HomeMy WebLinkAboutCity of Ithaca Committee on Cable Television Recommendation City of Ithaca, New York
COMMITTEE ON CABLE TELEVISION
RECOMMENDATION
On request of Ceracche Television
Corporation for Permanent Rate Increase
February 9, 1976
I. Introduction
The Committee on Cable Television (hereinafter called Committee)
appointed by the Common Council of the City of Ithaca in the summer of
1975 was instructed to "make recommendations to the Common Council
concerning changes to be incorporated in the future renegotiation of
the cable television franchise." In addition our mandate authorizes us
to examine other matters. It was further understood that it was the charge
of this Committee to make to Common Council a recommendation concerning
the continuation of a temorary rate increase of $1.00 granted by Common
Council to Ceracche Cable Television Corporation. The temporary rate
increase expires on April 30, 1976.1
In preparation for such a recommendation, this Committee has since
September 1975 undertaken to investigate the reliability of accounts
and records of Ceracche Television Corporation and subsidiaries to
determine if the Corporation needs increased revenue provided by the
rate increase. We have calculated the rate of profit of the Corporation
and attempted to assess what a "reasonable" rate of profit would be.
---------------------
lIt should be noted that the rate increase was approved by the
New York State Commission on Cable Television.
Rate Recommendation -- 2
The Committee has also considered the appropriate relationship of
Ceracche Television Corporation to the City of Ithaca with respect to
responsibility for providing audited accounts, with respect to the franchise
tax, and with respect to the provision of public access to cable television
time.
II. Investigation
A. Ceracche Accounts and Records
This Committee felt that if it could be determined that Ceracche's
records accurately reflect the condition of corporate revenues and
expenses, they could, be used as the basis for a recommendation to Common
Council. For the purpose of reaching this determination, funds were
granted by Common Council to employ a Certified Public Accountant, Alan
H. Cohen of Ithaca. The Committee assigned Cohen the task of examining
Ceracche's records, within the limits of time and funding available,
to determine if they appeared to be accurate. It was understood that
neither time nor funds were available to secure an audited report.
Operating under these constraints Cohen proposed to conduct an
Internal Revenue Service type examination to determine the validity of the
records maintained by Ceracche. Appended to this recommendation as
appendix A is a copy of the report produced by Cohen at the direction of
this Committee. The report dated December 30, 1975 reflects a series
of tests conducted by Cohen in the completion of his assignment.
Cohen's examination included an independent test of revenue based
upon the number of subscribers connected to the cable system during the
months of April and September 1975. This test revealed that Cohen's
estimated income and that reported by Ceracche were very close. Thus,
concluded Cohen, one may accept the stated revenues as being accurate.
Tests of expenses included examination of federal payroll reports,
costs for fringe benefits, depreciation, bad debts, and other expenses.
Each of these tests compared favorably with information reported by
Ceracche. Thus one may conclude that Ceracche is accurately reporting
expenses.
In addition, the report includes a projection for fiscal 1976 rates
which is determined to be in line with those projections generated by
Ceracche's accountants. The results of Cohen's report suggests that the
accounting work done for and at the request of Ceracche is of high
quality.
It must be emphasized that Cohen's report is not an audited analysis
and may not be construed as such. It, therefore, lacks the quality of
a fully audited report. On the other hand a number of tests were conducted
that indicate that the accounting information provided by Ceracche is of
t r
Rate Recommendation -- 3
high quality. With this in mind this Committee used Unaudited Annual
statements for the years 1971, 1972, 1973, 1974, and 1975, federal income
tax return for 1975, and the required accounting form provided to the
New York State Commission on Cable Television for 1975. (Each of the
foregoing years are fiscal years and extend from May 1 of the preceeding
year through April 30 of the stated year.)
B. Additional Considerations Relevant to Rate Determination
In studying the records of Ceracche Television Corporation, this
Committee found two additional considerations which we believe are relevant
to a determination of rates to be charged the citizens of Ithaca for
cable television. These considerations are: 1. that Ceracche
Television Corporation is currently in a highly capital intensive position;
and, 2. that Ceracche Television Corporation holds two other companies,
one related to cable television service and one not related to this
service.
1. For the past two years, Ceracche Television Corporation has
been installing a series of new amplifiers throughout the system in order
to expand the current twelve channel capacity to twenty-three channel
capacity. These amplifiers represent a major capital investment, the cost
of which is being depreciated over a period of seven to ten years.
Ceracche estimates that the replacement of old amplifiers with the newer,
larger capacity ones should be completed throughout the county in one
year and in the city in less time. He informed this Committee that 90% I
of amplifiers in the city have been replaced. It should be noted that i
while the old amplifiers are of the tube type and subject to a variety ;
of problems, the new amplifiers are constructed of solid state components
which exhibit less sensitivity to age and outside influences.
The New York State Commission on Cable Television Form AFR-1 filed
by Ceracche Television Corporation for the year ending April 30, 1975
(attached to this report as Appendix B) indicates that 95% of the residents
of the City of Ithaca are connected to the Cable System. Furthermore,
although the corporation continues to extend new lines into new parts of
the county, this project can continue for a limited time only.
Ceracche is of the opinion that the cable corporation will continue
to replace amplifiers or add new equipment throughout the system at
approximately the present rate for years to come. As an example, he
cited a recent State Commission requirement that all television cables
be grounded at each home which would mean an investment of
approximately $150,000.
This Committee wonders if it will be necessary to continue the
present rate of capital investment for many years to come. Experience
nationally indicates that many systems continue replacing or adding
new equipment at a rapid rate for several years, but eventually they
move into a position where new capital investments can be added at a
Rate Recommendation -- 4
lower rate. A reduced rate of investment would naturally reduce the intense
need for capital which, in turn, would increase the profit, assuming
other factors remained relatively constant.
2. Ceracche Television Corporation owns Ceracche and Company, a microwave
company which transmits television signals to Ceracche Television
Corporation and two other cable companies in the area. The Corporation
also owns, presumably as an investment, Westview Heights, undeveloped
real estate which bears no relationship to the cable service. The
Committee is of the opinion that since Ceracche and Company provides
services necessary to the provision of cable television service by
Ceracche Television Corporation, it is desirable that they be
considered jointly. Furthermore, provision of microwave services by
this company to other cable operators ultimately reduces the cost of
microwave service to Ithaca subscribers.
This Committee does not oppose Ceracche Television Corporation owning
Westview Heights. However, Westview Heights provides no services or
benefits to cable subscribers. Consequently this Committee believes that
the costs of operating Westview Heights must not constitute part of the
operating costs of Ceracche Television Corporation.
Ceracche may invest part of the Ceracche Television Corporation profits
in Westview Heights if he wishes without any ill consequences to the subscribers.
However, this Committee opposes including investment in Westview Heights
as part of the total Ceracche Television capital investment when fair
rate of return is computed as a fraction of capital investment.
III. Determining a Reasonable Rate of Profit
A. Methods and Considerations in Calculating Profit
Two basic methods for calculating rate of profit are: 1. as a
percentage of gross receipts; and, 2. as a percentage of stockholder
equity. Apart from rate of profit, another method for determining the
need for an increase in revenue derives from 3. a demonstrated need to
invest in large new capital expenses. As stated above, this Committee
sees no major new expenses contemplated for that portion of the system
in the city of Ithaca: we, therefore, see no demonstrated need to
allow for large additional capital expenses. Ceracche has asked for
no special consideration in this area. Finally, as will be noted
below the first two methods of computing rate of return render
substantially different results.
This Committee is of the opinion that the most realistic method for
computing profit for a cable television company must be based on invested
capital. This is the method used by Public Service Commissions as the
basis for calculating profit for public utilities. And Ceracche's
i L
Rate Recommendation -- 5
belief to the contrary, cable television has many of the qualities of a.
public utility because: 1.. it is a natural monopoly, 2. it is
franchized by government, 3. it provides a service which m ost of the
public requires. Ceracche includes costs for money borrowed in the form
of notes or mortgages as part of his operating costs. Thus it is
unnecessary for this Committee to consider that capital in determining
a fair rate of return. The remaining capital investment in the
corporation is in the form of stockholder equity. In calculating a
reasonable rate of return, we used stockholder equity as capital upon
which return was computed.
B. Determining a Reasonable Rate of Profit
This Committee contacted the Federal Communications Commission to
ask their estimate of a reasonable rate of return for a cable system.
The economist in the cable bureau indicated that the FCC presently does
not have any standard in determining the reasonableness of a profit.
He indicated that the industry is presently in a capital intensive
position which will not continue forever, therefore conclusive determin-
ations were not within the purview of the FCC. He indicated, however,
that some cable executives believe that where a cable system is in a
high growth position facing the need to make large capital investments,
the profit should range as high as 25% of stockholder equity. This
Committee points out that this is not the case for that portion of the
Ceracche Television Corporation operating within the city limits of
Ithaca. This Committee is further of the understanding that the New
York State Commission on Cable Television does not have a standard for
reasonable rate of return on invested capital because of the varying
stages of growth in the industry.
Lacking definitive answers within the cable industry, the Committee
recognized that public utilities typically realize a five to ten percent
rate of return on investment--in some cases higher because of special
needs--and concluded that a return of ten percent on invested capital
would be reasonable.
C. Computing Rate of Return or Profit
1
1. As percent of gross receipts. In a summary dated September 17,
1975 (attached as appendix C), Maxfield, Randolph, & Carpenter calculate
that Ceracche received a 4.1% return on gross receipts of $1,065,258 III
for the year ending April 30, 1975.
The $1.00 interm rate increase implemented on May 1, 1975 will
necessarily change the profit picture for fiscal year ending April 30,
1976. Cohen, while working for this committee, compiled a projection
of earnings for fiscal .1976 which he included in his report filed with
this recommendation. Cohen estimates that Ceracche will receive
$96,986--an amount he later verbally amended upwards to $97,736--in
after taxes profit for fiscal 1976 based upon assumptions spelled
out in the report. Cohen reports this as 7.8% of gross receipts.
Rate Recommendation -- 6
2. As percent of stockholder equity. Examining the balance sheet
appended to the Ceracche Television Corporation Federal Income Tax Return
for fiscal year ending April 30, 1975, one finds that it reflects a
stockholder equity composed of the following: capital stock, preferred--
$17,900; capital stock, common--$18,000; paid in surplus--$500; and
retained earnings--$667,641. This totals 704,041. However part of
this retained earnings has been lodged in Westview Heights. Specifically,
the balance sheet shows $72,390 in common stock held by Ceracche Television
Corporation in Westview Heights. Since this committee disallows Westview
Heights as part of the cable service, the $72,390 in stockholder equity
must be deducted from the $704,041 leaving a net stockholder equity of
$631,651 associated with the cable television business. The $631,651
is the basis upon which computation of rate of return for cable services
is most appropriately computed.
Using the Ceracche 1975 Federal Income Tax Return the actual profit
received for the fiscal year ending April 30, 1975 was found to be $61,821
before taxes. This amount results from the following: reported Ceracche
Television Corporation profit--$60,708; reported Ceracche & Company profit--
($3,734) ; disallowed expenses reported to reduce profit: contributions--
$2,050 and profit sharing expenses--$2,797. Thus the before taxes profit
on stockholder equity was 9.79%. It was the conclusion of this Committee
that this rate of return was not excessive.
If we project profit for fiscal 1976 as a percent of stockholder
equity, we find that the rate of return is 14.6%. This computation uses
the figures for 1976 projected by Alan Cohen with one exception: it
assumes that approximately $4,000 of the $43,419 profit for 1975 would be
invested in Westview Heights and it assumes the balance will enter
retained earnings associated with the cable operations.
This rate of return--14.6%--exceeds this Committee's standard for
reasonable rate of return for invested capital. Under these standards,
the appropriate rate for Ithaca subscribers for fiscal year ending
April 30, 1976 should not have exceeded $5.34.
IV. Rate Recommendation
This Committee is of the view that it has no authority to make
recommendations regarding the rate of return for fiscal year ending
April 30, 1976, but it observes that the rate approved for that year
appears excessive since Ceracche received 14.6% return on stockholder
investment.
Looking ahead to fiscal year ending April 30, 1977 we see the
following picture. Maxfield, Randolph, and Carpenter (see Appendix
D) projected a rate of return for that year of 5.1%. They projected
a rate of return of 8.3% for fiscal year ending April 30, 1976
Rate Recommendation -- 7
whenour projection indicated a 14.6% return on capital or a difference
of 6.3%2. Using their projection of 5.1% for fiscal year 1977 and
adding a correction of 6.3% as we found necessary in the 1976 fiscal year,
we find that Ceracche will receive an estimated 11.4% return on his
capital associated with the cable business. This rate is excessive.
However, if the City of Ithaca imposes a 2% franchize tax and a requirement
for audit as recommended below, the costs of these two items will bring
the rate of return for fiscal 1977 within the 10% standard recommended by
this Committee. Under these conditions we would recommend the continuation
of the $5.50 per month rate presently in effect.
V. Further Recommendations
A. Franchisee Accounting Responsibilities
As noted above, this Committee did not have access to audited
financial reports for the Ceracche companies. Ceracche has not been in
the practice of securing audited statements in the past, nor have the
Federal Communications Commission or the New York State Commission on
Cable Television required audited statements of cable systems. It
is our opinion that annual audited reports provided to this Committee
would provide both high quality data and a continuing picture of the
financial condition of the Ceracche companies--both necessary conditions
for careful rate determinations. Further, audited reports would improve
the public credibility of rate determinations made in the future.
-We, therefore, recommend that the City of Ithaca require annual
audited statements of the franchisee, Ceracche Television Corporation,
to be made available to this Committee and Common Council as soon after
April 30 of each year as possible, the first to be completed for fiscal
year ending April 30, 1977 to allow Ceracche Television Corporation
time to adjust to such a system. Further, we recommend that Common
Council consider whether the accountant to perform such audits should be
employed by Ceracche Television Corporation or by the City of Ithaca
with cost billed to Ceracche Television Corporation.3
------------------
2The difference in Maxfield, Randolph, and Carpenter's projected
rate of return from ours results from the following factors: 1. difference
in estimated increase in costs due to inflation (see Cohen's report) ;
2. disallowing certain expenses; and, 3. disallowing investment in
Westview Heights when-calculating rate of return.
3It should be noted that Cohen stated informally that the cost of
adjusting to a program of accounting that provides for a separate and
independent audit might initally be as high as $7,000 to $10,000.
Rate Determination -- 8
B. Franchise Tax Rate
The Federal Communications Commission permits a franchise tax
rate of between one and six percent of gross receipts. Since at least
1958, the franchise tax for the Ceracche Television Corporation operating
in Ithaca has remained at one percent. This Committee believes that
since costs of maintainr_e services and running the City of Ithaca have
risen tremendously since 1958, it is appropriate for the City of Ithaca
to raise the franchise fee charged to Ceracche Television Corporation.
We recommend that the rate go up to six percent over a period of five
years at the rate of one percent each year beginning with fiscal 1977.
Thus, the tax would be two percent in fiscal 1977, three percent in
fiscal 1978 and so on until six percent is reached.
This increase should be tied to the rate of return calculated as
the result of the yearly audit. If the rate of return on stockholder
equity for a given year falls below seven percent, then the one percent
increase for that year should be waived.
C. Cost Differential in City and Rural Connections
This Committee made no attempt to determine if the present differential
in rates between the City of Ithaca and the remainder of the county was
equitable. Presumably as the number of connections per mile increases,
the cost of providing service to subscribers decreases, and presumably,
Ceracche Television Corporation could provide information which would
enable the Committee to calculate the actual cost per city customer.
We suggest that such information be considered in future rate determina-
tions.
D. Franchisee Responsibility to Provide Community Access to Cable Television
Finally, this Committee recommends that Common Council adopt a
formula regarding community access to cable television. We suggest the
following guidelines for such a formula:
1. That the franchisee, Ceracche Television Corporation,
make a written commitment to the City of Ithaca regarding
Community access to cable television.
2. That the formula provide that television time on channel
13 or another designated channel be available to members of
the community on a demand basis up to full use of the channel.
3. That the formula provide that members of the community,
including educational and governmental users, schedule at least
two weeks in advance but not more than one month in advance.
4. That the formula provide that time be allotted on a first
come, first served basis with appropriate provisions for
equal access to prime time.
y Rate Recommendation -- 9
5. That the formula provide for use of the franchisee's
facilities, if needed, at a cost not to exceed the cost
to the franchisee.
E. Authority to Initiate a Periodic Rate Investigation
Since costs and related factors change from time to time, we recommend
that the following bodies be authorized to initiate a rate investigation as
frequently as needed up to once per year: Common Council of the City of
Ithaca, the Advisory Committee on Cable Television. Further we recommend
that Ceracche Television Corporation be permitted to petition a rate
investigation as frequently as appears warrented up to once per year.
This recommendation concurred in by four members of the Committee; one
member absent in the final determination due to illness.
a
i
ti ti
Appendix A
Review by Certified Public Accountant
of
Ceracche Television Corporation
Records
6
n
Alin H. Cohen
Certified Public Accountant
39 Uptown Village
Ithaca, New York 14850
December 30, 1975
City of Ithaca -
Advisory Committee on Cable Television
Ithaca, New York 14850
Attn: Mr. Dana Ulloth
Gentlemen:
In accordance with our agreement dated November 15, 1975, I have reviewed the unaudited
financial statements of Ceracche Television Corporation for the year ended April 30,
1975, together with other financial records and documents. The Balance Sheet, related
statements of Income and Retained Earnings and Changes in Financial Position for the
year ended April 30, 1975 were not audited by Maxfield, Randolph and Carpenter, Certi-
fied Public Accountants, Ithaca, New York, and accordingly they did not express an
opinion on them. Similia.rly, I have not audited these statements and do not express
an opinion on them.
The scope of ny review and inspection of the financial data, included a review of the
Certified Public Accountants' workpapers , a propriety check on items of income and
expense and an investigation of the relationship of interrelated parties. In addition,
a general review of internal control and adherence to generally accepted accounting
procedures and standards was performed. The study and investigation also included
the extraction of pertinent financial data for the period ended April 30, 1975 and a
projection of these items to determine the applicability of a tentative rate increase
for Ceracche Television Corporation, for this fiscal period beginning May 1, 1975.
Review of Certified Public Accountants' Workpapers
The firm of Maxfield, Randolph and Carpenter provided me with the workpapers used to
prepare the unaudited financial statements for Ceracche Television Corporation for
the period ended April 30, 1975. These workpapers were complete and accurate and
included such items as physical inspection of inventories , bank reconciliations,
tracing of subsidiary records to general ledgers , test checks of internal accounts,
internal control operations and ether representations which a-re normally an integral
part of a Certified Public Accountant's workpapers. Since these workpapers were com-
plete and of a high professional standard, a significant amount of reli ince was placed
upon them. Therefore, except where determined necessary, the tests of transactions
which were recorded in these workpapers were acceptable to my investigation. It
should be noted that the basis for determining the acceptability of the unaudited
financial statements rested primarily with the quality of these work papers.
Propriety of Accounts
The following accounts were reviewed and compared to the unaudited financial state-
ments and the U.S. Corporate Income Tax Return, Form ,A;'1120, for the taxa.'ole yea.:
ending April 30, 1975.
City of Ithaca
` Advisory Committee on Cable Television
Page 2
A. Income .
1) Cable System Monthly Fees
Monthly fees were test checked for the periods April and September 1975•
Tompkins County Trust Company computer runoffs determining the number of
subscribers served for regular cable television and Home Box Office were
reviewed for propriety. Average income for regular subscribers prior to
the rate increase was $4.50 for City of Ithaca subscribers and up to $5.00
for out-of-City subscribers. Home Box Office fees remained constant
at $6.00 per subscriber. Testing the income reported to the total number
of subscribers reflected on the computer runs revealed that all income was
properly reported. An item of material significance which was used to
determine the validity of the tentative rate increase was the average number of
regular and Home Box Office- subscribers. The period 1/1/75 to 4/30/75
revealed an average of 15,250 subscribers for regular service and approximately
1,500 for Home Box Office service. The average rate per subscriber for this
period was $4.75 for regular and $6.00 for Home Box Office.
2) Other Income
Advertising income, sales of cable materials and amplifiers and other
miscellaneous items were reviewed for propriety and traced to the general
ledger. All of these items appear reasonable and were accepted as filed.
B. Expenses
1) Salaries and Wages
Salaries and wages were test checked to Federal payroll reports ,
Forms 941 and W2. In addition, Tompkins. County Trust Company computer runs
were test checked for propriety and traced to general ledger entries. These
tests. revealed that all items of salaries and related benefits (Social
Security taxes , Unemployment and Disability insurances) were properly recorded.
A review of this expense item revealed that the total
xp payroll for the period ;
was approximately $395,000, of which $300,000 was expensed directly to salary
while approximately $95,000 was capitalized as part of future capital cable I
projects and/or recorded in cost of goods sold to be included as part of
sales and reported in future periods.
2) Depreciation
Depreciation for the period was tested to determine the correctness of
method and assignment of useful lives. The method of depreciation used was
straight line and double declining balance. However, the Certified Public
Accountants' workpapers revealed that the difference between a standard straight
line method and the double declining method was approximately $7000. This
difference was reported to the Commissioner in the AFR-1 report for the period
ended April 30, 1975. Since the amount of this difference is not material,
the overall straight lire method of calculation with some double declining
items were accepted as filed. The useful lives on equipment for ::-lc ur:.
City of Ithaca
t Advisory Committee on Cable Television
PMe 3
was originally estimated at five years. However, the addition of aluminum
systems increased the life to 10 years. This ten-year standard was verified
by the Internal Revenue Service and current government published rates
indicate that the lives are in accordance with their standards. All other
assets such as poles, towers , radio and office equipment, electrical equip-
ment, furniture and fixtures, and moving vehicles are properly classified
and computed. Therefore, all items of depreciation were accepted as filed.
3) Bad Debts
Bad debts represent the write-off of monthly cable television fees
and other write-offs pertaining to the Ceracche Television Corporation business.
The majority of items written off in this period represent monthly cable
television charges of $125 or less resulting from college students and other `
transients not fulfilling contractual agreements. Other items which represent i.
equipment sale write-offs and/or equipment repair and maintenance charges E
were written off by management and reviewed by the Certified Public Accountants
at year end. Subsequently, 85% of these year-end write-offs were reviewed
for propriety and appear reasonable. Management is aware that any further
collection of these write-off accounts will be restored to income.
4) Cable and Shop Supplies
Cable supplies represent amounts which are reflected in the manufac-
---turing department which are directly charged to expense. However, year-end
journal entries reflecting amounts actually in inventory at year-end are ;
restored to the asset accounts. Therefore only those items which are purchased r
and expensed during the period are charged. Shop supplies, which are non-
manufacturing items, are also restored to their proper asset inventory account
by physical inspection at year end. The accountants' workpapers were reviewed r
for propriety and all journal entries which restored assets were traced to the
general ledger. All major items purchased which were identified in the work-
papers were test checked. All items expensed and classified as assets were
accepted as filed.
-�) - Other Expense Items
The following items were included for a test of propriety and traced
to the accountants' workpapers and general ledger. All items appear reason-
able and are accepted as filed:
Interest Expense
Legal- and Accounting Services
Microwave Service
Office and Related Expense
Payroll Taxes
Pole Rental
Other Rentals
Real Estate Taxes
_ G{ty of Ithaca
Advisory Committee on Cable Television
Page 4
C. Interrelated Parties
The corporate structure of Ceracche Television Corporation includes Ceracche
and Company Inc. and Westview Heights Inc. as subsidiary companies (see
unaudited financial statements April 30, 1975, Note 2) . Special attention
was given to the accounting transactions , agreements and allocations among
these companies. The accountants' unaudited financial statements and work-
papers clearly reflect the proper allocations and reporting of these companies.
A substantial portion of the intercompany transactions were test checked and
appear reasonable. Particular attention was given to salaries of officers
and related parties and rental agreements for office space and physical cable
equipment.
D. Projection for 1976 Rate
As part of the review and investigation of the Ceracche Television Corporation's
financial statements , a review of the projected rate increase for the year
ended April 30, 1976 was included. (See Exhibit A) . Items of income and
expense were extracted from current financial statements and projected over
the next fiscal year.
1) Income
a. Regular Monthly Fees: Income from the cable system for the actual
first six months averaged 15,900 subscribers at a rate of $5.75
($4.75 plus $1.00 tentative rate increase) . This actual average
number of monthly subscribers was used as a basis for the remaining
fiscal year.
b. Home Box Office Fees: Monthly fees were computed by using 150
average monthly subscribers reduced by a reimbursement rate to
Home Box Office of 580 ($3.50 divided. by $6.00) .
c. Other Income: Other cable materials and amplifiers , advertising
and other items of income were based primarily on last year's
figures. However, advertising income was reduced by approximately
40% as a result of operations for the first six months of the fiscal
year which reflects a material decline in such income.
2) Expenses
Expenses for the fiscal period April 30, 1976 were calculated by
increasing the total expenses for April 30, 1975 by a 7 1/2oincrease allowance.
This increase allowance appears reasonable when compared to economic conditions
and price increases. An additional allowance was provided for certain expense
items above the 7 1/211 calculations resulting from increased income. These
are as follows: Federal Income Taxes , New York State Franchise Taaes , Ithaca
City Franchise Taxes, and New York State Cable Commission fees.
-City of Ithaca
Ad3risory Committee on Cable Television
Page 5
3) Net Earnings After Taxes
The net earnings after taxes as calculated by Exhibit A reflect an
increase of approximately $52,000 over last fiscal year. The total percentage
of this net earning increase after taxes is approximately 7. 8% of total gross
receipts. Based on all observations , tests and computations for future period
income and expenses , earnings after taxes of approximately $96,000 appear
reasonable.
Conclusions
It is difficult to arrive at exact conclusions pertaining to the financial data
presented for review. However, certain observations can be made and they are as
follows:
1) The accounting records and financial reports of Ceracche Television
Corporation clearly reflect the operations of that company and its
subsidiaries. The Certified Public Accountants' reports and work-
papers substantiate this contention. However, this observation does
not purport to be an audit opinion.
2) Utilizing the financial data for the fiscal year ended April 30, 1975
and extrapolating that data to arrive at a pro;
f r J
Ceracche Television Corporation
Analysis of Proposed Rate Increase
For The Fiscal Year Ended April 30, 1976
Income
Cable System
Monthly Fees $1,064,616
Installation 72,000 $1,136,616
Home Box Office
Monthly Fees 110,880
Less: Payments to HBO (64,310) 46,570
Cable Materials & Amplifiers 2,000
Advertising 25,000
Other Income 3411000
Total Estimated Income $1,244,186
Expenses
As Per 4/30/75 x 7 1/2 $1,092,550
Plus:
Provision for Federal Income Taxes 37,000
Provision for N.Y.S. Franchise Taxes 1,150
Provision for City of Ithaca Taxes 1,500
Provision for N.Y.S. Commission on
Cable TV 15,000
Total Estimated Expenditures 1,147,200
Net Earnings After Taxes $ 96,986
% of Gross Receipts 7.8%
LOCAL LAW NO. OF THE YEAR 1976
CITY OF ITHACA
A LOCAL LAW AMENDING THE CABLE TELEVISION FRANCHISE TO
CERACCHE TELEVISION CORPORATION
BE IT ENACTED by the Common Council of the City of Ithaca as follows:
SECTION 1. AMENDING A CABLE TELEVISION FRANCHISE TO
CERACCHE TELEVISION CORPORATION:
The cable television franchise granted to The Ceracche Television
Corporation on April 20, 1966, is hereby amended in accordance with the
terms and conditions as contained in the Agreement set forth below:
AMENDMENT OF TELEVISION CABLE FRANCHISE
AGREEMENT made this day of May, 1976, by and between the CITY OF
ITHACA, a municipal corporation duly organized and existing under and by
virtue of the laws of the State of New York, party of the first part, Grantor,
and CERACCHE TELEVISION CORPORATION, a domestic corporation duly
organized under and by virtue of the laws of the State of New York, having its
principal place of business at 519 West State Street, Ithaca, New York, party
of the second part, Grantee.
WITNESSETH:
That in consideration of the promises and covenants hereinafter made, the
parties agree as follows:
1. Ceracche Television Corporation of 519 West State Street, Ithaca, New
York, hereinafter referred to as grantee, is hereby granted and invested with
the right and authority to construct, erect, operate and maintain buildings,
machinery, and apparatus within the city limits of the City of Ithaca, as it
now is, and as it hereafter may be constituted by revision, modification, or
addition, and which said buildings, machinery, apparatus may or shall be-
come necessary in the transmission of television programs, and distribution
and sale of television or radio programs for the use of the citizens of the
City of Ithaca, said rights hereby granted to be non-exclusive. The City has
approved the legal, character, financial, technical and other qualifications
of the Grantee and the adequacy and feasibility of its construction arrange-
ments as part of a full public proceeding affording due process.
2. Grantee shall have the right, further, to erect, place, operate, repair,
and maintain poles, wires, transmission lines, distribution lines, and ser-
vice lines in and over, and the right to use, all public avenues, streets, alleys,
grounds and places in the city, and within its present limit or as it hereafter
may be extended, for the purpose of furnishing the City of Ithaca and its in-
habitants with television or radio service, provided always, that such poles,
wires, transmission lines, distribution lines, and service lines shall not
interfere with, nor obstruct, the necessary or proper use of said streets,
avenues, alleys, public grounds or places.
3. Grantee shall have the right and permission of the City of Ithaca to use
existing poles, wires, transmission lines and service lines now erected and
in existence, and owned, controlled or operated by the New York Telephone
/ f
- 2 -
Company or New York State Electric and Gas Corporation within the City
of Ithaca, upon the condition that it shall first obtain the written permission
of the New York Telephone Company or New York State Electric and Gas
Corporation for such uses.
4. Grantee shall be permitted to extend its poles, wires, transmission lines,
distribution lines and service lines, and to give service to the City of Ithaca and
to its inhabitants in accordance with the permissive rules, regulations and sta-
tutes as the same may be amended from time to time, of the Public Service
Commission, Federal Communications Commission, and other regulatory
bodies of the State of New York or the United States of America and subject
at all times to the applicable laws of the State of New York and of the United
States of America.
5. Grantee is hereby empowered, and subject always to the approval, if
necessary of the Public Service Commission of the State of New York, and
the Federal Communications Commission, to use proper practices and pro-
cedure within the spirit of this franchise and appropriate to the service within
the geographical limits of this franchise.
6. Grantee, upon execution of this franchise agreement, shall, if required,
be allowed to proceed to petition the Public Service Commission of the State of
New York and the Federal Communications Commission for any approval re-
quired to be had in the premises, and upon such approval, he shall notify the
Mayor of the City of Ithaca in writing.
7. No poles are to be erected upon the public streets, alleys, avenues and
public grounds and no excavation of any type shall be done or caused to be done
unless permission in writing is first obtained from the Department of Public
Works of the City of Ithaca, New York.
8. In the event that a change is made in the grade of public streets, alleys,
avenues, and grounds by authority of the City, which shall necessitate the
removal of any poles, wires, transmission lines, and distribution lines, to
conform to the change of grade, Grantee shall make the necessary changes in
its lines, at its own expense, upon due notice from the Board of Public Works
of the City to do so.
9. All work in any way necessitated by the business of the Grantee which
may involve the opening, breaking or tearing up of a portion of a street, side-
walk or other part of any City-owned or City-controlled property shall
be done by the City at the expense of the Grantee. Grantee shall save
- 3 -
and keep the City harmless against all loss or damage to person or property
caused by the construction, laying, maintenance or operation of any of its
lines or other undertaking under the authority of this franchise.
10. During the term of this franchise, Grantee shall furnish to all persons
desiring the service offered, and paying for the same, a wire service capable
of producing as good a quality of television picture signal or reception as may
be practicable from time to time, and shall make all reasonable and practicable
betterments or improvements of said service as improvements in the science of
the carrying of television signals shall warrant, as well as in the elimination of
radio interference.
11. This franchise does not in any manner grant to the Grantee, his successors
or assigns, the exclusive right to the sale and service of television sets or acces-
sories within the City of Ithaca, and it is expressly understood that the right to
sell such sets or accessories is reserved to any and all legitimate dealers. By
acceptance of this franchise, the Grantee, his successors and assigns shall be
deemed to have accepted the following conditions:
(a) Any person, individual or corporation may purchase television sets
from any source without any liability to the holder of the franchise herein granted.
(b) The holder of this franchise shall be required to permit any individual
or corporation to have access to the services of the holder of this franchise, sub-
ject only to the payment of regular installation fee and monthly charges which are
hereby established as follows:
1) Residential or Commercial establishments; Maximum charges:
First installation charge - $25. 00. Each additional installation $10. 00. Rental
for first installation - $5. 50 per month. Additional rental charge for installa-
tions prior to March 1, 1975, for each extra set at the same establishment:
Residential 50 cents per month per set. Commercial: $1. 00 per month per set.
For installations after March 1, 1975, residential or commercial rental charge
per extra set $1. 00 per month.
2) Suspended service: No charge for disconneting and no rental charge
while disconnected. Reconnecting charge: $5. 00.
3) The user shall have the privilege of selling and transferring the
service once only to a different party at a different address for a $10. 00 transfer
charge, where the service is available at the time.
- 4 -
4) Changing location of cable: $5. 00 for moving to another location
in same room; $10. 00 charge for moving to a different room in same apart-
ment or living quarters.
5) Any user that has paid the regular established residential instal-
lation fee who moves to another residence within the city where service is
available may have this service transferred for a $10. 00 charge.
6) Cable service may be disconnected when rental or installation
charge is sixty days past due. If service is disconnected because of non-
payment, a charge of $5. 00 is made for reconnection after past-due account
is paid.
7) Installation may be disconnected if user attempts to run more than
one set at one time on each installation, or permits anyone else to do the same;
or tampers with the lines in any way.
8) Any increase of the maximum charges must first be approved by
the Common Council, after a full public hearing affording due process. Such
approval shall not be unreasonably withheld.
9) All installation and other charges include applicable federal, state
and local taxes, if any, except sales tax.
(c) Grantee of this franchise shall not directly or indirectly reflect the
cost of installations in the price of sets sold by it.
12. If the trees in the City streets interfere with the erection of poles or the
stringing of wires, or cables, in accordance with the terms of this franchise,
written permission for removing said trees, or any part thereof, must be obtained
from the Department of Public Works, for trees on City property, and from the
owners of private property.
13. In all street installations, the cables or wires erected shall, in all respects,
comply with the provisions of all existing Codes pertaining to the extension of
wires across streets, and all applicable provisions of the Electrical Code of the
City of Ithaca. Coaxial cable shall be used to carry the television signal through-
out the street installations. Messenger cables shall be used to carry the coaxial
cable across streets.
14. The holder of this franchise shall, at all times, keep in effect the following
types of insurance coverage:
- 5 -
(1) Workmen's Compensation upon its employees engaged in any manner
in the installation or servicing of its plant and its equipment within the City of
Ithaca.
(2) Public Liability Insurance in a total overall amount of not less than
$50, 000. 00 insuring the holder of this franchise and the City of Ithaca against
liability for property damage, and $100, 000. 00 to $300, 000. 00 for personal
injury or death by reason of the installation, servicing or operation of its
plant and equipment or installations within the City of Ithaca.
15. The term of this franchise shall be ten (10) years from the effective date
hereof. The franchise may be automatically renewed at the option of the Grantee
for an additional period extending to May 1, 1991. However, this franchise may
be revoked in the event the Grantee shall fail to comply with the terms and con-
ditions herein set forth within sixty days after written notice of such failure has
been received by the Grantee.
16. This franchise is personal to the Grantee, and may be transferred only
on application to and approval by the Common Council of the City of Ithaca. No
permit or grant of similar privileges and powers as are covered by this fran-
chise shall be allowed during the period hereof except upon a franchise applied
for and approved by the Common Council.
17. The Grantee shall pay to the City Chamberlain annually a sum equal to
two per centum (2%) of its gross revenues from its cable service operations
within the City. Said gross revenues to include the "basic" charges and rentals
as set forth in paragraph No. 11 hereinabove and the charges and rentals as set
forth in paragraph No. 32 hereinbelow. Upon application for any rate change by
the Grantee to the City, the Common Council may increase the per centum sum in
the first sentence of this paragraph as permitted by law. Such fees shall be and
constitute a lien upon the property of the Grantee within the City prior and supe-
rior to all other debts, obligations, taxes, mortgages or liens of whatsoever
nature regardless of the time of the creation thereof. Failure to make the re-
quired report or pay such franchise fees shall be grounds for revocation of
this franchise.
18. Any continuous and willful violation of any section or provision of this
franchise shall be grounds for cancellation of the franchise, after due notice
and public hearing. The right is reserved to the Grantee to prosecute in any
Court or otherwise, any stealing, pirating or unlawful uses of the services
covered by this franchise.
- 6 -
19. If any section of this franchise agreement or any clause or any phrase
thereof shall be held to be unconstitutional or void, all other portions not so
held shall be and remain in full force and effect.
20. The City recognizes that Grantee has already constructed its system
substantially throughout the entire city. Grantee shall continue to provide
such service throughout the duration of the franchise, pursuant to this franchise.
21. Grantee shall construct its cable system using materials of good and
durable quality and all work involved in construction, installation, maintenance,
and repair of the cable system shall be performed in a safe, thorough, and reliable
manner.
22. The City and the Grantee have adopted procedures for the investigation and
resolution of all complaints regarding cable television operations. The Grantee
shall maintain a local business office or agent for these purposes. The Mayor of
the City of Ithaca or his designee or designated committee has primary respon-
sibility for the continuing administration of the franchise and implementation of
complaint procedures. Notice of the procedures for reporting and resolving
complaints will be given to each subscriber at the time of initial subscription
to the cable system and at intervals thereafter of not more than one year. Such
notice may be written or by such other means as the New York State Commission
on Cable Television may approve upon application by Grantee.
23. Grantee shall not abandon any service or portion thereof without the
written consent of the City.
24. Any City property damaged or destroyed shall be promptly repaired or
replaced by Grantee and restored to serviceable condition.
25. Grantee shall not refuse to hire or employ, nor bar or discharge from
employment, nor discriminate against any person in compensation or in terms,
conditions or privileges of employment because of age, race, creed, color,
national origin or sex.
26. The City reserves the right to adopt, in addition to the provisions con-
tained in-the franchise and existing applicable ordinances, such additional
regulations as it shall findnecessary in the exercise of its police power;
provided, however, that such regulations are reasonable and not materially
in conflict with the privileges granted in the franchise.
- 7 -
27. The City reserves the right to inspect all pertinent books, records,
maps, plans, financial statements, and other like materials of the franchisee,
upon reasonable notice and during normal business hours.
28. This franchise is in compliance with the franchise standards of the New
York State Commission on Cable Television and the provisions hereof are sub-
ject to the approval of said Commission.
29. (a) Within thirty days of the receipt of final operating authority, Grantee
shall post security with the City in the amount of $1, 000. 00 in the form of a
letter of credit .
(b) Said security shall be forfeit to the extent specified by the City Council
if the Grantee fails to substantially comply with the construction schedule herein
specified or if the Grantee commits a material breach of any of the terms and
conditions herein prescribed.
(c) The Grantee shall be entitled to notice and hearing before the City
Council prior to any forfeiture.
(d) No forfeiture shall be imposed for failures beyond the reasonable
control of the Grantee.
(e) In the event of forfeiture of part or all of the initial security, the
Grantee shall within thirty days thereafter post additional security so that
the total amount of security posted equals $1, 000. 00.
30. Any modifications of the Rules of the Federal Communications Commission
concerning franchise standards shall be incorporated herein within one (1) year
of their adoption or at renewal time, whichever comes first.
31. Grantee shall file requests for all necessary operating authorizations
with the Commission on Cable Television and the Federal Communications
Commission within 60 days from the date this amendment is granted.
32. The City has approved, pursuant to a public hearing held after public
notice, the following rates:
(a) A charge of $6. 00 per month per television receiver may be made
for subscription or pay cable programming.
- 8 -
(b) A charge of $2. 00 per month per television receiver may be made
for the provision by Grantee of a converter for the reception of either sub-
scription or pay cable programming or the reception of additional broadcast
channels that may be received only with such a converter.
(c) The charges authorized in this Section are optional and no subscriber
maybe required to receive either of these services as a condition to receiving
the basic service.
33. Public Access:
(a) The Ceracche Television Corporation shall provide one full separate
single channel for public access programming on a demand basis up to and
including an amount of time equal to the duplicated portion of a particular channel.
(b) This single channel shall be located between channel 2 and 12 subject
to approval by the Federal Communications Commission; if such approval is -
not granted, then the channel may be other than 2 through 12.
(c) Access to the separate channel shall be provided on a first come,
first served basis within the following priorities:
1) Local live programming access
2) Public access
3) Education access
4) Government access.
(d) Users of the Public Access channel shall reserve their time at least
one and no more than four weeks in advance of their desired broadcast time;
this provision may be waived in a particular case by Ceracche Television
Corporation in its sole discretion.
(e) Studio time shall be provided at a cost not to exceed the actual cost
of operating the studio.
(f) The administration of public access broadcasting shall remain with
the Ceracche Television Corporation.
- 9 -
(g) The City Cable Commission shall act as the Common Council's agent
in resolving disputes between the Ceracche Television Corporation and public
access users.
(h) Video tapes to be shown on the public access channel shall be delivered
to the studio at least two working days in advance of airing.
(i) All access broadcasts shall conform to all applicable Federal Com-
munications Commission and State Cable regulations.
34. The terms of this Agreement supersede and revoke any prior inconsistent
terms of the franchise herein amended.
35. The Grantee shall be required to provide to the City at the Grantee's sole
expense audited financial statements upon any application by the Grantee for any
increase in rates hereunder for use in determining such rates to be permitted in
the City of Ithaca. The Grantee shall also be required to submit its annual finan-
cial statements, Uniform Cable Commission financial reports, and State and
Federal Income Tax returns and any other reasonable financial information re-
quested, to the Common Council annually as soon thereafter as they may be
available.
IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and
year first above written.
CITY OF ITHACA
By
Mayor
CERACCHE TELEVISION CORPORATION
By
Anthony Ceracche
STATE OF NEW YORK )
COUNTY OF TOMPKINS ) SS:
CITY OF ITHACA )
On the day of May, 1976, before me, the subscriber, personally appeared
Edward J. Conley, who, being by me duly sworn, did depose and state that he
is Mayor of the CITY OF ITHACA, the corporation described in and which
executed the foregoing instrument; that he knows the seal of said corporation;
that the seal thereto affixed is such corporate seal; that it was affixed by order
of the Common Council of the City of Ithaca, and that he signed his name there-
to by like order.
Notary Public
STATE OF NEW YORK )
COUNTY OF TOMPKINS ) SS:
CITY OF ITHACA )
On this day of May, 1976, before me, the subscriber, personally appeared
Anthony Ceracche, who, being by me duly sworn, did depose and state that he
is President of CERACCHE TELEVISION CORPORATION, the corporation
described in and which executed the foregoing instrument; that he knows the
seal of said corporation; that the seal thereto affixed is such corporate seal;
that it was affixed by order of the Board of Directors of said corporation, and
that he signed his name thereto by like order.
Notary Public
SECTION 2. EXECUTION OF AGREEMENT
The Mayor of the City of Ithaca is hereby authorized to execute the
Amended Television Cable Franchise Agreement on behalf of the City of
Ithaca and Ceracche Television Corporation is hereby required to execute
said Amended Television Franchise Agreement or this Amendment shall
be null and void.
SECTION 3. EFFECTIVE DATE
This Local Law shall take effect immediately after filing in the office
of the Secretary of State.
. I
t MAP
1
CITY O F ITHACA
TOMPKINS COUNTY
ITHACA, NEW YORK 14650
TELEPHONE: AR 2-1713
COOL'607
March 10, 1976
Mr. Anthony Ceracche
519 W. State Street
Ithaca, New York 14850
Dear Mr. Ceracche: `
We are sorry you were unable to attend last nights meeting of
the Charter and Ordinance Committee and the Cable Review Commission.
My charge as committee chairman of Charter and Ordinance Committee is
to return to the Common Council a report and recommendation for adop-
tion of rules and regulations for public access television.
I am sure you will want an opportunity to respond, to our requests
and hope you will do so before our next meeting on Wednesday the 24th
of March at 7: 30 P.M. in the Council Chambers. We certainly will
appreciate meeting with you at this time to discuss the following
recommendations:
1. The Ceracche Television Corp. shall provide one full
separate single channel for public access programming
on a demand basis.
2. This single channel shall be separate from the local
origination channel and shall be located between channel
2 through 13.
3. Access to the separate channel shall be provided on a first
come, first served basis within the following priorities:
a. Local live programming access
b. Public access
c. Education access
d. Government access
e. Paid access
f. Ceracche TV Corp. access for remainder of the broadcast time
' Mr. Ceracche
March 10, 1976
Page Two
4. Users of the Public Access channel shall reserve their time
at least one and no more than four weeks in advance of their
desired broadcast time.
5. All access time shall be provided free of charge with the
exception of paid access time which shall be provided at a
minimum charge. Studio time shall be provided at a cost not
to exceed the actual cost of operating the studio.
6. The administration of public access broadcasting shall remain
with the Ceracche Television Corp. until such time that a
single remote origination point can be established.
7. The Cable Commission shall act as the Common Council' s agent
in resolving disputes between the Ceracche Television Corporation
and public access users.
8. The Ceracche Television Corporation shall provide one remote
origination point for access programming when needed.
9. Video tapes to be shown on the public access channel shall
be delivered to the studio at least two working days in advance
of airing.
10. All access broadcasts shall conform to all FCC regulations.
While the above provisions represent a greatly expanded public access
operation, the commission and committee feel they are absolutely necessary
requests if a viable public access system is to be a reality. We hope
you concur and look forward to your comments and to our meeting on the
24th.
Sincerely,
Donald Slattery, Chairman
% Charter and Ordinance Committee
DS:rb
CC: Martin A. Shapiro, City Attorney
Charter and Ordinance Committee
Cable Commission
Wr ------
r qq
City of Ithaca
Advisory Committee on Cable Television
564 Horton Road
Newfield, New York 14867
Mayor Edward Conley
Members of Common Council
City of Ithaca
Ithaca, New York 14850
Dear Mayor Conley and Councilmen:
Having reviewed the events leading to the amendments to the cable
television franchise held by Ceracche Television Corporation, the Advisory
Committee on Cable Television believes that certain changes in the
procedure used by Common Council might afford a more accurate picture of
the issues. We make these suggestions in the interest of promoting more
balance in the discussion of both sides of the issues.
Our recommendations are as follows:
(1) The Advisory Committee should be afforded the opportunity to
present the issues and suggestions it has orally before Common Council
prior to other groups having the opportunity to speak. In this way the
members of Common Council will be fully aware of the thinking of this
Committee and will a perspective against which to judge comments by the
Cable Television company.
(2) Copies of the report from the Advisory Committee should be
made available to all members of Common Council at least one week before
public discussion of cable television matters are taken up. In this way
everyone will have adequate opportunity to know the issues as spelled
out by the Advisory Committee. Comments from Ceracche and his represent-
atives should also be available to Common Council ahead of the hearing
for the same reason.
(3) After discussion of the issues and after compromise amendments
have drawn up by Common Council, at least a one week waiting period should
be set before the final vote on the amendments is taken. In this way
you can receive comments from interested parties.
(4) The final vote could be taken during an open second meeting.
Any final comments might also be entertained at that time.
i
Common Council -- 2
It is the belief of the Advisory Committee that both the interests
of the public and Ceracche Television Corporation would be better
served by following such procedures as are recommended above. We
thank you for considering these suggestions for future rate investigations
and other matters that affect Ceracche Television Corporation and
subscribers.
Sincerely,
ADVISORY COMMITTEE ON CABLE TELEVISION
Dana R. Ulloth
Chairman
Morris Angell
Ann Martin
Ray Bordoni
Peter Potorti
APR 3 0 1976
CITY OF ITHACA
TOMPKINS COUNTY
OFFICE OF ITHACA, NEW YORK 14850
THE MAYOR TELEPHONE: 272-1713
CODE 607
MEMO TO: Hon. Joseph Rundle, City Clerk
Martin A. Shapiro, City Attorney
Dana Ulloth, Chairman, Cable Commission
FROM: Mayor Edward J. Conley
DATE: April 29, 1976
SUBJECT: Letter from Cohen and Berfield - Ceracche Television Corp.
Attached hereto please find a copy of a letter received today
from Cohen and Berfield addressed to the New York State Commission
on Cable Television on behalf of Ceracche Television Corp. for
your attention.
EJC:rb
ATTACH.
•J
LAW OFFICES
COHEN AND BERFIELD
BOARD OF TRADE BUILDING
LEWIS I.COHEN 1129 20TH STREET,N.W.
MORTON L.BERFIELD WASHINGTON, D.C.20036
AREA CODE 202
ROY W. BOYCE
466-6865
April 27, 1976
` �i OR 2
New York State Commission on
Cable Television
Tower Building, Empire State Plaza
Albany, New York 12223
Gentlemen:
On behalf of Ceracche Television Corporation, this is to notify the
Commission pursuant to its March 1, 1976, Clarification of Commission
Policy, that Ceracche Television Corporation provides pay cable pro-
gramming of Home Box Office, Inc. , on cable systems serving the
following communities: City of Ithaca; Towns of Ithaca, Lansing, Dryden,
Ulysses, Caroline, Newfield, Danby, Enfield and Groton; and Villages
of Cayuga Heights, Trumansburg and Groton. The rate for such service
is $6. 00 per month.
Ceracche Television Corporation submits this information without
waiver of any rights in the event that a court or other body of competent
jurisdiction holds the regulation of rates for such services by state and
local authorities to be invalid. This should also not be construed as a
concession by Ceracche Television Corporation as to the legality of the
March 1, 1976, Clarification of Commission Policy. This notification
is being filed under protest and solely in view of possible sanctions that
would result from a failure to file.
Should there be any questions concerning this matter, kindly
communicate directly with this office. M
incerely,
Lewis I. Cohen
Counsel for Ceracche Television Corporation
cc: All municipalities listed above
F
i
4 f97b
MEMORANDUM
TO: Mayor Edward Conley
Members of Common Council
City of Ithaca, New York
FROM: Advisory Committee on Cable Television
Dana Ulloth, chairman 'Ll) ,,,,
RE: Amendments to Cerrache Television Corporation Franchise presently
pending
The Advisory Committee on Cable Television (hereinafter called Committee)
wishes to express its view on the amendments to the cable franchise noted
above to be considered by Common Council during ,its meeting on April 7,
1976. We are in favor of the amendments regarding public access programming
that have been worked out during meetings with Charter and Ordinance
Committee and we believe they should be acted upon during the April 7
meeting.
In addition to the access amendments Common Council is being asked to
review and act upon amendments to the franchise which would bring it into
conformance with the guidelines set down by the Federal Communications
Commission and the New York State Commission on Cable Television. It
is the view of this Committee that these amendments should be held in
abeyance until they can be reviewed more thoroughly by this Committee and
by Common Council.
Since these amendments do not need to be incorporated into the franchise
until early 1977, a delay should not create unnecessary hardship for
anyone. It is the view of this committee that the amendments need to
be reviewed from the point of view of the public need in Ithaca while
conforming to the requirements of the FCC and State Commission regulations.
We further believe that a more complete review will, in the long run,
benefit everyone.
2511 horace court .
13e11morG, le.Y. 11710
May 120 1975
President
Ceracche `i'eleVision Corp.
` 519 Fest State Street
.Ithaca, 'N.Y. 14850
Gentlemen: r
In May of 1975, ;i Mile I as livin- at 312 I•]o.
Aurors Street, Ithaca, I•I.Y. , I advised your compt:ny to,
disconnect the ct.ble , as we would be; vacat:in6 the ,,.part-
ment at the end of the terra, being students at Ithaca
College . 01
Since then, however# each month I havG ro-
ce ived a bill from you. No matter how many times you
have been advised that we no lonEar occupied these pro -
mines , these Gvor-raountinE bills keep coming.
Obviously it is your practico to keop hj;, ass
inS former customcrs until they pay Just to dot you off-- ==
their backs . However, if I receive any more bills from"
you, I shall bring this matter to the attention of the
New York State Consumer Protection Board, Pt 270 Broadway,
New York, N.Y.
THIS IS MY LAST LT',TT :R TO YOU. L-
- Very truly yours,
Amy Ross
P.S. It would appear that there is the sura of :LO.47 due
me when you finally disconnected tho cable. Please
sand said refund without delay.
x,
f
f
Jul-\ 16 , 1976
LOCAL LAW NO . OF THE YEAR 1976
CITY OF ITHACA
A LOCAL LAW MENDING THE CABLE TELEi'1 SIGN i i A-NCHISI `I°0 CERACCHF,
TELEVISION CORPORATION
BE IT ENACTED by the Common Council- of the City of Ithaca as follolws :
SECTION 1 . AMENDING THE CABLE TELEVISION FRANCHISE TO CERACCHE TELE-
VISION CORPORATION:
The Ceracche Television Corporation is hereby granted
an amendment to its Cable Television Franchise in accordan -e with the
terms and conditions as contained in the Agreement e o4 :
,-
TELEVISION CABLE FRANCHTSE
AGREEMENT made this day of , 1976 , by and between the CITY OF
ITHACA, a municipal corporation duly organized and existing under and by
virtue of the laws of the State of New York, party of the first part ,
Grantor , and CERACCHE TELEVISION CORPORATION, a domestic corporation duly
organized under and by virtue of the laws of the State of New York , having
its principal place of business at S19 West State Street , Ithaca , New York,
party of the second part, Grantee .
WITNESSETH:
That in consideration of the promises and covenants hereinafter made , the
parties agree as follows :
1. Ceracche Television Corporation, of 519 West State , Ithaca, New York,
hereinafter referred to as grantee is hereby granted and invested with the
right and authority to construct , erect , operate and maintain buildings ,
machinery , and apparatus within the city limits of the City of Ithaca, as
it now is , and as it hereafter may be constituted by revision, modification,
or addition, and which said buildings , machinery , apparatus may or shall
become necessary in the transmission of television programs , and distribu-
tion and sale of television or radio programs for the use of the citizens
of the City of Ithaca, said rights hereby granted to be non-exclusive . The
City has approved the legal , character, financial , technical and other quali-
fications of the Grantee and the adequacy and feasibility of its construc-
tion arrangements as part of a full public proceeding affording due process .
2 . Grantee shall have the right, further , to erect, place , operate, re-
pair and maintain poles , wires , transmission lines , distribution lines , and
service lines in and over, and the right to use , all public avenues , streets ,
alleys , grounds , and places in the city , and within its present limit or
as it hereafter may be extended, for the purpose of furnishing the City of
Ithaca and its inhabitants with television or radio service , provided always ,
that such poles , wires , transmission lines , distribution lines , and service
lines shall not interfere with, nor obstruct , the necessary or proper use
of said streets , avenues , alleys , public grounds or places .
3. Grantee shall have the right and permission of the City of Ithaca to
use existing poles , wires, transmission lines and service lines now erected
and in existence , and owned, controlled or operated by the New York Tele-
phone Company or New York State Electric and Gas Corporation within the City
of Ithaca, upon the condition that it shall first obtain the written permis-
sion of the New York Telephone Company or New York State Electric and Gas
Corporation respectively for such uses .
4 . Grantee shall be permitted to extend its poles , wires , transmission lines
distribution. lines and service lines , and to give service to the City of
Ithaca and to its inhabitants in accordance with the permission, rules ,
regulations and statutes as the same may be amended from time to time , of
the Public Service Commission, Federal Communications Commission, and other
regulatory bodies of the State of New York and of the United States of
America and 'subject at all times to the applicable laws of the State of
New York and of the United States of America.
S. Grantee is hereby empowered , and subject always to the approval , if
necessary , of the Public Service Commission of the State of New York or
other applicable State Commission , and the Federal Communications Com-
mission, to use proper practices , and procedures within the spirit of this
franchise and appropriate to the service within the geographical limits
of this franchise .
6 . Grantee , upon execution of this franchise agreement , shall , ife-
quired, be allowed to proceed to petition the Public Service Commission
of the State of New York or other applicable State Commission and Federal
Communications Commission for any approval required to be had in the pre-
mises , and upon such approval , he shall notify the Mayor of the City of
Ithaca in writing .
7. No poles are to be erected upon the public streets , alleys , avenues
and public grounds and no excavation of any type shall be done or caused
to be done unless permission in writing is first obtained from the De-
partment of Public Works of the City of Ithaca, New York. F
f
8. In the event that a change is made in the grade of public streets , '
alleys , avenues , and grounds by authority of the City , which ,shall neces-
sitate the removal of any poles , wires , transmission lines , and distribu-
tion changes in its lines , at its own expenses , upon due notice from the
Board. of Public Works of the City to do so .
9. All work in any way necessitated by the business of the Grantee which
may involve the opening, breaking or tearing up of a portion of a street,
sidewalk or other part of any City-owned or City-controlled property
shall be done by the City at the expense of the Grantee. Grantee shall :d
save and keep the City harmless against all loss or damage to person or
property caused by the construction, laying maintenance or operation of
any of its lines or other undertaking under the authority of this fran-
chise .
10. a) During the term of this franchise , Grantee shall furnish to all
persons desiring the service offered, and paying for the same , a wire
service capable of producing as good a quality of television picture
signal or reception as may be practical from time to time , and shall
make all reasonable and practicable betterments or improvements of said
service as improvements in the science of the carrying of television
signals shall warrant, as well as in the elimination of radio inter-
ference .
x
b) The Grantee shall certify to the City and provide such required
documentation to prove that it is in fact meeting the minimal technical
standards required by the FCC . Said certification and documentation may
be twice yearly, as may be requested by the City. If in the belief of
the City the minimum technical standards are not being met , or if the
Grantee shall fail to provide such certification and documentation as
required herein, then the City may, at its sole option, employ the ser-
vices of the New York State Commission on Cable Television engineering
van to make verification checks within the City. The Grantee agrees to
pay for a maximum of two such verification checks per year should they
be required by the City.
` - 3 -
c) Service shall be defined to include the providing of cable ser-
vice to subscribers ` homes and businesses in the city through the use of
cable and necessary instruments . Further service shall include the pro-
grain services provided by Ceracche such as over- the-air broadcast pictures ,
pay television programs and local origination . Additional franchise ser-
vices should be provided only after securing city approval .
11. This franchise does not in any manner grant to the Grantee , his suc-
cessors or assigns , the exclusive right to the sale and service of tele-
vision sets , accessories , or converters within the City of Ithaca, and it
is expressly understood that the right to sell such sets or accessories
or convertors is reserved to any and all legitimate dealers . By accep-
tance of this franchise , the Grantee , his successors and assigns shall be
deemed to have accepted the following conditions :
(a) Any persons , individual or corporation may purchase
television sets from any source without any liability to the holder of the
franchise herein granted.
(b) The holder of this franchise shall be required to per-
mit any individual or corporation to have access to the services of the
holder of this franchise , subject only to the payment of regular installa-
tion fee and monthly charges which are hereby established as follows :
(1) Residential or Commercial establishments ; Maximum
charges : First installation charge - $20 . 00 . Each additional installa-
tion $10 . 00 . Rental for first installation - $5 . 50 per month , basic cable
service including at least 20 channels . Additional rental charge for each
extra set at the same establishment : Residential $1 . 00 per month per set.
Commercial : $1. 00 per month per set .
(2) Suspended service : No charge for disconnecting
and no rental charge while disconnected. Reconnecting charge : $5 . 00 .
(3) The user shall have the privilege of selling and
transferring the service once only to a different part}/at a different ad-
dress for a $10 . 00 transfer charge , where the service //is available at the fi
time.
(4) Changing location of cable : $5 . 00 for moving to
another location in same room or for moving to a different room in same
apartment or living quarters .
(5) Any user who has paid the regular established resi-
dential installation fee and moves to another residence within the city
where service is available may have this service transferred for a $10 . 00
charge .
(6) Cable service may be disconnected when rental or
installation charge is sixty days past due. If service is disconnected
because of non-payment , a charge of $5. 50 is made for reconnection after
past-due account is paid.
(7) Installation may be disconnected if user attempts
4 -
to run more than one set at one time on each installation, or permits any-
one else to do the same: or tampers with the lines in any way.
(8) Any increase of the maximum charges must first be
approved by the Common Council , after a full public hearing_, affording due
process . Such approval shall not be unreasonably withheld.
(9) All installation and other charges include applica-
ble federal , state and local taxes , if any, except sales tax.
(10) The City specifically reserves the right to con-
duct a subscriber or other rate investigation when it believes on the
basis of financial data available to it that substantial changes in costs ,
revenues , or profits of the Grantee has occurred, and may on the basis of
such investigation, adjust the subscribers ' rates or any other rates con-
tained in this agreement .
(c) Grantee of this franchise shall not directly or indi-
rectly reflect the cost of installations in the price of sets sold by it .
12 . If the trees in the City Streets interfere with the erection of poles
or the stringing of wires , or cables , in accordance with the terms of this
franchise , written permission for removing said trees , or any part thereof,
must be obtained from the Department of Public Works , for trees on City
property, and from the owners of private property.
13 . In all street installations , the cable or wires erected shall , in all
respects , comply with the provisions of all existing Codes pertaining to
the extension of wires across the streets , and all applicable provisions `.
of the Electrical Code of the City of Ithaca. Coaxial cable shall be
used to carry the television signal throughout the street installations .
Messenger cables shall be used to carry the coaxial cable across the
streets .
f
14 . The holder of this franchise shall , at all times , keep in effect the
following types of insruance coverage :
(1) Workmen' s Compensation upon its employees engaged
in any manner in the installation or servicing of its plant and its equip-
ment within the City of Ithaca.
(2) Public Liability Insurance in a total over-all amount
of not less than $50 ,000 . 00 insuring the holder of this franchise and the
City of Ithaca against liability for property damage , and $100 ,000 . 00 to
$300 ,000 . 00 for personal injury or death by reason of the installation ,
servicing or operation of its plant and equipment or installations within
the City of Ithaca.
1S. The term of this franchise shall be ten (10) years from the effective
date hereof. The franchise may be automatically renewed at the option of
the Grantee for an additional period extending to May 1 , 1991 , unless after
review of the performance of the Grantee , Grantor shall determine that said
performance has been inadequate , in which case the Grantor may, upon one (1)
month' s written notice to the Grantee, terminate this franchise agreement
S -
at the end of the initial ten-year term. However, this franchise may
be revoked in the event: the grantee shall fail to comply with the terms
and conditions herein set forth within. sixty days after written notice
of such failure has been received by the grantee ,
16 . This franchise is personal to the grantee , and may be transferred
only or, application to and approval. by the Common Council of the City of
Ithaca. No permit or grant of similar privileges and. powers as are
covered by this franchise shall be allowed during the period hereof ex-
cept upon a franchise applied for and approved by the Common Council .
17 . The grantee shall pay to the City Chamberlain annually a sum equal
to three per centum (39,-,) of its gross revenues from its cable service
operations within the City , said gross revenues to include the "Basic"
charges and rentals as set forth in paragraph No 11 hereinabove and the
charges and rentals as set forth in paragraph Nc3131 hereinbelow. The
City may increase +be per centum sum in the first sentence of this para-
graph as permitted by law or regulations of the FCC or New York State
Cable Commission. Such fees shall be and constitute a lien upon the
property of the grantee within the City prior and superior to all other
debts , obligations , taxes , mortgages , or liens of whatsoever nature re- t
gardless of the time of the creation thereof. Failure to make the re-
quired report or pay such franchise fees shall be grounds for revocation
E
of this franchise .
18 . Any continuous and willful. violation of any section or provision of
this franchise shall be grounds for cancellation of the franchise , after
due notice and public hearing. The right is reserved to the Grantee to
prosecute in any Court or otherwise , any stealing, pirating or unlawful
uses of the services covered by this franchise .
19. If any section of this franchise agreement or any clause or any
phrase thereof shall be held to be unconstitutional or void, all other
portions not so held shall be and remain in full force and effect .
20 . The City recognizes that Grantee has already constructed its system
substantially throughout the entire city. Grantee shall continue to
provide such service throughout the duration of the franchise , pursuant
to this franchise.
21 . Grantee shall construct its cable system using materials of good
and durable quality and all work involved in construction, installation,
maintenance , and repair of the cable system shall be performed in a
safe , thorough, and reliable manner.
22 . The Grantor and the Grantee have adopted procedures for the investiga-
tion and resolution of all complaints regarding cable television operations .
The Grantee shall maintain a local business office or agent for these
purposes . All complaints shall first be forwarded to the Grantee who
shall maintain a log of each complaint , the date it was made , the name of
the complainant , the resolution thereof and the date of the resolution.
All complaints not resolved by the Grantee within one (1) week after re-
ceipt shall be forwarded to the Grantor for review. The Mayor of the City
of Ithaca or his designee or designated committee has primary responsibility
for the continuing administration. of the franchise and implementation of
complaint procedures . Notice of the procedures for reporting and resolving
6 -
complaints will be given to each subscriber at the time of initial sub-
scription to the cable system and at intervals thereafter of not more
than one year . Such notice may be written or by such other means as the
New York State Commission on Carle Television may approve upon applica-
tion by Grantee .
23. Granted shall not abandon any service or portion thereof without the
written consent of the City.
24 . Any City or private property damaged or destroyed shall be promptly
repaired or replaced by Grantee and restored to serviceable condition .
25 . Grantee shall not refuse -t:o hire or employ, nor bar or discharge
from employment , nor discriminate against any person in compensation or
in terms , conditions , or privileges of employment because of age , race ,
creed, color , national origin or sex.
f'
f
26 . The City reserves the right to adopt , in addition to the provisions
contained in the franchise and existing applicable ordinances , such addi-
tional regulations as it shall find necessary in the exercise of its police
power ; provided, however, that such regulations are reasonable and not
materially in conflict with the privileges granted in the franchise .
27 . The City reserves the right to inspect all pertinent books , records ,
maps , plans , financial statements , and other like materials of the fran-
chisee , upon reasonable notice and during normal business hours .
28 . This franchise is in compliance with the franchise standards of the
New York State Commission on Cable Television and the provisions hereof
are subject to the approval of said Commission.
29 . a) Within thirty days of the receipt of final operating authority,
Grantee shall post security with the City in the amount of $10 ,000 in the
form of a letter of credit.
b) Said security shall be forfeit to the extent specified by the
City Council if the Grantee fails to substantially comply with. the con-
struction schedule herein specified or if the Grantee commits a material
breach of any of the terms and conditions herein prescribed. As an al-
ternative , the City Council may unilaterally shorten or decrease the term
of this franchise if it shall find that the Grantee has materially breached
any of the terms of this franchise agreement .
f
c) The Grantee shall be entitled to notice and hearing before the
City Council prior to any forfeiture or decrease in the term of this
franchise .
d) No forfeiture shall be imposed for failures beyond the reasonable
control of the Grantee.
e) In the event of forfeiture of part or all of the initial security,
the Grantee `shall within thirty days thereafter post additional security
so that the total amount of security posted equals $10 , 000 .
30 . Grantee shall file requests for all necessary operating authoriza-
tions with the City of Ithaca, Commission on Cable Television, and the
Federal Communications Commission within 60 days from the date this amend-
ment is granted.
7 -
31 . The City ;ias approved , pursuant to a public hearing heldafter
public notice , the following rates :
(a) A charge of $6. 00 per monch per television receiver
may be made for subscription or pay cable programming , i . e . Home Box
Office .
(b) A maximum charge of $2 . 00 per month per television
receiver may be made for the provision by Gyantee of a converter for tine
reception of additional broadcast channels that may be received only with
such converter . Said converter shall be capable of providing both pay cable
programming and extra channels such that when a subscriber requests both
pay cable programming and extra channel service the subscriber shall be
charged only a single $1 . 00 fee for the converter which shall be capable
of providing both services when the additional $6 . 00 per month fee for
Home Box Office is paid.
(c) The charges authorized in this Section are optional and
no subscriber may be required to receive either of these services as a
condition to receiving the basic cable service .
32 . Public Access
(a) The Ceracche Television Corporation shall provide one
full separate single channel for public access programming on a demand
basis up to and including an amount of time equal to the duplicated por-
tion of a particular channel .
(b) This single channel shall be located between channel
2 and 12 subject to approval by the Federal Communications Commission; if
such approval is not granted, then the channel may be other than 2 through
12 .
(c) Access to the separate channel shall be provided on a
first-come, first-served basis within the following priorities :
(1) Local live programming access
(2) Public access
k
(3) Education access
(4) Government access
(d) Users of the Public Access channel shall reserve their
time at least one and no more than four weeks in advance of their desired
broadcast time ; this provision may be waived in a particular case by
Ceracche Television Corporation in its sole discretion.
i
(e) Studio time shall be provided at a cost not to exceed
the actual cost of operating the studio.
(f) The administrtion of public access broadcasting shall
remain with the Ceracche Televis` on Corporation.
(g) The City Cabl( Commission shall act as the Common Coun-
cil ' s agent in resolving disputes between the Ceracche Television Corpora-
tion and public access users .
- s -
(h) Vid.co tapes to be shown on the public access channel
shall be delivered to the studio at least two working days in advance
of airing .
(i) All access broadcasts shall conform to all applicable
Federal Communications Commission and State Cable regulations .
33. By execution hereof the parties hereof revoke and rescind any and
all prior franchises heretofore given by the City to the Grantee .
34 . The Grantee shall be required to provide to the City at the
Grantee ' s sole expense audited financial statements upon any application
by the Grantee for any increase in rates hereunder for use in determin-
ing such rates to be permitted in the city of Ithaca. The Grantee shall
also be required to submit its annual financial statements , Uniform
Cable Commission financial reports , and State and. Federal Income Tax
returns and any other reasonable financial information requested, to the
Common Council annually as soon thereafter as they may be available .
35 . The value of this franchise at the end of the term or at such earlier
time as it may be terminated, shall be zero .
36 . In the event the Grantor annexes additional land areas in the future ,
then all of the conditions of this franchise shall apply to the annexed
area. In the event that the new land area so annexed is not wired by
the Grantee for the services set forth herein, then a construction schedule
shall be negotiated between the Grantor and the Grantee within one year ,
or the City may, at its option, impose any of the penalty provisions con-
tained herein as if the Grantee had materially breached any term or provi-
sion of this franchise agreement .
IN WITNESS WHEREOF , we have hereunto set our hands and seals the day and
year first above written.
CITY OF ITHACA
By:
Mayor
CERACCHE TELEVISION CORPORATION
By.
Anthony Ceracche
STATE OF NEW YORK )
COUNTY OF TOMIPKINS ) SS :
CITY OF ITHACA )
On this day of July, 1976 , before me , the subscriber, personally
appeared Edward J. Conley, who , being by me duly siorn, did depose
and state that he is Mayor of the CITY OF ITHACA , the corporation
described in and which executed the foregoing instrument ; that he
knows the seal of said corporation; that the seal thereto affixed
is such corporate seal ; that it was affixed by order of the Common
Council of the City of Ithaca , and that lie signed his name thereto
by like order .
Notary Public
STATE OF NEW YORK )
COUNTY OF TOMPKINS ) SS :
CITY OF ITHACA )
}
k
On this day of 1976 , before me , the subscriber , personally
appeared Anthony Ceracche , who , being by me duly sworn, did depose and
state that he is President of CERACCHE TELEVISION CORPORATION , the corpo--
ration described in and which executed the foregoing instrument ; that he
knows the seal of said corporation; that the seal thereto affixed is such
corporate seal ; that it was affixed by order of the Board. of Directors of
said corporation, and that he signed his name thereto by like order .
Notary Public
` L
#kB
F
g�
3
t
SECTION 2 . EXECUTION OF AGREE,TENT
The Mayor of the City of Ithaca is hereby authorized to execute
the Television Cable Franchise Agreement on behalf of the City of
Ithaca and Ceracche Television Corporation is hereby required to
execute said Television Franchise Agreement or this Franchise shall be
null and void.
SECTION 3 . EFFECTIVE DATE
This Local Law shall take effect immediately after filing in the
office of the Secretary of State .
y
Z / i
'I
LOCAL LAW NO. OF THE YEAR 1976
CITY OF ITHACA
A LOCAL LAW GRANTING A CABLE TELEVISION FRANCHISE TO CERACCHE
TELEVISION CORPORATION
BE IT ENACTED by the Common Council of the City of Ithaca as
follows:
SECTION 1. GRANTING A CABLE TELEVISION FRANCHISE TO CERACCHE
TELEVISION CORPORATION:
The Ceracche Television Corporation is hereby granted a
Cable Television Franchise in accordance with the terms and
conditions as contained in the Agreement set forth below:
a
TELEVISION CABLE FRANCHISE
AGREEMENT made this day of May, 1976, by and between the
CITY OF ITHACA, a municipal corporation duly organized and
existing under and by virtue of the laws of the State of New
York, party of the first part, Grantor, and CERACCHE TELEVISION
CORPORATION, a domestic corporation duly organized under and by
virtue of the laws of the State of New York,having its principal
place of business at 519 West State Street, Ithaca, New York, i
party of the second part, Grantee.
i
WITNESSETH:
i
That in consideration of the promises and covenants hereinafter
made, the parties agree as follows:
1. Ceracche Television Corporation, of 519 West State Street,
Ithaca, New York, hereinafter referred to as grantee is hereby
granted and invested with the right and authority to construct,
erect, operate and maintain buildings, machinery, and apparatus
within the city limits of the City of Ithaca, as it now is, and
as it hereafter may be constituted by revision, modification, or
addition, and which said buildings, machinery, apparatus may or
shall become necessary in the transmission of television programs,
and distribution and sale of television or radio programs for the
use of the citizens of the City of Ithaca, said rights hereby
granted to be non-exclusive.
2 . Grantee shall have the right, further, to erect, place, operate,
repair and maintain poles, wires, transmission lines, distribution
lines, and service lines in and over, and the right to use, all
public avenues, streets, alleys, grounds and places in the city,
and within its present limit or as it hereafter may be extended,
for the purpose of furnishing the City of Ithaca and its inhabitants
with television or radio service, provided always, that such poles,
wires, transmission lines, distribution lines, and service lines
shall not interfere with, nor obstruct, the necessary or proper
use of said streets, avenues, alleys, public grounds or places.
3 . Grantee shall have the right and permission of the City of
Ithaca to use existing poles, wires, transmission lines and service
lines now erected and in existence, and owned, controlled or operated
by the New York Telephone Company or New York State Electric and Gas
Corporation within the City of Ithaca, upon the condition that it
shall first obtain the written permission of the New York Telephone
Company or New York State Electric and Gas Corporation for such uses.
4. Grantee shall be permitted to extend its poles, wires, trans-
mission lines, distribution lines and service lines, and to give
service to the City of Ithaca and to its inhabitants in accordance
with the permissive rules, regulations and statutes as the same
may be amended from time to time, of the Public Service Commission,
Federal Communications Commission, and other regulatory bodies of
the State of New York or the United States of America and subject
at all times to the applicable laws of the State of New York and
of the United States of America.
-2-
5. Grantee is hereby empowered, and subject always to the
approval, if necessary of the Public Service Commission of the
State of New York, and the Federal Communications Commission, to i
use proper practices and procedure within the spirit of this
franchise and appropriate to the service within the geographical
limits of this franchise.
6. Grantee, upon execution of this franchise agreement, shall,
if required, be allowed to proceed to petition the Public Service
Commission of the State of New York and Federal Communications
Commission for any approval required to be had in the premises,
and upon such approval, he shall notify the Mayor of the City
of Ithaca in writing.
7 . No poles are to be erected upon the public streets, alleys,
avenues and public grounds and no excavation of any type shall
be done or caused to be done unless permission in writing is first
obtained from the Department of Public Works of the City of Ithaca,
New York.
8. In the event that a change is made in the grade of public streets,
alleys, avenues, and grounds by authority of the City, which shall
necessitate the removal of any poles, wires, transmission lines,
and distribution lines, to conform to the change of grade, Grantee
shall make the necessary changes in its lines, at its own expense,
upon due notice from the Board of Public Works of the City to do so.
9. All work in any way necessitated by the business of the Grantee
which may involve the opening, breaking or tearing up of a portion
of a street, sidewalk or other part of any City-owned or City-controlled
property shall be done by the City at the expense of the Grantee.
Grantee shall save and keep the City harmless against all loss or
damage to person or property caused by the construction, laying,
maintenance or operation of any of its lines or other undertaking
under the authority of this franchise.
10. During the term of this franchise, Grantee shall furnish to
all persons desiring the service offered, and paying for the same,
a wire service capable of producing as good a quality of television
picture signal or reception as may be practicable from time to time,
and shall make all reasonable and praticable betterments or improve-
metns of said service as improvements in the science of the carrying
of television signals shall warrant, as well as in the elimination
of radio interference.
11. This franchise does not in any manner grant to the Grantee,
his successors or assigns, the exclusive right to the sale and
service of television sets or accessories within the City of Ithaca,
and it is expressly understood that the right to sell such sets or
accessories is reserved to any and all legitimate dealers. By
acceptance of this franchise, the Grantee, his successors and assigns
shall be deemed to have accepted the following conditions :
(a) Any person, individual or corporation may purchase tele-
vision sets from any source without any liability to the holder of
the franchise herein granted.
-3-
(b) The holder of this franchise shall be required to permit
any individual or corporation to have access to the services of the
holder of this franchise, subject only to the payment of regular
installation fee and monthly charges which are hereby established as
follows:
(1) Residential or Commercial establishments; Maximum charges :
First installation charge - $15. 00. Each additional installation
$15. 00. Rental for first installation - $5. 50 per month.
Additional rental charge for each extra set at the same establishment:
Residential 50(� per month per set. Commercial: $1. 00 per month
per set.
(2) Suspended service: No charge for disconnecting and no
rental charge while disconnected. Reconnecting charge: $5. 00.
(3) The user shall have the privilege of selling and trans-
ferring the service once only to a different party at a different
address for a $10. 00 transfer charge, where the service is available
at the time.
(4) Changing location of cable: $3. 50 for moving to another
location in same room; $5. 00 charge for moving to a different room
in same apartment or living quarters.
(5) Any user that has paid the regular established residential
installation fee who moves to another residence within the city
where service is available may have this service transferred for a
$10. 00 charge.
(6) Cable service may be disconnected when rental or install-
ation charge is sixty days past due. If service is disconnected
because of non-payment, a charge of $4. 00 is made for reconnection
after past-due account is paid.
(7) Installation may be disconnected if user attempts to run
more than one set at one time on each installation, or permits
anyone else to do the same; or tampers with the lines in any way.
(8) Any increase of the maximum charges must first be approved
by the Common Council, after a full public hearing affording due
process. Such approval shall not be unreasonable withheld.
(9) All installation and other charges include applicable
federal, state and local taxes, if any.
(c) Grantee of this franchise shall not directly or indirectly
reflect the cost of installations in the price of sets sold by it.
12. If the trees in the City Streets interfere with the erection
of poles or the stringing of wires, or cables, in accordance with
the terms of this franchise, written permission for removing said
trees, or any part thereof, must be obtained from the Department of
Public Works, for trees on City property, and from the owners of
private property.
-4-
13. In all street installations, the cables or wires erected
shall, in all respects, comply with the provisions of all existing
Codes pertaining to the extension of wires across streets , and all
applicable provisions of the Electrical Code of the City of Ithaca.
Co-axial cable shall be used to carry the television signal
throughout the street installations. Messenger cables shall be
used to carry the co-axial cable across streets.
14. The holder of this franchise shall, at all times, keep in
effect the following types of insurance coverage:
(1) Workmen' s Compensation upon its employees engaged in
any manner in the installation or servicing of its plant and its
equipment within the City of Ithaca.
(2) Public Liability Insurance in a total over-all amount of
not less than $50, 000. 00 insuring the holder of this franchise and
the City of Ithaca against liability for property damage, and
$100, 000. 00 to $300, 000. 00 for personal injury or death by reason
of the installation, servicing or operation of its plant and
equipment or installations within the City of Ithaca.
15. The term of this franchise shall be ten (10) years from the
effective date hereof. The franchise may be automatically renewed
at the option of the Grantee for an additional period extending to
May 1, 1991. However, this franchise may be revoked in the event
the grantee shall fail to comply with the terms and conditions
herein set forth within sixty days after written notice of such
failure has been received by the grantee.
16. This franchise is personal to the grantee, and may be trans-
ferred only on application to and approval by the Common Council of
the City of Ithaca. No permit or grant of similar privileges
and powers as are covered by this franchise shall be allowed during
the period hereof except upon a franchise applied for and approved
by the Common Council.
17. The grantee shall pay to the City Chamberlain annually a sum
equal to two per centum (2%) of its gross revenues from its cable
service operations within the City. Said gross revenues to include
the "basic" charges and rentals as set forth in paragraph No. 11
hereinabove and the charges and rentals as set forth in paragraph
No. 32 hereinbelow. Upon application for any rate change by the
grantee to the City, the Common Council may increase the per centum
sum in the first sentence of this paragraph as permitted by law.
Such fees shall be and constitute a lien upon the property of the
grantee within the City prior and superior to all other debts,
obligations, taxes, mortgages or liens of whatsoever nature regard-
less of the time of the creation thereof. Failure to make the
required report or pay such franchise fees shall be grounds for
revocation of this franchise.
-5-
18 . Any continuous and willful violation of any section or
provision of this franchise shall be grounds for cancellation
of the franchise, after due notice and public hearing. The right
is reserved to the Grantee to prosecute in any Court or otherwise,
any stealing, pirating or unlawful uses of the services covered
by this franchise.
19. If any section of this franchise agreement or any clause or
any phrase thereof shall be held to be unconstitutional or void,
all other portions not so held shall be and remain in full force
and effect.
20. The City recognizes that Grantee has already constructed its
system substantially throughout the entire city. Grantee shall
continue to provide such service throughout the duration of the
franchise, pursuant to this franchise.
21. Grantee shall construct its cable system using materials of
good and durable quality and all work involved in construction,
installation, maintenance, and repair of the cable system shall
be performed in a safe, thorough, and reliable manner.
22. The City and the Grantee have adopted procedures for the
investigation and resolution of all complaints regarding cable
television operations. The Grantee shall maintain a local business
office or agent for these purposes. The Mayor of the City of
Ithaca or his designee or designated committee has primary
responsibility for the continuing administration of the franchise
and implementation of complaint procedures. Notice of the
procedures for reporting and resolving complaints will be given
to each subscriber at the time of initial subscription to the cable
system and at intervals thereafter of not more than one year. Such
notice may be written or by such other means as the New York State
Commission on Cable Television may approve upon application by
Grantee.
23. Grantee shall not abandon any service or portion thereof
without the written consent of the City.
24. Any City property damaged or destroyed shall be promptly
repaired or replaced by Grantee and restored to serviceable condition.
25. Grantee shall not refuse to hire or employ, nor bar or
discharge from employment, nor discriminate against any person in
compensation or in terms, conditions or privileges of employment
because of age, race, creed, color, national origin or sex.
26. The City reserves the right to adopt, in addition to the
provisions contained in the franchise and existing applicable
ordinances, such additional regulations as it shall find necessary
in the exercise of its police power; provided, however, that such
regulations are reasonable and not materially in conflict with the
privileges granted in the franchise.
J
-6-
27. The City reserves the right to inspect all pertinent books,
records, maps, plans, financial statements, and other like materials
of the franchisee, upon reasonable notice and during normal business
hours.
28. This franchise is in compliance with the franchise standards
of the New York State Commission on Cable Television and the
provisions hereof are subject of the approval of said Commission.
29. (a) Within thirty days of the receipt of final operating
authority, Grantee shall post security with the City in the amount
of $1, 000 in the form of a letter of credit.
(b) Said security shall be forfeit to the extent specified by
the City Council if the Grantee fails to substantially comply
with the construction schedule herein specified or if the Grantee
commits a material breach of any of the terms and conditions herein
prescribed.
(c) The Grantee shall be entitled to notice and hearing before
the City Council prior to any forfeiture.
(d) No forfeiture shall be imposed for failures beyond the
reasonable control of the Grantee.
(e) In the event of forfeiture of part or all of the initial
security, the Grantee shall within thirty days thereafter post
additional security so that the total amount of security posted
equals $1, 000.
30. Any modifications of the Rules of the Federal Communications
Commission concerning franchise standards shall be incorporated
herein within one (1) year of their adoption or at renewal time
whichever comes first.
31. Grantee shall file requests for all necessary operating
authorizations with the Commission on Cable Television and the
Federal Communications Commission within 60 days from the date
this amendment is granted.
32. The City has approved, pursuant to a public hearing held
after public notice, the following rates:
(a) A charge of $6. 00 per month per television receiver
may be made for subscription or pay cable programming.
(b) A charge of $2. 00 per month per television receiver may
be made for the provision by Grantee of a converter for the
reception of either subscription or pay cable programming or the
reception of additional broadcast channels that may be received
only with such a converter.
(c) The charges authorized in this Section are optional and
no subscriber may be required to receive either of these services
as a condition to receiving the basic service.
i
i
-7-
33. Public Access
(a) The Ceracche Television Corporation shall provide one
full separate single channel for public access programming on a
demand basis up to and including an amount of time equal tp
the duplicated portion of a particular channel.
(b) This single channel shall be located between channel
2 and 12 subject to approval by the Federal Communications
Commission; if such approval is not granted, then the channel
may be other than 2 through 12.
(c) Access to the separate channel shall be provided on a
first come, first served basis within the following priorities:
(1) Local live programming access
(2) Public access
(3) Education access
(4) Government access
(d) Users of the Public Access channel shall reserve their
time at least one and no more than four weeks in advance of their
desired broadcast time; this provision may be waived in a particular
case by Ceracche Television Corporation in its sole discretion.
(e) Studio time shall be provided at a cost not to exceed
the actual cost of operating the studio.
(f) The administration of public access broadcasting shall
remain with the Ceracche Television Corporation.
(g) The City Cable Commission shall act as the Common Council ' s
agent in resolving disputes between the Ceracche Television
Corporation and public access users.
(h) Video tapes to be shown on the public access channel
shall be delivered to the studio at least two working days in
advance of airing.
(i) All access broadcasts shall conform to all applicable
Federal Communications Commission and State Cable regulations.
34. By execution hereof of the parties hereto revoke and rescind
any and all prior franchises heretofore given by the City to the
Grantee.
35. The Grantee shall be required to provide to the City at the
Grantee ' s sole expense audited financial statements upon any
application by the Grantee for any increase in rates hereunder
for use in determining such rates to be permitted in the City of
Ithaca. The Grantee shall also be required to submit its annual
-8-
financial statements, Uniform Cable Commission financial reports,
and State and Federal Income Tax returns and any other reasonable
financial information requested, to the Common Council annually
as soon thereafter as they may be available.
IN WITNESS WHEREOF, we have hereunto set our hands and seals the
day and year first above written.
CITY OF ITHACA
BY:
Mayor
CERACCHE TELEVISION CORPORATION
BY:
Anthony Ceracche
� I
•
STATE OF NEW YORK )
COUNTY OF TOMPKINS ) SS:
CITY OF ITHACA )
I
On this day of May, 1976, before me, the subscriber, personally
appeared Edward J. Conley, who, being by me duly sworn, did depose
and state that he is Mayor of the CITY OF ITHACA, the corporation
described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal thereto affixed
is such corporate seal; that it was affixed by order of the Common
Council of the City of Ithaca, and that he signed his name thereto
by like order.
Notary Public
STATE OF NEW YORK )
COUNTY OF TOMPKINS ) SS:
CITY OF ITHACA )
On this day of May, 1976, before me, the subscriber, personally
appeared Anthony Ceracche, who, being by me duly sworn, did depose
and state that he is President of CERACCHE TELEVISION CORPORATION,
the corporation described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the
seal thereto affixed is such corporate seal; that it was affixed
by order of the Board of Directors of said corporation, and that
he signed his name thereto by like order.
Notary Public
J
SECTION 2. EXECUTION OF AGREEMENT
The Mayor of the City of Ithaca is hereby authorized to
execute the Television Cable Franchise Agreement on behalf of
the City of Ithaca and Ceracche Television Corporation is hereby
required to execute said Television Franchise Agreement or this
Franchise shall be null and void.
SECTION 3. EFFECTIVE DATE
This Local Law shall take effect immediately after filing
in the office of the Secretary of State.
i
i
1
I
i
i
i
I
i
i
APPENDIX D s
CERACCHE T V
Average Capital
Rate Increase
S
Without With
increase increase
Capital
Capital 4/30/74 694 190 694 190
Add: Net income 1974-75 12 800 53 700
4/30/75 706 990 747 890
Net income 1975-76 79 300) 64 900
4/30/76 627 690 812 790
Net income 1976-77 (148 700) 42 800
4/301/77 478 990 855 590
Average
Year�.ended 4/30/75 700 600 721 000
4/30/76 667 300 780 300
4/30/77 553 300 834 200
Net income (loss) as % of average capital
4/30/75 1.8% 7.4%
4/30/76 (11.9) 8.3
4/30/77 (26.9) 5.1
l
1;
i
Y.
r4
Y
r;
X
E
4
CERACCHE T V
H B 0 Operations
Rate Increase
4/30/74 4/30/75 4/30/76 4/30/77
Income 20 827 47 000 60 000 76 000
Expenses
Salaries & commissions 7 824 7 800 8 600 9 500
Loss on convertors - 3 000 3 800 4 800
Advertising 5 951 3 600 4 000 4 400
Computer services (est.) 2 700 6 800 9 000 10 800
Depreciation 4 347 13 300 17 500 21 000
Office expense 4 581 5 000 5 0'00 5 000
Other 2 693
28 096 39 500 47 900 55 500
Net income (loss) ,(7 269) 7 500 12 100 22-5 00
1
CERACCHE T V
Worksheet - 3 Year Projections
Without Rate Increase
1974-75 1975-76 1976-77
Income
Monthly cable fees 849 300 861 900 874 500
Installation, transfers
1973-74 71 064 73 000 75 000 77 000
922 300 936 900 951 500
Advertising 40 000 50 000 60 000
All Other 13 000 13 000 13 000
975 300 999 900 1 024 500
Expenses -
Salaries & wages ! 314 400 377 200 414 900
Depreciation 118 000 128 000 138 000
Bad debts - 27 800 28 700 29 600
t
Cable maint. contracted 33 000 36 300 39 900
FCC fee - -
NYS Cable Comm. 9 600 9 900 10 100
Interest 26 000 27 000 28 000
Legal & accounting 30 000 33 000 36 000
Microwave service 31 500 31 500 31 500
PR taxes & insurance 39 800 43 800 48 200
Pole rental 38 600 40 600 42 600
Taxes - real estate 28 700 31 700 34 700
Taxes - NYS franchise 7 100 7 500 7 700
Taxes - local franchise 9 500 10 500 11 500
Taxes - sales & use 12 000 13 000 14 000
Telephone 10 500 12 000 13 500 a
Utilities --11 000 12 000 13 000
All other 215 000 236 500 260 000
962 500 1 079 200 1 173 200
P/S-_plan - - -
Federal income tax - - -
962 500 1 079 200 1 173 200
Net _12 800 (79 300) X148 700)
a
CERACCIIE T V
Worksheet - 3 Year Projections
With Rate Increase 1/1/75
.q 1974— 1975-76 1976-77
Income
1974-75
Subscribers 4/30/74 15 201
Dollar increase-1/1-4/30/75
$1.00/mo. x 4 mo. 0
Subscribers added-800 for 12 mo,
-530 for 8 mo.
$1.00/mo x 530 x 4 mo. at 1/1/75 '.
- 1.00/mo x 130 x 4 mo. l:/1:-4,'30
Without increase
_.7 __
.All'other 73+40+13
1975-76 .. .
4/30/75 15 211
Dollar inc-_._ 792 000
Additions for year
-$12 -,k 200 2 400
.194 400400
Without incre1 v;..t l 999 900
1 194 300 0
_1976-77
4/3.0/76 16 000 + 4t
Dollar QI 121 ,.. 196 800
Additions' for year 2" 400
199 200
Without increase 1 024 500
1 223 700
Expenses before taxes and profit-s �- 1 079 200 1 173 200
Net before taxes and profit-s�=<-,ring 115 100 50 500
Profit-sharing (22 000) -
Corporation taxes less invest, creE ,— f (28 200) (7 700)
Net retained 64 900 42 800
__.
t:
CERACCHE T V
Capital Expenditures
Rate Increase
1974-75 1975-76 1976-77
Capital expenditures
Trucks (2) 8 000 (1)15 000 (2) 8 000
(2) 8 000
Studio equipment 25 000 25 000 25 000
Tape machines
Remote units
Calor cameras
Lighting
House drops replacement
1 600/year @ $15 24 000 24 000 24 000
Replace cable plant
-Cable 17 miles @ $ 4 000 68 000 68 000 68 000
Replace amplifiers
500 over 3 year period -
168/year @ $ 350 - 58 000 58 000 58 000
_ 183 000 198 000 1.83 000
Extensions --
12 miles per year @ $ 4 000 48 000 48 000 48 000
--_ - 231 000 246 000 231 000
a
Residential Commercial
Basic Service Additional Outlets Basic Service Additional Outlets
Community Old N ew Old New Old New Old X e�v
Walden(V)
Alontgomery(V,T)
Crawford(T)
Shawan nk(T) $5. 00 $5. 95 Not Given $5. 00 $5. 95 Not Given
2
Seneca Falls(V)
Waterloo(T, V) 5. 00 5. 95 Not Given
Stanford(V)l/
Roxbury(T)
Prattsville(T)
Windham(T) 5. 00 $1.00 7. 00 $1. 25
Champion(T)2/
Wilna(T)
Deferiet(V)
Herrings(V) 4. 95 5. 95 Not Given
' S
Che order did not give the old rates.
Che order did not specifically state whether rates are commercial and/or residential.
Residential Commercial
Basic Service Additional Outlets Basic Service Additional Outlets
Community Old New Old New Old N ew Old N-ew
Deerfield(T)
N.Y. Mills(V)
New Hartford(V)
Yorkville(V) $5. 00 $6. 00 $1. 00 $1. 50 $5. 00 $6. 00 $2. 00 $3. 00
Kirkwood(T)2/ 4. 75 5. 75 Not Given
Salamanca(T, C)2/
Great Valley(T) 6. 50 7. 00 Not Given
N.Y. City/ 5. 00 7. 00 1. 00 2. 00
Watertown(C)2/ 5. 00 5. 75 . 2. 00 1.15
1 /1/75 6. 25 1. 25
2/
Seneca Falls(T) 5. 00 5. 95 No Change
Utica(C) 5. 00 6. 00 Not Given 1. 50 5. 00 6. 00 Not Given 3.00
Brookhaven(T)2/ 5. 00 6. 00 1. 00 No Change
/
Unadilla(T, V)2 2
Sidnev(T, V) 4. 50 5. 50 . 50 1. 00
Massena(T, V)2-/
Louisville(T)
Potsdam(T, V)
Canton(T, V) !
Norfolk(T)
Norwood(V) 4. 95 5. 50 Not Given
The order did not give the old rates. !
The order did not specifically state whether rates are commercial and/or residential.
Commercial
R esidential :
Basic Service Additional Outlets Basic Service Additional Outlets
Community Old N ew Old N ew Old N ew Old \e
Schuyler(T)1/
illarcy(T) $6. 00 $1. 50 $6. 00- $3. (
Amsterdam(C)2/
Haaair_an(V)
Fort Johnson(V) $5. 00 6. 00 $1. 00 1. 25
1 /3/
.ionticello(V) 6. 00 2. 50
Paris(T)
Whitesboro(V) 5. 00 6. 00 1. 00 1. 50 $5. 00 6. 00 $2. 00 3. (
Fayetteville(V)2/
M--nlius(T) 5. 00 6. 00 1. 00 2. 00 '
Oswego(C)2/ 5. 00 6. 00 1. 00 1. 25
1 / 2/
Hanzmondsport(V) 5. 00 '
New Hartford(T) 5. 00 6. 00 1. 00 1. 50 5. 00 6. 00 2. 00 3. 1
Fallsburg(T)2/ 3. 50 or
5. 00 6. 00 1. 00 1. 50
Kirkland(T)
U'Izitestone(T) 5. 00 6. 00 1. 00 1. 50 5. 00 6. 00 2. 00 3. 1
Islip(T)�/ 5. 00 6. 00 1. 00 No Change
r
Ij
' The order did not give the old rates. M
The order did not specifically state whether rates are commercial and/or residential.
' The rate for two, three or four television sets is $8. 50 per month.
z
0
r
.,...._,.......-�,.,...,,F..,�..�•�...s,..�:wocw��:.atewsww,:•.�a �_r� �..»:..xq;' '='+!7�Kr°nWo-'."111. �+�;w� `
'3
• I�
Q
CERACCHE T V
Proposed Rate Increase 1/1/75
Protected no increase ?rniected increase 1/1/75
1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1974-75 1975-76 1976-77 ''
INCOME
Cable rental 597 603 663 131 763 181 823 507 849 300 861 900 874 500 912 700 1 055 300 1 073 700
Cable install. transfer 64 454 64 749 68 571 71 064 73 000 75 000 77 000 73 000 75 000 77 000
Advertising 4 973 18 732 37 692 34 328 40 000 50 000 60 000 40 000 50 000 60 000 '
Other 22 862 35 684 48 302 24 338 13 000 13 000 13 000 13 000 13 000 13 000
689 892 782 296 917 746 953 237 975 300 999 900 1 024 500 1 038 700 1 194 3+:0 i 223 20
EXPENSES 612 897 693 044 724 264 850 469 962 500 1 079 200 1 173 200 962 500 1 079 200 1 173 200
P/S 21 946 25 070 45 279 23 482 - - - 5 000 22 000 -
Fed. Income Tax 20 443 10 109 55 844 11 726 - 17 500 28 200 7 700
655 286 728 223 825 387 885 677 962 500 1 079 200 1 173 200 985 000 1 129 400 1 180 9GU
l hcT 4 0 2 2 7 560 12 800 90) 144) no 4.9^1
Net of % of gross cable income 5.2% 7.4% 11.1% 7.6% 1.4% (8.5%) (15.6%) 5.4% 5.7% 3.7%
Net as % of total income 5.0 6.9 10.1 7.1 1.3 (7.9) (14.5) 5.2 5.4 3.5
Net as % of average capital 7.3 10.5 15,8 10.2 1.8 (11.9) (26.9) 7.4 8.3 5.1
$ return per subscriber 2.89 4:21 6.70 4.57 .82 (4.90) (8.96) 3.4.4 4.01 2.58
Cash flow from operations 114 907 147 231 198 100 172 488 130 800 48 700 (10 700) 171 700 192 900 180 800
Increase in fixed assets 136 542 160 348 106 829 192 402 231 000 246 000 246 000 231 000 246 000 231 000
Capital 5/1 457 821 492 850 538 839 631 198
4/30 492 850 538 839 631 198 694 190
Total 950 671 1 031 689
Average §k2 6
Subscribers 5/1 11 504 12 425 13 241 14 343 15 201 16 000 16 400
4/30 12 425 13 241 14 343 15 201 16 001 16 400 16 800
Total
Average 2 15 601 16 200 16 600 15 600 26 200 16 600 1.
g 1 8 5� [ I'S
I
CERACCHE TELEVISION CORPORATION °
UNAUDITED tOMPARATIVE STATEMENT OF INCOME & EXPENSES
YtARS ENDED April 30, 1971 and 1974
1970-71 1973-74
INCOME
Monthly cable fees 597, 603 823,507
Cable install. & transfer fees 64 ,454 71, 064
Advertising 4 ,973 34 ,328
All other 22,862 24 ,338
689,982 953, 237
EXPENSES
Salaries and wages 204 ,109 259 , 884
Depreciation 80,059 108, 060
Bad debts 20,187 23 ,272
Cable maintenance contracted 1,589 30,010
Maintenance parts and supplies 49, 215 77,701
Computer charges , office supplies 25,726 35, 673
FCC fee 1,4. 89
NYS Cable Commission 12,070
General Insurance 4,959 4 ,290
Interest 23,558 25,357
Legal and accounting 11,017 27, 351
Microwave service 20,760 23 ,640
Payroll taxes and insurance 230,136 33 ,171
Pole rental 30,652 36,637
Building rental 31,445 31,762
Weather channel expenses 6,311 6, 064
Taxes- real estate, franchises, etc 33, 845 55,700
Telephone 4,526 9,831
Studio supplies and expenses 6,289 9,853
Travel 2,637 6,531
Truck expense 14,039 16,499
Utilities 8,892 10 ,098
Employees ' profit-sharing plan 21,946 23 ,482
Federal income taxes 20,443 11,726
All other 8, 457 7 , 015
655,286 885, 677
NET INCOME - 34, 696 67, 560
APPENDIX E
�� J.S. Corporation En oQ -e r iix .loi:16 ea +e
Form For taxa le year beginning "a y..... ..�........... 1974
Department of the Treasury and endingA ri 1 30
Internal Revenue Service ---- - 1975.
•�- - � (PLEASE
•-p---SE TYPE OR PRINT) _ (Rev. 4-75)
Check It a— Nr q D Employer Identification numbs
A Consolidated return ® [R �Ob ���VISIOIVPCOt� ' 1975 °16 M
i
B Personal Holding Co. E] Nt9 H S T A T E ST E County in which located i
Y�NACA 14Y 14850i
C Business Code No. (See Tompkins j
page 7 of instructions) — _ li
Y
Ci _ - f F Enter total assets from—an-9
8599 14, column (D), Schedule L
(See instruction R) i
IMPORTANT—Fill in all applicable lines and schedules. If the lines on the schedules are not sufficient,see instruction N. $ 1 916 506
1 Gross receipts or gross sales....................................Less: Returns and allowances.................................... 1
2 Less: Cost of goods sold (Schedule A) and/or operations (attach schedule) . . . . . . 2
Lv 3 Gross profit . . .. . . . . . . . . . . . . . . . . . . 3 ---------------------- r
M 4 Dividends (Schedule C) _. . . . . . . . . . . . . . . 4
V 5 Interest on obligations of the United States and U.S. instrumentalities ._ : 5
6 Other interest---' . - _. :" . . . . . . . . . . 6
N7 Gross rents . . . . . . _. . . . . . . . . . . 7
U) 8 Gross royatties . . . . . . , . . . . . . . . . . • • 8 .----------------------
. . . . . j
9 (a) Net capital gains (attach separate Schedule D) . 9(a)
t9 •-----------------------
(b) Ordinary gain or(loss)from Part ll, Form 4797 (attach Form 4797) . . . . . . . . 9(b)
10 Other income (see instructions—attach schedule) . . . . . . 10
11 TOTAL income—Add lines 3 through 10 . 11
12 Compensation of officers (Schedule E) . . . . . . . . . . . . . . . . . 12
------------------------
13 Salaries and wages (not deducted elsewhere) . . . . . . . . . . . . . . . . 13
------------------------
14 Repairs (see instructions) _. _ . . . . . . . . . . . . . 14
------------------------
•15 Bad debts(Schedule f it reserve method is used) . . . . . . . . . 15 `
------------------------
16 Rents . . . . . . . . . . . . . . . . . . . . . . . . . 16
------------------------
17 Taxes (attach schedule_) . _0 . . . . ._ . . . . . . . . . . . . 17
18 Interest . 18
tn 19 Contributions_(not over 5% of line 30 adjusted per instructions attach schedule) . . , 19 ........................
Z 20 Amortization (attach schedule) 20
21 Depreciation (Schedule G) 21 ------------^-- -- r
22 Depletion . . . . . . . . . . . . . . . . . . . 22 - --------------------• Z
- -
G23 Advertising. 23W . . . . . . . . . . . . . . ------------------------
24
-------------------_-
-
profit-sharing,
plans
instructions) . 2525 Employee benefit programs (see instructions) . . . . . . . ' . . . . , . i
27 Other deductions
TOTAL deductions—Add slines 12 through 26 . . . . . . . . . . . . . . 27 -
28 Taxable income before net operating loss deduction and special deductions (line 11 less line 27) . . . . . 28
29 Less: (a) Net operating loss deduction (see instructions—attach schedule) 129(a) t
(b) Special deductions (Schedule 1) . 29(b) `
30 Taxable income (line 28 less line 29) SctleMe. 1, 30
31 TOTAL TAX (Attach Form 1120—FY 1974-75 (Rev. 4-75)) . . . . . . . 31 0
32 Credits: (a) Overpayment from 1973 allowed as a credit . . -----------1-2.-000 k
(b) 1974 estimated tax payments . . . . . . . . tt
------------------------
(e) Less refund of 1974 estimated tax applied for on Form 4466 . ( ) _______12 000
V (d) Tax deposited with Form 7004-(attach copy) . . . . . .
I , (e) Tax deposited with Form 7005 (attach copy) Q __ ____________________
(f) Credit from regulated investment companies (attach Fo
(g) U.S.tax on special fuels, nonhighway gas a t
�ed (aJ1 ) 12 00033 TAX DUE (line 31 less line 32yri i `iGpot
agdytpaymen 3334 OVERPAYMENT (lin Ili \�a) .mss TS 34 12 000 '
i '
35 Enter amount of line y^ win . C fy i 975 es ak V- 000 •efunded � 35 11 000
r rh,
Under penalties of perjury, I decla F. p ."i 3Tr;turn; tjud g a^.fir,(sched n statements, and to the b st of my knowledge and belief it
Is true, correct, and 15 tete.QOecl•+ra ono repare {Cazpayarj• d<0 1 s-A;�rtrn which tie has an knowledge.
The Internal Revenue " 1� ee4`�IFsyJ CC
Service does -•-- '�not re- .GL`_ '' r
-----•-- --• -
:= - -----------------
quire • seal on this D•Is of officer •------ Tills
form, but if one is MAXFIELD, RANDOLPH iR CARPENTER. CPAS
used, please place it AUG 2 2 975
here. ------ — ---- ------ --------- ---
Date Signature of individual or firm preparing the raturh Preparers addreu Emp. Ident. or Soc. See. No. 1
503 FIRST NAT. BANK BLDG.
1THACA. N. Y. 1481n 15,-0620549
Form 1120 (1974) (Rev. 4-75) Page s.
Cost of Goods Sold (See instruction 2) Dividends (See instruction 4)
1 Inventory at beginning of year . . . ----------------------- 1 Domestic corporations subject to 85% deduction_ ________________________
2 Merchandise bought for manufacture or 2 Certain preferred stock of public utilities _ _ _ _______________________-
sale_ _ _ _ _ _ _ _ _ _ _ _ _______________________ 3 Foreign corporations subject to 85% deduction
3 Salaries and wages . . . . . ----------------------- 4 Dividends from wholly-owned foreign subsidiaries
4 Other costs (attach schedule) . . . subject to 100% deduction (section 245(b)) . . ----.------------------_
5 Other dividends from foreign corporations - - ------------------------
5 Total . . . . . . . . . . . ....................... 6 Includable income from controlled foreign corpora-
6 Less: Inventory at end of year . . . tions under subpart F(attach Forms 3646) . . ------------------------
7 Cost of goods sold—Enter on line 2, 7 Foreign dividend gross-up (section 78) - - - ------------------------
page 1 8 Qualifying dividends received from affiliated groups
and subject to the 100% deduction (section 243
Method of inventory valuation--------------------------------------- (a)(3)). . . . . . . . . . . - ------------------------
_________________________________________________________________________________ 9 Qualifying dividends received from affiliated groups
--------------------------------------------------------------------------------- and subject to the provisions of section 1564(b) . ---------------------___
Was there any substantial change in the man- 10 Taxable dividends from a DISC or former DISC not
ner of determining quantities, costs, or valua• included in line 1 (section 246(d)). . . . . -----------------------
tions between opening and closing inventory? [:)Yes ❑No 11 Other dividends . . . . . . . . .
If"Yes,"attach an explanation. 12 Total—Enter here and on line 4, page 1
Compensation of Officers (See instruction 12)
4. Time Percent of corporation 7. Amount of 8. Expense account
1. Name of officer 2. Social security number 3. Title devoted to stock owned compensation allowances
business 5.Common 6. Preferred
Anthony_ Ceracche_________________ __085__12__7262 Pres_, full 98_____ ______________ 39 093__ -----4_-082-----
C. T. Macera 060 24 9319 Sec/tre : full 12 025
----------- - - -- ---------------------------------------------------- -------------------------- ------ ----------- ------------------- --------------------
•------------------------------------------------ --------------------------- --------------- ----------- --- ------ ----------- ------------------ --------------------
Total compensation of officers—Enter here and on line 12, age 1 51 118
I Bad Debts—Reserve Method (See instruction 15)
Amount added to reserve
1. Year 2• Trade notes and accounts re- 3. Sales on account 4. Current year's 6. Amount charged 7. Reserve for bad debts
ceivable outstanding at and of year provision 5. Recoveries against reserve at end of year
1969 ------- --------- ----------------------- ----------------------
• ----------------------- --------------------------
1970 -------------------------------• ---------------------------
------------------------•---------=------------ ----------------------• --------------------------
1971 ---------------=---------------- -----------------•----------- ----------------------- -
--------------------------------------------- --------------------------
1972 -------------------------------- -----------------------------
1973 ---------------------------- •---------------------------- --
1974 ----_ _---
IQAit I-1a�(� Depreciation (See instructions for Schedule G) Note: If depreciation is computed by using the Class Life (ADR) System or
the Guideline Class Life System, you must file Form 4832 (Class Life (ADR) System) or Form 5006 (Guideline Class Life System) with your return. Check j
box(es) if you made an election this taxable year to use 0 Class life (ADR) System and/or ❑ Guideline Class Life System. See Publication 534. 9
4. Depreciation 5. Method of
1. Group and guideline clan I 2. Date ( 3. Cost or ( ( 16. Life or I 1. Depreciation for
allowed or allowable computing
or description of property acpuired other basis in prior years depreciation rate this year
1 Total additional first-year depreciation (do not include in items below) > 2 000
2 Depreciation from Form 4832 . . . . . ._.._.. / - -
------ ---- ---
�//------_, %%%%/moi_. ------------------------
3 Ccpreciatinn from Form 5006 . ' -------------------- �������� ����� � ------------------------ i
4 Other depreciation: _
Buildings . . . . . --- - - - ---------- ---- ----------- ------------------------
- - -•- .
Furniture and fixtures . .___Schedule_ 5
-- --------------
Transportation equipment - - - - --------------------- ----------
Machinery and other equipment - - --------------------- --------------------- --
Other (specify) -------------------------- -----f------------- -------------------- --------------------- - ---- ----------- •-----------------------
---------• --------------------- --------------------------------------- -- -----------------------------* ------------------------
------------------------------ - - - - ----- --------------------- --------------------- --------------------- ------------------• ----------- ------------------------
-- ------------- - -- -----------------------------------------------------
5 Totals
2 081 566
6 Less: Amount of depreciation claimed in Schedule A . . . . . . . . . . . . . . . .
7 Balance Enter here and on line 21, page 1 159 188
Form 1120 (1974) (Rev. 4-75) Page 3
r- Special Deductions
1 (a) 85% of line 1, Schedule C . . . . . . . . . . . . . . . . .
(b) 60.208% of line 2, Schedule C . . . . . . . . . . . .
(c) 85%of line 3,Schedule C .
(d) 100% of line 4, Schedule C . . . . . . . . . . . . . . . . .
2 Total—See instructions for limitation . . . . . . . . . . . . . .
3 100% of line 8, Schedule C
4 Enter dividends-received deduction allowed for dividends reported on line 9,Schedule C.See section 1564(b)for computation ------------------------------
5 Dividends paid on certain preferred stock of public utilities (see instructions) . . . . . . . . ____............._...........
6 Western Hemisphere trade corporations (see instructions) . . . . . . . . . . . . . .
7 Total special deductions—Add lines 2 through 6. Enter here and on line 29(b), page 1
Tax Computation (Use Form 1120—FY 1974-75 (Rev. 4-75) in order to compute your tax)
Y•tt[�;I,fr f" Record of Form 503 Federal Tax Deposits (List deposits in order of date made—See instruction G)
Serial number Data of Amount Serial number Date of Amount Serial number Dsts of Amount
of Form 503 deposit of Form 503 deposit of Form 503 deposit
2/_2_/_5_4 Yes No M Refer to principal: Yes No
G Date incorporated ------- — page 7 of instructions and state the ——
H (1) Did you at the end of the taxable year own, directly or in- Business activity__ Comm.Ant.TV System
directly, 50% or more of the voting stock of a domestic y
corporation? (For rules of attribution, see section 267(c).) ,X— Product or service____TV signal
----------------------------- —
If"Yes,"attach a schedule showing:See Form 851 Im,
N Were you a member of a controlled group subject to the provi-
(a) name, address, and identifying number;
(b) percentage owned; and j sions of: (1) Section 1561? . . . . . . . . . . . .(c) taxable income or loss) from line 30, page 1, Form 1120 of such corporation for the taxable year ending with or j (2) Section 1562?
within your taxable year. j j If answer to (1) or (2) is "Yes," check the type of relationship:
(2) Did any individual, partnership, corporation, estate or trust / (a) parent-subsidiary ❑ (b) brother-sister K]at the end of the taxable year own, directly or indirectly,
50% or more of your voting stock? (For rules of attribution, ON (c) combination of (a) and (b) ❑ (See section 1563.)
see section 267(c).) . . . . . . . . . X If answer to (2) is "Yes," are you excluded from paying the
If "Yes:" Schedule 7 % o
(a) Attach a schedule showing name, address, and identifying ,/ 6% additional tax because section 1562(b)(1)(A) applies. .
number. �� 0 Did the corporation, at any time during the taxable year, have
b) Enter percentage owned ►.__________________________________ j j any interest in or signature or other authority over a bank,
(c) Was the ownerofsuch voting stock a person other than a — / securities, or other financial account in a foreign country? . X
U.S. person? . . . . . . . . . . . . . . . If "Yes," attach Form 4683. (For definitions, see Form 4683.)
If "Yes," enter owner's country ►.__________________________% P Were you a U.S.shareholder of any controlled foreign corporation?
(See instruction T.) _ (See sections 951 and 957.) . . . . . . . . . . . . X
Did you exclude income under section 931? . . . . X if "Yes," attach Form 3646 for each such corporation.
Form 1120 (1974) (Rev. 4-75) Pah
Balance Sheets Beginning of taxable year End of taxable year
ASSETS (A) Amount (B) Total (C) Amount (D) Total
1 Cash . . . . . . . . . . . -------------------------- �11=110/1� -------------•-
2 Trade notes and accounts receivable . . . . --------------------------9009H= -_--_______-_-._____-__--_
(a) Less allowance for bad debts . . .
3 Inventories . . . . . . . . . i%� --------------------------% ///%/%//'% --------------------------
3
-- -
// --..._.. - %/// �/ ------------------------
4 Gov't obligations: (a) U.S.and instrumentalities. j%/j/�// /�/
4
State, subdivisions thereof, etc. j -------------------------
(b)
-------------------------
__________•________ _
5 Other current assets(attach schedule) �/ -------------------------- ��� / _________________________-
6 Loans to stockholders . . . . . . . .
7 Mortgage and real estate loans / // i
8 Other investments (attach schedule) . . . . /� ___________________________ //� ---------------_-_________
9 Buildings and other fixed depreciable assets _ _ __________________________ gamma����� -----------______________•
(a) Less accumulated depreciation . . .
j - - - -- ---
10 Depletable assets -------------------------����������� _ I
/ � V
(a) Less accumulated depletion . . . .
11 Land(net of any amortization) . . . . . ------------------------- --------------------------
12 Intangible assets (amortizable only) . . . . -------------------------- �/�jjjjj/=____
(a) Less accumulated amortization . . . --------------------------
-- - _
13 Other assets(attach schedule) . . . .
14 Total assets 1 674 365 %% /d /; 1 916 5
LIABILITIES AND STOCKHOLDERS' EQUITY
15 Accounts payable --------------------------
16 Mtges., notes, bonds payable in less than 1 yr. / / / -_________________________
17 Other current liabilities (attach schedule) j __________________________ / __________________________
18 Loans from stockholders // //j -------------------- ------------------------- i
19 Mtges.,notes, bonds payable in 1 yr.or more _________________________ / / ._ ____________________
20 Other liabilities (attach schedule) . . . . . /j /
21 Capital stock: (a) Preferred stock
. . .------------------------ ������������/: ------------------------- 11111�1��1 i
(b) Common stock. . _ _________________________
22 Paid-in or capital surplus . . . . . .. ----- _- ---- /�/ /
( / --------------------------
--------------------------//
23 Retained earnings—Appropriated attach sch.) j / - � -_________________________
24 Retained earnings—Unappropriated . / / / / / -------------------------
25
__ -25 Less cost of treasury stock . . . . . . / ) / ,�/ ) I
26 Total
liabilities stockholders' equity 1 674 365 ,5,iGtt , _ 1 916 506 i
. ity� III=� i!�k7k Reconciliation of Income Per Books With Income Per Return Schedule 10
1 Net income per books . . . . . . . .__________________________- 7 Income recorded on books this year not in-
2 Federal income tax . ---------------------------- cluded in this return (itemize) Ili
3 Excess of capital losses over capital gains - - (a) Tax-exempt interest $
..................
4 Taxable income not recorded on books this year ___________________________________________________
(itemize)------------ ---------------------------------------------------- -------------------------• I
---------------------------------------------------
--------------------------- 8 Deductions in this tax return not charged j
5 Expenses recorded on books this year not de- against book income this year (itemize)
ducted in this return (itemize) (a) Depreciation $_________________
(a) Depreciation $----------------------- (b) Depletion $------------------- i
(b) Depletion. . . $----------------------- ---------------------------------------------------- f
--------------------------------------------------- ----------------------------------------------------
9
------------------------------------:-- ---------
9 Total of lines 7 and 8
---------------------------------------------------
6 Total of lines 1 through 5 10 Income (line 28, page 1)—line 6 less 9 52 780
Analysis of Unappropriated Retained Earnings Per Books (line 24 above) Schedule 10 ',
1 Balance at beginning of year e_ --------------------------- 5 Distributions: (a) Cash . . . . . . _________-_-______________
2 Net income per books . . . . . . . (b) Stock .
3 Other increases(itemize)------------------------- (c) Property . .
•--------------------------------------------------- 6 Other decreases (itemize)-----------------------
----------------------------------------------------
;
---------------------------------
- 7 Total of lines 5 and 6. . . . .
4 Total of lines 1,2,and 3 8 Balance at end of year(line 4 less 7) 650 081
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
Index to Schedules
Schedule
r
Number Reference Description
1 Page 1 Gross income and deductions
2 Page 1, Line 1 Gross receipts
3 Page 1, Line 10 Other income r
4 Page 1, Line 17 Taxes
Line 19 Contributions
5 Page 1, Line 21 Depreciation !
6 Page 1, Line 26 Other deductions
7 Page 3, Question H(2)
8 Page 4, Schedule L Balance sheet - beginning of year
9 Page 4, Schedule L .Balance sheet - end of year
10 Page 4, Schedule M-1 Reconciliation of income
Schedule M-2 Analysis of retained earnings
Form 851 Affiliations schedule
Form 1120-FY Tax Computation Schedule
Form 3468-FY Investment credit
Form 7004 Automatic Extension of Time to File
Apportionment of surtax exemption
Apportionment of accumulated
earnings credit
I'
r
i
f
ti
r
r
t.
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
Ceracche Ceracche Westview
Page 1 Television & Co. , Heights
Line # Corporation Inc. Inc, Total Eliminations Consolidated
1 Gross receipts (schedule 2) $1 033 654 $ 17 150 $ - $1 050 804 $ 8 400 $1 042 404
3 Gross profit 1 033 654 17 150 - 1 050 804 8 400 1 042 404
6 Other interest 5 285 - - 5 285 3 013 2 272
7 Gross rents 9 172 107 635 - 116 807 39 615 77 192
10 Other income (schedule 3) 28 923 - - 28 923 360 28 563
,t Total income 1 077 034 124 785 - 1 201 819 51 388 1 150 431
12 Compensation of officers 51 118 - - 51 118 - 51 118
13 Salaries and wages 249 511 - - 249 511 - 249 511
15 Bad Debts 71 646 - - 71 646 - 71 646
16 Rent 78 359 1 300 - 79 659 39 615 40 044
17 Taxes (schedule 4) 83 074 23 137 1 372 107 583 107 583
18 Interest 34 149 38 651 2 822 75 622 3 013 72 609
19 Contributions (schedule 4) 2 050 - - 2 050 - 2 050
21 Depreciation (schedule 5) 135 574 23 614 - 159 188 - 159 188
23 Advertising 2 919 - - 2 919 - 2 919
26 Other deductions (schedule 6) 307 926 41 817 - 349 743 8 760 340 983
Total deductions 1 016 326 128 519 4 194 1 149 039 51 388 1 097 651
28 Taxable income before net
operating loss deduction 60 708 (3 734) (4 194) 52 780 - 52 780
30 Taxable income $ 60 708 S (3 734) S (4 194) S 52 780 S - S 52 780
Schedule 1
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
Ceracche Ceracche
Television & Co, ,
Page 1, Line 1, Gross Receipts Corporation Inc. Total Eliminations Consolidated
Cable installations and transfers $ 70 079 $ - $ 70 079 $ $ 70 079
873188 - 873 188 - 873 188
Monthly cable fees .
Net sales of amplifiers and materials 1 135 - 1 135 - 1 135 t .
Microwave service fees - 17 150 17 150 8 400 8 750
HBO Fees - net 46 627 - 46 627 - 46 627 , .
Advertising 42 625 - 42 625 - 42 625
_Sl 033 654 $ 17 150 ,$1 050 804 $ 8 400 $1042 404
.i
f
Schedule 2 '
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
i
Ceracche
Television
Page 1, Line 10, Other Income Corporation Eliminations Consolidated
Refund - FCC fees $ 9 455 $ - $ 9 455
Management fees 15 833 - 15 833
Miscellaneous 3 635 360 3 275
1--23—a 22 ,S 360 S 28 563
i
i
• I
{
i
f
i
!
Schedule 3 r
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
Ceracche Ceracche Westview
Television & Co. , Heights
Pagel, Line 17, Taxes Corporation Inc. Inc. Total
Employment $ 24 202 $ - $ - $ 24 202
Real estate and special
franchise 38 710 20 948 1 232 60 890
N.Y. State franchise 7 727 1 048 140 8 915
N.Y. State sales and use 12 435 1 141 - 13 576
$ 83 074 $ 23 137 S 1 372 S 107 583
Page 1, Line 19, Contributions
Tompkins Co. United Fund $ 2 000 $ - $ - $ 2 000
Miscellaneous 50 - 50
2 050
A
t
1
1
i
t
f
t
i
Schedule 4 i
r
I
1
}
i'
i%
F
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975 .
Page 1, Line 21, Depreciation
Method
Ceracche Television Corporation Cost Prior Life This Year
F
Additional First Year Depreciation $ 2 000
Buildings $ 3 459 $ 1 088 SL 25 138
Furniture & fixtures 60 318 46 625 SL 10 3 120
Transportation equipment 85 356 40 449 SL 3-8 9 481
Machinery & equipment 20 309 10 461 SL 10 1 553
Electronic equipment 7 524 1 840 SL 6 1 262
Electronic equipment 62 423 24 271 SL 10 4 899
Electronic equipment 68 805 4 347 SL 5 11 227
Poles 15 334 10 601 SL 20 767
Towers & antennas 3 412 2 875 SL 10 73
Cable system 291 524 232 908 SL 10 19 187
Cable system 672 812 220 087 DDB 10 76 947
Studio equipment 30 952 5 027 SL 8 3 222
TV rental equipment 15 131 - DB 7 1 876
1 337 359 135 752 f
Ceracche & Co. , Inc.
Buildings 23 786 - SL 15 1 586
Buildings 199 403 101 166 SL 25 7 976
Buildings 24 301 2 715 SL 30 810 4
Buildings 396 424 28 668 SL 45 7 623
Furniture & fixtures 60 497 6 625 SL 10 3 580
Electronic equipment 20 649 20 436 SL 10 28
Towers & antennas 6 341 4 142 SL 20 181
Parking lots 12 806 5 731 SL 7 1 830 °
744 207 23 614
82 081 566 159 366
Less: Amount deducted
elsewhere on return 178
$ 159 188
f
i
t
1
Schedule 5 I
i
i
i
• i
i
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975 Ceracche Ceracche
Television & Col ,
Page 1, Line 26, Other Deductions Corporation Inc. Total Eliminations Consolidated
Shop supplies and expense $. 27 101 $ - $ 27 101 $ - $ 27 101 '
Cable ma.intenance contracted 11 672 - 11 672 - 11 672
Maintenance materials and supplies 32 182 - 32 182 - 32 182
Computer and data processing charges 17 115 - 17 115 - 17 115
Dues and subscriptions 3 533 - 3 533 - 3 533
Insurance 33 248 8 335 41 583 - 41 583
Legal and accounting 36 662 401 37 063 - 37 063
Microwave service 26 280 - 26 280• 8 400 17 880
Office supplies and postage 31 644 582 32 226 360 31 866
Telephone 10 774 - 10 774 - 10 774
Travel 5 329 - 5 329 - 5 329
Truck expense 21 650 - 21 650 - 21 650
Utilities 10 902 12 802 23 704 - 23 704
Profit-sharing plan expenses 2 797 - 2 797 - 2 797
Associated press, etc, charges 10 577 - 10 577 - 10 577
Janitorial supplies 947 - 947 - 947
Studio supplies 3 949 - 3 949 - 3 949
Janitorial service - 4 152 4 152 - 4 152
Maintenance and repairs - buildings - 10 009 , 10 009 - 10 009
Maintenance and repairs - microwave and equipment 4 602 2 400 7 002 " - 7 002
Management fee - 1 733 1 733 - 1 733
Mortgage expense - 1 403 1 403 - 1 403
NYS Cable Comm, assessment 6 510 - 6 510 - 6 510
Miscellaneous _ 3 612 - 3 612 - 3 612
?00 expenses 5 124 - 124 - 5 124
TV rental expense 1 716 - 1 716 - 1 716
S 307 926 8 41 817 S 349 743 8 760 S 340 983
Schedule 6
1
♦ o ttt
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
i
i
Page 3, Question H(2)
(a) Anthony Ceracche
Ithaca, New York
085-12-7262
(b) Directly 98/♦, indirectly 2/,
i
i
}
R
i
3
• j
d
3
i
t
Schedule 7
a
A
d
C ;
r=>
ACCOUNT • 450-031179 B8 'SERIAL 0 156429 ACCOUNT f 450m814874 88 SERIAL 0 156411
1 EnA TELE VISION CORPORATION PLEASE CHECK THIS STATEMENT. TELE VISION CORPORATION PLEASE CHECK THIS STAT.M
I
,' CERACCHE519
CERACCHE
EST STATE ST. ITHACA, N.Y. 14850 IF AN ERROR IS FOUND TELEPHONE: 519 WEST STATE ST. ITHACA, N.Y. 14850 IF AN ERROR 1$ FOUND T_LE
ITHACA 272-3456 ITHACA 272.34;6'
iPROVIDING TV CABLE SERVICE SINCE 1952 CANDOR 659-7980 CANDOR 659.79M
GROTON 898.3468 PROVIDING TV CABLE SERVICE SINCE 1952 GROTON 898.3418
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
J 06.30 BALANCE FORWARD -75#90 DUE TO A PREVIOUS RATE 06.30 BALANCE FORWARD 61 .26 UNLESS PAYMENT IN FULL IS
09.01 SERVICE THRU 11m01 12.00 INCREASE] AN ADDITIONAL 0901 SERVICE THRU 1101 12.00 RECEIVED] YOUR CABLE
/�
ADDITIONAL YEARLY DUE 2. 10 AMOUNT IS DUE TO FULFILL. 09-01 SALES TAX 1101 #84 SERVICE IS SUBJECT TO
A YOUR YEARLY CONTRACT. TERKINATION IN 5 DAYS•
PLEASE REMIT THIS AMOUNT* A 85435 CHARGE IS MADE TC
V RESTORE SERVICE AFTER A
PAST DUE ACCOUNT IS PAIRA
C
I .
PAY ELEVEN MONTHS AND GET THE TWELFTH AMOUNT •00 REGULAR CABLEPAY ELEVEN MONTHS AND GET THE TWELFTH AMOUNT 74. 10 HOME BOX OFFIl.,E
MONTH FREE! TO RECEIVE THIS DISCOUNT YOUR DUE DUE
• • , MONTH FREE! TO RECEIVE THIS DISCOUNT YOUR ,
PAYr',ENT MUST BE RECEIVED BY: YEARLY '' ''' PAYMENT MUST BE RECEIVED BY: 09.10 YEARLY 131 .88
7% SALES TAX INCLUDED -
' ' '1 , , , '!
CERACCHE 519 W. STATE ST. CERACCHE 519 W. STATE ST.ACCOUNT # DATE DUE CIRCLEONE
TELEVISION CORP. ITHACA, N.Y. 14850 TELEVISION CORP. ITHACA, N.Y. 14850 ACCOUNT # DATE DUE CIRCLE 7t
450m031179 09-10 450'814874 09-610
AMOUNT -NOW DUE •00 AMOUNT NOW DUE 749:0
YEARLY AMOUNT 13103E
REGULAR CABLE HOME BOX OFFICE
WHITFORD REYNOLDS 88 PAY: CERWHITFORD REYNOLDS s8 PAY:
CERACCHE 916 Es SHORE OR• BY MAIL P OABOX 51CCHE 9EVISION CORP. 916 EAST SHORE DR• BY MAIL P.O. BOX SiE9EVISION CORP.
ITHACA NEW YORK 14850 ITHACA, N.Y. 14850 ITHACA NEW YORK 14850 ITHACA, N.Y. 14850
IN PERSON TOMPKINS COUNTY TRUST COMPANY IN PERSON TOMPKINS COUNTY TRUST COMP
ALL OFFICES, ANY TELLER'S WINDOW ALL OFFICES, ANY TELLER'S WIN T
29011' 1:0 2 131,10 2 6 41: 0 2 10 11,100 2 54811' 11• L 564 30811' 1:0 2 L 31110 2 6 41: 02 LO L11100 2 54811'
Cer._icciio ;e7 evision Corporation and Subs idiariee
15-0564299
Consolidated Form 1120
April 30, ' 1975
page 4, Schedule L - Balance Sheet
(Beginning of Year)
Line fit
1 Cash
2 Notes and accounts receivable
5 Other current assets
8 Other investments
9 Fixed depreciable assets
(a) Less : accumulated depreciation
11 Land
' 13 Other assets
14 Total assets
15 Accounts payable
j 16 Mortgages, notes less than 1 year
17 Other current liabilities
19 Mortgages, notes 1 year or more
21 Capital stock: (a) Preferred
(b) Common
22 Paid-in surplus
24 Retninrd onrwhigii
26 Total LiabiliL•ius and Stockholderu' 'lsquity,
Line 5, Other currentassets
Materials and supplies inventories
Prepaid insurance, taxes
Line 8, Other Investments
Common stock - Ceracche & Co. , Inc.
Common stock - Weatviow llo'iEhta, Inc.
Line 13, Other assets
Deferred mortgage expenses
Line 1.7, Other current linhi l i.tieg
Advance payments from cusL'omors
NYS franchise tax
Sales tax, interest, etc.
Payroll
Payroll taxes
Profit-sharing plan contribution
Schedule, 8
Ceracche Ceracche Westview
Television & Co. . Heights,
Corporation Inc. Inc. Total Eliminations Consolidated
$ (2 055) $ 2 898 -� 843
303 047 313 303 360 116 500 186 860
211 003 1 805 - 212 808 - 212 808
254 643 - - 254 643 254 643 -
1 365 209 677 543 - 2 042 752 - 2 042 752
(824 556) (169483) - (994 039) - (994 039)
- 131 885 91 767 223 652 - 223 652
1 489 - 1 4.39 - 1 489-
$1 307 291 S 64� 2 045 508_ 371 14 11. 671i 6S
122 257 104 108 39 833 266 198 109 149 157 049
93 389 6 915 5.000 105 304 - 105 304
164 598 898 7 488 172 984 7 351 165 633
232 858 330 200 28 500 591 558 - 591 558
17 900 4 000 - 21 900 - 21 900
18 000 226 506 35 187 279 693 254 643 25 050
500 - - 500 - 500
007 371 007 371.
' ,.�.1�1.-.--zU) iti �, �%iii < <)I%(�% �ti�_Z Q/ i i(1 tip` -1%1 vil 1 o-71�J )q
162 737 $ - $ - $ 162 737 $ - $ 162 737
4_8 266 1 805 50 071 50 07i
42_12 809
;• 21.9 456 $ - $ - $ 219 456 $ 219 456 $ -
'Vi 187 35 187 35 187 -
fi .. S. 1�4g9 • � fi 1 �i89 S - rfi_1 4s;�
$ 125 603 $ - $ - $ 125 603 $ - $ 125 603
898 • 137 1 035 - 1 035
2 024 - 7 351 9 375 7 351 2 024
5 569 - - 5 569 - 5 569
10 03610 036 -
- 10 G36
21 366
21. 366 21 ?c6
.L�•7 C�/�� .';' ��; ,ti 7 !� � __L12 q�� � ��,1 65 633
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
Aprf1 30, 1975
Page 4, Schedule L - Balance Sheet
(End of Year)
Line
1 Cash
2 Notes and accounts receivable
5 Other current assets
8 Other investments
9 Fixed depreciable assets
(a) Less : accumulated depreciation
11 Land
13 Other assets
14 Total assets
15 Accounts payable
16 Mortgages, notes less than 1 year
17 Other current liabilities
19 Mortgages, notes 1 year or more
21 Capital stock: (a) Preferred
(b) Common
22 - Paid-in surplus
24 Retained earnings - Unappropriated
26 Total Liabilities and Stockholders' Equity
Line 5, Other current assets
Materials and supplies inventories
Prepaid insurance, taxes
Line 8, Other Investments
Common stock - Ceracche & Co. , Inc.
Common stock - Westview Heights, Inc.
Line 13, Other assets
Deferred mortgage expenses
Line 17, Other current liabilities
Advance payments from customers
NYS franchise tax
Sales tax, interest, etc.
Payroll
Payroll taxes
Customer security deposits
Schedule 9
Ceracche Ceracche Westview
Television & Co, , Heights,
Corporation Inc, Inc, Total Eliminations Consolidated
$ 77 149 $ 2 815 $ - $ 79 964 $ - $ 79 964
140 527 65 577 206 104 5 315 200 789
252 027 2 078 - 254 105 - 254 105
354 025 - - 354 025 354 025 -
1 561 897 744 207 - 2 306 104 - 2 306 104
(958 441) (193 097) - (1 151 538) - (1 151 538)
- 131 885 c 91 767 223 652 223 652
3 430 - 3 430 - 3 430
$1 427 184 $ 756 895 91 767 $2 275 846 _ 5 40 $I 916 506
$ 173 428 $ 17 123 $ 5 315 $ 195 866 $ 5 315 $ 190 551
69 402 61 983 5 000 136 385 - 136 385
164 476 1 048 141 165 665 _ 165 665
315 837 387 037 23 500 726 374 - 726 374
17 900 4 000 - 21 900 - 21 900
18 000 288 685 72 390 379 075 354 025 25 050
500 - - 500 - 500
667 641 2 981) 14 579) 650 081 - 650081
$1 427 184 S 756 895 S 91 767 ,82 275 846 1---3-52 340 6 06
$ 235 031 $ - $ - $ 235. 031_ $ - $ 235 031
16 996 2 078 - 19 074 - 19 074
S 252 027 $ 2 078 S - $ 254 105 $ - S 254 105
$ 281 635 $ - $ - $ 281 635 $ 281 635 $ -
72 390 - - 72 390 72 390 -
354 025 - S - 354 025 S 354 02 S
S - S 3 430 S - 3 430 S S 3 430
$ 137 379 $ - $ - $ 137 379 $ - $ 137 379
- 1 048 141 1 189 - 1 189
2 210 = - 2 210 - 2 210
5 261 - - 5 261 - 5 261
7 025 - - 7 025 - 7 025
12 601 - - 12 601 - 12 601
S 164 476 $ 1048 $ 141 S 165 665 $ - S 165 665
Ceracche Television Corporation and Subsidiaries
15-0564299
Consolidated Form 1120
April 30, 1975
Ceracche Ceracche Westview
Television & Co. , ' Heights
Page 4 - Schedule M-1 Corporation Inc. Inc. Total
Line #
1 Net income per books $ 43 419 $ 1 470 $ (2 180) $ 42 709
2 Federal income tax 5 513 (5 204) (2 014) (1 705)
4 Advance payments from
customers - net increase -
in balance 11 776 -
11 776
6 Total 60 708 (3 734) (4 194) 52 780
10 Income S. 60 7QE S (4 194) S 52 78Q
- i
Page 4 - Schedule M-2
Line # '
1 Balance at beginning
of year $ 657 789 $ (26 177) $ (24 241) $ 607 371
2 Net income per books 43 419 1 470 (2 180) 42 709
3 Prior years' federal
income tax benefits (33 568) 21 726 11 842 -
Adjust, for rounding
pennies 1 - - 1
4 Total 667 641 (2 981) (14 579) 650 081
8 Balance at end of year L152 641 S (2 981) $ (14 579) $ 650 081
4
u
r -
Schedule 10
i
• r
Form A.INiiI&-16-:.i;:s Schedule
(Rev. Oct. 1971) (To be filed with each consolidated income tax return)
Department of the Treasury Taxable Year Ended .........April 30 19 75
InternalRevenue Service .... ...................................................... .7......
Common parent corporation Employer Identification Number
Ceracche Television Corporation 15_05_64299__
Address(Number,street,city,State,and ZIP code)
519 W. State St. , Ithaca, N.Y. 14850
Has the group made the election to adjust earnings and profits under section 1.1502-33(c)(4)(iii) of the
Consolidated Return Regulations? . . . . . . . . . . . . . . . . . . . . . . . . . Q Yes p No
PREPAYMENT CREDITS
EMPLOYER --- ------ —
N0. NAME AND ADDRESS OF CORPORATION IDENTIFICATION Portion of Portion of estimated
NUMBER Forms 7004 and 7005 l tax credits
tax deposits and deposits
1 Common parent corporation 12 _
000
--------------------------.......
Subsidiary corporation:
i
2 Ceracche & Company, Inc. , Ithaca, N.Y. 16 0905556 - -
------------------ ---------------------------------------------------------
Westview Heights_, Inc. Ithaca, N.Y. 16 0973436 i
------ -� -------------------------j -------------------------- ---------------------------
4
------------------- ----4
-------------------------------------------------------------------------- ;- ------- - - ---- - - -- - -
5 ------------•-----------------------------------------------------•-------- ------------------------ --------------------------------------------------------
6
------------------------- -------------------------
6 -----
- -- - -- -------------------------I ----------------•-------- -------------------------
--------------------------------------------------------------------------- --------------------------------------------------- - -------------------------
8 ----------------------------------------------------------- -- - - - ---------------------------------- --------------------------
9 ----------------------------------------------•--------------------------- -►----------------------------!------------------------=- ---------------------------
10
Totals(Must equal amounts shown on Form 1120) 12 000
Did the subsidiary CAPITAL STOCK OUT. STOCK HOLDINGS AT BEGINNING OF YEAR
make distributions of STANDING AT BEGIN. -- --— — !
NING OF YEAR Voting Nonvoting the type described in H H {
N0.' PRINCIPAL BUSINESS ACTIVITY Question ,Form 11201 — — ----P—e,,—,n — ---I Owned by lk
Q Q Number of shares t corporation
— ——-- Number of� I Number of Percent
voting number—
Yes No Voting I Nonvoting shares 'I—Dower _ shares I i
�.- -- i ;-----------
2
/i%%
1 -•--•-•------------- --- ---------------------------- --------- %///�%/ ---------- I -'."%/�%%//;%/----------///'�--- -- �� - I
Common parent corporation %//%/ / % ��//��,,
Subsidiary corporation: i
Real estate X 1188 1000 84 1 j
3 Real estate X 100 100 100 1 }
-- - - -- - - - ------------------------•----------------- --- ------ --- -- ----------- ---- - -
4 ------------------------- - --------------------- -------- ------ -------- -------- --------- -------- -------- -------- -----------
5 -----------------------------------•- ---•- ----- ---------
6 --------------------------------------•------------ ------ ------- -------- ------- ------- ------- -------- -•------ ------
7 -------------------------------------------•---- ------ ------- ------- ------- -- --- ------- -------- ------ ---------
y
8 ----------------------------------------------------- ------ ------- ------- -------- ------- •------ ------- -------- ---------
9 ----------------------------------------------------- - - - - ---..
10
Nonvoting stock which is limited and preferred as to dividends should not be shown, but information relative to the nature of the limitation and
preference as to dividends should be furnished on back under "Remarks" regarding all classes of nonvoting stock not shown.
If more than one class of nonvoting stock is outstanding, the number of shares of each class should be shown.
List all corpora—ons which at any time during the taxable year were members of the affiliated group. If any corporation was not in existence at
the beginning of the year, show the stock outstanding at date issued.
I
CHANGES IN STOCK HOLDINGS DURING THE YEAR
CORPORATION CHANGES IN STOCK HOLDINGS DURING THE YEAR
Changes Shares held at end of year
-- --- STOCK- Shares acquired Shares disposed of Voting Nonvoting
HOLDER Date
(Corpora'
No.* Name tion No.)• Percent Percent of
Voting Nonvoting Voting Nonvoting voting shares
power
2 Ceracche & Co. , Inc. 1 0/1/7 340 - - - 88 -
------ ----------------------------------------------------------------------------- ------ ----------- ----------------------- ----------• ---------- ----------
3 Westview Heights, Inc. 1 0/1/7 SO - - - 100
------ ------------------------------------------------------------------- ----------- ----------- ----------------------- ----------- ----------- ----------- -----------
-----------------------------------------------------------------------=-- ---------------------- ---------------------- ---------------------- ------ -----------
f
}
------ ------------------------------------------------------------------------------ ----------- ---------- ----------- ----------------------- ----------- ----------
*The numbers used must agree with the corporation number on front,
i
In case additional stock was issued, or if any stock was retired during the year,dates and amounts of such transactions should be shown. }
If the equitable owners of any capital stock shown above were other than the holders of record, full details
must be given.
Remarks: ------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
f
•------------------------------------------------------------------------------------- ---------------------------------•---------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
SIGNATURE
Under penalties of perjury, I declare that the above information and statements have been examined by me and i
are, to the best of my knowledge and belief, true, correct, and complete for the taxable year as stated. The Internal Revenue j
Service does not require
aseal on this form, but
if one is used, please
plats it here.
s
....................... ----------------------.__------ i
Date Signature of Officer Title
t
An affiliated group of corporations, within the meaning of section 1504 of the Internal Revenue Code, is formed at the time that the common
parent corporation which is an includible corporation becomes the owner directly of stock possessing at least 80 percent of the voting power of all
classes of stock and at least 80 percent of each class of the nonvoting stock (not including nonvoting stock which is limited and preferred as to
dividends) o! another includible corporation. A corporation becomes a member of such an affiliated group at the time that one or more members
of such group become the owners directly of stock possessing at least 80 percent of the voting power of all classes of its stock and at least 80
percent of each class of its nonvoting stock (not including nonvoting stock which is limited and preferred as to dividends).A corporation ceases to be
a member of such an affiliated group at the time that the members of such group cease to own directly stock possessing at least 80 percent of the I
voting power of all classes of Its stuck,or at least 80 percent of each class of its nonvoting stock (not including nonvoting stock which is limited and
preferred as to dividends). See sections 1501 through 1504 of the Internal Revenue Code and regulations pertaining thereto. G
U.S.GOVERNMENT PRINTING OFFICE:1971—CNeel-525 Form 851 (Rev. ]0-71)
Revised in Accordance with Tax Reduction Act of 1975
.Farm 1120-17Y Corporation Fiscal Year FY
Tax Computation Schedule 1974-75
Department of the Treasury (This schedule is to be used in lieu of the Tax Computation
Internal Revenue service Schedule on 1974 Forms 1120, 1120F, 990—C and 990—T) (Rev. 4-75)
Attach to your tax return.
For taxable year beginning ....M�y..l......................1 1974 and ending ...APril 30 ........ 1975.
Name Employer Identification number
Ceracche Television Corporation & Subsidiaries 115 0564299
Address (Number and street)
519 West State Street
City or town, State, and ZIP code
Ithaca, N.Y. 14850
'7�' Computation of Regular Tax
Computation at Tax Rates Applicable Before 1/1/75
Form 1120, page 1, line 30 . . . . . . . . . . . I.
Form 1120F, page 3, line 30 .
1 Taxable Income i
Form 990—C, page 1, line 32 . . . . . . . . . . . -------------52 780 _ S
Form 990—T, page 1, line 6 (see instructions) . . . . 1
2 Surtax exemption—enter line 1 or$25,000, whichever is lesser. (Component members of a controlled 25 000
group—see instructions and enter your surtax exemption or line 1, whichever is lesser)
3 Line 1 less line 2 . . . . . . . . . . . . . . . . . . . . . . . . . 27 780
4 22%of line 1 . . . . . . . . . . . . . . . . . . . . . . . . --------------11 '611
5 26%of line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . ------....7 223
----- -------------
6 If multiple surtax exemption is elected under section 1562,enter 6% of line 2 . . . . . . . .
7 Total of lines 4, 5, and 6. If applicable, enter here and on line 1, Part III 18 834
Computation at Tax Rates Applicable After 12/31/74
8 Enter amount from line 1, Part I (see instruction "Computation of Tax") 52 780 ,
, r
9 Enter line 8 or$25,000,whichever is lesser(members of a controlled group, see instructions) . . , 25 000
I�
10 Line 8 less line 9 27 780
3
11 Enter line 10 or $25,000, whichever is lesser (members of a controlled group, see instructions) 25 000 r
i
ti
12 Line 10 less line 11 . . . . . . . . . . . . . . . . . . . . 2 780
13 20% of line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . ...............5__000__
---
14 22% of line 11 . . . . . . . . . . . . . . . . . . . . . . .
. . . 5 500
'----------------------------- y..
d
f
15 48% of line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 334 F
gI
16 Total of lines 13, 14, and 15. If applicable, enter here and on line 3, Part III 11 834
i
i
i
r
I
_ e
ji
9
•Form 4120-FY (1974-75) (Rev. 4-75) Page 2
Computation of Alternative Tax
Computation at Tax Rates Applicable Before 1/1/75
1 Taxable income(line 1,Part 1) . . . . . . . . . . . . . . . . . . . . . .
..............................
2 Excess of net long-term capital gain over net short-term capital loss . . . . . . . . . . .
3 Line 1 less line 2 .
4 Surtax exemption enter line 3 or$25,000, whichever is lesser. (Component members of a controlled
group—see instructions for line 2, Part I and enter your surtax exemption or line 3,whichever is lesser)
5 Line 3 less line 4 . . . . . . . . . . . . . . . . . . . . . . . .
6 22% of line 3 . . . . . . . . . . . . . . . . . . . ------------------------------
7 26% of line 5 . . . . . . . . . . . . . . . . . .
8 If multiple surtax exemption is elected under section 1562,enter 6% of line'4
9 Total of lines 6,7,and 8. . . . . . . . . . . . . . . . . . . . . . . . .
10 Enter amount from line 2
11 Enter subsection (d) gains, if any (see instructions) . . . . . . . . . . . . . . . .
12 Line 10 less line 11 (if less than zero, enter zero) . . . . . . . . . . . . . . . . .
13 25% of the lesser of line 10 or line 11 . . . . . . . . . . . . . . . . . . .
..............................
14 30% of line 12 . . . . . . . . . . . . . . . . . . .
15 Total of lines 13 and 14. . . . . . . . . . . . . . . . . . . . .
16 Alternative tax—total of lines 9 and 15. If this amount is less than the regular tax on line 7, Part I,
enter here and on line 1, Part III
Computation at Tax Rates Applicable After 12/31/74
17 Taxable income (line 1, Part 1)
18 Excess of net long-term capital gain over net short-term capital loss . . . . . . . . . . .
19 Line 17 less line 18 .
------------------------------
20 Enter line 19 or $25,000, whichever is lesser. (Members of a controlled group, see the instructions
for lines 9 and 11, Part 1) . . . . . . . . . . . . . . . . . . . . . . . .
21 Line 19 less line 20 .
22 Enter line 21 or $25,000, whichever is lesser. (Members of a controlled group, see the instructions
for lines 9 and 11, Part 1) . . . . . . . . . . . . . . . . . . . . . ,
23 Line 21 less line 22 . . . . . . . . . . . . . . . . . . . . . . . .
24 20% of line 20
25 22% of line 22 - - --
26 48% of line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . .
27 Total of lines 24, 25, and 26 . . . . . . . . . . . . . . . . . . . . . . .
28 Enter amount from line 18 .
------------------------------
29 Enter subsection (d) gains, if any (see instructions) . . . . . . . . . . . . . . . .
30 Line 28 less line 29 (if less than zero, enter zero) . . . . . . . . . . . . . . . . .
31 25% of the lesser of line 28 or line 29 . . . . . . . . . .
32 300/0 of line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . .
33 Total of lines 31 and 32 . . . . . . . . . . . . . . . . . . . . . . . .
34 Alternative tax—total of lines 27 and 33. If this amount is less than the regular tax on line 16, Part I,
enter here and on line 3, Part III
Form 1120-FY (1974-75) (Rev. 4-75) Page 3
r - Proration of Tentative Taxes
1 Tentative tax (regular tax from line 7, Part I or alternative tax from line 16,
Part 11, whichever is lesser) . . . . . . . . . . . . . . 18 834
2 Portion of tentative tax before 1/1/75—see Instructions for computation . . . . . . . 12 642
........................ .....
3 Tentative tax (regular tax from line 16, Part I or alternative tax from line 34,
Part 11, whichever is lesser) . . . . . . . . . . . . . . . 11 834
4 Portion of.tentative tax after 12/31/74—see instructions for computation . . . . . . . . . 3 891
5 Income tax—add lines 2 and 4 16 533
6 (a) Foreign tax credit (attach Form 1118) . . . , . . . . . .
(b) Investment credit (see instructions—attach Form 3468—M . . . 16 533
(c) Work incentive (WIN) credit (see instructions—attach Form 4874—FY)
i
7 Total of lines 6(a), (b), and (c) . . . . . . . . . . . . . . . . . . . . 16 533
8 Line 5 less line 7 . . . . . . . . . . . . . . . . . . . . . . . . . 0
9 Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . . . . 0
.............................. i
10 Tax from recomputing a prior year investment credit (attach Form 4255) . . . . . . . O
•------------------- ---------
11 Tax from recomputing a prior year WIN credit (attach computation) . . .. . . . . . .
12 Minimum tax on tax preference items (see instructions—attach Form 4626) . . . . . . . . 0
13 Total tax—add lines 8
Form 1120, page 1, line 31 . . . . . . . . .
through 12. Enter here Form 1120F, page 1, line 2 (disregard lines 3 and 4) . . . 0
and on Form 990-0, page 1, line 33 . . . . . . . . . . .
Form 990—T, page 1, line 25 .
i
Form 3468-FY Revised in Accordance with the Tax Reduction Act of 1975 �Y
" --
ZRev. April 1975) Computation of Investment Credit
Department of the Treasury (For taxpayers with fiscal years beginning in 1974 and ending in 1975.) 1974-75
Internal Revenue Service 1� Attach to your tax return
Name Identifying number as shown on page 1 of your
' tax return
Ceracche Television Corporation & Subsidiaries 15 0564299
Note: Include your share of investment in property made by a partnership, estate, trust, small business corporation, or lessor.
1 Qualified investment in property acquired or constructed prior to January 22, 1975 and placed in service during the taxable year.
(See instructions C and D for eligible property.)
property Line LifeyearsCost or basis Applcable Qualified(Investment
(See instruction G) percentage (Column 2 x column 3)
(a) 3 or more but less than 5 6 958 331/3 2 319
New --------------------------------
property (b) 5 or more but less than 7 21 976 662/3 14 651
--------------------------------
(c)
------------------------------
(c) 7 or more 149 255 100 149 255
--------------------------------
Used (d) 3 or more but less than 5 331/3
property - -----------------------
(See instructions for (e) 5 or more but less than 7 662/3
dollar limitation) (f) 7 or more 1 550 100 1 550
2 Add lines 1(a)through (f) . . . . . . . . . . . . . . . . . . I 167 775
3 7% of line 2 (4% for public utility property) 11 744
4 Qualified investment in property acquired or constructed and placed in service after January 21, 1975 during the taxable year,
and qualified progress expenditures made after January 21, 1975.
(a) 3 or more but less than 5 10 946 331/3 3 648
New (b) 5 or more but less than 7 3 360 662/3 2 240 _
property
(c) 7 or more 59 048 100 --------------59 01+8 -
--------------------------------
Qualified progress expenditures (d) 7 or more 20
Used (e) 3 or more but less than 5 331/3 1
property - ---- -----------•---------- I
(See instructions for (f) 5 or more but less than 7 663/3
dollar limitation) (g) 7 or more 100
5 Add lines 4(a) through (g) . . . . . . . . . . . . . . . . . . . . . . . 64 936
6 10% of line 5 . . . . . . . . . . . . . . . 6
- 494---------- -------------
7 Electing corporations with qualifying employee stock ownership plan—Enter 1%of line 5. (Attach election statement.) . ................................
8 Carryback and carryover of unused credit(s). (See instruction F and instruction for line 8—attach computation.) . . . _
9 Tentative investment credit—Add lines 3, 6, 7, and 8 18 238 }!
Limitation
10 (a) Individuals—Enter amount from line 16, page 1, Form 1040 . . . . . . I
16 533
(b) Estates and trusts—Enter amount from line 24 or 25, page 1, Form 1041 . : . --------------------------------
(c) Corporations—Enter amount from line 5, Part III, Form 1120–FY (Rev. 4-75) . .
11 Less:
(a) Foreign tax credit
(b) Retirement income credit(individuals only) . . . . . . . . . . . ........................
(c) Tax on lump-sum distributions. (See instruction for line 11.) . . . . .
12 Total—Add lines 11(a), (b), and (c) . . . . . . . . . . . . . . . . .
13 Line 10 less line 12 . . . . . . . . . . . . . . . . . . . . . . 16 533
14 (a) Enter amount on line 13 or$25,000,whichever is lesser. (Married persons filing separately, con-
trolled corporate groups, estates, and trusts, see instruction for line 14.) . . . . . . . ----------------16--533----
(b) If line 13 exceeds line 14(a), enter 50% of the excess. (For public utility property, see section 46(a)(6).) . • .
15 Total—Add lines 14(a) and (b) 16 533
16 Investment credit—Amount from line 9 or line 15, whichever is lesser (enter here and on line 50,
Form 1040; line 6(b), Part 111, Form 1120–FY (Rev. 4-75); or the appropriate line on other returns) . 16 533
Schedule A.—If any part of your investment in lines 1 or 4 above was made by a partnership,estate,trust,small business corporation,or lessor,complete
the following statement and identify property qualifying for 7%, 10%, and progress expenditures.
Name Address Property
(Partnership, estate, trust, etc.)
New Used Life years
If property is disposed of prior to the life years used in computing the investment credit, see instruction E.
Form ` trV a yt��`�a14 Rel.
(Rev.Oct. 1974) to f=ile Corporation lacome rax ireturn
Department of the Treasury
Internal Revenue Service (Under section 6081(b)-of the Internal Revenue Code)
Note: Prepare this form in duplicate. File'the original with the Internal Revenue Service Center where you are required to file
your income tax return. Attach the duplicate to your income tax return.
A penalty for failure to pay tax will generally be imposed upon any corporation which files Form 7004 and underestimates by
more than 10% its tentative amount of income tax for the taxable year. See instruction F.
Name of corporation Employer Identification Number
Cr1VAcc"f 7-F1. F✓1,T10A1 COR,? 4?, s�sBs/�/.��/ES Ar- 0 5'1,4 z 9?
Number and street Check type of return to be filed:
T^7-r S7— ® Form 1120 Form 11205
J �7 / Form 1120L Form 990–C
City or town,State,and ZIP cods
Form 1120M E] Form 990–T
0 Form 1120F—Check here
/T}!A C.4 !(l• r'� ��O a o if you do not have an
J office or place of j
business in the U.S.
An automatic 3-month extension of time until ..D.I:;•j-.... ,7--,19.26x, is hereby requested in which to file the income tax return
of the corporation named above for the taxable year beginning.... j......, 19.75!.., and ending 19_7,5-
0
9_7 5-❑ change in accounting period i
1. If the taxable year above is for a period of.less than ❑ filing of initial tax return
12 months, check here if the short'period is due to . . . . . . . . . . . . . ❑ filing of final tax return
❑ other (attach explanation)
2. Does this application also cover subsidiaries to be included in a consolidated return? . . . . . . . . Yes JR No ❑
If"Yes,"complete the following:
Name and Address of Each Member of the Affiliated Group Employer Identification No.
Vr 16
-CERA-CCHF � L � 1,VC, Irl?--W. STf� TC,�T- f`tJ�7ic�!r�
WEsr✓/1�7w H4 16 7ZS, /Nc., .r/J1 w, sT47-F,5J /'rY, .c,41Jf✓Y /41P — D9'-73 y36
--------------------------------------------------------------- ---------------------------------------------- ----------------------------------------
-------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------
- t
3. At least 50% of the tax tentatively determined to be due (line 3(c)) must be deposited on 'or before the original due
date of the corporation's income tax return. See instructions for depositary method of payment.
A penalty for failure to pay tax will generally be imposed upon any corporation which files Form 7004 and
underestimates by more than 10% its tentative amount of income tax for the taxable year. See instruction F.
(a) Tentative amount of income tax for the taxable year including any— l
Minimum tax on tax preference items
Personal holding company tax a4 D
Tax from recomputing a prior year investment credit
Tax from recomputing a prior year work incentive(WIN)credit
Foreign tax credit
Investment credit
WIN credit
(b) Less: (i) Overpayment from prior year allowed as a credit . . . . . . . .......! _�QQ_
(ii) Estimated Ox payments (d1cpcf itE) for the taxable year . . . ,
(iii) Less refund of estimated tax for the taxable year applied for on Form 4466 . _(----------------------)_ rr
(iv) Credit from regulated investment companies . . . - , - - ---------------------------
(v)
_____ _______ ________(v) Credit,for U.S. tax on special fuels, nonhighway gas and lubricating oil O0 O
(c) Balance dueNO/1JE
(d) Amount required to be deposited—at least 50% of line 3(c)
SIGNATURE (See instruction 1)
Under penalties of perjury, I declare that I have been authorized by the above-named corporation to make this application,
that to the best of my knowledge and belief the statements made herein are true, correct, and complete, and that I am: x
(l an officer of the corporation;
a duly authorized agent holding a power of attorney;
an agent enrolled to practice before the Internal Revenue Service;
EJ an attorney in good standing of the bar of the highest court of ............................................
^/ (Specify jurisdiction)
a certifi publi ccountP duly qualified to practice in .....lX. .W........2"., F-K....................
(Specify jurisdiction)
------- -- -- -- ---- ` --- --------- ------------- ----------------------------
A - - -
(Signature of officer or ag t) - -
(Title) (D te)
A Copy of This Application (dust Be Attached to the Corporation's Income Tax Return
C ITY O F ITHACA
TOMPKINS COUNTY
ITHACA, NEW YORK 14850
TELEPHONE: AR 2-1713
CODE 607
July 16 , 1976
To : All Council Members
From: Donald Slattery, Chairman
Charter $ Ordinance Committee
Please review this revised version of the cable fran-
chise . The changes are a result of a further meeting with
Mr. Ceracche and the Cable Commission at which time he pre-
sented additional financial details relating to home box of-
fice and extra channel service.
The recommendation for these changes is unanimous from
both the Charter & Ordinance Committee and the Cable Commis-
sion.
DS :br
a�
;
51 9 W E S T S T A T E S T R E E T • I T H A C A . NEW YORK 1 4 8 5 0
July 27, 1976
Common Council '
City of Ithaca
Ithaca, New York 14850
Gentlemen:
I am enclosing herewith Revisions to the Proposed Amendments
of the City of Ithaca Cable Television Franchise. If the Common Council
is willing to adopt these revisions, then Ceracche Television Corporation
in turn will be willing to enter into an agreement with the City of Ithaca.
These revisions are fair and reasonable to the City of Ithaca and to Ceracche
Television Corporation and will make the franchise acceptable.
We are very desirous of coming to a swift conclusion in this matter
so that our company can continue to provide the best possible cable television
service to the City of Ithaca.
Sincerely,
Anthony Cera che, President
Enclosure
REVISIONS TO THE PROPOSED AMENDMENT OF THE
CITY OF ITHACA CABLE TELEVISION FRANCHISE
Paragraph 10(b):
Committee Proposal:
_ "The Grantee shall certify to the City and provide such
required documentation to prove that it is in fact meeting
the minimal technical standards required by the FCC. Said
certification and documentation may be twice yearly, as may
be requested by the City. If in the belief of the City the
minimum technical standards are not being met, or if the
Grantee shall fail to provide such certification and documen-
tation as required herein, then the City may, at its sole
option, employ the services of the New York State Commission
on Cable Television engineering van to make verification
checks within the City. The Grantee agrees to pay for a
maximum of two such verification checks per year should
they be required by the City. "
Ceracche Proposal:
The Grantee agrees to meet all FCC and State Cable Commission
technical standards. In the event the City believes that Grantee
is not meeting these obligations, it can complain to either
the FCC or the State Cable Commission and Grantee agrees to
abide by any final order adopted by either Commission.
Reason for Ceracche's Proposal:
The proposed requirements are burdensome and are not
acceptable. The FCC and the State Cable Commission are
the bodies set up to determine and police technical
standards for cable television systems. Ceracche
Television Corporation is unwilling to be put to the expense
to further certify and document to the City that it is in
compliance with applicable rules and it is unwilling to
employ the services of the State Cable Commission
engineering van for this purpose.
-2-
Paragraph 10(c):
Committee Proposal:
"Service shall be defined to include the providing of cable
service to subscribers' homes and businesses in the City through
the use of cable and necessary instruments. Further service
shall include the program services provided by Ceracche
such as over-the-air broadcast pictures, pay television
programs and local origination. Additional services should
be provided only after securing City approval. "
Ceracche Proposal:
Service shall be defined to include the providing of cable
service to subscribers' homes and businesses in the City through
the use of cable and necessary instruments. Further service
shall include the program services provided by Ceracche
such as over-the-air broadcast pictures, pay television
programs and local origination.
Reasons for Ceracche's Proposal:
The FCC",has preempted local municipalities from regulating
all additional services. Accordingly, there is no legal
basis for the City to provide for any prior municipal approval
for additional services.
Paragraph 11(b)(1):
Committee Proposal:
'Residential or Commercial establishments; Maximum
charges: First installation charge - $20. 00. Each additional
installation $10. 00. Rental for first installation - $5. 50
per month, basic cable service including, 22 channels.
Additional rental charge for each extra set at the same
establishment: Residential 50 Cents per month per set.
Commercial: $1. 00 per month per set. "
Ceracche Proposal:
Residential or Commercial establishments; Maximum
charges: First installation charge - $20. 00. Each additional
installation $10. 00. Rental for first installation - $5. 50
-3-
per month, basic cable service. Additional rental charge
for each extra set at the same establishment: Residential :
no change will be made in the present charge of 50 Cents
monthly for additional hookups to the same subscriber at
the same address that were in operation as of March 1,
1975, such additional hookups to be billed at the price of
$1. 00 monthly per additional hookup installed after March 1,
1975. Commercial: $1. 00 per month per set.
Reasons for Ceracche's Proposal:
Ceracche Television Corporation is unwilling to agree that
twenty-two channels constitutes basic cable service. This is
a business judgment that it must make. In this connection,
the number of channels to be delivered turns upon FCC
regulations as well as potential copyright liability. The City
can be assured that Ceracche Television Corporation will
provide the maximum number of channels which are practicable
as is presently the case.
Paragraph 17:
Committee Proposal:
"The Grantee shall pay to the City Chamberlain annually a sum
equal to three per centum (3%) of its gross revenues from its
cable service operations within the City, said gross revenues
to include the "basic" charges and rentals as set forth in
paragraph No. 11 hereinabove and the charges and rentals
as set forth in paragraph No. 32 hereinbelow. The City may
increase the per centum sum in the first sentence of this
paragraph as permitted by law or regulations of the FCC or
New York State Cable Commission. Such fees shall be and
constitute a lien upon the property of the Grantee within the
City prior and superior to all other debts, obligations,
taxes, mortgages, or liens of whatsoever nature regardless
of the time of the creation thereof. Failure to make the
required report or pay such franchise fees shall be grounds
for revocation of this franchise. "
Ceracche Proposal:
The Grantee shall pay to the City Chamberlain annually a sum
equal to two per centum (2%) of its gross revenues from its
cable service operations within the City, said gross revenues
-O-
to include the "basic" charges and rentals as set forth in para-
graph No. 11 hereinabove and the charges and rentals as set
forth in Paragraph No. 32 hereinbelow. The City may increase
the per centum sum in the first sentence of this paragraph as
permitted by law or regulations of the FCC or New York State
Cable Commission. Such fees shall be and constitute a lien
upon the property of the Grantee within the City prior and
superior to all other debts, obligations, taxes, mortgages, or
liens of whatsoever nature regardless of the time of the creation
thereof. Failure to make the required report or pay such fran-
chise fees shall be grounds for revocation of this franchise.
Reasons for Ceracche's Proposal:
Ceracche Television Corporation is willing to agree to the
doubling of its present franchise fee from one percent to
two percent. It is unwilling to triple the franchise fee paid
to the City of Ithaca. In this connection, pursuant to the
FCC's rules in 1977 we will be required to amend all of our
franchises to make them comply with FCC rules. We
anticipate during these negotiations with the approximately
dozen other municipalities in Tompkins County that the
precedent established in the City of Ithaca franchise will
be controlling. Our company cannot afford to pay three
percent to each of these communities.
Paragraph 29(a):
Committee Proposal:
"Within thirty days of the receipt of final operating authority,
Grantee shall post security with the City in the amount of
$10, 000 in the form of a letter of credit. "
Ceracche Proposal:
Delete.
Reasons for Ceracche's Proposal:
This provision should be deleted entirely because the
State Commission on Cable Television in a pending rule-
making proceeding (Docket No. 90078) issued on May 23,
1976, had proposed to delete entirely the requirement that
-5-
cable systems post security to ensure faithful performance
of franchise terms when the system has been completed.
In view of the State Commission's proposal, which ought
to be adopted by it shortly, no useful purpose would be
served by providing for the posting of security.
Paragraph 31(b):
Committee Proposal:
"A charge of $1. 00 per month per television receiver may be
made for the provision by Grantee of a converter for the reception
of either subscription or pay cable programming or the reception
of additional broadcast channels that may be received only with
such converter. Said converter shall be capable of providing both
pay cable programming and extra channels such that when a
subscriber requests both pay cable programming and extra channel
service the subscriber shall be charged only a single $1. 00 fee
for the converter which shall be capable of providing both services
when the additional $6. 00 per month fee for Home Box Office is
paid. "
Ceracche Proposal:
A maximum charge of $2. 00 per month per television receiver
may be made for the provision by Grantee of a converter for the
reception of either subscription or pay cable programming or
the reception of additional broadcast channels that may be re-
ceived only with such converter. Said converter shall be capable
of providing both pay cable programming and extra channels such
that when a subscriber requests both pay cable programming and
extra channel service the subscriber shall be charged only a
single $2. 00 fee for the converter which shall be capable of
providing both services when the additional $6. 00 per month fee
for Home Box Office is paid.
Reasons for Ceracche's Proposal:
It is our understanding that the Committee has agreed to a
$2. 00 per month charge for extra channel service but restricted
this to $1. 00 per month when Home Box Office service is involved.
We see no reason for the distinction and such distinction is
patently unreasonable. Without the added $2. 00 per month
the future rendition of Home Box Office service is not financially
feasible.
-6-
Paragraph 31(g):
Committee Proposal:
"The City Cable Commission shall act as the Common Council
agent in resolving disputes between the Ceracche Television
Corporation and public access users."
Ceracche Proposal:
The City Cable Commission shall act as the Common Council
agent in resolving disputes between the Ceracche Television
Corporation and public access users in the City of Ithaca.
Reasons for Ceracche's Proposal:
Ceracche Television Corporation is unwilling to deal with the
City Cable Commission on behalf of subscribers outside of the
City of Ithaca.
Paragraph 34:
Committee Proposal:
"The Grantee shall be required to provide to the City at the
Grantee's sole expense audited financial statements upon any
application by the Grantee for any increase in rates hereunder
for use in determining such rates to be permitted in the City
of Ithaca. The Grantee shall also be required to submit its
annual financial statements, Uniform Cable Commission financial
reports, and State and Federal Income Tax Returns and any
other reasonable financial information requested, to the Common
Council annually as soon thereafter as they may be available. "
Ceracche Proposal:
Delete.
Reasons for Ceracche's Proposal:
Paragraphs 10 and 27 of the franchise fully protects the City's
rights to reasonably monitor the financial condition of Ceracche
Television Corporation. The State Commission's rules require
all cable companys to keep their books on the basis of the Uniform
System of Accounts. That exhaustive financial data is available
to the City. To require us to provide more information is patently
unreasonable and is burdensome. Furthermore, if we were to
rr77 1
- -
- r
provide the type of information required in proposed paragraph
34, proper interpretation of those documents would necessitate
the City hiring qualified persons to perform these services.
We think that such an expenditure under the circumstances is
clearly unreasonable.
Paragraph 35:
Committee Proposal:
"The value of this franchise at the end of the term or at such
earlier time as it may be terminated, shall be zero. "
Ceracche Proposal:
Delete.
Reasons for Ceracche's Proposal:
We see no reason to include this paragraph. It has never
been discussed and we do not understand the need to include
it. To my knowledge such a provision is never contained
in CATV franchises.
�RATEO -�
CITY OF ITHACA
10B EAST GREEN STREET
ITHACA, NEW YORK 1-48SO
OFFICE OF TELEPHONE: 272-1713
MAYOR CODE 607
MEMO TO: Hon. Dana Ulloth, Chairman of the Cable Commission
Hon. Joseph Rundle , City Clerk
Hon. Martin A. Shapiro
FROM: Mayor Edward J. Conley
DATE: September 16, 1976
SUBJECT: Complaint - Ceracche TV Corp.
Attached hereto please find a copy of a letter from the New York
State Commission on Cable Television along with a copy of a complaint
they received in regard to Ceracche TV Corp. for your information.
EJC:rb
ATTACH.
CC: Hon. Donald Slattery, Chairman
of the Charter & Ordinance Comm.
c t
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA, JERRY A. DANZIG EiI-NAGFPR-
ALBANY, N. Y. 12223 VICE-CHAIRMAN COMMISSIONER
(518)474-4992 MICHAEL H. PRENDERGAST EDWARD J.WEGMAN
COMMISSIONER COMMISSIONER
ROBERT F. KELLY C. LYNN WICKWIRE
CHAIRMAN EXECUTIVE DIRECTOR
September 14, 1976
Hon. Edward J. Conley
Mayor, City of Ithaca
City Hall
Ithaca, NY 14830
Dear Mayor Conley:
Enclosed is a copy of a complaint we received from a
constituent of yours. We received it on September 13, 1976
and forwarded a copy to Ceracche TV Corp, asking for a
reply within 10 days.
The enclosed is for your information since this company
is operating within your jurisdiction.
If we can ever be of any assistance to you, do not hesitate
to contact us.
Sincerely,
J Perkins
Feld Investigator
Enclosure
SI �
916 E. Shore Dr.
Ithaca, N.Y. 14850
September 9, 1976
Q!;�
Public Service Commission
Communications Division
44 Holland Ave.
Albany, N.Y. 12200 LIRA NY
Gentlemen:.
I am enclosing xerox copies of two checks written to Cerrache Television
Corp. , 519 W. State St., Ithaca, N.Y. 14850, and current statements from
them.
Check #1 was written November 4, 1975 to cover cable and home box office
charges for the Month of November 1975. Shortly after mailing this check
we received a note offering us twelve months service if we paid eleven
months in advance. I called the office and was told if I would send an
additional $120.00 it would cover .the year service. Check #2 dated Nov.
4, 1975 is my remittance.
My problem is"that I have been billed each month thereafter until July
of this year when the cable statement was finally corrected. I have
called and written notes asking for correction on home box and am
sending you the current billing hoping that you can get through to them.
Please note the five day shut off notice. This has appeared on all previous
statements.
I am probably more annoyed over this situation as this is the third time
that I have had difficulties with Cerrache. The first problem arose when
I received a monthly payment book with $5.00 coupons. I paid this for
several months and then received a notice that I owed additional money.
I questioned it and they said I should have been billed at $5.50 per month.
I suggested that my coupon should have been for that amount and they
finally agreed to that, and that was corrected.
Then we ordered Home Box and it was installed for $18.00 for which we paid
cash. The next month we were billed for that. We sent a xerox copy of
our receipt and that was taken care of.
Mr. Cerrache is trying to make the point in our town that he needs more
funds and is asking for an increase in rates. One wonders if he had a
-more competent bookkeeping department perhaps he might have fewer financial
problems.
t�
At this point I feel that I have more than earned my one month 6'g� �harge. ,.
In fact I have spent more time and postage ( not to mention houtmg blodd) 1� J
pressure has zoomed with each statement) than the thing has been worth. -�
f r'ct,
Anything you can do for me will be -
y g y greatly appreciated. �,.,�-, • ..�
Yours truly,
it .cz,::-
�:wJcar�ai::.`:WYiYa6Af=ni�xaa:.d^..•L.:Afc3M^ar:'. ...�s_:w-.'..��.Us.,t 'T.::�c.:.:-Al.-.Z..0 h....v_.....w..::..�..._:..• .n.mt.:. _...�J.waC•'_�
W11ITruRD L.Tt1:Y:.ou)s 2 :'._ 4 3
i< C
AYIn:1: IM. I1EY,NO LDS 1
916 EAST SIIOR6_DRIVE it
ITHACA, N. Y. 1'1x50 '/ i ' ='0-=02
213
• PAY 1 O 111E
fs QKDLR Or
�^7 = .L�Gi�L•Z.!� r%✓_L �C �. — I .— -- - - DQLLA9-S. p
FIRST NATIONI HACA -,
l..E �� „w;,w.,... .,w wa a,ww:t towrww.yr u.:•c♦ , � •, {
7cr Y- "r e .Z.
MFMO__f.i�l� S�VYr��j--/�//r/ —__—.—T.`�•..•t..•�+•{'._.. .__. �_.._. .--r'.L+.''`LL fi •
:t
1:0 2 13,,-0 21� 21: 2 68--1 7 1 4 3 71-1 1u°
• r
_- Y2 Aw-�.r3'6TT1Y ...MG•.�•"Nw -.w�.�.^P�.Qllll"�� '�lt':'LC�f.www MtlVb'O.' s/.•ni.. _ .. 'T:. �_".'T{�"�b•�'��
■��'�•�-�i�7JL'ltiQti.'Y��I �V�+TJI.i:R:ww. .../41'.., w.�YYf.'Tini•..w-'.v:C'.t Si..ti�._....,...s..v.,_. '.: .��.{
1 -WHITFORD L. RrYKOI.T)S "
AYD6r 1M. RrY.NOLDS, w = ?_ 1 3 7 F:
916 HAST SHORr DRIVE,
,r ITHACA, N. Y-.. 14b5U 50-262
•:-- i 1
PAY TO THE • �' }•
ORDER OEC r—_. -- --- $—✓ ----- r
VA P
--- {(
`r-► FIRST NATIONAL tTf{rtCA
• i� fiPSl,w�1::A.L N.w4,i9Uf{[UY.1\.;,•Itn4:♦ � '
nw�:..wtA.wa naso i� (/, 1 /7•s �} `. t:
0 1:0 2 13-0 2C, 21: 2 6 8 E-17 14 3 7--1 1��• ��''-0�l O q 0 0�1 200,1
•. -'icy W.!*."- '.��-weac.2�e•�^„`f4'^i�4^:t yam:�1'a'aVn'r-�-.�.aava y!._�- ^:mmY4.`.. r: ...-.,-. ��.7us•>^ca•:..-.-:re:..,:.:.-�.-"sszFc'.'.':A
r
- _ j
CITY OF ITHACA
TOMPKINS COUNTY
ITHACA, NEW YORK 14850
OFFICE OF TELEPHONE: 272-7713
THE MAYOR CODE 607
MEMO TO: Hon. Joseph Rundle, City Clerk
Hon. Dana Ulloth, Chairman - Cable Commission
Hon. Donald Slattery, Chairman - Charter and Ordinance
FROM: Mayor Edward J. Conley
DATE: July 28 , 1976
SUBJECT: New York State Commission on Cable Television
Attached hereto please find a letter received from the New
York State Commission on Cable Television along with a complaint
from one of our constituents in regard to Ceracche Television Corp .
for your attention.
EJC: rb
ATTACH.
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA, JERRY A. DANZIG eur1PoA13Elt
ALBANY, N. Y. 12223 VICE-CHAIRMAN GOMMI*19OMeR
(518)474-4992 MICHAEL H. PRENDERGAST EDWARD J.WEGMAN
COMMISSIONER COMMISSIONER
ROBERT F. KELLY C. LYNN WICKWIRE
CHAIRMAN EXECUTIVE DIRECTOR
July 26, 1976
Hon. Edward J. Conley
Mayor, City of Ithaca
Ithaca City Hall
Ithaca, NY 14850
Dear Mayor Conley:
Enclosed is a copy of a complaint we received from a
constituent of yours. We received it on July 22, 1976
and forwarded a copy to Ceracche Television Corp. asking for a
reply within 10 days.
The enclosed is for your information since this company
is operating within your jurisdiction.
If we can ever be of any assistance to you, do not hesitate
to contact us.
Sincerely,
Jeld
, Perkins
Investigator
Enclosure
M
NEW YORK STATE COMMISSION
ON CABLE TELEVISION
TOWER BUILDING, EMPIRE STATE PLAZA, JERRY A. DANZIG ��¢¢.
ALBANY, N. Y. 12223 VICE-CHAIRMAN �o +c
(518)474-4992 MICHAEL H. PRENDERGAST EDWARD J. WEGMAN
COMMISSIONER COMMISSIONER
ROBERT F. KELLY C. LYNN WICKWIRE
CHAIRMAN EXECUTIVE DIRECTOR
9
October 212 1976
Hon. Edward J. Conley
Mayor, City of Ithaca 1
108 East Green Street
Ithaca, NY 14850
Dear Mayor Conley:
This is to inform you that we have received your
letter of October 15, 1976, containing the franchise
submitted to Ceracche Television Corporation. We
will review this material and advise you as soon as
possible.
If you have any questions in the meantime, please
feel free to contact me.
Sinc rely,
Donald P. Buckelew
Director, Municipal Assistance
and Policy Development
mp
.. Y •`® OCT 2 6 1976
CITY OF I'I'HACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
OFFICE OF
TELEPHONE: 272-1713
MAYOR
CODE 607
MEMO TO: Mr. Dana Ulloth, Chairman of the Television Cable Comm.
Mr. Joseph Rundle , City Clerk
FROM: Mayor Edward J. Conley
DATE: October 26 , 1976
SUBJECT: Ceracche Television Corporation Franchise
Attached hereto please find a copy of a letter received today from
the New York State Commission on Cable Television in Albany, New
York for your information.
EJC rb
ATTACH.
F
��p�R�17E0
CITY OF ITHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
OFFICE OF
TELEPHONE: 272-1773
MAYOR CODE 607
MEMO TO: Mr. Dana Ulloth, Chairman , Cable Comm-.
Mr. Joseph Rundle: City Clerk
Mr. Donald Slattery, Chairman of the Charter and Ordinance
FROM: Mayor Edward J. Conley
DATE: October 27 , 1976
SUBJECT: Commission on Cable Television
Attached hereto please find a copy a clarification of policy
"In the Matter of The Definitions of "cable television system"
and "master antenna television system" -- Sections 812 (2)
and 812 (6) of the Executive Law" for your information.
EJC:rb
ATTACH.
x�z . �? u�. e
. � Cc IT` c)
f
Py A
a��+1�AT Ca ti�
CITY QF ETHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14860
OFFICE OF TELEPHONE' 272-1713
MAYOR
CODE 607
MEMO TO: Hon. Dana Ulloth, Chairman of the Cable Commission
Hon. Donald Slattery , Chairman of the Charter and Ordinance
Hon. Joseph Rundle, City Clerk
Hon. Martin A. Shapiro, City Attorney
FROM: Mayor Edward J. Conley
DATE : November 12 , 1976
SUBJECT: Extension of Time to File Comments
Attached hereto please find a memo from the New York State
Commission on Cable Television in regard to the above entitled
matter.
EJC:rb
ATTACH.
STATE OF NEW YORK
COMMISSION ON CABLE TELEVISION
In the Matter of )
)
Pole Attachments and Related Agreements ) Docket No. 90001
Involving Cable Television Systems and )
Public Utilities )
EXTENSION OF TIME
TO FILE COl5111ETdTS
(Issued: November 10, 1976)
By reason of many requests for an extension of time for
the submission of comments in the above matter, pursuant to
Part 593.6 (c) of the Rules of this Corwmissien, the time for sub-
mission of comments herein is extended from November 5, 1976 to
January 5, 1977. Replies to the comments of other parties may
be submitted no later than February 7, 1977.
THOMAS E. RYAN
Acting Counsel
MR. RUNDLE
T 1 9 #976
CITY OF ITHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
OFFICE OF
TELEPHONE: 272-1713
MAYOR
CODE 607
October 15, 1976
New York State Commission on Cable Television
Tower Building
Empire State Plaza
Albany, New York 12223
Gentlemen_
When Ceracche Television Corporation asked the City of Ithaca
to increase the fees he may charge customers , Common Council on recom-
mendation from our cable television commission added some additional
amendments to the franchise. However, Ceracche has declined to sign
the franchise as it now stands . The Ceracche Cable system has alTways
provided responsible and adequate service to the citizens of the
City of Ithaca.
In a meeting with Anthony Ceracche , the Chairman of the Cable €
Commission and myself, it was agreed to solicit advise and comments
in regard to the contested amendments from the New York State
Commission on Cable Television and the FCC. Consequently, we are
submitting a copy of the franchise passed by Common Council and
signed by me , along with the objections of Ceracche Television
Corporation.
We are asking that you review the sections to which Mr. Ceracche
objects which are : 10(b) , 10 (c) , 11(b) (1) , 17 , 29 (a) , 31(b) , 31(g) ,
34 and 35 . The City of Ithaca wishes to deal fairly with our Televi-
sion Franchise operator and still have our franchise offer protection
to the users in the community . Since the franchise is currently open,
we would appreciate your analysis as soon as possible so that we
can conclude this matter. Thank you.
Sincerely,
Edward J . Conley
Mayor, City of Itha a
EJC:rb
ENC.
IT$q
,�............�y��
CF. ° ►�
19 MU
Rp7fc0
CITY OF ITHACA
108 EAST GREEN STREET
ITHACA, NEW YORK 14850
OFFICE OF TELEPHONE' 272-1713
MAYOR CODE 607
October 15 , 1976
Federal Communication Commission
1919 Main Street, N.W.
Washington, D. C. 20554
Gentlemen:
When Ceracche Television Corporation asked the City of Ithaca
. to increase the fees he may charge customers , Common Council on recom-
mendation from our cable television commission added some additional
amendments to the franchise. However, Ceracche has declined to sign
the franchise as it now stands . The Ceracche Cable system has always
provided responsible and adequate service to the citizens of the
City of Ithaca.
In a meeting with Anthony Ceracche, the Chairman of the Cable
Commission and myself, it was agreed to solicit advise and comments
in regard to the contested amendments from the New York State Com-
mission on Cable Television and the FCC. Consequently, we are
submitting a copy of the franchise passed by Common Council and
signed by me, along with the objections of Ceracche Television
Corporation.
We are asking that you review the sections to which Mr. Ceracche
objects which are: 10 (b) , 10 (c) , 11(b) (1) , 17 , 29 (a) , 31(b) , 31 (g) ,
34 and 35 . The City of Ithaca wishes to deal fairly with our tele-
vision franchise operator and still have our franchise offer protection
to the users in the community. Since the franchise is currently open,
we would appreciate your analysis as soon as possible so that we can
conclude this matter. Thank you.
Sincerely,
l ronley
Edward J.
Mayor, City of Ithaca
EJC:rb
ENC.
V•'�i"pie - a+`� :!"C
7
IT
O�;�O, •"tom
RAS
AlE�
CITY OF 1THACA
106 EAST GREEN STREET
ITHACA, NEW YORK 14950
OFFICE OF TELEPHONE: 272-1713
COMMON COUNCIL CODE 607
November 24 , 1976
The Ceracche Television Corp.
519 West State Street
Ithaca, New York 14850
Dear Mr. Ceracche :
. The enclosed resolution of the Charter and Ordinance Committee
will be presented to the Common Council for action at the
December first meeting.
The Cable Commission recommendation is also enclosed and supports
the resolution as drafted.
We find it very difficult but necessary to take this course of
action and do so only as a last resort.
It is our hope that you will reconsider signing the new franchise
that is , in our opinion, as fair and equitable document and
bring to a close this entire matter.
Sincerely,
C �
Don Slattery, Chairman
Charter and Ordinance Committee
DS:pt
Enc. (2)
Resolution of the Charter and Ordinance Committee Agenda Item B
Meeting of November 23, 1976
WHEREAS, the revised television cable franchise approved by
the Common Council in August and signed by the Mayor after the
duly advertised public hearing has not yet been signed by the
cable operator, and
WHEREAS, the provisions of the previous franchise granted a
temporary rate increse to a monthly rental of $5 . 50 per month
for a period of one year beginning in May 1975 , and
WHEREAS, the one-year period has expired and the refusal of the
cable operator to agree to the new franchise makes it necessary
to invoke the provisions of the previously existing franchise ,
NOW THEREFORE BE IT RESOLVED, that the temporary rate increase
granted in 1975 has expired and that the monthly rate for
cable television rental in the City of Ithaca has reverted to
$4.50 per month, effective immediately, and that subscribers
who have paid in advance for the cable service shall have the
additional one dollar per month repaid within 60 days from the
effective date of this resolution, and
BE IF FURTHER RESOLVED that the franchise operator is hereby
prohibited from collecting the rate increases granted in the
new television franchise until such time as an official representative
of the Ceracche Television Corporation shall have signed said
- Franchise
I SO MOVE.
Advisory Committee on Cable Television
City of Ithaca, New York
Recommendation in re j
November 16, 1976
'Present state of the Unsigned franchise
by Ceracche Television Corporation )
amended cable television franchise )
which was approved by the Common ) U
Council and signed by the Mayor of )
the City of Ithaca. )
Meeting in committee on November 16, 1976 were Morris Angell, Ray Bordoni,
Dana Ulloth.
The following recommendation was brought before the Advisory Committee on
Cable Television and was approved by the committee subject to approval of ,
its legality by the City attorney:
Although Common Council of the City of Ithaca approved an
amended franchise which was signed by Mayor Ed Conley on
August 26, 1976, to date no authorized representative of
Ceracche Television Corporation has signed the new agreement.
Because of this failure of Ceracche Television Corporation to
sign the franchise and because the corporation has been
unwilling to abide by the terms of the amended franchise as
is demonstrated by the decision of the corporation to terminate
some of its services--a violation of the unsigned agreement--
it is the recommendation of the Advisory Committee on Cable
Television that the 1966 franchise as amended and signed by
both the City of Ithaca and Ceracche Television Corporation
be returned to full force. It is the intent of this
recommendation that all conditions of the earlier franchise
be reinstated including the rates authorized in that
franchise (i.e. $4.50 for basic service, etc.) and the
conditions of service required under the agreement.
All members of the committee present voted for the recommendation.
' r
• c