1997-071o e
ORDINANCE NO. 97- 71
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE
OF BUFFALO GROVE BY THE ADDITION OF CHAPTER 3.56 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE
MAINTENANCE FEE
WHEREAS, the Village of Buffalo Grove (the "Village ") is a home -rule municipality in
accordance with the Constitution of the State of Illinois of 1970; and
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; and
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 "); and
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 rights -of -way and other public rights -of -way for
telecommunications activity within the municipal boundaries of the Village, including the recovery
of reasonable costs for regulating the use of all public rights -of -way within its municipal boundaries
for telecommunications activity.
NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the
Village of Buffalo Grove as follows:
Section 1. Recitals. The facts and statements contained in the preamble to this
Ordinance are found to be true and correct and are hereby adopted as part of this Ordinance.
Section 2. Adoption of Fee. Chapter 3.5 6, Municipal Telecommunication Infrastructure
Maintenance Fee is hereby added to the Municipal Code of the Village of Buffalo Grove to read as
follows:
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Chapter 3.56 - Municipal Telecommunications Infrastructure Maintenance Fee.
3.56.010 Definitions.
As used in this Chapter, 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 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
NALEGAM MFORDWORDNADAF -2-
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 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 and 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.
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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 service, computer exchange services, private line services, specialized mobile
radio services, or any other 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 telecommunica-
tions 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 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.
3.56.020 Registration of Telecommunications Providers.
A. Every telecommunications provider as defined by this Chapter shall register with the
Village within 30 days after the effective date of this Chapter or becoming a telecommunications
provider, whichever is later, on a form to be provided by the Village, provided, however, that any
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telecommunications retailer that has filed a return pursuant to Section 3.56.040.C. of this Chapter
shall be deemed to have registered in accordance with this Section.
B. Every telecommunications provider who has registered with the Village pursuant to
Section 3.56.020.A. has an affirmative duty to submit an amended registration form or current return
as required by Section 3.56.040.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.
3.56.030 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 %) of all gross charges
charged by the telecommunications retailer to service addresses within the Village for telecommuni-
cations originating or received in the Village.
B. Upon the effective date of the infrastructure maintenance fee authorized in this
Chapter, 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 infrastructure maintenance fee provided under this Chapter 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 3.56.040 of this
Chapter.
3.56.040 Collection, Enforcement, and Administration of Telecommunications Infra-
structure 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.
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D. Any infrastructure maintenance fee required to be collected pursuant to this Chapter
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 3.56.040.A. by the telecommunications retailer pursuant to this Chapter 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.
E. If it shall appear that an amount of infrastructure maintenance fee has been paid that
was not due under the provisions of this Chapter, 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 Chapter, 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 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 Chapter 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;
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 Chapter 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 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.
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H. The Village Manager, or his or her designee, may promulgate such further or
additional regulations concerning the administration and enforcement of this Chapter, consistent with
its provisions, as may be required from time to time and shall notify all telecommunications retailers
that are registered pursuant to Section 3.56.020 of this Chapter of such regulations.
3.56.050 Compliance With Other Laws. Nothing in this Chapter 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.
3.56.060 Existing Franchises and Licenses. Any franchise, license, or similar agreements
between telecommunications retailers and the Village entered into before the effective date of this
Chapter regarding the use of public rights -of -way shall remain valid according to and for their stated
terms except for any fees, charges or other compensation to the extent waived.
3.56.070 Penalties. Any telecommunications provider who violates, disobeys, omits,
neglects or refuses to comply with any of the provisions of this Chapter shall be subject to fine in
accordance with the general penalty provisions of Chapter 1.08 the Village Municipal Code.
3.56.080 Enforcement. Nothing in this Chapter shall be construed as limiting any additional
or further remedies that the Village may have for enforcement of this Chapter.
3.56.090 Severability. If any section, subsection, sentence, clause, phrase or portion of this
Chapter 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.
3.56.100 Conflict. This Chapter supersedes all Chapters or parts of Chapters adopted prior
hereto which are in conflict herewith, to the extent of such conflict.
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Section 3. Waiver and Fee Implementation.
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 on the telecommunications retailer and collected by
the telecommunications retailer from the customer.
B. The Village 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.
Section 4. Effective Date. This Ordinance shall take effect immediately upon its passage,
approval and publication in pamphlet form.
ADOPTED this 22ndday of September , 1997, pursuant to a roll call vote as follows:
AYES: 6 - Marienthal, Reid, Rubin, Braiman, Hendricks, Glover
NAYS: 0 - None
ABSENT:
0 - None
ABSTENTION: 0 - None
APPROVED by me this 22nd day of =S�tember
Sidney IlMathias, President of the Village of
Buffalo Grove, Cook and Lake County, Illinois
ATTEST:
Vill ge Clerk
Published thisc�o day of , 1997.
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r
ORDINANCE NO. 97- 71
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE VILLAGE
OF BUFFALO GROVE BY THE ADDITION OF CHAPTER 3.56 IMPOSING A
MUNICIPAL TELECOMMUNICATIONS INFRASTRUCTURE
MAINTENANCE FEE
WHEREAS, the Village of Buffalo Grove (the "Village ") is a home -rule municipality in
accordance with the Constitution of the State of Illinois of 1970; and
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; and
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 "); and
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 rights -of -way and other public rights -of -way for
telecommunications activity within the municipal boundaries of the Village, including the recovery
of reasonable costs for regulating the use of all public rights -of -way within its municipal boundaries
for telecommunications activity.
NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the
Village of Buffalo Grove as follows:
Section 1. Recitals. The facts and statements contained in the preamble to this
Ordinance are found to be true and correct and are hereby adopted as part of this Ordinance.
Section 2. Adoption of Fee. Chapter 3.56, Municipal Telecommunication Infrastructure
Maintenance Fee is hereby added to the Municipal Code of the Village of Buffalo Grove to read as
follows:
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Chapter 3.56 - Municipal Telecommunications Infrastructure Maintenance Fee.
3.56.010 Definitions.
As used in this Chapter, 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 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
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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 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 and 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.
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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 service, computer exchange services, private line services, specialized mobile
radio services, or any other 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 telecommunica-
tions 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 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.
3.56.020 Registration of Telecommunications Providers.
A. Every telecommunications provider as defined by this Chapter shall register with the
Village within 30 days after the effective date of this Chapter or becoming a telecommunications
provider, whichever is later, on a form to be provided by the Village, provided, however, that any
NALEGAUIMFORDMORDNAJMF -4-
telecommunications retailer that has filed a return pursuant to Section 3.56.040.C. of this Chapter
shall be deemed to have registered in accordance with this Section.
B. Every telecommunications provider who has registered with the Village pursuant to
Section 3.56.020.A. has an affirmative duty to submit an amended registration form or current return
as required by Section 3.56.040.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.
3.56.030 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 %) of all gross charges
charged by the telecommunications retailer to service addresses within the Village for telecommuni-
cations originating or received in the Village.
B. Upon the effective date of the infrastructure maintenance fee authorized in this
Chapter, 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 infrastructure maintenance fee provided under this Chapter 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 3.56.040 of this
Chapter.
3.56.040 Collection, Enforcement, and Administration of Telecommunications Infra-
structure 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.
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a
D. Any infrastructure maintenance fee required to be collected pursuant to this Chapter
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 3.56.040.A. by the telecommunications retailer pursuant to this Chapter 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.
E. If it shall appear that an amount of infrastructure maintenance fee has been paid that
was not due under the provisions of this Chapter, 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 Chapter, 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 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 Chapter 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;
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 Chapter 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 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.
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H. The Village Manager, or his or her designee, may promulgate such further or
additional regulations concerning the administration and enforcement of this Chapter, consistent with
its provisions, as may be required from time to time and shall notify all telecommunications retailers
that are registered pursuant to Section 3.56.020 of this Chapter of such regulations.
3.56.050 Compliance With Other Laws. Nothing in this Chapter 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.
3.56.060 Existing Franchises and Licenses. Any franchise, license, or similar agreements
between telecommunications retailers and the Village entered into before the effective date of this
Chapter regarding the use of public rights -of -way shall remain valid according to and for their stated
terms except for any fees, charges or other compensation to the extent waived.
3.56.070 Penalties. Any telecommunications provider who violates, disobeys, omits,
neglects or refuses to comply with any of the provisions of this Chapter shall be subject to fine in
accordance with the general penalty provisions of Chapter 1.08 the Village Municipal Code.
3.56.080 Enforcement. Nothing in this Chapter shall be construed as limiting any additional
or further remedies that the Village may have for enforcement of this Chapter.
3.56.090 Severability. If any section, subsection, sentence, clause, phrase or portion of this
Chapter 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.
3.56.100 Conflict. This Chapter supersedes all Chapters or parts of Chapters adopted prior
hereto which are in conflict herewith, to the extent of such conflict.
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Section 3. Waiver and Fee Implementation.
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 on the telecommunications retailer and collected by
the telecommunications retailer from the customer.
B. The Village 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.
Section 4. Effective Date. This Ordinance shall take effect immediately upon its passage,
approval and publication in pamphlet form.
ADOPTED this 22ndday of September , 1997, pursuant to a roll call vote as follows:
AYES: 6 - Marienthal, Reid, Rubin, Braiman, Hendricks, Glover
NAYS: 0 - None
ABSENT: 0 - None
ABSTENTION: 0 - None
APPROVED by me this 22nd day of September X97,
Sidney FT Mathias, President of the Village of
Buffalo Grove, Cook and Lake County, Illinois
ATTEST:
Village Clerk
Published thisc o2 day of 51997.
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