HomeMy WebLinkAboutRes 35-93 08/17/1993 AF/
8/12/93
RESOLUTION NO. 35-93
A RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT
TO THE FRANCHISE AGREEMENT WITH TELENOIS, INC. TO PROVIDE
THE CABLE TELEVISION SERVICES IN THE VILLAGE OF MOUNT PROSPECT
WHEREAS, the Mayor and Board of Trustees of the Village of Mount Prospect did
authorize execution of a Franchise Agreement for providing Cable Television services
through passage of Resolution No. 27-81; and
WHEREAS, Chapter .6 of the Village Code of Mount Prospect governs the Franchise
Agreement required to operate Cable Television in the Village; and
WHEREAs, the Cable Television Franchise Agreement may be modified, from time to
time, as provided in Chapter 6 of the Village Code; and
WHEREAS, the Mayor and Board of Trustees of the Village of Mount Prospect have
determined that the best interest of the Village would be served by granting a modification
to the Franchise Agreement, a copy of said modification is attached hereto and hereby
made a part hereof as Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES
OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That the Mayor and Board of Trustees of the Village of Mount Prospect
do hereby authorize the execution of a modification to the Franchise Agreement between
the Village of Mount Prospect and Telenois, Inc. a copy of said modification is attached
t'iereto and hereby made a part hereof as Exhibit "A".
SECTION TWO.'. That this Resolution shall be in full force and effect from and after its
passage and approval in the manner provided by law.
AYES: Clowes, Hendricks, Hoefert, Skowron, Wilks
NAYS: None
ABSENT: Corcoran
PASSED and APPROVED this 17th day of August ,1993.
~-~'~eral~L Farley'
ATTEST: Mayor
Carol A. Fields
Village Clerk
AGREEMENT OF MODIFICATION AND AMENDMENT TO FRANCHIsEAGREEMENT
WHEREAS, Cablenet, Inc., by an Agreement dated August 1, 1981 ("Franchise
Agreement"), was granted a non-exclusive franchise for the occupation and use of the streets
of the Village of Mount Prospect ("Municipality") for the construction, operation, maintenance
and repair of a cable communications systems ("System") in accordance with the provisions
of the Franchise Agreement; and
WHEREAS, the franchise granted pursuant to the Franchise Agreement and all rights
and obligations of Cablenet, Inc. as franchisee under the Franchise Agreement were
transferred to Telenois, Inc. ("Franchisee") on April 21, 1987; and
WHEREAS, it is understood that the Franchisee is currently implementing and will
continue to implement an upgrade of the System via fiber optics as backbone as shown in
Exhibit A; and
WHEREAS, the Franchisee has requestee that the System channel capacity and
access channels required by the Franchise Agreement be reduced, and also requested
certain other modifications and amendments be made to its obligations under the Franchise
Agreement; and
WHEREAS, the Municipality, after careful consideration, has determined that certain
of the Franchisee's proposed modifications to the Franchise Agreement are appropriate, and
further determined that additional modifications and amendments to the Franchise Agreement
are appropriate at this time; and
WHEREAS, Section 32 of the Franchise Agreement and Article IV, Section 6.403 of
the Cable Communications Code authorizes such modifications and amendments; and
WHEREAS, the Municipality has determined that such modifications and amendments
to the Franchise Agi~eement are in the public interest and the parties have embodied those
promises, modifications and amendments in this Agreement of Modification and Amendment
of Franchise Agreement ("Modification Agreement"):
NOW, THEREFORE, in consideration of the foregoing, and the mutual promises and
covenants set forth, the parties hereto agree as follows:
1. Franchise Agreement Modifications
In order to effectuate the modifications to the Franchise Agreement requested by the
Franchisee, the additional modifications deemed necessary and appropriate by the
Municipality, the Franchise Agreement is hereby modified and amended in the following
respects.
SECTION 2: Definitions is amendee to add the following terms and definitions:
"Cable Act" - means the Cable Communications Policy Act of 1934 as amended by
the Cable Act of 1984 and the Cable Act of 1992.
Resolution No. 35-93
"Customer Service Standards', - means those quantitative goals and measures of
service quality and procedures applied by the municipality including, but not limited to, the
billing practices, phone service, repair service, and hours of operation, as outlined in Section
6.607.G, of the Cable Communications Code as amended from time to time.
"ModificatiOn Aqreement" - means the Agreement of Modification and Amendment to
the Franchise Agreement of August 1, 1981 entered into between the Municipality and the
Franchisee and made a part of this Franchise Agreement.
"Public, Educational and Government (PEG) Channels" - means those channels on
the Subscriber and Institutional Network dedicated pursuant to this Agreement to public,
educational, or governmental access use.
"Reconstruction" - means any and all repair, revision, or upgrade of a significant
portion (60% or more) of the System, within the Municipality, including any construction,
removal or installation associated with such revision, repair or upgrade.
"System" ~ is amended by the deletion of the reference to the city of Niles.
SECTION 4: Ri,qhts Reserved by the Municipality is amended to include additions to
subsection (h):
(h) Through its appropriately designated representatives; to inspect all construction,
reconstruction, or installation work performed subject to the provisions of this Franchise
Agreement and the Cable Communications Code and make such inspections as it shall find
necessary to ensure compliance with the terms of the franchise, the Cable Communications
Code, and other pertinent provisions of law.
SECTION 6: Territorial Extent of Franchise is amended by deletion of the current section
and substitution of the following language:
The Franchisee is authorized to operate throughout the entire territory, within the
corporate limits of the Municipality as the same now or in the future may exist. Pursuant to
Section 6.601 of the Cable Communications Code, the Primary Service Area shall consist
of all residential, commercial and industrial properties within corporate boundaries of the
Municipality existing on the date of the Modification Agreement. The Municipality specifically
retains the right to operate a cable system in the Municipality, pursuant to State and Federal
law, and the right to award franchises to others who qualify to offer and operate a cable
system in the Municipality.
SECTION 7: Line Extension Policy is amended by the addition of the following language:
(e) The Franchisee shall make cable service available to all persons or entities,
whether residential or commercial, within the Primary Service Area as that area is defined
pursuant to Section 6 hereof. Line extensions will be completed within the construction time
limits prescribed in Section 12 hereof.
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(f) TI. ,e~. JI extend and make cable service avail~ ;subscriber
within the Primary Service Area at the standard connection charge, provided that, if the
connection to any single subscriber requires an aerial or buried drop line in excess of
hundred and fifty feet (150'), measured from they subscriber's structure to the nearest trunk
or feeder cable, the Franchisee shall extend and make service to such subscriber at a
connection charge not to exceed the sum of the standard connection charge plus the actual
installation costs incurred by the Franchisee for the distance exceeding one hundred and fifty
feet (150') measured from the subscriber's structure to the nearest trunk or feeder cable.
(g) All easements, other than Utility Easements, constructed for cable television
service shall be recorded on Plats of Survey by the Franchisee as directed by the
Municipality.
SECTION 8: Description of System Design is amended by the deletion of the reference
of Niles in subsection (b).
This section is further amended by the deletion of the current subsection (c) and the
substitution of the following language:
(c) The Subscriber Network shall be capable of carrying at least 60 downstream video
channels (of 6 MHz each), based on a minimum bandwidth of 54-450 MHz for the trunk cable
and feeder system. The System shall also be capable of transmitting at least four (4)
upstream video channels of 6 MHz in the 5°30 MHz band. The secondary cable from the
previous dual line system shall be fully maintained as if it were an activated cable as required
by local, state, and federal law for a period of at least twelve (12) months.
Basic services on the Subscriber Network shall, at a minimum, be available without a
convertor or remote control necessary, or shall have a convertor and remote control provided
that will allow for stereo sound, VCR functions, and television features such as picture-in-
picture, etc.
This Section is further amended by the addition of the following language to the beginning
of subsection (e):
(e) On a biannual basis, a joint review by the Municipality and the Franchisee will
be held to determine the need and ability to expand channel capacity on the system. If such
a need is determined to exist, the Franchisee will provide channel capacity expansion
provided that the technology considered to be generally accepted in the industry at that time
would allow for expansion in a reasonably economic and efficient manner.
SECTION 9: Technical Performance Standards is amended by the deletion of the current
Section and the substitution of the following language:
(a) General. The Franchise shall construct, operate, maintain and test the System
in accordance with the technical performance standards set forth in this Agreement or with
all FCC standards, whichever are more stringent.
(b) Technical Parameters. The technical performance of the System, including the
Subscriber Network and the Institutional Network, shall, at all times, meet all standards
and/or guidelines of the Federal Communications Commission, all other applicable federal,
state, and community standards, and the standards set forth in this Section. The standards
in this Secti;. ,ca ~o all video, audio, and data signals wh, tied on the
System. The standards list the minimum performance for the "Worst Case" at the point
where service is delivered to the subscriber by the Franchisee; this point is usually the output
of a converter, modem, or similar interface device.
Two sets of standards are listed in the table that follows. The first set, in the column labeled
"Subscriber Network", apply to the performance of the distributiOn of all signals as received
or originated at the headend (or other remote reception location) and distributed downstream
on the Subscriber Network and delivered to the subscriber. The second set, in the column
labeled "Total System", apply to the performance of the distribution of all signals throughout
the System (i.e. both the Subscriber Network and the Institutional Network), including the
combined degradation effects of both upstream and downstream carriage; e.g., program
origination at an access studio or institution and distributed upstream to the headend where
it is interconnected to the Subscriber or Institutional Network and distributed downstream to
subscribers.
PARAMETER SUBSCRIBER NETWORK SYSTEM
Visual Carrier +0 dBmV +3 dBmV
Signal Level (at 100 ft. drop)
Audio Carrier 13 to 17 dB below 13 to 17 dB below
Signal Level Visual Carrier Visual Carrier
FM Band Carrier 13 to 17 dB below 13 to 17 dB below
Signal Level Visual Carrier Visual Carrier
Visual Carrier- 43 dB 43 dB
to-Noise Ratio
Visual Carrier- 47 dB 51 dB
to-Co-Channel
Visual Carrier 53 dB 51 dB
to Any Coherent
Disturbances,
including CTB
Low Frequency 3% or less 3% or less
Disturbances
(Hum Modulation)
Visual Carrier
Frequency &
Tolerance
Aural Carrier 4.5 Mhz _+ 5 Khz 4.5 Mhz _+ 5 Khz
Frequency & Above Video Carrier Above Video Carrier
Tolerance Frequency Frequency
PARAMETE 8SCRIBER NETWORK SYSTEr~,
Video Frequency 10 kHz to 4.2 Mhz: 10 kHz to 4.2 Mhz:
Response _+ 2 dB; _+ 2 dB;
Colorburst: 40 Colorburst: 40
_+ 4 IRE units + 4 IRE units
Peak-to-Valley N/10 + 3 NIl0 + 3
Response (across N = Number of Amplifiers
the spectrum)
Audio Frequency 50 Hz to 15 kHz: 50 Hz to 15 kHz:
Response + 3 dB _+ 3 dB
Audio Stereo System transparent System transparent
Transmission to transmission of to transmission of
FM broadcast and TV FM broadcast and TV
BTSC stereo audio BTSC stereo audio
Terminal to
Terminal 18 dB 18 dB
Isolation
Forward/Reverse 60 dB 60 dB
Plant Isolation
Signal Leakage FCC Standards: FCC Standards:
(CLI and Radiation (CLI and Radiation
Limits) Limits)
Channel Frequency FCC Standards/ FCC Standards/
Boundaries Guidelines Guidelines
(c) Testinq Requirements: The Franchisee shall conduct appropriate monitoring and
measurements utilizing appropriate measuring devices - including devices capable of
measuring signal leakage in microvolts/meter- to ensure that the System is performing within
the above standards at all times. When such monitoring or measurements indicate that
performance has fallen below these standards, corrective action shall be undertaken to
restore proper performance. All channels on the System shall be monitored daily by a visual
inspection of the picture and listening to the audio for general performance and audio level
balance.
At a minimum, measurements shall be made monthly at the headend and quarterly
at three randomly-selected, longest cascades in the community'to ensure that all channels
on the Subscriber and Institutional Networks are operating properly. Measurements of all
operational parameters shall be made, per FCC reg. 76.601, annually at the headend and
four geographically divided locations on all channels. Locations should be selected at the
ends of the longest cascades in four geographically separated areas in the community.
Specific locations are to be selected by the Franchisee, with the approval of the Municipality.
Written records of all performance measurements shall be maintained on file by the
Franchisee and shall be provided to the Municipality. In addition, the Franchisee shall enjoy
or have available to it, on a full-time basis, a professional engineer or equivalent, and a
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service and' ,e Jmpetent technicians, capable of main'~ System in
accordance with the technical performance and service requirements in this Agreement.
SECTION '10: Area Wide Interconnect of Cable Systems is amended by deletion of the
current Section, and substitution with the following language.
la) The Municipality may request that the Franchisee interconnect access channels
and/or local origination channels of it's System with other systems in the adjacent area, and
provide such channels to all schools, government buildings, and institutions designated by
the Municipality, as well as to additional access channels on the System as long as the
request does not result in a requirement to expand channel capacity.
lb) The Franchisee shall make a good faith effort to obtain agreements for the sharing
of interconnecting costs among all interconnecting companies. Upon finding that the
Franchisee has made a good faith effort, and has not been able to obtain a reasonable
interconnection agreement, or that the cost of the interconnection would cause an
unreasonable increase in subscriber rates, the Municipality may rescind it's request, or upon
determining the finding of the Franchisee is unreasonable, the Municipality may request
further study, or may enforce the request for interconnection.
lc) Once the interconnection agreement is reached, the Franchisee will work with the
Municipality to ensure that the interccnnection is completed in a timely manner.
(d) The provisions above shall not be construed so as to preclude cooperative effort,
joint ownership of facilities, or cost-sharing arrangements; provided however that each and
every aspect of construction and operation of the interconnect shall be clearly designated in
written agreement(s) between the cooperating parties.
(e) The Franchisee shall provide all modulators or signal processors necessary to
complete the program transmission or other program video sources from municipal, access,
and institutional facilities as designated by the Municipality.
SECTION 11: Channel Allocation is amended by the addition of the following language,
at the conclusion of the Section:
la) The Franchise shall, to the maximum extent possible, assign as dial locations for
local broadcast televisions stations carded on the System numbers which correspond to their
respective FCC*assigned TV station call numbers. Any PEG channels may not be
reassigned without forty-five (45) days notice to the Municipality, and the affected users. The
Franchisee will notify subscribers of any PEG channel reassignments by bill messages or bill
stuffer. PEG channels may not be reassigned more than once in any twelve (12) month
period.
lb) Franchisee shall be responsible for any established costs incurred by any PEG
user due to a change in channel assignment for any PEG channel. These costs may
include, but not be limited to, stationary, business cards, public notices, and promotional
items such as crew uniforms, t-shirts, etc. as agreed upon on a case by case basis.
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SECTION '~ C .ru ,t Schedule is amended by the addi ; following
subsections.
(d) The Municipality shall notify the Franchisee of the construction of any new
development within the Municipality by delivering to the Franchisee a final Plat of Survey, to
include final design for all utilities for that development. Within thirty (30) days of such notice
of areas having a planned minimum density of 25 units per street mile. Unless a variance
of this requirement is granted by the Municipality, the Franchisee shall deliver to Municipality
its proposed construction design plan for the development and have applied for all necessary
permits and licenses. Construction shall begin within thirty (30) days of the receipt of all
necessary permits and licenses. The Franchisee shall complete construction of its System
in the development within the time frame as submitted on the final design submitted to the
Municipality. The Municipality will have final approval of such time frame, however, such
approval shall not be unreasonably withheld. Unless a variance is granted by the
Municipality such time frame shall not be longer than ninety (90) days.
(e) Within thirty (30) days after signing a contract and approved design with any
multiple dwelling unit for the provision of cable service, the Franchisee shall begin
construction of extension of its system in such multiple dwelling unit. The Franchisee will
complete construction or extension of its System within the time frame as submitted on the
final design submitted to the Municipality. The Municipality will have final approval of such
time frame, however, such approval shall not be unreasonably withheld. Unless a variance
is granted by the Municipality such time frame shall not be longer than ninety (90) days.
(f) Line Extensions will be completed within one (1) year of the filing of a written
request for service by not less than 50% of the potential subscribers and/or users located in
an area of the Municipality which lies outside the PSA and which does not meet the minimum
densities specified above. If the Franchisee determines that a line extension is not
economically feasible, then it may request relief from this provision. Relief may or may not
be granted by the Municipality, but the Municipality will not reasonably withhold such a
decision.
SECTION 13: Standards and Restrictions as to Construction and Installation is
amended by addition of the following language at the conclusion of subsection (e):
The Franchisee shall, whenever possible, permanently secure and install, pursuant to the
terms of this Agreement and the Cable Communications Code, including all requirements as
to burial of cable and restoration, all cable drops and reception equipment at a subscriber's
residence or business at the time of installation. In the event a temporary cable or drop line
is required, the Franchisee must permanently install and bury, if necessary, the cable or drop
line within ten (10) days. In the event a temporary cable or drop line is requited due to
winter weather-related conditions, the Franchisee must permanently install and bury, if
necessary, the cable or drop line within sixty (60) days of the first date that such installation
is possible. Whenever practicable, temporary service drops remaining from winter shall
be buried by Memorial Day. Determination of permanent construction conditions shall be the
responsibility of the Franchisee, subject to review by the Municipality.
This Section is further amended by the addition of the following language at the conclusion
of subsection (g):
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(1) A. aund wir~. ,all be securely f~stened to the building ,¢ d routed in
a way to prevent such wires from becoming a safety hazard.
(2) The Franchisee shall provide a copy of its construction manual to the Municipality.
Such manual shall show the equipment mounting methods, grounding and installation
practices the Franchisee requires to be followed by its employees and subcontractors.
Methods to be shown include height above ground anc~ underground burial depth of cable,
grounding practices, location of equipment, and other cable installation practices. An
acceptable submission under this Section would be the TCI Construction Manual
supplemented by those items not addressed in the TCI publicatio~ VVhenever there is a
conflict between this Agreement and local building codes, local codes will prevail. In the
absence of more stringent NESC or local codes, the submission under this section shall be
incorporated as the standard. The Franchisee may submit revisions from time to time, but
in no event shall the standards De less stringent than those in place as of the date of this
agreement.
(3) The Franchisee shall be a member of the J.U.L.I.E. system. Emergency locates
will be done immediately. All other requested locates will be done within 48 hours,
excluding Saturdays, Sundays, and Holidays.
(4) The Franchisee shall, to the maximum extent possible, complete all installations
or construction to be performed at each subscriber's residence or business, including any
installation of new equipment either within or outside a subscriber's residence or business,
in one service call.
This Section is further amended by the deletion of subsection (k) and the substitution of the
following language:
(k) The desire of each subscriber as to the point of entry into his or her residence,
common areas, or business shall be observed to the maximum possible extent. Runs in
building interiors and exteriors shall be as unobtrusive as possible. The Franchisee shall
comply with a subscriber's request that the Franchisee use white cable in the interior of the
subscriber's residence or business, however, subscribers will be informed that the use of
white cable constitutes a custom install and shall be subject to appropriate charges not to
exceed the actual cost incurred by the Franchisee. In addition, ('1) no permanent fixture for
the reception of cable service may be attached to any residence or business without the
express written consent of the owner(s) of that residence or business (2) the cost of removal
of equipment which is not a part of a standard disconnection (i.e.- beyond demarcation point)
shall be borne by the owner, however, any cable wired within the home may be purchased
at actual materials cost by the homeowner unless ownership has already been transferred
to the homeowner by the Franchisee.
This Section is further amended by the addition of the following subsections:
(k)(1) Except in cases requiring emergency repair, or related to a specific service
problem, or installation of regular subscription services at the subscriber's residence or
business, the Franchisee must give each Subscriber at least three (3) days notice before
attempting to perform any construction, reconstruction, or installation at subscriber's
residence or business. Such notice shall be by doorhanger, or by mail.
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(I)(1)' apt as sp ~ally noted in this Section, the Franchis ,~ ~ bound by
all customer servico, construction and other requirements of the Cable Communications Code
and thereby the Franchise Agree~et~t as a~ended by this Agreement, with respect to all
construction, repair, restoration, installation, or other work pen~ormed relating to any
Reconstruction.
(2) The Franchisee shall place notices in newspapers of general circulation in the
Municipality setting out the approximate schedule for Reconstruction-related construction
activity broken down by sections within each area of the Municipality, and a telephone
number where representatives of the Franchisee may be reached for additional information.
The Franchisee shall also notify subscribers by bill message or bill insert.
(3) The Franchisee shall give notice to all subscribers in any area where
Reconstruction activity is to take place that is likely to cause a service interruption or other
inconvenience. Such notice shall state the objectives of and procedures related to the
Reconstruction, the areas affected by the Reconstruction activity, and the specific day and
hours that disruption is possible. Such notice shall be by personal contact with a
representative of Franchisee, doorhanger, or by mail, and must be given at least three (3)
days before the Reconstruction activity begins in a particular area.
In addition, the Franchisee shall program a message on its Customer Information
Channel explaining the Reconstruction and demonstrating what subscribers might experience
during Reconstruction activity in their area. The Franchisee shall also display on its
Customer Information Channel accurate messages describing which areas of the
Municipality, by neighborhood and block, are scheduled for Reconstruction activity in any
given day and shall update this information on a daily basis.
(4) The Franchisee shall provide the Municipality with a detailed schedule of the start
and anticipated completion of reconstruction activity in each area, updated on a weekly basis.
(5) The Franchisee shall secure the consent of any subscriber or property owner
on whose land or at whose residence or business the Franchisee conducts any construction,
reconstruction, or installation outside of the easement.
SECTION 14: Services to Subscribers is amended by the deletion of Subsection (b)
(guide)
Section 14 is further amended by deleting subsection (c) and substituting the following
language:
(c) The Franchisee shall make available to each subscriber the converter or other
equipment and devices necessary for the receipt of all services which the subscriber desires
to receive. The Franchisee shall provide equipment allowing the subscriber to "lock out"
audible and visual reception of certain programming channels at the request of the
subscriber. The Franchisee may collect at the time of installation, a deposit from
subscribers to ensure the protection and return of the converter or other equipment or
devices provided by the Franchisee. At the termination of service, the subscriber shall
receive a refund in full of his security deposit plus 6% simple interest per annum upon the
return of the converter or other equipment or devices in good condition to the Franchisee,
normal wear and tear is expected. The Franchisee may, from time to time, request a review
by the Municipality of the rate of interest paid on security deposits.
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This Section, ,rther amL ,d by the addition of the following subsec J, Jsection (d)
and the renumbering of current subsection (d) as subsection (e):
(d) The Franchisee shall provide A/B switches to subscribers Pursuant to the
guidelines established by the FCC.
SECTION 15: Access Channel Service is deleted.
SECTION `16: Maintenance and Customer Service is amended by the deletion of the
current subsection (f), and the addition of the following subsection (f):
(f) Maintain a customer service office in each of the following Municipalities:
Arlington Heights, Mount Prospect, ParkRidge, Schaumburg, and Streamwood. Subscribers
may use any customer service office listed above for payment and adjustment of bills,
complaints and requests for repairs or other transactions. The Mount Prospect office shall
maintain daytime and limited evening hours which shall include, at a minimum, ten hours a
day Monday through Friday and nine hours on Saturday.
This Section is further amended by the addition of the following subsection:
(h) Abide by the Customer Service standards as outlined in Section 6.607.G of the
Cable Communications Code as amended from time to time comply with local, state and
federal laws.
SECTION '17: Public Access Channel is amended by deletion of the current subsection
(a) and the substitution of the following subsection:
(a) The Franchisee shall provide at least one (1) public access channel for use by the
public of which the public access channel shall be operated by the Franchisee with
applicable rules and regulations of all local, State, and Federal agencies having jurisdiction.
The Franchisee shall provide studio and production facilities and personnel necessary for the
use of the public access channels by the public as described in Section 20 and 21, infra.
The Franchisee shall actively seek out persons and groups to provide programming on this
channel and shall allocate a reasonable percentage of its gross revenues for the on-going
operation of the channel (especially for the provision of production assistance and education
and training programs to encourage members of the public to utilize this channel in new and
innovative ways). In the event of any conflict concerning the intent of any specifications
herein for operation of a Public Access Channel, the reasonable determination of the Village
shall be final and binding.
This Section is further amended by the deletion of subsection (b)(3) and the substitution of
the following language:
(b)(3) The Franchisee shall keep a publicfile available at its local office of all requests
it receives for the use of the public access channel and for the transmission of programming
on the public access channel, including the names and addresses of those making such
requests. Such files shall be available for public inspection during normal business hours.
The files shall be maintained by the Franchisee until the end of the Franchise term.
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This Section jrther am ~d by the addition of the following subs r,
(c) Access programming produced outside of the system may be shown in this
system, providing, 1) programs produced in this system get first priority, 2) the programming
is of interest to the community, and 3) the programming is sponsored by a local resident.
SECTION 18: Services to the Municipality is amended by the substitution of "One service
outlet activated for Basic Service on the Subscriber Network at each Municipal Facility" for
the current first sentence in subsection (a).
This Section is further amended by the deletion of language "whether located inside or
outside oF' from subsection (a) and replacing that language with the word "in".
This Section is further amended by acceptance of an updated list of Municipal Facilities as
listed in EXHIBIT A of the Franchise Agreement.
This Section is further amended by the deletion of the language in subsection (c) and the
substitution of the following subsection:
(c) One channel, designated as the local government channel, for the exclusive
programming use of the Municipality. Such channel shall be available to subscribers as part
of the universal tier or any Basic Service package on the Subscriber Network. Franchisee
shall provide a computer to program visual messages and announcements and a modulator
to inject programming into the cable communication system and/or Institutional Network from
the Communications Division or other location(s) as designated by the Municipality.
This Section is further amended by the addition of the following subsection:
(g) in addition to any service outlets required by this section, the Franchisee shall
provide a single service outlet activated for all subscriber programming services, unless
restricted by programming contracts, offered by the Franchisee over its System at (the
appropriate Municipal Office so as to allow the Municipality to monitor the quality and
adequacy of the Franchisee,s service.
SECTION 19: Services to Educational and Other Institutions subsection (2)is amended
by the substitution of an updated list of public, parochial, and private schools as well as all
Libraries and Park Districts so long as it is not used for commercial gain.
This section is further amended by the deletion of subsection (c) and the substitution of the
following:
(c) Eight Access channels shall be available for the exclusive programming use of
designated institutions, except as provided in paragraph (e) of this section~ The Municipality
shall determine the channel allocations for such designated institutions. Such channels shall
be available on the Subscriber Network as part of the Basic Service Package and on the
Institutional Network if so designated by the Municipality as long as it does not result in a
requirement for increased channel capacity.
This Section is further amended by the addition of the following subsections:
(h) '1', ,'anchise~. ,11 designate one employee to be respor ~ordinating
the use and maintenance of the Institutional Network, in addition to production assistance
outlined in Section 20 hereto. The Franchisee shall provide each institution connected to the
Institutional Network with the employee's name and telephone number.
(i) The Franchisee shall maintain the Institutional Network in good working order and
repair at all times and shall ensure that it meets the technical performance standards
prescribed pursuant to Section 9 hereof. Within ninety (90) days of a reasonable request for
use by the Municipality, the Franchisee will activate and perform any necessary installation
needed to utilize any portion of the INET, as required by the Cable Communications Code.
(j) Any withdrawal on the letter of credit, performance bond, or any penalties imposed
shall be done pursuant to the provisions outlined in the Cable Communications Code.
SECTION 20: Pro,qram and Production Assistance is amended by the deletion of
subsection (a) and the substitution of the following:
Franchisee shall provide free consulting services on planning, productions, and program
format for the use of public, educational, governmental, and institutional channels.
(a) To provide such consultation and training assistance, the Franchisee shall
employ sufficient staff to provide satisfactory levels of assistance. All programming staff
shall be sufficiently qualified with either an educational background or similar experience in
television production. The staff shall include at a minimum, a Programming Manager to
oversee the operation of all programming and production, a Studio Engineer to provide
technical and maintenance assistance as required at the regional production studios and for
the mobile vans, and two (2) professional production staff members for each operating
access studio scheduled in a way to ensure that assistance is equally available at all
locations. The production staff members shall be capable of providing the following services:
(1) Promote the general use of the public, educational, governmental,
institutional and leased channels and to advise such users on programming and
production matters.
(2) Promote and facilitate the effective and efficient use of access facilities and
to provide programming consulting and training services.
(3) Teach access workshops, to operate and maintain access facilities and to assist
access users in the development, production and promotion of access programs.
(4) Maintain access facilities in good working order.
(5) To schedule and facilitate playback of access programs on their respective
channels or on the system-wide public access channel.
The Franchisee and Municipality shall meet on an annual basis to discuss the levels of
staffing and equipment. Sufficient levels shall be based upon the current needs of the public
access system as agreed upon at the annual review. In the event there is not agreement
on staffing and equipment, the Municipality shall hold a public hearing and will solicit written
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comments to make deten ;ion.
This Section is further amended by deleting Section (b)l. and substituting the following
language:
(b)l. The Franchisee shall hold workshops at each production studio not less than
twice a year with the first two levels of basic production workshops to be held not less than
twice a year in each of the three operating divisions with scheduling staggered to ensure the
availability of a level one or two workshop throughout the year. These workshops shall be
for the instruction of studio, field production, and remote truck, but shall not be limited to
these topics. The Mount Prospect studio will be used for advanced training of access users.
Eligible users will be those who have completed at least the first two levels of training and
who have logged at least 24 hours of studio or editing time during the past 12 month period.
Mobile Van training shall be held at least once a year. Announcements of the date, time and
place of said workshops shall be made over the public access and community affairs
channels no less than six times daily for a two week period prior to the workshop. In
addition, the Franchisee shall provide to the Municipality at least twice annually at no more
than six month intervals, a schedule of all workshops and training formally scheduled for the
coming year to be published in the Municipality's newsletters. In the event that all
notification procedures have been followed, and registration does not meet minimum levels
of; four for port-a-pak and editing, ten for studio, and five for mobile van, that workshop may
be canceled upon notice to the Municipalities served by the production facility scheduled for
said workshop.
SECTION 21: Production Facilities is amended by the deletion of subsection (a) and the
substitution of the following language:
(a) The Franchisee shall at all times, provide production facilities inArlington Heights,
Mount Prospect, Des Plaines, Park Ridge, Schaumburg, and a production facility in the
Tri-Village area located in either Bartlett, Hanover Park or Streamwood. As a part of the
annual review process between the Municipality and the Franchisee, tape format used in
access facilities may be discussed. The Franchisee will maintain facilities which utilize 3/4
inch industrial, VHS, S-VHS, 8 millimeter, Hi-8, or other formats generally recognized as
common within the industry at any point in time. Playback facilities for programs produced
by local residents will accommodate 3/4 inch or VHS formats as a minimum. Said facilities
shall have both studio and editing capabilities. The facilities shall be available to residents
of Mount Prospect who have participated in the appropriate workshop training sessions as
outlined in Section 20. All studios shall be available for use by all subscribers and users
within the Franchisee's cable system.
The Franchisee will continue to upgrade access facilities to provide more advanced
production equipment. Based on the success and response of access users, additional
upgrades will be considered in subsequent years.
This Section is further amended by the addition of the following language to the end of the
current Section (f):
The Franchisee shall maintain a list of all equipment at each facility. Such list shall
be made available to the Municipality on a quarterly basis, showing any significant repairs
or replacements which took place during the previous quarter; Reports detailing the hours
of access use at each facility will also be made available to the Municipality on a monthly
13
basis. A list of all equip~ at each facility, and any significant repairs ¢ ;lacements
which took place over the previous yeari and the hours of access use over the previous year
shall be submitted to the Municipality on an annual basis in conjunction with the annual
review set forth in Section 20(a).
Any piece of equipment which fails and cannot be repaired to function in a satisfactory
manner, as per the manufacturer's specifications, will be replaced in a prompt fashion.
Equipment will remain sufficient in both quantity and capability to be used by all access users
for the production of access programs. All equipment shall be of an industrial quality and
equal to that which is commonly used in the industry as a minimum and subject to review
by the Municipality and the Franchisee at the annual meeting outlined in Section 20(a).
SECTION 22: Leased Channels is amended by the addition of the following at the
conclusion of subsection (b):
The Franchisee shall maintain a record of usage of the leased channels and file with
the Municipality copies of leases entered into for leased channel use.
SECTION 26: Notices is amended by numbering the current language as subsection (a)
and deleting the reference to Cablenet, and replacing the last listing with:
To the Franchisee: TCI of Illinois, Inc.
1201 Feehanville Drive
Mount Prospect, Illinois 60056
and: TCI of Illinois, State Office
State Manager
1201 Feehanville Drive
Mount Prospect, Illinois 60056
This Section is further amended by adding the following subsections:
(b) The Franchisee shall give notice, in writing to the Municipality of any increase in
its rates or other charges to subscribers at least forty-five (45) days prior to the effective date
of such increase specifying the amount of increase and the subscribers affected.
(c) The Franchisee shall give notice to all affected subscribers of the amount of any
increase in the rates or other charges to such subscribers at least thirty (30) days prior to the
effective date of such increase. Such notice need not comply with subsection (a) of this
Section but, instead, must be made by mail, or by bill insert to each affected subscriber.
SECTION 29: Franchise Renewal is amended by deleting the current Section and
substituting the following language:
(a) To the extent applicable, Section 626 of the Cable Act shall govern the
procedures and standards for renewal of any Franchise governed by this Franchise
Agreement.
(b) To the extent Section 626 of the Cable Act is not applicable, the Municipality
shall, subject to applicab ,w, have the right to grant or deny reneA ;ursuant to
any reasonable procedures and standards in the exercise of its sole discretion.
(c) Unless the Municipality shall consent to any lesser notice, any request for renewal
shall be made thirty-six (36) to thirty (30) months prior to the Franchise expiration date. Any
request for renewal must be in writing. If no request for renewal is made by the required
window, the Franchise shall expire according to its terms, provided, however, that the
Municipality may extend the term of the Franchise in six (6) months increments during the
Franchise renewal process provided in this Section, subject to applicable law.
(d) In any public meeting or special public hearing held pursuant to the Cable Act or
otherwise to consider Franchise renewal, the Municipality shall hear any interested person
and notice of such meeting shall be given in accordance with the Cable Communications
Code.
(e) Subject to applicable law, if the Municipality does not renew the Franchise; the
Municipality shall, to the extent then permitted by Municipal law, have the option to: (1)
acquire at fair market value all of the assets of the Franchisee operations within the
Municipality which value shall exclude any value attributable to the Franchise itself; or (2)
require the sale at fair market value of all such assets to a succeeding Franchisee; or (3)
require the removal of all such assets from the Municipality.
This Section is subject to provisions in the Cable Act of 1984 and the 1992 Cable Act.
Current Section 33 is renumbered as 34. New Section 33 will be inserted as follows:
SECTION $$: Penalty Procedures:
(a) As stated in Section 31, whenever any time is set forth for any act to be
performed by the Franchisee, such time limit shall be deemed as of the essence, and the
Franchisee's repeated failure to perform within the time limit allotted shall, in all cases, be
sufficient grounds for the Municipality to invoke remedies available under the terms and
conditions of the Franchise Agreement, the Cable Communications Ordinance, and any
applicable State, Federal and local laws, as now exist, or as may be amended in the future.
2. EXHIBIT "A" is amended by the addition of any new facilities and updates as needed.
3. INCORPORATION
All provisions of this Modification Agreement are hereby incorporated and made a part
of the Franchise Agreement.
4. WAIVER
Nothing in this Modification Agreement shall be construed to change any items not
specifically addressed in this Agreement. Nothing in this Modification Agreement shall be
construed to waive the right of the Municipality, under the Cable Act, and any amendments
thereto, or any other applicable law, to propose any additional upgrades of the System,
~.5
including, but not limited !. ,pansion of channel capacity when the Franchi. considered
for renewal.
5. GRANDFATHER STATUS
Nothing in this Modification Agreement shall be construed to affect the status of any section,
clause or requirement in the Franchise Agreement that may be deemed to be
"Grandfathered" under the Cable Act.
6. SEVERABILITY
The various provisions of this Agreement are to be considered as severable and if any part
or portion of this Agreement shall be held invalid by any Court of competent jurisdiction,
such decision shall not affect the validity of the remaining provisions of this Agreement.
7. CONSENT TO TRANSFER FRANCHISE TO TCI OF ILLINOIS
In consideration of an agreement between the municipality and TCI of Illinois for additional
production equipment identified in Exhibit B, the Municipality hereby consents to the
assignment of the Franchise herein from Telenois, Inc. to its affiliate corporation, TCI of
Illinois, Inc., and the release of Telenois, Inc., from any further obligations or liability
obligations or liability hereunder, provided, however, that TCI of Illinois, Inc. delivers to the
Municipality notice of the closing date of when the transfer affecting the assignment occurs,
and a written acceptance, by TCI of Illinois, of all the terms and conditions of the Franchise
and this Modification Agreement. The transfer to TCI of Illinois in no way releases TCI of
Illinois of any obligations or violations which may have existed previous to the date of this
agreement. TCI of Illinois; Inc. expressly assumes responsibility for all past liabilities and
franchise violations incurred by or committed by Telenois, Inc. TCI of Illinois, Inc. will
promptly take all steps necessary to transfer any letter of credit, bonds, or other securities
specified in this Modification Agreement, the Franchise Agreement, or the Cable
Communications Code from Telenois, Inc. to TCI of Illinois, Inc. The performance of all
obligations, including all financial obligations under the Franchise shall be guaranteed by TCI
Development Corporation and written verification of this guarantee must be received by the
Municipality within 30 days of the execution of this Agreement. Nothing in this consent to
transfer or this Modification Agreement shall be deemed to waive or in any way limit the right
of them unicipality to deny renewal, if appropriate under Section 626 of the Cable Act, for any
past or future franchise violation by TCI of Illinois, Inc. or its predecessor Telenois, Inc.
Notwithstanding performance of the conditions of this Modification Agreement, the
Municipality reserves the right to determine whether such performance constitutes
compliance with the Franchise Agreement, including but not limited to, whether denial of
renewal is appropriate under Section 626 of the Cable Act.
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IN WITNESS WHEREOF, the partners hereto, by their duly au, thor}zed officers or
officials have executed this Agreement which shall be effective as of ~/1'7/¢_~ ,1993.
TELENOIS, INC VILLAGE OF MOUNT PROSPECT
ALL~N H. (300~SON ~,~y
ViCE '
Title: PEE$~DENT/CO0 Title: ~,~-~
Attest:_ _
TCI OF ILLINOIS
By:
ALLA~ H. ~O:~DSON
ViCE P~ ~ ,-
~'E$~D~'NT/CO0
Title:
17
EXHIBIT A
TCI of Illinois, Inc.
R E C E I V E D ~},~.~.
June 8, 1993 JU~ 68 993
Cheryl Pasalic
Village of Mt. Prospect
50 S. Emerson St.
' Mt. Prospect, IL 60056
Dear Ms. Pasalic:
The Cable TV industry is changing rapidly, We are seeing
dramatic developments in technology, increased awareness and
consumer demand for these technologies and the uncertainties that
come with the recent cable legislation passed in Congress.
At TCI, we are preparing to meet these developments head-on and
take the steps necessary Co ensure that our operations are
efficient, we are poised for these technological developments,
and that our customers receive exceptional picture quality. It
is toward these goals that we are upgrading our cable plant by
installing a ,fiber optic backbone system."
Our current distribution system is made up primarily of coaxial
cable. Over distances, coaxial cable loses signal strength and
it is necessary to amplify this signal at many locations along
its path. These amplifiers require power and regular
maintenance. In addition, the picture quality decreases somewhat
as you increase the number of amplifiers between our headend and
our customers' homes.
We dedicate substantial resources to ensuring that our picture
quality is clear and we carefully monitor the performance of our
equipment. We can not, however, control the power outages that
occur in to~-n. While we do have backup power supplies in place,
any power loss that lasts for any period of time can affect cable
service on a widespread basis. In fact; most outages are as a
result of power related problems.
By the end of 1993, we will be replacing our longest spans of
coaxial trunk cable with fiber optic cables. In fact there will
be no more than four trunk amplifiers between our fiber optic
system and any customers home. There are as many as 30
amplifiers along a given route in our current system. This type
of system reduces our reliance on power, decreases the number and
1201 Feenanville Drive
Mour~t Prosoect, f[linoi$ 60056~6010
708) 299-9220
une 8, 1993
Cheryl Pasalic
Village of Mt. Prospect
Page 2
scope of outages, improves picture quality and reliability, and
decreases the maintenance required to maintain these superior
cable pictures. Fiber optic cables require no amplifiers or
power supplies along the route.
I have attached a map indicating the fiber optic construction
routes, locations for receivers (nodes), and splice locations.
These are consistent with the permits we have applied for and
specifics are on these permit applications.
I hope that this gives you the necessary information to release
these permits and allow us to begin construction immediately, we
would like to make Mt. Prospect among the first coam~nities to
receive the substantial benefits of this project. If I may
provide further information, please give me a call.
Sincerely,
leith Heffron
Construction Manager
attacb~nent
cc: Kelvin Fee, General Manager
Fred Esquivel, Fiber Project Coordinator
THE VILLAGE OF ..,,.,
MOUNI PROSPEGI, ....
OFFICIAL.......ZQ..NING MAP ~~,,~:~,,~
ZONING DISTRICTS ~
EXHIBIT B
*PRODUCTION EQUIPMENT TO BE PROVIDED BY TCl OF ILLINOIS
- Upgraded Amiga computer for bulletin boards
- Additional automated microphone system for remainder of meeting room
- Changes to lighting in meeting room
* = Not to exceed $13,000
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