G-718 - 04/22/2003 - CABLE TV - Ordinances Supporting Documentsi
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VILLAGE OF OAK BROOK
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Village Board Transmittal Memorandum
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DATE: April 15, 2003
SUBJECT: Cable Television Franchise Ordinance and Franchise Agreement
FROM: Michael A. Crotty, Assistant Village Manager *l "�
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 9/�_
• 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 I%).
• 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
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Cable Franchise Renewal Ordinance doc
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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 22nd 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 Actions 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
& ORD 2003 -AG-
THE FRANCHISING AND REGULATION OF CABLE TELEVISION CB- Exi -S- , CBL TV
SYSTEMS IN THE VILLAGE OF OAK BROOK, ILLINOIS " FRNCHS
2) ORDINANCE 2003- AG- CB -EXI -S -1035, "AN ORDINANCE ORD 03- AG- CB -EX1-
S -1035 , APRV 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
R00-
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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 I%)
VILLAGE OF OAK BROOK Minutes Page 9 of 15 April 22, 2003
No
a- i
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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 -EXI -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, Konn, Miologos and
Savino.
Nays 0 - None.
Absent 0 -None Motion carried
VILLAGE OF OAK BROOK Minutes Page 10 of 15 April 22, 2003
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Village of
Oak Brook
1200 Oak Brook Road
Oak Brook, IL 60523 -2255
Website
www oak - brook.org
Administration
630 990 3000
FAX 630 990 0876
Community
Development
630 990 3045
FAX 630 990 3985
Engineering
Department
630 990 3010
FAX 630 990 3985
Fire Department
630 990 3040
FAX 630 990 2392
Police Department
630 990 2358
FAX 630 990 7484
Public Works
Department
630 990 3044
FAX 630 472 0223
Oak Brook
Public Library
600 Oak Brook Road
Oak Brook, IL 60523 -2200
630 990 2222
FAX 630 990 4509
Oak Brook Sports Core
Bath & Tennis Club
700 Oak Brook Road
Oak Brook, IL 60523 -4600
630 990 3020
FAX 630 990 1002
Golf Club
2606 Yoik Road
Oak Brook, IL 60523 -4602
630 990 3032
FAX 630 990 0245
April 25, 2003
Mr. Carlo F. Cavallaro
Director of Franchising and Government Affairs
COMCAST
2001 York Road - Suite 200
Oak Brook, IL, 60523
RE. 1) Ordinance G -718 Providing for the Franchising & Regulation of
Cable Television Systems in the Village of Oak Brook, and
2) Ordinance S -1035 Approving a Non - Exclusive Cable Television
Franchise Agreement and Authorizing the Execution Thereof
Dear Mr. Cavallaro:
Enclosed are copies of the above - mentioned Ordinances and two originals of the
Non - Exclusive Cable Television Franchise Agreement by and Between Comcast
Cablevision of Illinois, Inc and the Village of Oak Brook (Exhibit A to Ordinance
S -1035)
Please execute both Agreements and return one original to my attention for our
files If you have any questions, please contact me.
Sincerely,
Richard B Boehm
Village Manager
RBB/mr' cabletvagreements
Enclosures (4)
cc Sharon Douglas, Manager of Government Affairs, Comcast
Michael A Crotty, Assistant Village Manager
Richard A Martens, Village Attorney
Darrell J Langlois, Finance Director
•
Comcast
May 13 , 2003
Mr. Richard B. Boehm
Village Manager
Village of Oak Brook
1200 Oak Brook Road
Oak Brook, IL 60523
Dear Mr. Boehm:
Comcast Cable Communications, Inc
1500 McConnor Parkway, Suite 200
Schaumburg, IL 60173
Tel 847 585 6345
Fax 847 240 2626
Enclosed please find 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
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Enclosure
cc: Sharon Douglass, Manager
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