S-1017 - 05/14/2002 - AGREEMENT - Ordinances Supporting Documents-VILLAGE OF OAK BROOK
DATE: May 10, 2002
Village Board Transmittal Memorandum
SUBJECT: Extension of Cable Television Franchise Agreement -
FROM: Michael A. Cro tty, e
, Assistant Village Mana r ' �/'vt
g g
F. FA
RECOMMENDATION: That the Village Board adopt an ordinance extending the term of the
cable television franchise agreement between the Village of Oak Brook and AT &T Broadband
for a period of one year to expire June 8, 2003.
The existing cable television franchise agreement between the Village and AT &T Broadband is set to
expire on June 8, 2002. Staff has been working with a consultant to draft a new cable television
ordinance that will provide the framework for negotiating the new agreement. The draft ordinance is
under final review, and once it is complete, we will share it with representatives from AT &T
Broadband for their reaction, and then bring the ordinance to the Village Board for consideration.
Once the ordinance is in place, franchise renewal negotiations can begin.
Earlier this year, you became aware of the consolidation of AT &T Broadband and Comcast
Corporation, which would result in the transferring of control of the cable television franchise to a new
entity called AT &T- Comcast. Through the Metropolitan Mayors Caucus, the affected franchising
agencies (including Oak Brook) enlisted Dr. Barry Orton & Municipal Services Associates, Inc. to
conduct the due diligence review of the new entity's technical, financial and legal qualifications. That
process is pursuant to FCC guidelines and regulations, and is well underway. Incidentally, Dr. Orton is
the same consultant that the Village has enlisted to assist with the negotiation of the new franchise
agreement.
During the past 6 to 8 months, the representatives from AT &T Broadband who will be responsible for
negotiating the terms of the new franchise agreement with the Village have been occupied with
activities necessary as a result of the transfer of control and due diligence review. This has prevented
significant negotiation to proceed with any of the franchising agencies whose agreements are set to
expire. As such, staff recommends the adoption of the attached ordinance that would extend the
expiration of the existing agreement for a period of one year (or until June 8, 2003) Both AT &T
Broadband representatives and the Village's consultant are confident that this will be sufficient time to
conclude negotiations, hold the requisite public hearing, and ensure that a new agreement is in place.
/mac
Cable Franchise Extension doc
S. A. 2) POLICE PENSION FUND BOARD
President Bushy recommended the following
confirmation:
Police Pension Fund Board (2 Year Term,)
appointment for
Re- appointment of Alan J. Feldman (term expires 5/14/02) to the Police
Pension Fund Board, with his term expiring May 11, 2004.
Motion by Trustee Korin, seconded by Trustee Caleel, to concur with
the recommendation of President Bushy to re- appoint Alan J. Feldman
to the Police Pension Fund Board, with his term expiring May 11, 2004.
VOICE VOTE: Motion carried.
3) BOARD OF FIRE AND POLICE COMMISSIONERS
President Bushy recommended the following appointment for
confirmation:
Board of Fire & Police Commissioners (3 Year Term)
Re- appointment of John G. Baar (term expires 5/2002) to the Board of
Fire & Police Commissioners, with his term expiring May, 2005.
Motion by Trustee Korin, seconded by Trustee Caleel, to concur with
the recommendation of President Bushy to re- appoint John G. Baar to
the Board of Fire & Police Commissioners, with his term expiring May
2005. VOICE VOTE: Motion carried.
B. ORDINANCES & RESOLUTIONS:
POL PENS FUND BD
BRD OF FIRE & POL
COMMISSIONERS
1) ORDINANCE 2002 -CB-AG -S -1017, "AN ORDINANCE AMENDING ORD o2- CB -AG -S-
ORDINANCE S -607, AN ORDINANCE APPROVING A CABLE FRA CH AGREE
TELECONPAUNICATIONS FRANCHISE AGREEMENT AND
AUTHORIZING THE EXECUTION THEREOF"
The existing cable television franchise agreement between the Village
and AT &T Broadband will expire on June 8, 2002. Staff has been
working with a consultant to draft a new cable television ordinance that
will provide the framework for negotiating the new agreement. The
draft ordinance is under final review, and once it is complete, it will be
shared with representatives from AT &T Broadband for their reaction,
and then the ordinance will be brought to the Village Board for
consideration. Once the ordinance is in place, franchise renewal
negotiations can begin.
VILLAGE OF OAK BROOK Minutes
lb
Page 6 of 15 May 14, 2002
8. B. 1) The proposed consolidation of AT &T Broadband and Comcast
Corporation would result in the transfer of control of the cable television
franchise to a new entity called AT &T- Comcast. Through the
Metropolitan Mayors Caucus, the affected franchising agencies
(including Oak Brook) enlisted Dr. Barry Orton & Municipal Services
Associates, Inc. to conduct the due diligence review of the-new entity's
technical, financial and legal qualifications. That process is pursuant to
FCC guidelines and regulations, and is well underway. Incidentally, Dr.
Orton is the same consultant that the Village has enlisted to assist with
the negotiation of the new franchise agreement.
During the past 6 to 8 months, the representatives from AT &T
Broadband who will be responsible for negotiating the terms of the new
franchise agreement with the Village have been occupied with activities
necessary as a result of the transfer of control and due diligence review.
This has prevented significant negotiation to proceed with any of the
franchising agencies whose agreements are set to expire. As such, staff
recommends the adoption of the ordinance that would extend the
expiration of the existing agreement for a period of one year (or until
June 8, 2003). Both AT &T Broadband representatives and the Village's
consultant are confident that this will be sufficient time to conclude
negotiations, hold the requisite public hearing, and ensure that a new
agreement is in place.
Before the vote was taken, President Bushy stated that she wanted it
known that AT &T is a major tenant in a building that she owns.
Motion by Trustee Caleel, seconded by Trustee Miologos, to pass
Ordinance 2002- CB -AG -S -1017, "An Ordinance Amending Ordinance
S -607, An Ordinance Approving A Cable Telecommunications
Franchise Agreement and Authorizing the Execution Thereof." ROLL
CALL VOTE:
Ayes: 4 - Trustees Caleel, Craig, Korin and Miologos.
Nays: 0 - None.
Absent: 1 - Trustee Savino. Motion carried.
2) RESOLUTION 2002 -AG -EXI -R -807 "A RESOLUTION
AUTHORIZING EXECUTION OF A FIRST SUPPLEMENTAL
AGREEMENT BETWEEN THE VILLAGE OF OAK BROOK AND
THE DUPAGE FOREST PRESERVE DISTRICT CONCERNING
THE ESTABLISHMENT OF THE SALT CREEK GREENWAY
TRAIL AND THE PERFORMANCE OF PHASE II ENGINEERING
SERVICES"
VILLAGE OF OAK BROOK Minutes
FtA
Page 7 of 15 May 14, 2002
RES 02-AG- EXI -R-
807 SUPP AGR -
DPG FOR PRES DIS
- SLT CRK GRNWY
TRL
i'
Pi
4
ORDINANCE 2002- CB -AG -S- 1017
AN ORDINANCE AMENDING ORDINANCE S -607,
AN ORDINANCE APPROVING A
CABLE TELECOMMUNICATIONS FRANCHISE AGREEMENT
AND AUTHORIZING THE EXECUTION THEREOF
WHEREAS, on May 26, 1987 the corporate authorities of the Village of Oak Brook passed and
approved Ordinance S -607, "An Ordinance Approving A Cable Telecommunications Franchise Agreement
And Authorizing The Execution Thereof"; and
WHEREAS, MediaOne of Northern Illinois, Inc., operating and marketing services as AT &T
Broadband, ( "AT &T Broadband ") currently holds that cable franchise with Oak Brook ( "Village "), granted
by Ordinance S -607 ( "Franchise "), on June 8, 1987; and
WHEREAS, AT &T Broadband's franchise with the Village is scheduled to expire on June 8, 2002;
and
WHEREAS, MediaOne and the Village have been engaged in informal renewal negotiations in
accordance with Section 626(h) of Title VI of the Communications Act of 1934, as amended; and
WHEREAS, the amount of time required to conclude negotiations and allow for public review will
extend beyond the initial expiration date; and
WHEREAS, it is in the public interest to extend the current franchise for an additional period of
time so that cable service to the public will not be interrupted; and
WHEREAS, each party reserves their rights under the Cable Act with regard to their right to renew
the cable television franchise including, but not limited to, their specific right under Section 626(h) of Title
VI of the Communications Act of 1934, as amended, which provides for the right to proceed under the
formal renewal process when and if either party chooses to do so; and
WHEREAS, the corporate authorities of the Village of Oak Brook deem the passage of this
ordinance to be in the best interest and in furtherance of the general welfare of the Village of Oak Brook;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE 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 • That Section III of the Cable Telecommunications Franchise Agreement
entitled "Term of Franchise" executed on June 8, 1987 be extended one additional year until
June 8, 2003.
Section 3: That all other provisions of the said Cable Telecommunications Franchise Agreement
shall remain the same;
Section 4: That this ordinance shall be in full force and effect from and after passage and
approval pursuant to law.
PASSED THIS 14th day of May, 2002.
Ayes: Trustee Caleel, Craig, Korin and Miologos
Nays: None
Absent: Trustee Savino
Abstain: None
APPROVED THIS 14th day of May, 2002.
Appr d as to Form:
Village Attorney
Ordinance 2002- CB -AG -S- 1017
Cable Agreement Extension
of Time, Page 2
Village Presidemf
Published
Date
Not Published XX
Paper