franchise shall contain the
following endorsement "It is hereby understood and agreed that this insurance policy may not be
canceled by the surety nor the intention not to renew be stated by the surety until thirty (30) days
after receipt by the Village, by registered mail, of a written notice of such intention to cancel or
not to renew. This insurance shall be primary to any insurance, or self - insurance obtained by the
Village on its own behalf, notwithstanding anything to the contrary herein."
Section 15: Indemnification.
(a) Disclaimer of Liability. The Village shall not at any time be liable for injury or
damage occurring to any Person or property from any cause whatsoever arising out of the
construction, maintenance, repair, use, operation, condition or dismantling of the Grantee's
Cable Television System or due to the act or omission of any Person or entity other than the
Village or those Persons or entities for which the Village is legally liable as a matter of law.
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(b) Indemnification. The Grantee shall, at its sole cost and expense, indemnify and hold
harmless the Village, all associated, affiliated, allied and subsidiary entities of the Village now
existing or hereinafter created, and their respective officers, boards, commissions, employees,
agents, attorneys and contractors, (hereinafter referred to as "Indemnitees ") from and against the
following-
(1) Any and all liabilities, obligations, damages, penalties, claims, liens, costs,
charges, losses and expenses (including, without limitation, reasonable fees and expenses of
attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or
asserted against the Indemnities by reason of any act or omission of the Grantee, its personnel,
employees, agents, contractors or subcontractors, resulting in personal injury, bodily injury,
sickness, disease or death to any Person or damage to, loss of or destruction of tangible or
intangible property, libel, slander, invasion of privacy and unauthorized use of any trademark,
trade name, copyright, patent, service mark or any other right of any Person, firm or corporation,
which may arise out of or be in any way connected with the construction, installation, operation,
maintenance, use or condition of the Cable Television System caused by Grantee, its
subcontractors or agents or the Grantee's failure to comply with any federal, state or local
statute, ordinance or regulation except that nothing herein shall be construed to indemnify the
above noted parties from negligent acts on their part.
(2) Any and all liabilities, obligations, damages, penalties, claims, liens, costs,
charges, losses and expenses (including, without limitation, reasonable fees and expenses of
attorneys, expert witnesses and consultants), which are imposed upon, incurred by or asserted
against the Indemnities by reason of any claim or lien arising out of work, labor, materials or
supplies provided or supplied by the Grantee, its contractors or subcontractors, for the
installation, construction, operation or maintenance of the Cable Television System.
(3) Any and all liabilities, obligations, damages, penalties, claims, liens, costs,
charges, losses and expenses (including, without limitation, reasonable fees and expenses of
attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or
asserted against the Indemnities by reason of any financing or securities offering by Grantee or
its Affiliates for violations of any laws, statutes or regulations of the State of Illinois or of the
United States, including those of the Federal Securities and Exchange Commission, whether by
the Grantee or otherwise, excluding there from, however, claims which are solely based upon
and arise solely out of information supplied by the Village to the Grantee for consideration and
in writing, and included in the offering materials with the express written approval of the Village
not more than thirty (30) days prior to the offering.
(c) Assumption of Risk. The Grantee undertakes and assumes for its officers, agents,
contractors and subcontractors and employees all risk of dangerous conditions, if any, on or
about any village -owned or controlled property, including Public Rights -of -Way, and the
Grantee hereby agrees to indemnify, hold Harmless and defend the Indemnities against and from
any claim asserted or liability imposed upon the Indemnities for personal injury or property
damage to any Person arising out of the installation, operation, maintenance or condition of the
Cable Television System or the Grantee's failure to comply with any federal, state or local
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statute, ordinance or regulation except that nothing herein shall be construed to indemnify the
above noted parties from negligent acts on their part or the Village's part.
(d) Defense of Indemmties. In the event any action, claim, demand or proceeding shall
be brought against the Indemnities by reason of any matter for which the indemnities are
indemnified hereunder, the Grantee shall, upon notice from any of the Indemnities, at the
Grantee's sole cost and expense, resist, adjust, defend and pay the same.
(e) Notice, Cooperation and Expenses. The Village shall give the Grantee prompt notice
of the making of any written claim or the commencement of any action, suit or other proceeding
covered by the provisions of this section Nothing herein shall be deemed to prevent the Village
from cooperating with the Grantee and participating in the defense of any litigation by the
Village's own counsel.
(f) Nonwaiver of Statutory Limits. Nothing in this agreement is intended to express or
imply a waiver by the village of statutory provisions, privileges or immunities of any kind or
nature as set forth in Illinois Statutes or law, including the limits of liability of the Village as
exists presently or may be increased from time to time by the Legislature.
Section 16: Rights of individuals
(a) The Grantee shall not deny service, deny access, or otherwise discriminate against
subscribers, channel users, or general citizens on the basis of race, color, religion,
national origin, income, sex, marital status, sexual preference or age. The Grantee
shall comply at all times with all other applicable federal, state and local laws and
regulations and all executive and administrative orders relating to nondiscrimination
which are hereby incorporated and made part of this chapter by reference.
(b) The Grantee shall strictly adhere to the equal employment opportunity requirements
of the Federal Communications Commission and of state and local governments, as
amended from time to time.
(c) The Grantee shall, at all times, comply with the privacy requirements of state and
federal law.
(d) Grantee is required to make all services available to all residential dwellings
throughout the service area or as otherwise specified in a Franchise Agreement.
(e) Non - residential Service: Grantee will make every effort to offer service to the
commercial establishments within the Franchise Area cable service, provided that the
installation � is economically reasonable The commercial establishment shall be `
responsible for the total cost of installation as determined by the Grantee.
Section 17: System construction.
(a) Initial Franchise construction timetable..
(1) Within two (2) years from the date of the award of the Initial Franchise, the
Grantee must make cable television service available to every dwelling unit within the initial
service area.
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a. The Grantee must make cable television service available to at least
twenty (20) percent of the dwelling units within the initial service area within twelve (12)
months from the date of the award of the Franchise.
b. The Grantee must make cable television service available to at least
fifty (50) percent of the occupied dwelling units within the initial service area within eighteen
(18) months from the date of the award of the Franchise
(2) The Grantee, in its application, may propose a timetable of construction which
will make cable television service available in the initial service area sooner than the above
minimum requirements, in which case the said schedule will be made part of the Franchise
Agreement, and will be binding upon the Grantee.
(3) In special circumstances the Village may waive one hundred percent (100 %)
completion within the two (2) year time frame, provided substantial completion is accomplished
within the allotted time frame, substantial completion to be not less than ninety -five (95) percent.
Justification for less than one hundred percent (100 %) must be submitted subject to the
satisfaction of the Village.
(4) The Grantee shall install conduit, pedestals and vaults underground as required
by Section 20 (b)(8) below.
(b) Line extensions:
(1) In areas of the franchise territory not included in the initial service areas, the
Grantee shall be required to extend its system pursuant to the following requirements:
a. No customer shall be refused service arbitrarily. Grantee is hereby
authorized to extend the Cable System as necessary within the Village. To expedite the process
of extending the Cable System into a new sub - division, the Village will forward to the Grantee
an approved engineering plan of each project. Subject to the density requirements in (b) below,
the Grantee shall commence the design and construction process upon receipt of the final
engineering plan. Upon notification from the Village that the first home in the project has been
approved for a building permit, the Grantee shall have a maximum of three (3) months to
complete the construction/activation process within the applicable project phase.
b. The Grantee shall extend and make cable television service available to
every dwelling unit in all unserved, developing areas having at least twenty (20) occupied
dwelling units per cable mile, as measured from the existing system, and shall extend its system
simultaneously with the installation of utility lines to the extent practical.
c. The Grantee shall Pxtend and make cable television service available to
any isolated resident outside the initial service area requesting connection at the standard
connection charge, if the connection to the isolated resident would require no more than a
standard one hundred and twenty five (125) foot drop line.
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(2) Early extension. In areas not meeting the requirements for mandatory
extension of service, the Grantee shall provide, upon the request of a potential subscriber
desiring service, an estimate of the Grantee's costs required to extend service to the subscriber.
The Grantee shall then extend service upon request of the potential subscriber. The Grantee may
require advance payment or assurance of payment satisfactory to the Grantee within a period of
36 months of payment In the event the area subsequently reaches the density required for
mandatory extension, such payments which exceed the standard installation costs for said
installation shall be refunded to the subscriber
(3) New development under grounding. In cases of new construction or property
development where utilities are to be placed underground, the developer or property owner shall
give the Grantee reasonable notice of such construction or development, and of the particular
date on which open trenching will be available for the Grantee's installation of conduit, pedestals
and/or vaults, and laterals to be provided at the Grantee's expense. The Grantee shall also
provide specifications as needed for tienching. Costs of trenching and easements required to
bring service to the development shall be borne by the developer or property owner; except that
if the Grantee fails to install its conduit, pedestals and/or vaults, and laterals within ten (10)
working days of the date the trenches are available, as designated in the notice given by the
developer or property owner to the Grantee, then if the trenches are closed after the ten (10) day
period, then the cost of new trenching is to be borne by the Grantee.
(c) Special agreements. Nothing herein shall be construed to prevent the Grantee from
serving geographical areas not covered under this section upon agreement with developers,
property owner's residents, or businesses.
(d) The Grantee, in its application, may propose a line extension policy that will result in
serving more residents of the Village than as required above, in which case the Grantee's policy
will be incorporated into the Franchise Agreement and will be binding on the Grantee.
Section 18: System Design:
A. Subscriber Network
1. The Grantee shall construct, operate and maintain its cable system in accordance with its
current engineering practices.
2. The Grantee shall provide backup power for the cable system including but not limited to
backup power supplies capable of providii-,,g eight (8) hours of power to the headend and
two (2) hours of power to the cable system plant in the event of an electrical outage, with
additional backup capacity provided by po Lable generators.
3. The cable television system plant shall have sufficient bandwidth to provide the full array
of cable services including to be activated for "two -way" communications. The Grantee
shall provide a minimum of 100 downstream cable channels, regardless of their method
of delivery.
B. Emergency Override
1. The Grantee shall provide and maintain an emergency override system capable of
providing an audio signal over all of the analog channels on the cable system Control
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over such override shall be assigned to the Village and the audio signal shall be operable
by the Village from remote locations. The Village agrees to indemnify and hold the
Company harmless from any damages or penalties ansing out of the negligence of the
Village, its employees or agents in using such service.
C. Periodic Testing and Compliance with FCC Standards:
1 The Grantee shall construct and operate the Cable System to comply with the FCC
technical standards contained in Part 76, Subpart K of the Commissions rules and
regulations, as updated and amended from time to time (47 U.S.C. §76, Subpart K).
2. The Grantee shall perform all tests necessary to determine compliance with the FCC
technical standards. Tests shall include, at minimum, proof -of- performance tests required
by FCC Rule Section 76.601 (47 U.S.C. §76.601) and such additional or repeat tests
involving specified Subscriber tenninals as may be required to determine compliance
with the FCC technical standards.
3. Written records of test results shall be maintained at a Grantee's local office and made
available for inspection by the Village or other designated agent of the Village, upon
request of the Village.
4. The Village or other designated agent of the Village may monitor compliance with the
FCC technical standards referenced herein in accordance with applicable law.
5. Not later than ninety (90) days after any new or substantially upgraded or rebuilt portion
of the Cable System is made available for service to Subscribers, technical performance
tests shall be conducted by the Grantee to demonstrate full compliance with the FCC
Technical Standards cited hereinabove. Such tests shall be performed by or under the
supervision of a qualified engineer or an engineer with proper training and experience.
Upon request, a copy of the report shall be submitted to the Franchising Authority
describing test results, instrumentation, calibration, and test procedures. Where said
report has been requested, the Grantee shall send such completed report to the
Franchising Authority within seven (7) calendar days of the receipt of said request.
6. Where there exists recurring evidence, which in the judgment of the Village, casts doubt
upon the reliability or quality of Cable Service, the Village shall have the right and
authority to require the Grantee to test, analyze, and report on the performance of the
Cable System. The Grantee shall fully cooperate with the Village in performing such
testing and shall prepare results, and a report, if requested, within thirty (30) days after
notice. Such report shall include the following information
(1) The nature of the complaint or problem that precipitated the special tests;
(2) The system component(s) tested;
(3) The equipment used and procedures employed in testing;
(4) The method, if any, in which such complaint or problem is resolved;
(5) Any other information pertinent to the tests and analysis, which may be required.
7. The Village may require that tests be observed by an independent professional engineer
or equivalent of the Village's choice. The engineer shall be given records of special tests
and may forward to the Village such records with a report interpreting the results of the
tests.
D. Permitting and Inspection
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1. The Grantee shall comply with all applicable federal, state and local rules, regulations
and construction codes governing the construction, operation, maintenance and
installation of the cable system, as such rules, regulations and codes are in force as of the
time of the installation or other work.
2. All construction, installation, restoration and maintenance work shall be subject to
pertinent Ordinances, regulations or policies of the Village applicable to all occupants of
its rights -of -way.
3. All work done by or on behalf of the Grantee shall be done in a manner that does not
unreasonably interfere with the rights and convenience of property owners who adjoin the
Public Ways of the Village. If property is disturbed or damaged, the Grantee shall restore
the property to its former condition, normal wear and tear accepted.
4. All restoration shall be performed in accordance with the permit requirements The
Grantee shall remain responsible for the acts or omissions of its contractors or sub-
contractors.
5. The Grantee shall not construct any facilities within the Village until it has secured all
necessary approvals and permits from the Village, and any other governmental body
having jurisdiction. In any permit issued by the Village, the Village may impose any
condition, restriction, or regulation, consistent with the Village codes and regulations, for
the purpose of protecting any structures or facilities in the Public Ways of the Village, for
the proper restoration of the Public Ways of the Village, for the continuity of pedestrian
and vehicular traffic, and for protection of the public.
6. All facilities constructed or installed within the Village shall be located and installed so
as not to unreasonably interfere with the proper and usual use of the Public Way. All
facilities shall be installed in a manner consistent with existing utility installations within
the Public Way.
7. The Grantee shall make reasonable effort to avoid mayor disturbances of street
pavements, sidewalks, alleys, public and privat;, landscaping, and all other publicly or
privately held properties or structures during all phases of construction and maintenance
of the cable system within the Public Ways of the Village.
8. All cable passing under any roadway or public way shall be installed in conduit, which
has been augured, not open cut, under the roadways or public ways, unless the permit
issued for the work contains an express waiver of this requirement and approval for an
alternative installation.
9. The Village shall have the right to inspect all construction work performed within the
Village public right -of -ways. Any inspections of construction work made by the Village
shall be at the expense of the Village.
10 The Grantee shall be a member of J.U.L.I.E. (the Joint Utility Location Information for
Underground Excavator), and shall be responsible for contacting J.U.L.I.E. or any
successor agency for all of its construction and for responding in a timely manner to
requests from J.0 L.I.E. or successor agency and the Village to locate its cables. The
Grantee is responsible for accurately marking its plant in conformance with J U.L I.E. or
successor agency standards.
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E. Personnel. The Grantee is responsible for all of its personnel, including its contractors,
agents, employees and subcontractors engaged in system construction and maintenance. All
employees working for the Grantee in the field shall carry identifications of the person at all
time. All of the Grantee's vehicles, and any contractor or sub - contractor vehicles, shall be
clearly identified as performing work for the Grantee.
F. Installation Standards:
1. All underground drops shall be buried a minimum of six (6) inches.
2. A subscriber shall have the option to connect a standard drop to the dwelling unit by
either-
a. Connection of the aerial drop to the dwelling unit at a minimum of twelve (12) feet
above the ground level; or,
b. Attachment of the drop to the side of the utility pole and buried from the base of the
utility pole to the dwelling unit.
3. All temporary service drops placed between November 1 of the prior year and March 1 of
the current year, also known as snowdrops, shall be burled between April 1 and May 31,
weather permitting, in addition to any delays permitted by the Village Weather
penmitting; the Grantee shall bury all temporary drops, excluding snowdrops referenced
above, within fourteen (14) business days after placement.
Section 19: Service to Franchise Area:
Franchise Area: The Franchise Area shall be the corporate limits of the Village, as they exist
now and throughout the term of the Franchise. Any subsequently annexed or areas
already being served by the Grantee shall continue to be provided service under the
Franchise pertaining to the annexed area. The Grantee shall make all reasonable efforts,
in accordance with this Ordinance, to provide identical common services to the annexed
area as soon as practical
(A) Extension of Cable System: Line Extension to Residences: In areas of the Franchise
territory not included in the Initial Franchise service area, the Grantee shall be
required to extend its Cable System pursuant to the following density and proximity
requirements, as well as in accordance with the additional provisions with this
Section:
1. The Grantee shall extend and make Cable Service available to every dwelling unit in all
unserved, developing areas having at least twenty -five (25) occupied dwelling units per
cable mile, as measured from the existing system simultaneously with the installation of
utility lines to the extent practical.
2. The Grantee shall extend and make Cable Service available to any isolated resident
outside the Initial Franchise service area requesting connection at the standard connection
charge, if the connection to the isolated resident would require no more than a standard
one hundred twenty -five (125) foot drop line.
(B) Early Extension: In areas not meeting the requirements for mandatory extension of
service, the Grantee shall provide, upon the request of a potential Subscriber an estimate
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of the Grantee's costs required to extend service and if the potential Subscriber agrees to
pay such costs, the Grantee shall extend service to the potential Subscriber.
Section 20: Construction and technical standards.
(a) Compliance with construction and technical standards. The Grantee shall
construct, install, operate and maintain its system in a manner consistent with all laws,
ordinances, construction standards, governmental requirements In addition, the Grantee shall
provide the Village, upon request, a written report of the results of the Grantee's annual proof of
performance tests conducted pursuant to Federal Communications Commission standards and
requirements.
(b) Additional specifications:
(1) Construction, installation and maintenance of the cable television system shall be
performed in an orderly and workmanlike manner. All cables and wires shall be installed, where
possible, parallel with electric and telephone lines. Multiple cable configurations shall be
arranged in parallel and bundled with due respect for engineering considerations
(2) The Grantee shall at all times comply with:
a. National Electrical Safety Code (National Bureau of Standards);
b. National Electrical Code (National Bureau of Fire Underwriters);
C. Applicable FCC or other federal, state and local regulations.
(3) In any event, the System shall not endanger or interfere with the safety of persons
or property in the franchise area or other areas where the Grantee may have equipment located.
(4) Any antenna structure used in the system shall comply with construction,
marking, and lighting of antenna structure, required by the United States Department of
Transportation.
(5) All working facilities and conditions used during construction, installation and
maintenance of the cable television system shall comply with the standards of the Occupational
Safety and Health Administration.
(6) Radio frequency (RF) signal leakage shall be checked at reception locations for
emergency radio services to prove no interference signal combinations are possible. Stray
radiation shall be measured adjacent to any proposed aeronautical navigation radio sites to prove
no interference to airborne navigational reception in the normal flight patterns. FCC rules and
regulations shall govern.
(7) The Grantee shall maintain - quipment capable of providing standby power for
headend, transportation and trunk amplifiers for a minimum of two (2) hours
1'J
(8) In all areas of the Village where all the cables, wires and other like facilities of
public utilities are placed underground, the Grantee shall place its cables,, wires and other like
facilities underground. When public utilities relocate their facilities from pole to underground,
the Grantee must concurrently do so. If said utilities are reimbursed for such relocation, the
Grantee shall be entitled to like reimbursement.
Section 21: Use of streets.
(a) Interference with persons and improvements. The Grantee's system, poles, wires
and appurtenances shall be located, erected and maintained so that none of its facilities shall
endanger or interfere with the lives of persons or interfere with the rights or reasonable
convenience of property owners who adjoin any of the streets and public ways, or interfere with
any improvements the Village may deem proper to make, or hinder or obstruct the free use of the
streets, alleys, bridges, easements or public property.
(b) Restoration to prior condition. In case of any disturbance of pavement, sidewalk,
landscaping, driveway or other surfacing, the Grantee shall, at its own cost and expense and in a
manner approved by the Village, replace and restore all paving, sidewalk, driveway, landscaping,
or surface of any street or alley disturbed, in as good condition as before the work was
commenced and in accordance with standards for such work set by the Village. Village approval
shall not be unreasonably withheld.
(c) Erection, removal and common uses of poles:
(1) No poles or other free - standing wire - holding structures for aerial plant
shall be erected by the Grantee without prior approval of the Village with regard to location,
height, types, and any other pertinent aspect. However, no location of any pole or freestanding
wire- holding structure of the Grantee shall be a vested interest and such poles or structures shall
be removed or modified by the Grantee whenever the Village determines that the public
convenience would be enhanced thereby.
(2) Where poles or other free - standing wire - holding structures for aerial plant
that already are in use in serving the Village are available for use by the Grantee, but Grantee
does not make arrangements for such use, the Village may require the Grantee to use such poles
and structures if the Village determines that the public convenience would be enhanced thereby
and the terms of the use available to the Grantee are reasonable.
(d) Relocation of facilities. If at any time during the period of the Franchise the
Village shall elect to alter, or change the grade of any street, alley or other public ways, the
Grantee, upon reasonable notice by the Village, shall remove or relocate as necessary its poles,
wires, cables, underground conduits, manholes and other fixtures at its own expense.
(e) Cooperation with building movers. The Grantee shall, on the request of any
person holding a building- moving permit issued by the Village, temporarily raise or lower its
wires to permit the moving of buildings. The %xpense of such temporary removal, raising or
lowering of wires shall be paid by the person requesting the same, and the Grantee shall have the
20
authority to require such payment in advance. The Grantee shall be given not less than seventy-
two (72) hours advance notice to arrange for such temporary wire changes.
(f) Tree trimming. The Grantee shall not remove any tree without the prior consent of
the Village.
Section 22: Operational standards.
(a) The Grantee shall maintain all parts of the system in good condition throughout
the entire Franchise period.
(b) Upon the reasonable request for service by any person located within the
franchise territory, the Grantee shall, within thirty (30) days, furnish the requested service to
such person within terms of the line extension policy in Section 17 (b). A request for service
shall be unreasonable for the purpose of this subsection if no trunk or feeder line installation
capable of servicing that person's block has been installed.
(c) The Grantee shall render efficient service, make repairs promptly, and interrupt
service only for good cause and for the shortest time possible.
(d) The Grantee shall not allow its cable or other operations to interfere with
television reception of subscribers or persons not served by the Grantee, nor shall the system
interfere with, obstruct or hinder in any manner the operation of the various utilities serving the
residents within the confines of the Village nor shall other utilities interfere with the Grantee's
system.
Section 23: Customer service standards.
(a) Nothing in this chapter shall be construed to prohibit the enforcement of any
federal, state or local law or regulation concerning customer service or consumer protection that
imposes customer service standards or consumer protection requirements that exceed the
customer service standards set out in this chapter or that address matters not addressed in this
chapter.
(b) The Grantee shall maintain a toll free, collect or local telephone access line which
is available to its subscribers and shall have representatives available to respond to customer
telephone inquiries twenty -four (24) hours per day, seven (7) days per week.
(c) Under nonnal operating conditions, telephone answer time, including wait time
and the time required to transfer the call, shall not exceed thirty (30) seconds. This standard shall
be met no less than ninety percent (90 %) of the time as measured on a quarterly basis.
(d) Under nonnal operating conditions, the customer will receive a busy signal less
than three percent (3 %) of the total time that the office is open for business
21
(e) Customer service centers and bill payment locations will be open for walk -in
customer transactions a minimum of eight (8) hours per day Monday through Friday, unless
there is a need to modify those hours because of the location or customers served.
(f) Under normal operating conditions, each of the following standards will be met
no less than ninety -five percent (95 %) of the time as measured on an annual basis.
(1) Standard installations will be performed within seven (7) business days
after an order has been placed. A standard installation is one that is within one hundred twenty
five (125) feet of the existing system.
(2) Excluding those situations that are beyond its control, the Grantee will
respond to any service interruption promptly and in no event later than twenty -four (24) hours
from the time of initial notification. All other regular service requests will be responded to within
thirty -six (36) hours during the normal workweek IVi that system except to the extent that other
arrangements acceptable to the customer can bP made The appointment window alternatives for
installations, service calls and other installation activities will be: "morning" or "afternoon;" not
to exceed a four -hour "window" during normal business hours for the system, or at a time that is
mutually acceptable. The Grantee may schedule supplemental hours during which appointments
can be scheduled based on the needs of the consumers. If at any time an installer or technician is
running late, an attempt to contact the customer will be made and the appointment rescheduled as
necessary at a time that is convenient to the customer.
(g) Subscriber Credit for Outages. Upon service interruption of a subscriber's cable
service, and upon subscriber request, the following shall apply:
(1) Grantee shall provide a credit for lost Cable Service of not less than the value of
the actual time without service, due to an outage or interruption of Cable Service
lasting at least four (4) or more hours, or provide equal or greater credit as is
consistent with its normal customer service policy and practices.
(h) The Grantee shall provide written information for each of the following areas at
the time of installation and at any future time upon the request of the customer:
(1) Product and services offered
(2) Prices and service options
(3) Installation and service policies
(4) How to use the cable television services
(1) Bills will be clear, concise and understandable, with all charges for cable services
and packages itemized.
0) A Grantee may impose a lace, administrative or other fee on a customer for non-
payment of a bill
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(k) The Grantee shall notify customers a minimum of thirty (30) days in advance of
any rate or channel change.
(1) The Grantee shall maintain and operate its network in accordance with the rules
and regulations incorporated herein or as may be promulgated by the Federal Communications
Commission, the United States Congress, or the State of Illinois.
(m) The Grantee shall continue, through the term of the Franchise, to maintain the
technical standards and quality of service set forth in this chapter. Should the Village obtain
evidence and determine by findings of fact that the Grantee has failed to maintain the technical
standards and quality of service, and should it, by resolution, specifically enumerate said failures,
the Grantee shall correct said failures Failure to make such improvements within three (3)
months of such resolution will constitute a breach of a condition for which penalties contained in
Section 44 are applicable
Section 24: Continuity of service mandatory.
(a) It shall be the right of all subscribers to continue receiving service insofar as the
financial and other obligations to the Grantee are fulfilled by the subscriber. If the Grantee elects
to over build, rebuild, modify or sell the system, the Grantee shall reasonably act so as to ensure
that the system provides continuous, uninterrupted service regardless of the circumstances.
(b) If there is a change of Franchise, or if a new operator acquires the system, the
Grantee shall cooperate with the Village, new franchisee or operator in maintaining continuity of
service to all subscribers. During such period, the Grantee shall be entitled to the revenues for
any period during which it operates the system, and shall be entitled to reasonable costs for its
services until it no longer operates the system.
(c) If the Grantee fails to operate the system for seven (7) consecutive days without
prior approval of the Village or without dust cause, the Village may, at its option, operate the
system or designate an operator until such time as the Grantee restores service under conditions
acceptable to the Village or a permanent operator is selected
Section 25: Complaint procedure.
(a) The Village Manager or his /her designee is designated as having primary
responsibility for the continuing administration of the Franchise and implementation of
complaint procedures, except for the ultimate determination of violations, penalties, revocation
or termination of the Franchise.
(b) The Grantee will make good faith efforts to arrange for one or more payment
locations in a central location where customers can pay bills within_ 20 miles of the Village.
(c) As subscribers are connected or reconnected to the system, the Grantee shall, by
appropriate means, such as a card or brochure, furnish information concerning the procedures for
23
making inquiries or complaints, including the name, address and local telephone number of the
employee or employees or agent to whom such inquiries or complaints are to be addressed.
(d) When there have been similar complaints made, or where there exists recurring
evidence, which casts doubt on the reliability or quality of cable service, the Village shall have
the right and authority to require the Grantee to test, analyze and report on the performance of
the system. The Grantee shall fully cooperate with the Village in performing such testing and
shall prepare results and a report, if requested, within thirty (30) days after notice. Such report
shall include the following infonmation:
(1) The nature of the complaint or problem that precipitated the special tests;
(2) The system component(s) tested;
(3) The equipment used and procedures employed in testing;
(4) The method, if any, in which such complaint or problem was resolved;
(5) Any other information pertinent to the tests and analysis, which may be required.
(e) The Village may require that tests be observed by an independent professional
engineer or equivalent of the Village's choice at the Village's expense. The engineer shall be
given records of special tests and may forward to the Village such records with a report
interpreting the results of the tests.
(f) The Village's rights under this section shall be limited to requiring tests, analysis
and reports covering specific subjects and characteristics based on recurring complaints or other
evidence when and under such circumstances as the Village has reasonable grounds in its
judgment to believe that the complaints or other evidence require that tests be performed to
protect the public against violations of this Ordinance and an attendant Franchise Agreement.
Section 26: Grantee rules and regulations.
The Grantee shall have the authority to promulgate such rules, regulations, terms and
conditions governing the conduct of its business as shall be reasonably necessary to enable the
Grantee to exercise its rights and perform its obligations under the Franchise, and to assure
uninterrupted service to each and all of its customers; provided, however, that such rules,
regulations, terms and conditions shall not be in conflict with the provisions hereof or applicable
state and federal laws, rules and regulations.
Section 27: Franchise Fee.
(a) A Grantee shall pay to the Village a Franchise Fee in the amount designated in the
Franchise Agi cement. Unless otherwise specified in the Franchise Agreement, such Franchise
Fee shall be five percent (5 %) of the Grantee's gross revenues. If the statutory five (5) percent
limitation on Franchise Fees is raised or the Franchise Fee limitation is deleted entirely from the
federal statute, then the Village shall be allowed to increase such increased Franchise Fee upon
24
i
notice to the Grantee providing the Grantee the reasonable opportunity to implement necessary
changes to collect such increased Franchise Fee.
(b) The Franchise Fee payment shall be in addition to any other tax or payment owed
to the Village by the Grantee and shall not be construed as payment in lieu of municipal property
taxes or other state, county or local taxes.
(c) The Franchise Fee and any other penalties assessed shall be payable quarterly on
a calendar year basis to the Village within thirty (30) days of the end of each quarter. The
Grantee shall also file a complete and accurate verified statement of all gross receipts as
previously defined within thirty (30) days after the end of the quarter.
(d) The Village shall have the right to Inspect the Grantee's records of gross revenue
for the cable system in the Village and the right to audit and to recompute any amounts
determined to be payable under this chapter, provided, however, that such audit shall take place
within sixty (60) months following the close of each of the Grantee's fiscal years. Any additional
amount due the Village as a result of an audit shall be paid within thirty (30) days following
written notice to the Grantee by the Village, which notice shall include a copy of the audit report,
except where Grantee may reasonably dispute such an amount.
(e) If any Franchise Fee payment or recomputed amount, or penalty, is not made on
or before the applicable dates heretofore specified, interest shall be charged dally from such date
at an annual rate of twelve percent (12 %).
Section 28: Transfer of ownership or control.
(a) A Grantee shall not be sold, assigned or transferred, either in whole or in part,
without the prior written consent of the Village. Within thirty (30) days of
receiving a request for the sale, assignment or transfer the Village shall, in
accordance with FCC rules and regulations, notify the Grantee in writing of the
information the Village requires to determine the legal, financial and technical
qualifications of the transferee and such other information as is permitted the
Village under FCC rules and regulations. The Village shall be deemed to have
consented to a proposed sale, transfer or assignment if its refusal to consent is not
communicated in writing to the Grantee within one hundred and twenty (120)
days following receipt of written notice together with all necessary information
unless the requesting party and the Village agree to an extension of time. The
Village shall not unreasonably withhold consent to a proposed transfer.
(b) The Grantee may, however, transfer or assign the Franchise to a wholly owned
subsidiary of the Grantee without such consent, provided that such transfer or
assignment is without any release of liability of the Grantee. Any proposed
transferee or _assignee must possess the necessary legal, technical and financial
qualifications to establish its ability to operate the system in conformity with
federal law and this Ordinance The Grantee shall provide written notification to
the Village within 30 days of any such transfer or assignment to a wholly owned
25
subsidiary. Any proposed assignee must agree to comply with all provisions of
the Franchise Agreement.
(c) The Grantee shall promptly notify the Village of any actual or proposed pending
change in, or transfer of, or acquisition by any other party of, control of the
Grantee. The word "control" as used herein is not limited to major stockholders
but includes actual working control in whatever manner exercised. A rebuttable
presumption that a transfer of control has occurred shall arise upon the acquisition
or accumulation by any person or group of persons of twenty percent (20 %) of the
voting shares of the Grantee. Every change, transfer or acquisition of control of
the Grantee shall snake the Franchise subject to cancellation unless and until the
Village shall have consented thereto, which consent shall not be unreasonably
withheld. For the purpose of determining whether it shall consent to such change,
transfer or acquisition of control, the Village may- investigate the legal, technical,
and financial qualifications of the prospective controlling party, and the Grantee
and /or assignee shall reasonably cooperate with the Village's investigation
(d) The consent or approval of the Village to any transfer of the Grantee, the
Franchise, or control thereof, shall not constitute a waiver or release of the rights
of the Village in and to the streets, and any transfer shall by its terms, be expressly
subordinate to the terms and conditions of the Franchise.
(e) In the absence of extraordinary circumstances, the Village shall not be required to
approve any transfer or assignment of a new Franchise prior to substantial
completion of the initial construction of the proposed system.
(f) In no event shall a transfer of ownership or control be approved without the
successor(s) in interest executing a written acceptance of the Franchise
Agreement, including the successor (s) agreement to be bound by such Franchise
agreement, either as part of a transfer resolution or a transfer agreement
Section 29: Availability of books and records.
(A) Requirement to Maintain Specific Books and Records:
(1) All records pertaining to Subscribers, Cable System operations, and finances of
the Grantee shall be maintained in a local office, or in a regional office to
facilitate municipal regulatory oversight. This Section shall not apply to records
generated by a third party with respect to Cable System programming or
operations.
(2) Where Grantee is unable to locate books and records specific to the Franchise
Area at a location which is within the Chicago Metropolitan Area, Grantee may
maintain such books and records at a remote location which is set forth by
Grantee with the provision that in the event that the Franchising Authority, or its
designee requests to inspect such records, Grantee shall permit the inspection of
26
such records within thirty (30) calendar days of the Franchising Authority's
request.
(B) Records to Be Provided: Upon request, the Grantee shall provide to the Village a
quarterly Cable Operations and Service Profile in the form illustrated below. This report
shall be due no later than 30 days past the date of requested.
(1) A status report for new construction projects within the Village.
(2) A log of service interruptions within the Village. The log shall contain note the
amount of power related outages, planned maintenance outages (including
upgrade projects), equipment related outages, weather related outages, outages
caused by cut cables, other miscellaneous outages and the total number of
subscribers affected.
(3) A telephone answering profile containing the number of phone calls answered
within 30 seconds, the percentag:, of phone calls answered within 30 seconds and
the average speed of answer.
(4) A log of service calls detailed by broad category. Such log shall contain
information regarding: plant related service calls, converter related service calls,
drop related service calls, headend related service calls, customer education calls,
other miscellaneous service calls and the total number of service calls.
(5) Grantee shall be permitted to amend or alter any of the applicable reports
consistent with its normal business operations including the elimination of any
such reports or information provided the Grantee continues to cooperate with the
Village to provide the information necessary to allow the Village to act in its
regulatory authority.
(C) Duration of Maintenance of Records: The Grantee shall maintain the following records
for the amount of time as specified hereunder:
(1) FCC Form 325 or As successor, where applicable, shall be maintained for the life
of the Franchise.
(2) Public files as required by the FCC for the time period as specified by the FCC.
Section 30: Fiscal reports.
The Grantee shall file annually with the Village no later than one hundred twenty (120)
days after the end of the Grantee's fiscal year, a copy of a gross revenues statement signed by a
duly authorized officer or Auditor of the Gray -)tee.
Section 31: Removal of Cable Television system
Upon termination of the rights granted hereunder, the Grantee shall remove designated
aerial portions of the cable television system from the streets and public property within the
Village as may be required to serve the public interest Upon such notice of removal, a bond
27
shall be furnished or an existing bond maintained by the Grantee in an amount sufficient to cover
this expense.
Section 32: Required services and facilities.
A. At such time that the Village determines that it wants the capacity to allow the
Village to receive educational and/or governmental access programming (video and
character generated) which may originate from Schools and/or Village facilities (other
than those having a signal point of origination at the time of the execution of this
Agreement), the Village will give the Grantee written notice detailing the location of the
signal point of origination. The Grantee agrees to submit a cost estimate to implement
the Village's plan within a reasonable period of time. After an agreement to reimburse
the Grantee for its expenditure, the Grantee will implement any necessary system
changes within a reasonable period of time. At such time that the Village determines that
it wants to change a location from which educational and governmental access
programming is originated, the Village will give the Grantee written notice detailing the
change in point of origination. The Grantee agrees to submit a cost estimate to
implement the Village's plan within a reasonable period of time. After an agreement to
reimburse the Grantee for its expenditure, the Grantee will implement any necessary
system changes within a reasonable period of lime.
B. Company shall provide at least three specially designated, non - commercial public,
educational and governmental (PEG) access channels. Regional Access Programming: In
lieu of operating its own PEG channels. The Village can choose to receive the regional
PEG signals, as long as they exist, on one or all three of the PEG channels in the Village
C. The Grantee shall incorporate into its cable television system the capacity to permit
the Village, in times of emergency, to override by telephone the audio of all analog
channels simultaneously, which the Grantee may lawfully override. The Grantee shall
cooperate with the Village in the use and operation of the emergency alert override
system. The Village agrees to indemnify and hold the Grantee harmless from any
damages or penalties arising out of the action.- of the Village, its employees or agents in
using such service.
D. Subject to executing a mutually agreeable contract between the Grantee and the
Village, the Grantee shall construct a separate institutional network (I -NET) consisting of
such cable as may be reasonable to connect local government facilities. The Village will
be responsible for purchase, repair and replacement for any User premise equipment.
E. Cooperation required. The Grantee shall cooperate to a reasonable degree with any
interconnection corporation, regional interconnection authority or Village, county, state
and federal regulatory agency which may be hereafter established for the purpose of
regulating, financing, or otherwise providing for the interconnection of cable systems
beyond the boundaries of the Village.
Section 33. Performance evaluation sessions.
W
r
(a) The Village and the Grantee may hold scheduled performance evaluation
sessions. All such evaluation sessions shall be open to the public.
(b) Topics which may be discussed at any performance evaluation session may
include, but are not limited to service rate structures; Franchise Fee, penalties, free or discounted
services; application of new technologies; system performance; services provided; programming
offered; customer complaints; privacy; amendments to this ordinance; judicial and FCC rulings;
line extension policies; and Grantee or Village rules.
Section 34 Rate change procedures
Pursuant to the Cable Television Consumer Protection and Competition Act of 1992, as
amended, the Village of Oak Brook may regulate the Basic Service rates charged by Grantee.
Under these rules, Grantee may be required to obtain approval from the Village for a rate
increase for any change to the rates for Basic Service. Should Federal or State law permit further
rate regulation beyond the Basic Service the Village of Oak Brook may assume such rate
regulation and adopt appropriate procedures for such regulation.
Section 35: Involuntary termination.
(a) In addition to all other rights and powers retained by the Village under this
ordinance or otherwise, the Village reserves the right to terminate the Franchise Agreement and
all rights and privileges of the Grantee hereunder in the event of a substantial breach of its terms
and conditions. A substantial breach by the Grantee shall include:
(1) The Grantee continues to willfully violate a material provision of the
Franchise or any material rule, order, regulation or determination after written notice from the
Village and reasonable opportunity to cure;
(2) The Grantee practices any material fraud in its conduct in obtaining or
operating the Franchise;
(3) Failure to begin or complete system construction, or to complete any
upgrade of the Cable System required in a Franchise Agreement;
(4) Willful failure to pay taxes or Franchise Fees, or penalties when and as
due the Village;
(5) Willful failure to maintain required insurance coverage;
(6) Failure to restore system wide service after forty -eight (48) hours of
interrupted service, provided the Grantee's failure to restore system wide service is not caused by
circumstances or events beyond the Grantee's reasonable control;
(7) Insolvency or bankruptcy of the Grantee,
(8) Transfer of the Franchise without Village approval pursuant to-Section 28,
29
I
(9) The Grantee abandons its Franchise The Grantee shall be deemed to have
abandoned its Franchise if it willfully refuses or is unable to operate the cable system as required
by this Franchise, when there is no event beyond the Grantee's control that prevents the
operation of the cable system, and where operation would not endanger the health or safety of
the public or property.
(b) The foregoing shall not constitute a substantial breach if the violation occurs but
is without fault of the Grantee or occurs as a result of circumstances beyond its control. The
Grantee shall not be excused by mere economic hardship or by misfeasance or malfeasance of its
directors, officers or employees
(c) The Village, at its option, may make a written demand that the Grantee comply
with any such provision, rule, order or determination under or pursuant to the Franchise. If the
violation by the Grantee continues for a period of thirty (30) days following receipt of such
written demand by the Grantee without written proof that the corrective action has been taken or
is being actively and expeditiously pursued, the Village may place the issue of termination of the
Franchise before the Village Board. The Village shall give the Grantee written notice, at least
twenty (20) days prior to the date of such meeting of the Village Board, of its intent to request
such termination and the time and place of the Board meeting. Public notice as required by the
Open Meetings Act shall be given of the meeting and the issue(s), which the Board is to
consider.
(d) The Village Board may hear and consider the issue(s) and shall hear any person
interested therein and shall determine by findings of fact whether or not any substantial breach
by the Grantee has occurred.
(e) If the Village Board determines that the substantial breach by the Grantee was the
fault of the Grantee and within its control, the Board may, by resolution declare that the
Franchise of the Grantee shall be involuntarily terminated; however, the Village may also allow
the Grantee an opportunity for compliance within such period as the Board may fix, which
period shall be reasonable to effect compliance;
(f) The issue of involuntary termination may automatically be placed upon the
Village's agenda at the expiration of the time set by it for compliance. The Village may then
terminate the Franchise forthwith upon finding that the Grantee has failed to achieve compliance
or it may further extend the period at its discretion
(g) Removal of Cable System Plant and Equipment: If, upon revocation of Grantee's
Franchise, the Village does not elect to purchase the Cable System, and no sale of the Cable
System is made to a successor Grantee, then the Village shall require that Grantee terminate and
dismantle the Cable System, including its wiring, equipment, Headend facilities, if located within
the Village limits, and related appurtenances except that in the event that the Grantee is
providing telecommunications services as defined by the Cable Act the Grantee shall not be
required to remove those facilities which provide said services. Upon completion of termination
and dismantling of the Cable System, Grantee shall, upon direction by Village, restore any
30
i
property, public or private, to the condition in which it existed prior to erection or construction of
the Cable System, including any improvements made to such property subsequent to
construction of the system. Restoring of Village property, including all Public Streets and Public
Ways as defined herein, and other public lands, shall be in accordance with the directions and
specifications of the Village set forth herein and all applicable laws. Grantee shall restore said
Public Streets, Public Ways and properties at its expense.
Section 36: Foreclosure.
Upon the foreclosure or other judicial sale of all or a substantial part of the system, the
Grantee shall notify the Village of such fact, and such notification shall be treated as a
notification that a change in control of the Grantee has taken place, and the provisions of the
Franchise governing the consent of the Village to such change in control of the Grantee shall
apply.
Section 37: Receivership.
The Village shall have the right to cancel a Franchise one hundred twenty (120) days
after the appointment of a receiver, or trustee, to take over and conduct the business of the
Grantee, whether in receivership, reorganization, bankruptcy or other action or proceeding,
unless such receivership or trusteeship shall have been vacated prior to the expiration of one
hundred twenty (120) days, or unless:
(1) Within one hundred twenty (120) days after his/her election or appointment, such
receiver or trustee shall have fully complied with all the provisions of this chapter and remedied
all defaults there under or presented a reasonable plan for said remedy; and
(2) Such receiver or trustee, within the one hundred twenty (120) days, shall have
executed an agreement, duly approved by the court having jurisdiction in the premises, whereby
such receiver or trustee assumes and agrees to be bound by each and every provision of this
chapter and the Franchise granted to the Grantee or as may otherwise be agreed to by the Village.
Section 38: Compliance with state and federal laws.
(a) Notwithstanding any other provisions of the Franchise to the contrary, the Grantee
and the Village shall at all tunes comply with all laws and regulations of the state and federal
government or any administrative agencies thereof.
(b) If the Village determines that a material provision of this chapter is affected by
any subsequent action of the state or federal government, the Village shall modify any of the
provisions herein to such reasonable extent as may be necessary to carry out the full intent and
purpose of this Ordinance to the extent practicable and enforceable.
Section 39: Landlord/tenant
(a) Interference with cable service prohibited. Neither the owner of any multiple unit
residential dwelling nor his agent or representative shall interfere with the right of any tenant or
31
I
lawful resident thereof to receive cable television service, cable installation or maintenance from
a cable television Grantee regulated by and lawfully operating under a valid and existing
Franchise issued by the Village.
(b) Penalties and charges to tenants for service prohibited. Neither the owner of any
multiple unit residential dwelling nor his agent or representative shall penalize, charge or
surcharge a tenant or resident or forfeit or threaten to forfeit any right of such tenant or resident,
or discriminate in any way against such tenant or resident who requests or receives cable
television service from a Grantee operating under a valid and existing cable television Franchise
issued by the Village.
Section 40: Applications for Initial Franchise.
(a) All applications received by the Village from the applicants for an Initial
Franchise shall become the sole property of the Village.
(b) The Village reserves the right to reject any and all applications and waive
informalities and/or technicalities where the best interest of the Village may be served.
(c) All questions regarding the meaning or intent of this chapter or application
documents shall be submitted to the Village in writing. Replies will be issued by addenda mailed
or delivered to all parties recorded by the Village as having received the application documents.
The Village reserves the right to make extensions of time for receiving applications, as it deems
necessary. Only replies to questions by written addenda will be binding. All applications must
contain an acknowledgment of receipt of all addenda.
(d) Applications must be sealed, and submitted at the time and place indicated in the
application documents for the public opening. Applications may be modified at any time prior to
the opening of the applications, provided that any modifications must be duly executed in the
manner that the applicant's application must be executed No application shall be opened or
inspected before the public opening.
(e) Before submitting an application, each applicant must:
(1) Examine this chapter and the application documents thoroughly;
(2) Familiarize himself/herself with local conditions that may in any manner
affect performance under the Franchise;
(3) Familiarize himself /herself with federal, state and local laws, ordinances,
rules and regulations affecting performance under the Franchise; and
(4) Carefully correlate the application with the requirements of this chapter
and the application documents
32
(f) The Village may make such investigations as it deems necessary to determine the
ability of the applicant to perform under the Franchise, and the applicant shall furnish to the
Village all such information and data for this purpose as the Village may request. The Village
reserves the right to reject any application if the evidence submitted by, or investigation of, such
applicant fails to satisfy the Village that such applicant is properly qualified to carry out the
obligations of the Franchise and to complete the work contemplated therein Conditional
applications will not be accepted.
(g) All applications received shall be placed in a secure depository approved by the
Village and shall not be opened nor inspected prior to the public opening.
Section 41: Financial, contractual, shareholder and system disclosure for Initial Franchises.
(a) No Franchise will be granted to any applicant unless all requirements and
demands of the Village regarding financial, contractual; shareholder and system technology
disclosures have been met.
(b) Applicants, including all shareholders and parties with any interest in the
applicant, shall fully disclose all agreements and undertakings, whether written or oral, or
implied with any person, firm, group, association or corporation with respect to the Franchise
and the proposed cable television system. The Grantee of a Franchise shall disclose all other
contracts to the Village as the contracts aie made. This section shall include, but not be limited
to, any agreements between local applicants and national companies.
(c) Applicants, including all shareholders and parties with any interest in the
applicant, shall submit all requested information as provided by the terms of this chapter or the
application documents, which are incorporated herein by reference. The requested information
must be complete and verified as true by the applicant.
(d) Applicants, including all shareholders and parties with any interest in the
applicant, shall disclose the numbers of shares of stock, and the holders thereof, and shall include
the amount of consideration for each share of stock and the nature of the consideration.
(e) Applicants, including all shareholders and parties with any interest in the
applicant, shall disclose any information required by the application documents regarding other
cable systems in which they hold an interest of any nature, including, but not limited to, the
following:
(1) Locations of all other franchises and the dates of award for each location;
(2) Estimated construction costs and estimated completion dates for each
system;
(3) Estimated number of miles of construction and number of miles completed
in each system as of the date of this application, and
33
(4) Date for completion of construction as promised in the application for
each system.
(f) Applicants, including all shareholders and parties with any interest in the
applicant, shall disclose any information required by the application documents regarding
pending applications for other cable systems, including, but not limited to, the following:
system;
(1) Location of other franchise applications and date of application for each
(2) Estimated dates of franchise awards;
(3) Estimated number of miles of construction; and
(4) Estimated construction costs.
(5) Applicants shall also provide the following information to establish their
technical, legal and financial qualifications. 1) A detailed corporate structure of the applicant
including identities of parent and subsidiary corporations or partnership. 2) The identities of
shareholders of 5% or more of the stock of applicant and any parent organizations. The identities
of all officers and directors of the applicant. 3) A detailed financial pro -forma for the proposed
cable system including sources and uses of funds and detailed capital and operating projections
by category.
Section 42: Franchise Violation; Notice and Procedures:
A. General. The Grantee shall comply with the requirements of the Ordinance
and this Franchise Agreement at all times during the tenn of its Franchise.
B. Material Violations. If the Village has reason to believe that the
Grantee has committed a material violation of this Franchise Agreement, the Village may
act to remedy the violation in accordance with the procedures set forth below. A material
violation shall include.
1. Construction or operation in the Village or in the Public Ways of the
Village without a required permit, license or authorization.
2. Construction or operation at an unauthorized location.
3. Unauthorized Franchise transfer.
4 Material misrepresentation by or on behalf of the Grantee in any application to the
Village or in any report or document required to be filed with the Village.
5. Failure to construct, complete, relocate or remove all or any part of the Cable
System as required by this Ordinance or the Franchise Agreement
011
6. Failure to provide the services, facilities or resources required by this Ordinance
or the Franchise Agreement.
7. Failure to pay taxes, Franchise Fees, costs or penalties when and as due the
Village.
8. Failure to file required documents, applications or reports, including
Financial reports, with the Village.
9. Failure to deliver evidence of Grantee's insurance coverage as specified in Section
13 hereof.
10. Failure to file and maintain with the Village all required bonds.
11. Failure to establish and maintain the security fund required pursuant to Section 12
of this Ordinance.
12. Failure to restore any amount withdrawn from the security fund within the time
specified in Section 12 of this Ordinance.
13. Failure to commence or complete construction within the time specified in this
Ordinance.
14 Repeated failure to comply with the Customer Service Standards as required by
this Ordinance.
15 Failure to comply with the Access programming provisions of this Ordinance.
16. Failure to comply with any material term of the Ordinance or the Franchise
Agreement.
C. Notice of Material Violations. Written notice shall be given to the Grantee setting forth
the nature of the material violation and a reasonable period of time for the Grantee to
correct the violation. Unless the Village determines that the violation is of such a nature
that a lesser period of time is warranted for remedying the violation, the Grantee shall be
given thirty (30) days after receipt of such notice to remedy the violation.
D Answer to Notice of Violations. Within the thirty (30) days, or such other period of time
specified by the Village in its notice to the Grantee, the Grantee shall respond in writing
to the Village:
1. That it contests the Village's notice of violation and requests an opportunity to be
heard as provided herein. The Grantee shall submit supporting documentation with its
response to the notice,
35
2. That it contests the Village's notice of violation for the reasons that no violation exists
or the violation was beyond the reasonable control of the Grantee and requests an
opportunity to be heard as provided herein. The Grantee shall submit supporting
documentation with its response to the notice.
3. That the Grantee will remedy the violation within the time specified by the Village in
its notice to the Grantee.
4. If the Grantee contends that an extended period of time is reasonably needed to
remedy the violation, it shall submit a written request for an extension, together with
supporting documentation that the Grantee cannot reasonably remedy the violation within
the time period specified by the Village in its notice to the Grantee. The Village shall not
unreasonably deny an extension of time to remedy the violation. If the Village grants the
extension, the Grantee shall proceed to remedy the violation within the extended time
prescribed, provided that the Grantee shall also inform the Village on a regular basis of
the steps being taken to remedy the violation
E. Hearing. The Village shall give the Grantee not less than fourteen (14) days written notice
of the date, time and place of the public hearing to be held before the Corporate
Authorities. At the public hearing, the Corporate Authorities shall hear and determine the
issues and render its findings and its decision If a hearing officer has been appointed by
the Village, the hearing officer shall hear the relevant evidence and shall render a record
of the administrative hearing and recommended findings and decision to the Corporate
Authorities.
F. Determination. If the Grantee fails to submit a written response to the Village's notice of
violation as provided in Paragraph D., or if the Grantee fails to remedy the violation
within the time period specified by the Village in its notice to the Grantee, or any
extensions thereto granted by the Village or if the Grantee submits a response, and if the
Corporate Authorities are persuaded after a hearing that the Grantee has committed a
material violation as provided herein; the Corporate Authorities may, after giving the
Grantee an opportunity to be heard:
1. Order the Grantee to remedy the violation within a reasonable period of time
specified by the Corporate Authorities;
2 Assess liquidated damages against the Grantee in accordance with this Franchise
Agreement. or
3. Impose any lesser sanction permitted by the Franchise Agreement.
G. Judicial Relief Not Barred No provision of this Section shall be deemed to bar or
otherwise limit the right of the Franchising Authority to seek or obtain judicial relief to
enforce the provisions of the Cable Communication, Ordinance or this Franchise
Agreement.
Section 43: If any section, subsection, sentence, clause or phrase of this Ordinance is for any
reason held to be invalid, such determination shall not affect the validity of any remaining
portion of this Ordinance.
Section 44: This Ordinance shall be in full force and effect from and after its passage, approval
and publication in pamphlet form.
Section 45: The Village Clerk is hereby authorized and directed to publish this Ordinance in
pamphlet form as required by law.
PASSED THIS 22nd day of April , 2003.
Ayes: Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino
Nays. None
Absent: None
Abstain:e
APPROVED THIS 22nd
Zap
3�ry,y n ' x,[
L&
tr"j o• �
as to Form:
illage Attorney
WORDDOC /G -ORDS /Cable TV pi ovuluib fi anchis,ng
day of April -.52003.
37
Village President
Published 4 -24 -2003 Pamphlet form
Date Paper
Not Published
ORDINANCE 2003 -CB -G -718
INDEX TO
AN ORDINANCE PROVIDING FOR THE FRANCHISING
AND REGULATION OF CABLE TELEVISION SYSTEMS
IN THE VILLAGE OF OAK BROOK, ILLINOIS
SECTION
DESCRIPTION
PAGE (S)
1
Short title
1
2
Definitions
1--4
3
Rights and privileges of Grantee
4
4
Agreement and incorporation of application by reference
4
5
Franchise territory
5
6
Duration and acceptance of non - exclusive Franchise
5
7
Franchise renewal
5 -8
8
Police powers
8
9
Cable Television Franchise required
8
10
Initial Franchise Costs
9
11
Notices
9
12
Security Fund
9 -10
13
Initial Franchise Construction Bond
10
-11
14
Liability and insurance
11
15
Indemnification
11
-13
16
Rights of individuals
13
17
System construction
13
-15
18
System Design
15
-18
19
Service to Franchise Area
18
-19
20
Construction and technical standards
19
-20
21
Use of streets
20
-21
22
Operational standards
21
23
Customer service standards
21
-23
24
Continuity of service mandatory
23
25
Complaint procedure
23
-24
26
Grantee rules and regulations
24
27
Franchise Fee
24
-25
28
Transfer of ownership or control
25
-26
29
Availability of books and records
26
-27
30
Fiscal reports
27
31
Removal of Cable Television system
27
-28
32
Required services and facilities
28
33
Performance evaluation sessions
28
-29
34
Rate change procedures
29
35
Involuntary termination
29
-31
36
Foreclosure
31
37
Receivership
31
38
Compliance with state and federal laws
31
39
Landlord /tenant
31
-32
40
Applications for Initial Franchise
31
-33
41
Financial, contractual, shareholder and system disclosure
for Initial Franchises
33
-34
42
Franchise Violation, Notice and Procedures
34
-36
43
Validity
37
44
Effective Date
37
45
Publication
37