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HomeMy WebLinkAboutOrdinances - 24-21 - 06/03/2024 - Comcast Franchise AgreementCITY OF MCHENRY MCHENRY COUNTY STATE OF ILLINOIS Ordinance 24-21 An Ordinance Authorizing Renewal and Execution of a Cable Television Franchise Agreement between the City of McHenry and Comcast Passed by the Mayor and City Council Of the City of McHenry McHenry County State of Illinois June 3, 2024 Published in pamphlet form by authority of the Mayor and City Council of the City of McHenry, McHenry County, Illinois this 4111 Day of June 2024 ORDINANCE NO. 24-21 An Ordinance Authorizing Renewal and Execution of a Cable Television Franchise Agreement hetiveen the City ofMeHemy and Comcast WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois. WHEREAS, the City of McHenry (City) and Comcast of California/Colorado/Illinois/Indiana/ Michigan, LLC (Comcast), are parties to a franchise agreement that expires on June 30, 2024; and WHEREAS, the City has given notice to the public of a hearing on the Comcast proposal pursuant to 47 U.S.C. ยง 546, which notice was published in the Northwest Herald on May 21, 2024; and WHEREAS, the City has held such public hearing pursuant to Federal law and the City Council finds accepting the Comcast proposal is in the best interest of the City and its residents. NOW THEREFORE BE IT ORDAINED by the Mayor and City Council of the City of McHenry, McHenry County, Illinois as follows: SECTION 1: The Mayor is hereby authorized to execute the City's franchise agreement with Comcast attached hereto as Exhibit A. SECTION 2: If any section, paragraph, subdivision, clause, sentence orprovision ofthis Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 3: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed and approved this 3rd day of June, 2024. Ayes Nays Absent Abstain Alderman Santi x Alderman Glab x Alderman McClatchey x_ Alderwoman Bassi x Alderman Davis x Alderman Koch x Alderwoman Miller x Waynt Jett, Mayor a Monte Johns , Deputy Clerk CABLE TELEVISION FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF McHENRY, ILLINOIS AND COMCAST OF CALIFORNIA/COLORADOAILLINOIS/ INDIANA/MICHIGAN, LLC THIS FRANCHISE AGREEMENT (hereinafter, the "Agreement" or "Franchise Agreement") is made between the City of McHenry, Illinois (hereinafter, the "City"), an Illinois municipal corporation and Comcast of California/Colorado/Illinois/Indiana/Michigan, LLC (hereinafter, "Grantee"), effective this 3rd day of June, 2024 (the "Effective Date"). The City, having determined that the financial, legal and technical abilities of the Grantee are reasonably sufficient to provide the services, facilities, and equipment necessary to meet the future cable related needs of the City, desires to enter into this Franchise Agreement with the Grantee for the construction, operation and maintenance of a Cable System on the terms and conditions set forth herein. This Agreement is entered into by and between the parties under the authority and shall be governed by the Cable Communications Policy Act of 1984, as amended from time to time, 47 U.S.C. Sections 521 et seq, (the "Cable Act"), and the Illinois Municipal Code, as amended from time to time; provided that any provisions of the Illinois Municipal Code that are inconsistent with the Cable Act shall be deemed to be preempted and superseded. Article I - Franchise Hereby Granted a. The City hereby agrees to permit the Grantee to construct, operate and maintain a cable system in the City subject to the terms and provisions of the City's generally applicable ordinances governing the streets and rights of way of the City. b. The City hereby agrees that, provided the Grantee is in compliance with all generally applicable City codes and ordinances, this Franchise Agreement shall be effective for a period of five (5) years from and after the Effective Date. Article II- Operations within the City's Rights of Way a. The Grantee hereby agrees to occupy the rights of way in accordance with the terms and provisions of Illinois State law and the City's generally applicable ordinances governing the streets and rights of way of the City including, but not limited to, the provisions of Title 8, Chapter 7, Construction of Utility Facilities in the Rights -of -Way, of the McHenry Municipal Code governing streets and sidewalks, as currently in effect and as may be subsequently amended. b. The Grantee shall at all times maintain insurance and shall provide the City with certificates of insurance in accordance with the provisions of Title 8, Chapter 7, of the McHenry Municipal Code, governing streets and sidewalks, as currently in effect and as may be subsequently amended. Said certificates of insurance shall name the City and its elected and appointed officers, officials, agents and employees as additional insureds. Article III - Franchise Fee a. The Grantee shall pay a franchise fee to the City for the privilege of operating in the City's rights of way in a manner consistent with the provisions of the Cable Communications Policy Act of 1984, as now in effect and as maybe subsequently amended from time to time. The franchise fee shall be 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 City, and shall be made on a quarterly basis, and shall be due forty- five (45) days after the close of each calendar quarter. If mailed, the Franchise Fee shall be considered paid on the date it is postmarked. The City hereby agrees that the total franchise fee, as interpreted under the Cable Act, shall not exceed the greater of the percentage of fees of any other video service provider, under state authorization or otherwise, providing service in the Franchise Area pays to the City. b. As used in this agreement, gross revenue means the cable service revenue derived by the Grantee from the operation of the cable system in the City's Rights of Way to provide cable services, calculated in accordance with generally accepted accounting principles. Gross revenues shall also include such revenue sources from the provision of cable service as may now exist or hereafter develop from or in connection with the operation of the cable system within the City, provided that such revenues, fees, receipts, or charges may lawfully be included in the gross revenue base for purposes of computing the City's permissible franchise fee under the Cable Act, as may be amended from time to time. c. The City and Grantee acknowledge that the audit standards are set forth in the Illinois Municipal Code at 65 ILCS 5/11-42-11.05 (Municipal Franchise Fee Review; Requests For Information). Any audit shall be conducted in accordance with generally applicable auditing standards. d. In accordance with 65 ILCS 5/11-42-11.05 (k), the City shall provide, on an annual basis, a complete list of addresses within the corporate limits of the City. If an address is not included in the list or if no list is provided, the Grantee shall be held harmless for any franchise fee underpayments (including penalty and interest) from situsing errors. Article IV - Cable Communications Policy Act of 1984 Nothing in this Agreement shall be construed to limit, in any way, the Grantee's rights or responsibilities under the Cable Communication Policy Act of 1984, as amended and the renewal of this Agreement shall be governed by that Act. Region Senior Vice President