O-97-48ORDINANCE NO. 0 -97 -4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
Published in pamphlet form this
day of ' 1997
by the President and Board of
Trustees of Deerfield.
JKS 162172 . 1 October 24, 1997
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
WHEREAS, the Village of Deerfield (the "Village ") is a home -rule municipality in
accordance with the Constitution of the State of Illinois of 1970;
WHEREAS, the Village has the authority to adopt ordinances and to promulgate rules and
regulations that pertain to its government and affairs and that protect the public health, safety and
welfare of its citizens;
WHEREAS, in addition to the Village's power as a home -rule municipality, this
Ordinance is adopted pursuant to the provisions of the Illinois Telecommunications Municipal
Infrastructure Maintenance Fee Act, Public Act 90 -154 (the "Act ");
WHEREAS, the fees imposed under this Ordinance will replace the Village's existing
municipal franchise fees with respect to telecommunications retailers, which are currently paid by
the telecommunications consumer, with a different fee under the Act; and
WHEREAS, this Ordinance is intended to create a uniform system for the collection of
fees associated with the privilege of using Village right -of -ways and other public right -of -ways for
telecommunications activity within the municipal boundaries of the Village, including the recovery
of reasonable costs for regulating the use of all public right -of -ways within its municipal
boundaries for telecommunications activity.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES,
ILLINOIS AS FOLLOWS:
SECTION Recitals. The facts and statements contained in the preamble to this
ONE: Ordinance are found to be true and correct and are hereby adopted as part
of this Ordinance.
JKS 162172 . I October 24, 1997
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMTOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
SECTION Adoption of Fee. Chapter 9 of the Municipal Code of the Village of
TWO: Deerfield of 1975, as amended, shall be further amended by the addition of
Article 8 that will read as follows:
Article 8. Telecommunications Infrastructure Maintenance Fee.
Sec. 9 -42. Definitions.
As used in this Article, the following terms shall have the following
meanings:
(a) "Gross charges" means the amount paid to a telecommunications
retailer for the act or privilege of originating or receiving telecommunications
within the Village, and for all services rendered in connection therewith, valued in
money whether paid in money or otherwise, including cash, credits, services, and
property of every kind or nature, and shall be determined without any deduction on
account of the cost of such telecommunications, the cost of the materials used,
labor or service costs, or any other expense whatsoever. In case credit is
extended, the amount thereof shall be included only as and when paid. "Gross
charges" for private line service shall include charges imposed at each channel
point within the Village, charges for the channel mileage between each channel
point within the Village, and charges for that portion of the interstate inter -office
channel provided within the Village. However, "gross charges" shall not include:
(1) any amounts added to a purchaser's bill because of a charge
made under: (i) the fee imposed by this Section, (ii) additional charges added to a
purchaser's bill under Section 9 -221 or 9 -222 of the Public Utilities Act, (iii)
amounts collected under Section 8 -11 -17 of the Illinois Municipal Code, (iv) the
tax imposed by the Telecommunications Excise Tax Act, (v) 911 surcharges, or
(vi) the tax imposed by Section 4251 of the Internal Revenue Code;
(2) charges for a sent collect telecommunication received
outside the Village;
(3) charges for leased time on equipment or charges for the
storage of data or information or subsequent retrieval or the processing of data or
JKS 162172 . 1 October 24, 1997 2
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
information intended to change its form or content. Such equipment includes, but
is not limited to, the use of calculators, computers, data processing equipment,
tabulating equipment, or accounting equipment and also includes the usage of
computers under a time - sharing agreement;
(4) charges for customer equipment, including such equipment
that is leased or rented by the customer from any source, wherein such charges are
disaggregated and separately identified from other charges;
(5) charges to business enterprises certified under Section
9 -222.1 of the Public Utilities Act to the extent of such exemption and during the
period of time specified by the Village;
(6) charges for telecommunications and all services and
equipment provided in connection therewith between a parent corporation and its
wholly owned subsidiaries or between wholly owned subsidiaries, and only to the
extent that the charges between the parent corporation and wholly owned
subsidiaries or between wholly owned subsidiaries represent expense allocation
between the corporations and not the generation of profit other than a regulatory
required profit for the corporation rendering such services;
(7) bad debts ( "bad debt" means any portion of a debt that is
related to a sale at retail for which gross charges are not otherwise deductible or
excludable that has become worthless or uncollectible, as determined under
applicable federal income tax standards; if the portion of the debt deemed to be
bad is subsequently paid, the retailer shall report and pay the tax on that portion
during the reporting period in which the payment is made);
(8) charges paid by inserting coins in coin - operated
telecommunications devices; or
(9) charges for telecommunications and all services and
equipment provided to the Village.
(b) "Public right -of -way" means any municipal street, alley, water or
public right -of -way dedicated or commonly used for utility purposes, including
JKS 162172.1 October 24, 1997
ORDINANCE NO. 0 -97 -4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
utility easements wherein the Village has acquired the right and authority to locate
or permit the location of utilities consistent with telecommunications facilities.
"Public right -of -way" shall not include any real or personal Village property that is
not specifically described in the previous sentence and shall not include Village
buildings or other structures or improvements, regardless of whether they are
situated in the public right -of -way.
(c) "Retailer maintaining a place of business in this State ", or any like
term, means and includes any retailer having or maintaining within the State of
Illinois, directly or by a subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse, or other place of business, or any agent or other
representative operating within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or agent or other
representative is located here permanently or temporarily, or whether such retailer
or subsidiary is licensed to do business in this State.
(d) "Sale of telecommunications at retail" means the transmitting,
supplying, or furnishing of telecommunications and all services rendered in
connection therewith for a consideration, other than between a parent corporation
and its wholly owned subsidiaries or between wholly owned subsidiaries, when the
gross charge made by one such corporation to another such corporation is not
greater than the gross charge paid to the retailer for their use or consumption and
not for sale.
(e) "Service address" means the location of telecommunications
equipment from which telecommunications services are originated or at which
telecommunications services are received. If this is not a defined location, as in the
case of wireless telecommunications, paging systems, maritime systems, air -to-
ground systems, and the like, "service address" shall mean the location of the
customer's primary use of the telecommunications equipment as defined by the
location in Illinois where bills are sent.
(f) "Telecommunications" includes, but is not limited to, messages or
information transmitted through use of local, toll and wide area telephone service,
channel services, telegraph services, teletypewriter services, computer exchange
services, private line services, specialized mobile radio services, or any other
JKS 162172 . 1 October 24, 1997 4
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
transmission of messages or information by electronic or similar means, between or
among points by wire, cable, fiber optics, laser, microwave, radio, satellite, or
similar facilities. Unless the context clearly requires otherwise,
"telecommunications" shall also include wireless telecommunications as hereinafter
defined. "Telecommunications" shall not include value added services in which
computer processing applications are used to act on the form, content, code, and
protocol of the information for purposes other than transmission.
"Telecommunications" shall not include purchase of telecommunications by a
telecommunications service provider for use as a component part of the service
provided by him or her to the ultimate retail consumer who originates or
terminates the end -to -end communications. Retailer access charges, right of
access charges, charges for use of intercompany facilities, and all
telecommunications resold in the subsequent provision and used as a component
of, or integrated into, end -to -end telecommunications service shall not be included
in gross charges as sales for resale. "Telecommunications" shall not include the
provision of cable services through a cable system as defined in the Cable
Communications Act of 1984 (47 U.S.C. Sections 521 and following), as now or
hereafter amended, or cable or other programming services subject to an open
video system fee payable to the Village through an open video system as defined in
the Rules of the Federal Communications Commission (47 C.D.F. 76.1550 and
following), as now or hereafter amended.
(g) "Telecommunications provider" means (1) any telecommunications
retailer, and (2) any person that is not a telecommunications retailer that installs,
owns, operates or controls equipment in the public right -of -way that is used or
designed to be used to transmit telecommunications in any form.
(h) "Telecommunications retailer" or "retailer" or "carrier" means and
includes every person engaged in the business of making sales of
telecommunications at retail as defined in this Section. The Village may, in its
discretion, upon application, authorize the collection of the fee hereby imposed by
any retailer not maintaining a place of business within this State, who, to the
satisfaction of the Village, furnishes adequate security to ensure collection and
payment of the fee. When so authorized, it shall be the duty of such retailer to pay
the fee upon all of the gross charges for telecommunications in the same manner
JKS 162172 . 1 October 24, 1997 5
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
and subject to the same requirements as a retailer maintaining a place of business
within the Village.
(i) "Wireless telecommunications" includes cellular mobile telephone
services, personal wireless services as defined in Section 704(C) of the
Telecommunications Act of 1996 (Public Law No. 104 -104), 42 U.S.C.
§332(c)(7), as now or hereafter amended, including all commercial mobile radio
services, and paging services.
Sec. 9 -43. Registration of Telecommunications Providers.
(a) Every telecommunications provider as defined by this Article shall
register with the Village within thirty (30) days after the effective date of this
Article or upon becoming a telecommunications provider, whichever is later, on a
form to be provided by the Village, provided, however, that any
telecommunications retailer that has filed a return pursuant to Section 9 -45(c) of
this Article shall be deemed to have registered in accordance with this Section.
(b) Every telecommunications provider who has registered with the
Village pursuant to Section 9 -43(a) has an affirmative duty to submit an amended
registration form or current return as required by Section 9- 45(c), as the case may
be, to the Village within thirty (30) days from the date of the occurrence of any
changes in the information provided by the telecommunications provider in the
registration form or most recent return on file with the Village.
Sec. 9 -44. Municipal Telecommunications Infrastructure Maintenance Fee.
(a) A Village telecommunications infrastructure maintenance fee is
hereby imposed upon all telecommunications retailers in the amount of one percent
(1.0 %) of all gross charges by the telecommunications retailer to service addresses
within the Village for telecommunications originating or received in the Village.
(b) Upon the effective date of the infrastructure maintenance fee
authorized in this Article, the Village infrastructure maintenance fee authorized
hereunder shall be the only fee or compensation for the use of all public rights -of-
way within the Village by telecommunications retailers. Imposition of the
JKS 162172 . 1 October 24, 1997 6
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
infrastructure maintenance fee provided under this Article does not, however,
serve as a limitation on the levying of any taxes or imposition of any fees otherwise
authorized by law.
(c) The Village telecommunications infrastructure maintenance fee
authorized by this Section shall be collected, enforced and administered as set forth
in Section 9 -45 of this Article.
Sec. 9 -45. Collection, Enforcement and Administration of
Telecommunications Infrastructure Maintenance Fees
(a) A telecommunications retailer shall charge to and collect from each
customer an additional charge in an amount equal to the Village infrastructure
maintenance fee attributable to that customer's service address.
(b) Unless otherwise approved by the Village Manager, the
infrastructure maintenance fee shall be remitted by the telecommunications retailer
to the Village not later than the last day of the month subsequent to the month in
which a bill is issued to the customer; provided, however, that the
telecommunications retailer may retain an amount not to exceed two percent (2 %)
of the Village infrastructure maintenance fee collected by it to reimburse itself for
expenses incurred in accounting for and remitting the fee.
(c) Remittance of the municipal infrastructure fee to the Village shall
be accompanied by a return, in a form to be prescribed by the Village Manager,
which shall contain such information as the Village Manager may reasonably
require.
(d) Any infrastructure maintenance fee required to be collected
pursuant to this Article and any such infrastructure maintenance fee collected by
such telecommunications retailer shall constitute a debt owed by the
telecommunications retailer to the Village. The charge imposed under Section
9 -45(a) by the telecommunications retailer pursuant to this Article shall constitute
a debt of the purchaser to the telecommunications retailer who provides such
services until paid and, if unpaid, is recoverable at law in the same manner as the
original charge for such services.
JKS 162172.1 October 24, 1997 7
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
(e) If it shall appear that an amount of infrastructure maintenance fee
has been paid that was not due under the provisions of this Article, whether as a
result of a mistake of fact or an error of law, then such amount shall be credited
against any infrastructure maintenance fee due, or to become due, under this
Article, from the telecommunications retailer who made the erroneous payment;
provided, however, the Village Manager may request, and telecommunications
retailer shall provide, written substantiation for such credit. However, no claim for
such credit may be made more than three (3) years after the date of the erroneous
payment unless (1) the credit is used only to offset a claim of underpayment made
by the Village within the applicable statutory period of limitations, and (2) the
credit derives from an overpayment made by the same telecommunications retailer
during the applicable statutory period of limitations.
(f) Amounts paid under this Article by telecommunications retailers
shall not be included in the tax base under any of the following acts as described
immediately below:
(1) "gross charges" for purposes of the Telecommunications
Excise Tax Act;
(2) "gross receipts" for purposes of the municipal utility tax as
prescribed in Section 8 -11 -2 of the Illinois Municipal Code;
(3) "gross charges" for purposes of the municipal
telecommunications tax as prescribed in Section 8 -11 -17 of the Illinois Municipal
Code; or
(4) "gross revenue" for purposes of the tax on annual gross
revenue of public utilities prescribed in Section 2 -202 of the Public Utilities Act.
(g) The Village shall have the right, in its discretion, to audit the books
and records of all telecommunications retailers subject to this Article to determine
whether the telecommunications retailer has properly accounted to the Village for
the Village infrastructure maintenance fee. Any underpayment of the amount of
the Village infrastructure maintenance fee due to the Village by the
telecommunications retailer shall be paid to the Village, plus five percent (5 %) of
JKS 162172 . 1 October 24, 1997 8
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
the total amount of the underpayment determined in an audit, plus any costs
incurred by the Village in conducting the audit in an amount not to exceed five
percent (5 %) of the total amount of the underpayment determined in an audit.
Said sum shall be paid to the Village within twenty -one (2 1) days after the date of
issuance of an invoice for same.
(h) The Village Manager, or his or her designee, may promulgate such
further or additional regulations concerning the administration and enforcement of
this Article, consistent with its provisions, as may be required from time to time
and shall notify all telecommunications retailers that are registered pursuant to
Section 9 -43 of this Article of such regulations.
Sec. 9 -46. Compliance with Other Laws.
Nothing in this Article shall excuse any person or entity from obligations
imposed under any law, including but not limited to:
(a) generally applicable taxes; and
(b) standards for construction on, over, under or within, use of or
repair of the public rights -of -way, including standards relating to free-
standing towers and other structures upon the public rights -of -way, as
provided; and
(c) any liability imposed for the failure to comply with such generally
applicable taxes or standards governing construction on, over, under or within, use
of or repair of the public rights -of -way; and
(d) compliance with any ordinance or provision of this Code
concerning uses or structures not located on, over or within the right -of -way.
Sec. 9 -47. Existing Franchises and Licenses.
Any franchise, license or similar agreements between telecommunications
retailers and the Village entered into before the effective date of this Article
regarding the use of public rights -of -way shall remain valid according to and for
JKS 162172 . 1 October 24, 1997 9
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
their stated terms except for any fees, charges or other compensation to the extent
waived.
Sec. 9-48. Penalties.
Any telecommunications provider who violates, disobeys, omits, neglects
or refuses to comply with any of the provisions of this Article shall be subject to
fine in accordance with the general penalty provisions of the Village Municipal
Code.
Sec. 9-49. Enforcement.
Nothing in this Article shall be construed as limiting any additional or
further remedies that the Village may have for enforcement of this Article.
Sec. 9-50. Severability.
If any section, subsection, sentence, clause, phrase or portion of this Article
is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portions
hereof.
Sec. 9-51. Conflict.
This Article supersedes all Articles or parts of Articles adopted prior hereto
which are in conflict herewith, to the extent of such conflict.
SECTION Waiver and Fee Implementation.
THREE:
(a) The Village hereby waives all fees, charges and other compensation
that may accrue, after the effective date of the waiver, to the Village by a telecommunications
retailer pursuant to any existing Village franchise, license or similar agreement with a
telecommunications retailer during the time the Village imposes the telecommunications
infrastructure maintenance fee. This waiver shall only be effective during the time the
infrastructure maintenance fee provided for in this Ordinance is subject to being lawfully imposed
JKS 162172 . 1 October 24, 1997 10
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
on the telecommunications retailer and collected by the telecommunications retailer from the
customer.
(b) The Village Clerk shall send a notice of the waiver by certified mail,
return receipt requested, to each telecommunications retailer with whom the Village has a
franchise.
(c) The Village infrastructure maintenance fee provided for in this
Ordinance shall become effective and imposed on the first day of the month not less than ninety
(90) days after the Village provides written notice by certified mail to each telecommunications
retailer with whom the Village has an existing franchise, license or similar agreement that the
Village waives all compensation under such existing franchise, license or similar agreement during
such time as the fee is subject to being lawfully imposed and collected by the retailer and remitted
to the Village. The infrastructure maintenance fee shall apply to gross charges billed on or after
the effective date as established in the preceding sentence.
JKS 162172 . 1 October 24, 1997 11
ORDINANCE NO. 0 -97- 4 8
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE OF
DEERFIELD BY THE ADDITION OF ARTICLE 8 OF CHAPTER 9 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE
SECTION Effective Date. That this Ordinance shall be in full force and effect from
FOUR: and after its passage, approval and publication as provided by law.
AYES: Ehlers, Heuberger, Rosenthal, Seidman, Swanson., Swartz (6)
NAYS: None (0 )
ABSENT: None (0 )
PASSED: This 3rd day of
APPROVED: This 3rd day of
November
November
JKS 162172 . 1 October 24, 1997 12
A.D., 1997.
A.D., 1997.
VILLXGE PRESIDENT