HomeMy WebLinkAboutRESOLUTION - 4-98 - 1/27/1998 - RELEASE SURETY FRANCHISE BONDRESOLUTION NO. 4-98
A RESOLUTION RELEASING SURETY FRANCHISE BOND #BLZ- 150927 1,
( ACCEPTED BY RESOLUTION NO. 82-84.) FOR AMERICAN CABLESYSTEMS
OF ILLINOIS, MASSACHUSETTS LIMITED PARTNERSHIP AND ACCEPTING
FRANCHISE BOND NO. U9000097-0769 FROM UNITED PACIFIC INSURANCE
COMPANY IN THE AMOUNT OF FIFTY THOUSAND ($50,000.00 DOLLARS) AND
ACCEPTING IRREVOCABLE LETTER OF CREDIT NO. I-047-CFSI-50079807
BANKBOSTON, N.A. EXPIRING DECEMBER 31, 1998 IN THE AMOUNT OF $20,000.00
TO INSURE FAITHFUL PERFORMANCE BY GRANTEE MEDIA ONE OF NORTHERN
ILLINOIS INC.
NOW, THEREFORE BE IT RESOLVED by the President and Board of Trustees of the
Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois:
Section 1: That the President and Board of Trustees do hereby authorize the release of Surety
Franchise Bond #BLZ-1509271 (Accepted by Resolution No. 82-84) in the amount of $50,000.00 for
American Cablesystems of Illinois, from Massachusetts Bay Insurance Company.
Section 2: That the President and Board of Trustees do hereby authorize the acceptance and
placing on file of Surety Franchise Bond No. U9000097-0769 from United Pacific Insurance Company
in the amount of $50,000.00, effective May 13, 1997, to fulfill and perform each term and condition of
the Village of Elk Grove Village Cable Communications Enabling Ordinance No. 2541 and Franchise
Agreement Resolution No. 13-97 entered into between Media One of Northern Illinois, Inc. and Elk
Grove Village. A copy of said Bond being attached hereto and incorporated herein.
Section 3: That the terms of said Bond are such that Media One of Northern Illinois, Inc. is
obligated to perform each and every provision of its Franchise Agreement with the Village as well as the
terms and conditions of the Village's Cable Communications Enabling Ordinance adopted March 11,
1997 and upon a failure to so do, the Village may proceed against Media One of Northern Illinois, Inc. as
well as its Surety, United Pacific Insurance Company.
Section 4: That the President and Board of Trustees do hereby authorize the acceptance of
Irrevocable Letter of Credit No. I-047-CFSI-50079807 dated December 11, 1997 of BankBoston, N.A.,
Boston, MA. in the amount of $20,000.00 to secure the obligations of Media One of Northern Illinois,
Inc. pursuant to the terms and provisions of that certain Franchise Agreement adopted by Resolution No.
13-97, Said Letter of Credit expiring December 31, 1998.
Section 4: That this Resolution shall be in full force and effect from and after its passage and
approval according to law.
VOTE: AYES: 6 NAYS: 0 ABSENT: 0
PASSED this 27th day of January , 1998.
APPROVED this 27th day of January , 1998.
Craig B. Johnson
Village President
ATTEST:
Patricia S. Smith
Village Clerk
FRANCHISE BOND
Bond No. U9000097-0769
KNOW ALL BY THESE PRESENTS, That we, MediaOne of Northern Illinois. Inc. . as Principal, and United
Pacific Insurance Company.a Pennsylvania corporation. 4 Penn Center Plaza. Philadelphia. PA 19103 , as
Surety, are held and bound unto Elk Grove Village... 901 Wellington Avenue, Elk Grove. IL 60007 , as
Obligee, in the penal sum of Fifty Thousand and no/100 Dollars ($50.000.00"` 1, lawful money of the United
States of America, to the payment of which, well and truly to be made, we hereby bind ourselves and our heirs,
administrators, successors, and assigns, jointly and severally, firmly by these presents.
WHEREAS, The above bounden Principal has entered into a written agreement with the Obligee which grants a
Franchise to the Principal to construct, operate and maintain a cable television system located within said Elk
Grove Village . Principal has agreed to faithfully perform and observe and fulfill all terms and conditions of said
Franchise Agreement referred to above and said agreement is hereby made a part of this bond with like force and
effect as if herein set forth in length.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, That if the above named Principal, its
successors or assigns, does and shall well and truly observe, perform and fulfill its obligations as set forth in the
above mentioned agreement, for which a bond must be posted, then this obligation shall be void, otherwise to
remain in full force and effect.
PROVIDED, HOWEVER, That this bond shall be subject to the following express conditions:
FIRST: That in the event of a default on the part of the Principal, its successors or assigns, a written statement of
such default with full details thereof shall be given to the Surety promptly, and in any event, within thirty (30) days
after the Obligee shall learn of such default, such notice to be delivered personally or by mail to Surety at its Home
Office, at Philadelphia, Pennsylvania, by registered mail.
SECOND: That no claim, suit or action under this bond by reason of any such default shall be brought against the
Surety unless asserted or commenced within twelve (12) months after the effective date of any termination or
cancellation of this bond.
THIRD: That this bond may be terminated or canceled by the Surety by giving 30 days prior notice in writing from
the Surety to the Principal and the Obligee, such notice given by certified mail. Such termination or cancellation
shall not affect any liability incurred or accrued under this bond prior to the effective date of such termination or
cancellation. The liability of the Surety shall be limited to the amount set forth above and is not cumulative.
FOURTH: That no right of action shall accrue under this bond to or for the use of any person other than the
Obligee, its successors and assigns.
FIFTH: This bond is effective as of May 13, 1997
Signed and sealed August 27. 1997 .
Medl�aaOne of Northern Illinois, Inc.
L
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By. �i 'l J&
Alyson M. buchanan, Manager, Risk Finance and Insurance
United Pacific Insurance Company
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By: �!
Lori Whitted, Attorney -in -Fact
This bond replaces and supersedes Massachusetts Bay Insurance Company Franchise Bond, Bond No. BLZ 1509271, dated October
30, 1984 for American Cablesystems of Illinois, a Massachusetts Limited Partnership.
RELIANCE SURETY COMPANY RELIANCE INSURANCE COMPANY
UNITED PACIFIC INSURANCE COMPANY RELIANCE NATIONAL INDEMNITY COMPANY
ADMINISTRATIVE OFFICE, PHILADELPHIA, PENNSYLVANIA
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that RELIANCE SURETY COMPANY is a corporation duly organized under the laws of the State of Del-
aware, and that RELIANCE INSURANCE COMPANY and UNITED PACIFIC INSURANCE COMPANY, are corporations duly organized under the laws
of the Commonwealth of Pennsylvania and that RELIANCE NATIONAL INDEMNITY COMPANY is a corporation duly organized under the laws of
the State of Wisconsin (herein collectively called "the Companies") and that the Companies by virtue of signature and seals do hereby make,
constitute and appoint Thomas J. Jochums, Lori Whitted, Kenneth D. Houtz, Krista M. Stromberg, Patrick D. Dineen, of Seattle, Washington their
true and lawful Attorneys) -in -Fact, to make, execute, seal and deliver for and on their behalf, and as their act and deed any and all bonds and
undertakings of suretyship and to bind the Companies thereby as fully and to the same extent as if such bonds and undertakings and other
writings obligatory in the nature thereof were signed by an Executive Officer of the Companies and sealed and attested by one other of such
officers, and hereby ratifies and confirms all that their said Attorney(s)-in-Fact may do in pursuance hereof.
This Power of Attorney is granted under and by the authority of Article VII of the By -Laws of RELIANCE SURETY COMPANY,
RELIANCE INSURANCE COMPANY, UNITED PACIFIC INSURANCE COMPANY, and RELIANCE NATIONAL INDEMNITY COMPANY which
provisions are now in full force and effect, reading as follows:
ARTICLE VII - EXECUTION OF BONDS AND UNDERTAKINGS
1. The Board of Directors, the President, the Chairman of the Board, any Senior Vice President, any Vice President or Assistant Vice President or other officer designated by the Board of
Directors Shan have power and authority to (a) appoint Attorneylsl-in-Fact and to authorize them to execute on behalf of the Company, bonds and undertakings, recognizances, contracts of indemnity
and other writings obligatory in the nature thereat, and Ibl to remove any such Aaorneytsl-in-Fact at any time and revoke the power and authority given to them.
2. Attorneylslin-Fact Shall have power and authority, subject to the terms and limitations of the Power of Attorney issued to them, to execute deliver an behalf of the Company, bonds
and undertakings, recognizances, contracts of Indemnity and other writings obligatory in the nature thereof. The corporate seal is not necessary for the validity of any bonds and undertakings.
recognizances, contracts of indemnity and other writings obligatory in the nature thereof.
3. Attorney(s)-in Fact shall have power and authority to execute affidavits required to be attached to bonds, recognizances, contracts of indemnity or other conditional or obligatory
undertakings and they Shall also have power and authority to certify the financial statement of the Company and to copies of the By -Laws of the Company or any article or section thereof.
This Power of Attorney is signed and sealed by facsimile under and by authority of the following resolution adopted by the Executive and Finance Committees of the Boards of Directors of Reliance
Insurance Company, United Pacific Insurance Company and Reliance National Indemnity Company by Unanimous Consent dated as of February 28, 1994 and by the Executive and Financial
Committee of the Board of Directors of Reliance Surety Company by Unanimous Consent dated as of March 31, 1994.
'Resolved that the signatures of such directors and officers and the seal or the Company may be affixed to any such Power of Attorney or any certificates relating thereto by
facsimile,and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and any such Power so
executed and certified by facsimile signatures and facsimile seal shell be valid and binding upon the Company, in the future with respect to any bond or undertaking to which it Is
attached. -
IN WITNESS WHEREOF, the Companies have caused these presents to be signed and their corporate seals to be hereto affixed, this July 19,
1996.
RELIANCE SURETY COMPANY
3:0L RELIANCE INSURANCE COMPANY
0-N,
UNITED PACIFIC INSURANCE COMPANY
0-2-ivRELIANCE NATIONAL INDEMNITY COMPANY
_1���L•—s—V� �%`
STATE OF Washington }
COUNTY OF King } as.
On this, July 19, 1996, before me, Janet Blankley, personally appeared Mark W. Alsup, who acknowledged himself to be the Vice President of
the Reliance Surety Company, and the Vice President of Reliance Insurance Company, United Pacific Insurance Company, and Reliance National
Indemnity Company and that as such, being authorized to do so, executed the foregoing instrument for the purpose therein contained by signing
the name of the corporation by himself as its duly authorized officer.
In witness whereof, I hereunto set my hand and official seal.
— q axet
Notary kublic in and for the State of Washing n
Residing at Puyallup
I, Robyn Layng, Assistant Secretary of RELIANCE SURETY COMPANY, RELIANCE INSURANCE COMPANY, UNITED PACIFIC INSURANCE COMP-
ANY, and RELIANCE NATIONAL INDEMNITY COMPANY do hereby certify that the above and foregoing is a true and correct copy of the Power
of Attorney executed by said Companies, which is still in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 27th day gllSt is 97
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Assistant Secretary
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BankBoston, NA
Trade Services
Mail Code: 50-04-01
100 Federal Street
Boston, Massachusetts 02110
Irrevocable Standby Letter of Credit
BENEFICIARY
VILLAGE OF ELK GROVE
901 WELLINGTON AVE
ATTN: ASSISTANT VILLAGE MANAGER
ELK GROVE, IL 60007
Gentlemen:
BY ORDER OF:
(t
BankBoston
DATE: December 11, 1997
DELIVERY BY COURIER SERVICE
Credit Number:
I-047-CFSI-50079807
Opener's Reference No:
ELK GROVE
MEDIAONE OF NORTHERN ILLINOIS, INC
ATTN SHARON PEARSON
688 INDUSTRIAL DRIVE
ELMHURST, IL 60126
We hereby open in your favor our Irrevocable Standby Letter of Credit
for the account of MEDIAONE OF NORTHERN ILLINOIS, INC for a sum or sums
not exceeding a total of US DOLLARS 20,000.00 (TWENTY THOUSAND AND
N0/100 US DOLLARS) available by your draft(s) at SIGHT on OURSELVES
effective December 11, 1997 and expiring at OUR COUNTERS on December
31, 1998.
DRAFT(S) MUST BE ACCOMPANIED BY:
THE BENEFICIARY'S CERTIFIED STATEMENT THAT "MEDIAONE OF NORTHERN
ILL.,INC. HAS FAILED TO COMPLY WITH THE TERMS AND CONDITIONS OF THE
FRANCHISE AGREEMENT WITH THE VILLAGE OF ELK GROVE".
Each draft must bear upon its face the clause "Drawn under Letter of
Credit No. I-047-50079807 dated December 11, 1997 of BankBoston N.A.,
Boston, MA".
"It is a condition of this letter of credit that it shall be deemed
automatically extended for 12 months from the present or any future
expiration date hereof, unless we shall notify you by overnight courier
dated at least 60 days prior to such date that we elect not to renew
this letter of credit, such notice to be effective upon dispatch. Upon
receipt by you of such notice you may draw hereunder in accordance with
the terms contained herein.°
We hereby agree that draft(s) drawn under and in compliance with the
(continued)
Page 1
I-, -,q,1
BankBoston, N.A.
Trade Services
Mail Code: 50-04-01
100 Federal Street
Boston, Massachusetts 02110
I1P
IL
BankBoston
terms of this letter of credit will be duly honored if presented to the
above-mentioned drawee bank on or before December 31, 1998 or any other
future extended expiration date.
Except so far as otherwise expressly stated herein, this letter of
credit is subject to the "Uniform Customs and Practice for Documentary
Credits (1993 Revision), International Chamber of Commerce Publication
No. 500".
Kindly address all correspondence
attention of our Letter of Credit
02105, attention ANDREI BOURDINE,
appears above. Telephone inquiries
(617)434-8714.
regarding this letter of credit to the
Operations, P.O. BOX 1763, BOSTON, MA
mentioning our reference number as it
can be made to ANDREI BOURDINE at
Page 2
THE MASSACHUSETTS BAY INSURANCE COMPANY
7130 Glen Forest Drive, Suite 400
Richmond, VA 23226
NOTICE OF CANCELLATION
Elk Grove Village
Elk Grove, IL 60007
Bond No.: BLZ -1509271
WHEREAS, on or about the 30th day of October 1984 The Massachusetts Bay
Insurance Company, as Surety, executed its bond in the penaltyof Fifty Thousand ---------------
($ 50.000.00 ) on behalf of American Cablesystems of IL of The Pilot House,
Boston, MA 02110
as Principal, in favor of Elk Grove Village as Obligee,
(Nature of Risk) CA TVI Franchise Bond
WHEREAS, said bond, by its terms, provides that the said Surety shall have the right to
terminate its suretyship thereunder by serving notice of its election so to do upon the said
Obligee, and
WHEREAS, said Surety desires to take advantage of the terms of said bond and does
hereby elect to terminate its liability in accordance with the provisions thereof.
NOW, THEREFORE, be it known that The Massachusetts Bay Insurance Company shall
on the date of NHav 16. 1997 be released from all liability by reason of any default thereafter by the
said Principal.
Signed and dated this 12th day of Ma
v 1997.
ACCEPTED:
OBLIGEE
0
THE MASSACHUSETTS BAY INSURANCE COMPANY
By:
Deborah D. Allen
Craig B. Johnson, Village President January 27, 1998
Name / Title Date