03-154 Resolution No. 03-154
RESOLUTION
AUTHORIZING EXECUTION OF A FRANCHISE EXTENSION AGREEMENT WITH
COMCAST OF ILLINOIS/WEST VIRGINIA, LLC
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that David M. Dorgan, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to execute a
Franchise Extension Agreement on behalf of the City of Elgin with
Comcast of Illinois/West Virginia, LLC to extend the term of the
franchise to October 24 , 2003 , a copy of which is attached hereto
and made a part hereof by reference .
s/Ed Schock
Ed Schock, Mayor
Presented: May 28 , 2003
Adopted: May 28 , 2003
Vote : Yeas : 6 Nays : 0
Attest :
s/Dolonna Mecum
Dolonna Mecum, City Clerk
FRANCHISE EXTENSION AGREEMENT
The undersigned duly authorized agents of the City of Elgin, an Illinois municipal corporation
(the "City"), and Comcast of Illinois/West Virginia, LLC, including its successors and assigns
(the "Franchisee"), having the authority to make the representations and agreement contained
herein, do hereby stipulate and agree as follows:
1. A cable television franchise was granted by the City to Consolidated Cable Utilities, Inc.
pursuant to Ordinance No. S-935 (the "Franchise"), as amended by Ordinance No. S6-84,
which among other things transferred the Franchise to Centel Cable Television Com-
pany of Illinois, and as further amended by Ordinance No. S5-94, providing for the con-
struction, operation and maintenance of an institutional cable network in the City. By
Resolution adopted 27 September 1989 (the "Resolution"), the City authorized the trans-
fer of the Franchise to Jones Intercable, Inc. ("Jones") or to any affiliate of Jones, as that
term is defined in the 27 September 1989 Resolution. By notice provided to the City
dated 19 December 1989,Jones transferred the Franchise to Cable TV Fund 15-A, Ltd., an
affiliate of Jones. The Franchise expired on or about 9 December 1999, and on 25 Sep-
tember 1999, the City and Cable TV Fund 15-A, Ltd. extended the term of the Franchise
until 9 December 2002. The City, pursuant to Resolution No. 99-27, consented to the
transfer of the Franchise by Cable TV Fund 15-A, Ltd. to TCI of West Virginia, Inc. on 27
January 1999. And by notice on 31 July 2001, the City was advised that TCI of West Vir-
ginia, Inc. a subsidiary of AT&T Broadband, LLC, was transferred to another subsidiary
of AT&T, AT&T Broadband of West Virginia, LLC. AT&T Broadband of West Virginia,
LLC has since transferred its interest in the Franchise to Comcast of Illinois/West Vir-
ginia, LLC. The current Franchisee is Comcast of Illinois/West Virginia, LLC.
2. The City and Franchisee have been engaged in informal renewal negotiations in accor-
dance with Section 626(h) of Title VI of the Communications Act of 1934, as amended (47
USC 521, et seq.). The amount of time required to conclude negotiations and allow for
public review will extend beyond the 9 December 2002 franchise expiration date and 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. The City and Franchisee agreed
to extend the term of the Franchise until 9 June 2003 pursuant to a Franchise Extension
Agreement dated 4 December 2002, however, additional time will be required to con-
clude negotiations and allow for public review. The City and Franchisee desire to and do
hereby agree to extend the term of the Franchise until 24 October 2003.
3. During the extension period, the City and Franchisee shall work together in good faith
and diligently continue their informal Franchise renewal negotiations pursuant to the
procedures contained in Section 626 of Title VI of the Communications Act of 1934, as
amended (47 USC 521, et seq.).
4. Notwithstanding the foregoing, by entering into this Agreement, the City and Franchi-
see continue to reserve all rights under Title VI of the Communications Act of 1934, as
amended, and do not waive any rights related thereto.
The undersigned hereby agree to an extension of the Franchise under the terms and subject to
the stipulations as set forth above.
Dated this AJO day of u N 6 , 2003.
City of Elgin Comcast of Illinois/W•st Virginia, LLC
4' By:
City Manager i /
ATTEST:
011, 0
City Clerk
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o�`{ � City of Elgin Agenda Item No.
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TO: Mayor and Members of the City Council
FINANCIALLY STABLE
IENE SERVICES
EF FIC TENT SERVIC ES.
AND DUALITY INFRASTRUCTURE
FROM: David M. Dorgan, City Manager 1 `
`Ferri Folarin, Assistant City anager
Sean R. Stegall, Assistant City Manager
SUBJECT: Extension of the Franchise Agreement with Comcast,
Inc .
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider an
extension of the franchise agreement by and between the City of
Elgin and Comcast, Inc .
BACKGROUND
The City has begun preliminary discussions with AT&T Broadband
regarding the renewal of the cable franchise that expires on
December 9, 2002 . During this time, and over the past several
years, issues relating to the renewal process have become
increasingly complex due to the customer service performance of
AT&T, the technical aspects of Elgin' s aging cable
infrastructure, and the lack of cable internet services . Due to
the aforementioned, the City retained the services of Stuart
Chapman of Municipal Services Associates, Inc . , (MSA) . Along
with Mr. Chapman, Assistant City Manager Stegall and Assistant
Corporation Counsel Kozal have been working on the renewal
process .
The City and Franchisee agreed to extend the term of the
Franchise until 9 June 2003 , however, additional time will be
required to conclude negotiations and allow for public review.
The City and Franchisee desire to extend the term of the
Franchise until 24 October 2003 . This will give the City and
Comcast the appropriate amount of time to come to a resolution
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r- Cable Franchise Professional Services
May 23 , 2003
Page 2
on several complex topics, such as customer service, local
programming and the replacement of the current cable plant .
GROUPS/INTERESTED PERSONS CONTACTED
The City has worked very closely with several neighborhood
groups and other units of governments to discuss concerns
regarding local programming. Furthermore, two (2) public
hearings have been held regarding the matter.
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9
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"(FINANC IMPACT
The 2003 Budget includes $465, 000 (account number 010-0000-
604 . 03-13) in franchise fees from Comcast . It is estimated that
the entire 2003 budget amount will be collected by the end of
the year. The 2002 actual amount received totaled $475, 818 .
Extending the franchise agreement for the additional six months
should have no adverse effect on the franchise fees budgeted in
the next year.
47 v a
EGAL IMPACT
A renewal agreement with AT&T extending the term an additional
four (4) months will need to be prepared.
ALTERNATIVES
1 . To not extend the contract and enter into Comcast' s
proposed agreement which is, at this point , inadequate.
RECOMMENDATION
It is recommended that the City Council authorize a four (4)
additional month extension of the current agreement by and
between the City and AT&T Broadband.
Respectfully submitted for City Council consideration.
Attachment
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