S-1374 - 07/09/2013 - COMCAST - Ordinances Supporting DocumentsI'1EM 11 BA)
Iw : oil J�I
AGENDA ITEM
Regular Board of Trustees Meeting
of
July 9, 2013
SUBJECT: Award of Contract - Cable Television Franchise Agreement Renewal
FROM: Blaine Wing, Assistant Village Manager
Jim Fox, Assistant Information Technology Director
BUDGET SOURCE/BUDGET IMPACT: NA
RECOMMENDED MOTION: I move that the Village Board adopt the attached Cable
Television Franchise Ordinance granting to Comcast of Illinois VI, LLC a non - exclusive
franchise to provide cable services in the Village and authorizing the execution of a
franchise agreement with Comcast of Illinois VI, LLC to govern the franchise.
Background/History:
Over the past several years the Metropolitan Mayors Caucus (in partnership with the DuPage
Mayors and Managers Conference) negotiated a template franchise agreement with Comcast in
an effort to conserve time and resources for both municipalities and Comcast. Attached is the
model document that was customized for the Village of Oak Brook. In February, staff began
talking with Comcast and eventually met with Comcast to walk through the entire agreement.
In March, Oak Brook informed Comcast of our desire to perform an audit of franchise fee
payments due from Comcast to Oak Brook. The appropriate non - disclosure agreements have
been signed and Comcast is working with the Village to ensure the Village obtains the correct
franchise fee payments. With the current Oak Brook franchise agreement expired as of April 21,
2013, staff is recommending the Village Board renew Comcast's franchise for a ten (10) year
term and authorize the attached franchise agreement to govern the franchise, effective April 21.
Besides the provisions that are outlined stating what Comcast will provide, Comcast agrees to
pay to the Village a Franchise Fee in an amount equal to five percent (5 %) of annual Gross
Revenues received from the operation of the Cable System to provide Cable Service in the
Franchise Area; noting that at the present time, the Cable Act limits the. Village to collection of a
Cl r'}
maximum permissible Franchise Fee of five percent (5 %) of Gross Revenues. However, in the
event that a change in the Cable Act would allow the Village to increase the Franchise Fee above
five percent (5 %), the agreement states that the Village shall hold a public hearing and determine
if the Village should collect the additional amount.
The franchise agreement sets forth the specific terms and conditions of an individual franchise
holder (in this case, Comcast of Illinois VI, LLC.), 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.
• Provision of one (1) free standard installation of basic service to Village facilities and all
public and private schools in the Village.
• 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.
Recommendation:
Staff recommends that the Village Board adopt the attached Cable Television Franchise
Ordinance and authorize the execution of the franchise agreement with Comcast of Illinois
VI, LLC, with an effective date of April 21, 2013, pending final staff and attorney review.
ORDINANCE 2013- COMCAST - FRNCHS- AG -EX -S -1374
AN ORDINANCE GRANTING A CABLE TELEVISION FRANCHISE TO
COMCAST OF ILLINOIS VI, LLC
WHEREAS, Comcast of Illinois VI, LLC ( "Comcast ") applied to the Village for the renewal of a
franchise to provide cable television services within the Village; and
WHEREAS, public comment has been received on the proposed franchise renewal pursuant to
federal law; and
WHEREAS, representatives of the Village and Comcast have engaged in negotiations regarding
the terms and conditions of the renewal of the franchise and have presented a proposed cable television
franchise agreement ( "Franchise Agreement") for consideration; and
WHEREAS, the Village President and Board of Trustees has determined that it is necessary,
desirable, and in the best interest of the Village to award a franchise to Comcast for the provision of
Cable Services, as defined in the Franchise Agreement, within the Village, subject to the terms and
conditions of the Franchise Agreement;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Ordinance as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Grant of Franchise. A non - exclusive franchise is hereby granted to Comcast to
provide Cable Services within the Village for a term of 10 years from the effective date of the Franchise
Agreement, subject to the terms and conditions of the Franchise Agreement, a copy of which attached to
and, by this reference, made a part of this Ordinance as Exhibit A.
Section 3: Execution of Agreement. The Village President and the City Clerk shall be, and
they are hereby, authorized and directed to execute and seal, on behalf of the Village, the Franchise
Agreement in substantially the form attached to this Ordinance as Exhibits A.
Section 4: Prior Franchise. Upon full execution of the Franchise Agreement pursuant to this
Ordinance, the original franchise, granted to Comcast's predecessor -in- interest, shall be considered at an
end and shall no longer be in effect except for those terms that survive the termination of that Franchise
Agreement.
Section 5: Repeal of Ordinance 2003 -CB -G -718. Village Ordinance 2003 -CB -G -718 shall
be, and is hereby, repealed in its entirety, and shall have no force or effect from and after the effective
date of this Ordinance.
Section 6: Effective Date. This Ordinance shall be in full force and effect from and after its
passage, approval, and publication in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
APPROVED THIS gth day of July, 2013
PASSED THIS g'h day of July, 2013
Ayes:
Ordinance 2013- COMCAST- FRNCHS- AG -EX -S -1374
Ordinance Granting A Cable Franchise to Comcast
Page 2 of 3
Gopal G. Lalmalani
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk
Ordinance 2013- COMCAST - FRNCHS- AG -EX -S -1374
Ordinance Granting A Cable Franchise to Comcast
Page 3 of 3
EXHIBIT A
NOTICE OF PUBLIC g
HEARING ALOF CABLED
TELEVISION FRANCHISE
AGREEMENT
PUBLIC NOTICE is
hereby given that a public
hearing shall be conducted
7:00 Tuesday,es of the e th Board CERTIFICATE OF PUBLICATION
of Trustees of t Village of
Oak Brook, DuPage and
Cook Counties,Illinois on a
proposed agreement to re-
Paddock Publications,Inc.
new the cable television
n Dallyileiald
franchise between the Vil-
lage and Comcast of Illinois
VI,LLC The'proposedfran-
chise agreement has been in
negotiation between the Vii=
loge and Comcast and ad-
dresses a Variety of issues,
including, without limita- Corporation organized and existing under and by virtue of the laws of
Lion,the use of public rights-
of-way,the payment of fran- the State of Illinois,DOES HEREBY CERTIFY that it is the publisher
chise fees, programming
services, customer service
requirements, and public, of the DAILY HERALD.That said DAILY HERALD is a secular
educational .and hearing newspaper and has been circulated daily in the Village(s)of
mental access.This hearing y
provides the public with an
opportunity to comment be- Addison,Bensenville,Bloomingdale,Carol Stream,Glendale Heights,
fore the agreement is pre-
sented for final action by the Glen Ellyn,Itasca,Keeneyville,Lisle, Lombard,Medinah,Naperville,
Board of Trustees.
The public hearing shall Oak Brook,Oakbrook Terrace,Roselle,Villa Park,Warrenville,
be held in the in the Board
Room oCenterUtl12000 Oak West Chicago,Wheaton,Winfield,Wood Dale,Aurora
Brook Road,Oak Brook, iii-
nois..A copy of the proposed
cable television franchise
agreement Will be available
for inspection at the front
counter of the Butler
Government Center, which
proposed agreement is sub-
ject to further revision.
The Board of Trustees will
hear public comments on
the proposed cable televi-
sion franchise agreement
from all persons Interested
in being heard. After the
close of the hearing, the
Board of Trustees will direct
such further activities as
may be appropriate, and
will consider final action on
the agreement at the July 9,
2013 Board meeting or a fu-
ture meeting.
Date:June 28,2013
Respectfully submitted,
/5/David Niemeyer
Village Manager
Published in Daily Herald
June 29,2013(4344720) County(ies)of DuPage
and State of Illinois,continuously for more than one year prior to the
date of the first publication of the notice hereinafter referred to and is of
general circulation throughout said Village(s), County(ies)and State.
I further certify that the DAILY HERALD is a newspaper as defined in
"an Act to revise the law in relation to notices" as amended in 1992
Illinois Compiled Statutes,Chapter 7150,Act 5,Section 1 and 5.That a
notice of which the annexed printed slip is a true copy,was published
June 29,2013 in said DAILY HERALD.
IN WITNESS WHEREOF,the undersigned,the said PADDOCK
PUBLICATIONS,Inc.,has caused this certificate to be signed by,this
authorized agent,at Arlington Heights,Illinois.
PADDOCK PUBLICATIONS,INC.
DAILY HERALD NEWSPAPERS
BY ''
Authorized Agent
Control#4344720