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A Resolution Approving the Franchise Agreement Between the Comcast and the Village of Oak Park, IL
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Introduction
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The purpose of this resolution is to recommend the adoption of the proposed Comcast Franchise Agreement, which outlines the terms and conditions for the continued operation and maintenance of Comcast’s cable services within the Village of Oak Park.
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Recommended Action
It is recommended that the Village Board approve and adopt the Comcast Franchise Agreement to maintain and enhance cable television services for residents.
Prior Board Action
The Village has previously entered into franchise agreements with Comcast to regulate cable services within its jurisdiction. The last agreement was approved for a term that has now long been expired, necessitating a renewal.
Background
This agreement is authorized under the Cable Communications Policy Act of 1984, as amended, and the Illinois Municipal Code.
The Comcast Franchise Agreement has expired. Although the franchise agreement has expired, Comcast is required to continue to pay the Village the franchise fee under Federal law (47 U.S.C. § 542), State law (65 ILCS 5/11-42-11.05), and its existing expired Franchise Agreement.
The expired Franchise Agreement remains in effect, to the extent its terms do not conflict with more current Federal law and State law. Village staff, in collaboration with Village Attorney Greg Smith of Elrod Friedman, LLP, have negotiated for a new franchise agreement.
Some improvements to highlight are as follows:
• Comcast is granted a non-exclusive franchise to use rights-of-way for a 10-year term, Secs. 2.1 & 2.2, p. 4
• Comcast pays a franchise fee of 5% of its gross revenues, Sec. 5.1, p. 8
• Comcast must maintain insurance and indemnify the Village from damages arising out of Comcast’s activities, Secs. 7.1 & 7.2, p. 11
• Comcast must convert the Village’s PEG channel to HD if any one of the 68 municipalities served by the same “head-end” receive a HD PEG channel, Sec. 8.6.1
• The Village may direct Comcast to collect and remit up to $0.60 per Comcast subscriber per month for PEG capital costs, Sec. 8.7
Timing Considerations
The current franchise agreement is expired.
Budget Impact
The agreement stipulates a franchise fee of 5% of Comcast’s annual gross revenues derived from cable services within the Village. This fee will contribute to the Village’s general fund and help finance public services.
Staffing Impact
No additional staffing is required for the administration of this agreement. Existing staff will continue overseeing compliance with the terms of the agreement.
DEI Impact
The agreement ensures non-discriminatory access to cable services and includes provisions for Public, Educational, and Governmental (PEG) programming, which supports diverse community engagement.
Community Input
The Civic Information Systems Commission provided input and recommended adopting the Franchise Agreement.
Staff Recommendation
Staff recommends the approval of the Franchise Agreement between Comcast and the Village of Oak Park.
Advantages:
• Ensures continued cable service without disruption.
• Provides continued financial benefits through the agreed-upon franchise fees.
Disadvantages:
• Staff do not perceive any disadvantageous to adopting the agreement.
Alternatives
Alternative 1:
Do not approve the agreement and continue to operate under the expired terms of the previous Franchise Agreement:
Advantages:
• There are no advantages to this alternative.
Disadvantages:
• The Village will not receive a franchise fee.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Dan Yopchick, Chief Communications Officer, and Alvin Nepomuceno, IT Director
Reviewed By: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. OP Comcast Franchise Agreement
2. Resolution