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S-1035 - 04/22/2003 - CABLE TV - Ordinances Supporting Documents{d s � Q Y O cry A t `ta VILLAGE OF OAK BROOK Village Board Transmittal Memorandum / ¢ DATE: April 15, 2003 SUBJECT: Cable Television Franchise Ordinance and Franchise Agreement FROM: Michael A Crotty, Assistant Village Manager RECOMMENDATION: That the Village Board adopt the attached Cable Television Franchise Ordinance, and adopt an ordinance executing the attached "Non- Exclusive Cable Television Franchise Agreement by and between Comcast Cablevision of Illinois, Inc. and the Village of Oak Brook, Illinois ". The existing cable television franchise agreement between the Village and Comcast Cablevision of Illinois is set to expire on June 8, 2003 The original agreement was executed in June of 1987 for a term of 15 years In May of 2002, the Village Board adopted an ordinance extending the expiration of the agreement for one year in order to allow time for staff and Comcast to complete the negotiation process. The extension was necessary since Comcast was in the process of acquiring the franchise from AT &T Broadband at that time. Over the past eight months, staff has been working with Dr. Barry Orton, cable consultant and acknowledged midwest expert in this field, to draft the attached Cable Television Franchise. Ordinance, and negotiate the terms of the franchise agreement between the Village and Comcast. That work is now complete, and staff is recommending that the Village Board adopt the attached franchise agreement and enabling ordinance. The Ordinance sets forth the general terms and conditions applicable to any cable television franchise holder Key provisions of the Ordinance include: • The right to construct, operate and maintain the infrastructure necessary for the maintenance and operation of a cable system. • The establishment of a maximum term of fifteen years from the date of execution of any agreement. • Language requiring substantially equivalent terms, conditions and requirements for multiple franchise holders in terms of payments, facilities, equipment, services and regulatory requirements • Provision of an irrevocable letter of credit, performance bond or other financial instrument to serve as security in the amount of $25,000. • The inclusion of revenues collected from high -speed cable modem or cable Internet service in the definition of "Gross Revenues" should these services be re- classified by the FCC from an "information service" to a "cable service ". The significance would be to ensure that these revenues are included for purposes of calculating the franchise fee payable to the Village In the event the FCC allows. • Guidelines and timetables concerning new system construction. Cable Franchise Renewal Ordinance doc r' • System design and installation standards, including time limits on burying service drops and cable • Customer service standards concerning telephone inquiries and assistance, bill payment, installations, subscriber credit for outages, continuity of service, etc. • Establishment of a franchise fee in the amount of 5% of gross revenues. • The provision of at least three specially designated, non - commercial public, educational and governmental (PEG) access channels. The flexibility to expand services and facilities to receive educational and /or governmental access programming. • Notice and hearing provisions for franchise violations The franchise agreement sets forth the specific terms and conditions of an individual franchise holder (in this case, Comcast Cablevision of Illinois, Inc ), and key provisions include• • The granting of a non - exclusive right to construct, operate, maintain and extend its cable system, and to use and occupy the public ways of the Village for these purposes • A franchise term of 10 years. • Payment of a franchise fee in the amount of 5% of gross revenues (the existing agreement calls for a fee in the amount of 1%). • Provision of one free standard installation of basic service to Village facilities and all public and private schools in the Village. • System design standards including a minimum number of channels (100), backup power, periodic testing and compliance with FCC standards. • Installation standards including time frames for burying service drops and cable • Customer service standards including annual notification of prices, services, options and policies, billing; telephone service; installation, outages and service calls. • A listing of franchise violations, hearing and notice provision, and the damages to be assessed in the event that violations are deemed to have occurred Dr. Barry Orton will be in attendance at the April 22 Board Meeting to answer questions, as will representatives from Comcast. /mac Cable F anchise Renewal Ordinance doe 7• � i i 7 A He requested approval of both phases, as they will not proceed with phase two if the first phase is not successful. Trustee Konn also requested more time to review the proposal due to time constraints from the holiday weekend. Motion by Trustee Miologos, seconded by Trustee Konn, to table Agenda Item 7 A. Oakbrook Shopping Center, LLC — Route 83 and 22"d Street — Text Amendments to Title 13 of the Village Code and Special Use to Facilitate the Creation of a Specialty Retail Program to be Located Throughout the Interior Common Areas of the Oakbrook Shopping Center ROLL CALL VOTE. Ayes- 5 - Trustees Aktipis, Caleel, Craig, Konn and Miologos Nays 1 - Trustee Savino Absent- 0 - None Motion carried 8 ACTIVE AGENDA (Items for Final Action) ACTIVE AGENDA A CONFIRMATION OF APPOINTMENTS: None B. ORDINANCES & RESOLUTIONS 1) ORDINANCE 2003 -CB -G -718, "AN ORDINANCE PROVIDING FOR ORD 2003 -CB -G -718 THE FRANCHISING AND REGULATION OF CABLE TELEVISION & ORD 2003 -AG- c8 Ex1-s- , 3-A CBL Tv a SYSTEMS IN THE VILLAGE OF OAK BROOK, ILLINOIS " FRNCHS ORDINANCE 2003- AG- CB -EXI -S -1035, "AN ORDINANCE ORD 03- AG- CB -EXI- S -1035 , , PRV CBLE APPROVING A NON - EXCLUSIVE CABLE TELEVISION FNCHSE AGR FRANCHISE AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF " The existing cable television franchise agreement between the Village and Comcast Cablevision of Illinois is set to expire on June 8, 2003 The original agreement was executed in June of 1987 for a term of 15 years In May of 2002, the Village Board adopted an ordinance extending the expiration of the agreement for one year in order to allow time for staff and Comcast to complete the negotiation process The extension was necessary since Comcast was in the process of acquiring the franchise from AT &T Broadband at that time Over the past eight months, staff has been working with Dr. Barry Orton, cable consultant and acknowledged midwest expert in this field, to draft the Cable Television Franchise Ordinance, and negotiate the terms of the franchise agreement between the Village and Comcast That work is now complete, and staff is recommending that the Village Board adopt the franchise agreement and enabling ordinance VILLAGE OF OAK BROOK Minutes Page 8 of 15 April 22, 2003 nom In 8 B. 2) The Ordinance sets forth the general terms and conditions applicable to any cable television franchise holder. Key provisions of the Ordinance include: • The right to construct, operate and maintain the infrastructure necessary for the maintenance and operation of a cable system • The establishment of a maximum term of fifteen years from the date of execution of any agreement • Language requiring substantially equivalent terms, conditions and requirements for multiple franchise holders in terms of payments, facilities, equipment, services and regulatory requirements. • Provision of an irrevocable letter of credit, performance bond or other financial instrument to serve as security in the amount of $25,000 • The inclusion of revenues collected from high -speed cable modem or cable Internet service in the definition of "Gross Revenues" should these services be re- classified by the FCC from an "information service" to a "cable service ". The significance would be to ensure that these revenues are included for purposes of calculating the franchise fee payable to the Village in the event the FCC allows. • Guidelines and timetables concerning new system construction. • System design and installation standards, including time limits on burying service drops and cable • Customer service standards concerning telephone inquiries and assistance, bill payment, installations, subscriber credit for outages, continuity of service, etc. • Establishment of a franchise fee in the amount of 5% of gross revenues • The provision of at least three specially designated, non- commercial public, educational and governmental (PEG) access channels. The flexibility to expand services and facilities to receive educational and/or governmental access programming. • Notice and hearing provisions for franchise violations. The franchise agreement sets forth the specific terms and conditions of an individual franchise holder (in this case, Comcast Cablevision of Illinois, Inc.), and key provisions include • The granting of a non - exclusive right to construct, operate, maintain and extend its cable system, and to use and occupy the public ways of the Village for these purposes. • A franchise term of 10 years • Payment of a franchise fee in the amount of 5% of gross revenues (the existing agreement calls for a fee in the amount of 1 %) VILLAGE OF OAK BROOK Minutes Page 9 of 15 April 22, 2003 8. B. 2) • Provision of one free standard installation of basic service to Village facilities and all public and private schools in the Village • System design standards including a minimum number of channels (100), backup power, periodic testing and compliance with FCC standards • Installation standards including time frames for burying service drops and cable. • Customer service standards including annual notification of prices, services, options and policies; billing; telephone service, installation, outages and service calls. • A listing of franchise violations, hearing and notice provision, and the damages to be assessed in the event that violations are deemed to have occurred }' Dr. Barry Orton, representing the Village, and a representative from Comcast was in attendance of the meeting Dr Orton addressed the Board with the options the Village may have to address the terms of the franchise agreement between the Village and Comcast. President Bushy mentioned that Comcast is a mayor tenant in a building she owns Motion by Trustee Savino, seconded by Trustee Caleel, that the Village Board adopt Ordinance 2003 -CB -G -718, "An Ordinance Providing for the Franchising and Regulation of Cable Television Systems in the Village of Oak Brook, Illinois " ROLL CALL VOTE. Ayes: 6 - Trustees Aktipis, Caleel, Craig, Konn, Miologos and Savino Nays • 0 - None Absent: 0 - None. Motion carried Motion by Trustee Savino, seconded by Trustee Aktipis, to approve Ordinance 2003- AG- CB -EXl -S -1035, "An Ordinance Approving a Non - Exclusive Cable Television Franchise Agreement and Authorizing the Execution Thereof " ROLL CALL VOTE - Ayes. 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino Nays. 0 - None Absent 0 - None Motion carried VILLAGE OF OAK BROOK Minutes Page 10 of 15 April 22, 2003 �_6 �, j OF OAk G� P d `' 90 � 0 A G � A � 9CF CO U April 25, 2003 Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 -2255 Website Mr Carlo F Cavallaro www oak- brook.org Director of Franchising and Government Affairs Administration COMCAST 630 990 3000 FAX 630 990 0876 2001 York Road - Suite 200 Oak Brook, IL 60523 Community Development 630 990 3045 RE: 1 ) roviin Ordinance G -718 Pdg for the Franchising & Regulation of FAX 630 990 3985 Cable Television Systems in the Village of Oak Brook, and 2) Ordinance S -1035 Approving a Non - Exclusive Cable Television Engineering Franchise Agreement and Authorizing the Execution Thereof Department 630 990 3010 FAX 630 990 3985 Dear Mr Cavallaro- Fire Department 630 990 3040 Enclosed are copies of the above - mentioned Ordinances and two originals of the FAX 630 990 2392 Non - Exclusive Cable Television Franchise Agreement by and Between Comcast Cablevision of Illinois, Inc. and the Village of Oak Brook (Exhibit A to Ordinance Police Department S -1035) 630 990 2358 FAX 630 990 7484 Please execute both Agreements and return one original to my attention for our Public Works files If you have any questions, please contact me. Department 630 990 3044 FAX 630 472 0223 Sincerely, Oak Brook Public Library Richard B Boehm 600 Oak Brook Road Village Manager Oak Brook, IL 60523 -2200 630 990 2222 FAX 630 990 4509 RBB/mr' cabletvagreements Oak Brook Sports Core Enclosures (4) Bath & Tennis Club 700 Oak Brook Road cc Sharon Douglas, Manager of Government Affairs, Comcast Oak Brook, IL 60523 -4600 Michael A Crotty, Assistant Village Manager 630 990 3020 FAX 630 990 1002 Richard A Martens, Village Attorney Darrell J Langlois, Finance Director Golf Club 2606 Yoik Road Oak Brook, IL 60523 -4602 630 990 3032 FAX 630 990 0245 �, j May 13, 2003 Mr. Richard B. Boehm Village Manager Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Dear Mr. Boehm: Enclosed please f ind Ordinance G -718 and Ordinance 5 -1035 regarding the Non - Exclusive Cable Television Franchise Agreement by and between Comcast Cablevision of Illinois, Inc. and the Village of Oak Brook. As requested, we have executed both documents. Any question, please do not hesitate to contact us. Sincerely, Sharon L. Pearson Executive Assistant /slp Enclosure cc: Sharon Douglass, Manager s. w Comcast Cable Communications, Inc comicast 1500 McConnor Parkway, Suite 200 Schaumburg, IL 60173 Tel 847 585 6345 Fax 847 240 2626 May 13, 2003 Mr. Richard B. Boehm Village Manager Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Dear Mr. Boehm: Enclosed please f ind Ordinance G -718 and Ordinance 5 -1035 regarding the Non - Exclusive Cable Television Franchise Agreement by and between Comcast Cablevision of Illinois, Inc. and the Village of Oak Brook. As requested, we have executed both documents. Any question, please do not hesitate to contact us. Sincerely, Sharon L. Pearson Executive Assistant /slp Enclosure cc: Sharon Douglass, Manager s. w si ORDINANCE 2003- AG- CB- EXl -S- 1035 AN ORDINANCE APPROVING A NON- EXCLUSIVE CABLE TELEVISION FRANCHISE AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF WHEREAS, on or about May 26, 1987, the Village Board passed an ordinance approving a cable telecommunications franchise agreement with Continental Cablevision of Cook County, Inc.; and WHEREAS, the Grantee of that Franchise has passed to a number of entities since 1987 and is currently held by Comcast of Illinois VI, Inc., ( "Comcast "); and WHEREAS, the Franchise Agreement entered into in 1987 has passed its expiration date, but by agreement of the parties, has been extended to June, 2003; and WHEREAS, Comcast has requested a renewal of its cable television franchise to provide cable television service in the Village; and WHEREAS, the Village has afforded the public an opportunity for comment on the proposed terms of the franchise renewal; and WHEREAS, the Village of Oak Brook has determined that it is in the public interests to renew the grant of a non - exclusive cable television Franchise to Comcast in accordance with the terms set forth in the attached Agreement; and WHEREAS, the Village has adopted a Cable Television Franchise Ordinance, Ordinance No. G -718 , on April 22, 2003, which authorizes the Village to issue cable television franchises to operate a cable system in the Village and to renew any existing cable television franchises for cable systems currently operating in the Village; and WHEREAS, Comcast and the Village have reached agreement on the franchise terms and conditions herein set forth; and WHEREAS, Comcast has agreed to be bound by the terms of the attached Franchise Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DUPAGE AND COOK COUNTIES, ILLINOIS, as follows: Section 1: That the provisions of the preamble hereinabove set forth are hereby adopted as though fully set forth herein. Section 2: That the Agreement entitled "Non- Exclusive Cable Television Franchise Agreement By And Between Comcast Cablevision Of Illinois, Inc And The Village Of Oak Brook, Illinois', which is attached hereto as Exhibit "A" and made a part hereof, is hereby approved. Section 3: That the Village President and village Clerk are hereby authorized and directed to execute said document by and on behalf of the Village of Oak Brook. Section 4: That this ordinance shall be in full force and effect from and after passage and approval pursuant to law. Ordinance 2003- AG- CB -EX1 -S -1035 Approving Cable TV Franchise Page 2 PASSED THIS 22nd day of April , 2003. Ayes: Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino Nays: None Absent: None Abstain: Nnn APPROVED THIS 22nd day of April , 2003. Village Attorney Published Date Not Published WORDDOC/S -ORDS /Cable Tv approve of d 2 Or Paper