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HomeMy WebLinkAboutFranchise AgreementsC STATE OF NEW YORK COMMISSION. ON CABLE TELEVISION In the Matter of Application of American Television and Communications Corporation for Approval of Amendment to a Franchise in the City of Ithaca (Tompkins County) NOTICE1 Pursuant to Section 822 of the Executive Law. PLEASE TAKE NOTICE, that American Television and I Communications Corporation will file with the New York State Commission on Cable, Television an Application for Approval of the above -entitled proposed amendment of the Cable Television Franchise of the City of Ithaa, Tompkins County, New York, pursuant to Section 822 of The Executive Law of the State of New York; PLEASE TAKE FURTHER NOTICE, that objections to the requested Commission action must be submitted to the New York State Commission on Cable"Television and served upon the Applicant within fifteen (15) days following receipt by the City of Ithaca of a copy of the Application and this Notice; and PLEASE TAKE FURTHER NOTICE, that true copies of any objections must be served upon the Applicant, c/o O'Connell and Aronowitz, P.C., 100 State Street, Albany, New York 12207. DATED: February 28, 1978 O'CONNELL AND ARONOWITZ, P.C. Attorneys for American Television and Communications Corporation 100 State Street Albany, New York 12207 Tel. (518) 462-5601 In the Matter'of Application of American Television and Communications Corporation for Approval of Amendment to a Franchise in the City of Ithaca (Tompkins County) Pursuant to Section 822 of the Executive Law. NOTICE O'CONNELL AND ARONOWITZ, P. C. ATTORNEYS AND COUNSELLORS AT LAW /00 Ale CA,eef hairvv/iecvuL� 4/2207 AREACODE518 462-5601 1 STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of Application of American Television and Communications Corporation for Approval of Amendment to a Franchise in the City of Ithaca (Tompkins County) Pursuant to Section 822 of the Executive Law. Docket No. TO THE COMMISSION: American Television and Communications Corporation .(hereinafter referred to as ATC), hereby applies for approval of an amendment of its cable televison franchise in the City of Ithaca, Tompkins County, New York, as hereinafter set forth. Pursuant to Section 822 of the Executive Law of the State of New York, and. General Order No. 2 of the Commission, as amended, the following information is submitted in support of this application: 1. The applicant herein is ATC, a Delaware corpora- tion, authorized to do business in the State of New York, with its principal offices at 20 Inverness Place East, Englewood, Colorado 80110, Tel. (303) 773-3411. 2. All the material facts with respect to the proposed amendment are set forth in the proposed amended Cable Television Franchise Agreement, entered into by and between ATC and The City of Ithaca, a true copy of which agreement is attached hereto as Exhibit "A". 3. The cable television system operated by ATC in the City of Ithaca substantially conforms to all presently applic- able Commission regulations. The proposed amended franchise agreement will not be in violation of, or in any way inconsis- tent with, any applicable federal, state or municipal laws, ordinances, or regulations and the said amended franchise agreement is consistent with the public interest. 4. The amended franchise agreement was adopted after a public hearing held pursuant to public notice, a true copy of which is attached hereto as Exhibit "B". 5. Attached hereto as Exhibit "C" is proof of service of a copy of this application upon the Mayor of the City of Ithaca, together with a notice that any objections to the re- quested Commission action must be submitted to the Commission, and copies served upon the Applicant within fifteen (15) days after receipt by the municipality of the Application and Notice. WHEREFORE, it is respectfully requested that the Commission approve the amendment to the cable television fran- chise of the City of Ithaca, Tompkins County, New York. DATED: February0?-7 , 1978 O'CONNELL AND ARONOWITZ, P.C. Attorneys for American Television and Communications Corporation 100 State Street Albany, New York 12207 Tel. (518) 462-5601 .STATE OF COLORADO ) COUNTY OF ARAPAHOE) ss.: (jCir��, s-C476.i�eing duly sworn deposes and says: L /27That he is,•�;6�" --,/ /�' ,, of American Television and Communications Corporation, the corporation named in the within Application; that he has read the foregoing Appli- cation for Approval of the Franchise Amendment and knows the contents thereof;that the same is true to his own. knowledge except to the matters therein stated to • lleged upon information and belief, and as to those ers he believes it to be true. Sworn to before me this /.4t day of February, 1978. / Jos rZ -if ,r7 /0/V/r/. . Collins, .Vice President LOCAL LAW NO. 3 OF THE YEAR 1977 CITY OF ITHACA A LOCAL LAW AMENDING THE CABLE TELEVISION FRANCHISE TO AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION BE IT ENACTED by the Common Council of the City of Ithaca as follows: SECTION 1. AMENDING THE CABLE TELEVISION FRANCHISE TO AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION The American Television and Communications Corporation is hereb granted an amendment to its Cable Television Franchise in accordance with the terms and conditions as contained in the Agreement set forth below: Exh_i,bit, "A" 5 - CABLE TELEVISION FRANCHISE AMENDMENT AGREEMENT, made' this 20th day of January , 1978 , 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 American Television and Communications Corporation, a Delaware Corporation, duly authorized to do business under and by virtue of the laws of the State of New York, having its principal place of business at 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WHEREAS, the Grantor had entered into a Cable Television Franchise Agreement, dated May 1, 1966 with Ceracche Television Corporation, which Agreement was amended on February 7, 1977; and WHEREAS, Paragraph "16" of the said amended Agreement dated February 7, 1977 provided that the interest of Ceracche Television Corporation thereunder could be tranferred only upon approval by the Grantor; and WHEREAS, Cerrache Television Corporation requested that the Grantor approve the assignment of the Cable Television Franchise to Grantee herein; and WHEREAS, after a public hearing held after due public notice thereof, the Common Council of the City of Ithaca duly passed a resolution, dated August 3, 1977, whereby. the Grantor consented to the assignment of the said Franchise to Grantee on the condition that, after consummation of the transfer, Grantor and Grantee enter into an Amended Franchise Agreement on the terms and conditions set forth in the aforesaid resolu- tion; and WHEREAS, the New York State Commission on Cable Television approved the. said transfer by Order dated September27, 1977; and WHEREAS, Ceracche Television Corporation and Grantee consummated the said transfer on October 12, 1977; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and other valuable consideration, the Grantor and Grantee hereby amend and restate the said .Cable Television Franchise Agreement and agree as follows: Ceracche Television, Division of American Televis on and Communications Corporatitn By: i' J. Collins, Vice President TELEVISION. CABLE FRANCHISE Agreement made this 20th day of January 20 , 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place East,Englewood, Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows.: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado, 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, modifi- cation, 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. 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 service lines in and over and the right to use, all pub- lic 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 Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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 applica''ble 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 or other applicable State Commission, and the Federal Communications Commission, 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, if required be allowed to proceed to petition .the Public Service Commis- sion of the State of New York or other applicable State Commission 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 street, 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 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 it breaking or tearing up of a portion of a street, sidewalk or other part of any City -owned or City -con- trolled property_ shall be_done by the City at the expense of the Grantee._ Grantee shall _save and _ keep_the City _harmless _ againstall loss or damage to person or property caused by the construction, laying maintenance or operation of any of its lines or other under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination -3 - of radio interference. b) The Grantee shall certify to the City and provide such required documentation to prove that it is in fact meeting the minimal tech- nical standards required by the Federal Communications Commission and the New York State Commission on Cable Television. Said certification and documentationwill be provided 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 services of the New York State Commission on Cable Television engineering van to make certi- fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over -the -air broadcast. pictures, pay television programs and local orgination. Additional services should be provided only after securing City approval, if lawfully required by the State Cable Commission. It is understood that litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services. 11. This franchise does not in any manner grant to the Grantee, his successors or assigns, the exclusive right to the sale and seruice of television sets, accessories, or convertors within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise 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, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) 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 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented from Grantee). 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, 19.75, 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. 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 avail- able at the 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 residential installation fee and moves to another residence within the City where the 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 $5.50 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 tie maximum charges must first be ap- proved 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. 10) The City specifically reserves the right to conduct 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 contained in this agreement. -5- 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 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 through- out the street installations. Messenger cable sfiall be used to carry the coaxial cable across the streets. 14. Theholder 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, unless after review of the performance of the Gran- tee, Grantor shall determine that said performance has been in- adequate, in which case the 'Grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 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. -6- 17. 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. 31 hereinbelow. The City may increase the per centum sum in the first sentence of this paragraph as.permitted by law or regu- lations of the Federal Communications Commission 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, excepting herefrom any prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provi- sion of this franchise shall be grounds for cancellation of the franchise, after due notice and public hearing. The right is reserved.,_to _the_Grant.ee_to _prosecute - in any__.Court__ ox__other_wise_, _ 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 con- tinue to provide such service throughout the duration of the fran- chise, pursuant to this franchise. 21. Grantee shall construct its cable system using materials of good and durable quality anda11 work involved in construction, installation, maintenance, and repair of the cable system shall be performed in a safe, thorough and reliable manner. 22. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at. -any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide adequate and prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of -7 - complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intial subscription to the cable system and at intervals hereafter 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 with- out the written consent of the City. 24. Any City or private property damaged or destroyed shall be prompt- ly repaired or replaced by Grantee and restored to serviceable condition. 25. Grantee shall not refuse to hire or employ, nor bar or dis- charge 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 pro- visions contained in the franchise and existing applicable ordinances, such additional regulations as it shall find necessary in the exer- cise 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 material, of the franchise, 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. 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 com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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 of all of the initial security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security posted equals $5,000. 30. Grantee shall file requests for all necessary operating authoriz- ation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. 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, i.e., Home Box Office. b) A maximum charge of $2.00 per month per television receiver may be made for the provision by Grantee of a.converter for the recep- tion of either subscription or pay cable programming or the reception of additional broadcast channels that may be received only with such convertor. 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) -American -Television -and Communications 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. -9- 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. Public access will be carried on channel 13. ATC, within 90 days of completion of the transfer, will diligently pursue with the FCC additional channel allocations for potential access use within the channel 2 through 13 range. 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 American Television and Communications 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 American Television and Communications Corporation. g) The City Cable Commission shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the _City of Ithaca. h) Video tapes to be shown on the public access channel shall be delivered to the studio ae least two working days in advance of airing. i) Public access studios shall be maintained at the company's headquarters on West State Street•andwill .include television cameras, recording and playback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) 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 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 informa- tion requested, to the Common Council annually as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commis- sion and outside accountants if it deems necessary, and receive and consider the results therefrom, before any rate increase hereunder shall be granted. In addition to the above provisions, ATC will submit independently audited financial statements covering its operation of the Ithaca area cable television system from the time of -the -most -recent -rate -increase -when it-peti-tions__the .City-__for__an___ increase in rates charged to subscribers: 35. The value of this franchise at the end of the term 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. 37. The franchise will supply a statement of the capital assets devoted to the cable operation in the City of Ithaca. The provisions of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such customer and to all existing customers prior tothe effective date of any rate change. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and complaint procedures, both within ATC and those available through -11 - the City of Ithaca. 39. Bills will always be paid to the local office or other designated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 40. Not later than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, and such other information as may reasonably be required by the City. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year first above written. CITY OF ITHACA BY: AMERICAN TEL VISION AND COMMUNIC*TIS CORPORATION BY: h Jose Collins, Vice President 1. • •L .• C • STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this 21 'Iay of, 1977, 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 instru- ment; 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. STATE OF COLORADO = ) COUNTY OF ARAPAHOE ) SS: CITY OF . ENGLEWOOD ) Notary Pub is Votary Publ cN S . SILiPIR° No. 55--893891te 0NeW York Terra ExpiesTompkinsla0, 1 1978 On this �' day(o ;197', before me, the subscriber, personally appeared, ho being by me duly sworn, did depose and state that h'- is the Vice -Pres -,z7 of American Television and Communications 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 2 d1 / /`i/r/. SECTION 2. EXECUTION 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 American Television and Communications 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. AFFIDAVIT OF PUBLICATION THE ITHACA JOURNAL cSfute of .efu 1urh, Tan -Thins Cuixntg, $sem Margaret Capogrossi being duly sworn, deposes and says, that he resides in Ithaca, County and state aforesaid and that he is Bookkeeper of Tim ITHACA JovarlAL a public newspaper printed and published in Ithaca aforesaid, and that a notice, of which the annexed is a true copy, was published in said paper April 21, 19 7 7 and that the first publicationof said notice was on the day of April 19..2.L.. Subscribed and sworn` to before me, this✓ ')2nd, day .1JL_ 21st1 of JANE M. REED Notary Public, State of New York No. 55-8518304 {% Qualified in Tompkins County / 8 Commission Expires March 30, 19---� April 19 77 Notary Public. Exhibit "B" PP LEGAL NOTICE PUBLIC HEARING - TRANSFER OF TELEVISION FRANCHISE NOTICE IS HEREBY given that pursuant to the resolution of the Com- mon Council of the City of I thaca,New York, adopted April 6, 1977, the Com- mon Council will bold a public bearing on Wednesday, May 4. 1977, at 7:30 p.m. In the Common Council Chambers at City Hall, 108 East Green Street to consider the approval of the transfer of the franchise from Ceraccbe Television Corporation to the American Television and Com- munications Corporation. ' TAKE FURTHER NOTICE that all person interested and citizens shall have an opportunity to be heard at said public hearing. By Order of the Common Council Joseph A. Rundle City Clerk City of Ithaca, New York . April 21, 1977 STATE OF NEW YORK - M COMMISSION ON CABLE TELEVISION In the Matter of Application of American Television and Communications Corporation for Approval of Amendment to a Franchise in the City of Itchas (Tompkins County). Pursuant to Section 822 of The Executive Law. STATE OF NEW YORK) )ss.. COUNTY OF ALBANY ) Karen L. Hazzard, being duly sworn, deposes and says, that deponent is over the age of 18 years; that on March 1, 1978, deponent mailed a copy of the annexed Application and Notice to Hon. Edward J. Conley, Mayor of Ithaca, New York at the following place and in the following manner: Ithaca City Hall, Ithaca, New York 14850 by depositing a true copy of the same properly enclosed in a post-paid wrapper in an Official Depository maintained and exclusively con- trolled by the United States at 100 State Street, Albany, New York, directed to said Hon. Edward J. Conley at said address, respectively mentioned above, that being the ad- dress within the state designated by Hon. Edward J. Conley for that purpose, according to the best information which can be conveniently obtained. Sworn to before me this / day of N�arch, 1978 r \ Notary Public, tate of New York Exhibit "C" STATE O ° NES! ! �;, ,,,�y,s�“J m1�[[,[LLSTATELEGALSUPPLY CO 507 CL COMMISSION ON CABLt 1.6JsEVYSION MOUNTAINSIDE Nl 07097 In the Matter of Application of American Television and Communications Corporation for Approval of Amendment to a Franchise in the City of Ithaca (Tompkins County) Pursuant to Section 822 of the Executive Law. OCONNELL AND ARONOWITZ, P.C. ATTORNEYS AND COUNSELLORS AT LAW ,.,��ii//100 Ade Area�5 aer/n4 . /Ke- &r>/ri / J 27 AREA CODE 518 462-5601 O'CONNELL AND ARO NOW ITZ, P.C. ATTORNEYS AND COUNSELLORS AT LAW 100 7,t tee. LEWIS A.ARONOWITZ STANTON ABLETT GEORGE MYERS JOHN E.BRANDOW RALPH G. MANCINI HOWARD W. ROTH CORNELIUS D. MURRAY DANIEL M. SLEASMAN MAX GORDON NEIL H. RIVCHIN PETER L. DANZIGER FRED B. WANDER STEPHEN R. COFFEY Hon. Edward J. Conley Ithaca City Hall Ithaca NY 14850 AREA CODE 518 462-5601 434-1251 February 28 , 1978 EDWARD J. O'CONNELL 1925-1939 LEON ARONOWITZ 1941-1969 SAMUEL E.ARONOWITZ 1925-1973 MEYER A.JENEROFF OF COUNSEL PteEIVED MAR 3 177 Re: American Television and Communications Corporation: Amendment to Cable Television Franchise Agreement Dear Mayor Conley: Enclosed is a copy of the Application of American Television and Communications Corporation to the New York State Commission on Cable Television for approval` of the amendment of the City of Ithaca Cable Televsion Franchise Agreement, and the Notice, which we are required to serve upon you pursuant to the Commission's Regulations. Very truly yours, O'CONNELL ARONO By: Neil . R whin NHR:vc - Enc. CERTIFIED MAIL RETURN RECEIPT REQUESTED MORTON H. WILNER ARTHUR SCHEINER RICI-IARD A. SOLOMON GILBERT B. LESSENCO MARSHAL L. COLE PAUL Y. SELIGSON EDWARD S. OWN El LL JOHN R. WILNER MICHAEL H. ROSENBLOOM PAUL M. RUDEN ROBERT D. HADL DENNIS LANE PAUL E. LEHNER LAW OFFICES WILNER 8c SCHEINER 2021 L STREET, N. W. WASHINGTON, D. C. 20036 (202) 293-7800 March 29, 1978 Philip L. Verveer, Esquire Acting Chief Cable Television Bureau Federal Communications Commission Washington, D.C. 20554 Re: Docket No. 21002 C AM �� 4 I8191l.Oil.11lsec�l l 1 2 1 I I- PHILIP BERGSON (1913-1965) CABLE ADDRESS "WILBER.AW" RICHARD A. MOORE COUNSEL Franchise Submissions e. Dear Mr. Verveer: rAPR 3 1978 Pursuant to the procedures adopted by the Commission in Docket No. 21002, we are transmitting herewith on behalf of Ceracche Television, a Division of American Television and Communications Corporation, copies of the franchise documents for its cable television systems serving the following communities in the State of New York: New York Caroline (NY0 80) oDryden (NY0090) wn of Ithaca (NY0011) City of Ithaca (NY0092) Lansing (NY0093) Newfield (NY0095) Ulysses (NY0096) Village of ' Candor (NY008 7 ) Village of Newark Valley (NY0680) The undersigned certifies that the state and local franchising authorities are being sent copies of the franchise - 2 - submissions. Should there be any questions concerning this matter, please communicate with the undersigned. Very truly yours, AAAA J6hn R. Wisner Counsel for American Television and Communications Corporation JRW/dp Enclosures cc: Franchising Authorities • 'TELEVISION CABLE FRANCHISE Agreement made this 20th day of January 20 , 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place East,Englewood, Colorado, party of the second part,. Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation., of 20 Inver- ness Place East, Englewood, Colorado, 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, modifi- cation, or addition, and which said buildings, machinery, apparatus may or shall become necessary in the transmissionof 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 service lines inand over and the right to use, all pub- lic avenues, streets, alleys, grounds and places in the city, and within its present limit or as it hereafter may be extended, forthe purpose of furnishing the City of Ithaca andits 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 permiccinn of the New York Telephone Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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. 5. 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 Commission, to use proper practices, andprocedures 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 Commis- sion of the State of_New York or other applicable State Commission 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 tobe 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 street, 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 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 h breaking or tearing up of a portion of a street, sidewalk or other part of any City -owned or City -con- trolled 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 under- taking under the authority of this franchise. 10. a) During the terms 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 aquality of television picture signal or reception as may be practical from time to time, and shall make all reasonable and practical betterments or improve- ments. of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination -3 - of radio interference. b) The Grantee shall certify to the City and provide 'such required documentation to prove that it is in fact meeting the minimal tech- nical standards required by the Federal Communications Commission. and the New York State Commission on Cable Television. Said certification and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van to make certi- fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary'instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over -the -air broadcast pictures, pay television programs and local orgination. Additional services should be provided only after securing City approval, if lawfully required by the State Cable Commission. It is understood that litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services. 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, accessories, or convertors within the City of Ithaca, and it is expressly understood that: the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise 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, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) 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 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented. from Grantee). Additional rental charge. for each extra set at the same establishment: Residential: no.change will be made inthe 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. 2) Suspended service: No charge for. •di.sconnecting and no rental charge while disconnected. Reconnecting charge: $5.00 3) The user shall have the privilege of selling andtrans- ferring the service once only to.a different party at a. different address for a $10.00 transfer charge, where the service is avail- able at the 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 residential installation fee and moves to another residence within the City where the 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. lf 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 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 folie maximum charges must first be ap- proved 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. 10) The City specifically reserves the right to conduct 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 contained in this agreement. - 5- 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 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 through- out the street installations. Messengercable shall he used to carry the coaxial cable across the 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, unless after review of the performance of the Gran- tee, Grantor shall determine that said performance has been in- adequate, in which case the 'Grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 ispersonal 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 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 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. 31 hereinbelow. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regu- lations of the Federal Communications Commission 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, excepting h,erefromany prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC willnot apply any tax credit to the Ithaca Franchise fee in a greater .proportion than the City of Ithaca subscribers are to the total. system. 18. Any continuous and willful violation of any section or provi- sion 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. Couxt._o.r ..othe.rwise., 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 substantiallythroughout the entire City. Grantee shall con- tinue to provide such service throughout the duration of the fran- chise, pursuant to this franchise. 21. Grantee shall construct its cable system using materials of good and durable quality anda11 work involved in construction, installation, maintenance, and repair of the cable system shall be performed in a safe,. thorough and reliable manner 22. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairsor adjustments may be received at -any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide adequate and prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers identifying the subscriber, his, address, date of complaint, nature of complaint, and disposition of -7 - complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour. and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall -be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intia.l subscription to the cable system and at intervals hereafter 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 with- out the written consent of.the,City. l4. Any. City or private property damaged. or destroyed shall be prompt- ly repaired or replaced by Grantee and restored to serviceable condition 25. Grantee shall not refuse to hire or employ, nor bar or dis-. charge 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 s'ex. 26: The City reserves the right to adopt, in addition to the pro- visions contained in the franchise and existing applicable ordinances, such additional regulations as it shall find necessary in the exer- cise of its police power; provided, however, that such regulations are.reasonable and not materially in conflict with the privileges :granted in th(e franchise. 27. The City reserves the right to inspect all pertinent books, records, maps, plans, financial statements, and other like material, of. the franchise, 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. b) Said security shall be forfeit to the extent specified by the City Councilif the Grantee fails to substantially comply with the construction schedule herein specified or if the Grantee com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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 of all of the initial security, the Grantee shall within thirty days thereafter post additional.security so that the total amount of securityposted equals $5,000. 30. Grantee 'shall file requests for all necessary operating authoriz- ation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. The City has approved, pursuant toa public hearing held after public notice, the following rates: a) A charge of $5.00 per month 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 televisionreceiver may be made for the provision by Grantee of a converter for the recep- tion of either subscription or pay cable programming or the reception. of additional broadcast channels that may be received only with such convertor. 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) American Television and Communications Corporationshall 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. -9- 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,ma.y be other than 2 through 12. Public access will be carried on channel 13. ATC, within 90 days of completionof the transfer, will diligently pursue with the FCC additional channel allocations for potential access use within the channel 2 through 13 range. 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 American Television and Communications 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 American Television and Communications Corporation. g) The City Cable Commission shall_ act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the City of Ithaca. 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) Public access studios shall be maintained at the company's headquarters on West State Street and will include television cameras, recording and playback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. j) The Tompkins County Public Library shall be wired_ for- public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of. the community for public access, facilities, equipment and cable drops. 1) 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..a.ny and all prior franchises heretofore given by the City to the Grantee. 34. 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 informa- tion requested, to the Common Council annually as soon'thereaf_ter as they may be available. The City_may request advice and analysis with regard to said financial documents, etc., from the State Cable Commis- sion and 'outside accountants if it deems necessary, and receive and consider the results therefrom, before any rate increase hereunder shall be granted. In addition to the above provisions, ATC will submit independently audited financial statements covering its operation of the Ithaca area cable television system from the time of the -most -recent -rate-increase when it-petitions.the.City for.an. increase in rates charged to subscribers. • 35. The value of this franchise at .the end of .the term 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. . 37. The franchise will supply a statement of the capital assets . devoted to the cable operation in the City of Ithaca. The provisions . of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such customer and to all existing customers prior tothe effective date of any rate change. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for'notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to -service, and complaint procedures, both within ATC and those available -through -11 - the City of Ithaca.. 39. Bills will always be paid to the local office or other designated. locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 40.. Not later. than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of. the Ithaca area cable television system, a review of line extension work completed, a summary of complaints lodged. against ATC, and such other information as may reasonably be required by the City. IN WITNESS WHEREOF, we have hereunto set our hands and seals the clay and year first above written. . CITY OF ITHACA BY: AMERICAN TELEVISION AND COMMUNICTIO S CORPORATION BY: Joseph J. Collins, Vice President SECTION 2. EXECUTION. AGREEMENT The Mayor of the City of Ithaca is hereby authorizedto execute the Television Cable Franchise Agreement on behalf of the City of. Ithaca and American Television and Communications Corporation is Aeby required to execute said Television. Franchise Agreement or this Franchise shall be nulland void. SECTION 3o EFFECTIVE DATE.". This Local Law shall take effect immediately after filing in the office of the Secretary of State. STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this 27 day of , 1977, before me, the subscriber, personally appeared Edward J. Conley, who, being by meduly sworn, did depose and state that he is Mayor of the CITY OF ITHACA, the corporation described in and which executed the foregoing instru- ment; 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. STATE OF COLORADO COUNTY OF ARAPAHOE CITY OF ENGLELWWOOD SS: Notary Pub is Iota F!'. . • �ii,��, .��. 'a t,. ;(i York Tenn E Colin ty L.i 30, 1978 On this ('C-/- day (o ' 197y, before me, the subscriber, personally appeared vho being by me duly sworn, did depose and state . that h'e is the VicePr_esa of 'American Television. and Communications 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. CABLE TELEVISION FRANCHISE AMENDMENT AGREEMENT, made this . 20th .day of January , 1978 , 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 American Television and Communications Corporation, a Delaware Corporation, duly authorized to do business under and by virtue of the'_ laws of the State of New York, having its principal place of business at 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WHEREAS, the Grantor had entered into a Cable Television Franchise Agreerinent, dated May 1, 1966 with Ceracche Television Corporation., which Agreement was amended on February 7, 1977; and WHEREAS,, Paragraph °°16" of the said amended Agreement dated February 7, 1977 provided that the interest of Ceracche Television Corporation thereunder could be tranferred only upon approval by the Grantor; and WHEREAS, Ceraache Television Corporation requested that the Grantor approve the assignment of the Cable Television Franchise to Grantee herein; and WHEREAS, after a public hearing held after due public notice thereof, the Common Council of the City of Ithaca duly passed a resolution, dated August 3, 1977, whereby the Grantor consented to the assignment of the said Franchise to Grantee on the condition that, after consummation of the transfer, Grantor and Grantee enter into an Amended Franchise Agreement on the terms and conditions set forth in the aforesaid resolu- tion; and WHEREAS, the New York State Commission on Cable Television approved the. said transfer by Order dated' September -27, 1977; and WHEREAS, Ceracche Television Corporation and Grantee consummated the said transfer on October 12, 1977; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and other valuable consideration, the Grantor and Grantee hereby amend and restate the said Cable Television Franchise Agreement and agree as follows: Ceracche Television, Division of American Televis on and Communications Corporatin JosepriJ. Collins, Vice President Before the Federal Communications Commis Washington, D. C.20554 In re Application of: ) ) AMERICAN TELEVISION & COMMUNICATIONS CORP. ) .CAC -09721 d/b/a CERACCHETELEVISION ) NYOQ92. Ithaca, New York ) For Certificate of Compliance ) MEMORANDUM OPINION AND ORDER Adopted: March 31, 1978 .By -the Chief, Cable Television Bureau:. Released:April 7, 1978 1. American Television and Communications Corporation d/b/a Ceracche Television (hereinafter ATC) operates a cable television system at Ithaca, New York, located within the Elmira, New York smaller television market. The system is presently carrying the following television broad- cast signals.. WSYR-TV (NBC,. Channel ' 3). Syracuse, New York WCNY-TV (Educ., Channel 24) Syracuse, New York WNEW-TV (Ind., Channel 5) New York, New York WENY-TV (ABC, Channel 36) Elmira, New York _. WTVH (CBS, Channel 5) Syracuse, New York WSKG (Educ., Channel 46) Binghamton, New York WOR -TV (Ind., Channel 9) New York, New York WICZ-TV (NBC, 'Channel 40) .Binghamton, New York WPIX (Ind., Channel 11) New York, New York .WDNG-TV (CBS, Channel 12) Binghamton, New York WNYS-TV (ABC, Channel 9) Syracuse, New York WROC-TV (NBC, Channel 8) Rochester, New York WHEC-TV (CBS, Channel 10) Rochester, New York WOKR (ABC, Channel 13) Rochester, New York WBJA-TV (ABC, Channel 34) Binghamton, New_York -WDAU-TV_ (CBS, Channel 22) Scranton, Pennsylvania WNEP-TV' (ABC, Channel 16) Scranton, Pennsylvania WVIA-TV • (Educ.,- Channel 44) Scranton, Pennsylvania WXXI (Educ., Channel 21) Rochester, New York • -2- On March 1, 1977, ATC filed an application for a certificate of compliance 1e% for its existing cable system in order to comply with Section 76.11(b) _/ of the Commission's Rules. The application is opposed by WENY, Inc., licensee of Station WENY-TV, (ABC, Channel 36) Elmira, New York (hereinafter WENY),and ATC has replied. 2. In its opposition WENY argues that ATC's application should be denied until ATC complies with the Commission's network nonduplication rules.2/ Moreover, WENY contends that the fact that ATC's application for a certificate of compliance does not reveal that the system is "in violation of the Rules and has been violating these Rules for more than two years" is sufficient grounds for rejecting the application. 3. In its reply, ATC responds that since the nonduplication dispute raised by WENY is presently pending before the Commission, no useful purpose would be served by considering it in this certification proceeding. Moreover, according to ATC, it is technically impossible for it to provide the relief requested by WENY since the subject system is an integrated one serving communities with conflicting nonduplication requirements. 4. Controversies concerning network program nonduplication protection are usually acted upon in connection with the certificating process when an objection to the appli@ation is timely filed. See Section 76.27 of the Rules. However, where petitions for special relief and orders to show cause involve complicated and novel issues concerning application of the program exclusivity rules, the Commission has held that the public interest would not be served by delaying grant of the appro- priate certificate of compliance. See Teleprompter Corporation (Chubbuck, Idaho), FCC 74-1361, 50 FCC 2d 442-1974). Accordingly, since ATC's application is fully consistent with the Rules, interim authorization will be issued at this time. However, our present action is in no way disposi- tive of the issues presented in the pending petition for special relief (CSR -678) and show cause petition (CSC -112) noted above. In view of the foregoing, we find that grant of the above captioned application is in the public interest. 1/ Following the procedures adopted in the Report and Order in Docket 21002, FCC 77-530, 66 FCC 2d 380 (1977), the applicant did not submit a franchise with its application. Therefore, interim authorization will•be issued to ATC. 2/ On March 7, 1975, WENY filed a petition for an order to show cause (CSC -112) why ATC should not cease and desist from violating the Commission's network nonduplication rules and provide WENY with the program protection to which it is entitled. ATC responded to that petition and requested a waiver of the nonduplication rules (CSR -678). -3 - Accordingly, IT IS ORDERED, pursuant t� authority delegated by Section 0.288(t)(1) of the Commission's Rules, that the application for certification (CAC -9721) filed by. American Television Communica- tions Corporation d/b/a Ceracche Television, IS GRANTED and appropriate interim authorization will be issued. IT IS FURTHER ORDERED, That the."Opposition to Certificate of Compliance" filed July 19, 1977, by WENY, Inc., IS DENIED. FEDERAL COMMUNICATIONS COMMISSION ip L. Very ng Chief le Televisioreai STATE OF ;.NEW -YOr _C:Ur.Ui'2ISSION ON CABLE TELEVISION In the matter of Assuring the Safety of Cable Television Systems ) Docket N. WEVE0 5:42' PR 17 19T8 td 't 16sts ja;,e lr n�� �'o2�6N' Y 6' STATEMENT OF POLICY AND ORDER POSTPONING COMPLIANCE (Adopted: March 22, 1978; Released: April 11, 1978) 8 On October 2, 1975, we issued an Order in this docket requiring the grounding of subscriber drop cables in accordance with Articles 820-7 and 820-22 of the National Electrical Code (NFPA, #70-1975) by no later than June 30, 1976.* On April 28, 1976, we extended the deadline for compliance until June 30, 1977.** We have since alternately suspended the imposition of penalties for failure to meet the deadline and further extended the deadline itself.*** In our most recent action in this docket, we suspended until March 31, 1978 the imposition of penalties for failure to complete the grounding requirement in a timely manner. Since July of last year, every action taken in this docket has been in the context of a dispute between the New York State Cable Television Association (NYSCTA) on behalf of various cable televi- sionsion comEtanies and the Niagara Mohawk Power Corporation (NMPC) over the acceptability`of„a certain grounding practice. The dis- puted practice is that of grounding subscriber drop cables to the nonmetallic sheathed service conducter clamp at the base of the NMPC meter enclosure. NMPC has maintained that grounding at this location is a violation of the company policy prohibiting third - party grounding at the meter conducter clamp (installed through a knockout in the bottom of the meter enclosure) and also that it does not constitute an acceptable ground path in accordance with Article 250-72 of the National Electrical Code, NFPA-No. 70-1975. NYSCTA has disputed the interpretation of Article 250-72 of the National Electrical Code 1975 made by NMPC and it has maintained that the grounding of subscriber drop cables at the service conducter clamp is consistent with the intent of the Code. * Order Requiring Compliance with Technical Performance Standards, etc., Docket No. 90066, October 2, 1975. In addition, we note here that we have recently received a copy of the 1978 edition of the National Electrical Code (NFPA-No. 70-1978) and we find that there are no changes in Articles 820-7 and 820-22. ** Order Postponing Compliance, etc., Docket No. 90066, April 28, 1976. ***Notice of Petition and Order Suspending Imposition of Penalties, Docket No. 90066, 77-118, Released: July 8, 1977. - Order Granting Petition and Postponing Compliance with Technical Standards, Docket No. 90066, 77-154, Released: August 22, 1977. Notice of Petition and Further Order Suspending Imposition of Penalties, Docket No. 90066, 77-186, Released: October 31, 1977. Notice of Petition and Further Order' Suspending Imposition of Penalties, Docket No. 90066, 78-044, Released: March 3, 1978. On June 6, 1977, NYSCTA filed the first of three petitions for postponement of the deadline for grounding pending a resolution of the disputed issue. In consideration of the fact that the dis- puted practice had already been employed by some cable television companies in the State and that it may have been contemplated by the same or other companies as a means of completing the grounding requirement, we extended the deadline in order to give NYSCTA an opportunity to seek from the National Electrical Code Committee an opinion on the suitability of the practice. In this regard, we note thit NPC agreed not to require the immediate removal of the grounding connections made to the service conductor clamp pending the receipt of an interpretation from the committee. On. October: 21,...1977, .MYSCTA filed with us a second petition seeking a further temporary stay of the deadline.* The petition indicated that NYSCTA had filed with the Interpretations Committee of the National Electrical Code Committee a request for an interpretation of Article 250-72 of the Code as it related to the disputed practice. By its third petition filed March 3, 1978, NYSCTA seeks a further temporary stay of the grounding requirement until June 30, 1978. In the petition, NYSCTA concedes that it has not received an official interpretation from the National Electrical Code Committee and argues that it should be allowed further time in which to pursue such' an interpretation.** The grounding of subscriber drop cables is_a serious matter and in the absence of any indication as to when, if ever, such interpretation may be expected, we cannot continue indefinitely to postpone the deadline for complying with the grounding requirement in reliance upon the possibility of a '"normal interpretation. - Moreover, since we have imposed the ground.- :ng requirement and are requiring grounding consistent with the provisions of the National -Electrical Code, we have thereby assumed :he obligation pursuant to Section 90.4 of the Code to interpret provisions for purposes of enforcing our own Rules.*** Accordingly, * Although we did not formally grant the second petition, we did postpone the imposition of penalties for failure to comply with the existing deadline based upon the considerations raised in the petition. ** The petition does acknowledge that NYSCTA received a personal, informal opinion from a member of the Committee and that the opinion was contrary to its position. Since NYSCTA has urged us not to rely on such a personal -and informal.opinion, we wish to make clear that our decision today is based upon our own review of the Code and not the views of the 'Committee member. *** Section 90.4 provides as follows: "Enforcement. This Code is intended to be suitable for mandatory application -by governmental bodies exercising legal jurisdiction over electrical installations and for use for insurance inspectors. The authority having juris- diction of enforcement of the Code will have reaponsibility for making Lnterpretations of the rules, for deciding upon the approval of -equip- ment and materials, and for granting the special permission contemplated in a number of the rules." 2 cannot ngree upon the rates to be included in the franohise or renewal thereof, and that they are proposing to make a joint appli- cation to the New York State Commission on Cable Television to prescribe rates pursuant to Section 825(5)(e) of the Executive Law of New York State. Proof of such publication shall be delivered to the Commission with the application. .(16:) The public notice shall set a date not less than ten days after the date of publication, for an opportunity for a hearing on the subject of the proposed joint application of the municipality and the cable television company to the commission pursuant to Section 825(5)(e) of the Executive Law. The public notice shall refer to the statutory authority under which the action is promised, and shall accurately give the tine and place of the hearing. The opportunity for a hearing shall be had before the joint application of the municipality and cable television company is submitted to the commission. c The provisions of subsections (a) and (b) hereof shall not apply when there is included in the initial local public notice of a rate amendment application, notice that if the parties are un- able to agree upon a rate pr rates to be charged, they may agree to apply to the New York State Commission on Cable Television to pre- scribe rates pursuant to Section 825(5)(e) of the Executive Lew. The public notice shall refer to the statutory authority under which the application would be made. Proof of such publication shall he delivered to the commission with the application. Finally, we believe that in view of our decision today, 1t-is z.ecessary to provide some additional time for cable television companies.in-the State to proceed with the grounding of subscriber drop cables in an acceptable manner.. We shall, therefore, extend until June 30, 1978, the deadline for grounding of all subscriber drop cables.* In view of.the fact•that in each order extending the deadline we have stated our expectation that companies would continue to undertake good faith efforts to complete the grounding require- ments with approved grounding methods, we believe that an additional three months should be sufficient time for most companies to complete grounding. - .- THE COMMISSION ORDERS o, 1. .Pursuant to•Sections 816 (1) and 816 (5) of the Executive Law and the Commission's Rules and Regulations,-the deadline for com- pleting the grounding of subscriber drop cables pursuant to Section 596.9 of.the Comn:ission'-s_Rules is hereby extended-until June 30, 1978. 2. - Pursuant . to Sections 316 (1) -and :816 (5) of_he Executive. Law and in accordance with Section 90.4 of the National Electricals Code, the.Comnission hereby determines that the grounding of sub- scriber drop cables by the.-utilization of the nonmetallic sheathed. service conductor clamp at the base of utility meter enclosures is not an acceptable arounding method... • • Commissioners participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman;- Albert E. Farone, Michael H. Prendergast, Commissioners. Z Although the extension of the deadline to'June30, 1970 is con- sistent with the relief sought by NYSCTA in its most recent petition, the petition is not ripe for action and therefore, our decision should not be considered a grant of the petition. Moreover, since our action today addresses the -issues raised in the petition, we do not contemplate further action:disposing of it; - 3 - we have determined that it is appropriate for us now to resolve the dispute by issuing our interpretation of Article 250-72. We find that the grounding of subscriber drop cables to the non- metallic sheathed service conducter clamp at the base of the NMPC meter enclosure is not an acceptable grounding method. In arriving at this decision, we have relied on the provisions ,of the National Electrical Safety Code, ANSI C2, 1977 Edition and `the National Electrical Code, NFPA - No. 70-1978. Specifically, we find that the nonmetallic sheathed cable clamp installed at the load side of the utility meter enclosures is not suitable for use as a grounding electrode for the following reasons: 1. Article 250-72 requires at subsections (d) and (e) that bonding jumpers be installed around concentric or eccentric knockouts that are punched or otherwise formed so as to impair the electrical connection to ground or, alternately, that bonding locknuts and bushings may be installed. .The installation of the nonmetallic sheathed cable clamp does not generally meet these requirements. 2. Articles 250-81 through 250-83 of the National Electrical Code describe grounding electrode connections and list several types of connections in order of preference. The nonmetallic sheathed service conducter cable clamp is not included in the list. 3. Artticle250-114(a) requires that the grounding conductor shall be attached to a metal box by means of a screw which shall be used for no other purpose. A grounding conductor attached to a cable clamp screw does not satisfy this requirement. 4. Article 250-115 requires that connections to grounding electrodes be made by use of one of several listed means. The cable clamp material does not generally qualify as approved for this purpose. 5. Article 250-118 requires that paint or other nonconductive coatings on equipment to be grounded be removed from all contact surfaces to assure good electrical continuity. It is doubtful that paint is removed from the knockout area of a meter enclosure prior to installationof the cable clamp,* In addition, we note that -Article 250 of the current edition of the National Electrical Code (NFPA-No. 70-1978) contains more rigid grounding requirements than the 1975 edition. In this regard, we wish to make clear that any company which has already grounded subscriber drop cables in a manner consistent with the 1975 edition and our decision herein, will not be required to change existing grounds. However, those companies which have not yet grounded subscriber drop cables or which have grounded drop cables by utilization of the nonmetallic sheathed cable clamp will be expected to comply with the 1978 Code and our policies expressed herein. * The referenced provisions of Article 250 of the Code as well as Article 820-7 and 820-22 are set forth in an appendix to this order. APPENDIX NATIONAL ELECTRICAL CCL;E - IFPA No. 70-1978 ARTICLE 820 - COMMUNITY ANTENNA TELEVISION AND RADIO DISTRIBUTION SYSTEMS 820.7 Ground of Outer Conductive Shield of a Coaxial Cable. Where coaxial cable is exposed to lightning or to accidental contact with lightning arrester conductors or power conductors operating at a potential of over 300 volts to ground, the outer conductive shield of the coaxial cable.shall'be grounded at the building premises_ as close t4 the point of cable entry as practicable. Where the outer conductive shield of a coaxial cable is grounded, no other protective devices shall be required. 820.22. Cable Grounding. Coaxial cable shall be grounded as speci- fied in (a) through (h) below. (a) Insulation. The grounding conductor shall have a rubber or other suitable kind of insulation. (b) Material. The grounding conductor shall le copper or other corrosion -resistant conductive material, stranded or solid. (c) Size.: The grounding conductor shall not be smaller than No. 18; it shall liave an ampacity approximately equal to that of the outer conductor of the coaxial cable. (d) Run in Straight Line. The grounding conductor shall be run to the grounding electrode in as straight a line as practicable. (e) Physical Protection. Where necessary, the grounding con- ductor shall be guarded from physical damage. (f) Electrode. The grounding conductor shall be connected as follows: (1) To an available water pioe electrode; or (2) To the power service conduit, service -equipment enclosure, or grounding electrode conductor where the grounded con- ductor of the power service is connected to a water pipe electrode at the building; or (3) Where the grounding means in (1) or (2) above are not available, to the service conduit, service -equipment enclosure, grounding electrode conductor, or grounding elect-roc:le of the power service of a multi' -grounded neutral power system; or 2 (4) MlheLe the grounding means (4) Where the grounding means (1) , (2) , or (3) aboe are not available to: (a) a concrete -encased electrode of not less than 20 feet of bare copper conductor not smaller than No. 4 encased by at least 2 inches of concrete and ,located within and near the.7ibottom of a concrete foundation footing that is, in direct contact with the earth, (b) an effectively grounded metal structure; (c) a cont) nuou and extensive underground aas piping system where acceptable'to both the serving gas supplier and to the authority having jurisdiction; or (d) oto a ground rod or pipe driven into permanently damp earth. Steam or hot-water pipes, lightning -rod conductors, or pipe or rod e;ectrodes grounding other than multigrounded neutral power circai±S. 5;3a11 not be employed as electrodes. (g) Electrode Connection. Connections to grounding electrodes shall comply with Section 250-115.' Where a gas pipe electrode is ;sed, connection shall be made between the gas meter and the street :aa_in.. In every case the connection to the grounding electrode shall e made as close to the earth as practicable. (h) Bonding or Electrodes. A bonding jumper not smaller than itT 6 copper or equivalent shall be'connected between the antenna ;•stems and the power grounding electrodes where the requirements (f) above result in the use of separate electrodes. Bonding -ogether of all separate grounding electrodes shall be.:permitted. See Section 250-86 for'use of lightning rods. • (b) Other ]oval metal underground systems or structures, such as piping systems and underground tanks. (c) Rod and Pipe Electrodes. Rod and pipe electrodes shall not be less than 8 feet in length and shall consist of the following materials, and shall be installed in the following manner: (1) Electrodes of pipe or conduit shall not be smaller than 1/4- inch trade size and, where the iron or steel, shall have the outer surface galvanized or otherwise metal -coated for corrosion protection. (2) Electrodes of rods of steel or iron shall be at least 5/8 inch in diameter. Nonferrous rods or their equivalent shall be listed and shall be not less than 1/2 inch in diameter. (3) Where rock bottom is not encountered, the electrode shall be driven to a depth of 8 feet. Where rock bottom is encounter- ed at a depth of less than 4 feet, electrodes not less than 8 feet long shall be buried in a trench. (d) Plate Electrodes. Each plate electrode's6all expose not :. less than 2 square feet of surface to exterior soil. Electrodes of iron or steel plates shall be at least 1/4 inch in thickness. Electrodes of nonferrous metal shall be at least 0.06 inch_, n..thickn6ss, 25'0-114: CQintinuity and Attachment of Branch -d rcuit Equipment Grounding Conductors to Boxes. Where more than one equipment grounding conductor of a'branch circuit enters a box, all such con- ductors shall be in good electrical contact with each other and the arrangement shall be such that the disconnection or removal of a receptacle, fixture, or other device fed from the box will not inter- fere with or interrupt the grounding continuity. (a) Metal Boxes. A connection shall be made between the one ori; more equipment grounding conductors and a metal box by means of a' grounding screw which shall be used for no other purpose, or an approved grounding device. (b) Nonmetallic Boxes. One or more equipment grounding con- ductors brought into a nonmetallic outlet box shall be so arranged that a connection can be made to any fitting or device in that box requiring grounding. 250-115. Connection to Electrodes. The grounding conductor shall be connected to the grounding fitting by suitable lugs, pressure connect- ors, clamps, or other approved means. Connections depending on solder shall not be used. Ground clamps shall be suitable for the materials of the grounding electrode and the grounding electrode conductor. !ot more than one conductor shall be connected to the groun1ing electrode by a single clamp or fitting unless the clamp or fitting is approved for the use. One of the methods indicated in (a), (b), (c) or (d) below shall be used. ARTICLE 250 - GROUNDING 250-E1. Grounding Electrode System. If available on the pre ise4: at each building or structure served, each item (a) through (d) below shall 1 be bonded together to form the grounding electrod system. The bonding jumps r shall be sized in accordance with ='bion" ;50-79(c) and shall be connected in the manner specified in Section ;50-115. (a) A metal underground water pipe in direct contact with the earth for 10 feet or more --(including any metal well casing etfec't4V- 1y bonded to the pipe) and electrically continuous electri- c411y c$bntinuous by bonding around insulating jointsor ormade sections or sulating pipe) to the points of connection of the grounding elec- trode conductor and the bonding conductors. Continuity of the ;rounding path or the bonding connection to interior piping shall lot rely on water meters. A metal underground water pipe shall be 'supplemented by an additional electrode of a type specified in section 250-81 or in Section 250-83. (b) The metal fraise of the building, where effectively grounded. (c) An electrode encased by at least 2 inches of concrete, :.ocated within and near the bottom of a concrete foundation or foot - .ng that is in direct contact with the earth, consisting of at least 3 feet of one or more steel reinforcing bars or rods of not less than 1/2 inch diam er, or consisting. of at least 20 feet of bare olid copper Jondu6i.or not smaller than No. 4 AWG. • (d) A ground ring encircling the building or structure, in • rect contact with the earth at a depth below earth surface not less :an -2-1/2 feet, consisting of at least 20 feet of bare copper con- - „ctor not smaller than No. 2 AWG. ;30-33. Made and Other Electrodes. Where none of the electrodes ,pecified in Section 25Q-81 is available, one or more of the elec- ;:odes specified in (a) through (C) below shall be used. Where >racticable, made electrodes shall be embedded below permanent mois- ure level. Made electrodes shall be free from nonconductive coat - Jigs, such as paint or enamel. Where more than one electrode system _s used (including those used for lightning rods), each electrode of .ne system shall not be less than 6 feet from any other elect -ode of :mother system,. Two or more electrodes that are effectively bonded together are o be treated as a single electrode system in this sense. (a) An electrically continuous metal underground gas piping ystem that is uninterrupted with insulating sections or joints and :ithout an outer nonconductive coating, and then only if acceptable and expressly permitted by both the serving gas supplier and the authority having jurisdiction. (a) An approved bolted clamp of cast bronze or brass or plain or.. malleable iron. (b) A pipe fitting, pipe plug, or other approved device--§crei into a pipe or pipe fitting. (c) A sheet -metal -strap type ground clamp having a rigid metal base that seats on the electrode and having a strap of such material and dimensions that it is not likely to stretch during or after installation. (d) An equally substantial approved means. 250-117. Protection of Attachment. Ground clamps or other fittings shall be approved for general use without protection or shall be protected from ordinary physical damage as indicated in (a) or (b) below. (a) Installations where they are not likely to be damaged. (b) Enclosing in metal, wood, or equivalent protective covering. 250-118. Clean Surfaces. Nonconductive coatings (such as paint, lacquer, and enamel) on equipment to be grounded shall be removed from threads, and other contact surfaces to assure good electrical continuity. t F. .requirement that the company wait 20 days after the submission of an applicatisgn tn_us before implementing the rates, that the proceeds of a rate increase prior to final Commission approval be placed in a separate escrow account pending Commission action and that the com- pany serve an additional notification upon the subscribers concern- ing the need for further approval,by the Commission and the oppor- tunity of the subscriber to file any objections concerning the rate increase with the Commission.) Comments received in response to our notice pertain mainly to the procedure permitting theinterim-implementation of a rate in- crease. ViaCom International, .Inc. ._filed_.comments in support of the interim implementation concept but objected to the so-called "quid pro quo" requirements as being -unnecessarily burdensome. ViaCom ar- gues that the proposed 20 -day waiting period would serve no useful purpose since (1) a subscriber'has_.the-opportunity to object to the franchising authority prior to municipal approval and may object to the Commission whether or not a waiting perii.d is imposed; (2) the filing •f an objection with the Commission during the 20 -day period is not automatically cause for staying the interim implementation of the rate increase; and (3) the amount of the increase must be refunded in any event if the amendment is ultimately disapproved by the Commis- sion. ViaCom argues similarly that the escrow fund is a "needless yet burdensome administrative requirement." In this regard, the com- - pany notes that the amount collected based solely •n the amount of the rate increase would generally be limited and could swiftly be re- funded by crediting the subscribers' bill thus obviating the need for a separate account. Finally, the company argues that the proposed notification "may give many subscribers the impression that payment as charged is not obligatoryuntil final approval is received thus encouraging nonpayment of the bill until final approval bythe Commission." PP The New York State Cable Television Association (NYSCTA) al- so supports the rules insofar as they allow the implementation of rates prior to our final approval but contends that certain burden- some requirements will render the utilization of the procedure impractical in most cases. First, NYSCTA argues that the escrow requirementwould burden cable companies "whose billing procedures are not adapted to segregating out portions of the proceeds" by creating an additional unwarranted expense. In addition, NYSCTA argues that in many cases the escrow account will become obsolete before any substantial receipts will be generated from the rate increase. For example, since the company must wait 20 days to implement a rate increase, i.e_, bill at the new rate, and the Commission generally acts upon rate increase applications within 30 days, the rate increase will, in many cases, have received final Commission approval before the due date of the bill. Second NYSCTA challenges the notice requirement for its expense to the cable companies particularly those not equipped for routine billings, and because, "[t]he best forum for public consideration of the rate in- crease is the municipal public hearing," not the Commission. For STATE OF NEW YORK CONAIISSION ON CABLE TELEVISION In the Matter of Procedures for the amendment of 'a Cable Television Franchise and Procedures for applying. for Commission determination of rates pursuant to Section 825(5)(e) of the Executive Law Docket No, 90058 Docket_ No. .90111 ORDERS ADOPTING REGULATIONS I. :Amendment Procedures. '(Adopted: February 22, 1978; .Released: April 11, 1978 Ori January 15, 1976, we issued a Notice of Proposed Rule- making in Docket No. -90058 and invited comments on the rules proposed therein. Comments were filed by Resort Cable TV, ViaCom Interna- tional, Inc., Office of Cable Television Commission of the City of Rensselaer and the New York State Cable Television Association. Ha±ing completed our review of the comments filed in response to our proposal, we are now prepared to adopt the annexed rules con- cerning.the amendment of cable television franchises. At the cut - set, we wish -to note that the rules adopted differ, in some respects, from the proposed rules. The central features oftheproposed rules were as follows: (1) A requirement that the party proposing to amend the franchise commence the amendment processbywritten notice sent to theotherparty and to the Commission; (2) The codification of the pre-existing requirement that a franchise be amended only after a public hearing on prier notice'' setting forth the substance of the proposed amendment and that approval by the municipality -is subject to the further approval of the Commission; ' (3) A list of specific information which must be included in each application to the Commission for approval of the amendment; and (4) A new procedure whereby the cable television company, upon compliance with certain specified conditions, is permitted tc implement a'rate increase approved in a franchise amendment prior to the final approval of the Commission. (The conditions included a P. For ticse reasons, then, we have determined to delete from the filial rules any procedure whereby a franchisee may implement a rate increase amendment prior to our final approval. As in the past, we shall continue to attempt to process applications for approval of franchise amendments, particularly those involving rate increases, in an expeditious manner.- However, in this regard, we note that whereas in the past we could generally dispose of such applications in 20 to 30 days, the time for disposition is now more likely to be 30-50 days in view of the requirement that such applications be notice in the State Bulletin.* In view of this, applicants are encouraged to file with us as soon after municipal approval as possible. With the exception of the interim implementation procedure, the rules adopted are consistent with the proposed rules. Section. - 592 -1.2 requires a party seeking an amendment to a franchise to notify the other party and the Commission of the substance of the proposed amendment and Section 592-1.3(a) requires a public hearing prior to the actual amendment. Section 592-1.3(b) requires the notice of the public hearing to describe the subject of the proposed amendment and to indicate the need for Commission approval prior t© the effectiveness of the amendment and the opportunity for interested. parties to file comments or objections with the Commission. The notice of hearing required by Section 592-1.3(b) will generally be noticed in the official newspaper of the municipality at least ten days in advance of the scheduled hearing as required by applicable statutory provisions. Section 595-1.4(b) specifies the information required to be contained -in an application to the Commission for approval of a franchise amendment, which includes the complete text of the amendment and proof that it was approved by the municipal governing body (592-1.3(b)(3)), proof of publication of the notice of the public hearing (592-1.3(b)(4)) and proof that a copy of the application has been served on the other party (Section 592-1.3(b)(6)), with respect to the application to the Commission, it should be noted that newspaper notice of the filing of the application with the Commission is not required. Finally, Section 592-1.5 reiterates the statutory requirement that the amendment shall not be effective until approved by the Commission, which approval shall be the date of the Commission action, unless otherwise prc.vided. Section 592-1.5(b) establishes the date upon which the franchisee mails to subscribers bills reflecting a rate change as the date upon which a rate change shall be deemed to be,implemented. * The State Bulletin. is published bi-weekly on Tuesday. 3 =� - ic.? -•�-�, VYSi; i u.Jtes in conclusion that "[a]n informal survey the Ag ciaLi,-,n's membership has disclosed that the vast majority of resp.,ndents would find use of the interim implementation proce- ,lure wholly impractical if the two conditions are retained." The City of Rensselaer by its Office of Cable Television en- dorses the requirements of an escrow account andthe additional no- tification to subscribers. However, the City is "not in overall agreement with our intention to allow an interim implementation of a rate increase and offers -two suggestions concerning the proposed nrtice to be served on subscribers. First, the City urges that the subscriber be advised of the effective date of the rate increase and second, that the subscriber also be advised of the date on which 17,-wilmission action is expected. The City makes additional comments cn the interim _implementation procedure but the comments suggest that the significance of the need for local approval of the rate in-" crease prior to implementation has been underestimated. In our Notice of Proposed Rulemaking we acknowledged that Ole speedier implementation of rate increases may be warranted and ward that end we proposed rules which would permit the interim implementation of rate increases prior 'to our final approval. How- ,- ;ver, we also acknowledged that "Commission orders approving even routine rate increases often clarify ambiguities or assure compliance with conditions. Accordingly, we were not prepared to delete the need for affirmative action by us before the rate increase -becomes rna1. Upon reconsideration of the proposed procedure, and in view of the comments received, we have determined to delete from the ,f=nal rules any method for implementing rate increases prior to our sinal approval. While the implementation of rate increases is delayed by the need for our approval in some cases, the actual date upon which a new rate is implemented also depends upon such other factors as the date or municipal approval, the time required to prepare'new billings and the convenience of implementing rates on the first day of a calendar month. No procedure can shorten the delays caused by these -factors. TATe also note that a large number of franchise amendments submitted for our approval encompass matters in addition to straightforward rat rate increases. With respect to such amendments, no procedure should permit one element to become effective prior to all the elements. Moreover, franchise amendments submitted to us often include municipal approval for a rate increase which is conditioned upon the improvement or modification of services provided by the franchisee. In such cases, the date upon which the conditions are satisfied by the franchisee de- termines the effective date of the rate increase and an interim imple- mentation procedure would generally not affect that date. Finally, we note that the additional procedural requirements proposed by us in connection with the interim lmplem r tation procedure were strongly criticized in the cents received. - 6 - required - required to participate in two public meetings." Sammons Communica- tions presented the argument that the requirement of a second public notice and opportunity for hearing at the local level cannot be sup- ported by a -logical interpretation of the Executive Law, as "the action in setting the rates will be taken at the State level." And finally, -in -connection with these arguments, the Association suggests an additional section to_our:.proposed rules as follows Sec. 592-2.4- • (c) The provisions of subsections (a) and (b) hereof- shall not apply where the municipality -.has previously held a public _hearing pursuant. to.. ___ public notice on the rates -in question consistent with Commission rules or policies governing the grant of franchise'amendments Proof of publica- tion of the public notice for'any such hearing shall be delivered to the Commission with the application - - Manhattan Cable joins the Association in urging the adoption of this additional section. We remain unpersuaded by any of the arguments or suggestions outlined above. Section 825(5)(e) of the Executive Law calls for a public notice and opportunity for hearing before the Commission may._: prescribe rates. The primary responsibility for negotiating rates lies with the local franchising authority. Should the parties to the franchise be__unable to agree upon rates, only they may request the := Commission to prescribe rates pursuant to Section 825(5)(e). The Commission may not do so on its own motion. For these reasons, the public notice and opportunity for hearing on the question of request ing the Commission to prescribe rates for cable television service is properly had at the local level. However, Sammons suggests, and in this suggestion is joined by Granville, that a separate_ public -notice and opportunity for hear- ing would' not be necessary if the initial public notice .of .the.. com- pany's rate amendment request (as required by Section 592-1.3 of our Rules) included notice of the alternative possibility of requesting the Commission to prescribe rates should the parties be unable to agree to rates to be charged. We have determined that publication in the alternative, such as here suggested, would be an administratively easier proctss-for the applicants, yet would also satisfy the ele- ments of due process clearly required by the statute. Weare, there- fore, adding Section 592-2.4(c) to our Rules, which provides that Sections 592-2.4(a) and (b), which require a separate notice and op- portunity for hearing on the question of requesting the Commission to prescribe rates pursuant to Section 825 5(e), shall not apply when - 5 - II. Joint Application for Commission Determination -of Rates. (Adopted: February 22, 1978)_ On May 6, 1977, we issued a Notice If Proposed Rulemaking in Docket No. 90111 wherein we proposed the adoption of procedures to be followed by a cable company and municipality when requesting us to prescribe rates pursuant to Section 825(5)(e) of the Executive Law. Comments were filed by the New York State Cable Television Association, Granville Cablevisian,-Inc., Sammons Communications of New York, Inc.,-ViaCom InternationalInc. Brookhaven Cable TV, Inc., Manhattan Cable Television, Inc., and Cablevision Systems Ic'ng Island Corporate©n."'No reply comments were filed. Having completed our review of the comments filed in response to our proposed rulemaking, we are now prepared to adopt the attached rules concerning the procedures tobe followed by a cable television company and a municipality when seeking Commission determination of rates pursuant to Section 825(5)(e) of the Executive Law. However, certain matters raised in the comments filed with us deserve comment. • 1. Public N Lice and Oort ppunity for a Hearing. Without exception, all of the ceirments filed with us con- tained an objection ta. the second notice and opportunity for hearing requirement. The New York State Cable Television Association (theAssccia- tion), which "generally suppnrts the Commission's action looking toward the adoption of formal rules governing Section 825(5)(e) appli- cations", nevertheless opposes the second public hearing requirement as it "would be unduly.burdensome, unnecessary, -and would seriously impair the legislative purpose in adopting 825(5)(e)."^ ViaCom submitted comments declaring that "the effect of this further hearing would only be to delay what, in most cases, is a necessary increase in subscriber rates", while Manhattan Cable urges that a second public notice and opportunity for a hearing at the local level would -place a n'"dditirnal. burden on members of the public "who would be * The Association, as well as Sammons Communications,indicated in its comments that the legislative purpose in enacting Section 825(5)(e) was to avoid lc.cal disputes over rates. Since Sections 822 and 825(1) indicate that the primary responsibility for negotiat- ing rates lies with the municipality and cable company, we note that Section 825(5)(e) is intended as a mechanism whereby local rate disagreements are resolved, not avoided. . 8 both applicants. The language of our proposed rules was an attempt to indicate that both the municipality and cable company must un- equivocally request us to prescribe rates before the provisions of 825(5)(e) of the Executive Law are invoked. We regret the confusion that was caused by our choice of language. We have -amended_ the language of Section 592-2.2(b) of our rules in an :effort-_ to clarify our meaning. In connection with the joint application issue,' Cablevision Systems Long Island Corporation (CSLIC) asked the -Commission to inter- pret nterpret Section 825(5)(e) of the Executive Law to allow applications to the Commission by either the municipality or the cable company. Section 825(5) (e) of - tbs" Executive Law states that we may prescribe -rates only. "upon -_request -by a -municipality and cable television company" (emphasis supplied). We ars unpersuaded"that the language is capable of the interpretation CSLIC promotes. We therefore adhere to our position that both parties must request Commission determination of rates pursuant to Section 825(5)(e). 4. Form of Municipal Action'. Section 825(5)(e) provides that the municipality and cable television company requesting Commission determination of rates pursuant to that section'must certify that they are unable to agree upon rates. The Association objects to that Section of our proposed rules, which. deals with the required form and contents of the Section 825(5)(e) application, on the grounds that it puts undue restraints on the discretion of municipal governments. The Associa- tion urges that proposed Section 592-2.3(c) which reads', in part: In the case of the municipality, the certification shall be in the form of a resolution or other official action of the `municipal legislative body . . ., to be changed to: In the case of the municipality, the certification. _shall be in a form duly authorized by the municipality. We are unpersuaded that our language "interferes with the discretion of municipal governments, or that the .language proposed by the Association is less restrictive. We therefore adopt Section 592-2.3(c) 7 the initial public notice of the rate amendment application is pub- lished in the alternative, i.e., when it notices the fact that if the parties are unable to agree upon rates they may discuss the possibility of requesting the Commission to prescribe rates pursuant to Section 825(5)(e). 2. Publication in the State Bulletin. The Association and Manhattan Cable suggest that notice of an application to us_pursuant to Section 825(5)(e) not.. be published in the State Bulletin, contending that Commission action pursuant to that section of the Executive Law is not a rule making as defined by Section102(2)(a)(ii) of the State Administrative Procedure Act (SAPA). We feel that SAPA speaks for itself on that issue. Section 102 Definitions. . . .2(a) "Rule" means. . .(ii) the amendment, suspension, repeal, approval or prescription for the future of rates. . .er practices bearing on any of the foregoing whether of general or particular applicability. _. And were the language. quoted immediately above not reason enough to publish notice of a Section 825(5)(e) application in the State Bulle- tin, we ask the Association and cable companies to consider this. Publication cf notice in the State Bulletin is for the protection and benefit of both the municipality and the cable company. Were notice not published in the State Bulletin and were the Commission's action in prescribing rates .then overturned for want of full procedural due process compliance, any increase in rates prescribed by us pursuant is Section 825(5)(e) would of course have to be refunded tt+ sub- scribers, and the previous rate structure would be reinstituted. 3. Joint Application Requirement. Sa.ons Communications urges the Commission 'to reconsider that section of our proposed rules which requires the company and mu- nicipality to submit a joint application. Sammons claims that a single, joint application would be "administratively difficult." We agree. This Ccuiuiission never has, nor does it now intend, to require that an application pursuant to $ 825(5)(e) be one single applicationsigned b Part 592 Amendment .Procedures Subpart 592-1 Amendments Section 592-1.1 Appliability• The rules contained in this Part apply to all amendments of cable television franchises; pro- vided; however, that any amendment that would have the effect of extending the duration of a franchise shall be deemed a renewal and shall be subject to the provisions of Part 591 of this Subtitle. Section 592-1.2 Commencement of amendment .rocess• Any cable television company or municipality proposing to amend a cable tele- vision franchise shall continence the formal amendment process by written notice sent to the other party and to the commission. The notice shall contain the text or set forth the substance of the pro- posed amendment. Section 592-1.3 Public hearing requirement: (a)'No cable television franchise may be amended except after a public hearing preceded by reasonable notice. This provision shall not be deemed to require an additional :.hearing in those cases in which a hearing is otherwise -required by applicable provisions of law. (b) In addition to satisfying other applicable requirements, the notice of public hearing shall indicate the subject of the pro -'7 posed amendment. The notice shall also state that the amendment, if approved by the municipality, may not take effect without the prior approval of the commission and that interested parties may file comments or objections with the commission. Section 592-1.4 Comwission approval required: (a) No amendment to any cable television franchise shall be effective without the prior approval of the commission in accordance with the provisions of Section 592-1.5 of this Part. (b) An application for approval of a franchise amendment shall comply with the requirements of Part 590 of this Subtitle and shall set forth or include at least the following (1) the name, mailing address and telephone number of the cable television company; (2) the name, mailing address and telephone !number of the municipality approving the amendment and the, date mlttlicipal acti.ot� was taken; 9 as proposed.* The statutory authority far the rules we are adopting today is contained in Sections 815(2)(a), 816 (1) and 816 (5) (e) of Article 28 of the Executive Law. THE COMMISSION ORDERS e The CorurnissiJn ° s regulations are hereby a rd2 1 by eddilg thereto a new Part, to be Part 592, Subparts 592-1 and .922 to be read as set forth in the Addendum to this Order. Commissioners participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman; Albert E. Farone, Michael H. Prendergast, Commissioners. Abstaining - Malcolm Fein. * We wish to make clear that our action, here today does not consti- tute approval of the so-called "automatic - certification91 clauses, found in some franchises. (i.e., those clauses that provide that the franchisee may automatically certify to us on behalf of itself and the municipality a request for rate determination pursuant to Section 825(5)(e) of the Executive Law if the municipality does not act favorably upon rate modification requests.) The topic of automatic certification clauses is among those presently under con- sideration by us and pending resolution. See also C ablevision Systems Long Island Corp., ,. oaDER GRANTING CERTIFICATE OF CONFti:Au ZGly- Adopted: December 20, 1977; Released: December 22, 1977; Docket No. 10728; and Suffolk Cable Corporation, ORDER CONDITIONALLY GRANTING CERTIFICATE OF CONFIRMATION, Adopted: January 25, 1978; Released: February 2, 1978; Docket No. 10515, • fib 2 - (3) the complete text of the amendment and proof that the amendment was approved by the municipality; (4) proof of publication -of the notice of public hearing on the amendment; (5) a description of the rate changes, if any, effected by the amendment; (6) in the case of an application filed by a cable television company, proof that a copy of the application has been served on the municipality; in the case of an application filed by:,a municipality, proof that a copy of the application has been Served on the cable "television company. Section 592-1.5 Effective date of amendment: (a) No amendment shall be of ective,.anc no change effected by any amendment may be implemented, until -the commission shall have adopted an order approving such amendment. Unless the order shall otherwise provide, the effective date of the amendment shall be the date of commission action. (b) For purposes of this Section, the mailing to subscribers of bills reflecting a rate change shall be deemed the implementation of such rate change. Subpart 5922 Applications Pursuant to Section 825(5)(e) Section 592-2.1 ApplicabilitX an application to prescribe rates the application complies with the : The c�.5iN7-0' ' 'gutsu at to Sect ;25(5)(e) is provisions of this Pert. Section 592-2.2 Form of appl ieation: (a) Any appllcstJnr2 made pursuant to this Part shall be in writing. (b) Both the municipality and cable televig "n. �z agvausA request the commission to prescribe applicable rates. Section 592-2.3 Contents of application: include: (a) the name (b) the name officer thereof; w-. The applic.rtion.gha13 and address of the cable televis5 n company; of the municipality and the chief executive (c) certification that the cable television company And munici- pality are unable to agree upon rates. In the case of the munici- pality, the certification shall be in the form of a resolution or other official action of the municipal legislative body. In the case of the cable television company, the person certifying shall be,. the applicant, if the applicant is an individual; one of the partners if the applicant is a party rshig an officer if the applicant is a corporation; or a member who is an officer if the applicant is en unincorporated association, (d) a list -of all classes of service for which rates cannot be agreed upon, including, if applicable, existing rates for such class- es of service; and (e) proof .of publication as required by Section 592-2.4(a) and (b), or Section 592-2.4(c) hereof. Section 592-2.4 Public Notice ;t,n4_ �p;.��tvit oz a Pterin (a) Before vak ng cation to t) e commission pursuant oSe cin 825(5)(a), the municipality or the cable television company shall cause to be published in a local ne.ra-1,�,TF.z .4;f circulati�,� public notice that the u.Unicli?ai$fty and cable television ccl?iprkay STATE OF NEW YORK CONMISSIONON CABLE TELEVISION In the Matter of Procedures for -the amendment of a Cable Television Franchise and Procedures for applying for Commission determination of rates pursuant to Section 825(5)(e) of the Executive Law • • Docket No. 90058 Docket No. 901 i1 ORDERS ADOPTING REGULATIONS 1 tRECEIVEn il APR 21 IM, IVNallfiffite rrHacs, N. Y. ND 9 -(e'` I. Amendment Procedures. (Adopted: February 22, 1978; Released: April 11, 1978 On January 15, 1976, we issued a Notice of Proposed Rule- making in Docket No. 90058 and invited comments on the rules proposed therein. Comments were filed by Resort Cable TV, ViaCom Interna- tional, Inc., Office of Cable Television Commission of the City of Rensselaer and the New York State Cable Television Association. 'Haking completed our review of the comments filed in response to our proposal, we are now prepared to adopt the annexed rules con- cerning the -amendment cf cable television franchises. At the out- set, we wish to note that the rules adopted differ, in some respects, from the proposed rules. The central features of the proposed rules were as follows: (1) A requirement that the party proposing to amend the franchise commence the amendment process by written notice sent to the .other party and to the Commission; (2) The codification of the pre-existing requirement that a franchise be amended only after a public hearing on prior notice setting forth the substance of the proposed amendment and that approval by the municipality is subject to the further approval of the Commission; (3) A list of specific information which must be included in each application to the Commission for approval of the amendment; and (4) A new procedure whereby the cable television company, upon compliance with certain specified conditions, is permitted to implement a rate increase approved in a franchise amendment prior to the final approval of the Commission. (The conditions included a requirement that the company wait 20 days after the submission of an application to us before implementing the rates, that the proceeds of a rate 'increase prior to final Commission approval be placed in a separate escrow account pending Commission action and that the com- pany serve an additiemal_notification upon the subscribers concern- ing the need for further -approval by the Commission and the oppor- tunity of the subscriber to fileanyobjections concerning the rate increase with the Commission.) Comments received in response to our notice pertain mainly to the procedure permitting the.iRterim-implementation of a rate in- crease. ViaCom International, Inc. f±iecicornments in support of the interim implementation concept but objected to the so-called "quid pro quo" requirements as being unnecessarily burdensome. ViaCom ar- gues that the proposed 20 -day waiting.peritd would serve no useful purpose since (1) a subscriber has_.the-eprertunity to object to the franchising authority prior .to municipal approval and may object to the Commission whether or not a waiting perind_is imposed; (2) the filing of an objection with the Commission during the 20 -day period is not automatically cause for staying the interim implementation of the rate increase;and (3) the amount of the increase must be refunded in any event if the amendment is ultimately disapproved by the Commis- sion. ViaCom argues similarly that the escrow fund is a ''needless yet burdensome administrative requirement." In this regard, the com- pany notes that the amount collected based solely on the amount of the rate increase would generally be limited and could swiftly be re- funded by crediting the subscribers' bill thus obviating the need for a separate account. Finally, the company argues that the proposed notification "may give many subscribers the impression that payment as charged is not obligatory until final approval is received thus encouraging nonpayment of the bill until final approval by the Commission." The New York State Cable Television Association (NYSCTA) al- so supports the rules insofar as they allow the implementation of rates prior to our final approval but contends that certain burden- some requirements will render the utilization of the procedure impractical in most cases. First, NYSCTA argues that the escrow requirement would burden cable companies "whose billing procedures are not adapted to segregating out portions of the proceeds" by creating an additional unwarranted expense. In addition, NYSCTA argues that in many cases the escrow account will become obsolete before any substantial receipts will be generated from the rate increase. For example, since the company must wait 20 days to implement a rate increase, i.e., bill at the new rate, and the Commission generally acts upon rate increase applications within 30 days, the rate increase will, in many cases, have received final Commission approval before the due date of the bill. Second NYSCTA challenges the notice requirement for its expense to the cable companies particularly those not equipped for routine billings, and because, "[t]he best forum for public consideration of the rate in- crease is the municipal public hearing," not the Commission. For 3 these reasonq, ,VYSCT!1 notes in conclusion that "[a] n informal survey rf the Association's membership has disclosed that the vast majority of respondents would'find use of 'the interim implementation proce- dure wholly impractical if the two conditionsare retained." The City of Rensselaer by its Office of Cable Television en- dorses the requirements of an escrow account and the additional no- tification to subscribers. However, the City is "not in overall agreement with our intention to allow an interim implementation of a rate increase" and offers.two suggestions concerning�-the.proposed notice to be served on subscribers. First, the City .urges that the subscriber be advised of -the effective date of the rate increase and second, that the subscriber also be advised of the date on which Commission action is expected. The City makesadditional comments on the' interim implementation procedure -but the comments -suggest that the significance of the need for local approval of the rate in- crease priortoimplementation has been underestimated.: - In our Notice of Proposed Rulemaking, we acknowledged that the speedier implementation of rate increases may be warranted and toward that end we proposed rules which would permit the interim implementation of rate increases prior to our final approval.- How- -ver, we also acknowledged that "Commission orders approving even routine rate increases often clarify ambiguities or assure compliance with conditions. Accordingly, we were not prepared to delete the need for affirmativeactionby us before the _rate increase becomes final. Upon reconsideration of the proposed procedure, and in view of the comments received, we have determined.to-delete.from the final rules any method for implementing rate increases prior to our final approval. . While the implementation of rate increases is delayed by the need for our approval in some cases, the actual date upon which a new rate is implemented also depends upon such other factors as the date of municipal approval, the time required to prepare new billings and the convenience of implementing rates on the first day of a calendar month. No procedure can shorten the delays caused by these factors. We also note that a large number of .franchise amendments submitted for our approval encompass matters in addition to straightforward rat rate increases. With respect to such amendments, no procedure should permit one element to become effective prior to all the elements. Moreover, franchise amendments submitted to us often include municipal approval for a rate increase which is conditioned upon the improvement or modification of services provided by the franchisee. In such cases, the date upon which the conditions are satisfied by the franchisee de- termines the effective date of the rate increase and an interim imple- mentation procedure would generally not affect that date. Finally, we note that the -additional procedural requirements proposed by us in connection with the interim implementation procedure were strongly criticized in the comments received. - 4 • F's tLese °reas.yzis, then, we have determined t, delete from . the t1L? 1 rules any procedurewhereby a franchisee may .implement a rate increase amendment prior to our final approval. As in the past, we shall continue to attempt to process applications for approval of franchise amendments, particularly those involving rate increases, in an expeditious manner. However, in this regard,we notethat whereas in the past we could generally dispose of such applications in 20 to -30 days, the time for disposition is now more likely to be 30-50 days in view of the requirement that such applications, be noticed in the .State -Bulletin.* In view of this, applicants are encouraged to file with us as soon after municipal approval as possible. With the -exception of the interim implementation procedure, the rulesadopted are consistent with the proposed rules..- Section . 592-1.2 requires'a party seeking an amendment to a`franchise to notify the other- party and the Commission of the substance of the proposed amendment and Section 592-1.3(a) requires a public hearing prior to the actual amendment. Section 592-1.3(b) requires the notice of the public hearing to describe the subject of the proposed amendment and to indicate the need :for Commission approval prior to the effectiveness of the amendment and the opportunity.for interested parties to file comments orobjections with the Commission. The notice ofhearing required by Section 592-1.3(b) will generally be noticed in the official newspaper'of,the municipality atleast ten days in advance of the scheduled hearing as required by applicable statutory provisions. Section 595-1.4(b) specifies the information required-to:be,contained in an application to the Commission for approval of a franchise amendment, which includes the complete text of the amendment and proof that it was approved by the municipal governing body (592-1.3(b)(3)), proof of ..publication of the' notice of the public hearing (592-1.3(b)(4)) and proof that a copy of the application has been served on the other. party (Section 592-1.3(b)(6)) with respect to the application to the Commission, it should be ,noted that newspapet notice of the filing of the application with the Commission is not required. Finally, Section 592-1.5 reiterates the statutory requirement that the amendment shall not be effective until approved by the Commission, which approval shall be the date of the. Commission action, unless otherwise provided.' :Section 592-1.5(b) establishes the date upon which the franchisee mails to subscribers bills reflecting a' rate, change as ,.the date upon which a rate change shall be deemed to be 'implemented. -; _. * The State Bulletin is published bi-weekly on Tuesday. II. Joint Application for Commission ;Determination. -of -Rates. (Adopted: February 22, 1978) .. On -May -6,-1977,- we issued a Notice .of: Proposed Rulemaking in Docket No. 90111 wherein we prdpose3 the 'adoption of procedures to .. be followed by a'Cable`company and municipality when requesting us to prescribe rates pursuant to Section 825(5)(e) of the Executive Law. Comments were filed by the New York State Cable Television Association, Granville Cablevision, Inc., Sammons Communications of New York, Inc., ViaCom International; Inc.,' Brookhaven .Cable .TV, Inc., Manhattan Cable Television, Inc.; and Cablevision Systems Lang Island Corporation . - :No :reply' `comments' wee- filed. Having completed cur -review of the: comments filed in response to our proposed rulemaking, we are: now prepared "to adopt the attached rules concerning the `procedures to- .a cable .television company and a municipality when seeking Commissiondetermination.of rates pursuant to Section 825(5)(e) of the Executive, Law. However, certain matters raised in the comments .filed with us.deserve .comment. . 1. Public otice and 0••ortunit for a Hearin• Without exception, all of the comments filed with us, con- tained an objection tc the second notice and opportunity for hearing requirement.= • :The New'York State Cable Television Association (theAssccia tion),-..which"generally supports the Commission's action looking toward the adaption of formal rules governing Section 825(5)(e) appli- cations", -nevertheless opposes the second public ,hearing requirement , as 'it "would be unduly burdetsoEe, unnecessary, and would seriously impair the legislative purpose in adopting 825(5)(e)."* ViaC©m submitted comments declaring that "the effect of this further hearing would only be to delay what, in most cases,is a necessary increase in subscriber rates", while Manhattan Cable urges that•a second public notice and opportunity: for. a hearing at .the local level re -Mild glace -an "^additional'burden on members of the public "who would be • * . The Association, as well as 'Sammons Communications, indicated in its• comments that the legislative purpose in enacting Secticn 825(5)(e) was to avoid local disputes over rates. Since Sections 822 and 825 (1) indicate that the .primary .Yespousibility fur negotiat- ing rates' lies with the municipality and cable company,we note that Section .825(5)(e) is intended as a mechanism whereby local rate disagreements are resolved, - not avoided. _ - 6 - required t,, participate in two public meetings." Sammons Communica- tions presented the argument that 'the requirement of a'second public. notice and opportunity for hearing at the local level cannot be sup- ported by_a logical interpretation of, the Executive Law,-as,"the action in-se-tting- the rates Will -be taken at the, State level." And finally,' inconnection with these arguments, the Association_suggests an additional _ section to our,proposed rules as follows Sec. 592-2.4 (c) The provisions "of subsections (a) . and -,, :(b) hereof "shall nrt;apply where the -municipality has previously held a public hearing -pursuant -to _ public. notice • on the rates in'" quest=ion consis tent - with Commission rules or policies governing:the grant -of _ franchie ,amendments . Proof -of publica- tion of the public' „notice for any such hearing shall be delivered'tothe Commission with:the application: Manhattan Cable joins the Association in urging the adoption of this additional section. - We remain unpersuaded by any of the arguments or suggestions outlined above.-- Section 825(5)(e) of the Executive Law calls for a public- notice arid -opportunity for hearing -before the Commission may prescribe rates. The primary responsibility for negotiating rates lies with the local franchising authority. Should the parties to the franchise be .unable to agree upon rates, only they may request the Commission -to prescribe rates pursuant to Section 825(5)(e). The Commission may not -do -so on its own motion. Fcr these reascns, the public notice and opportunity for hearing -on the question of request.- ing-the Commission to prescribe rates for.cable television service is properly had at -the local level. = However,- Sammons suggests, and in this suggestion is joined by Granville, that a separate.public-noticeand opportunity -for hear- ing -would not be necessary if the initialrpublic•notice of the com- pany's::rate .:_amendment request (as required may. Section 592 -1 -:3 -of our - Rules) included notice of the alternative possibility of requesting the Commission to prescribe rates should the parties be unable to agree to rates to be charged. _We have -determined. that publication in the' alternative,. such as here''suggested,:would be an administratively easier process for ' the 'applicants, yet- would also satisfy .the ele- ments of due process clearly -required by the statute. We are, there- fore, adding'Section 592-2.4(c) to our.Rules, which; provides that Sections 592-2.4(a) and -(b) .,-. which require a separate notice and. op- portunity for hearing on the question of requesting the Commission to prescribe rates pursuant to Section 825 5(e), shall not apply when the Laitial pub1 ic-n5,tice of the rate Amendment application is pub- lished in the alternative, i.e.., when it notices the fact that if the parties are unable to agree upon rates they nay discuss the 'ssibility of requesting the Commission to pmscr--t`aN:-L"; to Section 825(5)(e). 2. Publication in the State Bulletin. The Association and Manhattan Cable suggest that nctice.oy an application to us pursuant to Section 825(5)(e) not -be published in the State Bulletin, contending that Ccmmissfon action pursuant ix that section of the Executive Law is not a rule making as defined by Section 102 (2) (a) (ii) e^f the State Administrative Procedure Act - SAPA) . We feel that SARA speaks for itself on that issue. Section 102 Definitions-.. • . .2(a) "Rule" means. .(ii) the amendment, suspension, repeal, approval or prescription for the future of rates. . or practices bearing on any of the foregoing whether of general cr particular applicability. Arid were the language quoted immediately above not reason enough tr publish notice of a Section 825(5)(e) application in the State Bulle- in, we ask the Association and cable companies to consider this. publication of notice in the State Bulletin is for the pre,tecticn and benefit of bath the municipality and the cable company. Were notice 71ot published in the State Bulletin and were the Commission°s action In prescribing rates: then overturned for want of full procedural due process compliance, any increase --in rates prescribed by us pursuant to Section 825(5) (e) would of course have to be refunded tes sub- scribers, and the previous rate structure would be reinstituted. 3. point Application Requirement. Sammons Communications urges, the Comhission to reconsider that section of our proposed rules which rcquiires the company and mu- nicipality to submit a joint application. Sammons claims that a single, joint application would be "administratively d3 Fficult." We agree. This Commission never has,. nor does it now intend, to require- that an application pursuant tc .S 825(5)(e) be cne single application signed by 8 5oth appI icarzts . The language of our proposed rules was an attempt to indicate that both the municipality and cable company must un- equivocally request us to prescribe rates before the provisions of 525(5)(e) of the Executive Law are invoked. - We regret the confusion that was caused by our choice . of language. We have - =ended the language of Section 592-2.2(b) of our rules in in effort -to --c rift' our measling. In connection with the joint application issue, Cablevision Systems Long Island Corporation (CSLIC) asked the Commission to inter- ,,pret Section 825(5)(e) of the Executive" Law to allow applications to the Commission by'either the municipality dr the cable corlp2ny. Section 825(5)(e) of the Executive Law states that we ma p resc riberates only "upon request.bYamunicipality-end cable televisioncompanyr(emphasis'supplied); We are unpersuaded that the "languge is capable -of the. interpretation_CSLIC-promotes. We therefore adhere to our position that both parties must request Commission determination of rates pursuant to Section 825(5)(P). 4. Form of Mun,ici al Action Section 825(5)(e) provides that the municipality and cable television company requesting Commission determination of rates pursuant to that section must certify that they -are unable to agree upon rates. The Association objects to that Section of our proposed rules, which deals with the required form and contents of the Section 825(5).(e)application,-on the grounds thatitputs undue restraints on the discretion of municipal governments'. The Associa- tion urges that proposedSection592-2.3(c) which reads, in part: In the caseofthe municipality, the certification shall be in the form of a resolution or other official action of the municipal legislative body o be changed to: In the case of the municipality, the -, certification shall be in a form duly authorized. by the municipality. . We are unpersuaded that our Language infer -ares ulth the -discretion of municipal gouetnwerts, or that the lac,gua ge proposed by the Associrtion is less rPstri"ctiJe. We there£,Jre- adc,pt" Section 592-2.3(c) 9 as proposed.* The statutory authority for the rules w! are adopting today is contained in Sections 815(2)(a), 816(1) and 816(5)(e) of Article 28 of the Executive Law. THE COMMISSION ORDERS: The Commission's regulations are hereby amended by adding thereto a new Part, to be Part 592, Subparts 592-1 and 592-2 to be .read as set forth in the Addendum to this Order. Commissioners participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman; Albert E. Farone, Michael H. Prendergast, Commissioners.: Abstaining Malcolm Fein. * We wish to make clear that our action here today does not consti- tute approval of the so --called "automatic certification" clauses, found in some franchises. (i.e., those clauses that provide that the franchisee may automatically certify to us on behalf of itself and the municipality a request for rate determination pursuant to Section 825(5)(e) of the Executive Law if the municipality does not act favorably upon rate modification requests.) The topic of automatic certification clauses is among those presently under con- sideration by us and pending resolution. See also Cablevision Systems Long Island Corp ,: ORDER GRANTING CERTIFICATE OF CONFIP,IViATION Adopted: December 20, 1977; Released: December 22, 1977; Docket No. 10728; and Suffolk Cable Corporation, ORDER CONDITIONALLY GRANTING CERTIFICATE OF CONFIRMATION, Adopted: January 25, 1978; Released: February 2, 1978; Docket No. 10515. Part 592 Amendment Procedures Subpart 592-1 Amendments Section 592-1.1 Applacabilit The rules contained in this Part apply to all amendmentsof cable television franchises; prc- vided, however, thAt any emendment that would have the Effect of extending the duration of a franchise shall be deemed a renewal and shall be subject to the provisions of Part 591 of this Subtitle. = Section -592-1.2 Commencement of amendment process: Any cable television company or municipality proposing to amend a cable tele- vision franchise shall commence the formal amendment process by written notice sent to the other party and to the commission. The • notice shall contain the text or set forth the substance of the pro- posed amendment. Section 592-1.3 Public hearin requirement- (a) No cable television franchise mey be amended except after a public hearing preceded by reasonable notice. This provision shall not be deemed to require an additional hearing in those cases in which a hearing is otherwise required by applicable provisions of law. (b) In addition to satisfying other applicable requirements, the notice of public hearing shell indicate the subject of the pro- posed amendment. The notice shall also state that the amendment, if approved by the municipality, may not tyke effect without the prior approval of the commission and that interested parties may file comments or objections with the commission. Section 592-1.4 Cvmmis proval required: (a) No amendment to any cable televiaion franchise shall be effective without the prior approval of the commission -in accordance with the provisions of Section 592-1.5 of this Part. (b) An application for approval of a franchise amendment shall comply with the requirements of Part 590 of this Subtitle and shall set forth or include at least the following- (1) the name, mailing address and telephone number of the cable television company; (2)thename, mailing address and telephone number of the municipality approving the nmEndment and the, date mvt,dcipal act -i oD was taken; (3) the complete text -of the,anendWat and proof that the arrindMent was approved by the municipality; (4) proof of publication of the notice of public hearing on the amendmecnt; (5) a description of the rate changes, if any, effected by the amendment; (6) in the case of an application filed by a cable television company, proof that e copy of the application has been served on the municipality; in the case of an_ application filed by a municipality, proof that a copy of the application has been served on the cable television company. Section 592-1.5 Effective date o amendment: (a) No amendment shall be effective,_anu no change e fected by any amendment may be implemented, until the commission shall have adopted en order approving such amendment.Unless the order shall otherwise provide, the effective date of the amendment shall be the date of commission action. (b) For purposes of this Section; the mailing to subscribers of bills reflecting a rate change shall be deemed the implementation of such rate change. cannot agree upon the rates to be included in the franchise or 'renewal thereof, and that they are proposing to make a joint appli- cation to the New York State Commission on Cable Television to prescribe rates pursuant to Section 825(5)(e) of the Executive Law of New York State. Proof of such publication shall be delivered to the Commission with the application. (b) The public notice shall set a date not less than ten days after the date of publication, for an opportunity for a hearing on the subject of the proposed joint application of the municipality and the cable television company to the commission pursuant to Section 825(5)(e) of the Executive Law. The public notice shall refer to the statutory authority under which the action is proposed, and shall accurately give the time and place of the hearing, The opportunity for a hearing shall be had before the joint application of the municipality and cable television company is submitted to the commission. (c) The provisions of subsections (a) and (b) hereof shall not apply when there is included in the initial local public notice of a rate amendment application, notice that if the parties are un- able to agree upon a rate or rates to be charged, they may agree to apply to the New York State Commission on Cable Television to pre- scribe rates pursuant to Section 825(5)(e) of the Executive Law. .The public notice shall refer to the statutory authority under which the application would be made. Proof of such publication shall be delivered to the commission with the application. STATE. OF ;NEW. -YORY. COi'IMJ SSION oat CARLE TELEVISION In the matter of Assuring the Safety. of Cable Television Systems.) Docket. No.. 90066 STATEMENT OF POLICY AND ORDER POSTPONING COMPLIANCE (Adopted: -March 22, 1978; Released: April 11, 1978) On October 2, 1975, we issued an Order in this docket requiring the grounding of subscriber drop cables in accordance with Articles 820-7 and 820-22. of the -.National Electrical Code (NFPA, #70-1975) by no later than June 30, 1976.* On April 28, 1976, we extended the deadline for compliance until June 30, 1977.** We have since alternately suspended the imposition of penalties for failure to meet the deadline and further extended the deadline itself.*** - In our most recent action in this docket, we suspended until March 31, 1978 the imposition of penalties for failure to complete the grounding requirement in a timely manner. Since July of.last year, every action taken in this docket has been in the context of.a dispute between the New York State Cable Television Association (NYSCTA) on behalf of various cable televi- sionsion companies and the Niagara Mohawk Power Corporation (NMPC) over the acceptability of a certain grounding practice. The dis- puted practice is that of grounding subscriber drop cables to the nonmetallic sheathed service conducter clamp at the base of the NMPC meter enclosure. NMPC has maintained that grounding at this location is a violation of the company policy prohibiting third - party grounding at the meter conducter clamp (installed through a knockout in the bottom of the meter enclosure). and also that it does not -constitute -an -acceptable ground path in' accordance with Article 250-72 of the National Electrical Code, NFPA-No. 70-1975. NYSCTA has disputed the interpretation of Article 250-72 of the National Electrical Code 1975 made by NMPC and it has maintained that the grounding of subscriber drop cables at the service conducter clamp is consistent with the intent of the Code. * Order Requiring Compliance with Technical Performance Standards, etc., Docket No. 90065, October 2, 1975. In addition, we note here that we have recently received a copy of the 1978 edition of the National Electrical Code (NFPA-No. 70-1978) and we find that there are no changes in Articles 820-7 and 820-22. ** Order Postponing Compliance, etc., Docket No. 90066, April 28, 1976. ***Notice of Petition and Order Suspending Imposition of Penalties, Docket No. 90066, 77-118, Released: July 8, 1977. Order Granting Petition and Postponing Compliance with Technical Standards, Docket No. 90066, 77-154, Released: August 22, 1977. Notice of Petition and Further Order Suspending Penalties, Docket No. 90066, 77-186, Released: Notice of Petition and Further Order Suspending Penalties,' Docket No. 90066, 78-044, Released: Imposition of October 31, 1977. Imposition of March 3, 1978 On June 6, 1977, NYSCTA filed the first of three petitions for postponement of the deadline for grounding pending a resolution of the disputed issue. In consideration of the fact that the dis- puted practice had already been employed by some cable television companies in the State and that it may have been contemplated by the same or other companies as a means of completing the grounding requirement, we extended the deadline in order to give NYSCTA an opportunity to seek from the National Electrical Code Committee an opinion on the suitability of the practice. In this regard, we note that NMPC agreed not to require the immediate removal of the grounding connections made to the service conductor clamp pending the receipt of an interpretation from the committee. On October-210-1977-,-NYSCTA filed with us a second petition seeking a further.temporary-stay of the deadline.* The petition indicated that NYSCTA had filed with the Interpretations Committee of the National Electrical Code Committee a request for an interpretation of Article.250-72 of the Code as-it related to the disputed practice. By its third petition filed March 3, 1978, NYSCTA-seeks a further temporary stay of the grounding requirement until June 30, 1978. In the petition, NYSCTA concedes that it has not received an official interpretation from the National Electrical Code Committee and argues that it should be allowed further time in which to pursue such an interpretation.** The grounding of subscriber drop cables is a serious matter and in the absence of any indication as to when, if ever, such interpretation may be expected, we cannot continue indefinitely to postpone the deadline for complying with the grounding requirement in reliance upon the possibility of a formal interpretation. Moreover, since we have imposed the ground- ing requirement and are -requiring grounding consistent with the provisions of the National Electrical Code, we have thereby assumed the obligation pursuant to Section 90.4 of the Code to interpret provisions for purposes of enforcing our own Rules.*** Accordingly, * Although we did not formally grant the second petition, we did postpone the imposition of penalties for .failure to comply with the existing deadline based upon the considerations raised in the petition. ** The petition does acknowledge that NYSCTA received a personal, informal opinion from_a member of the Committee and that the opinion was contrary to its_position. Since NYSCTA has urged us not to rely on such a personal and informal opinion, we wish to make clear that our decision today is based upon our own review of the Code and not the views of the Committee member. *** Section 90.4 provides as follows: "Enforcement. This Code is intended to be suitable for mandatory application by governmental bodies exercising legal jurisdiction over electrical installations and for use for insurance inspectors. The authority having juris- diction of enforcement of the Code will have responsibility for making interpretations of the rules, for deciding upon the approval of equip- ment and materials, and for granting the special permission contemplated in a number of the rules." - we have determined that it is appropriate for us now to resolve the dispute by issuing our interpretation of Article 250-72. We find that the grounding of subscriber drop cables to the.non- metallic sheathed service conducter clamp at the.base of the NMPC Til vee- enclosure is not' an acceptable grounding method. In arriving at this decision, we have relied on the provisions of the National Electrical Safety Code, ANSI C2, 1977 Edition and the National Electrical Code, NFPA - Io. 70-1978. Specifically, we find that the nonmetallic sheathed cable clamp installed at the load side of the utility meter enclosures is not suitable for use as a grounding electrode for the following reasons: 1. Article 250-72 requires at subsections (d) and (e) that bonding jumpers be installed around concentric or eccentric knockouts that are punched or otherwise formed so as to impair the electrical connection to ground or, alternately, that bonding locknuts and bushings may be installed. The installation of the nonmetallic - sheathed cable clamp does.not.generally meet these requirements. 2. Articles 250-81 through 250-83 of the National Electrical Code describe grounding electrode connections and list several types of connections in order of preference. The nonmetallic sheathed service conducter cable clamp is not included in the list. 3. Article 250-114(a) requires that the grounding conductor shall be attached to.a metal box by means' of a screw which shall be used for no other purpose. A grounding conductor attached to a cable clamp screw does not satisfy this requirement. • 4. Article 250-115 requires that connections to grounding electrodes be made by use of one of several listed means. The cable clamp material does not-general-ly-qualify as approved for this purpose. 5. Article 250-118 requires that paint or other nonconductive coatings on equipment to begroundedbe removed from all contact surfaces to assure good electrical continuity. It is doubtful that paint.is removed from the knockout area of a meter enclosure prior to installation of the cable clamp.* In addition, we note that Article 250 of the current edition of the National Electrical Code (NFPA-No. 70-1978) contains more rigid grounding requirements than the 1975 edition. In this regard, we wish to make clear that any company which has already grounded subscriber drop cables in a manner consistent with the X975 edition and our decision herein, will not be required to ::aange existing grounds. However, those companies which have not vet grounded subscriber drop cables or which have grounded drop Tables by utilization of the non -allic sheathed cable clamp will be expected to comply with the 1978 Code and our policies expressed herein. The referenced provisions of Article 250 of the Code as well as Article 820-7 and R70-22 ata r(Yt21\ in ars a11,4....ii.�c L� t:ii ur.cl,r. Finally, we believe that in view of our decision today, it is i:ecessary to provide some additional time for cable television companies.in.the State to proceed with the grounding of subscriber drop cables in an acceptable manner. We shall, therefore, extend until June 30, 1973, the deadline for grounding of all subscriber drop cables.* In view of the fact that in each order extending the deadline we have stated our expectation that companies would continue to undertake good faith efforts to complete the grounding require- ments with approved grounding methods, we believe that an additional three months should be sufficient time for most companies to complete grounding. THE COMMISSION ORDERS: 1. Pursuant to Sections 816(1) and 816(5) of the Executive Law and the Commission's Rules and Regulations, the deadline for com- pleting the grounding of subscriber drop cables pursuant to Section 596.9 of the Commission's Rules is hereby extended until June 30, 1978. 2. Pursuant to Sections 816(1) and 216(5) of the Executive Law and in accordance with Section 90.4 of the National Electrical Code, the Commission hereby determines that the grounding of sub- scriber drop cables by the utilization of the nonmetallic sheathed service conductor clamp at the base of utility meter enclosures is not an acceptable grounding method. Commissioners participating: Robert F. Kelly, Chairman; 'Jerry A. Danzig, Vice -Chairman; Albert E. Farone, Michael H. Prendergast, Commissioners. * Although the extension of the deadline to June 30, 1970 is con- sistent with the relief sought by NYSCTA in its most recent petition, the petition is not rine for action and therefore, our decision should not be considered a grant of the petition. Moreover, since our action today addresses the issues raised in the petition, we do not contemplate further action disposing of it. APPENDIX NATIONAL ELECTRICP_L CC E - NF,12q1 No. 70-1978 ARTICLE 820 - COMMUNITY ANTENNA TELEVISION AND RADIO DISTRIBUTION SYSTEMS 820.7 .Ground of Outer Conductive Shield of a Coaxial Cable. Whe• coaxial cable is exposed _ to .lightning .or to accidental ten tact . with lightning arrester conductors or power conductors.: trperating at a potential of over 300 volts to ground-,. the outer conductic--shieln of the coaxial cable shall be grounded at the building premiseTu,a close to,the point of cable entry as practicable. Where the. outer conductive -shield of a coaxial cable -1s -g ded, no other protective'devices shall. be required. 20.22. Cable Grounding. Coaxial cable shall be grounded as-speci.- Fied in (a) through .(h) below. (a) Insulation other suitable kind (b) Material. corrosion -resistant The. grounding conductor shall -have a rubber or of insulation. The grounding conductor shall 1 copper or other conductive material, stranded or solid. (c) Size. The grounding conductor shall not be Smaller than No. 18; it shall have an ampacity approximately equal to that of the outer conductor of the coaxial cable. (d) Run in Straight Line. The grounding conductor shall be run to the grounding electrode in as straight a line as practicable. (e) Physical Protection. Where necessary, the grounding con- ductor shall be guarded from physical damage. (f) Electrode. The grounding conductor shall be connected as follows: (1) To an available water pipe electrode; or (2) To the power service conduit, nclosure, or grounding electrode conductor 3uctor of the power service is connected to 3t the building; or service -equipment where the grounded con - a water pipe electrode (3) Where the grounding means in (1) or (2) above are not available, to the service conduit, service -equipment enclosure, grounding electrode conductor, or grounding electrode of the power service of a multi -grounded ..e.atr l 1io Boer system; or 2 (4) Where the grounding means (4) Where the grounding means (1), (2), or (3) above are not available to: (a) a concrete -encased electrode of not less than 20 feet of bare copper conductor not smaller than No. 4 encased by at least 2 inches of concrete and located within and near the bottom of a concrete foundation footing that is in direct contact with the earth, (b) an effectively grounded metal structure; (c) a continuous and extensive underground gas piping system where acceptable to both the serving gas supplier and to the authority having jurisdiction; or (d) :to a ground rod or pipe driven into permanently damp earth. Steam or hot-water pipes, lightning -rod conductors, or pipe or rod electrodes grounding other than multigrounded neutral power circuits shall not be employed as electrodes. (g) Electrode Connection. Connections to grounding electrodes shall comply with Section 250-115. Where a gas pipe electrode is used, connection shall be made between the gas meter and the street main.. In every case the connection to the grounding electrode shall be made as close to the earth as practicable. (h) Bonding or Electrodes. A bonding jumper not smaller than No. 6 copper or equivalent shall be connected between the antenna systems and the power grounding electrodes where the requirements of (f) above result in the use of separate electrodes. Bonding together of all separate grounding electrodes shall be:permitted. See Section 250-36 for use of lightning rods. ARTICLE 250 - GROUNDING —.l}' -r _ C'U:aCJ�: t7 riec ,t c•: Sy - ..:.a.. I f at each building or structure served, each item (a) through (d) below shs]1 be bonded together to form the grounding electrode systein. The bonding jump,,_r shall be sized in accord nce with electrode_ ;50-79(c) and sham be connected in th=e manner specified in Section ;50-115. (a) A metal underground water pipe in direct contact with the earth for 10 feet or more (including any metal well casing effective- ly bonded to the pipe) and electrically continuous (or rade electri- cally continuous by bonding around insulating joints or sections or nsulatng pipe) to the points of connection of the grounding elec- -!:rode conductor and the bonding conductors. Continuity of the Grounding path or the bonding connection to interior piping shall -got rely on water meters. A metal underground water pipe shall be supplemen-':ed by an additional electrode of a type specified in Section 250-81 or in Section 250-83. (b) The metal frame of the building, where effectively grounded. (c) An electrode encased by at least 2 inches of concrete, :ocated within and near the bottom of a concrete foundation or foot- ,flg that is in direct contact with the earth, consisting of at least 0 feet of one or more steel reinforcing bars or rods of not less .han 1/2 inch dialr, t—er, or consisting of at least 20 feet of bare solid copper conductor 'not smaller than No. 4 AWG. (d) A ground ring encircling the building or structure, in d_rect contact with the earth at a depth below earth surface not less tan 2-1/2 feet, consisting of at least 20 feet of bare copper con- ductor not smaller than No. 2 AWG. 250-33. Made and Other Electrodes. Where none of the electrodes specified in Section 250-81 is avalab'_e, one or more of the elec- trodes specified in (a) through (d) below shall be ufsed. Where racticable, made electrodes shall be embedded below permanent mois- ure level. Made electrodes shall be free from nonconductive coat - :Jags, such as paint or enamel. Where more than one electrode system :s used (including those used for lightning rods), each electrode of ;..e system shall not be less than 6 feet from any other elect -rode of ,mother system. Two or more electrodes that are effectively bonded together are to be treated as a singl: electrode system in this seise. (a) An electrically continuous metal underground gas piping system that is uninterrupted w`th insulating sections or joints and without an outer nonconductivecoat' ng, and then only if acceptable to and expressly permitted by both the serving gas •3upp7ier and the authority having jurisdiction. (a) An approved bolted clamp of cast bronze cr brass or plain or malleable iron. (b) A pipe fitting, pipe plug, or other approved device -scree into a pipe or pipe fitting. (c) A sheet -metal -strap type ground clamp having a rigid metal base that seats on the electrode and having a strap of such material and dimensions that it is not likely to stretch during or after installation. (d) An equally substantial approved me.ans. 250-117. Protection of Attachment. Ground clamps or other fittings shall be approved for general use without protection or shall be protected from ordinary physical damage as indicated in (a) or (b) below. (a) Installations where they are not likely to be damaged. (b) Enclosing in metal, wood, or equivalent protective covering. 250-118. Clean Surfaces. Nonconductive coatings (such as paint, lacquer, and enamel) on equipment to be grounded shall be removed from threads and other contact surfaces to assure good electrical continuity. STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter..of',- RECEIVED MAY 8 1918 City Clerk's Office ITHACA, N. Y. Applications for renewal of certifica of confirmat-ion for franchises from American Television and Communications City of Ithaca (Tompkins Co.) Town: of Ithaca - (Tompkins Co.) Town of Lansing (Tompkins Co.) Town of,. Dryden (Tompkins Co.) Town of Town of Town of Village Village r.. Niagara City of Town of Town of Village Ulysses (Tompkins Coe) Caroline (Tompkins Co.)- Newfield (Tompkins Co.) of-, Candor (Tompkins Co.) of Newark Valley, (Tompkins Co. Frontier Cable(TV, Inc. Niagara Falls (Niagara Co. Niagara (Niagara Co.) Lewiston(Niagara Co.) of Lewiston (Niagara Co.) Brookhaven Cable Television, Inc. Village of Lake Grove (Suffolk Co.) Capitol Cablevision Systems, Inc. Town of Colonie (Albany Co.) Fallsburg Video Corporation Town of Fallsburg (Sullivan Co.) Harron Cable - New York Village of Clayville (Oneida Co.) Town of Deerfield (Oneida Co.) Town clf I+' rcy (Oneida Co.) Schenectady Cablevision, Inc. City of .Schenectady (Schenectady Co.) TelePrompTer Island Cable TV Corp. City of Mt. Vernon (Westchester Co.) TelePrompTer of Mohawk Valley, Inc. Town of Herkimer (Herkimer Co.) TelePrompTer Manhattan CATV Corp. Borough of Manhattan (New York Co.) Corp. 78-100 Docket Nos. 10057-R-78, 10058-R-78 10059-R-78 100€0-R-78 10061-R-78 10062-R-78; 10063-R-78 100697R-78 .,100707R-78 10071-R-78 10072-R-78 .:10073-R-78 10074-R-78 10081-R-78 10110-R-78 10115 -R -78- 10191A -R-78 10191C -R-78 10191E -R-78 ='10205C -R-78 10285-R-78 10287-R-78 10300-R-78 OCPV TO /Y e yeakhO, y) I-�2�, c51, '/ ek/O f 0. 01_407'74 2 'ORDER GRANTING RENEWAL OF CERTIFICATES OF CONFIRMATION (Adopted: April 19, 1978; Released: May 4, 1978) The above -captioned applications seek approval of certifi- cates of confirmation for the franchised cable television systems operated by the applicants in the respective municipalities. Each of the applications is governed by Section 821(6) of the Executive Law. The applications were not timely filed in accordance with Section 591.5(b)(2) of the Commission's Rules, however, the Commission, pur- suant to § 590.22 of its Rules will waive the § 591.5(b)(2) requiring filing by January 2, 1978 and accept the applications without impo- sition of any penalty, fine or forfeiture. Other than the above-mentioned defect the applications are in appropriate form and contain the information required by Part 591 of our Rules. The required notices of the applications have been given, and no objections to approval of the applications have been registered with the Commission. THE COMMISSION ORDERS: 1. In accordance with Section 590.22 of the Commission's Rules, the filing requirements of Section 591.5(b)(2) of its Rules are waived and the late filings of the applications are accepted without imposition of any penalties, fines or forfeitures upon the applicants. 2. In accordance with Section 821(6) of the Executive Law and Part 591 of our Rules, the certificates of confirmation are re- newed, valid until July 1, 1983, for the above -captioned franchises. 3. The renewal of these certificates of confirmation do not confer any rights or privileges other than those granted in the under- lying franchises, and the certificate holders remain subject to the obligations imposed by Article 28 of the Executive Law, and all applicable rules, regulations and orders of this Commission. 4. This Order constitutes, and shall'be evidence of, the renewal of the certificates of confirmation for the above -captioned franchises. Commissioners Participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman; Albert E. Farone; Malcolm Fein; Michael H. Prendergast, Commissioners. STATE OF NEW YORK 'EC. E V E[1 COMMISSION ON CABLE TELL'VISION In the; Matter ; of '� ) Application of American_ Television • and Communications)Docket No. Corp..:for approval of .amendment to ,a:.franchise in the) 56046 City of Ithaca (Tompkins County) 78-091 ORDER APPROVING AMENDMENT: - - (Adopted: April 19, 1978; Released: April 26,-.1978). 'The subject applicationwas submitted on March '1, 1978. by Ameri• - can Television and Communications Corp. ("ATC"), requesting approval for an amendment to its cable televisionfranchise issued by and for the City of Ithaca .(Tompkins Co:).- The proposed amendment ,to the Ithaca franchise does not'substantially modi.fy the .rate schedule authorized for Ithaca's subscriber', but does attempt to clarify other elements of the, franchise. relationship between the parties and . to bring the franchiseinto compliance with Part 59.5 of the Commis- sion Regulations.- .. _ . . " • , . Copy of the instant application was served upon the City and notice of it.waspublished in our Weekly Bulletin on March 3, 1978. The subject amendment was adopted by the City.after a public hearing held upon due notice. No objections to the instant application have been received. This application is governed by Section 822 of the Executive Law which requires that we approve the application unless we find that the applicant or the cable television system does not conform to the standards embodied in our Regulations and that approval.would be in violation of law, any standard or regulation promulgated by this Commission or the public interest. Having reviewed this application in the context of Section 822 of the Executive Law, we find that approval of the proposed amendment is appropriate and consistent with the public interest. In approving this application, it is necessary to comment on several specific elements of the newly negotiated franchise agreement. We note. that this franchise.agreement fails to include language required by our Regulations making the franchise non-exclusive (595.1(a)(4)), and designating a city official responsible for the administration of the franchise (595.1(n)). The non -exclusivity of this franchise is guaranteed by the limitations of Article 28 of the Executive Law. Therefore, we shall consider this element to be included by reference into this franchise. In addition, we shall approve this franchise upon condition that the City of Ithaca subse- quently designate a municipal officialresponsible for franchise administration and notify this Commission of that designation. �sc�r - � — S) f 17 fi - 2 - On March 25, 1977, we issued an ORDER APPROVING AMENDMENT re- garding a substantial modification of the Ithaca franchise. Ceracche Television Corp., 77-043. At that time we held that.the Ithaca franchise had been brought into substantial compliance with the standards.of Part 595 of_our*Regulations. The franchise agreement approved at that time is very sirnilar.in appearance to.the franchise before us here. Consistent with our Order of March 25, 1977, we shall condition our approval today upon the following bases: We shall withhold judgment on the validity of the •"lien" created by the franchise agreement for the collection of franchise fees_to.the city (Section .17 -of 'the franchise agreement) We shall limit our approval .of -.the access obliga- - tions proposed upon the franchisee to the -provision of'one channel for access purposes` -(Section -32 of the Agreement); We shall: withhold approval of the franchise clause allowing the city to modify subscriber rates unilaterally (Section 11(b)(10) of the Agreement); • We shall withhold approval of the franchise clause effecting the price of television sets sold (Section 11(c) of the Agreement); We remind the parties that the specification of subscriber rates for such auxiliary services as Home Box Office may not be legaily effective. (Section 31 of the Agreement). Brookhaven v. Kelly, 423 F. Sup. 1216 (USDC, NDNY, 1977) , Appeal Denied, January 25, 1978, USCA 2d Cir. ME -COMMISSION ORDERS: Pursuant to Section 822 of the Executive Law and the Regulations of this Commission, the application of American Television and Communications -Corp. for approval of amendment to the franchise in the City of,Ithaca (Tompkins County) .is bes:sby granted and, subject to the understandings and conditions expressed hereinabove, the sub- ject -amendment is hereby approved. Commissioners participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman; Albert E. Farone, Malcolm Fein, Michael H. Prendergast, Commissioners. W Our previous reference to FCC limitations on access obligations should bereconsidered in view of the ruling in Mid -West Video Corp. vs. FCC., (USCA 8 Cir.-, . Feb. 21, 1978) , Appeal Pending. Communications Corporation, c/o O'Connell and Aronowitz, P.C., 100 State Street, Albany, New York 12207. DATED: May 9, 1978 O'CONNELL AND ARONOWITZ, P.C. Attorneys for American Television and Communications Corporation. 100 State Street Albany, New York 12207 Tel. 518-462-5601 CERACCHE° TELEVISION A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street. Ithaca, N.Y. 14850 (607) 272.3456 City Clerk City of Ithaca 108 E. Green Street Ithaca, New York 14850 Gentleman: ECF VE CDp EMAP 1' 1918 1t cl: Office m1 A, N. v. f�. ay 15, 1978 Enclosed, you will find a copy of amendment procedures released by the New York State Commission on Cable Television in mid April. I would like to call your attention to Section 592-1.3(b) regarding the statements that must be contained in a notice of a public hearing. If you have any questions regarding this regulation, please feel free to contact me. Very truly yours, CERACCHE TELEVISION Robert D. Skinner Assistant Manager RDS:tm ENCL. 4 Part 592 Amendment Procedures Subpart 592-1 Amendments Section 592-1.1 Applicability: The rules contained in this Part apply to all amendments of cable television franchises; pro- , vided, however, that any amendment that would have the effect of extending the duration of" a franchise shall be deemed a renewal and shall be subject to the provisions of Part 591 of this Subtitle. Section 592-1.2 Commencement of amendment process: Any cable television company or municipality-proposin toamenda cable tele- vision -franchise shall.: commence the formal -amendment process y written -notice= :sent to the -other -party and to » the " commission. - The notice- shall -contain the text or -set forth - the . substance- of_..the-pro- posed amendment. Section 592-1.3 Public 'hearing requirement:":" (a) No cable television franchise may be amended except -afterapublic hearing preceded by reasonable notice. Thisprovision shall not be deemed to require an additional hearing in those cases in which a hearing is otherwise required by applicable provisions of law. (b) In addition to satisfying other applicable requirements, the notice of ublic hearin shall indicate the subject of the pro- posed amendment. The notice shall also state that the amendment, if approved by the munici•alit ma not take effect without the prior approval of the commission and that interested parties may file comments or objections with the commission. Section 592-1.4 Commission approval re uired: (a) No amendment toanycable television franchise shall be effective without the• prior approval of the commission in accordancewiththe provisions of Section 592-1.5 of this Part. (b) An application for approval of a franchise amendment shall comply with the requirements of Part 590 of this Subtitle and shall set forth or include at least the following; (1) the name, mailing address and telephone number of the cable television company; (2) the name, mailing address and telephone number of the municipality approving "the amendment and the date municipal action was taken; (3) the complete text of the 1m nt and proof that the au rdrnettt was approved by the municipality; (4) proof of . publication of the notice of public hearing on the amendment; (5) a description of the rate changes, if any, effected by the amendment; (6) in the . case of an application _filed by a _ cable television company, proof _that n copy of the . application has ._been._. served_ - on= the =municipality; in the - case of En application .filed=by=a municipality, proof - that a. copy_-of_the application has been served on the cable television company. Section 592-1.5 Effective d too shall be effective T-- amendment: (a) No amendment anu no change effected by any amendment may be implemented, until the commission shall have adopted an order approving such amendment. Unless the order shall otherwise provide, the effective date of the amendment shall be the date of commission action. (b) For purposes of this Section, the mailing to subscribers of bills reflecting a rate change shall be deemed the implementation of such rate change. CITY OF ITHACA TOMPKINS COUNTY ITHACA, NEW YORK 14850 TELEPHONE: AR 2-1713 May 31, 1978 CODE 607 American Television Communications Corporation c/o O'Connell and Aronowitz, P.C. 100 State Street Albany, New York 12207 Dear Sirs: The Charter and Ordinance Committee of the Ithaca Common Council, being duly notified of the application of American Television Communications Corporation to transfer ownership of stock to Time Television and Communications Incorporated, does hereby respectfully request that the New York State Cable Television Commission conduct the routine processing of the application without any waiver of the 60 -day requirement. The time is needed to afford this city an opportunity to study the possible implications of the stock sale. EBN:hh Sworn to before me this 31st day of May, 1978. Not;ry ublic State of New York JOSEPH A. RUNDLE Notary Public, State of New York No. 55-4507134 Qualified in Tompkins Count Term Expires March 30, 19si Sincerely yours, Ethel B. Nichols Chairman Charter and Ordinance Committee Ithaca Common Council OFFICE OF MAYOR MEMO TO: FROM: DATE: SUBJECT: He. Rumps'. CITY DF ITHACA 1 08 EAST GREEN TREET ITHACA, NEW YORK 14850 TELEPHONE: 272-1713 CODE 607 Mrs. Ethel Nichols, Chairman of the Charter and Ordinance Comm. Mr. Dana Ulloth, Chairman of the Cable Commission Mr. Martin A. Shapiro, City Attorney Mr. Joseph Rundle, City Clerk Mayor Edward J. Conley May 25, 1978 Application of American Television and Communications Corp. for Approval of the Proposed Merger. of American Television and Communications Corporation and Time Television and Communications, Inc. Attached hereto is a copy of a letter from Mr. Neil H. Rivchin along with a copy of the Notice and Verified Application for the proposed merger of American Television and Communications Corp. and Time Television and Communications, Inc. for your information. CC: Mr. Raymond Bordoni LEWIS A.ARONOWITZ STANTON ABLETT GEORGE MYERS JOHN E.BRANDOW RALPH G. MANCINI HOWARD W. ROTH CORNELIUS D. MURRAY DANIEL M. SLEASMAN MAX GORDON NEIL H, RIVCHIN PETER L. DANZIGER FRED B. WANDER STEPHEN R. COFFEY Hon. Edward a. Conley City Hall Ithaca NY 14850 O'CONNELL AND ARONOWITZ, P. C. ATTORNEYS AND COUNSELLORS AT LAW ton At, d,C,-,d �1�GGain�r� U /2207 AREA CODE 518 462-5601 434-1251 May 23, 1978 19-e" Re: Application of American Television and Communications Corporation for Approval of the Proposed Merger of American Television and Communications Corporation and Time Television and Communications, Inc. Dear Mr. Conley: Enclosed herewith is a copy of the Notice and Verified Application for the proposed merger of American Television and Communications Corporation and Time Television and Communications, Inc. Very truly yours, r , O'CONNELL AND ARONOWITZ, P. t Neil H. Rivchin NHR:njb Enclosures EDWARD J. O'CONNELL 1925..1939 LEON ARONOWITZ 1941-1969 SAMUEL E.ARONOWITZ 1925-1973 MEYER A.JENEROFF OF COUNSEL 1 STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In The Matter Of Application Of American Television And. VERIFIED APPLICATION Communications Corporation For Approval Of The Proposed Merger Of American Television And Communications Corporation and Time Television And Communications, Inc. Pursuant To §822 Of The Executive Law. Docket No. TO THE COMMISSION: American Television and Communications Corporation (here- inafter referred to as ATC), hereby applies for approval of the merger of ATC with Time Television and Communications, Inc. (hereinafter referred to as TTC) as -hereinafter set forth. Pursuant to §822 of the Executive Law of the State of New York, and General Order No. 2 of the Commission, as amended, the following information is submitted in support of this Application: 1. The Applicant is ATC, a Delaware Corporation, authorized to do business in the State of New York, with its principal office at 20 Inverness Place East, Englewood, Colorado 80110, Tel. (303) 773-3411. 2. Upon information and belief, TTC is a Delaware Corporation, which will be authorized to do business in the State of New York, on or before the effective date of the proposed merger. TTC is a wholly owned subsidiary of Time, Inc., a New York corporation, which has its principal executive office at Time & Life Building,Rockefeller Center, New York, New York 10020, Tel. (212) 586-1212. Upon consummation of the merger, TTC will be the surviving corporation and will continue to be a wholly owned subsidiary of Time, Inc. 3. ATC owns and operates the cable television systems in the following municipalities in New York State, either in the name of ATC or through a subsidiary of ATC: City of Ithaca, Town of Ithaca, Town of Dryden, Town of Newfield, Town of Lansing, Village of Lansing, Town of Ulysses, Town of Caroline, Town of Danby, Village of Groton, Town of Groton, Village of Trumansburg, and Town of Enfield (all located in Tompkins County); Village of Candor, Town of Candor, Village of Newark Valley, and Town of Newark Valley (all located in Tioga County); and City of Albany, City of Watervliet, Town of Colonie, Village of Colonie, Town of Guilderland, Village of Menands, and Village of Green Island (all located in Albany County). There is presently pending before this Commission an Appli- cation of ATC for approval of the transfer of the Village of • Cayuga Heights cable television franchise and facilities now owned by Ceracche Television Corporation, to ATC, and the con- summation of the transfer awaits Commission approval. -2- 4. The proposed merger shall be effected by giving the holders of outstanding ATC common stock, with some exceptions, the right to elect either to receive cash or certain preferred stock of Time, Inc. in payment of their ATC common stock. Upon consummation of the proposed merger, the surviving corporation shall be known as "American Television and Communications Corporation." 5. Attached hereto as Exhibit "A" are true copies of the consents to the transfer herein from all municipalities from which such consents are required. 6. Attached hereto as Exhibit "B" is proof of service of a copy of this Application upon the Chief Executive Officer of each municipality directly affected by the proposed merger, together with a Notice that any objections to the requested. Commission action must be submitted to the Commission, and copies served upon the Applicant, within fifteen (15) days after receipt by the municipality of the copy of the Application and Notice. 7. The Application and the proposed merger will not be in violation of, or in any way inconsistent with, any applicable federal, state, or municipal laws, ordinances or regulations, or the public interest. 8. Applicant requests that the Commission waive its sixty (60) day processing requirement on the grounds that the -3- parties to the within proposed merger desire to expedite the Commission approval in order to coordinate applications presently before other governmental bodies with regard to the consummation of the proposed merger. WHEREFORE, it is respectfully requested that the Commission approve the proposed merger of American Television and Communications Corporation and Time Television and Communications, Inc., and, in addition, waive the Commission's sixty (60) day processing requirement. DATED: May.23 , 1978 O'CONNELL AND ARONOWITZ, P.C. Attorneys for American Television and Communications Corporation Office and P.O. Address 100 State Street Albany, New York 12207 Tel. (518) 462-5601 STATE OF COLORADO ) )ss.: COUNTY OF ARAPAHOE ) HENRY J. GERKEN, being duly sworn, deposes and says: That he is Secretary of American Television and Communications Corporation, the corporation named in the within Application, that he has read the foregoing Application for approval of a proposed merger, and knows the contents thereof; that the same is true to his knowledge, except as to the matters therein stated to be alleged upon information and belief, and as to those matters, he believes it to be true. 1% Notary Public, State of Colorado my J. fterken, Secretary LEGAL NOTICE OF PUBLIC HEARING PLEASE TAKE NOTICE that a Public Hearing upon proposed amendments to the cable television franchise agreement of the Village of Trumansburg will be held at the Village Fire Station, Main Street, Trumansburg, New York, February 13, 1978 at 7:30 o'clock P.M. The proposed amendments include increase of the monthly rental from $5.50 to $6.00; establishing a $10.00 charge for changing the location of a cable; establishing rates for 20 channel service; providing for a performance_ bond from the franchisee; providing for a $40.00 security depoait from subscribers; extending the franchise term for 10 years from date of an amended franchise agreement; and approving acquisition of the stock of American Television Communications Corporatiprtlstock by Time, Inc. Y Dated: February 6, 1978 alp,r B. ess, lerk STATE OF NEW YORK COUNTY OF TOT'PKINS 1, the undersigned Clerk of the Village of Trumansburg, New York, DO HEREBY CERTIFY: That the above has been compared to the original thereof and that the same is a true and.correct transcript of the sane which appeared in the Trumansburg Free Press on Thursday, February 9, 1978. IN WITNESS WHEREOF, I have hereunto set my hand and affixed' the se 1, gf •.said village this 9/ day ebruary, 197 :// _ . -1; 1 A. • �L• •r ••t • i • EXHIBIT r NEW WORK 14886 is: AN (,rr1rE ;LR-7t'�. � f = ill �-� ASST- t+4rGr..Cliti rr ENG. A a D ig.11.26;irgl!!'"\ February 2i, 1975 Hr. Kevin H. Rorke, General Manager. Ceracche Television 519 West State Street Ithaca, New York Dear I'Lr. Rorke: Two Miles To Taughannock Falls 215 Feet High Please be advised that the following resolution was duly adopted by the Village Board of Trustees on I`1onday, February 13, 1978. "RESOLVED that .the Village of.Trumansburg does hereby consent to the transfer and assignment of all of American Television and Communications Corporation rights, title, interest and obligations under the Village of Trumansburg's cable television franchise to the surviving corporation of the merger of American Television and Communications Corporation and a wholly owned subsidiary of Time, Inc., which shall be known as American Television and Communications Corporation upon consumation of .the merger." 06. se + • EXHIBIT "A" Ralph B. Ness Village Clerk SI:!orn to before me this (v day °'i JSC144,c_, ,1973. Notary SYL'1:\ 1. i'STTER TitOT,t3Y i 3X. tte : i nv v -.'r Term Exr!::s 20. 1574 :.c.t.a.ra. r- -•-1+., �tYtvns'c=a .xs�..roa .-..._....rzs.tsY•,..c.. ' t' m_. _..+inasc I STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of. Application of American Television and Communications Corporation for Approval of the Proposed Merger of American Television and Communications Corpo- ration and Time Television and Communications, Inc. Pursuant to §822 of the Executive Law. STATE OF NEW YORK) )ss.: COUNTY OF ALBANY ) AFFIDAVVIT OF SERVICE BY MAIL KAREN L. HAZZARD, being duly sworn, deposes and says, that deponent is over the age of 18 years; that on May 23, 1978 deponent served a copy of the within Notice and Application upon the follow -}ng municipalities at the following places and in the following manner: Hon. Edward 1 Conley City Hall Ithaca NY 14850 Robert Linton, Supervisor Town of Enfield R.D. #1 Trumansburg NY 14886 Mr. A. Francis Wright, Supervisor Town of Danby Danby Town Hall 2350 Danby Road \Villeyville NY 13864 Harold B. Payton, Supervisor Town of Caroline Caroline Town Hall 736 Valley Road Brooktonvale NY 14817 Mr. Walter 1 Schwan, Supervisor Town of Ithaca 126 E. Seneca St. Ithaca NY 14850 Mr. Charles G. McCord, Supervisor Town Hall Town of Dryden 65 East Main St. Dryden NY 13053 Mr. Hicks B. Dow, Supervisor Town of Groton Groton Town Hall 101 Conger Blvd. Groton NY 13073 Mr. Wesley E. McDermott, Supervisor Town of Lansing Lansing Town Hall P.O. Box 186 Lansing NY 14882 EXHIBIT "B" Mr. James H. Drader, Jr., Supervisor Town of Newfield 43 Pearl Street Newfield NY 14867 Mr. Bruce M. Payne, Supervisor Town of Ulysses Ulysses Town Hall Trumansburg NY 14886 Mr. John Targosh, Supervisor Town of Candor Candor Town Hall R.D. #1 Candor NY 13743 Mr. Edwin P. Clement, Supervisor Town of Newark Valley Newark Valley Town Hall Newark Valley NY 13811 Hon. Frank Satterly Village of Groton Municipal Bldg. 108 Cortland St. Groton NY I3073 Mayor, Village of Trumansburg Trumansburg Village Hall Trumansburg NY 14886 Hon. Seymour Smidt Village of Lansing Lansing Village HaLl 405 North Triphammer Road Ithaca NY 14850 Mayor, Village of Candor Candor Village Hall Candor NY 13743 Hon. Erastus Corning, II City Hall Albany NY 12207 Mr.. Carl Walters, Supervisor Guilderland Town Hall McCormack Corners Guilderland NY 12084 Hon. J. Leo O'Brien City Hall Watervliet NY 12139 Hon. Thomas Gibbs Menands Village Hall 250 Broadway Menands NY 12204 Mr. Fred G. Field, Supervisor Colonie Town Hall Newtonville NY 12128 Hon. Charles S. Mi l t on Colonie Village Hall 2 Thunder Road Colonie NY 12205 • Mayor Michael McNulty Village of Green Island 20 Clinton St. Green Island NY 12183 Non. H.M. Bateman NewarkValley Viflage Hall Newark Valley NY 13811 Hon. F. G. Marcham Village of Cayuga Heights Cayuga Heights Village Hall 836 Hanshaw Road Ithaca NY 14850 by depositing a true copy of the same properly enclosed in/a post-paid Certified Mail Return Receipt Requested wrapper in an Official. Depository maintained and exclusively con- trolled by the United States at 100 State Street, Albany, New York, directed to said municipalities at said addresses, respectively mentioned above, that being the addresses within the state designated by them for that purpose, according to the best information which c.n be cony� e tly obtained. Karen L. Hazzard Sworn to before me this 23 d/day of May, 1978. Notary Public State of New York .;. STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In The Matter Of Application Of American Television And Communications Corporation For Approval Of The Proposed Merger Of American Television And Communications Corporation and Time Television And Communications, Inc. Pursuant To §822 Of The Executive Law. NOTICE PLEASE TAKE NOTICE, that American Television and Communi- cations Corporation will file with the New York State Commission on Cable Television an Application for approval of the above - entitled proposed merger between American Television and Communications Corporation and Time Television and Section 822 of the Communications Corporation prusuant to Executive Law of the State of New York; PLEASE. TAKE FURTHER NOTICE, that objections to the requested Commission action of any municipality directly affected by the proposed transaction must be submitted to the New York Commission on Cable Television and served upon the Applicant within fifteen (15) days following receipt by the municipality of a copy of the Application and this Notice; and PLEASE TAKE FURTHER NOTICE, that true copies of any objections must be served upon American Television and ((UMW 311)111P AMERICAN TELEVISION & COMMUNICATIONS RATION 20 INVERNESS PLACE EAST • ENGLEWOOD, COLORADO 80112 ' - • (303) 7 3411 JOSEPH J. COLLINS Vice President Eastern Operations City Clerk of City of Ithaca Ithaca., New. York •Gentlemen FEB2 01979 CITY CLERK'S OFFICE Ithaca, II. Y. January 30, 1979 Re: City of Ithaca CATV Franchise dated 2-2-77 -- Ceracche TV Corp. Amended to Ceracche TV Corp. Division of ATC As you know, American Television and Communications. Corporation ("ATC") is the holder of the cable television franchise granted pursuant . to the franchise referred to above. We are pleased to advise you that, on November 14, 1978, ATC merged into and thereby became a wholly owned subsidiary of Time Incorporated. Our business, assets and obligations are the same after the merger as they were before.and we will continue to conduct our business under the name of American Television and Communications Corporation. The management of the new American Television and Communications Corporation is the same as the management prior to the merger. The merger will not result in changes in local management or operating procedures or policies. , ATC and.you will continue .to be bound by, and entitled to the', rights and benefits pursuant to, the Franchise and ATC hereby assumes, and agrees with you that ATC shall perform; all of the obligations under - the Franchise which ATC had immediately prior to the merger. As such, the Franchisee shall continue to fulfill the insurance and bonding -requirements contained in the franchise. We look forward to the continuance of our good relations and we shall continue to provide quality cable television services to -our subscribe VeryATru Yours, JJC:tr Collins . Copies of this letter were sent to M. Shapiro, Mayor Conley and all Council people. cp (2/20/79) OFFICE OF MAYOR CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 '‘`(\"Z - MEMO TO: Mr. Raymond Bordoni, Alderman/T.V. Cable Mr. Morris Angell, T.V. Cable Committee Mr. Peter Portorti, T.V. Cable Committee FROM:. Mayor Edward J. Conley DATE: December 19, 1978 SUBJECT: Cerrache TV - HBO - Commercial Establishments EPHONE: 272-1713 CODE 607 Committee Attached hereto please find a copy of a memo received from Mr. Martin Shapiro, the City Attorney along with.a copy of a letter from Mr. David Lee together with a copy of a letter from Charles B. Morris, in regardtto pay television for your attention. EJC : rb ATTACH. CC: Mr. Joseph Rundle, City Clerk Mrs. Ethel Nichols, Chrm. C & 0 CITY OF ITHACA TOMPKINS COUNTY ITHACA, NEW YORK 14850 City Attorney TELEPHONE:272-1713 MEMO TO: Hon. Edward J. Conley FROM: Martin A. Shapiro, City Attorney DATE: October 20, 1978 SUBJECT: Cerrache TV - HBO - Commercial Establishments CODE 607 Enclosed please find a copy of a letter from David Lee together with a copy of a letter from Charles R. Morris, III, the ATC direc- tor of Pay Television. Please advise if you wish to pursue this further. • MAS:rb ENC. CERACCHE TELEVISION A DIVISION OF AMERICAN TELEVISION 8 COMMUNICATIONS CORP. 519 West State Street. Ithaca. N.Y. 14850 (607) 272-3456 October 16, 1978 Mr. Martin A. Shapiro City of Ithaca 108 E. Green Street Ithaca, New York 14850 RE: HBO - Nonresidential Establishments Dear Mr. Shapiro: Enclosed is a copy of a letter from Charles R. Morris, Director of Pay TV, which states ATC's position on Pay Television service to nonresidential establishments. After you have read this letter and would like to discuss it further between yourself, myself and Mayor Conley, please let me know. I would be available at any time should you want to meet again. Very truly yours, David A. Lee General Manager DAL:tm ENCL. v <zti[r; i))n))))► AMERICAN TELEVISION & COMMUNICATIONS CORPORATION 20 INVERNESS PLACE EAST • ENGLEWOOD, COLORADO 80110 • PHONE (303) 773-3411 September 1, 1978 . Mr. David Lea General Manager Ceracche Television 519 West State Street Ithaca, New York .14850 Dear David: In response to your request for an explanation of ATC's corporate position regarding the provision of HBO service to commercial establishments, the following information is provided. ATC, within its systems, is engaged in the delivery of audio and video -services of various types. It is the business of ATC to attract as many customers as possible to our service, and we would like to serve everyone who requests service. In the case of -pay television programming, motion picture dis- tributors have made this programming available to pay television with the stipulation that the programming be sold primarily to the residential market and with the -specific prohibition that -such programming may not be delivered to commercial establish- ments including bars and restaurants. In order to offer the _benefit of pay television programming on its cable systems, ATC h.s agreed to abide by this provision in our contract with our pay television network supplier. If and when such programming may be made available in commercial establishments, you may rest assured that we will eagerly pursue that -marketplace. By way of explanation I can speculate on the reason behind this prohibition. It is the position of the motion picture owner that any revenue generated directly or indirectly as a result of the exhibition of his property (the picture) should be shared with him. Bars and restaurants are in the business of selling food and drink, and would offer commercial free motion picture enter- tainment to attract eaters and drinkers. Food and beverage sales would become a source of revenue to the restauranteur, but no appropriate share of these revenues would be offered to the motion picture owner. d=. OFFICE OF CITY ATTORNEY CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 1 4850 ' 7-)24: ,/ic/% February 21, 1979 Mr. Joseph J. Collins American Television & Communications Corporation 20 Inverness Place East Englewood, Colorado 80112 Dear Mr. Collins, HONE: 272-1713 CODE 607 Re: Cable Franchise Your letter of January 30, 1979, was received by the City Clerk on February 20, 1979, and immediately forwarded to my attention. I believe the merger of ATC into Time, Incorporated, may be construed;to violate certain provisions of the Franchise regarding nontrariferability of the Franchise. I suggest that you formally apply to the Common Council to effectuate the apparent transfer. Very truly yours, Martin A. Shapiro CC: Edward J. Conley, Mayor Joseph Rundle, City Clerk FRANCHISE AGREEMENT BETWEEN THE CITY OF ITHACA, NEW YORK, A municipal corporation, AND AMERICAN COMMUNITY CABLEVISION, a division of AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION Dated as of July 27, 1987 Introduce: ORDINANCE NO: AN ORDINANCE granting a Cable Communications System franchise to American Community Cablevision, a division of American Television and Communications Corporation, to operate and maintain a Cable Communications System within the City of Ithaca pursuant to and subject to the provisions of Ordinance No. , passed by the Common Council of the City of Ithaca on WHEREAS: In the renewal process: (1) ACC's technical ability, financial condition, and - character were considered and approved by the Common Council in a full public proceeding affording due process; (2) ACC's plans for constructing and operating the cable television system were considered and found adequate and feasible in a full public proceeding affording due process; (3) ACC complies with the New York State Commission's franchise standards; and (4) the franchise is nonexclusive. THEREFORE, BE IT ORDAINED by the Common Council of the City of Ithaca, New York. Section 1. Pursuant to Ordinance No. ,. passed by the Common Council of the City of Ithaca on the "Franchise" between the City of Ithaca, New York, and American Community Cablevision, is hereby authorized and approved and the Mayor is hereby authorized and directed to execute said Franchise on behalf of the City, upon approval thereof by the City Attorney. Section 2. That this Ordinance shall take effect and be in force from and after its passage and publication according to law. Introduced by: Approved as to Form and Legality: City Attorney FRANCHISE AGREEMENT THIS AGREEMENT is made and entered into as of this day of , 1987, by and between the City of Ithaca, New York, a municipal corporation, hereinafter referred to as "City," and American Community Cablevision, a division of American Television and Communications Corporation (hereinafter referred to as "ACC") with its principal place of business at 519 West State Street, Ithaca, New York 14850. WHEREAS, the City is authorized to grant one or more nonexclusive, revocable, franchises to operate and maintain a Cable Communications System within the City; WHEREAS, the City, received an application for renewal of the existing franchise from ACC; and WHEREAS, the City, after due evaluation, has determined that it is in the best interest of the City and its residents to renew the Franchise of ACC for a year term. NOW, THEREFORE, IN CONSIDERATION of the mutual promises and covenants contained herein, the parties do mutually agree as follows. I GRANT OF FRANCHISE A. ACC is hereby granted for itself and its successors and assignors, subject to the terms and conditions of this Franchise, the right, privilege, and authority to operate and maintain a Cable Communications System within the streets, alleys, and public ways of the City. ACC shall provide a modern, state-of- the-art Cable Communications_ System to the residents and institutions of the City in accordance with this Franchise. B. The Franchise is subject to the Ithaca Cable Communications Regulatory Ordinance (hereinafter, "Cable Ordinance") and other. Ordinance provisions now in effect or hereafter made effective. Nothing in this Franchise shall be deemed to waive the requirements of the various codes and Ordinances of the City regarding permits, fees to be paid, or manner of construction. C. For the purpose of operating and maintaining a Cable Communications System in the City, ACC may erect, install, extend, repair, replace, and retain in, on, over, under, or upon, across and along the public streets, alleys, and ways within the City such wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, pedestals, attachments, and other property and equipment as are necessary and appurtenant to the operation of the Cable Communications System in conformance 3 with the City's specifications. Prior to any extension, relocation, or alteration, however, ACC shall file plans with the appropriate City agencies and utilitycompanies andreceive written approval before proceeding. II RIGHT OF CITY TO ISSUE FRANCHISE ACC acknowledges and accepts the legal right of the City to issue a Franchise and ACC agrees that it shall not now nor at any time hereafter challenge this lawful right in any way, in any City, State, or Federal court or governmental agency. III EFFECTIVE DATE OF FRANCHISE; EFFECT UPON EXISTING FRANCHISE The effective date of the Franchise shall be the date of, passage of the Franchise Grant Ordinance, which shall incorporate this Franchise, or January 20, 1988, whichever is later, and, immediately upon the taking effect of this Franchise, the prior Franchise granted to ACC, on , by the passage of Ordinance No. shall be superseded and of no further force and effect; provided, however, that vested rights relating to billings and the City's rights to accrued Franchise fees shall not be affected thereby; and provided, further, that any criminal proceedings commenced under or pursuant to said Franchise shall in no manner be affected. IV TERM The term of the Franchise shall be for a period of years from the date of issuance of a Certificate of Confirmation of this Franchise by the New York State Commission on Cable Television, unless sooner terminated as provided in the Cable Ordinance, at which time it shall expire and be of no further force and effect. V FRANCHISE NONEXCLUSIVE This Franchise shall not be construed as any limitation upon the right of the City to grant to other persons rights, privileges, or authorities similar to the rights, privileges, and authorities herein set forth, in the same or other streets, alleys, or other public ways or public places. The City specifically reserves the right to grant at any time during the term of this agreement or renewal thereof, if any, such additional Franchises for a Cable Communications System as it deems appropriate. VI INCORPORATION OF ORDINANCE BY REFERENCE AND RESOLUTION OF CONFLICTS All terms, conditions and provisions of the Cable Ordinance shall be deemed to be embodied in this Franchise, and the express terms of said ordinance shall prevail over conflicting or inconsistent provisions of this Franchise. VII INCORPORATION OF PROPOSAL BY REFERENCE The Franchise renewal proposal submitted by ACC to the City of Ithaca shall be deemed to be embodied in this Franchise, and the express terms of this Franchise shall prevail over conflicting or inconsistent provisions of the proposal. VIII DEFINITIONS All definitions set forth in the Cable Ordinance pertain to this Franchise and shall be relevant to 'the purposes and meaning of this Franchise. IX SERVICE AREA ACC shall offer full cable communications service to all residents in the Franchise Area, which shall be the corporate limits of the City of Ithaca, including all territory thereafter annexed to the City. X SYSTEM DESIGN AND CAPACITY A. The parties understand and agree that ACC shall operate and maintain in the City of Ithaca a Cable Communications System spaced to .permit a minimum of 450 MHz operation, capable of using state-of-the-art home terminals and other devices. (Two way discussion to be added.) In operating and maintaining the system, ACC shall at all times comply with the Cable Ordinance, and all other applicable laws, construction standards, safety codes, government requirements and FCC technical standards. B. Equipment used for the distribution system, headend and reception facilities shall be of good and durable quality and be serviced and repaired on a regular basis and shall at all times be of equal or better quality than the equipment listed in Appendix A attached hereto and incorporated by reference. C. Emergency Alert. ACC shall provide an all channel audio emergency alert system to the City. The initiation site for emergency messages shall be the Central Fire Station. ACC shall provide a telephone line activation system for the emergency alert system. D. Satellite Earth Stations. The system configuration shall include earth stations adequate throughout the life of the Franchise, to receive signals from operational communications satellites that predominately carry programming services available to cable systems. E. Interconnection. Upon the request of the City, ACC shall interconnect the access channels of the Cable Communications System with neighboring cable system. F. Converters. ACC shall utilize state-of-the-art converters. ACC shall make converters available to subscribers for rent or purchase. ACC shall allow subscribers to purchase or rent converters from other vendors. ACC shall provide detailed information written in "plain English" to consumers and all sellers of converters on the items necessary for converter compatibility with ACC's Cable Communication System. Subscribers shall only be required to replace converters rented from ACC if there has been willful destruction or damage caused by the gross negligence of the subscriber. G. Internal Wiring. ACC shall install and/or maintain internal wiring for subscribers. ACC may own the internal wiring or, at the subscribers discretion, the subscriber may own the wiring. ACC shall allow subscribers to have other vendors install, own, and/or maintain internal wiring. H. Remote Controls. ACC shall make remote control units available to subscribers to purchase or rent. ACC may provide remote control units to subscribers at no charge as a part of its package of services. Grantee shall allow subscribers to purchase or rent remote control units from other vendors. ACC shall provide detailed information written in "plain English" to consumers and all sellers of remote controls on the items necessary for compatibility with ACC's. Cable Communications System. Subscribers shall only be required to replace remote control units rented from ACC if there has been willful destruction or damage caused by the gross negligence of the subscriber. I. Performance Testing. ACC shall perform all system tests and maintenance procedures as required by the Cable Ordinance and in accordance with ACC's maintenance manualattached hereto as Appendix B and incorporated by reference. J. Construction. All work involved in construction, installation, maintenance, and repair of the cable communications system shall be performed in a safe and reliable manner. Any construction, extension or installation performed pursuant to this Franchise or the Cable Ordinance shall be -in conformance with said Ordinance and all other applicable federal, state and local laws, codes and regulations. ACC shall at all times comply with the standards set forth in its manual of construction practices (attached hereto as Appendix C and incorporated by reference)., in addition to the National Electrical Safety Code, the National Electrical Code, the Bell System Code of Pole Line Construction,and the NCTA Code of Construction Practice. ACC shall file requests for all necessary operating authorizations and permits with the New York Commission on Cable Television utilities, and the Federal Communications Commission no later than sixty (60) days from the date the franchise is awarded. The cable system shall be completed by February 1989. XI SYSTEM SERVICES A. Residential Subscriber Services and Programming. ACC shall maintain, at a minimum, the mix, quality, and. level of programming set forth in Appendix D, attached hereto and incorporated by reference. B. Cable Drops andMonthlyService. ACC shall provide free cable drops to locations already provided with free drops, and at any City designated locations in any new or renovated public, educational or public service offices or buildings designated by the City at the time of the rebuild. After the rebuild, ACC shall provide additional drops as specified by the City at the time of building construction or renovation of existing or new public, educational or public service offices or buildings designated by the City. The City shall. provide ACC with reasonable notice of such construction and renovation. The first tier of service, closed circuit channels, institutional, and applicable two-way channels shall be provided free of charge to all of these locations. C. Handicapped Services. All closed -captioned programming retransmitted by the system shall include the closed -caption signal. XII ACCESS AND INSTITUTIONAL SERVICES In order to develop and promote public,, educational and government access programming for the system's access channels and institutional services, ACC hereby agrees to provide the following: A. ACCESS CHANNELS. Nine downstream channels shall be designated for public, governmental, and educational access. The access channels shall be available for use by New York State, local governments, educational institutions, or members of the general public for education and public service programming, municipal services and local expression. Upon activation of the upstream capacity on the Cable Communications System, one upstream channel shall be designated for city and public sector uses. The City shall designate appropriate uses and users for the upstream channel designated for the City. The public, governmental, and educational access channels shall be available on a first-come, first -serve basis at no charge to any individual, association, or organization desiring to utilize them; provided, however, that ACC may deny the right to use the channels for commercial purposes. B. EQUIPMENT (1) LOCAL ORIGINATION EQUIPMENT. Local programming production equipment, as set forth in Appendix ---- hereof shall be provided in studios located in the City of Ithaca. In instances, as set forth in the Appendices, where the use of local origination equipment is shared with access, this equipment shall be made available to access users free of charge at such times as the facilities are open and where the equipment is not being utilized for local origination productions. All local programming equipment shall remain the property of ACC. but shall be made available foraccess use by the City of Ithaca, local institutions and residents and surrounding ACC System residents. All equipment shall be replaced as needed consistent with good operating practice. (2) PUBLIC ACCESS EQUIPMENT. New public access equipment. with a purchase value of $260,000 shall be purchased by ACC for additions to existing access equipment inventory listed in Appendix ---- ACC shall prepare an equipment purchase list for City approval within sixty (60) days of the receipt of the -Franchise. All equipment purchased shall be new and shall be purchased and installed within six months of the City's approval of the equipment list. All access equipment shall remain the property of ACC but shall be made available for access use by the City of Ithaca, local institutions and residents and surrounding. ACC system residents. All access equipment shall be replaced as needed consistent with good operating practice; on an average annual basis ACC has agreed to provide 1% of ACC system subscriber 8 revenues for access equipment replacement and expansion. (4) All access equipment shall be properly maintained by ACC and. ACC will provide a : regularly scheduled maintenance program. All equipment shall be repaired or replaced in a timely manner to remain consistent with good operating practices. C. STUDIO. ACC shall maintain in its local programming studios in the City of Ithaca the equipment specified in (B) above. ACC shall adopt business hours which shall provide for the use of the studio from Monday through Friday at a minimum of forty (40) hours a week between the hours of 9 a.m. and 11 p.m. ACC shall offer additional weekday or weekend hours as community needs dictate. D. ACCESS RULES. ACC shall establish 'rules to insure that the studio(s) and portable equipment are available equitably to the governmental, educational and public sectors. Rules for public access should assure the availability of the studio(s) .and portable equipment on a first-come, first-served basis. Any changes to current access rules shall be established by ACC within three months of the Franchise award, and ACC shall file those rules with the New York State Commission on Cable Television. Such rules shall include the following provisions. (i) A rule specifying the channel time is available on a first-come, first-served, nondiscriminatory basis, except as provided in the rules of the New York State Commission on Cable T.V.; (ii) procedures for scheduling the use of television production equipment andfor scheduling the cablecasting of programming on the channel(s) designated for the purposes enumerated in paragraph A above; (iii) the fact that no charges shall be paid for the use of productionequipment, facilities and personnel; (iv) a requirement that a record be maintained of the use of the designated television channel(s), including the names and addresses of persons and organizations providing programming for such.channel(s); such record to be, available locally for public inspection and retained for a minimum of two years; (v) procedures for registering and resolving complaints regarding channel availability, priorities and usage; and (vi) a requirement prohibiting the designated channel from being used for the promotion or sale of commercial products or services, including advertising by or on behalf of candidates for public office. E. STAFFING. ACC shall provide adequate staffing, for the maintenance and operation of the access channels, facilities, studio andequipment, and the provision of access services as required in the franchise and as contained in the franchise proposal. ACC shall provide, at a minimum, two full-time access staff people at the time of the franchise award, and an additional full-time access staff person at the completion of the rebuild (no later than February 1, 1989), and a forth full-time access staff person at the beginning of year five of the Franchise, ACC shall have the. right to petition the Cable Commission in 1991 to have the requirement to employ the fourth access staff person waived in the sole discretion of the City Cable Commission, which waiver shall not be granted in any event if community needs support the position. F. TRAINING. ACC shall provide adequate training for access users free of charge. At a minimum, ACC shall provide monthly access production and editing training classes, provided that community interest of five or more residents_in any given month exists. At no time will a resident be requested to wait over two months for training. The two training classes will each be approximately nine hours in duration. G. OUTREACH. ACC, at a minimum, shall provide each subscriber information on the availability of the access channels, production equipment, training, and ACC's address and telephone number through bill inserts or the cable guide. Access programs shall be announced in the cable guide based on reasonable rules for timely submissions. ACC will also advertise programs and access services in newspapers of local circulation. ACC shall conduct facility tours and maintain a speaker's bureau to provide informational presentations to local organizations and institutions. Additional outreach activities will be conducted as described in ACC's proposal. H. GOVERNMENT PROGRAMS. ACC will cablecast the monthly Common Council meetings and not less than two (2) of the five (5) Standing Committees of Council meeting on a rotating monthly basis. I. ACCESS DAMAGE WAIVER POLICY. ACC shall provide access users with the following access waiver damage policy for negligent damage to equipment. Negligent damage shall not include ordinary wear and tear, and mechanical breakdown through causes not the fault of the operator. 10 (i) An annual payment of $15 will reduce the volunteer's total liability for equipment damage and repair to $250 for each individual use of the equipment. (ii) An annual payment of $25 will reduce the volunteer's total liability for equipment damage and repair of $125 for each individual use. J. ORIGINATION POINTS. ACC shall maintain existing dedicated cables to sites for originating local programming. (e.g., City Hall, Ithaca College and Tompkins County Library). During the rebuild, ACC shall install and thereafter maintain dedicated cable or cables to the following additional locations for originating local programming: Ithaca High School; Boynton Junior High School; The Alternative School; Ithaca Youth Bureau; GIAC; and Cornell University. The originationsite at Cornell University shall be selected by Cornell. K. ADVISORY BOARD. ACC shall support the creation and maintenance of an Access Advisory Board, to consist of nine members; three (3) city residents (two to be appointed by the city, one to be appointed by ACC); two (2) non -city residents (one to be appointed by the City, one to be appointed by ACC), two representatives of institutional access users (both to be appointed by the City); and one (1) ACC representative and one (1) city representative. The ACC Representative and city representative will be non-voting members. This board may review access policies but will remain advisory in nature. ACC shall review studio hours and access rules with the Advisory Board on an annual basis. L. Existing Agreements with the City for use of the Cable Communications System, such as the City's fire alarm system, shall be continued by ACC for the term of this Franchise. XIII SUBSCRIBER INFORMATION AND POLICY A. At the time an installation or service agreement is to be signed, ACC shall furnish to each subscriber a simple, but thorough written explanation of all services offered; the fees, charges, terms and conditions of such services; information regarding billing and service calls; complaints; information regarding the availability of parental control devices; and a complete statement of the subscriber's right to privacy in conformance with 47 U.S.C. Section 631. Thereafter, ACC shall provide subscribers with privacy information at least once a year, as required in the Cable Ordinance, and other service related information at any time upon request. 11 B. Employee identification. ACC shall provide a standard identification document to all employees, including employees of subcontractors, who will be in contact with the public. Such documents shall include a telephone number that can be used to, verify identification. In addition, ACC shall use its best efforts to clearly identify all personnel, vehicles, and other major equipment that are operating under the authority of ACC. C. Disconnection. ACC shall have the right to disconnect service from a subscriber for non-payment after seventy-five (75) days. Disconnection shall occur in substantial compliance with the following procedures: 1. At thirty (30) days past due, a reminder shall be printed on the customer's bill. 2. At sixty (60) days past due, a strong reminder, mentioning possible disconnection shall be printed on the customer's bill. 3. After sixty (60) days, additionalattempts will be made to inform subscribers of the billing requirements. • 4. A separate written notice shall be provided between sixty (60) and seventy-five (75) days telling the customer there is a question about his or her account and requesting that the customer call the office. Effortsto reach the customer by phone also shall be continued. 5. If the customer has been reached and still has not paid, efforts to contact the customer to encourage payment shall continue. 6. At seventy five (75) days, the service may be terminated. Billing may stop at this point. The customer shall have another 48 hours to make payment before a truck is dispatched to complete the physical disconnection of the drop. Prior to physical disconnection, the installer must knock on the customer's door and offer one final opportunity for the customer to make payment and avoid disconnection. If the customer makes paymentfollowing the converter shutdown, the customer's service shall be restored immediately. 7. Delinquent accounts shall be held on the books at least one hundred -twenty (120) days past due. During that period, efforts shall be made to contact the customer by phone and letter to encourage payment, return of equipment and reconnection. At one hundred - 12 twenty (120) days, the account.may be turned over to a collection agency. D. Customer Service Standards 1. Requests for repair service shall -be responded to by ACC no later than the end of the next regular business day. 2. Response to outages shall be immediately. 3. ACC shall maintain a person operated 24-hour answering service for repair service. 4. ACC shall complete all requests for installation within one week after receipt of such requests. Reasonable allowances for peak periods associated with the return of the student population in August and September will be made by the City. 5. ACC shall maintain the system to meet all technical requirements of the FCC, the New York State Commission on Cable Television, and if allowable under applicable law, the technical standards included in the Franchise. 6. ACC shall maintain a business office within the City of Ithaca and shall inform customers' of its hours. ACC agrees to extend business hours if necessary to meet the needs of its customers. 7. ACC shall maintain staffing levels and support equipment to assure that telephone inquiries are handled promptly in order to minimize busy signals and hold time. Reasonable allowances for peak periods associated with the arrival of the student population in August and September will be made by the City. 8. ACC shall respond to all written billing "inquiries within one week. 9. ACC will issue a billing credit to any customer affected by a service outage that lasts for more than 24 hours equal to a pro rata share of the customer's monthly bill, but in no case less than 1/30 of the monthly bill. If the City at any time feels that these standards are not being met, the City shall notify ACC in writing and ACC. shall have 30 days to respond to the City's notice. This response will include a reasonable plan to cure the problem, if applicable. Such plan to cure the problem shall be made satisfactory to the City. 13 XIV EQUAL EMPLOYMENT OPPORTUNITY AND AFFIRMATIVE ACTION ACC agrees that it shall not discriminate against any employee or applicant for employment because of race, .color, religion, sex, disability, national origin, age, marital status, or sexual orientation or affectional preference. In the employment of persons, ACC shall fully comply with applicable local, state and federal law, and shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, sex, disability, national origin, age, marital status or sexual orientation or affectional preference. ACC shall take affirmative action to increase the number of women and members of various minority groups to their approximate proportion in the total population of the Franchise area at all levels of employment and to enhance the opportunities for women and members of the various minority groups to advance and win promotions in all categories of employment. XV PERFORMANCE BOND ACC shall provide a performance bond in the amount of $500,000 (five hundred thousand dollars) until construction is completed and shall maintain a performance bond in the amount of $25,000 (twenty-five thousand dollars) for theremaining term of the Franchise. The performance bond shall be provided and regulated in accordance with the Cable Ordinance. The performance bond shall be provided within thirty days of the receipt of final operating authority. XVI- STATE VI-STATE REGULATION ACC shall comply with all statutes, rules, and regulations of the New York State Commission on Cable Television. The terms of this Franchise are subject to the approval of the New York State Commission on Cable Television. XVII FRANCHISE RENEWAL This Franchise may be renewed by the City in accordance with the provisions of the Cable Ordinance. XVIII POLICE POWERS In accepting this Franchise, ACC acknowledges that its rights hereunder are subject to the police powers of the City to adopt and enforce general Ordinances necessary to the safety and welfare of the public, and it agrees to comply with all applicable general laws and Ordinances enacted by the City pursuant to such power, as provided in the Cable Ordinance. XIX FRANCHISE FEE Franchise Fee Payment. ACC shall pay to the City five percent (5%) of. its annual gross revenues during the period of its operation under the Franchise, pursuant to the provisions of the Cable Ordinance. XX RENEWAL EXPENSE REIMBURSEMENT ACC shall reimburse the City for the actual expenses of the renewal process in the amount of These requirements or charges shall not be considered a part of the franchise fee. XXI ADMINISTRATION The Mayor or his/her designee shall be responsible for the continuing administration of this Franchise and the Cable Ordinance. XXII REMEDIES Schedule of Liquidated Damages. Because ACC's failure to comply with certain provisions of this Agreement and the Cable Ordinance will result in injury to the City or to subscribers, and because it will be difficult to estimate the extent of such injury, the City and ACC hereby agree that the liquidated damages and penalties stated in the Cable Ordinance represent both parties' best estimate of the damages resulting from the specified injury, and shall apply, and liability therefore shall accrue from the "date of dispatch" of notice unless otherwise provided XXIII COOPERATION The parties recognize that it is within their mutual best interests for the Cable Communications System to be operated as efficiently as possible in accordance with the requirements set forth in this Agreement and the Cable Ordinance . To achieve 15 6 this, parties agree to cooperate with each other in accordance with the terms and provisions of this Agreement and said Ordinance. Should either pa-rty, believe that the other is not acting timely or reasonably within the confines of applicable regulations and procedures in responding to a request for action, that party shall notify the agents designated for that purpose by the other. The agent will use its best effort to facilitate the particular action requested. XXIV CUMULATIVE PROVISION The rights and remedies reserved to the City by this Agreement and the Cable Ordinance are cumulative and shall be in addition to and not in derogation of any other rights or remedies which the City may have with respect to the subject matter of this Agreement or said Ordinance, and -a waiver thereof at any time shall have no effect on the enforcement of such rights or remedies at a future time. XXV CAPTIONS Captions to sections throughout this Franchise are solely to facilitate the reading and reference to the sections and provisions of the Agreement. Such captions shall not affect the meaning or interpretation of the Agreement. XXVI ACTS OR OMISSIONS OF AFFILIATES During the term of this Agreement, the acts or omissions of its affiliates involved directly or indirectly installation, maintenance or operation system as if the acts or omissions of acts or omissions of ACC. ACC shall be liable for while such affiliates are in the construction, of the cable television such affiliates were the XXVII TIME IS OF THE ESSENCE Time is of the essence in this Agreement. Whenever the agreement shall set forth anytime for an act to be performed by or on behalf of the Grantee, such time shall be deemed of the essence. XXVIII • NO JOINT VENTURE Nothing herein shall be deemed to create a joint venture or principle -agent relationship between the parties, and neither party isauthorized to, nor shall either party act toward third persons or the public in any manner which would indicate any such relationship with the other. XXIX •ENTIRE AGREEMENT This Agreement and all attachments hereto, and the Cable Ordinance and all attachments thereto, as incorporated herein, represent the entire understanding and agreement between the parties hereto with respect to the subject matter hereof, supersede all prior oral negotiations between the parties, and can be amended, supplemented, modified, or changed only as provided in said Ordinance. XXX SEVERABILITY If any section, sentence, paragraph, term or provision of this Ordinance is determined to be illegal, invalid or unconstitutional, by any court of competent jurisdiction upon final adjudication or by any state or federal regulatory agency having jurisdiction thereof, such determination shall have no effect on the validity of any other section, sentence, paragraph, term or provision hereof, all of which will remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. ATTEST:. CITY OF ITHACA, NEW YORK a municipal corporation City Clerk Mayor Witness 17 American Community Cablevision, a Division of American Television and Community Corporation President SEAL Legal Notice PUBLIC NOTICE is hereby given of receipt by the City of Ithaca of a submission of materials from American Community Cablevision in response to the City's Request for Proposal for a Cable Franchise Agreement for the City of Ithaca. Said materials consisting of a 15 -page "formal proposal" and other non -proposed material are on file at the City Clerk's Office at 108 East Green Street for public inspection during business hours 8:30 a.m. 4:30 p.m., Monday through Friday. May S, 1987 H. Matthys Van Cort Director Planning and Development 412 Hook Place Ithaca, •New York 14850 May 21, 1987 City of Ithaca Cable Television Commission 108 E. Green Street Ithaca, New York 14850 Dear Sirs: aECEI M/Y19872 Ithaca, N. Y. In light of the franchise renewal decision you must soon make concerning American Community Cablevision, I would like to mention some concerns of mine related to the operation of the cable system in the City of Ithaca. I believe Ithaca to be a community that cannot receive proper television reception with individual household antennas. We are very much dependent upon a cable system to receive even the most basic television service. The original Ceracche Television Cable system came into being because of the poor broadcast reception available in the City. It therefore concerns me greatly that ACC (and even perhaps the FCC) takes the attitude that Ithaca residents are capable of obtaining viewable television reception without a cable connection. In this regard, cable television in Ithaca is like a public service monopoly, just as the telephone, electricity and natural gas services are. It therefore must be regulated as a public service utility, including specification of basic levels of service required and the costs of those services. It seems ludicrous to me that ACC wants a free hand to decide how much it charges for cable services. It concerns me also that ACC may continue to institute nearly worthless programming on its limited channel space, dropping broadcast stations from nearby cities. _Much has been said in recent years about duplication of programming on the cable because of network affiliations. While there is often duplication during prime time viewing hours, there are many times when stations pre-empt network programming for one reason or another. In addition, programming in non -prime time hours is usually quite different. I believe it would be a serious mistake to limit our selection to only one channel per network. A further consideration for providing our cable system with stations from all neighboring communities is that of local news and local advertising. One subscriber may have family in the Binghamton area and desire to view the local news from that city, while another subscriber may prefer shopping in Syracuse or Rochester and want to see commercials from there, It would not be desirable to leave it up to ACC to decide with which neighboring city we are to become most closely allied. i2 I would like to see our cable system provide a more flexible range of available services. Subscribers could select whichever extra channels they preferred, rather than in predetermined groups. I would like to see our cable system carry all broadcast stations from neighboring cities, including Rochester, even if that meant being charged for additional levels of service. Yours very truly, -)7(0-L-t-C Martin C. Jorgensen DEPARTMENT OF PLANNING & DEVELOPMENT H. MATTHYS VAN CORT, DIRECTOR CITY OF ITHACA 1OB EAST GREEN STREET ITHACA, NEW YORK 14850 MEMORANDUM To: Callista F. Paolangeli City Clerk Ard— From: H. Matthys Van Cort , ice Director, Planning and Development Re: Requested Materials from Rice Associates Date: November 3, 1986 TELEPHONE: 272-1713 CODE 607 Attached is a copy of a letter received from Rice Associates, the cable consultant hired by the city. Would you be able to supply any or all of the requested items? Please let me know at your earliest convenience. HMVC/mc Attachment ,.1151 -co���ci._.���_c\.o "An Equal Opportunity Employer with an Affirmative Action Program" 11' RICE ASSOCIATES RECEIVED OCT 2 7 1986 PUNNING & DEV. October 23, 1986 Mr. H. Matthys Van Cort Director, Planning and Development City of Ithaca 108 East Green Street Ithaca, New York 14850 Dear Thys: We are in the process of assembling the data -necessary to conduct subsequent phases of our analysis. To this end, if the City has the following information please send it to us. If not it would be very helpful if you would request ATC to forward their latest annual: o financial statements for the City of Ithaca;...- uniform thaca;. uniform Cable Commission financial reports;— o state and federal income tax returns;_ o rate table; and — o basic system data including plant miles (aerial and underground), homes passed, average number of subscribers, pay units sold, numbers of additional outlets, remote units, and bulk units. All this information should be available pursuant to paragraph 33 of the franchise agreement. rely -07t Jean Rice President 1000 CONNECTICUT AVENUE NW • WASHINGTON, DC 20036 • TEL: (202) 737-2400 DEPARTMENT OF PLANNING & DEVELOPMENT H. MATTHYS VAN CORT, DIRECTOR CITY OF ITHACA 10B EAST GREEN STREET ITHACA, NEW YORK 14850 • MEMORANDUM To: Cable Franchise Negotiating Committee From: H. M. Van Cort Re: Cable Franchise Committee Meeting Date: May 5, 1987 141 6v . 1771'e?ar 1987 / TELEPHON,. 272-1713 CODE 607 • Z Please find attached a copy of a memo from Ralph Nash to me of May 4, 1987. We can discuss its implications at the next negotiation committee meeting. Please note that the time of the meeting has been changed to 4:00 p.m. on Wednesday, the 13th of May. This will be a meeting at which to discuss recent events and the status of various law suits. On Thursday, May 14 at 9:00 a.m. we will meet with ACC. If you have any comment on the minutes, please let me know at your earliest convenience. It is my intention to ;deliver them to the Clerk's Office where .they will be available for public review on Friday, May. 8, 1987=. HMVC/mc Attachment cc: Ralph W. Nash, Esq. (3 ) 0 ` 7s/I/r7 "An Equal Opportunity Employer with an Affirmative Action Program" OFFICE OF CITY ATTORNEY CITY OF ITHACA. 108 EAST GREEN STREET . ITHACA, NEW YORK 14850 :MEMORANDUM TO: Th ..n art, Planning Director' FROM: Ra Lh ash, City Attorney DATE: Ma '4, 1987 RE: Cable Franchise Committee Meeting OUR FILES: Cable TV - 87 TELEPHONE: 272-1713 CODE 607 This is in response to your question regarding the minutes of this meeting. I do believe that the Committee is a public body subject to the "Open Meetings Law" requirements. Although at this time the whole franchising process appears to be a subject of "proposed, pending or current litigation," and we can accordingly meet in executive session, minutes of any action by the committee should be kept and made available to the public. According to my notes, the following transpired at this meeting of the Committee: 1. The current litigation in Federal DistrictCourt was discussed and the First Amended Complaint and Answer thereto reviewed; 2. The "proposal" by ACC for a franchise, and the subsequent letters qualifying it, were reviewed,.as were the !legal requirements for such a: submission, and the courses of legal action available in response thereto. It was decided unanimously by the Committee members present to give public notice o;f the "formal proposal" received and additional materia_] submitted.: It was also decided unanimously to indicate to ACC .by letter our feeling that the "formal proposal" they offered was legally inadequate ,and to attempt to get a legally adequate proposal before negotiations directly with ACC commence on or about May 14, 1987. 3. The possible need for= additional legal! representation in the litigation -and negotiation process was discussed. "An Equal Opportunity Employer with an Affirmative Action Program" May 4, 1987 Page Two RE: Cable Franchise Committee Meeting. I would suggest that you: circulate any minutes produced to the members present.befor-e making them, public. However, ,it is legally necessary that any 'minutes of an :executive session beavailable to the public within .one week from the date of the executive session, and.I think it would be most:helpful if: minutes were available to Council members -by thier meeting on May 6. RWN:blh cc: John Gutenberger, Mayor Ray Schlather, Alderman CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 DEPARTMENT OF PLANNING & DEVELOPMENT H. MATTHYS VAN CORT, DIRECTOR February 11, 1987 Georgia G fith Manager Amer' an Community Cablevision 519 State Street. haca. NY 14850; Dear Ms. Griffith: The City Clerk.has informed me that you wish to have copies of the materials circulated at the Special Council Meeting on February 9', 1987 Please find attached per your request two: items',, as follows: 1) Summary of the major issues for the RFP Proposal by Rice Associates for a contract amendment Very truly yotrsy, 7et- H. Matthys Van Director Planning and Development Cort HMVC/mc4J Enclosures C. F. Paolangeli City Clerk "An Equal Opportunity Employer with an Affirmative Action Program" TELEPHONE: 272-1713 CODE 607 CITY OF ITHACA 108 EAST GREEN STREET ITHACA. NEW YORK 14850 DEPARTMENT OF PLANNING & DEVELOPMENT H. MATTHYS VAN CORT, DIRECTOR January 27, 197 Jean Rice Rice Associates 10006onnecticut Ave., N. W. Was shington, DC 20036 Dear Jean: TELEPHONE: 272-1713 CODE 607 For your information,, enclosed please find copies of correspondence received from a.cable subscriber, Martin Sampson of 107' Ridgedale Road,regarding billing problems with ACC. Very truly yours, y� H. Matthys. Van Cort Director Planning and Development HMVC/mc 2ej Enclosure cc: Martin Sampson American Community Cablevision "An Equal Opportunity Employer with an Affirmative Action Program" MEMO ACC AMERICAN COMMUNITY CA t VIIION TO 6_) Jam) xy) fr. //7 Rickedok 011. DATE 0Q,Clan LIM ( / /RI J SUBJECT -dear .£n the p yGU (Jete �Ji �'l'0r7� �e /����1 -PGr y-Month� the 3/s� //er/ Gee hgue hAriged yor bItrq fa Ake /3-iti-) or Me %iid/2/h /;6) the ILO' a the .17JeX f 12.2pe2//). Zig larder /OJ to may Oar y fcOr par/y. pa1ineir Mey0 /}17// -1 l ee d P fLffl ger �` off ' ��5. 77yi / .5"��.01.1 / C'firr/ you Through oaf M A214. Then /a/r� /-4 i/r�/ ()II/ 1e �reP //eXf year. 1075e rem; pnymenn my G1�en�on 740o insure i5 yen. .Th nfiVaU Martin W. Sampson 107 Ridgedale Road Ithaca, New York 14850 PAY' TO THE .:,ORDER OF MARTIN W. S MPSON LIC. S01469-2355 -084636-14 • PH. 607.27'-0503 107 RIDGE ALE RD. ITHACA, Y 14850 8.5:C/O 5955; 1,72gc- 191(;- 50-264/213 0. BOX 150 CA, NEW YOR1,751 ()LIARS iisma 1:0 130 64131:0 1 301"? 11 •—wornmamft io q S CITY OF ITHACA Dept. of Planning & Development 108 East Green Street ITHACA, NEW YORK 14850 (607) 272-1713- ----- To City Clerks Office WE ARE SENDING YOU X Attached {4 ❑ Shop drawings ❑ Copy of letter L,Cflt Oo iF V G3laR:SMEITM, DATE August 13, 1986 JOB NO. ATTENTION C. Paolangeli, City Clerk RE: Cable Consultant - information to be distributed of the above mentioned material for distribution to two members of the Cahle Cnmmissinn. P1PasP send this infnrmatjon to: interoffice mail the following items: 0 Plans 0 Samples 0 Specifications O Change order A Consumer Market Survey by Rice Associates and "Information and Communication Technoloqv for the Community" O Prints COPIES DATE NO. DESCRIPTION 2 ea. In accordance with our agreement, enclosed please find copies of the above mentioned material for distribution to two members of the Cahle Cnmmissinn. P1PasP send this infnrmatjon to: Christopher Heegard and Betty Burke. The other Commission members received this information at last night's Commission meeting. Thank you for your assistance. THESE ARE TRANSMITTED as checked below: ❑ For approval ❑ For your use ❑ As requested REMARKS O Approved as submitted ❑ Approved as noted ❑ Returned for corrections ❑ Resubmit ❑ Submit ❑ Return copies for approval copies for distribution corrected prints ❑ For review and comment 0 ❑ FOR BIDS DUE 19 0 PRINTS RETURNED AFTER LOAN TO US C. c"(/ I ) COPY TO PRODUCT 2403 fies% Inc, Groton, Mas 01471. SIGNED: If enclosures are not as noted, kindly notify us at once. H. M. Van Cort .TATE OF NEW YfRx COMMISSION ON CABLE TELEVISION In the Matter of J T!!7:i'?' ,r1„rj. I" RE`EIV ED JUN 11 199 The Rules and Regulations of the Commission on Cable Television, 9 NYCRR Subtitle R Sections 590.70, 590.71 and 590.72 -- Proceeding to adopt procedures for the implementation of the State Environmental Quality Review Act DOCKET NO. 90308 MEMORANDUM AND RESOLUTION ADOPTING RULEMAKING (Issued: May 30, 1986) By a Notice of Proposed Rulemaking issued March 13, 1986, we proposed regulations implementing the State Environmental Quality Review Act (SEQRA). We proposed to adopt Sections 590.70, 590.71 and 590.72 to Subtitle R of 9 NYCRR. These regulations would set forth their purpose, classify types of actions and establish agency procedures by which we will review applications for environmental impact, respectively. We received comments only from the City of New York Department of Environmental Protection (DEP). DEP's concerns are essentially that our proposed Type II list would preclude other: agencies from making different classifications and that alterna- tives suggested by other parties may not be required to undergo the same comprehensive environmental review as the applicant. DEP's concern that it may be precluded by our Type II list is unwarranted. Section 590.71 states that our Type II list of actions supplements those listed in 6 NYCRR 617.13. Section 617.13 clearly states that classification of an action as Type II -2 - by one agency does not bind other agencies. Second, DEP's reading that we would impose a different environmental review standard on •1e.. alternatives suggested by other parties is correct; however, the requirements are more clearly apportioned than DEP notes:'" Section 590.72(c)(2) .requires parties objecting to a project��.to, submit both an alternative and a statement of the envirbnmenta"1',' impact of such alternatives, comparable to the r'equiretent in (c)(1) that applicants submit a 'project description and environ- mental.report. We conclude that the rules iae adopt will allow us 'to r_o implement 6' NYCRR •617, will benefit regulated cable , cdmpani'es iarid the public by setting forth clearly the procedures,'in addition'to those contained in 6 NYCRR 617, to be followed in reviewing . actions to determine their environmental impact., The provisions of Section 202(1) of the State. Administrative Procedure -Act ' and Section 101-a(2) of the Executive Law having been complied with, :the Administrative'OfficW:sFlal•PJ file' with =the Secretary. of Statethe attached resolution 'which adopts 9 NYCRR Subtitle•R Sections 590.70, 590.71 and'590.72. Commissioners Participating: William B. Finneran,`' Chairman;- John A. Gussow, Brian A. Luddy, Theodore E. Mulford, Barbara. T. Rochman, Commissioners . Part 590 Implementation of the State Environmental. Quality Review Act (Statutory Authority: Environmental Conservation Law, Section 8-0113(3)) Sec. 590.70 Purpose 590.71 Types of Actions Section 590.70 Purpose. This part sets forth procedures in addition to those contained.in 6 NYCRR Part 617, which are necessary for the Commission's implementation .of the State Environmental Quality Review Act. The terms used in this::par-t' have the meanings given them in 6 NYCRR Section 617.2, unless the context requires otherwise. Section 590.71 Types of Actions. ' (a) Type I actions (which are more likely to require the preparation of Environmental Impact Statements than those unlisted actions) are listed in 6 NYCRR Section 617.12. Type II actions `.(which have been'•'determined not to have a significant, adverse -ef•fect oti the envirb'nteht:)''a'r`e listed in 6 NYCRR Section 617.13 and in-the'4following'subdivision. Neither new programs nor major changes in priorities with"'r'espec't to policies, regulations and .procedures are included.' (b) "TYie adoption of policies, regulations and procedures'constitutes th .undertaking of a Type II action•'if.it'relates to:" (1) routine administationand management of the Commission's functions, including, but not limited to, 'rules establishing procedures for the orderly conduct of business before. the Commission; -2- (2) practices by cable companies concerning administration and management of cable company functions, including, but not limited to, rules relating to: (i) cable company reports; (ii) the uniform system of accounts; (iii) transfers of assets and/or control; (3) practices by cable companies concerning customer relations, such as, but not limited to, rules governing: (i) technical standards and requirements; (ii) complaint procedures; (iii) billing practices; (iv) limitation of liability; and (v) landlord -tenant relationships; (4) activities by cable companies concerning testinE ::inspection, repair and maintenance of existing facilities; (5) safety measures for design, testing, operation and :maintenance of cable facilities, including rules governing the reporting of signal levels and leakage. (0):: :Construction of cable facilities which is limited to. installations on existing utility facilities is a Type II action, unless such construction is a Type I action as defined in 6 NYCRR Section 617.12. Section 590.72 Procedure. (a) Each application for a certificate of confirmation should be accompanied by a report of the environmental impact of the proposed approval. Such report shall be in the form set forth in 6 NYCRR 617.19. (b) If the Commission directs the preparation of an environmental impact statement, the statement shall conform with the requirements set forth in 6 NYCRR 617.8. (c)(1) The responsibility for preparation of the environ mental reports shall be with the applicant for approval. . (2) Notwithstanding the requirement that the applicant prepare a report on environmental impact, each party proposing an alternative for adoption by the Commission shall, at the time a proposal is submitted, present a statement of its views as to the likely environmental impact of the alternative it has proposed. • STATE OF NEW YORK COMMISSION ON CABLE TELEVISION RESOLUTION BY THE COMMISSION Statutory Authority: Environmental Conservation Law Section 8-0113(3) CASE: In Matter of the Rules and Regulations of the Commission on Cable Television, 9 NYCRR Subtitle R Sections 590.70, 590.71 and 590.72 -- Proceeding to adopt procedures for the implementation of the State Environmental Quality • Review Act. At a session of the Commission on Cable Television held in. the City of Albany on May 7, 1986, the Commission, by unanimous vote of its members present, RESOLYE D: 1. That the provisions of Section 202(1) of the State Administrative Procedure Act and Section 101-a(2) of the Executive Law having been complied .with, Sections 590.70, 590.71 and 590.72 are added to Title 9 Subtitle R of the Official Compilation of the Codes, Rules and Regulations of the State'of New York, effective upon filing of this Resolution with the Secretary of State. 2. That the Administrative Officer is directed to file this Resolution with the Secretary of State. CEw ED JUN 11 196 . STATE OF NEW YORK 86-077 COMMISSION.ON CABLE TELEVISION In the Matter of Adoption of Rules Concerning Notice ) of Change in Rates ) MEMORANDUM AND RESOLUTION ADOPTING RULEMAKING (Issued: May 30, 1986) By Notice of Proposed Rulemaking released November 27, 1985,:we proposed regulations concerning the notification by cable television companies of changes in rates for cable television. service. The Notice of Proposed Rulemaking was the second such Notice issued in this docket.* Nine parties filed comments in response to the Notice_ including the Board of Estimate of the City of Nei York and the New York State Cable Television Association ("NYSCTA") which also filed comments in response to the First Notice. Reply comments were received from Cablevision Company.. complete list of parties filing comments is annexed hereto.. Initially, we note that the rule adopted does include ,certain changes from the rule as proposed which changes we believe clarify the scope and effect of the rule. In this regard, we also note that we are renumbering the proposed rule from Section 590.80 to Section 590.69 in order to clarify that the rule is part of that section of 9 NYCRR Part 590 which pertains to Billing Practices of Cable Television Companies. DOCKET NO. 90152-A Section 590.69(a) will require a cable television company to`provide written notice of a rate increase including the amount and effective date thereof. Section 590.69(b) describes the parties entitled to said notice and distinguishes between the notice to be served upon subscribers and the notice to be served .upon the franchising municipality and the Commission. * On,April 12, 1985, the Commission released a Notice of Proposed Rulemaking and Notice of Inquiry in this docket, hereinafter referred to as "First Notice." Eleven parties filed comments in response to the First Notice. Although the Commission did not adopt. regulations pursuant to the First Notice, various comments were incorporated into the proposed rule released November 27, 1985.. Although our action. today is based upon the more recent Notice -of Proposed Rulemaking as published in the State Register, we wish to make clear that we have considered all comments received in this.. - docket since the issuance of the First Notice on April 12, 1985.. A complete list of the parties filing comments in response to the First Notice is annexed hereto. -2- Section 590.69(b)(1) provides that said notice shall"be served upon subscribers at least ten (10) days prior to the effective date of an increase. In this regard, we note that we have deleted language from the proposed rule which would have required said notice to be contained "within the billing cycle immediately.'.'-' preceding the effective date. . ." This change was made ori the' basis of comments from the cable television industry which ex- pressed concern that the proposed language was too inflexible. Also, in this regard, Cablevision Company filed reply comments in which it sought clarification that the notice was required to be served only upon subscribers affected by the particular rate increase at issue. We believe that the language of the rule as:. adopted clarifies that the company must serve notice only On a subscriber who will be subject to:the proposed rate increase.. Section 590.69(b)(2) provides for written notice bya'cable company to the franchising municipality and the Commission "no later than thirty (30) days after the effective .date of the 'rate.,. change." Comments filed by the Administrative Regulations Review Commission of the New York State Assembly expressed concern,that' the proposed language might be construed to require the service of notice on municipalities and the Commission prior to theeffective date and thereby appear to be an.at.tempt.to.regulate rates in contravention of provisions of the Cable Communications Policy Act of 1984.* We did not intend the proposed rule to require that . cable companies serve notice of increases upon municipalities and the Commission in advance of the effective dateof the rate '' increase. We believe that the modification in Section '` 590.69(b)(2) eliminates any doubt on this issue. Compliance with subsection (b) (2) can be met by the service. of such .notice at any time prior to the expirationof thirty days.. after. the effec- tive date of the rate increase. Here again, .the ;effect of ;:the ' change is to establish a "last day for compliance" without other- wise limiting the cable television company:.• • • Section 590.69(c) provides that a cable television company shall serve upon the franchising municipality and the Commission written notice of any increase in rates since the effective date of the Cable Communications Policy Act of 1984. The notice is to. be served within thirty days of the effective date of the rule. * By way of contrast, comments filed by various municipalities. throughout the State urge the Commission (1) to increase the notice period fromten to thirtyand, in one. case, to ninety days and (2) to require that prior notice also be served upon the municipality. The City of Cortland, for example, "observes that, the cable television company. ...[there]. . .has recently agreed"' to give 30 -day notice of any rate: increase or. programming.. change." - ? -3 - This requirement applies.to past rate increases. The purpose of the rule is to insure that the municipality and the Commission have notice of changes in rates since December 29, 1984 which were not implemented pursuant to amendments of the franchise and approval thereof by the Commission. Section 590.69(d) is designed to afford protection to a subscriber who chooses to cancel or reduce cable television service upon the occasion of a rate increase. Specifically, this subsection permits such a subscriber to notify the cable company of his decision to cancel or reduce service within thirty days of the effective date of the rate increase without incurring liability for the increased amount. Section 590.69(e) is a new provision which confirms that the notice requirement does not apply to pay-per-view programs for which the concept of a rate increase seems inappropriate. This provision was added in response to comments received from NYSCTA. We should also note the receipt of comments challenging our authority to promulgate any rule in this area. For example, Adams -Russell Cable Services -New York, Inc. ("Adams -Russell") and Commonwealth Cable Systems of New York, Inc. ("Commonwealth Cable") have submitted comments asserting that any notice require- ment constitutes an unlawful burden on the discretion of cable operators to change rates under the Cable Communications Policy Act of 1981 ("Cable Act").* Both Adams -Russell and Commonwealth Cable contend that the intent of the Cable Act, including specifically Section 623 thereof, was to free cable television systems from any regulation of rates where effective competition exists. Each company equates a notice requirement with rate. regulation. We disagree. Section 632 of the Cable Act provides at subsection (a), that a franchising authority may require provisions for enforce- ment of customer service requirements and at subsection (c) that "En]othing in this title shall be construed to prohibit any State or any franchising authority from enacting or enforcing any con- sumer protection law, to the extent not inconsistent with this title." In the Report of the House Committee on Energy and * The comments of Adams -Russell were submitted in response to the First Notice. Some of the more specific objections made by Adams - Russell were addressed in the revisions to the rule as proposed in the current Notice of Proposed Rulemaking. Originally, the rule would have required thirty day notice to subscribers, prior notice to the franchising municipalities and the Commission and newspaper publication of a more detailed notice. These provisions have since been modified or deleted altogether. -4 - Commerce at page 79, it is stated in respect to Section 632 that customer service requirements mean generally "the direct business relation between a cable operator and a subscriber." The Report continues as follows: "customer service requirements include requirements related to interruption of service; disconnection; rebates and credits. to consumers; deadlines to respond to consumer requests or complaints; the location of a cable operator's consumer service offices; and the provision to customers (or.... potential customers) of information on billing or services." Section 626 of the Cable Act relative to franchise re- newals outlines a procedure for renewal which may be invoked at the election of either the franchisee or the franchising authority. The statute identifies substantive areas that may be reviewed in connection with a determination whether or not to renew the franchise. Under certain circumstances, a formal ad- ministrative proceeding may be invoked wherein the franchising authority may consider "the quality of the operator service, including signal quality, response to consumer complaints, and 'billing practices . . . ." We have concluded that a rule requiring prior notice to. cable subscribers which does not subject the amount of the rate•to any review is•a reasonable customer service requirement, i.e.,. consumer protection measure, within the Cable Act. We also be- lieve it constitutes a billing practice. We note further that. such requirement is not unrelated to the obligation of the Commission and franchising municipalities to insure that ratesf,or cable service are non-discriminatory (Section 623(f)) and the statutory right of the Commission and franchising municipalities to collect franchise fees from a cable television operators (Sec- tion 622). Finally, we note the lack of any contention by any " party that some prior notice of a change in rates is required to bind a subscriber to liability for such rate. In sum, we conclude that the rules we adopt will benefit both cable companies and subscribers by setting forth clearly reasonable procedures for notice to subscribers of changes in. rates. The provisions of Section 202(1) of the State Administra- tive Procedure Act and Section 101-a(2) of the Executive Law having been complied with, the Administrative Officer shall file with the Secretary of State the attached Resolution which adopts 9 NYCRR Subtitle R Section 590.69(a) through (e). Commissioners Participating: William B. Finneran, Chairman; John A. Gussow, Brian A. Luddy, Theodore E. Mulford, Barbara T. Rochman, Commissioners. STATE OF NEW YORK COMMISSION ON CABLE TELEVISION RESOLUTION BY THE COMMISSION:. Statutory Authority: Article 28 Executive'Law Sections 815.2(d) and 816 CASE: Docket No. 90152 -A -Adoption of Rules Concerning Notice of Change in Rates At a session of the Commission on Cable Television held in the Cityof Albany on February 4 1986, the Commission, by unanimous vote of its members present, RESOLYE p: 1. That the provisions of Section 202(1) of the State Administrative Procedure Act and Section 101-a(2) of the Executive Law having been complied with, Sections 590.69(e), (b), (c), (d), and (e) are added to Title 9 Subtitle R of the Official Compilation of the Codes, Rules and Regulations of the State of New York, effective twenty-one (21) days after the filing of this Resolution with the Secretary of State. 2. That the Administrative Office is directed to file this Resolution with the Secretary of State. Section 590.69 Notice Requirements for Increases in Cable Television Rates and Charges. (a) Every cable television company shall provide notice of an increase in.a rate or charge for any cable television service. The notice shall be in writing and shall specify the service or services affected, the .new .: rate, including the amount of the increase, and the effective date thereof. (b) Notice shallbe provided as follows: (1) to subscribers affected by the rate increase at least ten (10) days prior to the effective date of such increase; and (2) to the 'franchising municipality .and the commission no later than thirty (30) days after the effective `date ofthe 'ra.te. change. T; (c). Every cable television company which has increased rates pursuant to Section 623 of the Cable Communications Policy Act of 1984 prior to the effective date hereof shall serve .7 written notice of any such increase upon the franchising municipality and the commission .: within thirty (30) days of the effective, date of this section. (d) In any case where a subscriber•requests.::' cancellation or reduction of service within thirty (30) days" of the effective date 'of''a rate increase for such service, the liability of the subscriber for service receivedafter.: the effective date of the rate increase until the cancellation or reduction of service, shall be determined in accordance with the rates in effect prior to such increase. (e) This section shall not apply to pay per view programming. l OFFICE OF MAYOR MEMO TO: CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 Common Council Members City's Cable Commission Thys VanCort, Director of the Planing and & Dev. Dept. ilivn FROM: Mayor John C. Gutenberger DATE: May 21, 1986 SUBJECT: ACC Francise Renewal Process Attached hereto please find a copy of a memorandum from the City Attorney, dated May 19, 1986, in regard to the above entitled matter for your attention. ATTACH. "An Equal Opportunity Employer with an Affirmative Action Program" E: 272-1713 CODE 607 OFFICE OF CITY ATTORNEY CITY OF ITHAGA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 MEMORANDUM TO: Jo u nberger, Mayor FROM: Rat 9. ash, City Attorney a� DATE: May,' 9, 1986 RE: ACC FRANCISE RENEWAL PROCESS RECEIVED MAY 21 19 TELEPHONE: 272-1713 CODE 607 I have reviewed ACC's letter of May 9, 1986. I have also reviewed the resolution of Common Council adopted in February, 1985, relative to this matter. The resolution provides that the Ithaca City Cable Cullunission was delegated the authority to conduct necessary hearings "and make findings of fact as appropriate with subsequent and timely recommendation to this Council." The City Attorney was also requested to advise the Cable Commission in its duties. I do not think that it necessarily follows from the above language that Council directed the Commission to make a public report or do other than make recommendations to it. If Council wants a public report it can certainly request one. The requirements of the Cable Communications Act of 1984 are another matter. I will investigate the requirement,if any,of a public report after the public hearings thereunder. Again, politically a public report may be desirable regardless of legal necessities. RWN:bw "An Equal Opportunity Employer with an Affirmative Action Program" DEPAR TMENT Of PLANNING & DEVELOPMENT H. MATTHYS VAN CORT, DIRECTOR To: Staff From: H. M. Van Cort Re: Date: CITY OF ITHACA 108 EAST GREEN STREET ITHACA. NEW YORK 14850 MEMORANDUM Rice Associates Phone Survey April 22, 1986 TELEPHONE: 272-1713 CODE 607 As some of you may know, Rice Associates will be doing a telephone survey of some 400 households in the City of Ithaca to investigate certain questions regarding the cable service in the City of, Ithaca; To do so they will need tohaveuse of eight telephone lines in our office during the hours of 5:00 to 9:00 p.m. on May 19 through 23, 1986. This will require use.of virtually every phone in the office. I realize that this is -an inconvenience for you but I hope that we can somehow accommodate this request. It will require that all the desks be cleared enough so that the phone could be used and an interviewer could use desk space to write. If you feel for some reason that your desk cannot be a part of the "great phone-in", please let me know at your earliest convenience and we will make other arrangements. Thank you very much for your cooperation in this matter. HMVC/mc Ar, f ip,AI ()ppm! ly 6lnployxr with All Alhrmnlrvr ACI,on Program OFFICE OF MAYOR MEMO TO: CITY OF ITHAC 106 EAST GREEN STREET ITHACA, NEW YORK 14850 ./ REGEIK MAY 141986 12 CITY CLERIC'S OFFICE — Ithaca, II. Y. •Co PHONE: 272-1713 CODE 607 Mr. Robert Fletcher, Chair of the Cable Colmmission Mr.. Raymond Schlather, Chair of;;the Charter and Ordinance Comm. Mr. Ralph Nash, City Attorney rG(.o FROM: Mayor John C. Gutenberger DATE: May 13, 1986 SUBJECT: Review performance of ACC under the current franchise and to explore the City's future cable -related needs and interests Attached hereto please find a copy of a letter received today from Ms. Georgia Griffith, General Manager in regard to the above entitled matter for your attention, and response to me. Thank you. ATTACH. "An Equal Opportunity Employer with an Affirmative Action Program" • . ,..uwr. .cam:. -,.e.. i ..�.a ,....�. AMERICAN COMMUNITY CABLEVISION May 9, 1986 Mayor John Guttenberger City of Ithaca 108 E. Green St. Ithaca, NY 14850 Dear Mayor Guttenberger: !!h CE1 1.:.1? ; > x As you know, the City of Ithaca and American Community Cablevision .have been involved in a series of public meetings intended to review the performance of ACC under the current franchise and to explore the City's future cable -related needs and interests. These meetings are required as part of the refranchising process by the Cable Communications Act of 1984 and were officially designated by Common Council to meet those requirements in a resolution passed in February 1985. That resolution directed the City Cable Commission to conduct the meetings on behalf of Common Council and also directed the cable commission to file a report with Common Council at the conclusion of the meetings. It was our understanding that this report would be a public document, one that would be available not only to ACC but to the citizens of Ithaca as well. At the April 8, 1986 Cable Commission meeting, the Commission indicated that it would not be submitting its findings to Common Council, as directed by resolution, but would instead be directing its report to Jean Rice Associates. The Commission also indicated that the report would not be made available to the public. The decision to keep the Cable Commission's report from the public violates both the letter and the spirit of the Cable Act, as well as directly violating Council's own directives. The Cable Act specifically requires that the refranchising process be open to the public at every stage. Any report prepared in support of the refranchising process, particularily a report generated through meetings held as directed by the Cable Act, should therefore be made available to the public. 519 West State Street Ithaca, New York 14850 607-272-3456 I am concerned about the decision to withhold this report from the public for two reasons. First, any individual or group who has participated in the public commentary should have the opportunity to see that his or her viewpoints have been fairly represented by the author(s) of the report. Second, the report itself might generate further public comment on the future cable - related needs and interests of the City, input which has been sorely lacking during the past six months. I hope that you will take appropiate steps to see that this report is made available to the citizens of Ithaca. The information upon which the report is based is public information; the summary and interpretation should also be made public. Sincerely, Georgia Griffith General Manager cc: Mr. Robert Hines, Esquire Ithaca Cable Commission Ithaca Common Council GG/nwg STATE OF -NEW YORK COMMISSION ON CABLE TELEVISION 86-023-A In the Matter of The Rules and Regulations of the Commission ) on Cable Television, 9 NYCRR Subtitle R( ) DOCKET NO. 90308 Sections -590.70, .590-.71 and 590.72 -- )- Proceeding to adopt procedures for the ) implementation of the State Environmental Quality Review Act ) NOTICE. OF HEARING (Issued: April 10, 1986) On March 13, 1986, the Commission issued a Notice of . Proposed Rulemaking in this docket. Written comments were invited and may be submitted through April 25,. 1986. The Notice of Proposed Rulemaking also invited comments to be presented .at a hearing to be announced. PLEASE TAKE NOTICE that a hearing will be conducted pursuant to Section 8-0113(3) of the Environmental Conservation Law onthe'rules proposed herein at the offices of the Commission on Cable Television, Corning_Tower,.21st F1oor,,.Empire State Plaza;_ Albany_,, New -York. at 10 a.m. on _April _ 28, 1.986-. Persons wishing to present oral comments, are invited to appear. Inquiries regarding this:matter may be directed,to William ,F; Huff, Administrative Officer,. at 518..474-4993; or `Jaclyn A. Brilling, Deputy Counsel,. at 518-7474=4223. OFFICE OF MAYOR MEMO TO: CITY OF ITHACA 1 OB EAST GREEN STREET ITHACA, NEW YORK 14850 111 L `= geR2 9 7985 .y £LBMao, N's Y FFVC9 TELEPHONE: 272-1713 CODE 607 Callista Paolangeli, City Clerk Raymond Schlather, Chair, Charter and Ordinance Conim Robert Fletcher, Chair, City's Cable Commission FROM: Mayor John C. Gutenberger DATE: April 28, 1986 SUBJECT: Notice of Hearing - State of New York Commission on Cable Television Minimum standards for designation and use of channel capacity for public education and governmental use Attached hereto please find a copy of the above entitled notice for your attention. ATTACH. "An Equal Opportunity Employer with an Affirmative Action Program" 85-279-D STATE OF NEW YORK COMMISSION ON CABLE TELEVISION RECEIVED APR 28 198 In the Matter of Minimum Standards for the Designation ) DOCKET NO. 90174-A-2 and Use of Channel Capacity for Public,) Educational and Governmental Use NOTICE OF HEARING (Issued: April 24, 1986) On December 19, 1985, the Commission issued a Notice of Proposed Rulemaking in this docket. Written comments were invited and a number of comments have been received. The Commission has now determined to conduct a public hearing. PLEASE TAKE NOTICE that a hearing will be conducted .on the rules proposed herein at the offices of the Commission on Cable Television, Empire State Plaza, Corning Tower Building, 21st Floor, Albany, New York at 1:00 p.m. on May 6, 1986. Persons wishing to present oral comments are invited to appear. Inquiries regarding this matter may be directed to William F. Huff, Administrative Officer at 518-474-4993 or Steven A. Shave at 518-474-2212. OFFICE OF MAYOR ?f! �llil ®ra po vr` fj�� f oll©© gi�f'1 1 ) ti CITY OF ITHACA 1.08 EAST GREEN STREET ITHACA, NEW YORK 14850 • • .TELEPHON 4472-1713 CODE 607 MEMO TO: Mrs. Callista Paolan.geli', City Clerk Mr. Raymond Schlather, Chair, Charter and Ordinance Comm. Mr. Robert Fletcher, Chair, City's Cable Comm. FROM: Mayor John .0 C. Gutenberger DATE: April 22, 1986 SUBJECT: Notice of Hearing - State of New York Cram mission on Cable Television - Docket No. 90308 Attached hereto please find the above entitled notice of hearing for your information and posting, if appropriate. ATTACH. "An Equal Opportunity Employer with an Affirmative Action Program" CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 DEPARTMENT OF TELEPHONE: 272-1713 PLANNING & DEVELOPMENT CODE 607 H. MATTHYS VAN CORT, DIRECTOR MEMORANDUM To: Common Council Members e.thl From: H. Matthys Van Cort ?l.� Re: Visit of Jean Rice, Cable Consultant Date: March 18, 1986 Jean Rice, Cable Consultant from Washington, DC, will be in Ithaca March 24-25, 1986. She has asked us to schedule meetings with various groups and individuals as she begins to assimilate information for her contract work. One such meeting will be held Monday, March 24, 1986, 7:30 p.m., Council Chambers with the TV Action Group. David Lytel has asked me to inform you of this meeting and to invite you to attend. If you have questions, please give me a call. HMVC/mc "An Equal Opportunity Employer with an Affirmative Action Pro 7, CI11'Y DF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 1 44350 OFFICE OF MAYOR John C. Gutenberger MEMO TO: ��----ate TELEPHONE. 272-17 CODE 607 Mr. Raymond Schlather, Chair, C & 0 Comm. Mr. Joseph Rundle, City Clerk Mr. Robert Fletcher, Chair of the Cable Comm. FROM: Mayor John C. Gutenberger DATE: December 6, 1985 SUBJECT: State of New York- Commission on Cable Television - Adoption of Rules Concerning Notice of Change in Rates - Erratum Notice Docket No. 90152-A Attached hereto please find the above entitled matter :for your attention. ATTACH. "An Equal Opportunity Employer with an Alfirrnative Action Program" STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of 85--247-A Adoption of Rules Concerning ) DOCKET NO. 90152-A Notice of Change in Rates ERRATUM NOTICE (Released: December 4, 1985) On November 27, 1985 the Commission released Order No. 85-247 entitled "Notice of Proposed Rulemaking" in this docket. Please be advised that comments on the proposed rule may be filed not later than January 6, 1986 and replies to initial comments may be filed not later than January 20, 1986. 85-247 STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of Adoption of Rules Concerning Notice of Change in Rates ) DOCKET NO. 90152-A NOTICE OF PROPOSED RULEMAKING '(Adopted: November 13, 1985 ; Released: November 27, 1985) PLEASE TAKE NOTICE that the Commission proposes to add to its rules a new Section 590.80 entitled, "Notice Requirements for Changes in Rates and Charges." The effect of the proposed rule is. to require cable television companies to provide subscribers and other interested parties with timely and adequate notice of any change in rates for cable television service. The subject matter of the proposed rule is identical to that proposed in Commission Order No. 85-054, released April 12, 1985, entitled "Notice of Proposed Rulemaking and Notice of Inquiry." As a result 'of our earlier inquiry and the comments received therefrom, the Commission has modified its proposed rule to a significant extent and now seeks further comments from interested parties on the proposed rule, as revised herein. Eleven parties filed comments in response to our earlier Notice in this docket number.* We shall forego a review of the substance of such comments until such time as we issue an order closing this docket. To some degree our revised rule reflects certain comments received, but in general the thrust of the proposed rule remains the same. Parties who have already submitted comments should not feel compelled to resubmit comments on the same points made *Parties filing comments: Town of Rochester,by its attorney; Towns of Genesee Falls and Castile," by their attorneys; Town of Collins, by its attorney; Town of Greenfield, by its attorney; Town of Greece, by its Assistant to the Supervisor; Village of Sag Harbor, by its Mayor; Village of Huntington Bay, by its attorney; Dept. of Consumer Affairs of the City of New York; Bureau of Franchises of the Board of Estimate of the City of New York; Adams -Russell Cable Services -New York, Inc., by its attorneys; New York State Cable Television Association -2 - earlier, but are free to comment on any aspect of the revised rule. Comments are invited from any party regardless of whether comments were submitted earlier or not. .Until recently, rates for non -premium cable television service could be changed only by amendment of the franchise (subject to Commission approval) or by Commission action pursuant to Section 825 of the Executive Law. The Cable Communications Policy Act of 1984 (Cable Act) which became effective December 29, 1984 now permits a cable television company, in certain instances, to increase its rates for basic service without the approval either of the municipality or this Commission. Other rates and charges are also effected by the Cable Act. Pertinent sections of the Cable Act are set forth on separate pages at the end of this order. Although the Cable Act has an immediate and direct effect upon the traditional rate -setting process, it does not preempt fundamental efforts by this Commission to enhance consumer awareness or to insure consumer protection (Section 623 of the Cable Act). Section 623(f) of the statute also empowers both the municipality and the Commission to prohibit discrimination among cable television subscribers consistent with Section 825 of the Executive Law. Moreover, we anticipate that cable television subscribers will continue to contact their local elected officials and this Commission with questions and complaints about cable television service, including rates and billing matters. Accordingly, we have determined to propose a rule whereby every cable television company intending to modify rates and charges for cable television service will be required to provide subscribers with specific notice in advance of such proposed change, and also to file notice of rate changes with both the municipality and this Commission. Section 595.1(f) of our rules currently requires a cable television franchise to include a provision requiring the franchisee to provide annual notice to subscribers of the procedure for reporting and resolving complaints. Section 590.62 of our rules requires every cable television company to provide timely notice to subscribers of its billing practices and payment requirements. The rule also requires the company to file with the Commission a copy of such billing practices and billing requirements. We believe that the notice proposed herein is consistent with the aforementioned existing notice requirements. Certainly, subscribers should have sufficient notice of the price for cable service in advance so that they may make timely, informed decisions concerning the service or services to -3 - be purchased. We, therefore, propose that notice should be provided to subscribers during the billing cycle immediately preceding the effective date of any rate change and, in no event, less than ten (10) days prior to the effective date of the rate change. Our experience suggests that in most cases this notice requirement will not cause cable television companies any additional action.as such notice is generally provided during such .billing cycle. It is also necessary for municipal officials and this Commission to have current information concerning all rates for cable television service including any increases. Such informa- tion is essential to the fulfillment of obligations imposed by Section 623(f) of the Cable Act and Section 825 of the Executive Law. The proposed notice should be sufficiently detailed so as to identify each and every rate affected, the amount of any increase and the new rate or charge. Notice is also required where any increase results from a negotiated or prescribed rate. As noted,.the Cable Act became effective December 29, 1984. It appears that a number of cable television companies have already increased rates pursuant to Section 623 of the Cable Act. Consistent with the underlying purpose of the proposed rule, we shall require any cable company which has already implemented a unilateral rate increase to serve a formal, written notice of the amount and effect thereof upon the municipality and this Commission if it has not already done so. We would ask that such notice be given within thirty (30) days of the adoption of the proposed rule. We are also proposing a provision to ensure that subscribers are liable for service received at the former rate, when cancellation is requested within 30 days of the effective date of a rate increase for such service. We believe such provision will provide a standard of certainty as to what the applicable rate should be and thereby eliminate potential mis- understandings between subscribers and operators. The proposed rule is attached hereto. This rulemaking does not constitute an attempt to require prior approval by municipalities or this Commission of rates or charges deregulated by Section 623. Rather, the proposed rule is designed merely to insure that subscribers. receive advance notice of the rates to be charged for all levels of cable television service and that municipal officials and this Commission also receive notice of any change in rates, following implementation thereof. The Commission invites comments from interested parties on the proposed rule and the issue of notification generally. Initial comments in this proceeding should be submitted to the Commission no later than December 27, 1985; comments in reply to initial comments should be submitted no later than January 17, 1986. The statutory authority for this proposed rulemaking is found in Sections 815 and 816 of the Executive Law. THE COMMISSION ORDERS: That the proposed rule, regulatory impact statement and regulatory flexibility statement be submitted to the Secretary of State for publication and to other appropriate officials in accordance with.the State Administrative Procedure Act and the Executive Law. Commissioners Participating: William B. Finneran, Chairman; Brian A. Luddy, Theodore E. Mulford, Barbara T. Rothman, Commissioners. Addendum Pertinent Sectioi of Cable Act *Section 623(a) of the Cable Act limits the regulation of "rates for the provision of cable service. . ." by federal, state and local goverments only "to the extent provided under this section." Subsection (c) provides as follows: "(c) In the case of any cable system for which a franchise has been granted on or before the -effec- tive date of this title, until the end of the 2 -year period beginning on such effective date, the fran- chising authority may, to the extent provided in the franchise -- (1) regulate the rates for the provision of basic cable service, including multiple tiers of basic cable service; (2) requite the provision of any service tier provided without charge (disregarding any in- stallation or rental charge for equipment neces- sary for receipt of such tier); or (3) regulate rates for the initial installation or the rental of 1 set of minimum equipment which is necessary for the subscriber's receipt of basic cable service." Subsection (e)(1) further provides: "(e)(1) In addition to any other rate increase which is subject to the approval of a franchising authority, any rate subject to regulation pursuant to this section may be increased after the effective date of this title at the discretion of the cable operator by an amount not to exceed 5 percent per year if the franchise (as in effect on the effective date of this title) does not specify a fixed rate or rates for basic service for a specified period or periods which would be exceeded if such in- crease took effect." Subsection (f) provides that: "(f) Nothing in this title shall be construed as pro- hibiting any Federal agency, State, or franchising authority from-- Addendum - Page 2 (1) prohibiting discrimination among customers of basic cable service; or (2) requiring and regulating the installation or rental of equipment which facilitates the reception of basic cable service by hearing. impaired indiv- iduals." PROPOSED RULE Section 590.80. Notice Requirements for Increases in Cable Television Rates and Charges. (a) Every cable television company shall provide notice of an increase in a rate or charge for any cable television service. The notice shall be in writing and shall specify the service or services affected, the new rate, including the amount of the increase, and the effective date thereof. (b) Notice shall be provided as follows: '(1) to subscribers within the billing cycle immediately preceding the effec- tive date of the rate change but in no event less than ten (10) days prior to the effective date of the rate change; (2) to the franchising municipality and the Commission within thirty (30) days of the effective date of the rate change. (c) Every cable television company which has increased rates pursuant to Section 623 of the Cable Communications Policy Act of 1984 prior to the effective date hereof shall provide written notice of any such increase upon the franchising municipality and the Commission within thirty (30) days of the effective date of this section. (d) In any case where a subscriber requests cancellation or reductionof service within thirty (30) days of the effective date ofa rate increase for such service, the liability of the subscriber for service received from the effective date of the rate increase until the cancellation or reduction of service shall be determined in accordance with the rates in effect prior to such increase. JAN 2 1985 Certificate of Insurance THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE IS NOT AN INSURANCE POLICY AND DOES NOT AMEND, EXTEND, OR ALTER THE COVERAGE AFFORDED BY THE POLICIES LISTED BELOW. ISSUED ON BEHALF OF: AMERICAN COMMUNITY CABLEVISION PThis is to Certify that TH IBOX 519 THACA, NEW YORK 14850 TAMERICAN TELEVISION AND COMMUNICATIONS CORP.I Name and AND ALL SUBSIDIARIES AND AFFILIATED COMPANIES addressof 160 INVERNESS DRIVE WEST Insured. 'INGLEWOOD, COLORADO 80112 J LIBERTY MUTUAL ,ann W M Errs cors, • Lman wruu ruts i.srucl COMwn . eonw is, at the date of this certificate, insured by the Company under the policy(ies) listed below. The insurance afforded by the listed policy(ies) is subject to all their terms, exclusions and conditions and is not altered by any requirement, term or condition of any contract or other document with respect to which this certificate may be issued. TYPE OF POLICY EXPIRATION DATE POLICY -NUMBER LIMITS OF LIABILITY WORKERS' COMPENSATION 1/1/86 1/1/86: 1/1/86 -WC1-621-004222-035 -- k'C2-b21-004222025-- WC2-621-004222-015 COVERAGE AFFORDED UNDER W.C. LAW OF FOLLOWING STATES MASSACHUSETTS & NEW JERSEY CALIFORNIA:--- ALL OTHER STATES EXCEPT STATE FUND STATES LIMIT OF LIABILITY -COV B (Indicate Limit for each state) $500-,000- 500000`COMPENSATION MARITIME COVERAGE -FOLLOWING STATES LIMIT OF LIABILITY MARITIME COVERAGE GENERAL LIABILITY coMPREHENSIVE 4 FORM 1/1/86 - LG1-621-004222-045 BODILY INJURY . PROPERTY DAMAGE - EACHEACH $ OCCURRENCE $ AGGREGATE $ OCCURRENCE $ AGGREGATE ❑ SCHEDULE FORM F+ PRODUCTS COT -ONS INDEPENDENT CON. COMBINED SINGLE LIMIT BODILY INJURY AND PROPERTY DAMAGE $ 1,000,000 EACH OCCURRENCE $ 1,000,000 AGGREGATE 55 TORSTPRO/ CONT AC- 55 L ABILRITY UAL ❑' C1 Q Q � `; OWNED 1/1/86 1/1/86 AE2-621-004222-0656 AS1-621 004222-055 (�LT.T. OTHER STATES) $ 1,000,000 EACH ACCIDENT -SINGLE LIMIT-B.I. AND P.D. COMBINED r NON -OWNED $ EACH PERSON EACH ACCIDENT $ OR OCCURRENCE EACH ACCIDENT $ OR OCCURRENCE L•r � HIRED I OTHER LOCATION(S) OF OPERATIONS & JOB # (If Applicable) DESCRIPTION OF OPERATIONS: PER CABLE TELEVISION FRANCHISE AGREEMENT ALL OPERATIONS OF THE NAMED INSURED. NOTICE OF CANCELLATION: (NOT APPLICABLE UNLESS A NUMBER OF DAYS IS ENTERED BELOW). BEFORE THE STATED EXPIRATION DATE THE COMPANY WILL NOT CANCEL OR REDUCE THE INSURANCE AFFORDED UNDER THE ABOVE POLICIES UNTIL AT LEAST-3-0—DAYS NOTICE OF SUCH CANCELLATION OR REDUCTION HAS BEEN MAILED TO: CITY OF ITHACA, NEW YORK ITHACA, NEW YORK 14850 L 1 AUT ZED REPRESENTATIVE 1/1/85 NYO DATE ISSUED OFFICE This certificate is executed by LIBERTY MUTUAL INSURANCE COMPANY as respects such insurance as is afforded by That Company, It is executed by LIBERTY MUTUAL FIRE INSURANCE COMPANY as respells such Insurance as is afforded by That Company. BS 234 R12 16 OFFICE OF MAYOR ITV DF ITHACA 1OB EAST GREEN STREET ITHACA, NEW YORK 14850 MEMO TO: Robert Fletcher, Chair, City's Cable Commission Raymond Schlather, Chair, Charter and Ordinance Joseph Rundle, City Clerk FROM: Mayor John C. Gutenberger DATE:. July 17, 1984 SUBJECT: State of New York Commission on Cable Television Adoption of Rules Concerning Notice Requirements and disconnection charges - Docket No. 90283 7.3 Comm. TELEPHONE: 272-1713 CODE 607 Attached hereto please find a copy of the above entitled matter for your attention. ATTACH. " '"An Equal Opportunity Employer win an Affirmative Action Program" STATE OF NEW YORK 'COMMISSION ON CABLE TELEVISION In the Matter of Adoption of rules concerning notice requirements and disconnection charges 84-125 ) DOCKET NO. 90283 NOTICE OF PROPOSED RULEMAKING AND NOTICE OF INQUIRY (Adopted: May 9, 1984 ; Released: June 21, 1984) PLEASE TAKE NOTICE that the Commission proposes to add to its rules section 590.69 entitled, "Notice Requirements for Changes in Rates and Charges" and section 590..70 entitled, "Disconnection Charge - Grace Period." The Commission's purpose is to require cable television companies to provide subscribers and pro- spective subscribers with adequate notice of any change in cable television rates or charges, including the creation of, or change in any rate or charge for dis- connection or discontinuance of any service. The pro- posed 'rule would prohibit the imposition of a charge or rate for discontinuing any services during a grace period of sixty days from the Notice of any change in rate of any service received by the subscriber. It has come to the attention of the Commission that several cable television companies in New York State have imposed upon subscribers a charge for changes in programming service. A charge for changes in programming services could be imposed upon either or both of two different sub- scriber requests. A subscriber's request to add a service or services to his subscription could result in the subscriber incurring this charge, as could a sub- scriber's request to discontinue one or more programming services. In the former case, the charge is an instal- lation charge. In the latter, the charge is one for discontinuance of a service. J -2- Installation charges have been commonly imposed in the cable television industry. Except for the Notice requirements proposed herein applicable to all rates and charges, installation rates are not the subject of this proposed rulemaking. Disconnection charges, however, have been rarely imposed, and the few instances in which they have been imposed are very recent. This Commission hereby undertakes an INQUIRY into the matter of disconnection charges. We invite comment on the matter of disconnection charges, including the following questions: o Is the imposition of a disconnect charge unfair to subscribers? © Is there a danger of abuse if a disconnec- tion charge is permitted? • What is the actual cost to a cable tele- vision company of disconnecting a service if disconnection can be effectuated without a trip to the subscriber's location? s What is the actual cost to a cable tele- vision company of disconnecting a service if disconnection cannot be effectuated without a trip to the subscriber's location? • Should there be a relationship between the disconnect charge imposed and the cost to the company of effectuating a discon- nection? • Under what circumstances are disconnect rates imposed? • How many cable television companies cur- rently impose disconnection charges? • Are disconnection charges imposed for dis- connection of basic service, non -basic service, or both? t -3- • Do the companies imposing such charges have franchises which specify the dis- connect charge? For..what.purposes would a cable tele- vision company impose a disconnection charge? • What are industry statistics concern - ingrate of churn? It would seem subscribers should be notified of the full cost of services which they are considering, and be afforded an opportunity to give up such service prior to the imposition of any new charges. Our con- cern is.that the imposition . of a rate or charge might act as a penalty by unilaterally compelling subscribers to pay increased monthly charges or a disconnection charge. To the extent that such a charge penalizes a subscriber by unfairly forcing him to continue an unwanted service, the charge violates the public interest To illustrate the potential for abuse, assume that a cable company imposes, without prior notice, a one-time charge of $50.00 on subscribers who discon- tinue or change a premium service channel. Those who were subscribers before the charge was imposed are compelled to pay a penalty of $50.00 if they subsequently decide they do not want (or cannot afford) to continue to subscribe to that service. The -proposed rules (which are attached hereto as "Exhibit A") would require cable television companies to provide Notice of any increases in any rates or charges. Cable television companies would be prohibited from imposing a disconnect charge for any disconnection resulting from a subscriber request for same within sixty days of the subscriber's receipt of a rate increase Notice. It is proposed that the subscriber be given a grace period within which to consider whether or not to continue with the same level of service at the in- creased rate and to consider the "penalty" that would be imposed for a subsequent disconnect or downgrade of his service level. We note that the telephone utilities offer a similar option. -4 - This proposed rulemaking does not establish or control the dollar amount of charges imposed if a service level is changed or discontinued. Rather, the proposed rules ensure that subscribers have an opportunity to make an informed decision without incurring a penalty: Protecting the public interest by regulation of billing practices and consumer pro- tection is clearly within our jurisdiction. The Commission invites comments from interested parties on these proposed rules. Initial comments in this proceeding should be submitted to the Commission no later than June 20, 1984';comments in response to .initial comments should be submitted no later than July 3, 1984.* Statutory authority for this Proposed Rulemaking is found in sections 815 and 816 of the Executive Law. Nothing in these proposed rules is intended to alter the statutory mandate that all rates and charges must be specified in the franchise. THE COMMISSION ORDERS: That the proposed rules and regulatory impact statement must be submitted,to the Secretary of State for publication and to other appropriate officials in accordance with the State Administrative Procedure Act and the Executive Law. Commis.sioners•Participating: William B. Finneran, Chairman; Jerry A. Danzig, Brian A. Luddy, Commis- sioners. *Subsequent to the adoption of this order, but prior t� its release, the Executive Director of the Commis- sion extended the comment periodin this rulemaking. • Initial comments must be filed by July 20, 1984, and reply comments must be filed by August 3, 1984. PROPOSED RULES 590.69. Notice Requirements for Changes in Rates and Charges. (a) No cable television company shall create or increase any rate or charge without giving written notice of the increase to each subscriber and to the Commission on Cable Television at least thirty days in advance of the. intendeddate of the imposition of the rate or charge. Every notice provided pursuant to this section shall in- clude a statement that a subscriber request to disconnect one, several or all services withip sixty days of the notice shall not result in the imposition of a disconnection charge. For purposes of,this section, the phrase "any rate or charge" shall include, but not be limited to, the monthly rate or charge for any level or rate or charge, if any, of any service. (b) Prior to a prospective subscriber's commitment to take a service for which a disconnection charge may be imposed, every cable television company shall provide that subscriber with a written notice of the rate or charge, if any, applicable to discontinuance of any level or combination of services. 590.70. Disconnection Charge -Grace Period. If a sub- scriber requests to discontinue any or all levels of service during a period of sixty days from the subscriber's receipt of a notice which indicates a rate or charge increase for any service the subscriber receives, the cable television company combination of services, and the for disconnection or discontinuance shall not impose a disconnection charge. For the of this section, a disconnection charge shall mean or charge imposed for any reduction or elimination a combination of, or all programming services. purposes any rate of .one, CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MAYOR John C. Gutenberger July 12, 1984 Mr. Robert Fletcher Chair City's Cable Commission 775 Snyder Hill Road Ithaca, New York 14850 Dear Bob: At your earliest convenience will you please petition the F.C.C. for a waiver for the City of Ithaca to the "must carry" regulation. As you know, the entire community is outraged at the new station alignment on the lower 12 channels available through American Community Cable in the Ithaca area. This request of you comes not only with my strong urging, but also with the unanimous support of the City of Ithaca Common Council. At its July Ilth meeting, Common Council voted 10 - 0 in support of this request. Anything you can do to rectify this unfortunate situation, will be greatly appreciated by the entire community. I remain, Sincerely yours, 6'��LC-C, r -.,t ''ohn C. Gutenberger Mayor CC: Joseph Rundle, City Clerk L. Richard Stumbar, Corporate Counsel Raymond Schlather, Chair of the Charter & Ord. Comm. "An Equal Opportunity Employer with an Affirmative Action Program - NE: 272-1713 CODE 607 May 16, 1984 A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street, Ithaca N.Y. 14850 (607)2723456 .Mr. Joseph Rundle, City Clerk 108 East Green Street Ithaca, NY 14850 Dear Mr. Rundle: It's my great pleasure to announce an all new cablevision service is coming to your area. This service includes many new customer oriented features, new programming, state of the art electronics, and in some cases new prices. You'll probably be asked about these new cable features, and we've put together this letter to help you answer some of the questions. Don't forget, however, that we're here to help, and that you can refer questions directly to me. First let's talk about programming. American Community Cablevision will offer six new satellite programming services in the expanded channel range (those channels above channel 13), and one in the basic channel group. These are: 1) ESPN (24-hour sports network)... 2) CNN (Cable News Network...24 hour news, features, and information).... 3) MTV (Music Television...today's pop hits in video format)... 4) USA Network (24 hour NCAA and pro sports, special women's and children's programming, and the best of the recent classic movies, plus programming specials)... 5) Nickelodeon (award winning children's programming, non-violent and educational TV for children and young adults)... 6) Arts and Entertainment Channel (The best of the performing arts)... 7) The Learning Channel (courses for college credit, and educational programming designed to be used in the classroom. Available on Channel 13 when Public Access is not in use)... In addition ACC will be adding two more premium pay services: Cinemax: a diversified programming service...includes blockbuster movies...film festivals...original programming, and The Disney Channel: famous Disney high quality family oriented programming and entertainment which features newly produced Disney product. This year American Community Cablevision will spend about $3 million dollars in capital expenditures to upgrade our service to you. About $2 million dollars of this is directly related to providing new services and features which will result in better service to our customers. These include: an expanded phone system to better handle the large volume of calls received at ACC... On-line billing for up to the minute billing information through computer...and perhaps best of all "addressable" channel selectors which will allow customers to add or delete services over the phone. We will then "address" the channel selector at the customer's home by computer. This electronic computer will tell the channel selector which services to add or delete...no more delays! Along with the addressable channel selector will be a separate and optional hand held wireless remote control capable of turning the set on and off, and changing channels. This will be available at a modest additional charge. As part of these system improvements ACC has recently installed a seven meter "earth station" on the roof of our downtown headquarters. This earth station or "satellite dish" is capable.of bringing in satellite signals from two satellites in stationary orbit 24,000 miles above the earth! Important to these new plans is the pricing of the new services. The Federal Communications Commission (FCC) has recently deregulated prices for all services above our basic 12 channel system. Prior to this deregulation many of the municipalities served by ACC set the rates for the basic and expanded channel service at $11.00. ACC will make this $11.00 charge uniform throughout its franchises served with the new programming. However, we will be dropping the converter rental charge. The pay services: HBO, Cinemax and Disney will be separate charges. All services above basic 12 channel service are optional. Additionally American Community Cablevision will provide discount -pricing for specific programming packages. ACC will turn on the new services on June 1, 1984. These new services will be available throughout your area. Later the satellite services will be "scrambled". That is, only those with the new addressable channel selectors will be able to receive the services. Naturally with an undertaking of this magnitude, not every customer can be serviced with all the new products on the first day. ACC will market the new services first to our existing premium customers (those who already havechannel selectors). These customers will be the first to receive the new addressable channel selectors, and the first to be offered the new premium programming services of Disney and Cinemax. Neighborhood Cable Representatives will visit every home to explain the new services and to install the new channel selectors. These Neighborhood Service Representatives will wear identification cards showing that they work for ACC. They will also be able to process each customer's order. Current 12 channel basic customers who wish new services will be visited after the current HBO and expanded channel customers have been served. Those 12 channel basic subscribers requesting additional services, and calling our office during the initial stages of the launch of the new services, will be given priority to be served as soon as possible. Thank you for your attention to this lengthly but valuable communication. If you have any questions, please don't hesitate to call, and be sure to refer any calls you get to me. We're glad to help, and we're looking forward to bringing the new cablevision services to your area. Sincerely yours, Martin Sheridan General Manager MS/nwe cc: file : 71/ -i-- i_. (�--n r» . 1/i /, g NEW YORK STATE COMMISSION p ON CABLE TELEVISION TOWER BUILDING, EMPIRE STATE PLAZA ALBANY, N.Y. 12223 (518) 474-4992 WILLIAM B. FINNERAN - Chairman Mr. Robert A. Fletcher 775 Snyder Hill Road Ithaca, New York 14850 Re: City of Ithaca Dear Mr. Fletcher: MICHAEL H. PRENDERGAST Vice -Chairman JERRY A. DANZIG Commissioner BRIAN A. LUDDY Commissioner THEODORE E. MULFORD Commissioner EDWARD P. KEARSE Executive Director August 2, 1983 I have hadthe opportunity to review the information for the. City of Ithaca submitted with your letter dated June 22, 1983. First I will review the company's_ operations, then address the questions raised in your letter, and finally make additional comments on the information submitted. Company'sOperations The financia information for American Community Cablevision (ACC) for fiscal year end June 30, 1982 was compared to the cable television industry in New York State as a measure of ACC's operating performance. For purpose of this analysis, the industry was defined as those companies filing an AFR-1 with this Commission. Unfortunately our most updated summary of cable operations in New York State is for 1980-81 so in making certain compari.sions the industry's financial information was increased by the change in the consumer price index to more closely reflect 1982 data. The results are follows on a company basis: 1. ACC's total operating expenses were $86.00 per subscriber compared to the adjusted industry figure of $94.00 per sub- scriber. 2. Examining the operating expenses in more detail, the allocation of service, origination, and selling general and administrative expenses differed from the AFR, so for comparison with the industry averages, the AFR figures were used. Service costs per subscriber were $25.00 for ACC compared to $32.00 per sub- scriber based upon the adjusted industry average. Origination costs per subscriber were $16.00 compared to the adjusted industry average of $21.00 per subscriber. Finally, selling, general and administrative expenses (SG & A) for ACC were $45.00 per subscriber compared to the adjusted industry average of $38.00 per subscruber. Given that ACC's SG & A expenses exceed that of the industry, further investigation into such components of this expense as overhead allocations may be warranted to determine if the allocation of corporate overhead is reasonable. iS. Mr. Fletcher Page 2 August 2, 1983 3. ACC's gross revenue per subscriber is $9.94 compared to the adjusted industry average of $12.25 per subscriber. ACC's operating ratio is 96% compared to the 1980 industry operating ratio of 80'/0. . ACC's operating: expenses per mile are $4188 compared to the adjusted industry average of $5194. From anexamination of the company's operations compared to that of the industry, it can be concluded that ACC's total operating expenses are in line,with industry averages with gross revenue somewhat below the average. In response to the questions you raised: QUESTION 1 -- In the rate of return calculations provided by ACC $45,346 appears as a provision for income taxes (see Return on .Investment schedule), while in fact ACC paid no income taxes and is not likely to in the future. RESPONSE In certain rate of return calculations, interest expense, net of tax effect, is added back to the net income or loss. On the third line ofthe Return on Investment schedule, total interest expense was added back to the net loss. I assume, that the $45,364 deduction for income taxes actually refers to the tax benefit ($88,222 x effective tax rate) received from incurring the interest expense. If this is the case then the deduction is appropriate. There are also severalalternative methods of performing a rate of return analysis.. . If rates are set based upon a strictlyutility base rate of return method, the desired revenue is computed by determining allowable operating expenses plus depreciation, interest, taxes, net investment in plant and multiplying by the Company's desired rate of return. The resulting revenue figure is divided by the number of customers to determine a monthly rate. If we examine rate of return as calculated by a commercial enterprise, the calculation would be net income after taxes divided by average total assets. The preceding description is only intended to bring to your attention that there are a variety of methods to compute rates of return. . Mr. Fletcher Page 3 August 2, 1983 QUESTION 2 ACC claims that 517 of each new revenue dollar will fall into the category of provision for taxes. RESPONSE Assuming ACC's parent company files a consolidated tax return the tax rate used by ACC should be its parent's effective tax rate. This can be computed by dividing the parent company's total income taxes by thenet income before taxes. QUESTION 3 Amortization of intangible assets has been included in ACC's ROI calculations.: There is some question if it is legitimate to include this item since it represents the amount in excess of the market value of the system paid by ACC for "goodwill" when it acquired the system. RESPONSE The inclusion or exclusion of goodwill in the rate of return calculation is a matter with no right or wrong method as practiced in the cable industry. ._ Strictly utlity type accounting would exclude any amounts paid for the assets in excess of the net book value when first placed in public service, plus allowance for applicable depreciation and additions or deletions to assets. In practices we have observed, most municipalities have not questioned the purchase price. Many municipalities review rate increases in terms of comparability, i.e., rates are set based upon the authorized rates in comparable municipalities receiving comparable services, or upon bargaining, i.e. a quid -pro -quo.' The type of analysis you are requesting has been attempted by. only a few municipalities; therefore, the Commission does not have an established policy regarding inclusion or exclusion of goodwill in rate of return analysis. QUESTION 4 There is also some question as to the accuracy of the ROI figures provided for the City of Ithaca. In particular the way some costs were allocated to the City. RESPONSE In a review of the Notes To Allocated Financial Statements the following matters require comment: 1. ACC chose to allocate based upon the annual average basic plus pay subscribers and/or annual average miles of plant. Normally, allocations made based on subscribers consider only the basic subscribers. In this instance, however, the inclusion of pay television subscribers has little impact since City's proportion of subscribers is increased by a mere 1%. Allocations based on M±: Fletcher Page 4 • August 2, 1983 subscribers and/ormiles of plant are common; however, : the methods have not been thoroughly examined in New York because most municipalities have not chosen to review rates based: -on tate. of return. . The inclusion of pay subscribers, in the allocation method, raises the question of whether operations related to pay television should be included in a rate of returnanalysis for determining a basic rate. Another state has proposed a method of allocating basic and premiumservice to determine pre-tax income and the rate base of the basic cable operation for rate making purposes._ tinder this method, revenues, expenses and the rate base that relate solely to pay operationsare excluded from. the computation. The remaining revenues, -expenses, `and rate base used jointly in providing basic and pay service areallocated between basic and pay operations based on an equal weighting of the proportion of basic service revenue to total revenues and the proportion of basic channels used to total channels used. It is not our intent to recommend that the preceding formula be used by the City; it is provided solely for your information and review. Should you wish to pursue this method, I will be happy to provide you with more detail. 20 Headend, tower, antennas, microwave, and earth station were allocated based on number of subscribers. Neither the number of subscribers or miles of plant has more impact upon the cost of these items; therefore,either method of allocation would:. be appropriate.: Property.tax expense and accrued property taxes were allocated using different methods. .For consistency, the preferred method .of allocation should.,be based'on the•total plant, property, and equipment. 4'. Interest was allocated based on net assets. (as shown on the Statement of Assets, Liabilities & Net Assets).. According to the AFR, Net Assets is composed of current loan payable and owner's equity, which we assume represents the parent company's investment in the system. The interest expense attributed to the Net Assets should be computed based upon the estimated interest expense incurred by the parent company on that portion of its investment that was to be debt financed. . M.. Fletcher. Page 5 August 2, 1983 . Interest expense can be computed as follows: 1) Compute parent company's debt to equity ratio 2).Apply ratio computed in number 1 to the net asset amount of $1,240,536. (Statement of Assets, Liabilities and Net Assets)I. to compute that portion of the parent's investment that was debt financed. 3) Compute the parent's effective interest rate by dividing.. the parent's interest expense by current loans payable. 4) Apply the interest rate computed in number 3 to the debt portion of net assets computed in number 2. The allocation of the remainder of accounts appears reasonable. Additional Comments There is one other item that .should be considered for inclusion in the computation of the rate of return. The income tax benefit due to the net loss-is__recognized on the Statement of Revenues and Expenses. Since the Company has determined it is appropriate to recognize the income tax benefit then it is appropriate to include this benefit in the computation of the rate of return. To provide you with a guide as to how the City's rate of return compares to industry averages (as of 1980-81), attachment A contains a list of several industry rates of return computed using some of thepossiblemethods available to the City. Also attached is the 1980-81 Annual Financial Profile prepared by this Commission, summarizing cable operations in New York Summary While the rate of return for the City is somewhat below. that of the industry, the data we are examining reflects only one year of operation. In rate of return analysis, it is not unusual to request finanical information for prior years operations as well as future projections. Financial projections for the next five years should reflect operations without the requested rate increase, with the requested rate increases proposed by the City and the increase proposed by ACC. By obtaining additional financial information from both past and future years, the City will obtain a better idea of ACC's past performance and the impact of the proposed amendment on future operations. Mr. Fletcher Page 6 August 2, 1983 This review should provide the City with additional insight into the operations of ACC, particularly in comparision to operations of other cable companies in N.Y.S. If you have any questions please feel free to contact me at (518) 474-2471. cc: J. Wright, CCTV M. Sheridan, American Community Cablevision Susan W. Sheehan. Senior Accountant ATTACHMENT A Financial data for cable industry in NYS for the period 1980.8i • Net Income After. 'Taxes $18,052,727 3: `'Tax Benefit '(257 effective rate) _Interest Net ▪ TOTAL tax; of Tax Benefit Average Net: Property-, Plant -- -== and Equipment • Average Goodwill ▪ Working capital allowance (12.57 operating. expense) . Investment !'Rates of Return:.: A. . Using same': -formula as ACC. in their Return On Investment Schedule Excluding goodwill. $243,884,048 25, 933,127 $285,022,157 Line +line 6 + line 8) = 14.0% NOTE: The information on this attachment provides more detail in certain areas than is available on the Commission's: Annual Financial Profile. A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street, Ithaca N.Y. 14850 (607)2723456 POSITION STATEMENT American Community Cablevision is committed to providing the best possible service to its &ustomers and the community. In retrospect, we feel that we negotiated and substantiated in good faith the need to increase the price of basic cable service. Since Spring, A.C.C. has been in the process of upgrading ----and= improving -_several -aspects of its -service. As -a result of broad changes in programming, equipment, pricing and the very high activity level typical during the summer months - we have __developed some customer service problems. Attached to this statement is an accounting of the major issues and action being taken by A.C.C. To call A.C.C. unresponsive, inviolation, or poorly performing without providing any details regarding specific complaints that we are neglect in responding to is plain unfair. As of September 4, 4:00 p.m., we were finally provided copies of all correspondence received by the City Cable Commission. Perhaps, if the city's regulatory commission had exercised ` the -responsibility of an ongoing relationship-by-passing=along complaints instead of playing to the media, A.C.C. might have been able to proceed faster with improvements. On technicality, the rate increase suspension resolution is improper. The original increase was granted as a formal agreement. Unilateral changes to that:; agreement without violation of that agreement is simply improper and withoutdueprocess. On reasonableness, give us :a chance. Help keep us informed of complaints and comments, but then give us a chance to respond. . A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street, Ithaca. N.Y. 14850 (607)272-3456 BASIC,RATE INCREASE AGREEMENT Negotiated in good faith between American Community Cablevision, City Charter and Ordinance Committee before a representative of New York.State-Cable Commission. City Council resolution to approve franchise amendment unanamously approved in March of 1984. The .Agreement specifically. implied that American Community -Cable -vision -would -provide the -following improvements: _- 1. - Install -'a new_telephone system - INSTALLED SPRING 1984 2. Implement..a Lockbox System - INITIATED JULY 1984, WITH TOMPKINS COUNTY TRUST 3. Install an Earth Station - ACTIVATED JUNE 1st, 1984- 4. Install an Addressable System - INSTALLED AND ACTIVATED JUNE 1st, 1984 5. Add The Learning Channel, part time on the Public Access Channel_- ADDED JULY 1st, 1984 - 6. Add Cable Satellite Services - USA, CNN, ESPN, MTV, NICKELODEON, ARTS, CINEMAX, AND DISNEY. ALL MADE AVAIL- ABLE JUNE 1, 1984 • 7. Install -an on-line billing system - STATUS DELAYED DUE _ TO PHONE COMPANY BACKLOG OF AVAILABLE DEDICATED DATA LONG -LINE TRUNKS_. BUSINESS OFFICE WIRING - COMPLETED. TERMINALS ON SIGHT. AMERICAN COMMUNITY CABLEVISION . A DIVISION OF AMERICAN TELEVISI9N & COMMUNICATIONS CORP. . 519 West State Street. Ithaca. N.Y.14850 (607)272-3456 - • . • • 'CUSTOMER.COMPLAINT FACT SHEET COMPLAINT Programming. WNEW-5 New York City, has been moved tocable channel- •22, effectively taking it away from customers,- receiving only basic cable; REASON FCC rules clearly state that all must -carry television _ broadcast signals must be available on a cable systems' basic level of service. • To comply, WMGC - Binghamton had to be added to -our -basic service by substitu-Eion. To •make room, one of the New York City distant stations had to be moved to our expanded tier. SOLUTION -- We_will support all effOrts-made_by-the City -Cable Commission to seek_waiver-of the FCC must -carry rule as it -applies to the Ithaca area. AMERICAN COMMUNITY • • LEVISION A DIVISION OF AMERICAN TELEV SIQN & COMMUNICATIONS CORP. 519 West State Street, Ithaca N.Y. 14850 1607)2723456 • COMPLAINT Programming. Customer requests for reinstatement of r channels 44-WVIA, 21-WXXI which. were "arbitrarily deleted. REASONS 1. ACC acted in: -response to criticism for carrying so many._duplicate broadcast signals e.g. -.5 ABC's, 4 NBC's, 3 CBS's, 4 PBS's. . . 2. Overwhelming feedback in the form of unsolicited phone' calls, letters and comments for new channels, plus a random sampling of our customers' viewing preferences. 3. Over the last two years, the signal level originating from Scranton WVIA-44 was cut in half. This coupled with other signal interference factors has lead to a decrease in reception quality in the Ithaca area. SOLUTION Evidence presented to us from the community in favor of re -instating channels 44 and 21 has prompted_us to compre- hensively examine viewer preferences in the form of --a customer survey. This will help us to determine what additional programming to put on the channel space available after the completion of the "HBO Cutover.": Concurrently, ACC is investigating possible engineering alternatives to improve channel 44's reception quality. • COMMUNITY A DIVISION OF AMERICAN TELEV SION & COMMUNICATIONS CORP. 519 West State Street, Ithaca. N.Y.14850 (607)2723456 COMPLAINT Phones. Difficulty getting through to business office. REASONS 1. .The level -of_ phone. activity. _since the .Launch. of_. new services has been substantially higher due to calls about: -. - Rate increases in at least half a dozen service areas. - - Changes in channel line-up. - New converter equipment._ - The increased flexibility to change services on our addressable system. 2. The higher than normal level of activity at this time of year. 3..- The delay_ in activating an on-line system which would instantaneously update customer -transactions and service _changes. _This postponement has _forced us to maintain two separate sets- of customer -records (one - for billing, one for our addressable system) requiring additional worker resources to coordinate these records. SOLUTIONS 1. We have hired and are in the process of training five more people, for our customer service department. This should alleiate the bottleneck of customers calling in. 2. We have set up express booths at both campuses to serve the influx of new residents to Ithaca. These booths havetaken over 1000 orders in the past week. 3. .This fall; ACC expects to go on-line, and we are confident that this will improve the overall efficiency of our operation. - A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street Ithaca N.Y.14850 (607)2723456 COMPLAINT Billing. With the addition of new services, customers have found their billing statements to be vague and difficult to understand. REASON Our current billing system is not capable of itemizing the billing statement for all levels of service, including our new package discount offerings. SOLUTIONS 1. We will publish a comprehensive list of all our services and prices in the Ithaca Journal on Friday, September 7th. A similar listing will be included with each customers' bill over the next two months. 2. We have designed a pamphlet which gives customers a detailed explanation of how to interpret their billing statement. 3. The on-line system will provide customers with a billing statement which itemizes all their monthly services and charges. • AMERICAN COMMUNITY CAB . A DIVISION OF AMERICAN TELEVISLON & COMMUNICATIONS CORP. 519 West State Street Ithaca. N.Y.14850 (607)272.3456 IMPROVEMENTS 1. Satellite Programming 2. Extended Office Hours 3. Over 25 additional jobs were created all filled by local residents. . 4. Regrounding - /-Improved-wiring of all :.cabled homes ._. 5. Reduced installation backlog. 6. .- Challenge Industries working relationship. 7. Strong "Buy Local" policy. 8. LO/LA Improvements. • 1.110 8 '1,10. 8 la* 8 �I O O OOAO WOWI *memo 0 fA&J O f 9uu.un' O 13,..d � O p .a �I SpoM O I 1 / OFFICE HOURS 519 West State St. Ithaca, NY 14850 8:30 AM - 7:00 PM Monday - Friday 9:00 AM - 12:00 Noon Saturday IMPORTANT PHONE NUMBERS Information 272-3456 Billing 272-3456 Candor 659-7980 Newark Valley 642-3210 Repair 272-3449 • r_ YOUR CABLEVISION BILL Follow this guideline with the sample bill. If you have any further questions regarding your statement please call a Cablevision Customer Service Representative. 1. THIS IS THE ACCOUNT NUMBER ASSIGNED TO YOUR RESIDENCE. 2. THIS IS THE TOTAL AMOUNT DUE. IT WILL INCLUDE ANY PRO RATED CHARGES, UNPAID BALANCE, CURRENT MONTHLY CHARGES, AND TAXES. 3. THIS IS THE DATE THAT PAYMENT IS DUE IN OUR OFFICES. IF PAYMENT IS RECEIVED AFTER THIS DATE, IT WILL BE CREDITED ON YOUR NEXT STATEMENT. 4. THIS IS THE ADDRESS WHERE PAYMENT SHOULD BE MAILED. 5. THIS SECTION CONTAINS YOUR CURRENT BILLING HISTORY. Below are some examples of services and charges most frequently seen on Cablevision bills. A. PRO -RATE (7/18-8/01) 13 DAYS. Cablevision service charges are calculated on complete billing cycles, any connections after the end of a billing cycle are pro -rated, calcu- lated by daily charges and processed on the next complete billing cycle. B. CR Any amount credited to your account. C. MONTHLY SERVICE (8/01-9/01) Cablevision services are billed one month in advance. D. TAX This is the 7% New York sales tax on connec- tion only. E. PAYMENT (7/18) This acknowledges payment to our office and the date it was processed. F. PACKAGE DISCOUNT AMOUNT This credits your account for your monthly discount if you fall within one of our multiple service discount packages. G. DEPOSIT One time refundable security deposit required for our converter. AMER: 60M. M. CABLEVISION H P.O. BOX 6575 ITHACA NY 14851 REMIT TO—; 0 \ ACCOUNT NO. 01 58924203.•0 PLEASE PAY $ 54.46 / DUE DATE 08/10/84 0 OI AMER. COMM. CABLEVISION FB P.O. BOX 6575 ITHACA NY 14851 John Doe 123 Any Street Ithaca, N.Y. 14850 PLEAS! DETACH AND ENCLOSE TOP PORTION WITH CHECK OR MONEY ORDER DESCRIPTION DATE Connect Cablevlsion Sales Tax Deposit Charged Prorated Service -13 days from Package Discount Amount Payment Monthly Service * Expanded Service Package Discount Amount 7/18 $15.00 7/18 1.05 7/18 10.00 7/18-8/01/84 20.06 7/18-8/01/84 4.55 CR 25.00 CR 8/01-9/01/84 43.85 8/01-9/01/84 4.00 8/01-9/01/84 10.90 CR TOTAL DUE P. $54.46 R 091-007-14850-00052-3 01 589242030 840719 12 69 094 * Expanded service refers to channels 17-24. In some areas expanded service is Included in the monthly service charge. COMMUNITY A DIVISION OF AMERICAN TELEVISION & COMMUNI 519 West State Street. Ithaca. N.Y. 141350 (607)272-34 Mr. Joseph Rundle, Clerk City of Ithaca City Hall Ithaca, New York 14850 gfcElvth April. APR 819$3 CI1Y eters OFFICE Ithaca, II. If: 1983 Dear Mr. Rundle: Enclosed please find a copy of an -application -to the New York State Commission on Cable Television by American Community Cablevision to renew its "Grandfathered" Certificate of Confirmation to operate within your municipality. American Community Cable will publish notice of its ap- plication on April 8 and April 15 in the Ithaca Journal. In addition, the notice will advise the public that a copy of the application will remain on file in your office . Please direct any comments regarding this matter. to the New York State Commission. on Cable Television. If you have any questions please direct them to Martin. Sheridan or myself. Thank you. Sincerely, Kevin Grossman Ass't Gen. Manager cc: Martin Sheridan ( ymr sk tAU I- nt ELLI RA.1 sco1.44iAN Ra8art/ A. KA Kai FORM R-2 REVISED JANUARY, 1983 APPLICATION FOR RENEWAL OF CERTIFICATE OF CONFIRMATION 1. The exact legal name of applicant is: (parent company, if applicable) American Television and Communications Corporation 2. Applicant does business under the following trade name or names: (subsidiary company, if applicable) American Community Cablevision 3. Applicant's mailing address is: P.O. Box 519 519 West State Street Ithaca, New York 14850 4. Applicant's telephone number(s) is (are): (607) 272-3456 5. This application is for a.renewal of operating rights in the (city,atown__or.__village) of -City of Ithaca 6. The applicants most recent annual performance test as required by 9 NYCRR §596.5 was conducted on March 10 and 11, 1982 7._ Attach a copy -of applicant's most recent annual performance test results as required by 9_NYCRR §596.5. The N.Y.S. Commission inspected and tested American Community Cablevision on March 10 and 11, 1982. CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MAYOR WILLIAM R. SHAW MEMO TO: Joseph Rundle, City Clerk FROM: Bill__.Shaw, Mayor DATE: March 11, 1983 SUBJECT: State of New York Commission on Cable Television -Grounding and Bonding of Cable Television Systems required by Section 596.9(a) of the Rules and Regulations of the Commission -Docket #90245 -Channels and Facilities for Locally Originated Educational and Public Service.Programming - Docket #90174-A • -Establishment of rules and regulations concerning cable television subscriber privacy -Docket #90221 • -Line Extension Practices of Cable Television Companies Docket #90142-A -Amendment of Parts 598 of the Commissions Rules - Docket #90265 -Amendment of Cumnission Rules to Provide.for a Change in the Waiting Period Prior to Commission Action - Docket #90214 = MAR 14193 —;' eY CLEWS ofF8 Ithaca, N. Y. TELEPHONE: 272-1713 CODE 607 Attached hereto please find the above entitled documents for filing. ATTACH. CC: Raymond Schlather, Chair of the Charter and Ordinance Comm. (`4,/° 4- ¢7g cH" ,'''7 5/ Robert Fletcher, Chair of the City's Cable Commission (,,v/o 4,1. ,.-r "An Equal Opportunity Employer with an Affirmative Action Program" 83-042 STATE OF NEW YORK 'COMMISSION ON CABLE TELEVISION In the Matter of The Amendment of Commission Rules to ) Provide for a Change in the Waiting ) DOCKET NO. 90214 Period Prior to Commission Action ) NOTICE OF PROPOSED RULEMAKING (Adopted:. February 23, 1983 ; Released: March 3, 1983 ) Effective July 22, 1981, the State Administrative Procedure Act was amended to provide that all applications to this Commission (except those submitted pursuant to section 825(5)(e) of article 28) need no longer be published in the State Register. This change was implemented to provide for a more rapid processing of appli- cations before the Commission and to reduce the time from submis- sion of a completed application until that application is acted upon by this Commission. Presently the Commission's rules provide that an application may not be acted upon until 30 days after the last day of publi- cation in the local newspaper of the notice of filing said appli- cation with the Commission. In order to reduce the processing time, the Commission waived the 30 -day rule requirement set forth in sections 591.5(d), 597.4(a)(4) and 597.5 of our rules. (See ORDER WAIVING RULES, Docket Number 90214, Order No. 81-177, adopted August 19, 1981, released August 28, 1981) The proposed action would amend the rule to reflect the action taken by Commission waiver of the rule. By amending the rule the waiting period prior to Commission action on any application would be shortened from 30 days to 15 days, as it has been since the ORDER WAIVING RULES. Comments on the amendments proposed herein may be submitted to - .the Office of the Commission on Cable Television at the Tower Building, Empire State Plaza, Albany, .New York 12223, (518) 474- 4992, through April 6, 1983. Reply comments may be submitted through April 29., 1983. • --BY `ORDER OF THE COMMISSION Commissioners Participating: George A. Cincotta, Chairman; Jerry A. Danzig, Brian A. Luddy, Theodore E. Mulford, Commissioners ADDENDUM Subdivision (d) of section 591.5 is amended to read as follows: (d) Notice of application. Promptly upon filing an application pursuant to this section, the applicant shall publish notice of such filing at least twice in a newspaper of general circulation in the municipality or municipalities to which the application relates. The notice shall indicate that copies of the materials constituting the application are available for public inspection at the offices of the commission and those of the clerk of the affected municipality during normal business hours and that comments with respect to the application may be filed with the commis- sion. Proof of publication of such notice shall be filed with the com- mission within 10 days of the last publication. No application pursuant to this section will be acted upon prior to the [30th] 15th day following publication of the notice required by this subdivision. Paragraph 4 of subdivision (a) of section 597.4 is amended to read as follows: 4. a statement that any interested person may file objections with the commission on or before a specified date (such date to be not less than [30] 15 days from the date of last publication of the notice) and that interested persons may examine a copy of the application during normal business hours at a specified location within the municipality in question; and Section 597.5 is hereby amended to read as follows: Section596.5 Inquiry into matters raised by application or objections. If, after expiration of the [30] 15 -day period following the date of last publica- tion of the notice of filing, no genuine and material issues are raised, the 'commission may summarily grant the application. If the commission finds that genuine, material issues exist or have been raised, it may -2- conduct such further proceedings as it deems best suited to the speedy resolution of said issues. "STATE -OF NEW YORK •.COMMISSION ON CABLE TELEVISION ,In the Matter of 83-043 RECEIVED MAR 1 1 198 Grounding and Bonding of Cable Television :Systems Required by Section 596.9(a) of the Rules and Regulations of the Commission Docket No. 90245 ORDER REQUIRING FILING OF REPORTS (Adopted: February 23, 1983; Released: P?ar-ch 3, 198)) 1•.• Inspections by our technical staff over a period of time indi- cate that the grounding and bonding of cable television subscriber ;service entrance (drop) cables has not been timely accomplished in accordance with our rules. It is increasingly evident that violations are more widespread than would be expected, given the long history of our efforts to assure the safety of the subscribing public. There- fore, we have concluded that it is appropriate once more to survey the industry to determine the extent of non-compliance. 2. We will require that each cable company file with us a certified report detailing the extent to which its system(s) comply with the grounding and bonding requirements of Section 596.9(a). If a company operates more than one system, a report must be filed for each system. The report must give the number of basic subscribers in the system(s), the approximate number of drop cables not in compliance (if any), an estimate of the amount of time required to bring the system fully in- to compliance and the proposed methodology by which full compliance will be insured. Our staff will review each report to determine whether the proposed methods and estimated times for completion are reasonable in the light of our intent to have all systems in full compliance in the shortest possible time. 3. We must caution the reporting companies that, having experienced less than one hundred percent success in our repeated efforts to as- sure compliance with our public safety rules, heretofore, we shall expect both candor and total compliance in this instance. Repeated extensions of time within which to comply have not in the past re- sulted in full compliance as our recent inspections have shown. Despite this, we will again afford the industry an opportunity to bring their systems into 100% compliance with Section 596.9(a) of our Rules. We will not grant an extension for all cable system Operators to a time certain. Rather, we will grant only such time to each operator as is reasonably required, in our judgment, to audit his system(s) and take the necessary corrective measures. We do not expect a "business as usual" approach to correction of grounding and bonding violations. Instead, an extra measure of effort must be made to accomplish needed corrections. 4. Companies shall report on present conditions in each system on forms designed by Commission staff and attached hereto. The initial "report may be based on a valid statistical evaluation of systems. - 2 Thereafter, on monthly report forms, attached hereto, each company shall report the number of drop cable installations inspected and corrected during the preceding month, the total inspected to date, and the remaining number to be inspected. Finally, a report certi- fying completion of the audit and corrective measures and full compliance with Section 596.9(a), shall be submitted within 10 days following the time allocated for completion. The attached initial and monthly report forms may be reproduced as necessary by the reporting companies. 5. The initial report should indicate the methodology by which the determination of the number„ of non -conforming drop cable installations are made. If statistical sampling was used, the random selection process should be described, and should include confidence and pre- cision levels, number of samples chosen and whether sampling was by replacement. Sample sizes less than 30 should be avoided. 6. Finally, attached hereto as Appendix A is a document entitled "Application and Clarification of Electrical Codes as They Apply to Cable Television Systems". For interpretations not covered therein, cable system operators are encouraged to seek interpretation from the Chief, Division of Telecommunications, at our Albany offices. THE COMMISSION ORDERS: 1. Every cable television company in the State shall, within 60 days of the issuance of this Order, submit an initial report for each of its operating systems detailing the extent to which its systems com- ply with the subscriber service entrance cable grounding and bonding requirements of Section 596.9(a), indicating the methodology to be used to achieve full compliance and the time necessary for compliance. 2. Subsequent monthly reports shall be submitted not later than the 10th day of the month following the reporting period. Such report shall_ indicate the number of subscriber drop cable installations in- spected and corrected during the reporting month, the total number inspected and corrected to date and an estimate of the total number remaining to be inspected and corrected. 3. All reports shall be filed in the form indicated on the attached Initial and Monthly Report forms and shall contain all information re- quired therein. 4. Companies filing Initial Reports indicating non-compliance with Section 596.9(a) will not be penalized for reporting such non- compliance. - 3 - 5. Any company failing to file reports in the time specified in Ordering paragraphs 1 and 2 above or failing to file the required in- formation will be subject to forfeitures under Executive Law, Article 28, paragraph 827-a.1. 6. Any company filing a report certifying full compliance and found to be non-compliant, or any company failing to complete its audit and corrective measures in the allotted time, will be subject to for- feitures under Executive Law, Article 28, paragraph 827-a.1. 7. Notwithstanding any of the above, cable television companies shall continue to be liable for any damage or loss occasioned by failure to comply with Section 596 of our Rules. 8. Cable television systems are not relieved, by this Order, from compliance with Part 596 of our Rules. Commissioners Participating: George A. Cincotta, Chairman; Jerry A. Danzig; Brian A. Luddy; Theordore E. Mulford, Commissioners. APPENDIX A Application and Clarification of Electrical Codes As They Apply to Cable Television Construction. 1. The National Electrical Code is sponsored by the National Fire Protection Association (NFPA) and is officially endorsed by the American National Standards Institute (ANSI). The 1981 issue of the Code is designated ANSI/NFPA 70-1981. It is this version of the Code we will reference throughout the remainder of this document. A chart "How to Select Subscriber Drop Ground" is attached hereto for the purpose of assisting CATV personnel in selecting appropriate grounding and bonding methods. 2. The sections of ANSI/NFPA 70-1981 that are applicable to cable television system installations are Article 250 -Grounding, Article 550 -Mobile Homes and Mobile Home Parks, Article 810 -Radio and Tele- vision Equipment, and Article 820 -Community Antenna Television and Radio Distribution Systems. 3. Construction of outside plant is governed by the National Electrical Safety Code, ANSI C2 - 1977 and by the Bell System Manual of Construction Procedures. While most cable television systems are constructed on pole lines owned by one or more utility companies, from time -to -time we find that cable system operators have placed their own pole lines. In those instances, the usual pole attachment agreements governing safety in construction are not applicable. The reasons for grounding and bonding and maintaining clearances in outside plant are meritorious regardless of ownership of poles; therefore, we will re- quire compliance with those standards. 4. The National Electrical Code was amended in 1968 to include a re- quirement to ground cable television service entrance cables at a point nearest to building entry. In the 1971 edition of the Code, a further requirement was added, that of bonding the CATV ground to other grounding electrodes in a building to form a grounding elec- trode system. The only other changes in the Code as it relates to CATV were ones changing the order of preference for interior house grounds and to define a grounding electrode system. Thus, since 1968 grounding has been required and bonding has been required since 1971. At no time since 1968 has the Code permitted ungrounded drop cables. 5. It is appropriate to review the purpose for the grounding and bonding of cable television service entrance (drop) cables. The outer conductive sheath of coaxial cable must be grounded to limit voltages that may be present on the sheath from external sources such as power contact or voltages induced by lightning strikes on or near the cable. Grounding aids in the rapid deenergizing of power lines that contact coaxial cables. Bonding of all grounding electrodes to form a ground' ing electrode system tends to reduce the overall resistance to ground and to equalize the voltage potentials that might appear between various grounds and cable sheaths. 6. The common (multi -grounded) neutral power distribution system requires frequent grounding of the utility company neutral. This multiple grounding is accomplished by grounding the neutral at transformers, at various points along the pole line and at customer service entrance equipment cabinets. The customer's electrical ground must be bonded to interior cold water pipes. In practice the cold water pipes of virtually all of the utilities' customers provide a significant part of the neutral ground.* In a properly operating power distribution system, not more than 40 amperes of unbalanced primary current flows in the common neutral system. In addition to the neutral current flowing due to the electrical load in the residence, approximately one-half of the primary current flows in the cold water pipes of customers.** So long as no ground faults occur in the system, the current flow in water pipe grounds presents no problem. Should the neutral be interrupted, all neutral current past the breakpoint will return to the substation through water pipe grounds. This increase in current flow does not raise the ground po- tential sufficiently to cause a problem. However, should a ground' fault occur, extremely large ground currents will flow for short periods of time. In the case of a faulted 13.2KV distribution line, ground currents on the order of 20,000 amperes may be found.*** Collectively, the water pipe grounds represent a ground resis- tance of approximately 0.1 ohm. With one-half of the neutral current flowing in the water pipes, a voltage rise on the order of 1000 volts occurs. Without a bond between the CATV drop cable and the interior power ground, a lethal voltage appears between the grounds. The difference in potential at a television set or converter is sufficient to cause damage to components. While these faults generally are of short duration (13 to 133 milliseconds) resultant damage can be severe. Bonding together of all grounding electrodes to form a system also helps to protect against damage from switching transients and lightning induced voltage and current. It is well known that lightning striking on or near a cable facility will in- duce extremely high currents in the cables and in the ground in the vicinity of the strike. No area of the country is immune from elec- trical storms. New York State residents may expect up to 80 days annually during which electrical storms of various intensities will occur. The median peak current in a cable sheath during a lightning strike is 30,000 amperes..**** If current of this magnitude were to flow in a CATV ground rod (not bonded to the electrical system ground) -� ,Standard Handbook For Electrical Engineers, Tenth Ed., Eds. Donald G. Fink and John M. Carrol, Sub -Sec. 16-19, McGraw Hill Book Company, New York, N.Y., 1969. Irk Ibid., Sub -Sec. 16-93, 97. Ibid., Sub -Sec. 13-84. ;;;, "Proper Grounding of Cable TV Systems", Theordore Berstein, P.E., CED, pp. 41-47, Tisch Publishing, Inc., June 1982. the potential across the rod with reference to power grounding would rise to many thousands of volts creating a potential difference suf- ficient to puncture insulation and destroy components in converters or television receivers. Most important, the hazards to life and property from fire or shock cannot be overlooked or ignored. 7. The proper methods of grounding and bonding in the Codes are said by some to be unclear. It is appropriate for us to discuss both proper and improper practices in grounding and bonding. Our inspec- tors encounter a wide variety of methods, some of which are improper. We first turn our attention to improper and, therefore, prohibited practices: a. No grounding or bonding connections shall be made to any part of any gas piping system. b. No bonding connection shall be made to a power company neutral conductor at the service entry head. c. No bonding or grounding connection shall be made on the power company electrical meter channel. d. No bonding or grounding connection shall be made to the non-metallic sheathed cable clamp at the load side of the meter channel. e. No bonding or grounding connection shall be made to telephone company equipment. f. No bonding or grounding connection shall be made to electrical service equipment cabinets or panels unless a suitable screw clamp or stud used for no other purpose is employed. g. No bonding conductor smaller than No. 6 copper or No. 4 aluminum shall be used.* h. Grounding or bonding conductors shall not be spliced. 8. Several grounding methods are approved by the National Electrical Code. They are listed in Article 250, section H, subsections 250-80 through 250-83. The Code requires that metal water piping be bonded to the electrical service ground, the service equipment enclosure or the electrical service grounding conductor. The metallic pipe, build- ing frame, electrical service ground, ground ring, etc., when bonded together form the building grounding electrode system. Where a This refers only to bonding of CATV ground to grounding electrode system. - iv - metallic conduit exists between the load side of the meter channel andthe service equipment enclosure, that conduit is a part of the grounding electrode system.. Attachment of the CATV grounding conductor at any convenient point on the system is permitted. The supplemental grounding electrode specified in subsection 250-81(a) is not to be supplied or installed by the CATV installer. It is a requirement for the electrical system grounding. The customer should be advised to have the electrical service installation, including grounding and bonding, inspected by an electrician and corrected as necessary. 9. At the time of installation of the CATV drop cable, the installer shall inspect the customer's premises to determine whether the power service is grounded, whether the power ground is bonded to the interior cold water piping system and whether the water meter (if used) or the water pump, where water is supplied by the customer's well, is effec- tively bypassed by an appropriately sized bonding jumper.* If the power serviceis not grounded, the installer should advise the cus- tomer that such grounding is required and that a potentially hazardous situation exists. The CATV installer shall then proceed as indicated in the attached chart, "How to Select Subscriber Drop Ground". If the water meter or water pump is not effectively bypassed by a bonding jumper, the CATV installer shall install the appropriately sized bond- ing jumper. 10. Telecommunications Division inspectors make resistance measurements of grounding connections and from time -to -time report on these measure- ments. Measurements made before and after tightening screws and clamps and removing corrosion show significant improvements in grounding effectiveness. Therefore, it is important that CATV personnel, after the initial installation, inspect the grounding system on each visit to subscribers' homes removing corrosion and tightening fittings, clamps and screws to restore the best possible electrical path between the drop cable and the grounding electrode. 11. In instances where a cable television company has installed its cable plant on privately owned poles, the safety provisions of the National Electrical Safety Code and the recommendations of the Bell System Manual of Construction Procedures are to be applied to the construction. The following grounding and bonding requirements will be applicable to these outside plant installations: a. Strand shall be grounded using a minimum No. 6 copper ground wire attached to an eight foot . (minimum) grounding electrode at the first, last and every tenth intermediate pole until no more than 1/4 mile separates grounds. %; The appropriate bonding jumper size for maintenace of power ground is given in subsection 250-94, .Table 250-94. v - b. Each power supply in the system shall be grounded to an eight foot grounding electrode using a minimum No. 6 copper wire. c. Strands crossing on poles shall be bonded to- gether using No. 6 copper wire. d. Where two strands deadend on separate bolts at a pole, a Nb.'6 copper bonding wire shall be installed between the strands. e. Where strand and a guy are installed on separate bolts on the same pole, a No. 6 copper bonding wire shall be installed between them. It is permissible to bond to the strand with the tail of the guy. f. To avoid cutting and stripping the strand where self-supporting (messengered) cable is used, the grounding or bonding conductor may be attached to the strand with a Fargo GC -167-M, or equal, ground connector. 12. Mobile home parks present some unusual installation problems for cable system operators. The electrical installations in parks and in mobile homes is covered by Article 550 of the National Electrical Code. Certain of the requirements for grounding and bonding will be addressed here: a. Where electrical service is provided underground, power to the unit is supplied by an approved cord, and where the service equipment pedestal is located within thirty (30) feet of the mobile home, the CATV drop grounding connection may be made to the service entrance ground at the service equipment pedestal. b. Where the electrical service is provided under- ground and where service entrance is through metal raceway from the distribution panelboard (breaker panel) in the mobile home to a junction box on the underside of the mobile home,a grounding conductor may be attached to the raceway or the junction box. c.. Where a permanent electrical service is provided from aerial feeders to a mast weatherhead and where the service entrance conductors are protected by metallic conduit or raceway from the weatherhead to the point of entry to the mobile home, the CATV grounding conductor may be attached to the metallic conduit or raceway. - vi - d. Where non-metallic sheathed service entrance cable is installed and where customer installed skirting precludes grounding by one of the above methods, a grounding conductor may be attached to an exposed part of the mobile home frame, i.e., the mobile home tongue. Some judgment must be used in making the ground connection. Since there appear to be no devices specifically made for this purpose, other devices must be adopted to the ser- vice. The Fargo ground connector clamp is one such device that may be suitable. The grounding attach- ment must provide good electrical contact and be mechanically secure. 13. Article 810 purports to apply to receiving antenna systems for cable systems. However, this article has little that can be applied to modern CATV systems. The requirements are to effectively ground the coaxial cables that interconnect antennae and processing equip- ment and ground the tower or masts. These grounds must be bonded to the grounding electrode system in the headend building. 14. While not specifically a part of the Code or our Rules, it is recommended that all equipment racks and other permanently installed equipment be bonded to the building grounding electrode system. The common grounding of all electronic equipment is for the safety of personnel and will tend to prevent undesirable ground currents between items of equipment. 15. Where conditions other than those described herein are encoun- tered, or where a question exists with respect to appropriate grounding and bonding methods or devices, the cable system operator should contact the Chief, Division of Telecommunications at the Commission's Albany offices for an interpretation. Attachments. APPENDIX A HOW TO SELECT SUBSCRIBER DROP GROUND POWER SERVICE GROUNDED? YES NO CONTINUOUS METALLIC COLD WATER PIPE BURIED IN EARTH • FOR AT LEAST 10 FEET? OR GROUNDED BUILDING STEEL? DR 20 FEET OF COPPER WIRE ENCASED IN BUILDING FOOTING AVAILABLE? YES POWER SERVICE GROUNDED TO MATER PIPE? OR TO BUILDING GROUN NO 7 BOND POWER SERVICE GROUND ROD TO COLD WATER PIPE OR TO BUILDING GROUND IF NOT ALREADY BONDED CONNECT GROUND - TO POWER SERVICE GROUND SYSTEM (GROUND WIRE, ENTRANCE CONDUIT, ROD) OR COLD WATER PIPE DR BUILDING GROUND WHICHEVER {{{ RESULTS IN SI-0RTEST GROUND WIRE NO ADVISE CUSTOMER TO HAVE POWER GROUNDED YES CONNECT GROUND TO ANY PART OF POWER SERVICE GROUND SYSTEM (GROUND WIRE, ENTRANCE • CONDUIT, ROD) OR COLD WATER PIPE WHICH IS BONDED TO POWER GROUND V POWER SERVICE NSE.rWR.G®.° NO CONNECT GROUND TO CATV GROUND ROD. BOND CATV GROUND ROD TO POWER SERVICE , GROUND ROD. BOND COLD WATER PIPE TO GROUND RODS CONTINUOUS METALLIC COLD WATER PIPE BURIED IN EARTH FOR AT LEAST 10 FEET? OR GROUNDED BUILDING STEEL? OR 20 FEET OF COPPER WIRE ENCASED INBUILDING FOOTING' YES CONNECT GROUND TO COLD WATER PIPE OR BUILDING GROUND. BONO COLD WATER PIPE• TO BUILDING GROUND °HOUSE POWER GROUND- GROUNDED SERVICE ENTRANCE CONDUCTOR NO CONNECT GROUND TO CATV GROUND ROD. BONO COLD WATER PIPE TO GROUND ROD COMPANY NAME MAILING ADDRESS GROUNDING INITIAL REPORT CITY STATE ZIP BUSINESS PHONE A.C. + COMPANY CODE NO. CommL 4 Lon Use Onfy MANAGER BASIC SUBS MUNICIPALITIES SERVED FROM THIS HEADEND: Indicate (T)own, (V),iUage on (C)ity UL5 e a s epana.te sheet 4on each head - end, dap.2.ieate .i4 .Lt tib necez4any APPROX. NO. OF GROUNDS '& BONDS TO BE CORRECTED: METHOD THIS WAS DETERMINED (Described briefly as possible, use additional sheets if necessary): TIME REQUESTED TO COMPLETE GROUNDING & BONDING: NO. OF TECHNICAL EMPLOYEES: MONTHS APPROVE HOLD Fon Comm.izs.ion Use • Oney IMPORTANT - READ BEFORE SIGNING: The zignatony heneon agnees that hi/hen signatu to :signed on .the date above nepnez entz a tnue and aceunate pictune o4 the status 04 gnound-.ng and bonding in said system and that hi/hen s,ignc tute shaft be binding a4 to aceunaey on any suecessons in -Lntenest to the system on thein assigns to the same extent as tib they themselves had signe.d sccrne. Funthen, a 6a.2se nepont submitted .in this docket, on the Sa.it.une to t-.mety submit a ne pont, may s ub j eel the nepont.Lng company to iines , 4 on- 4e.itune, dti4en6nanehisement on any othen penattLes which th-.15 Commi4zion .is empowered to impose under Antic2e 28 06 the Executive Law o6 the State o6 New York: SIGNATURE: TITLE: DATE SINGED COMPANY NAME MAILING ADDRESS GROUNDING MONTHLY REPORT CITY STATE ZIP THIS'REPORT IS FILED FOR THE MONTH OF: ESTIMATED DROPS STILL IN VIOLATION: NO. OF DROPS INSPECTED & CORRECTED THIS MONTH: NO. OF DROPS CORRECTED TO DATE: COMPANY COIF NO. Comm.i6 ion Use On.ey IMPORTANT - READ BEFORE SIGNING: The zignatony heneon agnee s that h.i'5 /hen zignauune z.igned on th.iz date above nepne4ento a ttue and accunate p.ictune o• the ztaJuo6 gtcoundLng and bonding .in 4a.%d system and that h,i's/hen z-.gnaLune 'sha.e.e be binding ass to accunaey on any z ciccezz ones in intenez t -tb the 4y4 -em on thein azz-Lgnz to the same extent a4 i6 they ,themze.evez had >s.igned za.me. Funthen, a 4a.eze nepont zubm- ted in thL'.s. docket, ot the 4a,i.eune to t.imeey 4ubm-,t a nepon-, may abject the nepon-t-.ng company to £-Lne's, 4on6etitune, d zenPnanc i ement on any others penatt,iez which th,iz Cornm.i6.ion i4 empowered to Ln poz e enders Ant-Lcte 28 o6 .the Executive Law o6 the State oq New Vo'th: SIGNATURE: TITLE: DATE SIGNED: STATE OF NEW YORK COMMISSION ON CABLE' TELEVISION In the Matter of 83-044 RECEIVED MAR 11 1983 Channels and Facilities for Locally) Originated Educational and Public ) DOCKET NO. 90174-A Service Programming ) NOTICE OF PROPOSED RULEMAKING (Adopted: February 23, 1983; .Released: March 3, 1983) PLEASE TAKE,NOTE that the Commission proposes to repeal §595.4 of its rules and addthereto §§590.70 to 590.75 to require that all cable television companies make available cable television channels for use by the public for.local expressions. A copy of §594.4 and of the proposed regulations is attached hereto. On March 24, 1982 we adopted an order in Docket No. 90174, with the same title as above, which requireu that all cable television franchises be amended by January 1, 1984 to make available at least one cable channel for local public use on first-come, first-served, nondiscriminatory basis (9NYCRR 595.4). The regulations established minimum standards which could be expanded by franchise agreement. Essentially, all franchises had to contain provisions that: 1) made available channels and facilities for the use of the State of New'York, the local government, educational institu- tions, and the general public; 2) made available for public use at least 5 hours of channel time each day, 2 hours of which must be between the hours of 5:00 p.m. and 9:00 p.m. and reserve for the State of New York the hour between 7:00 p.m. and 8:00 p.m.; 3) permitted companies which operated 12 channel systems on which the access channel was not used to program the channel for their own purposes; 4) required companies operating larger systems to designate at least one channel for full time access use, and prohibit operators from using the channel for their own purposes; 5) required companies operating systems of 3500 subscribers or more to provide facilities and equipment necessary to record and transmit programming, and 6) designated an entity to operate and administer the access channel. -2 - The regulations also required that if a company amended, renewed or received a franchise after July 1, 1982 it had to comply with the Commission's access rules. Between September 1, 1982 and January 24, 1983 the Commission received approximately 100 applications requesting approval of either renewals, amendments or new franchises which were deficient in one or more respects regarding access requirements. Upon examination it appeared that the,high number of deficient appli- cations was caused by two factors. The primary factor was §595.4(a) which requires a cable television company when applying for an amendment or renewal of its franchise in one municipality to also apply for access amendments in every municipality served from the same headend. New York State cable subscribers are served by 104 companies from 215 separate headends. There are over 1000 certified munici- pal franchises, thus, on an average about 5 municipalities are served from each headend. Actually there are several cable systems which serve as many as 25 municipalities from a single headend. Requiring simultaneous amendments in every municipality served by the same headend is a lengthy and expensive process for the cable company and one which we believe might better be handled by making minimum access requirements directly applicable throughout the State. The second factor in the process comes from §595.4(b)(4) which requires that each franchise contain a provision designating an entity to operate the access channel. To fulfill this requisite, each municipality had to agree not only with the company but among themselves on a single entity for the entire system. We are aware of one system which serves 19 municipalities in which the cable operator claimed it was impossible for the municipalities and the company to agree on an entity within the time limits prescribed by our rules. We have reason to believe that this is a serious problem for several large MSO's, which serve many municipalties from single headends. Our review of the use of access channels also indicated that in some franchises that now require access there is little use by the general public. The foregoing concerns were not specifically brought forth in our original access rulemaking; however, we believe they are serious enough to warrant reconsideration of our original access rules and whether they are serving the purposes originally intended as well as continuing to serve the public interest. In order to alleviate the above-mentioned concerns, we pro- pose changes in two areas. First, to avoid frequent franchise, amendments we propose to make the rules directly applicable to cable companies as minimum standards. Municipalities will be free to bargain for more expansive access provisions,however, until they do, our rules will prevail. Second, we propose to allow the cable companies under certain restrictions, to program the access channel when it is not being used by the public. -3 - Initial comments in this proceeding should be submitted no later than April 6, 1983; comments in response to initial comments should be submitted no later than April 29, 1983. Statutory authority for this Proposed Rulemaking is found in Sections 815 and 816 of Article 28 of the Executive Law. THE COMMISSION ORDERS: That the proposed rules and the regulatory impact statement. -be submitted to the Secretary of State for publication and to other appropriate officials in accordance with the State Adminis- trative Procedures Act and the Executive Law. Commissioners Participating: George A. Cincotta, Chairman; Jerizy A. Danzig, Brian A. Luddy, Theodore E. Mulford, Commissioners ACCESS REQUIREMENTS OF CABLE TELEVISION COMPANIES §590.70 Applicability. Within 120 days after the effective _date of the'se •r-ules every cable television company shall comply with the provisions set forth in sections 590.70 to 590.76.. These sections provide for minimum public access requirements and, in the absence of more extensive requirements in franchises, shall be applicable to all cable television systems, unless specifically precluded or exempted by law or regulation. Nothing herein shall superse'de more'extensive requirements in franchises nor prevent .local governments from negotiating more restrictiverequirements in franchise —. §590.71,Definitions. (a) Public access channel. A cable televi- sion channel permanently designated by theompany;.for use by the general` public' for lawful purposes -on "a first-come, first- served nondiscriminatory noncommercial basis. (b) Twelve channel system. A cable television system with sufficient bandwidth to amplify and distribute to subscribers the twelve standard VHF television channels two through thirteen as defined in FCC Rules and Regulations Section 73.603. §590.72 Access channel:. (a) Every cable television company to which these=provisions'a-re applicable shall designate at least one channel on every cable television system to be used for public access. (b) - On Systems.with 12 channels or less at least 5 hours a day must be made available for access, one hour of which must be between the hours of 5:00 p.m. and 9:00 p.m. (c) On all other systems,' a Illiniinum of one full time activated channel must be made available for public access, and a second full time activated channel must be made available if the first channel is used for more than 16 hours a day for 3 consecutive months. (d) Upon application of a cable television company the Commission may grant a waiver of the requirements of this section upon a showing that compliance would not be economically feasible. §590.73 Equipment and Charges: (a)'.No_charges shall be made for actual channel time when used'for public access purposes.. (b) Every cable television system of 3,500 subscribers or more shall provide facilities and equipment necessary to play back and transmit television programming without material de- gradation within the limitations imposed by the technical state of the art. Page 2 §590.74 Channel Use by Company. If the access channel is not scheduled for public use then the cable television company may use the channel for any lawful purposes, including commercial programmingor leasing of the channel to others for a fee or charge. If the cable channel is being used for any of these purposes, such use of the channel must be relinquished if it receives a requestfor public access use of the channel by any person residing in the franchise area at least seven days prior to the time the company had scheduled` non public use .of the channel. -. §590.75 Operation and Administration of Access Channel. (a) The cable television company shall be responsible for the operation and administration of the access channel unless the franchise pro- vides otherwise. (b) The company shall each day at least once each hour between the hours of 10:00a.m:.. and 10:OOp.m. provide notice on the access channel of its availability for use by the public, such. notice to include a telephone number and address that a person may contact for reservation of the channel. (c) Access time shall be available on a first-come, first- served nondiscriminatory basis, provided however, that the com- pany, in scheduling programming, may consider whether any person is dominating channel time to the exclusion of other users and may adjust its scheduling to assure that the widest possible use of the channel is afforded to members of the community. (d) The cable television company is obligated to accept and exhibit on the access channel all programming unless exhibition of the programming would be in violation of law. (e) The cable television company shall maintain a record of the use of,the designated television channel including the names and addresses of persons and organizations providing programming for such channel, such record to be available locally for public inspection and retained for a period of two years. §590.76 Rules for Access Use. Every cable company must adopt operating rules for access use within 60 days from the effective date of these rules and file such rules with the Commission. The operating rules shallat a minimum include: (a) The production equipment available for public use, if any, and the charges, if any, to be paid for the use -of production equipment, facilities and personnel. (b) Procedures for scheduling of programming. (c) Procedures for registering and resolving complaints regarding channel availability, priorities and usage including a statement that a person who is denied access may petition the Commission for review. Page 3. (d) Reasonable standards of technical quality for video tapes, not produced by the company. § 595.4 of Subtitle R of Title 9 of NYCRR is repealed. These rules shall take effect within 120 days after they are filed with the Secretary of State. 83-045 ..PCERv O MA3i i 1%3. STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of The Establishment, o.f , rules . and •regulat.ion.s.,.) concerning cable television subscriber ) DOCKET NO. 90221 privacy) NOTICE OF PROPOSED RULEMAKING (Adopted)_ February, 23,, 1983 Released: ,March 3, 1983) 1. PLEASE TAKE NOTICE that the Commission proposes to amend Part_ 59x6 pf 9„ N3�RR,lfor,_,ithcc-;,pur;pose;,ofr�,addng r_ egulation govern- ing the procedures, practices and standards to be followed by cable television elat yente pulpscriber privacy. 2. On January 21, 1982 this Commission issued a NOTICE OF INQUIRY) In the Matter of the Establishment-of-Rules—and Regu- lations Concerning Cable Television Subscriber Privacy in Docket Number 90221 (82-011) by which we invited interested parties to, commenton whet er, ou,l present-�rulsu;and regulations concerning interactiye,,,(two1 weY) cable televi ion services should be supple- mented or..otherwise r-evis,edin: anticipation of an industry -wide introduction of such services Uy cable television companies within the State of New York,andwhether current practices involving the gathering, storing and divulging of subscriber information needed to_ ibe :regurl:ate:df, r,Commden:ts,:w re received from several sources; a list"of•respondents is:;annexed hereto, designated Appendix ''A.!'c. , L , 0', 3. There are several laws, both State and federal, designed to protect persons from unwarranted intrusions on their privacy. They fall into two categories;Jone,,prohibits eavesdropping or the interception and d.ivui;g.ence"of-T'rdtected,communications and the other prohibits the .--dIvu-l.gence .of voIun.tarily given information contained in certaln.,recor_dsr: Implicit- in these laws is the currently acceptable -definition of privacy, that is, the right of individuals, groups or institutions to determine for themselves when, how and to whatuextent:jinfarmationabout. them is gathered and communicated to others. However; these laws are not particu- larly applicable to,:.cable..te.lev sionrprivacy problems. 4. There is no question that fast two-way communication net- work can work to the -public's. advantage, however, it also carries the potential for -harm.- .Cable, television companiesnow accumulate information about their subscribers which may, if disclosed, con- stitute an invasion of privacy, such as number and type of pay services. Furthermore, two-way or interactive cable is available in some municipalities in New York and may become commonplace within a few years. Information gathered from such systems would enable the cable company to ascertain an array of information, ' -2- insuding.isucs.sensitive.--areas as:.:.?oo iti a1 .and rgTi ous p efererices' g. A,. of subscr_ ibel s . 5. Privacy problems regarding the collection and divulgence of informa'tior%cabout eo'p1ee rPdalread T haus g1dla z eas POt irieeba'tedito cable" tePe 7v sion. 'the concern for aab�us.i a i es fzromrGosnii-derote-dhrioai6 1e 'ri-d i€he eAV' in whe ch Linfor-matin iy tQ,redoigucentrra�li1ze�dCCoca-tii1onsl`'anal'Sacc`ssed 1 as;aajbnpaLr1ll e sno f: e�,u chiest, 1 azetf burd, nem1-yq 11`L111�lte�te eel ing' al s. i=n if(1ectrbn o fun'ditras rsaiasun brgia,tialata= lirig(shop by kg&alM one)ga ble and store informat- o,n a ril eon pi t1ers7 wh`. cli] i='s`s over le- �ri 6r'-'6 c 7htCi1 7fi vim. i Ze phone lines, terrestial rn�icro=wav s atteellllitee ar� coax -L cable . 6. When subscribers use interactive cable TV5 t�heY,, of en 'convey confidential information concerning themselves to a cen- tralized computer or computersystem. For example, banking services may place the individual's banking records into computer storage; remote medical diagnosis and advice would involve storage of med- ical records; opinion polling,although it clearly has value in many respects, would necessarily involve the compilation of information ' which a person might prefer to remain private. 7; Scattered bits of information can be gathered and can assume a new significance if compiled, compared and aggregated. Indeed, a dossier -like profile on each individual subscriber.could well be generated through information gathered. 8. The Commission's rules and regulations presently deal, in a limited sense, with` the subject to subscriber privacy in the interactive context. Section 596.3(3) entitled, "Protection of Subscriber Privacy", provides as follows: a. No class IV cable television channel (47 CFR, Part 76.5(cc) "A signalling path provided by a cable television system to transmit; signals of any type from a subscriber terminal to another point in the cable television system.") signals may be transmitted from a subscriber terminal without the express written permission of the subscriber; any subscriber terminal capable of transmitting class IV cable television channel signals shall be so designated`asL"to allow the subscriber to prevent or terminate any such .. ,a Lae c :, U i. transmission. l;s; signals nay ue ira. S"'•�^-,C'Y's17-" Lrr'i?iLZu:_ b. Wheneverasubscriber terminal is capable sof transmitting class - IVrcable television LOv 's'ignals , thesubibereshall Lbe notified inawriting `that t he i terminal, has };this capability and' s ijall'bef_givenwritten ce&to j)such -3 - instructions explaining the operation of the terminal and the manner in which it may be activated and deactivated by the subscriber. The Commission feels that its present rules concerning IV cable television channels, while they do afford the subscriber an opportunity to terminate transmissions from the home at will, may not be flexible enough, in light of advancing technology and the commensurate evolution of consumer demands, to properly serve the public interest in an era of two-way telecommunications. 9. The Commission recognizes the potential contribution of interactive services to the economy of the State and the social advancement of its residents. However, acceptance by the public of these new services, and, thus, their commercial development, may well depend upon whether or not subscribers perceive that their privacy is protected. If this assumption is correct, then it will be necessary to assure that not only are the cable systems technologically secure from outside intrusion, but also that the suppliers of the services and their agents and employees are adequately restrained from the utilization of information flowing through the system to the detriment of the subscribers of the services. 10. The Commission recognizes that the time has come to devise a new legal framework to reflect the altered social cir- cumstances that new systems create. Protectable privacy interests must be identified; examination must reveal how interactive media can violate those interests and how effective legal safeguards can be created. It is the objective of the Commission in this rulemaking to formulate a specific legal doctrine to deal with threats to privacy created by cable technology. 11. With respect to the subject of privacy, we have found that: a. Having a one-way, two-way or interactive cable television system in his home does expose a sub- scriber to risk of invasion of his privacy. b. If a cable company leases channels to others, obligations, rights and responsibilities arise between the cable company and the lessor concerning the protection of the information as it flows through the cable system to storage in a terminal. c. The danger of interception of subscriber -generated data exists. However, the solution to this problem is probably better addressed in a statute rather than our rules. -4- d. Information about subscribers is now released by cable companies to outsiders and cable com- panies do sell subscriber lists to outsiders. How is this information used? 12. We also invite comments on the following issues which are not directly solved by the proposed rules. a. What measures may be used to protect against disclosure of information stored in computer terminals, either in New York State or outside the'State? For example, should companies and/or their officers, employees and agents be bonded or tested and licensed; should a restitution fund be established by cable television companies and/or those that use the system? b. How long should information about subscribers be stored; how should that information be expunged? c. Should the federal, state or local government be responsible for determining how subscriber privacy should be protected? d. Is the privacy issue such that cable companies will, by the very nature of the issue, develop sufficient privacy safeguards without governmental regulations? e. What criminal or civil penalties, if any, should be imposed upon companies or individuals who violate a subscriber's privacy? 13. Notwithstanding the above questions the Commission believes that a rule is necessary to prohibit cable companies and other users of the cable system from collecting and divulging any information about a subscriber, except that which is necessary in the conduct of their business. 14. After analysis of the factors outlined above, the present state of the law and the comments received in response to our NOTICE OF INQUIRY, this Commission concluded that it was necessary to institute a new rule which would balance the interests of the .industry and the individual. The rules proposed below will have the effect of protecting individual privacy while not impeding either the provision of interactive services or the evolution of interactive technology. 15. 9 NYCRR section 596.3(e) entitled "Protection of Subscriber Privacy" is hereby added. a -5- Initial comments in this proceeding should be submitted no later than April 6, 1983; comments in response to initial comments should be submitted no later than April 29, 1983. Statutory authority for this Proposed Rulemaking is found in Sections 815 and 816 of Article 28 of the Executive Law. Commissioners participating: George A. Cincotta, Chairman; Jerry A. Danzig, Brian A. Luddy, Theodore E. Mulford, Commissioners. SUBSCRIBER PRIVACY §596.12 Definitions (a) Unless otherwise defined herein all words and phrases shall be accorded the same meaning as given them in section 812 of the. Executive Law. (b) "Individually identifiable information." Any infor- mation that identifies a person as a subscriber to, or user or viewer or any program or service, provided by.a cable television sy€tem or by a cable television company, other than the merefact that the person is a cable television subscriber. (c) "Subscriber." Any person who receives any program transmitted by a cable television system. (d) "Subscriber terminal." Any terminal within the home, business or other location of a subscriber connected to the cable television system and enabling a subscriber to perform various functions relating, to cable television programs. (e) "File." Any information on a subscriber recorded and retained by, and under the control of the cable, television com- pany, its agents, servants or employees, regardless of how the information is stored, recorded or retained. §596.13 Subscriber consent (a) No cable television company shall disclose any indivi- dually identifiable information to any person without the informed consent of the subscriber in writing except as is necessary to provide the cable television program or services requested by the subscriber, or unless such disclosure is required by law. If re- quests for such information is made under the color of law or by government agencies the company shall promptly notify the subscriber, of the request prior to responding if permitted to do so by law. (b) No cable television company shall collect, receive, aggregate or use any individually identifiable information without the informed consent of the subscriber in writing except as is required by law or is necessary to monitor signal quality or un- authorized reception or is necessary to provide the cable television program or services requested by the subscriber, or is necessary to bill the subscriber. A cable television company may collect, receive, aggregate or use bulk (nonindividual) data concerning subscriber services for use in developing new services or existing services. The company shall not make such bulk data available to third parties, whether affiliated or nonaffiliated with the company, without first assuring that the identity of individuals is not ascertainable from the data provided. -2- (c) No cable television company shall monitor individual household viewing patterns or practices without obtaining the informed consent of the subscriber in writing. A cable television company may conduct electronic sweeps of a subscriber's terminal for purposes of monitoring system integrity, signal quality or unauthorized reception or for billing purposes without obtaining the consent of the subscriber. 596.14 Inspection of files (a) A subscriber, upon, written request to the cable tele- vision company, may examine and copy, at his cost, any record, material or document which the cable television company has on file concerning such subscriber. A cable television company shall witllin ten days of receiving such request provide the subscriber with either access to or copies of all individually identifiable information relating to'the subscriber, subscriber household, or user of a subscriber terminal. If any individually identifiable information exists in machine-readable form only, the cable television company shalltranslate the information into understandable, nontechnical language and provide the subscriber with a copy of the translation as well as a copy of the information in machine-readable form. 596.15 Correctionof files (a) If the subscriber demonstrates that the file is incorrect, the cable television company shall, within twenty days after being notified in writing by the subscriber, correct the file and immedi- ately notify in writing the subscriber and any person to whom it has reported any individually indentifiable information inaccurately of its corrective action. (b) If the cable television company disputes the finding of a subscriber as to the correctness of the file, it shall notify the subscriber in writing within twenty days after being noti- fied of the subscriber's findings. If the dispute cannot be re- solved, the cable television company shall attach or incorporate into the subscriber's file a notice that the information is dis- puted and also any statement the subscriber may wish to file indi- cating the information he believes to be incorrect. (c) Whenever the cable television company discloses to a person any individually identifiable information, the correctness of which has been disputed by the subscriber, it must disclose such fact to the person receiving the information and include the subscriber's dispute statement, if any, along with the information. §596.16 Company practices (a) If a subscriber's service is terminated, or if the subscriber revokes his consent in writing given pursuant to §596.13, -3 - the cable television company shall eliminate all individually identifiable information relating to that subscriber and his household from its files except that required to be retained by law, rule or regulation. The company may retain individually identifiable information about the subscriber necessary for its own business purposes. (b) Before obtaining the written consent of the subscriber for any of the purposes contained in §596.13 the cable television company shall notify the subscriber in writing of: 1. the types of individually identifiable information that will be collected, received, stored, aggregated, or used; 2. the purposes for which the information will be used; and 3. the specific rights of the subscriber under §§596.13, 596.14 and 596.15. Failure of the company to notify the subscriber, as required above, shall void any written consent given by the subscriber; 4. if the company complies with the above requirements then the written consent given by the subscriber shall be presumed to have been informed consent. (c) The cable television company shall maintain adequate safeguards to ensure the physical security and confidentiality of any individually identifiable information. (d) A cable television company may compile, maintain and distribute a list containing the names and addresses of its sub- scribers if the list contains no other individually identifiable information and if subscribers are afforded the right to elect not to be included on such lists. Section 596.3(e)(1)(k) of 9 NYCRR Part 596 is repealed. DOCKET NO. 90221 Proposed Privacy Rulemaking APPENDIX "A" 1. Attorney General of the State of New York 2. Direct Mail/Marketing Association, Inc. 3' National Cable Television Association, Inc. 4. New York City - Department of Law 5. New York State Cable Television Association 6. New York State Consumer Protection Board 7. New York State Department of Public Service 8. Office of Communication of United Church of Christ - NYC STATE OF NEW YORK. iCOMMISSION ON CABLE TELEVISION ' In the Matter of Line Extension Practices of Cable ) Television Companies 83-046 DOCKET, NO. 90142-A NOTICE' OF PROPOSED RULEMAKING (Adopted: February 23, 1983 ; Released: March 3, 1983 ) On July 21, 1982, we adopted amendments to section 595 of the rules and regulations of the Commission on Cable Television. The new rules established minimum franchise standards dealing with the provision of cable television services in primary and line ex- tension areas. The rules were effective upon filing with the Secretary of State, and provided that any application for Commission award of a certificate of confirmation or approval of an amendment of a cable television franchise where a cable franchise is awarded, renewed or amended :after October 1, 1982, would be approved by this Commission onlyif the franchise contained the minimum fran- chise standards set forth in the rules. Since the adoption of the rules,'the Commission has had numer- ous opportunities to review line eXtension provisions submitted for its apprdval and has had many discussions,concerning the new rules and their application with municipalities, the cable television industry, and the NYS Cable Television Association. We now propose to amend section 595.5 so that the section will more accurately reflect our desired goal of franchise standards designed to promote a,construction schedule providing for maximum penetration as rapidly., as possible within limitations of economic -feasibility. The technical amendments proposedherein will satisfy the legislative mandate asset forth in Executive Law, section 815, as well as the public' interest. 1. The definition of."P" in the formula which is used td determine the contribution in aid of construction should be changed. "P" is -a factor in the fraction that', relates to the con- tribution to be made by the company. The rules currently define "P" as "the minimum number of dwelling units per mile which would require the company to provide service in the primary 'service area." By defining "P" asthe lowest number of the ,four subdivisions in the definition of,'primary service area, it. may' be possible to have an unreasonably low number which does not accurately reflect the operations of a company in a given municipality. A more accurate -2 - reflection of what was attempted to be accomplished by the rules would be to limit the definition of "P" to the lower of 35 homes per mile, or the average density in those areas already constructed, and those areas which must be constructed according to the terms of the franchise. 2. The date by which cable television services must be made available to those potential subscribers who have made a contri- bution in aid of construction is currently 30 days from the cable television company's receipt of pole attachment agreements. Be- cause of numerous factors which may affect a company's ability to 'construct, such as availab}lity of construction crews, weather conditions, and availability of equipment, we believe it would be in the public interest to change the period within which construc- tion must be completed from 30 days to 90 days. 3. The current rules require that every time a new subscriber is added to a particular line extension, the contribution in aid of construction required of the new subscriber must be determined by applying the new factors to the formula set forth in the rules. Therefore, subscribers requesting service in a line extension area subsequent to the initial build of the area would pay a lower con- tribution in aid of construction than did the initial subscribers, although the initial subscribers will receive a rebate one year subsequent to their contribution. We fear that there may be a possibility that some potential subscribers, seeking to lower their contribution in aid of construction, will refrain from sub- scribing to cable television services in a line extension area until their neighbors have done so at a greater cost. Since experience has proven that line extension areas are most likely to be con- structed when the number of initial subscribers is sufficient to make each subscriber's contribution in aid of construction afford- able, we believe that potential subscribers should be encouraged to join the system at the first opportunity to do so. We further believe that potential subscribers will be more likely to join the system initially if they know the contribution in aid of construc- tion .is a constant for one year. Additionally, we believe it is administratively easier and far more practical for a cable company to be able to respond to a request for service in a line extension area by giving a fixed dollar amount immediately in response to a. request for service rather than having to conduct a new survey. Therefore, we propose to change the rules so that the formula used to determine the contribution in aid of construction will be calcu- lated annually. 4. The rules currently require a refund to be paid to previous subscribers as new subscribers are added to a Line extension. We believe it would be in the public interest to clarify that the cable television company will not be required to make a refund to a pre- vious subscriber who does not inform the cable television company L.7 -3- of his or hex new address. Comments on the regulatory amendments proposed herein may be submitted to the Office of the Commission on Cable Television at the Tower Building, Empire State Plaa, Albany, New York 12223, (518) 474-4992, through April 6, 1983.Reply cormpents maybe submitted through April 29. 1983. BY ORDER OF TIE COMMISSION Commissioners Participating: George A. Cincotta, Chairman; Jerry A. Danzig, Brian A. Luddy, Theodore E. Mulford, Commissioners ADDENDUM Subdivisions (a) and (b,) of section 595.5 are amended to read as follows: 595.5 Requirements for construction of cable television plant and pro- vision of cable television services. (a) Definitions 1. Primary service area shall include each of the following within the franchised area: those areas where cable television plant has been built without a contribution in aid of construction by subscribers; ii. those areas where the cable television company is obligated by the terms of its franchise to provide cable television service without a contribution in aid of construction by subscribers; any area adjoining an area described in subparagraph i or ii of this paragraph and which contains dwelling units at a minimum rate of 35 dwelling units per linear mile of aerial cable. iv. [if the average number of dwelling units per linear mile of aerial cable in areas described in subparagraphs i and ii of this paragraph (the average is to be determined by dividing the number of dwelling units in areas described in subparagraphs i and ii of this paragraph by the number of linear miles of cable in the same areas) is less than 35, then] any area adjoining an area described in subparagraphs i and ii of this paragraph and which contains at least the same number of dwelling units per linear mile of aerial cable as is the average number of dwelling units per linear mile of cable in areas described in subparagraphs i and ii of this paragraph. (The average is to be determined by -2 -- dividing the sum of the dwelling units in areas described in subparagraphs i and ii of this paragraph by the number of linear miles of cable in the same areas). 2. Line extension area shall be any area within the franchised area which is not the primary service area. (b) Where a cable television franchise is awarded, renewed or amended after October 1, 1982, the franchise will be confirmed or the amendment will be approved by the commission only if the franchise contains the following additional minimum franchise standards: 1. that within five years after receipt of all necessary operating authorizations cable television service will be offered throughout the authorized area to all subscribers requesting service in any primary service area. 2. that cable television service will not be denied to potential subscribers located in line extension areas who are willing to con- tribute to the cost of construction in accordance with the following formula: C CA LE P = SC C equals the cost of construction of new plant; CA equals the average cost of construction per mile in the primary service area. P equals the lower of 35 or the average number of dwelling units per linear mile of aerial cable in areas described in subparagraphs i and ii of paragraph 1 of subdivision (a) of this section. [the minimum number of dwelling units per mile which would require the company to provide service in the primary service area;] LE equals the number of dwelling -3 - units requesting service in the line extension area; SC equals sub- scriber contribution in aid of construction in the line extension area. i. Whenever a potential subscriber located in a line exten- sion area requests service, the cable television company shall, within 30 days of the request, conduct a survey to determine the number of potential subscribers located in the line exten- sion area and shall inform each of the potential subscribers of of the contribution in aid of construction that may be charged. The cable television company may require prepayment of the con- tribution in aid of construction. The cable television company shall apply for pole attachment agreements within 30 days of, its receipt of the contribution in aid of construction. Cable tele- vision services must be made available to those who made a con- tribution in aid of construction within [30] 90 days from the receipt of pole attachment agreements by the cable television company. ii. The contribution in aid of construction shall be in addition to the installation rate set forth in the franchise. During a five-year period commencing at the completion of a particular line extension, a pro -rata refund shall be paid to previous subscribers as new subscribers are added to the parti- cular line extension; the amount of the refund, if any, shall be determined by application of the formula [each time a new subscriber is added] annually. The refunds shall be paid annually v.- -4 - to subscribers, or former subscribers, entitled to receive them. The company shall not be required to provide refunds to any previous subscriber otherwise entitled to a refund, who is no longer at the same address and who has not informed the com- pany of the subscriber's address. 3. that cable television,service will be provided to any subscriber who demands service and who is located within 150 feet of aerial feeder cable, and that the charge for the installation for any subscriber so situated will not be in excess of the installation charge specified in the franchise. 4. Nothing in paragraph 1 of this subdivision shall be construed to preclude: i. the provision of cable television services by the franchisee in a line extension area without assessing a contribution in aid of construction; or ii. the inclusion in a cable television franchise of a provision establishing a primary service area which includes at least all of those areas which are in the primary service area as defined in subdivision (a) of this section. 5. Nothing in paragraph 2 of this subsection shall be construed to preclude: i. the discounting or the waiver of the maximum contribution in aid of construction charge a cable television company can charge a subscriber pursuant to paragraph 2 of this subdivision; or ii. the inclusion of a provision in a cable television franchise -5- establishing a formula to be used to determine the contribution in aid of construction charge which formula is different than the formula set forth in paragraph 2 of this subdivision, provided that the formula included in the franchise does not require payment by the subscriber in a line extension area of a higher contribu- tion in aid of construction charge than would result from the use of the formula set forth in paragraph 2 of this subdivision. 83-047 STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of Amendment of Parts 598 of the ) DOCKET NO. 90265 Commissions Rules ) NOTICE OF PROPOSED RULEMAKING (Adopted: February 23, 19.83; Released: March 3, 1983) Part 598 of the Commission's Rules sets forth the procedures to be followed by landlords making an application to this Commission requesting the establishment of a reasonable fee to be paid to the landlord by a cable television company installing cable television facilities on the landlord's property. Part 598 was adopted in 1973 pursuant to the authority vested in this Commission by Executive Law, §828.Section 828 of the Executive Law prohibits the payment of a fee to a landlord by a cable television company in return for allowing cable television facilities on a landlord's property in excess of an amount set by this Commission. Section 828 of the Executive Law and part 598 of the Commission's rules was the subject of judicial review in the lawsuit brought by Jean Loretto against Teleprompter Manhattan CATV Corp. The lawsuit was instituted in New York Supreme Court, and has gone through numerousappeals including one to the Supreme Court of the United States. The facts of that lawsuit are sufficiently set forth in the reported 91ecisions of the courts, and therefore will not be repeated here. 11 The Supreme Court of the United States held that §_828 of the Executive Law is a permissible exercise of. the State's power but so frustrates property rights that compensation must be paid. It remanded the case to the State of New York Court of Appeals to consider whether or not the statute and the Commission's Rules provide just compensation to a landlord whose property is used for the installation of cable television facilities. The State of New York Court of Appeals, by decision handed down February 17, 1983, upheld theconstitutionality of the statute and the Commission's Rules with the exception of section 598.3 of the Commission's rules,, which the court declared invalid. We have considered the written decisions of the Supreme Court of the United States and the New York State Court of Appeals, and we take this opportunity to propose amendments to part 598 of our rules so that the rules as proposed will protect the constitutionally -2 -- guaranteed property rights of landlords as well as promote maximum penetration of the cable television industry as rapidly as feasible. The first proposed amendment would change section 598.1 so that part 598 deals with cable television facilities on a landlords property rather than cable television service. The proposed change is to make clear that part 598 of the Commission's rules deals With cable television facilities on a landlords property for purposes of serving tenants in the building as well as "crossover" purposes of serving adjacent buildings. A written notice requirement is proposed so that a cable television company must provide written notice to a landlord prior to installing cable television facilities. It is proposed that the notice indicates that the landlord is entitled to just compen- sation which shall be determined by the New York State Commission on Cable Television. The court found section 598.3 of our rules to be invalid be- cause the 60 day limitation on the right to apply to this Commission for establishment of a fee was not related in any way to a notice requirement, and therefore it was possible for the limitation to run and foreclose the possibility of a landlord applying for a fee prior to the landlord's knowledge that his property had been used for the installation of cable television facilities. We propose to amend the section to maintain a 60 day limitation,but to have the 60 days commence with the provision of a notice to the landlord. Also proposed is a section that limits the amount of just compensation that can be set by this Commission to $1.00, absent a hearing and determination that just compensation would be in excess of $1.00. The hearing may be conducted on the Commission's own motion or in response to the request of a landlord. However, a landlord may only request a hearing if he has already made a timely application pursuant to part 598 of the rules, and received a Commission determination that just compensation is $1.00 or less. Comments on the regulatory amendments proposed herein may be submitted to the Office of the Commission on Cable Television at the Tower Building, Empire State Plaza, Albany, New York 12223 (518-474-4992) through April 6, 1983. Reply comments maybe submitted through April 29, 1983. By Order of the Commission Commissioners Participating: George A. Cincotta, Chairman; Jerry A. Danzig; Brian A. Luddy, Theodore E. Mulford, Commissioners. DRAFT:AJM/sgk 2/22/83 PROPOSED AMENDMENTS Part 598 of the Rules of the Commission on Cable Television are amended to read as follows: Part 59,8 - Applications by Landlords Pursuant to Section 828(1)(b). 598.1. Except as provided in subdivision (2) hereof, no land- lord shall demand or accept any payment from any cable television` company in exchange for permitting cable television [service] facilities on or within said landlord's property or premises. 598.2. A landlord shall be entitled to the payment of [a reasonable fee], just compensation, pursuant to Section 828(1)(b) of the Executive Law, upon Commission approval of an application for such [fee] compensation. 598.3 A cable television company shall provide written notice to a landlord prior to installing cable television facilities upon his property. The notice shall indicate that the landlord is. entitled to just compensation which shall be determined by the New York State Commission on Cable Television upon application by the landlord in accordance with Part 598 of the Commission's Rules. [598.3] 598.4 Any application made pursuant to this Part shall be filed within 60 days of the effective date of this Part or within 60 days following [the commencement of cable television ser- vice by means of the facilities to which the application relates,] the provision of a notice as required by Section 598.3, whichever is later. [598.4] 598.5 Such application shall set forth specific facts justifying. a fee; such facts should include, but need not be limited to, a showing of (a) the nature and extent of any materials placed on the landlord's property, (b) the location and the amount of space -2- occupied by such materials, (c) the previous use of such space, (d) the level of rents received from tenants of the premises and the. location and amount of space occupied by such tenants ,[and] (e) [any amounts agreed to or paid, and] any provisions made.pur- suant to, Section 828(1) of the Executive Law[.], and (f) any amounts 'agreed to or paid pursuant to Section 828 (2) of the Executive Law. [598.5] 598.6 Copies of the application filed with the Commission shall be served upon all tenants in the building or buildings for which application is made, upon the cable company or companies Taking the installation, and upon the municipality or municipalities in which the building or buildings are located. [598.6] 598.7 Any party served with an application and any other interested party shall be entitled to file comments in support of, or in opposition to; an application under this Part. Such comments shall be filed within twenty days of service of the appli-, cation. A copy of any such comments shall be served on the appli- cant. The comments may include a showing of any alleged benefits conferred upon the property by the installation. 598.8 If the Commission finds that just compensation for the installation of cable facilities as described in the application is not in excess of $1.00, it shall issue an order setting forth the amount of compensation to be paid. If the commission finds that just compensation for the installation of cable facilities as des- cribed in the application may be in excess of $1.00, it shall conduct a hearing pursuant to section 816(3) of the Executive Law and sections 590.51 through 590.59 of the Commissions Rules. If an applicant for compensation files a written request for a hea.rin.z within 20 days from the release date of a Commission order which sets compensation at $1.00 or less, the commission shall conduct a hearing pirsuant to section 816(3) of the Executive Law and sections 590.51 through .590.59 of the Commission's Rules. A landlord may not request a hearing prior to a Commission decision ''on an application for compensation pursuant to this. part. CLERKS OFFICE — FYI NEW YORK STATE COMMISSION ON CABLE TELEVISION TOWER BUILDING, EMPIRE STATE PLAZA ALBANY, N.Y. 12223 (518) 474-4992 GEORGE A. CINCOTTA - Chairman Honorable William R. Shaw Mayor City of Ithaca 108 East Green Street Ithaca, New York 14850 MICHAEL 1!. PRENDE11G'.S;' Vice -Chairman JERRY A. DANZIG Commissioner BRIAN A. LUDDY Commissioner THEODORE E. MULFORD Commissioner EDWARD P. KEARSE xecutiue Director FEB241983n eul('$ OFFICE ! Z ttIma,1 Y. !? Re: American Community Cablevision - City of Ithaca Docket No. M51171 Dear Mr. Shaw: In accordance with Part 592-1.2 of our Rules, the Company has notified the Commission it has applied to your municipality for an amendment to its cable television franchise. The purpose of this letter is to advise you that our Commission staff is available to you for assistance and consultation prior to your entering into a formal amendment to your franchise with your cable television company. In providing such assistance, the Commission staff will not participate in the decision-making process. Our role is to assist, municipal officials in making informed judgements by providing advice and guidance on the adequacy and methods of using the information offered by the franchisee cable company in support of the proposed amendment. Enclosed for your reference are materials pertinent to cable television franchise amendments. If you have any questions, or feel we can be of assistance ' in any way, please do not hesitate to write or call any of the following staff members. Page 2 Donald P. Buckelew Municipal Assistance and Policy Development (518) 474-2212 John A. Wright Accounting and Financial Analysis (518) 474-2471 Kenneth L. Foster Telecommunications (518) 474-1324 John R. Harder Counsel (518) 474-1359 cerely, //f 49fin A. Wright Chief Accountant Enclosures: Part 592 of the Commission's Rules Rate Discussion JAW;glr 2/1/83 PROPOSAL TO CITY OF ITHACA COMMbN COUNCIL FROM ITHACA CITY CABLE COMMISSION RE: AMERICAN COMMUNITY CABLEVISION REQUEST FOR RATE INCREASES 1. On April 30, 1982, American Community Cablevision (hereafter ACC), a division of American Television and Communications Cor- poration, made a written request for an increase in service rates along with several related changes in the City of Ithaca cable franchise agreement. After careful consideration of the proposed rate increases and franchise amendments, the City of Ithaca Cable Commission herein submits its recommendation to the Charter and Ordinance Committee of Common Council. 2. The ACC Division of ATC holds 18 cable television franchises in Tompkins County. There are 18,898 subscribers and 386.5 mites of plant in this system. Of these totals, the City of Ithaca contributes 6581 subscribers. and 76 miles of plant. Thus, the City of Ithaca has approximately 35% of the subscribers and 20% of the plant miles of the county -wide system. The density of the system excluding the City of Ithaca is 39.7 subscribers per mile. 3. ACC has provided the City Cable Commission with audited statements of its financial situation. These statements are for the entire system which ACC currently operates in Tompkins County. No financial information pertaining specifically to operations in the City of Ithaca franchise area has been provided, in spite of repeated requests for such information from the City Cable Commission. The ACC response to these requests has been that separate records for the city do not currently exist and that accurate data could not be generated. Audited statements for the entire system show a loss of $282,069 for the year ending June 30, 1982. The City Cable Commission has indirectly made a determination of ACC's financial position in the City by taking a percentage of the total system revenues based on the percentage of subscribers in the City of Ithaca and factoring a percentage of the total system cost based on the percentage of plant miles in the City of Ithaca. Although this method only approximates revenues and costs, the result indicates that ACC is currently making a profit in the City of Ithaca, system -wide losses. notwithstanding. Further evidence of this can be seen in the density figures (expressed as the number of subscribers per mile). The city density at 86.5 subscribers per mile is considerably higher than that for the remainder. of the system at 39.7 subscribers per mile. With these figures in hand the City Cable Commission feels that no increases beyond what we have recommended be made without specific financial information for the City of Ithaca franchise area. 4. The Cable Commission's recommendation for increases in service rates should provfce ACC with substantial supplemental revenues and incentives to provide new services (in particular: satellite relayed.programmirig). The $.50 increase in basic service rates should generate an additional $40,080 per year in revenues, based on current subscriber levels. 5. ACC currently has installation income of $105,548 per year for the entire Tompkins County system. The installation income for • • 'Jl the City of Ithaca is approximately $37,000 per year, based on 35% of the system subscribership. The Cable Commission's reccomendation of a 25% increase in installation rates will result in $9,200 in additional yearly revenue. 6. ACC currently has $176,965 in "other subscriber revenue" income for the Tompkins County system. "Other subscriber revenue" consists of extra outlet charges, reconnection charges, service transfer charges, and relocation charges. The City of Ithaca portion of the "other subscriber revenue" is approximately $62,000, when based on a 35% share of the system subscribership. A 50% increase in the charges listed in this paragraph is recommended by the City Cable Commission. This will result in an additional $31,800 in yearly revenue to ACC. 7. The total amount of new revenue -generated for ACC by the -Cable Commission's recommended changes in rates for the City of Ithaca is approximately $81,000 per year. 8. The Cable Commission's recommendation also includes a rate for an "augmented service" effective upon implementation of the satellite relayed services. No figures were provided by ACC as to the cost of equipment installation (TVRO earth station) required to provide this service, but the Cable Commission has determined that average cable industry costs for the complete installation range from $80,000 to $120,000.. Installation of an earth station will incidentally provide satellite service to the entire Tompkins County - system. Both the Cable Commission and ACC estimate that one third of the current subscribers would take this service.. This would mean an additional $24,800 per year in revenue generated in the City of Ithaca and $72,000 per year generated county -wide. 9. "Basin service", as currently defined by the franchise, consists of 20 channels of cable television service. In order toreceive the channels beyond channel 13 the subscriber currently has the option, of renting a converter from ACC or providing his own. Under ACC's proposed rate changes, "basic service" would be reduced in scope to the 12 channels which are commonly recieved without the aid of an outboard channel converter, with an additional charge for the so - termed "mid -band" and "super -band" channels (14-22). This charge will include the costs of supplying a channel converter. At least -four satellite signals would be placed in the mid -band channels. There is a demand for these new satellite signals in the Ithaca area, and the Cable Commission accordingly recommends this change in basic,service take place upon implementation of the satellite services. 18. ACC has proposed several other changes in the franchise. The first of these would change the wording of the first paragraph. We do not recommend implementation of this change as the suggested change will cause problems in the interpretation of city zoning ordinances. We expect ACC to rewrite -this request for resubmission at a later date. 11. There are several added paragraphs regarding community access TV in the ACC proposal. These are presently required.by the New York State Cable Commission. 12. The City of Ithaca Cable Commission has made every effort to be fair and equitable to both ACC and the citizens of Ithaca in the current presentation of proposed rate increases. Itis. difficult to make such recommendations without complete financial data from the franchisee. ACC apparently desires that discussion Ti.Z of rate increases be limited to issues affecting the entire Tompkins County system; as previously mentioned, this has so far precluded Cable Commission access to City of Ithaca financial data. CITY OF ITHACA CABLE COMMISSION RECOMMENDATION TO COMMON COUNCIL REGARDING AMERICAN `COMMUNITY CABLEVISION DIVISION OF ATC REOUEST FOR CHANGES IN • THE CITY OF ITHACA CABLE TELEVISION FRANCHISE 1. Unchanged. Paragraph 11 (b) be changed to read: 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, subjectonly to the payment of installation fees and monthly charges which are hereby established as follows. 1). Residential establishments [maximum charges]: First installation charge- $25.1'3 Each additional installation- $15.88 Commercial establishments [maximum charges]: First installation charge $35.00 Each additional installation- $25.88 Custom installation, hidden wire, underground drop in area where drops are otherwise aerial - Monthly rental charges: Time + material + 129: First installation, basic service including 21 channels- $6.80 Converter charge (subscriber option) - $2.08 Each additional installation- $1.50 Upon addition of three or more satellite services to the midband channels, basic service shall be defined as channels 2-13. Augumented basic service shall be defined as channels 2-13 and B through J in the mid- and super- bands. Monthly rates will then be as follows: Basic service including 12 channels- $6.08 Each additional outlet for basic service- $1.50 Augmented basic service -including 21 channels- 19.00 Each additional outlet for augmented basic service- $4.58 2). Suspended service: No charge shall be made for voluntary disconnection and no rental charge shall be made white dis- connected. Reconnection charge- $10.80 3). The user shall have the privilege of selling or transferring the service to a different party for a $15.00 transfer charge. 4). Changing location of cable: $7.50 for moving to another location in the same room. $10.80 for moving to another location in the same living quarters. 5). Any user who has paid the regular established residential installation fee and moves to another residence within the city may have this service transferred for a $15.80 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 $10.08 maximum shall be allowed for reconnection after the past due account is paid. 7). Unchanged. '8). Unchanged. 9)Y. Unchanged. 10). Unchanged. 11(c). Unchanged. 32(a) Be changed to: "American Television and Communications Corporation shall provide one full separate single channel for public access programming on a demand basis. A second channel shall be provided within 6 months of a formal municipal request if the first such channel has been in use eight hours a day, four or more days per week, for a three month period." 32(b). Be changed to: "This single channel shall be designated as channel 13 in the basic service group." 32(c). Unchanged. 32(j). Unchanged. Section 32(m) be added as follows: "32(m). American Community Cablevision will maintain a record of the use of the designated terevision channel(s); such record to be available locally for public inspection and retained for a minimum period of two yearn." Section 32(n) be added as follows: 4) "32(n). American Community Cablevision will prohibit the public access channel from being used for the promotion or sale of commercial products or services, including advertising by or on behalf of candidates for public office." Section 32(o) be added as follows: "32(o). The franchisee shall provide notice to each subscriber, at intervals of not more than one year, as to the availability of the television channel and production equipment and theiddress and telephone number of the pereon responsible for the operation of the access channel(s)." 38. Be changed to: "ATC agrees to supply a written statement to each new customer prior to commencing installation for serviceto such customer and to all existing customers. prior to the effective date of any rate change and at least once per year.. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook—up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and complaint procedures, both within ATC and those available through the City of Ithaca." CHUBB GROUP of Ins trance Companies CHUBS 1990 Post Oak Boulevard, Suite 1100, Houston, Texas 77056 • Phone: (713) 623-0160 August 10, 1982 RECO Its JEt == SFP231882 Cl1Y LtElii('S' DJF1CF Ithaca, H. ¥. ', i nr, Re: Principal: ATC dba American Community Cablevision previously listed as Ceracche Television Corp. a Division of ATC Bond No.: 838224. Federaj. Insurance Company Bond No.: 8093 56 73 Gentlemen: Tie are now pleased to act as Surety on behalf of the above captioned bond In that regard, we are currently replacing the Seaboard Surety Company on all existing bonds. Please find enclosed our repiacernt bond effective 10-6-82 • , The Seaboard Surety Company will be contacting you for cancellation of their bond. Thank you for your cooperation. Sincerely yours, FEDERAL INSURANCE COMPANY i ;:// , n .7 g i/"1-1 / r13hilip N. Bair _ v Surety Department PN3:vr encl. ,^''ti' .. S ..•..� : mak...._``':.-.�.y�,. , _. CHUBB CHUBB GROUP of Insurance Companies 51 John F. Kennedy Parkway, Short Hills, New Jersey.07078 BOND 2MOUNT $5,000.00 FEDERAL INSURANCE COMPANY BOND NO. 8093 56 73 FRANCHISE BOND KNOW ALL MEN BY THESE PRESENTS: American Television & Communications Corporation dba American CoMmunity Cablevision previously listed as Ceracche Television That we, Corp. a Division of American Television & Communications Corporation (hereinafter called the "Principal"), as Principal, and the FEDERAL INSURANCE COMPANY, a Corporation of the State of New Jersey and duly authorized to transact business in the State of New York , (hereinafter called the "Surety") , as Surety, are held and firmly bound unto City of Ithaca (hereinafter called the "Obligee".), as Obligee, in the sum of Five Thousand and no/100 ($ 5,000.00 ) lawful money of the United States of America, for which payment, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, THAT WHEREAS, the Principal has entered or is about to accept from the Obligee the grant of a Franchise from Obligee for the construction, operation, and maintenance of a Community Antenna Television System, pursuant to and in accordance with the terms and conditions of Franchise agreement, February, 1977 - reference to which is hereby made, and which is hereby made a part hereof. HOWEVER, this bond does -not provide any coverage for damages arising out of Copyright Infringements. NOW, THEREFORE, this bond is conditioned upon the faithful performance by the Principal of all of the terms of Franchise Agreement, February, 1977 and the Franchise granted under said Franchise agreement, February, 1977 in the event Principal shall fail to comply with any one or more of the provisions of saidFranchise agreement, February, 1977 or of any Franchise issued to the Principal hereunder, there shall be recoverable jointly and severally from the Principal and Surety any damages or loss suffered by the Obligee as a result thereof, including abandonment of any property of the Principal which may be in default, plus a reasonable allowance for attorney's, fetes and costs, up to the full amount of the bond, said condition to be a continuing obligation for the duration -of such Franchise and any renewal thereof and thereafter until the Principal has liquidated all of its obligations with the Obligee that may have arisen from the acceptance of said_Franchise or - r-enewal---by the Principal or -from its exercise of any privilege_ therein _granted. A, written statement of such default with full details thereof shall be given to the Surety promptly, and in any event, within thirty (30) days after the . Obligee shall learn of such default. No claim, suit or action under this bond by.reason of any such default shall be brought against the Surety unless asserted or commenced within twenty-five (25) months after the effective date of any termination orcancellation of this bond. Page 1 of 2 Form 15-02-81 (Formerly 11454) ourcreo R-8527 (7M) QT. • This bond may be terminated or cancelled by the Surety by Thirty (30) days prior notice in writing from the Surety to the Obligee, such notice to be given by Certified Mail. Such termination or cancellation shall not affect any liability incurred or accrued under this bond prior to the effective• date„of. such termination or cancellation. No right .of action shall accrue under this -bond to or for the use of any person other than the expressed Obligee herein, its successors or assigns. IN WITNESS SOF, the above bounden Principal and the above bounden Surety have hereunto set their hands and seals, all on the 6th day of - October , 19'82 • American Television & Communicatcis Corportio n dba American Community Cablevision Principal Marg F. Widelitz s't': Treasurer • rer..DERAL INSURANCE COMPANY Surety Tambria Hyche Attorney -in -Fact a ,1 Certified Copy of POWER OF, ATTORNEY Know all Men by these Presents, That the FEDERAL INSURANCE COMPANY, 100 William Street, New York, New York, a New Jersey Corporation, has constituted and appointed, and does hereby constitute and appoint Philip N. Bair, Marc Dodson, Vita Ragusa, Tambria Hyche, Phillip M. Shaw, Vance A. Tucker and Paul H. Stewman of Houston, Texas each its true and lawful Attorney -in -Fact to execute under such designation in its narne and to'affix its corporate seal to and deliver for and on its behalf as surety thereon or otherwise, 'bonds or obligations given or executed in the course of its busi- ness. and any instruments amending or altering the same, and consents to the modification or alteration of any instruments referred to in said bonds or obligations. In Witness Whereof, the said FEDERAL INSURANCE COMPANY has, pursuant to its By -Laws, caused these presents to be signed by its Assistant Vice -President and Assistant Secretary and its corporate seal to be hereto affixed this llth day of Marc STATE OF NEW JERSEY } County of Essex On this llth day of March 19 82 before me personally came Richard D. O'Connor to me known and by me known to be Assistant Secretary of the FEDERAL INSURANCE COMPANY, the corporation described in and which executed the foregoing Power of Attorney, and the said .Richard D. O'Connor being by me duly sworn, did depose and say that he is Assistant Secretary of the FEDERAL INSURANCE COMPANY and knows the corporate seal thereof; that the seal affixed to the foregoing Power of Attorney is such corporate seal and was thereto affixed by authority of the By -Laws of said Company, and that he signed said Power of Attorney as Assistant Secretary of said Company by like authority; and that he is acquainted with George McClellan and knows him to be the Assistant Vice -President of said Company, and that the signature of said George McClellan subscribed to said Power of Attorney is in the genuine hand- writing of said George McClellan and was thereto subscribed by authority of said By -Laws and in deponent's presence. ss: FEDERAL INSURANCE COMPANY By George McClellan Assistant Vice-Presiden t Richard D. O'Connor Assistant Secretary 1 gOTAR y \; 1 PUBLIC/ S...1:4' J EB: -;"4f Form 21-10-41 (Ed. 10-74) (NYSO) Acknowledged and Sworn to before me on the date above written. Notary Public PATRICIA RYAN NOTARY PUBLIC OF NEW JERSEY My Commission Expires December 11, 19 83 CITY OF SHORT HILLS County of Essex )} ss. I, the undersigned, Assistant Secretary of the FEDERAL INSURANCE COMPANY, do hereby certify that the following is a true excerpt from the By -Laws of the said Company as adopted by its Board of Directors on March 11, 1953 and amended May 27, 1971 and that this By -Law is in full force and effect. "ARTICLE XVIII. Section 2. All bonds, undertakings, contracts and other instruments other than as above for and on behalf of the Company which it is authorized by law or its charter to execute, may and shall be executed in the name and on behalf of the Company either by the Chairman or the Vice -Chairman or the President or a Vice -President, jointly with the Secretary or an Assistant Secretary, under their respective designa- tions, except that any one or more officers or attorneys -in -fact designated in any resolution of the Board of Directors or the Executive Committee. or in any power of attorney executed as provided for in Section 3 below, may execute any such bond, undertaking or other obligation as provided in such resolution or power of attorney. Section 3. All powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, either by the Chairman or the Vice -Chairman or the President or a Vice -President or an Assistant Vice -President, jointly with the Secretary or an Assistant Secretary, under their respective designations." - And 1 further certify that I have compared the foregoing copy of the POWER OF ATTORNEY with the original thereof and the same is a correct and true copy of the whole of said original Power of Attorney and that said Power of -Attorney has not been revoked. - • - - And I further certify that said FEDERAL INSURANCE COMPANY is duly licensed to transact fidelity,and surety business in each of the States of the United States of America, District of Columbia, Puerto Rico, and each of -the Provinces of Canada : with the exception of Prince Edward Island; and is also duly licensed to become sole surety on bonds, undertakings: etc., permitted or required by law. _;_ Given under my hand and the seal of said Company at Short Hills, N.J., this 6th day of October 19 82 IlM-Aa/y) Assistant Secretary '?J Cnif eb Ziaf es Zenaf e WASHINGTON, D.C. 20510 December 7, 1981 Mr. Joseph A. Rundle City Clerk 108 East Green Street Ithaca, New York 14850 Dear Mr. Rundle: iN AL DEC 1O 1$8i cm' tors OFFICE Ithaca, w, Y. Thank you for contacting me and please excuse the delay in replying. I appreciated receiving your comments on the cable provi- sions of S. 898, the Telecommunications and Deregulation Act. I am aware that many local officials felt strongly that they should retain certain rights with respect to those companies operating within their jurisdiction. Their position is that the cable industry is primarily a monopoly and should be subject to rate regulations like a utility company. On the other hand, the cable industry feels it has to compete with many other entertainment industries. While cable companies usually do not compete with other cable companies for the same business, the Federal Communi- cations Commission (FCC) has regulated the franchise fees for the last nine years. As you know, these fees are the initial financial agreement between the local government and the cable company. Several of my colleagues -and I believed a compromise was possible whereby the local officials would maintain the right to regulate the cable rates and enter into their own franchise fee negotiations with the FCC ensuring that franchise fees were not excessive. Since New York State has a "Sunset Pole Law" which will be reviewed in 1983, I believe it proper to allow the New York State Legislature to address the "pole" issue at that time. While Senator Goldwater's amendment removed the cable provi- sions from the bill, the Communications Subcommittee of the Sen- ate Commerce Committee has committed itself to holding hearings on this entire subject where all cable industry issues will be discussed. While I am not a member of the Commerce Committee, I will certainly be watching with interest the outcome of these hearings. Mr. Joseph A. Rundle December 7, 1981 Page 2 Again, thank you for letting me have your thoughts. Sincerely, /' Alfonse D'Amato United States Senator AD:tg } AMERICAN COMMUNITY CABLEVISION A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP 519 West State Street, Ithaca N.Y.14850 (607)2723456 City Clerk City of Ithaca, Ithaca, New York 14850 0U.S.POSTAGE OCT21'82 = d i 4 fl RUNDLE A\/ (j is s dLii �( /PR `fin' 1981c car CLEWS OFFICE Ilii ca, N. Y. J i AMERICAN COMMUNITY CABLEVISICN A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street Ithaca N.Y. 14850 160712723456 Mr. Ray Bordoni., Mayor 108 E. Green St. Ithaca, N.Y.14850 Dear Mayor.Bordoni Begining.in April,:-.Ceracche..Television is changing its. name to. AMERICAN COMMUNITY CABLEVISION. We are legally retaining our former -'name sothat .all contracts and franchise. agreements will remain in effect. We don't expect to change our public image simply by changing our name. 'We are becoming more subscriber - oriented and we want to provide the best cable service possible. We also want to keep our lines of communication open to all municipalities and subscribers because we do care and we hope to be in Tompkins County a long time. If you have any questions, complaints, or criticisms, please do not hesitate to contact us. TAKE A NEW LOOK at AMERICAN COMMUNITY CABLEVISION!!1 �ncer 'AD\ Bradley P General M usto •er OFFICE OF MAYOR „, MIR 2 O 1981 CITY CLERK'S OFFICE Ithaca, Id. Y. J 1 Y OF ITHACA B EAST GREEN STREET ACA. NEW YORK 14850 \Q- TELEPHONE: 272-1713 CODE 607 MEMO TO: Mr. Benjamin Nichols, Chairman of the Cable Commission FROM: Mayor Raymond Bordoni /ets' DATE: March 18, 1981 SUBJECT: New York State Commission on Cable Television RE: application by Ceracche for an amendment to its cable television franchise Enclosure: materials pertinent to cable television Franchise Amendments Attached from the hereto please find correspondence received today New York State Commission on Cable Television for the Commission's'attention. I have enclosed a copy for each member for you to distribute when you deem appropriate. RB : uint ATTACH. CC: Mr. Joseph Rundle Mr. Donald Slattery Mr. Martin Shapiro "An Equal Opportunity Employer with an Affirmative Action Program" NEW YORK STATE COMMISSION ON CABLE TELEVISION TOWER BUILDING, EMPIRE STATE PLAZA ALBANY, N.Y. 12223 (518) 474-4992 GEORGE A. CINCOTTA - Chairman March 16, 1981 Honorable Raymond Bordoni Mayor City of Ithaca 108 East Green Street Ithaca, New York 14850 MICHAEL H. PRENDERGAST Vice -Chairman JERRY A. DANZIG Commissioner EDWARD P. KEARSE Executive Director Re: Docket No. M51171 Dear Mr. Bordoni: In accordance with Part 592-1.2 of our Rules, Ceracche Television has notified us that it has applied to the City of Ithaca for an amendment to its cable television franchise. The purpose of this letter is to advise you that our Commission staff is available to you for assistance and consultation prior to your entering into a formal amendment to your franchise with your cable television company. In providing such assistance, the Commission staff will not participate in the decision-making process. Our role is to assist municipal officials in making informed judgements by providing advice and guidance on the ade- quacy and methods of using the information offered by the franchisee cable company in support of the proposed amendment. Enclosed for your reference are materials pertinent to cable television franchise amendments. If you have any questions, or feel we can be of assistance in any way, please do not hesitate to write or call any of the following staff members. Mr. Bordoni Page 2 March 16, 1981 Donald P. Buckelew John A. Wright Kenneth L. Foster John R. Harder Municipal Assistance and Policy Development Accounting and Financial Analysis Telecommunications Counsel Enclosures: Part 592 of the Commission's Rules Rate Discussion JAW;glr ncerely, (518) 474-2212 (518) 474-2471 (518) 474-1324 (518) 474-1359 n A. Wright Chief Accountant Neu York State Commission on Cable Television Preparation and Evaluation of Rate Increase Applications A Discussion January 4, 1977 INTRODUCTION While the primary responsibility for the administration of rates charged by cable television companies clearly rests with municipalities, ,Section 816 .(3).of..Article 23 of the. Executive Law.requirea the New York State Commission -on CableJTelevision:to "'provideadvice,and technical ,,,assistance..to, municipalities...inmatt.ers, relating:to cable'television , franchises and , services.`.°, This , requirement- is pursuant,, to.. and in - fulfillment of the._ Legislature's direct charge tothe-Commission:"to - provide. consultant. services. to community, organizations and.municipalities in franchise negotiations,"* and "to set standards for cable television systems and. franchise practices."* Since municipalities must address rate problems, and since the Commission is specifically named as the source and dispenser..of..technical assistance, the Commission therefore dust often consider controversial.probleria which arise when cable television operators seek franchise amendments from municipalities for .the purpose .o.f increasIng rates. .The practical. problem lies almost wholly,in. ow the application Is;fornrulated and how it is viewed by the municipality.. In.,the„pages that follow, the methods and.problems that arise in the,course,of •rate;negotiations`are,discussed at:some , •. length, :the.,paper being ,offered .to,,municipalities ;and,.operators a's a guide ,in. pursuing ..their_ common although,often divergent„interest BACKGROUND The cable television operator requesting municipal approval of higher rates may,perceive.his problem as earning fetier•dollars than in the past, realizing unsatisfactory earnings on'his investment,'comparing unfavorably with his. neighbors, or simply aiming to maximize his profitability. _ The -number of viewpoints is simply endless, and the viewpoint of the individual operator is undoubtedly an•amalgam of various person objectives and preferences, operating in an economy Where profitability is the means of continuity. In any event, when he concludes that he wants or needs a rate:•increase. his presentation will reflect his perceptions of justice, and. not necessarily that of the municipal review body nor the subscribers. Quite naturally,.municipal officials considering an application'for a .rate.increase may have.motives and priorities diametrically opposed to, .tangential or .totally, unrelated to” the operator's inotives”. - Even the municipalitiy's desire.. to. protect subscriber differs from the operator's precaution against overcharging for'fear of cancellations. *Section 311, Article 28 of the Executive Law. Page 2 . ' • All -of this adds up to the'observation that. there' will be times when • 'the:municipality will look into'•thersubstan a of what the operator is saying In 'justification. of' the rates' he' is' reauestinp and'challenoe the basic objective and'po`sition'of'` the. operator'. " i+lhen "t}'is_happens, the operator`s Presentation should'be-'substantial;land the-nunic=ipality should be capable1 of�.'conductinp the encounter on. at'least-*ualound. • ` L .-NARRONIT` G I TuE' TROBhF1'''. ` ` The ' operator uho petitions, 'a! municinal'ity for"'a jai a 'increase`'ot the around. :that cost increases ..require biro to 'seel' higher 'rates?. 'trusts . a relationship that .may. or,?may riot be demonstrable' Ir:`ani of :itself . the propo,Gitiori 'is irrelevant;' and hill, remain 'so -untiY .it' `is shown . that the affected 'exper's•es� are` properly 'those 'of. the'business; :represent a significarit' portion of the 'tot l expense' of .doin -'business; rand `affect profitability adversely. In other words, to take on significance, the claim that higher costs result in the need for higher rates must be presented in the broader context o.f business reporting., Fiore specific observations may be helpful here 1) the effect on . ,profitability of a, commodity,.price increase may be absolutely zero if .0 one ses a- smaller. quantity 'of" the 'commodity: ` '2) 'Cost increases inay be irrelevant.,if revenue keeps pace with. costs: 3)' PPevenue: is not' -only a `unction of selling price,.but also of units sold. •4)-. Improvements in productivity may well offset- cost 'increases• in, the''saine or different elements of expense... As above, the only-,relia-ble tray to derionstrate the.oper.ation of..these factors as a cause"of : businessdistress is In the . context ,of .properly, prepared businessstatements ?Then the operator bases his request for 'a -tate increase on cor*in�rability (generally comparable services in comparable service areas) the principal .problem, if• there is one at .all,. ,is, likely to be that of verification.. •Comparing, -services is undoubtedly the easier part of the approach: Number of_channels, ;line'extensions; picture auality,p.roaram content;, hours of•operation, complaint response'are all ascertainable and generally quantifiable.. T-T.owever, comparable 'service, -areas are'• not so easily' determined o Elements such as urban,' suburban," -rural; penetration;' aerial, underground, construction cost per mile, are all determinable, but the problem of how to weight the elements in combination_ can only be solved subjectively in the absence of extensive and detailed studies. This is in no way intended to disparage use of this approach, but only to point out its limiting characteristics. Page 3 Itahoul.d.beevident,by now that,tWonly fully satisfactorTmeans of presenting, the need4or,a..rate,increase,andjudging.the,acceptahil4ty of prono?ed rates 1 Ilusiness:,analysis;s*,projepgin!,*ptac4geA. by .accountantsOur,JOS4ionjnihis_discussion,shouldjie,emphasize4:: the CoM tisdion,isnot:adVOcating4hat4operators,inVari.gbly plAiMit:their rate requestSformated as a comprehensive business analysis or the municipalities should apply business analysis techniques to all rate .increase,requests Tre.dolold,.that costincreaSeAeplOnstrp0.ns _ SubjeCtive,.an&tkat business analySis!ii.OePnlY conpleteiy:satisfactory. 'Moae,of,pFeSentationjOran,operator and:the:piiy,T011aW,I*4144jPr • themUnicipality,to unAerscand laMreCOneile possibly disi6arate.Vievs. Vhatjollows. ls:a,discussien of some -basic business analysis techniques applied to cable television pricing,and.:-ap,accountom0;faC00 to be considered in the course of that analysis. 1 r ' ELtTENTAPY BUSINESS A statement,of,profit•and. loss.OWAuxtaposes revenue and expense to ascertain'profit.for. a.perio4,,- The usual format is as follows: _ . „ r P..evenue- Less Expense Equals Gross Profit I,ess Income. Taxes Equals Net. Profit • • .• . • . _ It is assumedthat,all terms of the equation.arefor the sameperied of time, that is, that revenue was realized and expenses and taxes incurred durinF the same period. recording the sameequation for a succession of_periods.7114evealtrends, while recording_estimates,of,future, revenues.,,and:epensesmay.enahleone todesign prei*.actions_to._ change,the.:futUre.,:yxpanding,the:terms of the equationisthe root of powprful.analytical,X001; • • -- . . - . - • Each term of the equation mustbe inclusively and exclusively correct For example, revenue should exclude income fro'n sources not.germr.kne to the businqss,.but should. include.all,revenue that.arised from,actiVities • _properly_considered as part.of the business. The omissionor ineorrect • inclusion of values in any term ofthe equation simply destroys the relation- ship with other terms and renders the equation worthless as a portrayal of business results. Page 4 For expanding the basic equation presented._ above.`•we su,gest using The Chart`of Accounts' included• as• Sections599o32'of the Co'mmission's Uniform Accountinp.:System.(UAS)e The level'of detail -provided therein . is .generally adeilua.terfor: analysis'"of most buiness'es'e . `If _Freater.,,detail is required, "subaccourits -may be created ' to"expand .:main .account's° A' P&L'• `presentation aE signed' to' support 'the need for` a `rate -increase might very ieel1 'consist of statements' for 'three or four prior'. years, the present year'(` -a full 'year ;extrapolated"from"a partial`'year)9 a' future ;year ilithout•. the proposed; rate -increase. and'the'saine''future •year: with the'rate discuss 'a•'number' of• -factors° to be considered-in"preparation`of- the presentation+'by the operatoi-'and. evaluation by'the municipality 1. Recognition of 'revenue. The UAS recognizes the following revenue elements as specifically affecting profitability: Installation Income Regular .Subscriber Charges .Pei Pr'o 'ra• m ' or Per Channel Charpes ` ` • ' -' Otherr Subscriber Revenues'' s• Advertising Income Other Tion Subscriber Revenues Interest and Dividends Generally speaking, all revenue items -pertinent or incidental to the business should be included, while unrelated or important isolated items should be excluded. Thus the sale of services to maintain a neighboring system would be 'included as revenue while the. sale of land not needed in the operation'Would be excluded. 'Specific questions should be submitted to"the Commissior'£or interpretation and' ruling. 2. Fxnenses attributed to the business. ffost expenses will be'clearly indentifiable :as germane to the business although the appropriateness of a particular item or its magnitude may open to -question. Here we have in mind salaries and vane levels and•benefit"plans of officers and. er►nloyees, travel and entertainment, vehicle replacement: policy and , and many other -:discretionary items. .The mur_ieipality..will he on less than firm .ground in challenging the operator° s business judgement' in . the absence"•of."objective standards of specific franchise provisions. . LTowever ,..shared expen$es can usually be verified satisfactorily, as "in tho case of office space, manager's' time and vehicle use shared with. Page 5 3. Depreciation and. Amortization. Since depreciation and amortization are usually relatively large items of expense, the method used to calculate current expenseViill greatly influence profitability.. :[chile straight line methods will evenly'spread this cost over 'the_ life :of the ;asset. accelerating depreciation and amortization increases costs earlier and decreases costs -later in the life 'of assets: •,IJht; then;, is -fair?' If, accelerating 'depreciation'is erectedrfor-the purpose.of stabilizing service rates over the "life `of -tlie "franchise, this -would seem t'a be ; just. and: reasonable. If, on the other hand, accelera€ed 'deprec'iation :is elected in order, to concentrate cost ( and diminish apparent profitability),. the operator �rs'houlebe prepared ' to - furnish justification. •. •• .• • . Closelyassociated'with methods of :depreciation and amortization: is the selection of the .iseful fife` of-::as'sets. ,The VAS closely adheres to Internal revenue Service guidelines. Selection of shorter lives tends to, accelerate (but not necessarily concentrate) depreciation; longer :` lives, Mould" have `the opposite effect -'-of attenuatingdepreciation' costs. 1!•. interest. Ciiarr.es for interest' are' usually 'clearly :identifiable when a local operation incurs its own debt. ' Iiowever,`- when is null- p e: System Operator (MSO) incurs debt on behalf of several systems, the amount of interest and associated debt attributable to an individual operation 'may,be less easily determined.' Yet it must be determined if a meaningful presentation • is to be made, and there are several possible approaches. If.a specific indebtedness has been incurred by a local operation, even though the operation is .owned or controlled by an MSO, use of the known ,interest figure would ,present'no problem. A technique which would impose locally incurred interest obligations on top of'a generalized corporate allocation might also be justified. This brings us to the question of an appropriate basis for generalized allocations: The basis most frecuently.used assudes that the corporate (TLSO) debt to equity -ratio may 'be applied uniformly _across all corporate holdings. Using this technique, the total .of local assets would . be reduced -by 'total local current• liabilities, the remainder being apportioned between debt and equity in accordance with the corporate ratio. Interest could then be imputed by applying an interest rate based on corporate experience. Pnough'has been said on the subject'of'interest to' demonstrate clearly .that there are numerous clays of approaching the problem: The preferred approach 0111 be 'fitted to the` local circumstances.' Page 6 5.. :-.Corporate, Allocations. -Here:we refer to _those _expenses ,,incurred :by -the 'corporation. 01S0) . in the: conduct : of - its ;overall,. business. . Such expenses -might be .classified as.- direct and,..indirect.where, direct includes costs - of -payroll _proces.sing7;billing,and collections., .advertising, and gales . promotion :and any...Other costs obviously; proportional to the individual " affiliates' of .the:TLSQo• _'Indirect.,•costs :.would ;then include._Itemssuch salaries• and:' benefits:of: corporate:officers, .corporate legal and accounting fees;: :rent', rutillties.: and,,.Jnaintenar_ce iof corporate, ,headquarters = .Direct exnenses.ishould, be •easily,.assoc,iated with specific •,features ' of affiliates: ,for example•;:•payroll ,processing ;costs.. relate :t�o ,payroll dollars or.number:.of employees, while billing and- collections relate to number of subscribers. Indirect -costs are:generally allocated on some :: .generalized basis. such :as : the 'number .of, subscribers. in each affiliated system or the .number of :miles-of,;plant .or; dollars ,of; investment o"• ' •-The--p:ractice of allocating corporate _costs.._is _usally„ justified _ by arguing that individual systems benefit from corporate services wffich would have to be supplied locally If not -furnished by the corporate headquarters, and .indeed.• this:.position may.well constitute _the. standard_;. gainst. which • •.•individual. elements,••of allocated cost.should, be..tested. •,. 6.• Taxes. The Commission's Uniform: Accounting,; System recognizes the principal problem concerning taxes when,it,statesIncome taxes...shall bethe actual amount due -and .payable by :the cable television company or the amount allocated .to it .if. its .operations 'are included.',on, a consolidated tax returns "Where a cable television company°s.-operationsareincluded on . a. consolidated tax .return,. the .liability allocated to • it for accounting .-and reporting purposes to the Commission shall be,the percentage' that its profits bear in relation to total profits'.. Indeed, for the purpose. of securing; uniformity, the-UAS..goes .beyond. merely recognizing the'problem ,of.statutory vs.. effective reporting and.instructsers Co apply the effective or nominal method. In the,.present context;. it is -enough that . both.- companies: and municipalities should recognize the,i±nportance of . the 'method .used,., . . • The importance of the method employed can be seen in the case of the MSO whose consolidated operating results,.are.more:or.less.profitable than 'local operating,.results., .For,exanple,,_if. consolidated results are less profitable,. applying statutory tax rates, locally. may .result in over- stating local taxes and understating local profits, because'the operator's total tax liability may be lower.than his apparent local liability. Conversely, if consolidated results are more profitable, using statutory rates locally may understate local taxes and overstate local profitability. In either case, the validity of a rate justification may be in question. Page 7 70 -Return.onInvestment..:This extremesly.complex•subject-connot be ..:.handled: adequately in. the' present context : and. will? therefore 'be`• accorded only -the space' needed to illuminate its scope'and°`•importance. ''Investment. referred to in the terms "Return on .Investment' 'is usually the equity investment in the business, or quite frequently,.plant investment. In -either case-investment.:Serves as'the denominator of a fraction where r•:.:the.-.numeratoris eitherjgross"'(pre.;tax),:or net (after tax) profit. Return -is. usually.'exPr essed `as rcentage ' (rate) 9- obtained by converting the .•-; above -fraction•;"1R ty 'itself, St ch::a ate'•has 'little significance except ..to the.investbr •tiho. decides whether`or rot i't is satisfactory to him .:•.; as nieasur'ed'.•byhWstandardso` Buts"uheri,•compared with rates developed in earlier. or later periods or in other businesses or with others.in the same business, such -a rate quickly takes on great significance as a measure/of business performanceo • In,,�selectinZ.the• base aQainst•trhich return on"'investment.:wi1l:'be;calculated, -it -.is -particularly :•important"to 'know hoti assets have been'valued'Q,' Tnere..are .: s.everal' corunonly,used•valuation` systems:•••: Original"cost; ac.quisitton cost, .current- cost :arideplacem►ent •cost are cor_cepts: usually applied, Ito . plant assets. ' [•]hen ,valuation• of assets cis maximized -•:equity is also, maximized, and this tends to.reduce the rate of earnings. An occasion for assigning - a higher value than original cost would arise when a system changed hands at a"price higher•than'`original'costo hen this occurs, assets might be valued .at acquisition costs, or at original cost with the difference.betvieen•original and acquisition cost booked as goodwill. Knowledge of the method employed is essential to evaluate a rate base. The complexities involved in analyzing return on.investment arise from the need to•achieve•a particular level of reliability•in comparisons. For example, New York State's. Public Service Commission sets service rates for all•'electric.•utility companies operating•in the State which will yield a return on investment mandated by law. In this situation, it is obvious that the return on investment for each individual company must be identically defined and calculated. In other words, profit must be identically calculated against a base whose components are identical. To achieve this, both base components and profit"elements'riust be defined with great specificity, and.this teed gives rise to'numerous problems which will be dealt with in future expanded discussions. In the present context, the use of return on investment analysis should not be deterred by knowledge of the complexities. Rather; the user should take care to understand how a given return on investment has been obtained, and this will involve learning what investment is included in the base and what elements of revenue and expense have been used to calculate profit.. Page 3 Row should return on investment information be used•once it is developed, understood and.accepted as_a useful index of. business performance?' The following, list. of• possible ;uses- is far from;complete .but .will•' suggest the: nide range. of. uses for this, kind' of financial analysis .. 1. Comparing'';present. and 'pastperformance 2.•1,tomparing•.present and: predicted.•performance 3: Ptedictina..perfornancewithdifferent assumptions • 4.; . Comparing, performance -wi.th other operators :5. Comparing, per:formance•.of different-type.systems 6..-Comparing'cable•:television with other businesses. 8. Cash -flow. For a company to enjoy .good -finanejal ,healthit must be able to obtain sufficient cash to meet continuing operating costs'.. such as payrolls, maintenance, taxes etc., pay interest on borroWed money:when. dueand.,-.repay loans -or. other,•: financial,: obligations::' A ;' :,: company ° s ability,;;to' do...all these, -;things ;is .:not. easily, -ascertained by • looking,at.balance.sheets:and;.statements.;of: profit•and4oss; hence'the :.r_eed.:for : a: cash floe, statement or , a ; statement ,of `;source, and_' application of._;ffunds-,'7 to complement,. fid fill „out. -the. financial •picture. As_the tit le• suggestssucfi a .statement deals exclusively with -.cash. A typical •format follows: ; • Sources • .; : Net• Profit .after •Taxes . •Depreciation (Business expense.not requiring cash outlay) Borrowings - ' Applications:-_ -Construction :;f .Acquisitions: - Repay Indebtedness Working' Capital .1 Pag 9 Variations in format are appropriate to reflect individual company characteristics. However, the value of cash flow analysis will be readily seen when the statement discloses that the available sources either produce or fail to produce sufficient cash to meet specifically identified needs, or do so by shrinking or expanding working capital.- CONCLUS IOf The present discussion is obviously very rudimentary, but nevertheless touches on most of the major topics which may become issues in rate negotiations. Uhen additional discussion of these and related topics is desired, our Accounting and Financial Analysis Division will be willing to assist operators and municipalities and should be contacted on (518) 474-2471 or addressed in care of the Commission's Office. STATE OF NEW YORK COMM -ISM -6N ON CABLE TELEVISION In the Natter of .. ) Procedures for the amendment of a ") Docket No. 90058 Cable Television Franchise ) and ) ) Procedures for applying.. for ) Docket No... 90111, • • Commission determinationf orates,. ) pursuant to .Section '825_ :(5)'. (e): of ) the Executive Law.. ) • ' ORDERS. P pOPTING REGULATIONS 1. Amendment Procedures. , (Adopted:, February 22, 1978; . Released: April 11, 1978 On January 15, 1975, we , issused a Notice of Proposed Rule- making in Docket No. 900058 and invited comments on the ruler proposed therein. Comment,' were filed by Resort Cable TV, ViaCom Interna- tional, Inc.'.,. Office of Cable Television Commission of the City of Rensselaer and the New York ^tate Cable Television.Pssociation. :laving comoleted our review of the comments filed in response to our proposal, we are now prepared to adopt the annexed rules con- cernin.; the amendment of ca')le television franchises. At the out- set, we wish to note that the rules adopted differ, in some respects, from the proposed rules. The central features of the mono sed rules were . as follows: (1) A requirement that the party proposing to amend the franchi:'e commence the amendment process by written notice sent to the other party and. to. the Commission; (2) The codification ofthe pre-existing recuirement that a franzhi^e Pe amended only after a public hearing on prior notice setting forth the substance of the proposed amendment and that approval by the . municipality is suh ; ect to the further approval of the Commission; (3) A list of specific information which must be included in each application to the Commission for approval of the amendment; and (4) A new procedure whereby the cable television company, uPon compliance with certain: specified conditions, is permitted to im.)lement a rate increase approved in a franchise amendment prior to. the final approval of -the Commission. (The conditions included a -2- recuirement that the company wait 20 days after. the Submission of an application to us before implementing tie rates, that the proceeds of e rate increase prior to final Commission approval be placed in a separate escrow account pending Commission action and that the com- pany serve an additional notification upon the subscriber: concern-. ,. in;; the need for further ap:lroval by the •Commission and the oppor- tunity of the .-zubscriber to file any objections concerning the rate increase with the Commission.) Comments received in response to our ,notice pertain mainly to the procedure permitting the interim implementation of a rate in- crease. ViaCom International, Inc. filed comments in support of .the pro quo" reruirements as beinj unnecessarily burdensome. Vi.aComar- gues that the proposed 20 -day waiting Period would serve no useful purpose since (1) a subscriber has the opportunity to object to the franchising authority prior to municipalapproval and may object to the Commission whether or notea waiting period is imposed; (2) the filing of an objection with the Commission during the 20 -day period is not automatically cause for staying the interim implementation of the rate increase; and (3) the amount: of the increase; must be refunded in any event if theamendmentis ultimately disapproved by the Commis- sion. ViaCom argues similarly that the escrow fund is a "needless yet burdensome administrative requirement." In this regard., the com- pany notes that the amount collected based solely on the amount of the rate increase would generally be limited and could swiftly be re- funded by crediting the subscribers' bill thus obviating the need for a separate account. Finally, the company argues that the proposed notification "may give many,subscribers the impression that payment as charged is not obligatory until final approval is received thus encouraging nonpayment of the bill until final approval by the Commission." The New York State Cable Television Association (NYSCTA) al- so supports the rules insofar as that allow the implementation of rates prior to our final approval but contends that certain burden- some requirements will render the utilization of the procedure impractical in most cases. First, NYSCTA argues that the escrow requirement would. burden cable companies "whose. billing...procedures are not'adapted to segregating out portions of the proceeds" by creating an additional unwarranted expense.. In addition, NYSCTA argues thst in many cases the escrow account will become obsolete before any substantial receipts will be generated from the rate increase. For example, since the company must wait 20 days to implementa rate increase, i.e., bill et the newrate, and the Commission :generally acts upon rate increase applications within 30 days, the rate increase will, in many cases, have received final Commission approval before the due date of the bill. Second NYSCTA challenges the notice requirement for its expense to the cable com- panies particularly those not equipped for routine11billings, and because, "[t]he best forum for public consideration of the rate in- crease is the municipal public hearing," not the. Commission.' For - these reasons, NYSCTA notes in conclusion that t°[aln informal survey -3-.• of the Association's membership has disclosed that the vast majority of respondents would find use of the interim implementation proce- dure wholly•impratical.if the two conditions are retained..1° The..City of Rensselaer by its Office of Cable Television en- dorses-:the requirements.of an escrow account and the -additional .no- . tification =to subscribers..;._ However,. the. City is '.'not .in._overall agreement .with pur.;intention. ,to allow . an interim : implementation. of a rate increase_and offers ,awo suggestions concerningthe .proposed notice to be served. -on, subscribers .• First;:: the City . urges..•that :the subscriber be advised of the effective date of the rate increase and second;.. that. •.the : subsc_riber ; also •,be .advised -of the date on which Commission. action.:is,.expec:ted. The:City..thakes additional comments, on -the ,interim .implementation :procedure but the comments sug;;est that the significance . of .the :need::for_ local.,a.pproval of .the rate .in-. crease prior to:implementat•ion has,been:underestimated.. In :our. Notice .of. Prop.ose.d Rulemaking,' .we -acknowledged that:: the speedier implementation of .rate..Increases may. be •warrante•d and. toward that end -we.-proposed - rules which .woiuld •permit the interim implementation,.or :rate.. -.increases - prior=:to : our ,final ,'approval. How- ever, _we ,als-o acknowledged •that '-':Commission..orders approving even•• _.. • routine:rate increases often.,clarify ambiguities or. assure compliance with conditionq Accordin3ly, ..we :were not prepared to delete the need for •affirmative action.by us•before the rate increase becomes of the. comments.:received, . we have determined to delete from .the final rules any method for,implementingrate increases prior to our final approval.• ;., While the implementation of rate. increases is delayed by the need for.our approval in some cases, the actual date upon which a new rate is implemented .also !Depends upon .such other . factors as. the .date. . of municipal.approval,, the time -required to prepare new billings and the convenience of implementing rates on the•first day of a, calendar month..:No.procedure.can.shorten the delays caused. by these factors. r:!e Also note that a, large number of franchise. amendments submitted for our approvalencompass- matters in addition to strightforward rat. rate increases. With respect. -to such amendments, no procedure should permit one. element. to _become effective prior to all the elements.. Moreover, franchise amendments. submitted to us often include_municipal approval for a rate increase which is conditioned upon the improvement or modification.of service provided by the franchisee. In such cases, the.date upon which the conditions are satisfied by_the franchisee de- termined the effective date of the rate increase and an interim imple- mentation procedure.would .generally not.. -affect that date. Finally, we note that the additional procedural requirements proposed by us in connection with the interim implementation procedure were strongly criticized in the comments received. For these reasons, then, we have determined to delete from -4 - the final rules any procedure whereby a franchisee may implement a.. rate increase amendment prior to our final approval. ' As in :the _past, we shall continue to attempt to process applications for approval of franchise amendments, particularly those involving rate increases, in an expeditions -manner. However,' in this regard, we -note =that whereas -7 in the past we could `generally dispose of such -applications -in 20='to' 30 days,' the time -for disposition is now more" likely -to- be :noticed in the State Bulletin.*: In view of `this, applicants are encouraged to file with us as -soon 'after municipal approval as 'possible.- ". With the exception of the interim implementation Procedure, the rules adopted are consistent with the proposed rules,. Section = = 592-1.2 requires aparty- seeking an amendment. to 'a franchise to notify -•= the other party and the Commission of "the sub'stance of the proposed amendment and Section 592-l3.(a) reouires a public=` hearing - prior to the actual amendment. Section 592-1.3(b) requires the notice of the public : hearing to describe the subject `of the =proposed amend- ment and to indicate,the need for : Commission approval' prior to the effectiveness -:'of::the : amendment' and the '• opportunity for'Interested parties . to filer comments or : objections with ` the Commisiori° The notice, of hearing required by Section 592-1.3(b) Will generally -be noticed in the- official :newspaper: of the:municpality"°as- least" ten` days''in" advance of the scheduled -hearing as reiuiredby applicable statutory provisions. Section 595-1:4(b) specifies the information required to be contained in an application to the Commission for approval of a franchise amendment;" which includes the complete text of the amendment and proof that it was approved by the municipal governing body (592.1.3(b), proof bf publication of the notice of thepublic hearing (592-1.3(b) (4)) and proof that a 'copy' of the application has been served on the.. other party (Section 592-1.3(b) (6)), with respect to the applicatuin to the Commission, it -should be noted that newspaper notice of the filing of the application with the Commission is not required. Finally, Section 592-1..5 reiterates the statutory' requirement that the amendment shell not be effective until approved` ay the Commission, which approval shall be the date of the Commission action, unless otherwise provided. Section 592-1.5(b) establishes the date upon which the franchisee mails to subscribers bills re- flecting a rate change as the date upon which a. -rate change shall be deemed to be implemented. The State Bulletin is published'bi-weekly on Tuesday. II. Joint Application for Commission Determination of Rates. (Adopted: February 22, 1970 On May 6, 1977, we issued a Notice of Proposed Rulemaking in Docket No. 90111 wherein we proposed the, adoption of procedures to be followed by a cable company and municipality when requesting us to..- prescribe rates pursuant to Section 825(5)(e) of the Executive Law. Comments were filed by the New York State Cable Television Association, Granville Cablevision, .Inc.', . and Cablevision Systems Long Island Corporation. No,reply.comments were .filed. Having completed our review .of.. the comments filed in response to our proposed rulemaking, we are now,prepared.to adopt the attached rules concerning the procedures to be followed•by,a cable television company and a municipality when.. seeking. Commission determinationof rates pursuant to Section 325(5)(e) of the Executive Law. However, certain matters raised in the comments: filedwithus deserve comment. 1. Public Notice and Opportunity for a Heasing. Without exception, all of the comments filed with:us 'con- tained an objection to the second notice and opportunity for hearing requirement. The New York State Cable Television Association (the Associa- tion), which "generally supports the. Commission's action looking toward the adoption of formal rules governing: Section 825(5)(e) appli- "cations", nevertheless opposesthe_second public'.hearing 'requirement as it "would be unduly burdensome, unnecessary, and would seriously impair the legislative purpose in adlpting 825(5)(e)."* ViaCom sub- mitted comments declaring that B1the effect of this further hearing would only be to delay what,in most cases, is a necessary increase in subscriber rates", w,hile. Manhattan Cable urges that a second public notice and opportunity for a hearing at the local level would place an additional burden on members of .the .public "who •would be required * The Association, as well as Sammons Communications, indicated in its comments thatthe legislative purpose in enacting Section 825(5) (e) was to avoid disputes over rates. Since Sections 822 and 825(1) indicate that the primary responsibility for negotiating rates lies with the municipality and cable .company, we note that Section 825(5) (e) is intended'as a mechanism whereby., local rate disagreements as resolved, not avoided. . -J - to participate in two public meetings." Sammons Communications pre- sented the argument that the requirement of a second public notice and opportunity for hearin;' at the local level cannot be supported by a logical interpretation of the Executive Law, as "the action in setting the rates will be taken at the State .level." And finally,. in connection with these arguments, :the Association suggests an additional section to our proposed rules as follows. Sec. 592-2.4 (c) The provisions of subsections (a) and (b) hereof shall not apply where the municipality has previously helda public hearing pursuant to public., notice on` the rates in. question consistent with Commission rules or policies governing` the grant, c the public noticefor any such hearing Shall be`, delivered to the Commission with the application. Manhattan Cable joins the `Association 'in urging the adoption of this additional section. We remain ' unpersuaded by any of the arguments or suggestions outlined above. 'Section 825(5)(e) of the Executive Law callsfor a public notice and opportunity for hearing before the Commission may prescribe rates. The primary responsibility for negotiating rates lies with the local franchising authority. Should theparties to the franchise be unable to agree upon rates, only they may request the Commissionto prescribe rates pursuant to Section 825(5)(e). The Commission may not do so on its own motion. For these reasons, the publicnotice and opportunity for hearing on the question of requesting the Commission to prescribe rates for cable television service is properlyhadat the local level. However, Sammons suggests, and in this suggestion is joined by Granville, that a separate public notice and opportunity for hearing would not be necessary if the initial public notice of the compnny's.. rate amendment request (as required by Section 592-1.3 of our Rules) included notice of the alternative possibility of requesting the Commission to prescribe rates should the parties be unable to agree to rates to be charged. We have determined that publication in the alternative, such as here suggested, would be an administrative-,- ly easier process for the applicsnts, yet would also satisfy the elements ofdue process clearly required by the statute. Tie are, therefore, adding Section 592-2.4(c) to our Rules, which provides that Sections 592-2.4(a) and (b), which require -a separate notice, and opportunity for hearing on the question of requesting the CommComm- ission to prescribe rates pursuant 'to Section 825 5(e), shall not apply when the initial public notice of the rate amendment application is published in the alternative, ie., when it notices the fact that if the parties are unable to agree upon rates they may discuss the -7 - possibility of' requesting. the Commission to prescribe rates pursuant to Section 825(5)(e). 2. Publication in the State Bulletin. The Association and Manhattan Cable suggest that notice:of an application to us pursuant to Section 825(5)(e) not be:published in the State Bulletin, contending that Cornm.ission action pursuant to that Section. of the Executive Law is. not a rule making • as defined by Section 102(2) (a) (ii.)- of the State Administrative Procedure' Act 0 (SAPA). We feel that SAPA speaks for itself on that issue. Section 102 Definitions. . 2(a) "Rule" means. . .(ii) the amendment,_ suspension, repeal, approval or prescription for the future of.rates. . . or practices bearing on any of the foregoing whether of general or particular applicability. And were the language quoted immediately above not-reasoct. enough to publish notice of a Section 325(5)(e) application on the State Bulle- tin, we ask the Association and cable companies to consider this. Publication of notice in the State Bulletin is for the protection. and benefit of both the municipality and the cable company. Were notice not published in the State Bulletin and were the Commissien`s action in prescribing rates when overturned for want of full pro- cedural due process compliance, any increase in rates prescribed by us pursuant to Section 325(5)(e) would of course have to be refunded to subscribers, and the previous rate structure would be reinstituted. 3. Joint Application Requirement. Sammons Communications urges the Commission to reconsider that section of our proposed rules which requires the company and municipality to submit a joint application. Sammons claims that a single, joint application would be "administratively difficult." We agree. This Commission never has, nor does it now intend, to require that an application pursuant to 825(5)(e) be one single application signed by both applicants. The language of our proposed rules was an attempt to indicate that both the municipality and cable company must unequivocally request us to prescribe rates before the provisions of 825(5)(e) of the Executive Law are invoked. 1.7e regret the confusion that was caused by our choice of language. We have amended the language of Section 592-2.2(b) of our rules in an effort to clarify our meaning. t 1 • •.t -8 - In connection with the joint application issue, Cablevision Systems Long Island Corporation (CSLIC) asked the Commission to interpret Section 825(5) (e) of the Executive Law to allow ap0lications to the Commission by either the municiaplity or the cable company. Eection.825(5)(e) of the Executive Law states that we may prescribe rates .only o°upon request by a municipality and cable television company" (emphasis supplied) We are unpersuaded that the language is capable of -the interpretation CSLIC promotes. We 'therefore adhere to our position that both parties must request Commission determination of rates .pursuant to Section ' 825(50(e). 4. Form of Municipal Action Section 825(5)(e) provides that the municipality and cable television company requestingCommission determination of rates pursuant to that section must certify that they are unable to agree upon rates. The Association objects to that Section of our proposed rules, which deals with the required frrm and contents of the Section 825(5)(e) application, on the grounds that it puts undue restraints on the discretion of municipal governments. The Associa- tion urges that proposed Section 592-2.3(c) which' reads, in part: In the case of the municipality, the certification shall be in the form of a resolution or other official action of the municipal legislative body . . to be changed to: • In' the case of the municipality, the certification shall be in a form duly authorized by the municipality. THE COMMISSION ORDERS: The Commission's regulations are hereby amended by adding thereto a Part,to be Part 592, Subparts 592-1 and 592-2 to be read as set forth in the Addendum to this Order. Commissioners participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman; Albert E. Farone, Michael H. Prendergast, Commissioners. Abstaining- Malcolm Fein. -9 - We are unpersuaded that our language interferes with the discretion - of municipal governments, or that the language proposed by the Association is less restrictive. We therefore adopt Section 592-2.3 :(c) as proposed.* The statutory authority for the rules we are adopting today is contained in Sections 815(2)(a),816(1) and 8 16 (5) (e) of Article 28 of the Executive Law.. * We wish to make clear that our action here today does not consti- tute approval of the so-called "automatic certification" clauses, found in some franchises. (i.e., those clauses that provide that the franchisee may automatically certify to us on behalf of itself and the municipality a request for rate determination pursuant to Section 325(5)(e) of the Executive Law if the municipslity does not act favorably upon rate modification reouests.) The topic of automatic certification clauses is among those presently under consideration by us and pending resolution. See also Cablevision Systems Long Island Corp:, ORDER GRANTING CERTIFICATE OF CONFIRMATION Adopted: December 20, 1977; Released: December 22, 1977; Docket No. 10723; and Suffolk Cable Corporation, ORDER CONDITIONALLY GRANTING CERTIFICATE OF CONFIRMATION, Adopted: January 25, 1978; Released: February 2, 1973; Docket No. 10515. Part 592 Amendment Procedures Subpart 592-1 Amendments Section 592-1.1 Applicability:._The rules contained in this Part apply to all amendments of cable television franchises; pro- vided, however, that any amendment that would have the effect of extending the duration of a'' franchise" shall be deemed 'a renewal and shall be subject to the provisions of Part 591 of this Subtitle. Section 592-1.2 Commencement of amendment process: Any cable television company or.municipality proposing to amend a cable tele- vision franchise shall commence the formal amendment process by written notice sent to the other party and to the commission. The notice shall contain - the text or set forth the substance of the pro- posed posed amendment. Section 5921.3 Public hearing :requirement: (a) No cable television franchise' may be amended, except after a public hearing preceded by reasonable notice. This provision shall not be deemed to require an additional bearing in those cases in which a hearing is otherwise required by applicable provisions of law. (b) In addition to satisfying other applicable requirements, the notice of public hearing shall indicate the subject of the pro- posed amendment. . The notice shall also state that the amendment, if approved by the municipality, may not take effect without the prior approval of the commission and that interested parties may file comments or objections with the commission. Section.'592-1.4 Commission approval required: (a) No amend- ment to any cable television franchise shall be effective without the prior approval of the commission in accordance with the provisions tf Section 592-1.5 of this Part. (b) An application for approval of a franchise amendment shall comply with the requirements of Part .590 of this Subtitle and shall set forth or include at least the following: (1) the name, mailing address and telephone number of the cable television company; (2) the name, mailing address and telephone number of the municipality approving the amendment and the date municipal action was taken; -2- (3) the complete text of the .amendment and proof thst the ame:Adment was approved by by municipality; (4) ,proof of publication _of. the notice of public hearing, on the amendment; (5) a:.description of the rate; changes, if ' any, .effected .by the. amendment.;. . (6) in ,the case of an application filed by a. -cable television company .7.proof that a copy' of. the ,application has ; been ,served on 'the , rnuniciaplity; in „„the case of an. application filed by a .municipality,- :,proof that' 'a copy of the application company. Section '592-1, 5 ment shall be effective., be iinplemented,'until the approving such amendment. - the effective date of the action. Effective date` of •'amendment: ..(a) No , amend- ; , and no .change ,effected , by ;any, amendment may .a commission shall havedopted,an_order Unless the order shall otherwise provide, amendment shall be 'the date of commission (b) For -purposes of this Section , the mailing to subscribers. of bills reflecting a-rate.change Shall be deemed the implementation. of such rate change. • Subpart 592-2 Applications Pursuant.to Section 825 (5)(e) Section 592-2.1 Applicability: The commission. may consider an application 'to prescribe rates pursuant to .Section _825(5) (e), if the application complies with the provisions of this Part. Section 592--2;2 Form of application _ (1) Any application made pursuant to this: Part . Shall -;be' wr.itin g. , (b) Both the. municipality and .cable -television company. must request the commission to prescribe applicable rates-. Section 592-2.3 Contents of application: .The application shall -include: (a) the: name and adciress o_.. the cable television .company; (b)- the name of the municipality and the chief executive officer, thereof; (c) certification that the cable television company and municipality are unable to aree upon rates. In the case of the municipality, the certification shall be in the form of a resolution or other official action of the municiaal legislative body. In the case of the cable television company, the person certifying shall be the applicant, if the applicant is an individual; one of the partners if the applicant is a partnership an officer if the applicant is a corporation; or a member who is an officer if the applicant is an unincorporated association; (d) a list of all classes of service for which rates cannot be agreed upon, including, if applicable, existing rates for such classes of service; and (e) proof of publication as required by Section 592-2.4(a) and (b), or Section 592-2.4(c)hereof. Section 592-2.4 Public Notice and Opportunity for a Hearing: (a) Before making application to the commission pursuant to Section 825(5)(e), the municipality or the cable television company shall cause to be published in a local newspaper of general circulation' public notice that the municipality and cable television company cannot agree upon the rates to be included in the franchise or renewal thereof, and that they are proposing ti make a joint appli- cation to the New York State Commission on Cable Television to _2 - prescribe rates pursuant to Section 825(5)(e) of the Executive. Law of New York State. Proof of such publication shall be delivered to the Commission with the application. (b) The public notice shall set a date not less than ten days after the date -of publication, for an opportunity for a hearing on the subject of the proposed joint application of the municipality and the cable television company to the commission pursuant to Section 825(5)(e) of the Executive Law.. The public notice shall refer to the statutory authority under which the action is pro- posed, and shall accurately give the time and place of the hearing. The opportunity for a hearing shall be had before the joint application of the municipality and cable television 'company is submitted to the commission. (c) The provisions of subsections (a) and (b) hereof shall not apply when there is included in the initial local public notice of a rate amendment application, notice that if the parties are unableto agree upon a rate or rates to be charged; they may =gree to apply to the New York State Commission on Cable Television to prescribe rates pursuant to Section -325(5)(e) of. the Executive Law. The. public notice shall refer to the statutory authortiy`under which the application would be made. Proof of such publication shall be delivered to the commission with the application. , • PART 595 FRANCHISE STANDARDS (Statutory authority: Executive Law, art. 28, §§ 815, 816, 821) Sec. • Sec. 595.1 Required contents of franchises 595.2 Additional terms and conditions 595.4 Required contentsfranchises permitted concerning channels and facilities for public access 595.3 "Negative option" promotional 595.5 Requirements for construction of cable practices television plant and provision of cable television services Historical Note Part (§4 595.1-595.2) filed April 17, 1973. Section 595.1 Required contents of franchises. Where a cable television fran- chise is awarded or renewed after April 1, 1973, or where a franchise was awarded prior to said date but the franchisee had not commenced operations or substantial construc- tion prior to January 1, 1972, the franchise will be -confirmed by the commission only if it contains: (a) Recitations indicating that: (1) the franchisee's technical ability, financial condition, and character were con- sidered and approved by the municipality in a full public proceeding affording due process; (2) the franchisee's plans for constructing and operating the cable television system were considered and found adequate and feasible in a full public proceeding affording due process; (3) the franchise complies with the commission's franchise standards; and (4) the franchise is nonexclusive. (b) A full description of the system proposed for construction, which shall indicate the specific geographical areas to be wired, the number of homes to be passed, the miles of cable to be strung, the names of each street over and under which cable plant is to be constructed, or any other objective criteria against which the pace of construction may be measured. The description shall be accompanied by a map of the entire franchise area, accurately indicating the areas to be constructed and the location of all trunk and feeder plant. The description shall indicate anticipated stages of completion of construc- tion at six-month intervals for the entire franchise area. The description shall also include a specific schedule showing that significant construction will be accomplished and cable television service will be available to a significant number of subscribers within one year after the release date of the certificate of confirmation of the franchise. (c) A provision specifying that the franchisee shall construct its cable system using materials of good and durable quality and that all work involved in construction, instal- lation, maintenance, and repair of the cable system shall be performed in a safe, thorough and reliable manner. (d) A provision requiring the franchisee to post security (e.g., a deposit or bond) within 30 days after receipt by the franchisee of final operating authority to•guarantee the timely construction of the cable television systema • The franchise should be specific as to the form and amount of the security, as to the conditions under which any or all of the security shall be forfeited, and as to the specific amounts to be forfeited in particular circumstances. The franchise should also be specific as to any obligation on the part of the franchise to post additional security following forfeiture of the security initially posted or any portion thereof. In addition, the franchise should be specific as to the term for which the security shall be in force and the means of determining the expiration of such term. 230.519 EX 8-31-82 § 595.4 ,4 Every cable television franchise must contain the following minimum provisions: • (1) permitting access to, and mandating facilities to make use of, cable television channel(s) by the State of New York, the local government, educational institutions, or members of the general public for education and public service programming, munici- pal services and local expression; (2) specifying the cable television channel(s) and facilities that will be made availa- ble for the purposes enumerated in paragraph (1) of this subdivision and, at a mini- mum, requiring:* (i) that at least five hours of channel time each day, two hours of which must be between the hours of 5 p.m. and 9 p.m., shall be made available on all cable television systems for such purposes, and that the hour between 7 p.m. and 8 p.m. shall be reserved for the use of the State of New York government access channel; (ii) on 12 -channel systems, where there is no demand for access time, such channel time may be used for such purposes as the cable television system owner or operator may determine in accordance with the rules established pursuant to para- graph (5) of this subdivision; (111) that, in the case of 21 -channel systems, as defined by section 596.1(g) of this Subtitle, which have an activated capacity of 15 or more channels, a minimum of one full-time television channel be provided for such purposes; (iv) that, in case of augmented channel systems, as defined by section 596.1(h) of this Subtitle, which have an activated capacity of 15 or more channels: (a) a minimum of one full-time television channel be provided for such pur- poses; and (b) a second channel be provided for such purposes, within six months of a formal municipal request, if the first such channel has been in use eight hours per day for a three-month period; and (v) that no charges be made for channel time utilized for such purposes; (3) specifying the facilities that will be made available for the purposes stated in paragraph (1) of this subdivision and, at a minimum, requiring that, in the case of cable television systems, as defined in section 596.1(d) of this Subtitle, serving 3,500 or more subscribers, the franchisee provide facilities and equipment necessary to record and transmit television programming;* (4) designating the entity** (e.g., school system, municipal agency, cable company, community service organization) which will be responsible for the operation and administration of such channel(s) and facilities; (5) requiring the designated responsible entity to establish rules regarding channel use within six months after the entity is designated, and to file those rules with the New York State Commission on Cable Television within 30 days after their adoption. Such rules shall include, but need not be limited to, the following: (1) a rule specifying that channel time is available on a first-come, first-served nondiscriminatory basis, except as provided. in subparagraph (2)(1) of this subdivi- sion; TITLE 9 EXEUUTIVE • Nothing in this rule shall be construed so as to preclude the or designation as the of df an agreement channels or equipment by the franchisee on a voluntary basis, arrived at through negotiation between the parties to a franchise. •• In the case of a cable television company which serves more than one municipality from a single head -end, it is anticipated there will only be one entity designated jointly by all municipalities to administer the channel. 230.520b EX 8-31-82 ck SUBm'LE R COMMISSION ON CABLE TELEVISION ', t• and personnel; § 595.5 (ti) procedures for scheduling the use of television production equipment and for scheduling the cablecasting of programming on the channel(s) designated for the purposes enumerated in paragraph (1) of this subdivision; (111) the charges, if any, to be paid for the use of production equipment, facilities (iv) a requirement that a record be maintained of the use of the designated television channel(s), Including the names and addresses of persons and organiza- tions providing programming for such channel(s); such record to be available locally for public inspection and retained for a minimum of two years; (v) procedures for registering and resolving complaints regarding channel avail- ability, priorities and usage; and I (vi) a requirement prohibiting the designated channel from being used for the promotion or sale of commercial products or services, including advertising by or on behalf of candidates for public office; and (6) requiring that the franchisee provide notice to each subscriber, at intervals of not more than one year, as to the availability of the television channel and production equipment and the address and telephone number of the entity responsible for the operation of the access channel(s). (c) If any clause, sentence, paragraph, section or part of this rule Is adjudged invalid by any court of competent jurisdiction, such judgment shall not affect, impair or invali- date the remainder hereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part hereof directly involved in the controversy in which the judgment is rendered. Historical Note Sec. filed Apri119, 1982 eff. Apr1119,1982. 595.5 Requirements for construction of cable television plant and provision of cable television services. (a) Definitions. (1)' Primary service area shall include each of the following within the franchised area: (1) those areas where cable television plant has been built without a contribution - in -aid -of -construction by subscribers; (11) those areas where the cable television company is obligated by the terms of its franchise to provide cable television service without a contribution -in -aid -of - construction by subscribers; �1 (11i) any area adjoining an area described in subparagraph (i) or (11) of this paragraph and which contains dwelling units at a minimum rate of 35 dwelling units per linear mile of aerial cable; (iv) any area adjoining an area described in subparagraphs (i) and (ii) of this paragraph and which contains at least the same number of dwelling units per linear mile of aerial cable as is the average number of dwelling units per linear mile of cable in areas described in subparagraphs (i) and (ii) of this paragraph. The average is to be determined by dividing the sum of the dwelling units in areas described in subparagraphs (i) and (11) of this paragraph by the number of linear miles of cable in the same areas. ACCESS EQUIPMENT REPLACEMENT (Based on estimated revenues - 1987) ACC -Systems City -Only. 1% $ 60,500 1% $18,000. 1.5% 90,750 1.5% 26,000 2% 121,000 2% 35,000 2.5% 142,805 2.5% 44,000 15.7 15. CHARTER AND ORDINANCE COMMITTEE WHEREAS, the City of Ithaca and the American Television and Communication Corporation (ATC) did execute the attached "Agreement- in -Principle" -regarding the .de-11•ver-y-of future- cable uture-cable television services on December 2, 1987, and WHEREAS, such agreement was to terminate on April 30, 1988, and the City of Ithaca is desirous of extending the terms of said agreement to allow the parties thereto further time -in which to complete final action on a new cable television franchise agreement; now, therefore, be it RESOLVED, That the "Agreement in Principle" between the City of Ithaca and ATC dated December 2, 1987 should not terminate on April 30, 1988, but should be extended to Friday, July 8, 1988, and the City's non -waiver of its rights under the Cable Act to hold an administrative.hearing pursuant to. Section 626 should likewise be extended trough Friday; July 8, and be it further RESOLVED, That the Common Council directs the Mayor and City Attorney to take appropriate steps to implement the position of Common Council as stated in the previous clause. m,.3) (irD r-Retd ( a (J- (P(, i 0 )) . 15.7 Continued AGREEMENT IN PRINCIPLE The City of Ithaca Cable Negotiating Committee and (ATC) American Television and Communication Corporation (AV in principle to the following major issues related to the delivery of future cable services. 1. Access Equipment., American Community Cablevision (ACC) will provide $165,000 worth of new production equipment for public, governmental, and educational (PEG) access. This equipment package will include the equipment specified in ACC's April 16, 1987 renewal proposal, plus one portapak and editing suite for the City of Ithaca access (municipal access equipment) and modulators to activate origination sites at the Youth. Bureau, Ithaca High School, GIAC, the Alternative High School, and Cornell University. The City will approve the actual equipment list. ACC will expend two percent of City gross revenues annually for PEG access equipment replacement and expansion. Any future access equipment replacement and expansion commitments that are made by ACC to municipalities served by the same headend as the City of Ithaca, will be deducted to a floor of one percent of gross City revenues. -2 - PEG and municipal access equipment will be maintained and replaced by ACC, maintenance of that equipment will be done on- site or at an ACC facility in a reasonable timely manner. In addition to the staffing requirements set forth in the City's proposed Franchise Agreement dated July 30,, 1987, ACC will add a fifth full-time staff position dedicated to access services at the beginning of year ten of the franchise, subject to the same conditions as specified for the fourth full-time position. 2. Institutional Network. ACC will construct and maintain a midsplit 30 channel institutional network that will connect the following buildings: City Hall, Cornell University, Ithaca College, Tompkins County Library, Ithaca High School, Boynton Junior High, the Alternative School, Ithaca Youth Bureau, GIAC, Police Headquarters, Central Fire, and the Bus Garage. ACC will provide the City with 8 upstream and 8 downstream pun, 1.)1k)V i tit -0 ' channels, free drops and necessaryAconverters to all aforementioned locations at no charge for the duration of the franchise. Any channels unused by the City three years after the institutional network is activated will revert to ACC provided that if the City subsequently has a use for any such channel ACC will return said channel(s) to the City six months +01l. fo,he .�y �r� iluktifkal Aw.w` us% c ryA+ oxtut 4 -CGS dillAAk k awl -matt. feAcLAA4 1-4 st4 (6,5(„'awlA ctuun xu 0wn Sa[1108Jed clAutA& Mc -AAA oFd6 pmw4-- after receiving written notice if ACC has a use for the channel and immediately if there is no use of the channel. ACC will have the same liability for I -net users that the telephone company has for telephone users. Fe—reque bus.ines-s-h ACC will respond to repair calls within two hours. For requests received during non -business hours the City or other I -net users will pay ACC $40 per hour for such service. Such hourly fee may be raised by the CPI annually. .Ce_will-respond--to n- usiness hour requests winim-two 'rof feiutat recei vat 0611 Ns;viers hours fttre, will be. ho r tr1e- 3. Refranchising Fees. ACC will reimburse the City for ranch costs related to the renewal process with the exception of costs related to the City's petition to the FCC for authority to regulate ACC's rates. The reimbursement will not exceed $75,000. 4. Federal Court Case. Upon execution of a final franchise agreement ACC will withdraw its federal court case, Civil Actions No. 87 CIV 145 (Judge Munson) and upon execution of this agreement ACC will withdraw the subpoena to depose Jean Rice in said case and all other discovery requests. Both parties mutually agree that the time for the City to give the notice required by paragraph 15 of ACC's current franchise shall be extended to January 8, 1988. The City will defer any administrative proceeding pursuant to Section 626 of the Cable rcceLrk' o Su1n0 k( ( JCC IA s 44-Jes sub p."0 -4c, �w— sueL AA fos,l-toin do Ler 1L... ;.�i,,,:t P;, c At.LP Lr- Su t sevvLe , 1,A -11Atr cu ' rocek lO J-6- -0 G.N+^r 1.4 w1Aelvat •. —4— Act until not less than twenty days after ACC has received notice that Jean Rice will be available for deposition ACC agrees that the City does not waive its rights under the Cable Act to hold an administrative hearing pursuant to Section 626 at any future time through April 30th, 1988. 5. Franchise Fee. ACC will pay the City a. five percent franchise fee on gross revenues. 6. Programming Appendix. The language will be drafted for the programming appendix essentially like the following: "Full-time Governmental programming (e.g., C -SPAN, C -SPAN II)"; "Full-time Minority programming (e.g., BET, SIN)". "Classical movies (e.g., American Movie Classics"). 7. Term. The City will request along with ACC, that the New York State Commission on Cable Television waive its rules and permit the City to grant ACC a franchise for 15 years. If such request is not granted, the term will be ten years and the other terms of this agreement will not be affected. 8. Franchise Language. The City and ACC will continue to negotiate a final franchise based upon this agreement, ACC's mark up of City's ordinance submitted to the City on November b (\C C- 23, 1987 as initialled by the parties and the City's frJieVM s� of t h c Ire- 4o I� hoLK e- ttiptk G44 ivt S(rildtbe,precir oicei dtz_ Mt( patfi Lor.4' be ei cbt4/5 re-c-Wef d1� 110�4erQ provisie/ts of vt/e`ktA+64uk. crexeAds bv Co,ti. proposed franchise agreement dated July 30 1987, as initialled by the parties... The parties will be boundb the substantive provisions though not the precise wording so initialled unless o 01\N - either party by December 11, 1987 notifies the tsehr party writing of its desire not to be so bound./The City will seek modifications of the Ordinance to be consistent with tis franchise agreement and such agreement will not be effective until such modifications have been finalized. The City will not seek unilaterally,by passage of any ordinance or otherwise, to modify ACC's franchise agreement after it is executed. 9. Rates. The basic service shall have a minimum of 12 (6Mhz) channels. If the Basic has only 12 channels, one channel shall be designated for public access. If the basic service has more than 12 channels, all access channels will be provided on basic. ACC will not raise basic rates higher than the following for a four year period. On February 1, 1988 the maximum rate will be $9.00. On March 1, 1989 the maximum rate will be $11.00. On March 1, 1990, March 1, 1991, the maximum rate will be the previous year's rate plus 10% or that percentage equal to the rise in the Consumer Price Index, whichever is higher. Additionally ACC will give a need -based senior citizen discount of 10% to those who qualify for real property tax exemption and others who qualify using mutually agreeable criteria. ACC covenants not to bring or fund any lawsuit or proceeding seeking deregulation of rates during this fir year -6 - period. Should ACC do so, it will pay all City legal, consulting, and other related expenses reasonably incurred in connection with such actions and proceedings within 30 days 0 after demand therefor. Effective May 1, 199A ACC may seek deregulation without payment of City expenses.' In such case, each party shall pay their own expenses. If at any time, any additional cable franchise is granted by the City, there will be no regulation of ACC's rates from the date of said grant of the franchise or of the beginning of construction of the system) S 1, -evck.vu-V ist,, whichever comes sooner, until the termination-�$ ofA The parties will present to the FCC a stipulation of settlement which incorporates ACC's acknowledgment of the City's right to regulate basic rates and the corresponding rate regulation aspects of the Franchise Agreement for approval by that body; upon such approval, the City will withdraw its petition now pending therein. 10. Internal wiring, converters, remote controls. ACC and the City agree to language substantially identical to Section 7.17, entitled "Converters", 7.18, entitled "Internal Wiring", and 7.19, entitled "Remote Controls" of the City of Ithaca Cable Communications Ordinance. exS itis baLA- 11. ACC will ensure that a listing of municipal programming will be included in a programming guide published by ACC or a guide published by another entity. -7-- 12. Upon execution of a final agreement, this agreement will be of no further force or effect. In any event, this agreement will terminate April 30, 1988.04' a+ 31^0-A. earVeAr' As t`I`( 6'44- ( ( 14'463+2 ACC r v1Sln* c.,ti 0.1.A. t„ t.. rekc434.- CS) gC.4, tioduk Ate,* 'ti -t 13. The final agreement will provide that, if the City grants any additional cable franchise which contains terms or conditions more favorable to the grantee than ACC's franchise, the ACC shall have the option to comply with all the terms of such franchise in lieu of compliance with ACC's franchise. r -u 4,1,4 -t wall � k4) 14. The final franchist2willat all times be subject to applicable law. If any section of the franchise agreement or any clause or any phrase thereof shall be held to be unconstitutional or void, all other portions not os held shall be and remain in full force and effect. If any section of the final franchise is unenforceable ACCj.and the City shall negociate in good faith and agree upon a provision which will achieve the same purpose as closely as possible. -Th-issU�s }u4 Mil`' 15. Nothing in the franchise shall be deemed a waiver by ACC of the right to contest the enforceability of any provisions of the ordinance. ib. Al( of ?wvtsioi.tJ JUS 0.5Tegw.e--ti e(c.ept Kt_ cti,,wvt5‘o,• ;, of cm015''-AP‘-‘ �(1 arc_ sL.1Jec+ D J - exeLL- ko.. o ,4(.4tc. A.S yet-o. -8- Approved by: Date: (Z/Z'/87 Gk.: , Michael M. Withiam General Manager, ACC Date: Daniel Danser, Esq. TELEVISION CABLE FRANCHISE Agreement made this 20th day of January ,, 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises andcovenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado, 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 thetransmission of television programs, and distribuion 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 arrangements 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 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, trans- mission lines, distribution lines, and service lines shall not inter- fere with, nor ob-struct, 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 respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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. 5. 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 Communica- tions Commission, 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, if. required 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 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 street, 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 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 mayinvolve the opening, breaking or tearing up of a portion of a street, sidewalk or other part of any City -owned or City -con- trolled 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 under- taking under the authority of this franchise. 10. a) During the terms 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 qualityof television picture signal or reception as may be practical from time to time, and shall make all reasonable and practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination of radio interference. b) The Grantee shall certify to the City and provide such re- quired documentation to prove that it is in fact meeting the minimal technical standards required by the Federal Communications Commission. and the New York State Commission on Cable Television, Said certifi- cation and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van tomake certification checks within the City. The Grantee agrees to such verification checks at the discretion of the State Cable Commission (should they,. be required by the City). .. c) Service shall be defined to include basic service as herein- after defined and the provision of any additional cable programming to subscribers9 homes'and businesses in the city through the use of cable and necessary instruments. d) Basic Service means the provision of 12 channels .(channels 2 through 13) to subscribers' homes and businesses in the city through the use of cable and necessary instruments. Such Basic Service shall include the so-called "must -carry" stations as required by the Federal Communications Commission and the New York State Cable Commission, the Learning Channel (formerly ACSN) on the Local Access Channel 13 during times when local access programming is not available,. and the current New York City stations (now three in number) to the extent channels are available after local access and "must -carry" stations are pro- vided. 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 telephone sets, accessories, or converters within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters 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 allservices of the holder of this franchise, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: • -4- 1) Installation: Residential establishments (maximum charges): First installation charge - $25.00 • Each additional installation -• 15.00 Commercial establishments (maximum charges): First installation charge •- time and materials 10% •Each additional installation - time and materials + 10% Custom installation (residential or commercial), hidden wire, underground 'drop in area where drops are other- wise aerial - time and materials 10% 2) Monthly Rental Charges: First outlet, basic service - .$ 7.00 • Each additional outlet (resi• - dential), basic service - $ 2.00 Each additional outlet (commercial) :.- FirstFM outlet Each additional FM outlet - • $ 7.00 $ 7.00 $ 2.00 The monthly rental charge for first outlet, basic service and first FM outlet shall increase to $8.00 effective January 1, 1986,0 and remain at no more than $8.00 at least to January 20, 1988 notwithstanding any Federal or State law, rule, regula- tion or ruling which permits or authorizes any increases thereof to the contrary during this period. 3) Disconnection: No charge will be made for disconnection, and no charge will be made for the period when the service is disconnected for any reason whatsoever. Cable service may be disconnected when the rental or other charges are 60 days past due. 4) Connection and Re -connection To To Existing Outlet: 5) Transfer of Service: $15.00 $15.00 Any user who has paid the regular established residential installation fee and moves to another residence within 4 • -5- • the city may have this service transferred for the above charge. . 6) Relocation in the Same Dwelling: To a new location in the same room -$10.00 • To a new location in another room - $15.00 7) Converter Deposit (refundable): ' $10.00 81 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. . • 9)'The rates and charges for basic service set forth herein .shall bind the parties for the period July 1, 1984 to at least January 20, 1988 --the date of expiration of the existing franchise. In the event that grantee exercises its option to extend the term in accordance with Section 1.5 hereof, these rates shall continue in effect after January 20, 1988. No increase in rates and charges for basic service shall be effective after January 20, 1988 and during such extended term unless first approved by the Common Council in accordance with the provisions of Section 33 of this franchise as amended following a public hearing affording 'due process. Approval of increases in rates and charges for basic service shall not be unreasonably withheld. 10) All installation and other charges include applicable federal, state and local taxes, if any, except sales tax. .• 11) The City specifically reserves the right to conduct a sub- scriber or other rate investigation at.any time 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 investiga- tion, adjust the subscribers' rates or any other rates contained in this agreement after January 20, 1988. 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 accordancewith.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 -6 - 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 through. out the street installations. .Messenger cable shall be used to carry the coaxial cable across the 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 equip- ment within the City of Ithaca. 2) Public Liability Insurance in a total overall amount of.not less than $1,000,000 combined single limit coverage insuring the holder of this franchise and the City of Ithaca against liability for property damage and 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 expire January.19, 1988. 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 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 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 franchiseshall 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 three per centum (3%) of its gross revenues from all cable service operations within the City; said gross revenues shall in- clude the charges and rentals for basic service as set forth herein, all other charges and rentals set forth herein, and all other revenues obtained from any source whatsoever on account of -the provision of cable related services of any kind within the City, in- cluding, but not limited to, basic service, augmented service, satellite service, HBO, pay television, and any other entertainment or other services. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regulations of the Federal Communications Commission 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, excepting herefrom any prior liens on the New York State Cable Commission. •-7- Failure 10 make the required report or paysuch franchise fees shall be grounds for revocation of this franchise. In regards to the property tax credits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportionthan the City of Ithaca subscribers are to the total system. Any continuous and willful violation of any section or provision - o8. A y rounds for cancellation of the franchise, of this franchise shall be g The right is reserved to the Grant dueee t noticeand public any Courtnor otherwise, any stealing, pirating o prosecute pirating or unlawful uses of the services covered by this franchise. 19. If any section of this franchise agreenetionalnt or aor voadSeaor any phrase thereof shall be held to be other portions not so -held shall be and remain in full force. and effect. ed Y 20. The Cit recognizes that Grantee has constructed itscitsystem ssubstantially throughout the primary �red at..this time. Grantee No standards for line extension are requ ue toprovide such service throughout the duration of shall Contin the franchise,. pursuant to this franchise. 21. • Grantee shall construct its cable system using materials.. of good andddurable quality and all work involved in concshall be installation, maintenance, and repair of the cable system performed in a safe, thorough and reliable manner. e in 22. Local Office. The Grantee shall maintain anofceusinesspkins County, New York, which shall be open during all usual a listed telephone, and be so operated that complaints and rehaving adjustments may be received at any time when requests for repairs or are broadcast. The Grantee shall any television signals being s and to all service calls within 24 ohousers and edr orrectmalfunctions a; promptly as possible. For that :pu p t to and a competent staff of employees ss.ff_iThenGr.antee�shallakeepaaerecord prompt service to its subscriber r subsc of all complaints from subscribers identifying theriberibe , his and disposition of address, date of complaint, nature of complaint, be complaint. laint. A major system failure shall seevionseideredmorto exist when there is a simultaneous interruption subscribers. In the event of . a march faor withins one (1)ahour • shall respond to notification of s All complaints not and restore service as promptly as possible. resolved by the Grantee within one (1)Theweek r aafrafter .fereceipt hall be - forwarded to the Grantor for revie primary responsi- bility or his designees i or administration ofsignated t the franchise andfimple- b ility for the continuing procedures mentation of. complaint procedures. Notice of the r complaints will be given to oseactem and subscribera reporting and resolving P intervalsa thtsme f erioof no to noticesion e tthereafteryuc written or by such other means as heYork byState Gxantee. Cable Television may approve up application 23. Grantee shall not abandon any service or portion thereof with- out the written consent of the City. 24. Any City or private property damaged or destroyed shall be promptlyrepairedor replaced by Grantee and restofed 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, sex, sexual preference, marital. status or disability. 26. The City reserves the right to adopt, in addition to the pro- visions contained in the franchise and existing applicable ordinances, such additional regulations -as it shall find necessary in the exer- cise 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 material, of the franchise, 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. b) Said security shall be forfeited to the extent specified by the City Council if the Grantee fails to comply with any 'applicable construction schedule, or if the Grantee commits a material breach of any of the terms and conditions herein prescribed. As an . alternative, 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. 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 of all the initial security, the Grantee shall within thirty days thereafter post. additional security so that the total amount of security posted equals $5,000. . -9- 30. Grantee shall file requests for all necessary operating authori- zation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission. within GO days fromthe date this amendment is granted. 31. Public Access • a) American Television and Communications Corporation shall provide one full separate single channel for public access programming on a demand basis,and otherwise comply with the pertinent New York State Commission on Cable Television rules and regulations. b) This single channel shall be. designated as Channel 13 in the basic service group. 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 fourweeks in advance of their desired broadcast time; this provision may be waived in a particular case by American Television and Communications 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 with the American Television and Communications Corporation. g) The City cable Commission. shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the City of Ithaca. remain 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) Public access studios shall be. maintained at the company's headquarters on West State Street and will include television cameras, recording and playback equipment, switching equipment and an editing capability. In addition ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposedabove regarding ATC shall respond positively to reasonable demands of the community for public access, public access, facilities, equipment and cable drops. 1 A11 access broadcasts shall conform to Cable alle Federal Communications Commission and State m) American Community Cablevision will maintain arrecoddtofbe the use of the designated television channel(s); available locally for public inspection and retained for a minimum period of two years: n) American Community Cablevision will prohibit the public access channel from being used for the promotion or sale of commercial f products or services, including advertising by ranby behalf ofucai.di- `daates for public office unless specifically permitted access rules of the New York State Commission.. on Cable Television. o) The franchises shall provide asttoethe availabito each lity of,the intervals of not more than one year, cent and the address and television channel and production equip telephone number of the person responsible for the operation of the access channel(s). Except as superseded by the terms and ofrovisionsYof this p) the Public Access rules tate franchise agreement, Commission on Cable Television are adopted by reference. 32. By execution hereof the parties hereof modify and amend the prior franchise heretofore given by the City to the Grantee. 33. The Grantee shall also be reCommissonuired osubmit fin.ancialts reports� andan- cial statements, Uniform Cable State and Federal income tax tu�othe any her onable �, financial information requested, st soon thereafter as they may ardatoisaidefinancial. The tdocumentsueetc., advice and analysis with reg from the State Cable Commission and foroutside cliangeaccountants in theirates and deems necessary. Any request by Granteeprocedure: changes set forth herein shall be subject to the following p a) Grantee shall commence the procedure by filing with the Common Council a formal written petition fo�t,he chng anges requested. This petition shall be accompaniedby pPo follows: (1) all independently audited financi.a7statements, uniform Cable Commission fin-anclGranteesforand bothState currentFederal income tax returns of thehack each of the years preceding the request and dating to the year of the previous change in rates; -11 - (ii) A statement of the capital assets, operations, revenues and services devoted and pertinent to all cable tele -- vision operations within the City of Ithaca alone, and (iii) such additional informationas the Grantee may deem relevant in support of its request. b) Upon receipt of such petition the Common Council'or its designee shall with reasonable promptness review the same and may request in writing of Grantee such additional information, explana- tion or clarification as may be reasonably necessary for determina- tion of the petition. Once such additional information is furnished, the petition shall be deemed complete. c) The Common Council shall schedule a public hearing and act upon a complete petition within 90 days of the date when the petition is deemed complete. This 90 -day period may be extended upon written agreement of both parties. The•Common:Council may consider but in no way is bound by: the advice and analyses of the New York State Commission on Cable Television and any independent. accounting firm of its choice; the status of rates and charges for comparable service in other cable television systems in similar communities in the State of New York; the overall performance of the Grantee's entire city operation including all cable services which are other than basic service; and any other useful method of rate analysis for public services. 34. The value of this franchise at the end of the term shall be zero. 35. 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 contained herein as if the Grantee had materially breached any term or provision of this 'franchise agreement. In any event the Grantee shall extend its facilities to any area containing a minimum of 35 homes per lineal. mile. 36. The franchise will supply a statement of -the capital assets devoted to the cable operation in the City of Ithaca. The pro- visions of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 37. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such new customer and to all existing customers prior to the effective date of any rate change and at least once per year. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and complaint procedures, both within ATC and those available through the City of Ithaca. w• -12- 38. Bills will always be paid to the local office or other desig- nated locations in Ithaca and billing and other records of local subscribers will be maintainedat that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints ,concerning billing and service. �. 39. Not later than ninety (90) days after the close .of"the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca'area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, Nand such other information as may reasonably be required by. the City. • .IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year first above written. CONTRACT AS MODIFIED: DATED: March 27. 1984 .CITY OF ITHACA S/by:. CITY OF ITHACA S/by: Edward J. Conley 'Mayor AMERICAN -TELEVISION AND .COMMUNICATIONS CORPORATION. S/by: Joseph J. Collins Vice President AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION • S/ b y: ViceerPresident V r-� 4 TELEVISION CABLE FRANCHISE 4 Agreement made this 20th day of January , 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place 'East,Englewooe., Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado, 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, modifi- cation, 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. 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 service lines in and over and the right to use, all pub- lic 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 Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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 bodie's 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. 5. 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 Commission, to use proper practices, and procedures within the spirit of this franchise and appropriate to the service within the geographical limitsofthis franchise. 6. Grantee, upon execution of this franchise agreement, shall, if required -be allowed to proceed -to petit-ion=the Public Service Commis- sion -of -the State of New Yorkorother-applicable State Commission 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-.e.vent-that_a_change is made in the .grade of public -street, alleys,-avenues.-.and.:gr.ounds_liy 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 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 -con- trolled 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 under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination -3- of radio interference. b) The Grantee shall certify to the City and provide such.required documentation to.prove that it is in fact meeting the minimal tech- nical standards required by the Federal Communications Commission and the New York State Commission on Cable Television. Said certification and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van to make certi- fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over-the-air broadcast pictures, pay television programs and local orgination. Additional services should be provided only after securing City approval, if lawfully required by the State Cable Commission. It is understood that litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services. 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, accessories, or convertors within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise 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, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) 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 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented from Grantee). 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. 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 avail- able at the 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 residential installation fee and moves to another residence within the City where the service_is available may have this service transferred for a $10.00 charge. 6) Cable service may -be discon-nected when _rental or instaii ation 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 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 ap- proved 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. 10) The City specifically reserves the right to conduct 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 contained in this agreement. -5- 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 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 through- out the street installations. Messenger cable shall be used to carry the coaxial cable across the streets. 14. Theholder 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, unless after review of the performance of the Gran- tee, Grantor shall determine that said performance has been in- adequate, in which case the Grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 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. -6- 17. 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. 31 hereinbelow. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regu- lations of the Federal Communications Commission 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, excepting herefrom any prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC will not apply any tax credit tothe Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provi- sion 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 con- tinue to provide such service throughout the duration of the fran- chise, 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. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at.. -any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide adequate and prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of -7 - complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intial subscription to the cable system and at intervals hereafter 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 fly service or portion thereof with- out the written consent of the City. 24. Any City. or private property damaged or destroyed shall be prompt- ly repaired or replaced by Grantee and restored to serviceable condition. 25. Grantee shall not refuse to hire or employ, nor bar or dis- charge 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 Tight to adopt, in addition to the pro- visions contained._in.the-franchise and existing applicable ordinances, such .addit.ional:_r.egulat.i_ons. _as. it shall._find iu.ce_ssary n the _exer-. - _ cise of its police -p -ower;- pr-ovided,_-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 material, of the franchise, 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. 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 com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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 of all of the initial security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security posted equals $5,000. 30. Grantee shall file requests for all necessary operating authoriz- ation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. 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, i.e., Home Box Office. b) A maximum charge of $2.00 per month per television receiver may be made for the provision by Grantee of a.converter for the recep- tion of either subscription or pay cable programming or the reception of additional broadcast channels that may be received only with such convertor. 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) American Television and Communications 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. -9- 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. Public access will be carried on channel 13. ATC, within 90 days of completion of the transfer, will diligently pursue with the FCC additional channel allocations for potential access use within the channel 2 through 13 range. 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 American Television and Communications 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 -br_oadcastingishall - remai-n with -the American--Talev.sion-and Communications -Corporation. g) The City Cable Commission shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the :City of Ithaca. 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) Public access studios shall be maintained at the company's headquarters on West State Str-eet'andwill.include television cameras, recording and playback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) 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 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 informa- tion requested, to the Common Council annually as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commis- sion and outside accountants if it deems necessary, and receive and consider the results therefrom, before any rate increase hereunder shall be granted. In addition to the above provisions, ATC will submit independently audited financial statements covering its operation of the Ithaca area cable television system from the time of the most recent rate increase when it petitions the City for an increase in rates charged to subscribers. 35. The value of this franchise at the end of the term 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. 37. The franchise will supply a statement of the capital assets devoted to the cable operation in the City of Ithaca. The provisions of this paragraph shall be invoked only-in the event of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such customer and to all existing customers prior tothe effective date of any rate change. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and Complaint procedures, both within ATC and those available through -11 - the City of Ithaca. 39. Bills will always be paid to the local office or other designated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 40. Not later than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, andsuchother information as may -reasonably be required by the City. IN WITNESS WHEREOF, we -have hereunto:_set our hands and seals the day and year first -above -written-.- -. CITY OF ITHACA BY: AMERICAN TELEVISION AND COMMUNICA TON .L ORPORATI-ON BY: Jos:sh J. Collins, Vice President SECTION 2. EXECUTION 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 American Television and Communications 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 shalltake effect immediately after filing in the office of the Secretary of State. STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this 27 day of JAN"4421 , 1977, 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 instru- ment; 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. STATE OF COLORADO COUNTY OF ARAPAHOE CITY OF ENGLEWOOD SS: Notary ublic MARTIN A. SHAPIRO Notary Pubic, State of New York No. 5 :0 Qualified in Tompkins County Term Expires March 30, 1978 On this '74 day 1975, before me, the subscriber, personally appeared -� who being by me duly sworn, did depose and state t at he is the Vice Pres. of American Television and Communications Corporation, the corporation described in and which executed the foregoing instrument; that he knows the seal of said covporation; 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. ez' )1-4-4=-(-( ry Public 7 w/ // / C� /0L// V / CABLE TELEVISION FRANCHISE AMENDMENT AGREEMENT, made this 20th day of January , 1978, 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 American Television and Communications Corporation, a Delaware Corporation, duly authorized to do business under and by virtue of the laws of the State of New York, having its principal place of business at 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WHEREAS, the Grantor had entered into a Cable Television Franchise Agreement, dated May 1, 1966 with Ceracche Television Corporation, which Agreement was amended on February 7, 1977; and WHEREAS, Paragraph "16" of the said amended Agreement dated February 7, 1977 provided that the interest of Ceracche Television Corporation thereunder could be tranferred only upon approval by the Grantor; and WHEREAS, Cerrache.Television Corporation requested that the Grantor approve the assignment of the Cable Television Franchise to Grantee herein; and WHEREAS, after a public hearing held after due public notice thereof, the Common Council of the City of Ithaca duly passed a resolution, dated August 3, 1977, whereby the Grantor consented to the assignment of the said Franchise to Grantee on the condition that, after consummation of the transfer, Grantor and Grantee enter into an Amended Franchise Agreement on the terms and conditions set forth in the aforesaid resolu- tion; and WHEREAS, the New York State Commission on Cable Television approved the. said transfer by Order dated September27, 1977; and WHEREAS, Ceracche Television Corporation and Grantee consummated the said transfer on October 12, 1977; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and other valuable consideration, the Grantor and Grantee hereby amend and restate the said .Cable Television Franchise Agreement and agree as follows: Ceracche Television, Division of American Televis on and Communications Corporatit n By: Joseph 1 J. Collins, Vice President TELEVISION CABLE FRANCHISE Agreement made this 20th day of January , 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place East, Englewood, . Colorado, party of the second part, Grantee. WITNESSETH: That in consideration o.f the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado,hereinafter referred to as Grantee is hereby granted and invested with the right and authority to construct, erect,operate and maintain buildings, machinery and apparatuswithin 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 distribuion and sale of television or radio programs for the use o.f 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 arrangements 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 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 maybe extended, for the purpose of furnishing the City of Ithaca and its inhabitants with television or radio service, provided always, that such poles, wires, trans- mission lines, distribution lines, and service lines shall not inter- fere 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 respectively for such uses. -2- 4.. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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 ubjectat 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 Commissionof the State of New York or other applicable State Commission, and. the Federal Communica- tions Commission, 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, if required 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 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 street,. 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 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 -con- trolled 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 under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination of radio interference. -3- b) The Grantee shall certify to the City and provide such re- quired documentation to prove that it is in fact meeting the minimal technical standards required by the Federal Communications Commission and the New York State Commission on Cable Television. Said certifi- cation and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van to make certification checks within the City. The Grantee agrees to such verification checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include basic service as herein- after defined and the provision of any additional cable programming to subscribers' homes'and businesses in the city through the use of cable and necessary instruments. d) Basic Service means the provision of 12 channels (channels.. 2 through 13) to subscribers' homes and businesses in the city through the use of cable and necessary instruments. Such Basic Service shall include the so-called "must -carry" stations as required by the Federal Communications Commission and the New York State Cable Commission, the Learning Channel (formerly ACSN) on the Local Access Channel 13 during times when local access programming is not available,. and the current. New York City. stations (now three in number) to the extent channels are available after local access and "must -carry" stations are pro- vided. 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 tblephone sets, accessories, or converters within the. City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or .converters 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 all 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: -4- 1) Installation: Residential establishments (maximum charges): First installation charge $25.00 Each additional installation - 15.00. Commercial establishments (maximum charges): First installation charge - Each additional installation - Cus.tom installation (residential or commercial), hidden wire, underground drop in area where drops are other- wise aerial - time and materials + 10%. time and materials + 10% time and materials + 10% 2) Monthly Rental Charges: First outlet, basic service - $ 7.00 Each additional outlet (resi- dential), basic service - $ 2.00 Each additional outlet (commercial):- • •$ 7.00 First FM outlet • $ 7.00` Each additional FM outlet - $ 2.00 The monthly rental charge for first outlet, basic service and first FM outlet shall increase to $8.00 effective January 1, 1986, and remain at no more than $8.00 at least to January .20, 1988 notwithstanding any Federal or Statelaw, rule, regula tion or ruling which permits orauthorizes any increases thereof to the contrary during this period. 3) Disconnection: No charge will be made for disconnection, and no charge will be made for the period when the service is disconnected for _ any reason whatsoever. Cable service may be disconnected when the rental or other charges are 60 days past due. 4) Connection and Re -connection To To Existing Outlet: 5) Transfer of Service: $15.00 $15.00 Any user who has paid the regular established residential installation fee and moves to another residence within .11 the city may have this service transferred for, the above charge. 6) Relocation in the Same Dwelling: Toa new location in the same room -$10.00 To a new location in another room $15.00 7) Converter Deposit (refundable): $10.00 8) 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. 9) The rates and charges for basic service set forth herein shall bind the parties for the period July 1, 1984 to at least January 20, 1988 --the date of expiration of the existing franchise. In the event that grantee exercises its option to extend -the -term in accordance with Section 15 hereof, these rates shall continue in effect after January 20, 1988. No increase in rates and charges for basic service shall be effective after January 20, 1988 and during such extended term unless first approved by.the Common Council in accordance with the provisions of Section 33 of this franchise as amended following a public hearing affording due process. Approval of increases in rates and charges for basic service shall not be unreasonably withheld. 10) All installation and other charges include applicable federal, state and local taxes, if any, except sales tax. 11) The City specifically reserves the right to conduct a sub- scriber or other rate investigation at,any time 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 ofsuchinvestiga- tion, adjust the subscribers' rates or any other rates contained in this agreement after January 20, 1988. 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 cable or wires erected shall, in all respects, comply with the provisions of all existing Codes 7.67 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 through- out the street installations. Messenger cable shall be ised..to carry the coaxial cable across the streets. 14. The holder of this franchise shall, at all tunes, keep in effect the following types of insurance Overage: 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 overall amount of not less than $1,000,000 combined single limit coverage insuring. the holder of this franchise and the City.of Ithaca against liability for property damage .and .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 expire January 19,' 1988. 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 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 termsand 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 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 appliede the hereof except upon a franchise forand approved by Common Council. 17. The Grantee shall pay to the City Chamberlain annually a sum equal to three per centum (3%) of its gross revenues from all cable service operations within the City; said gross revenues shall in- clude the charges and rentals for basic service as set forth herein, all other charges and rentals set forth herein, and all other revenues obtained from any source whatsoever on account of the provision of.cable related services of any kind within the City, in- cluding, but not limited to, basic service, augmented service, satellite service, HBO, pay television, and any other entertainment or other services. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regulations of the Federal Communications Commission 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, excepting herefrom any prior liens on the New York State Cable Commission. , -7- Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax credits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 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 constructed its system substantially throughout the primary area (the entire city). "No standards for line extension are required atthistime. 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. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hoursand correct malfunctions. as promptly as possible.. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provideadequate and prompt service to its subscribers. The Grantee shall keepa record of all complaints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of complaint. A major system failure shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees or designated committee has primary responsi- bility for the continuing administration of the franchise and imple- mentation 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 hereafter 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 with- out 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 to h.re oremploy, 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, sex, sexual_ preference, marital status or disability. 26. The City reserves the right to adopt, in addition to the pro- visions contained in the franchise and existing applicable ordinances, such additional regulations•as it shall find necessary in the exer- cise 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 material, of the franchise, 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 operatingauthority, Grantee shall post security with the City in the amount of $5,000 in. the formofa letter of credit or such undertaking as may be acceptable in form to the City Attorney. b) Said security shall be forfeited to the extent specified by the City Council if the Grantee fails to comply .with any applicable construction schedule, or if the Grantee commits a material breach ofany of the terms and conditions herein prescribed. As an alternative, 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. c) The Grantee shall beentitled 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 of all the initial security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security posted equals $5,000. 30. Grantee shall file requests for all necessary operating authori- zation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within GO days from the date this amendment is granted. 31. Public Access a) American Television and Communications Corporation shall provide one full separate single channel for public access programming on a demand basis, and otherwise comply with the pertinent New York • State Commission on Cable Television rules and regulations. b) This single channel shall be designated as Channel 13 in the basic service group. 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 American Television and Communications Corporation in its sole discretion. 3 e) Studio time shall be provided at accost not to exceed the actual cost of operating the studio. f). The administration of public access broadcasting shall remain with the American Television and Communications Corporation. g) The City -able Commission shall act as the Common Council agent inresolving disputes between the American Television and Communications Corporation and public access users in the City of Ithaca. 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) Public accessstudios shallbe maintained at the company's. headquarters on West State Street and will include television cameras, recording and playback equipment, switching equipment and an editing capability. In addition ATC shall make available. two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposedabove regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) All access broadcasts shall -conform to all applicable Federal Communications Commission and State Cable regulations. m) American Community Cablevision will maintain a record of the use of the designated television channel(s); such record to be available locally for public inspection and retained for aminimum period of two years. n) American Community Cablevision will prohibit the public access channel from being used for the promotion or sale of commercial products or services, including advertising by or on behalf of candi- dates for public office unless specifically permitted by the public access rules of the New York State Commission on Cable Television. o) The franchises shall provide notice to each subscriber, at intervals of not more than one year, as to the availability of the television channel and production equipment and the address and telephone number of the person responsible for the operation of the access channel(s). - p) Except as superseded by the terms and provisions of this franchise agreement, the Public Access rules of the New York State Commission on Cable Television are adopted by reference. 32. By execution hereof the parties hereof modify and amend the prior franchise heretofore given by the City to the Grantee. 33. 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 requested, to the Common Council annually as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commission and outside accountants if it deems. necessary. Any request by Grantee for any change in the rates and changes set forth herein shall be subject to the following procedure_ a) Grantee shall commence the procedure by filing with the Common Council a formal written petition for the changes requested. This petition shall be accompanied by supporting information as follows: (1) all independently audited financialstatements, uniform Cable Commission financial reports and State and Federal income tax returns of the Grantee for both current and each of the years preceding the request and dating hack to the year of the previous change in rates; w. • (ii) A statement of the capital assets, operations, revenues and services devoted and pertinent to all cable tele- vision operations within the City of Ithaca alone, and (iii) such additional information as the Grantee may deem relevant in support of its request. b) Upon receipt of such petition the Common Council or its designee shall with reasonable prothptness review the same and may. request in writing of grantee such additional information, explana-.-: tion or clarification as may be reasonably necessary for determina- tion of the petition. Once such additional information isfurnished:, the petition shall be deemed complete. c) The Common Council shall schedule a public hearing and act upon a complete petition within 90 days of the date when the petition is deemed complete. This 90 -day period may be extended upon written agreement of both parties. The Common Council may consider but in no way is bound by: the advice andanalyses of the New York State Commission on Cable Television and any independent. accounting firm of its choice; the status of rates and charges for comparable service in other cable television systems in similar communities in the State of New York; the overall performance of the Grantee's entire city operation including all cable services.. which are other than basic service; and any other useful method of rateanalysis for public services. 34. The value of this franchise at the end of the term shall be zero.. . 35. 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 theevent that the new land area so annexed is notwired 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. In any event the Grantee shall extend its facilities to any area containing a minimum of 35 homes per lineal mile. • 36. The franchise will supply a statement of. the capital assets devoted to the cable operation in the City of Ithaca. The pro- visions of this paragraph shall be invoked only in the event of rate change request by the franchisee. 37. ATC agrees to supply a written statement to each new customer. prior to commencing installation for service to such new customer and to all existing customers prior to the effective date of any rate change and at least once per year. This. statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; . (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability - of service, customer rights to service, and complaint procedures, both within ATC and those available through the City of Ithaca. • . ; . • • • . • -12- 38. Bills will always be paid to the local office or other desig- nated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have cmpleteawaloritYtor"°1"allccaplaints concerning billing and service. . .” 39. Not later than ninety (90) days after the close.of the Grantee's fiscal year, ATC shall make a written and oral report to the City .. Cable Television Commission. This report is to be presented in. an _ open public meeting and shall consist of a statement of the financial status of the Ithaca'area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, _and such other information as may reasonably be required by the City. 7113 - IN WITNESS WHEREOF, we have hereunto set our hands and seals the 'day and year first above written. CONTRACT AS MODIFIED: DATED: March 27. 1984 CITY OF ITHACA. S/by:. • Acting A ayor AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION S/by: CITY OF ITHACA :S/by:. Edward J Conley Mayor AMERICAN. TELEVISION AND COMMUNICATIONS CORPORATION S/by: Joseph. J. Collins Vice President giakit TELEVISION CABLE FRANCHISE Agreement made this 20th day of January , 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION, a domestic corporation duly organized under and by virtue $ f the laws of the State of New York, having its principal place of business at 20 Inverness Place East,Englewooc ., Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado, 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, modifi- cation, 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. 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 service lines in and over and the right to use, all pub- lic 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 Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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 bodie's 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. 5. 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 Commission, 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, if required be allowed to proceed to petition .the Public Service Commis- sion of the State of New York or other applicable State Commission and Federal Communications Commission for any approval required to be ha( 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 street, alleys, avenues.and.gr.ounds.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 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 -con- trolled 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 under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as_in the elimination -3 - of radio interference. b) The Grantee shall certify to the City and provide such -required documentation to.prove that it is in fact meeting the minimal tech- nical standards required by the Federal Communications Commission and the New York State Commission on Cable Television. Said certification and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van to make certi- fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over -the -air broadcast pictures,, pay television programs and local orgination. Additional services should be provided only after securing City approval, if lawfully required by the State Cable Commission. It is understood that ,litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services. 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, accessories, or convertors within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise 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, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) 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 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented from Grantee). 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 adcess 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. 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 avail- able at the 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 residential installation fee and moves to another residence within the City where the 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 $5.50 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 ap- proved 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. 10) The City specifically reserves the right to conduct 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 contained in this agreement. -5- 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, w24itten 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 through- out the street installations. Messenger cable shall be used to carry the coaxial cable across the 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, unless after review of the performance of the Gran- tee, Grantor shall determine that said performance has been in- adequate, in which case the Grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 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. -6- 17. 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. 31 hereinbelow. The City may increase the per centum sum in the first sentence of this par graph as permitted by law or regu- lations of the Federal Communications Commission 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 ofthe creation thereof, excepting herefrom any prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC will not apply any tax credit.tothe Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provi- sion 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 tts system substantially throughout the entire City. Grantee shall con- tinue to provide such service throughout the duration of the fran- chise, 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. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at -any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide adequate and prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint,.and disposition of -7 - complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intial subscription to the cable system and at intervals hereafter 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 with- out the written consent of the City. 24. Any City or private property damaged or destroyed shall be prompt- ly repaired or replaced by Grantee and restored to serviceable condition 25. Grantee shall not refuse to hire or employ, nor bar or dis- charge 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 Tight to adopt, in addition to the pro- visions contained..in the -franchise and existing applicable ordinances, such additional _regulati.ons _as iit shall .ind•_necessary in the _exer-_ cise 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 material, of the franchise, 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. 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 com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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. 'x d) No forfeiture shall be imposed for failures beyond the reasonable control of the Grantee. e) In the event of forfeiture of part of all of the initial security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security,posted equals $5,000. 30. Grantee shall file requests for all necessary operating authoriz- ation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. 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, i..e., Home Box Office. ' b) A maximum charge of $2.00 per month per television receiver may be made for the provision by Grantee of a converter for the receP- tion of either subscription or pay cable programming or the reception •of additional broadcast channels that may be received only with such convertor. 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) American Television and Communications 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. -9- 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. Public access will be carried on channel 13. ATC, within 90 days of completion of the transfer, will diligently pursue with the FCC additionaio channel allocations for potential access use within the channel 2 through 13 range. 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 American Television and Communications 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-publi-c access broadcasting -shall - remain with the American -Television and Communications Corporation: g) The City Cable Commission shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the City of Ithaca. 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) Public access studios shall be maintained at the company's - headquarters on West State Street and will -include television cameras recording and playback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) 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 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 informa- tion requested, to the Common Council annually as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commis- sion and outside accountants if it deems necessary, and receive and consider the results therefrom, before any rate increase hereunder shall be granted. In addition to the above provisions, ATC will submit independently audited financial statements covering its operation of the Ithaca area cable television system from the time of the most recent rate increase when it petitions the City for an increase in rates charged to subscribers. 35. The value of this franchise at the end of the term 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. 37. The franchise will supply a statement of the capital assets devoted to the cable operation in the City of Ithaca. The provisions of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such customer and to all existing customers prior tothe effective date of any rate change. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and complaint procedures, both within ATC and those available through -11 - the City of Ithaca. 39. Bills will always be paid to the local office or other designated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithacaeneral manager will have complete authority to resolve all compla!nts concerning billing and service. 40. Not later than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, and such other information as may -reasonably be required by the City. IN WITNESS WHEREOF, we have hereunto_set our hands and seals the day and year first -above --written. CITY OF ITHACA f+4 yo AMERICAN TELEVISION AND COMMUNICAI"ION .% ORPORATIDN BY: Jos /J. Collins, Vice President SECTION 2. EXECUTION 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 Americas Television and Communications 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. STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) 7 dayof -J41"4/ , 1977, before me, the subscriber, On this 2beingb me duly sworn, personally appeared Edward J. Conley, who, by did depose and state that he is Mayor of the CITY OF ITHACA, the corporation described in and which hsaieecxutedathe enforegoi1g; that insaru ment; that he knows the seal �,f by thereto affixed is such colpofathesCity of; aIthacawas andithadt he order of the Common Counc signed his name thereto by like order. STATE OF COLORADO COUNTY OF ARAPAHOE CITY OF ENGLEWOOD SS: MARTIN A. SI'_P:RO Notary ;72`.c C.i 'NCI' York No Qualified in Tu r.pkias County Term Expires March 30, 1976 ,4((,�1975, before me, the subscriber, personally appeared.�tr On this - day °# 9--'-(�r who being by me duly sworn, did depose and state that.he is the Vice Pres. of American Television and Communications Corporation,- the e corptionaon described inhe and which executed the foregoing ora 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. 711 amu/ • /C/Li/,S/ ,6....c_,(_{ % 7 Notary Public CABLE TELEVISION FRANCHISE AMENDMENT AGREEMENT, made this 20th day of January , 1978, by and between the City of Ithaca, a municipal corporation duly organized and existing under and by virtue of the laws of 1 the State of New York, party of the first part, Grantor, and American Television and Communications Corporation, a Delaware Corporation, duly authorized to do business under and by virtue of the laws of the State of New York, having its principal place of business at 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WHEREAS, the Grantor had entered into a Cable Television Franchise Agreement, dated May 1, 1966 with Ceracche Television Corporation, which Agreement was amended on February 7, 1977; and WHEREAS, Paragraph "16" of the said amended Agreement dated February 7, 1977 provided that the interest of Ceracche Television Corporation thereunder could be tranferred only upon approval by the Grantor; and WHEREAS, Cerrache Television Corporation requested that the Grantor approve the assignment of the Cable Television Franchise to Grantee herein; and WHEREAS, after a public hearing held after due public notice thereof, the Common Council of the City of Ithaca duly passed a resolution, dated August 3, 1977, whereby the Grantor consented to the assignment of the said Franchise to Grantee on the condition that, after consummation of the -transfer, Grantor and Grantee enter into an Amended Franchise Agreement on the terms and conditions sePforth in the aforesaid resolu- tion; and WHEREAS, the New York State Commission on Cable Television approved the. said transfer by Order dated September27, 1977; and WHEREAS, Ceracche Television Corporation and Grantee consummated the said transfer on October 12, 1977; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and other valuable consideration, the Grantor and Grantee hereby amend and restate the said Cable Television Franchise Agreement and agree as follows: Ceracche Television, Division of American'Televis on and Communications Corporatitn By: Joseph J. Collins, Vice President TELEVISION CABLE FRANCHISE 1978 Agreement made this 20th day of January • > 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.AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place East;Englewood.; Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20 Inver- ness Place East, Englewood, Colorado, 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, modifi- cation, 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. 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 service lines in and over and the right to use, all pub- lic 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 tile 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 Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- - 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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 bodie's 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. 5. 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 Commission, 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, if required -be allowed to proceed to petition.thePublic Serv-ice.Commis- sion.of.the State of New York.or other -applicable State Commission and Federal Communications Commission for any approval required to be hacl 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 street, 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 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 -con - .trolled 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 under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of.carrying of television signals shall warrant, as well as in the elimination.- -3 -- of radio interference. b) The Grantee shall certify to the City ee�dnprovide suchminima.reech- quired documentation to,prove that it is in fact meeting nical standards required by the Federal Communications Commission and the New York State Commission oon Cable Television. may berequested certification and documentation be provided 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 services of the New York State Commission on Cable Television engineering van to make certi- fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c). Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over -the -air broadcast pictures, pay television programs and local orgination. Additional lservices should be provided only after securing City app ly required by the State Cable Commission. It is understood that litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services., 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, accessories, or convertors within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise herein granted. b) The holder of this franchise shall be required to permit any individual or corporation to have access tohe the pservictes ofgular of the holder of this franchise, s ) e only installation fee and monthly charges which are hereby established as follows: -4- .1) 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 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented from Grantee). 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. • 2) Suspended service: No charge for disconnec.ti.ng.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 avail- able at the 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 residential installation fee and moves to another residence within the City where the 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 $5.50 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 any way. 8) Any increase of the maximum charges must first be ap proved 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: 10) The City specifically reserves the right to conduct 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 contained in this agreement. -5- c) Grantee of this franchiseshall 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 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, andall 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 cable shall be used to. carry the coaxial cable across the 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, unless after review of the performance of the Gran- tee, Grantor shall determine that said performance has been in- adequate, in which case the Grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 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 franchiseshall be allowed during the period hereof except upon a franchise applied for and approved by the Common Council. -6- 17. 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 asset forth in paragraph No. 31 hereinbelow. The City may increase the per centum sum in the first sentence of.this paragraph as permitted by law or regu- lations of the Federal Communications Commission- 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, excepting herefrom any prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provi sion 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 con- tinue to provide such service throughout the duration of the fran- chise, 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. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at..any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient. to provide adequate and prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers. identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of f -7- complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 -subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review: The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intial subscription to the cable system and at intervals hereafter 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 with- out the written consent of the City. 24. Any City or private.property damaged or destroyed shall be prompt- . ly repaired or replaced by Grantee and restored to serviceable condition. 25. Grantee shall not refuse to hire or employ, nor .bar.or.dis- charge 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 Tight to adopt, in addition to the pro- visions contained in the franchise and existing applicable ordinances, such additional .regulati.ons _as it shall _.find inecessary.:;in the _exer- cise 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 material, of the franchise, 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. 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 com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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 of all of the initial. security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security posted equals $5,000. 30. Grantee shall file requests for all necessary operating authoriz- ation: with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. 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, i.:e., Home Box Office. b) A maximum charge of $2.00 per month per television receiver may be made for the provision by Grantee of a converter for the recep- tion of either subscription or pay cable programming or the reception of additional broadcast channels that may be received only with such convertor. 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) American Television and Communications 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. -9- 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. Public access will be carried on channel 13. ATC, within 90 days of completion ofthe transfer, will diligently pursue with the FCC additional channel allocations for potential access use within the channel 2 through 13 range. c) Access to the separate channel shall be providedona 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 American Television and Communications 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..publ:i:c- access broadcasting._ shall remain. with the American Television -and Communications -Corporation. g) The City Cable Commission shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the :City of Ithaca. - 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) Public access studios shall be maintained at the company's headquarters on West State Street•and.will.include television cameras recording and playback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on.the use of the equipment shall be. provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposed above regarding public-access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) 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 also be required to submito, its annual ltfifinancial statements, Uniform Cable Commission financial p ts d Federal income tax returns and any other reasonable financial informa- tion requested, to the Common Council annually as soon thereafter as they may be available. The City may request the St advice iendanis with h- regard to said financial documents, etc.,tate.r CaCalbllee ommi sion and outside accountants if it deems necessary, consider the results therefrom, before any rate increase hereunder shall be granted. In addition to the above provisions, ATC will submit independently audited financial statements covering its operation. of the Ithaca area cable television system from the time of the most recent rate increase when it petitions the City for an increase in rates charged to subscribers. 35. The value of this franchise at .the end of the term shall be zero. 36. In the event the Grantor annexes additional landse sareasainithe future, then all of the conditions of th y 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, 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. • 37. The franchise will supply a statement of the capital assets • devoted to the cable operation in the City of Ithaca. The provisions of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new. customer prior to commencing installation for service to such customer and to all existing-customers prior to the effective date of any rate rc.hange This statement shall contain the following: (1)Statement pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures. for notifying ATC of difficulties with service, the ATC "trouble" phone number; hours of availability of service, customer rights to service, and Complaint procedures, both *within ATC and those. available through -11 -- the City of Ithaca. 39. Bilis will always be paid to the local office or other designated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is.to.respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 40. Not later than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an • open public meeting and shall consist of a statement of the -financial status of the Ithaca area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, and -such other information as may -reasonably be required by .the City. . IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year first -above -written:- - ..CITY irst"above-written.- CITY OF ITHACA . BY: AMERICAN TELEVISION AND COMMUNICA,'ION / ORPORATION- BY: 1�.Sr Jos1phiJ. Collins, Vice President SECTION 2.- EXECUTION 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 American Television and Communications 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. STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this 27 day of JA" 4421 , 1977, 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 instru- ment; that he knows the seal of said corporation; that the seal thereto affixed sucflte ofthat Ithacawas andithadt he oorder of the Common signed his name thereto by like order. STATE OF COLORADO COUNTY OF ARAPAHOE CITY OF ENGLEWOOD SS: MARTIN A. SH: rIRO Notary Public, State of Nev., York No. Qualified in Tompkins County Term. Expires March 30, 147e On this -576 day o 7,1, 19757, before me, the subscriber, personally appeared% 41 ^', who being by me duly sworn, did depose and state that he is the Vice Pres. of American Television and Communications Corporation, the corporation described in and which executed the foregoing instrument; that he knows the seal of said corporation; that the seal thereto to affaffixed xedrisosuch corporate seal; that it was affixed by ot Directors of said corporation, and that he signed his name thereto by like order. 5L72 Notary Public , Gni/ �L'/t1/�',/ CABLE TELEVISION FRANCHISE AMENDMENT AGREEMENT, made. this 20th day of January , 1978, by and between the City of Ithaca, a municipal corporation duly organized and existing under andby virtue of the laws of the State of New York., party of the first part, Grantor, and American Television and Communications Corporation, a Delaware. Corporation, duly authorized to do business under and by virtue of the laws of the State of New York, having its principal place of business at 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WHEREAS, the Grantor had entered into a Cable Television Franchise.Agreement, dated. May 1, 1966 with Ceracche Television Corporation, which Agreement was amended on February 7, 1977; and WHEREAS, Paragraph "16" of the said amended Agreement dated February 7, 1977 provided that the interest of Ceracche Television Corporation thereunder could .be tranferred only upon approval by the Grantor; and WHEREAS, Cerrache.Television Corporation requested that the Grantor approve the assignment of the Cable Television Franchise to Grantee herein; and WHEREAS, after a public hearing held after due public notice thereof, the Common Council of the City of Ithaca duly passed a resolution, dated August 3, 1977, whereby the Grantor consented to the assignment of the said Franchise to Grantee on the condition that, after consummation of the transfer, Grantor and Grantee enter into an Amended Franchise Agreement on the terms and conditions set forth in the aforesaid resolu- tion; and WHEREAS, the New York State Commission on Cable Television approved the. said transfer by Order dated September27, 1977; and WHEREAS, Ceracche Television Corporation and Grantee consummated the said transfer on October 12, 1977; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and other valuable consideration, the Grantor and Grantee hereby amend and restate the said Cable Television Franchise Agreement and agree as follows: Ceracche Television, Division of American Televis/on and Communications Corporati/'n r! By: Joseph . Collins, Vice President OFFICE OF MAYOR MEMO TO: ECEI Vt JUN 291979IT. CITY CLERK'S OFFICE Ithaca, N.Y. CI Y OF ITHACA 1 108 EAST GREEN STREET ITHACA, NEW YORK 14850 TELEPHONE: 272-1713 CODE 607 Mrs. Ethel Nichols, Chairman of the Charter $ Ordinance Comm. Mr. Raymond Bordoni, Alderman/Cable Commission Mr. Martin A. Shapiro, City. Attorney Mr. Joseph Rundle, City Clerk FROM: Mayor Edward J. Conley DATE: June 27, 1979 SUBJECT: State of New York Commission on Cable Television - In the Matter of The Establishment of Rates Charged By Cable Television Companies Docket No. 90172 Attached hereto please find the above entitled matter for your information. EJC:rb ATTACH. STATE OF NEN YORK COMMISSION ON CABLE TELEVISION In the Hatter of The Establishmentof Rats Charged. by Cable Television Companies NOTICE OF INQUIRY (Adopted: fay 16, 1979; Released: June 14, Pocket . No . 9O172 . 1979) . 1. x L,<ASE TAKE NOTICE, .That an INQUIRY is hereby undertaken into the matter of the.establishment of rates charged by cable tele- vision companies withintheEtate of New York. It is our intention to investigate the effectiveness,'end propriety of current mechanisms for ratemaking and the 'propriety .end_necessity of any regulatory or statutory changes in"current rsteme'cing mechanisms.- For these purnoses, we -invite the comments and evidentiary submissions of all interested parties. 2. The rates charged for cable television services are generally subject to section 825 of the Executive Law, which provides, in part, as follows: 1. Except es otherwise provided in this sec- tion, the rates charged by a cable television company shall be those'specified in the: franchise which may establish, or provide for the establishment.of reason- able classifications Of 'service and categories of sub- scribers, or charge different rates for differing ser- vices or for subscribers in categories. 2. Such rates may not be changed except by amend went' of the franchise.- Section 825 also permits rates to be established by the Commission on Cable Television..("Commission") when existing.rates are found to be 'discriminatory`or preferential,".when service is found to be `inadequate, when the municipal cable television franchise fails to provide for rates,. or'when the municivality and the company are un- able -to egree "'upon" 'retes` end certify the ratemaking power to the Coinission (sections 825 (4) and (5)) .. moreover, section 825 (3) iiniits the effectiveness of franchise rate provisions to ten years, or five years in the case of renewed franchises, and until January 1, 1983 for provisions pre-existing the statute. 3. The Commission's rules end regulations elso require municipal control of cable television. rates. Section 594.9(c) of our rules (9 AYCRR, Subtitle TR, "Sart 589, et sea.) requires a specification of proposed rates in franchise applications. rection 595.1(e) requires rates to be specified in the trent: ii ne itself: 3 595.1 Required contents of franchises (e) A provision setting forth with specificity ell rates to be charged by the franchisee for any - • aspect of cable television service, or-a.provision certifying that the municipa4tyand the_franchisee are unable to 'agree upon the rateOr rates to be . charged and specifying that said rate(s):shall be de- termined by the Commission onkCable Television pursuant to section 825(5)(e) of the EXecutive Law.3 3 Typically, rates are specified -with reiPectto such Matters ae-inStallation of first-serviceCOnnection; . - -installation of additional connectionsOa saMe,pre7. basic monthly service for.firstconnection 'basic -monthly service'for additional cOnnections; subscription channel or_channels; Convertariuse*, leased channel or channels; and bulk service • =. hotels, motels and others similarly situated; The franchise may establish reasonable terms and . conditions pertaining to the extension of 'facilities within.the franchise area'. 'Rate differentials, if •).. any, will be approved only if such differentials accurately reflect cost differentials incurred in extending such facilities. . Nothing contained.herein.dhali be 6Onstrued.tp prevent the offering; On a-non-diScriminatorY,„ basis, of sales. promotiOnS'or'other discounts not specified in the franchise. • ,.. Part 592 of the rules governs procedures for the amendment offren- chises (subpart 592-1), including all amendments to modify rates, and governs procedures for applications pursuant to section 825(5)(e) of the Executive Law (subpart 592-2), by which e municipality and 8' cable television company certify ratemaking nower to the Commission.* 4. ?ursuant to the current statutory framework, there appears a clear legislative intention that -cable television rates be strictly controlled through the mechanism of franchise ,lirovisions negotiated. between the ceble television companies and the .'municipelities..It appears equally clear.that the same statutory *framework was intended to limit the ratemaking functions'of the Commission -to specific • • * We have recently proposed amendment.of part 592-2 of the rules to allow for franise provisions which mandate 8 certification of rate- making to this Commission Tursuant to 'section 825 (5) (e) of the " '-1- Tr.' 7 , 7,7 r " . . • circumstances. The Commission may review rates upon the award, re- newal, amendment or transfer of a municipal franchise (sections 821 and 822 of the Executive Law). However; even in these cases the Commission is obligated to issue a certificate of confirmation of the • franchise (section -821(3)) or to` approve the amendment,- renewal or trensfer of the , franchise (section 322,(3)) ,- unless it finda non- ' conformance with its' regulations or i arosoective violation of law, regulations..or`;ommission standards'or the public interest.; Under section 825 of 'the Executive '14; the.Cammission may set.rates on a temporary -basis to adjust -for `'discriminatory or preferential" rates or inadequate service, or when rates are found.which "are not es- tablished by or - ;pursuant 'to -the terms of the a franchise" _ (section 825(5)(d)), or when, 'by .joint -request , . .tie comrgny :and municipality certify that 'they are "unable to agree',Uoon rates._ (section 325(5) (e)). In the two latter cases, "the' Commission"io' mandated to "fix .sates at e. level comparable:to rates currently being'fixed in cable tele- vision frenchises for comparable service in comparable. service areas." 5. In attempting to teternine'"a`workeble standard for.our review of rates under'.sections 821 -and 822 of•the Executive Law, this Commission adopted'a policy of substantial reliance upon the dis- cretion of franchising municipal governments and_reserved:rate re -_- view of a snore than'routine nature to only those cases in which it was presented with proposed rates substantially above, or "out of line" with, a "range of reasonableness" shown by other cable cam- • genies idewChannels Coro., ORDER A Ps ROVING A:•iNhf•:.trrs , July 12, ..1973. .In recent years,.wellave:considered the edoption of policies -for the :regular; or even auto atic., ' ed uatsnent of the "range of - reasonablenese ment oned ' in the' NewChannels decision, and we have focussed our efforts in°the'-direction'of assistingmunicipal governments in the effective:performance'of their responsibilities to. negotiate rates.. See, 'e;g., 'reparation and :,.valuation of Rete Increase 4212licetions ADiscussion, January 4, 1977; and GUIDELINES FOR CABLE TELEVISION LINE EXT^t; Iojd PROVISION, May 9, 1977. • • • 6. • The 'comparable rates" standard imoosed by sections 825(5)(d) and (e) of.the Executive.aw has also caused us to. review the para- meters .of our ratemaking role. On .march 26, 1975, .in its OR)• 1 PRESCRIBING RATE;,' Long "Island eblevision' Corporation et al_, this • Commission mede .the following 'statement: �`r`— . . .we have established rates pursuant to section ,825(5) (e) in e' number of 'cases, and, although we have not defined the 'comparable rates' standard' more specifically then the statutory language, we have adopted concise reguletions for the procedures applicable to these proceedings. OR p.R /,-)O_'TING REGULATIONS, Docket No. 90111, April 11, 1978 (adopting subpart 592-2 of our rules). - 4 - 7. 'The current statutory framework for cable television .regula- tion in. this :,tate (article 28, of ,the Executive Law) was adopted .on Ak4y 24, 1972, . with the enactment of ,Chapter -466 of .the Laws of 1972 (effective January 1., 1973). ',This legislation was, significantly influenced-by.the regulatory program for -cable television- recently adopted by the -Federal Communications Commission ("FCC")..- ' CABLE T;.L iTI�i4Td R:PORT AIT? Off►? :It, Adopting -?art .76 of the FCC Rules .and Regulations (47 C.F.Ik. ;'art 7O10, February 3, 1972 (effective .i:iarch 31, 1972). This regulatory program was .enunciated, as early as June 15, 1971 in public testimony before the Senate Communications `ub- committee (reiterated on July 22.,.1971 before -the -House Comnunice- . tions and :'ower 3ubcoinmittee, and . set forth in a formal =ER OF • INT NT to the Congressional tSubcommittee Chairmen, -FCC -.71-787, August. 5, 1971), end it included .regulations which requires. that: The franchising authority has specified ora')roved the initial rates which thefranchisee charges.sub-. scribers forinstallation of eauipinent and regular subscriber services. No changes in rates charged to - subscribers shall be made except as authorized -by the/franchising:authority efter.,an appropriate pub- lic proceeding affording due process. ::(47.C.F.R.: 5 76.31()(4)) " 8. The nature of cable television- service has changed dramatically in the years since the creation of the.reguletory framework for this -service by the FCC and this Ctate.:Mith_,this change has come'sig- nificant-modificetions of reguletory.-approach on the federal level and by `State end municipal` ,governments . in. other -parts of the -country. iunicipal governments end other parties concerned with cable tele- vision services in New York have also cone to approach those services differently than they would have five or. ten ,years ago. 9. In the last few years, cable television has grown from what was primarily a community antenna service to what is now a sophisti- cated program delivery systemproviding many -non -broadcast events and the signals of non -local broadcast: program outlets, often by means "of regional or nation -wide -.transmission: networks. .While most cable subscribers a few years ego desired the service in order to obtain' adequate reception of local .signsls,.many'are now' buying . this ser- vice for the - purpose of obtaining . programming net available through local broadcast stations. The growth pf "gay cable" special enter- tainment channels, sold to subscribers in addition to the more "basic" cable services, has been particularly dramatic;- while these "pay cable" services were effectively non-existent in 1972', they have be- come a staple of cable television service in New York today, • We are also very mindful of the substantial development of local cable tele- vision prograimning in this State within the last several years through the use of public and educational access channels and facilities and 10. ..Iodifications of FCC policy in recent years require our re- examination of regulatory approach. By 1974 the FCC had ach oted a federal preemption over the ?-tate and local control of ".'ay cable" rates and programming. tee; e.g., Clarification of Cable Television Rules and Notice of ?r000sed Rule Making And Inquiry in Dockets 20018:_..et_a1., 46 FCC 2nd 175. This preemption has-been confirmed by the federal courts, Brookhaven v. Kelly, 428'F. ,r;up . 1216 (3.D.N.Y. 1977), ary)eal den. 573. F. 2d 765 (2d Cir. 1978), nets. for cert. den. Nos. 77-1835 ano477-1845 (April 16, 1979). : The de- cision.,;of the District Court in Brookhaven . was accompanied .byan order prohibiting this Commissionfromattempting to regulate the rates of s'-Iay cable" program services. This- action alone might be e good reason to consider modification of the, broad .rate ..limiting language of section` 825 of ` the :Executive .Lw. ='=.11., 'Iver) in the area -of - 9basic" .rates .the,, F CC• has revised .its , regulatory-policy;...In.-1976 it -removed 'from .its own regulations the requirement that rates be established within the. franchise (47 C.F.R. 5'76.31(0(4), quoted above)`: " 'REPORT AirODER. in locket No. 20681, "FCC -76-747, 60 FCC 2d 672. Although the_.;ECG expressly indicated that its own de -regulation of rates was in no way preemptive of :?tate and local controls over "basic" rates, it stated that: It now appears to us that there ere arees or - circumstances in which the regulation of regular subscriber ratesmay be neither ,desirable nor.. -'necessary arid that. local -authorities should, be permitted to decide for themselves whether they will undertake such regulation. , • in support of this' conclusion, the FCC cited _such factors as "com- petitive'alternatives to cable television°°. creating a market in which rete regulation was superfluous, and -market conditions in some loce- -tions-which make cable television "a marginal investment for a 7ru- dent.businessmen." •• - 12. In the Past few years other states which have regulatory programs for csble television services have made extensive reevalua- tions of their ratemaking roles In New Jersey, cable television companies operate under the regulation of the Office of Cable Tele-, vision of the Department of Public .Utilities (Cable Television Act, 48 5A, effective Decesnber.15, 1972) . On April 10,_ 1975, the New Jersey Office of Cable Television issued a Notice of Rule making Proceeding on Ceble Television Rates (7 11.J .R. 172(0). This Proceedingresultedin the adoption of new regulatory -rules on April 13, 1978 which provided for a ''common tariff" structure for thE_ establishment of rates on e state --wide hesis . Dnder the Y1ew Jersey system, municipal governments mRy still be involved in the retemaki-4 process, but all cable companies have heel) given the option to join - 6 - the• "coMMon tariffy' system, which would permit automatic rate edjust ments within'given_standPrds (a classification system is used to grant greater freedom :to ; `'competitive'', systems) . • 13: In ; iesaachu setts'," cable .television is . regulated by: the Commirnity Antenna Television Commission (5A Anno. Laws :+Bas's. •Chap. =166A), which in 1974 assumed ,direct control over ratemaking pro= ceedings -(First Re.,ort and Omer, December 18, 1974;. Cecond Report and Order; -perch- 1 0-75). Cterting in 1976 thea Aessachusetts CATV Commission begari a series of. tna jor reviews of the ratemaking process towards the goal of substantial, de -regulation 2nd .maximum. rate flexibility* for comp8nie3 :o?erating •;in: '1competitive".: service. areas. • NOTIC: - OF INQUIRY AN PROPOSEDIME MAKING ON REGULATION (Docket No. R-1), July 6, 1976; Report and. Order, .)•:iay 20,j9.77 '(terminating tbocket J1o. R-1); NOTICE OE-pR0?O3Eb R > ; NG..(Docket.:-No. � March 6, 1978. � �'�� I_ :R-2) = ' In addition,' legislation is -now *ending in ':the i!lassechusetts" legislature which. would, ,_if .passed, give .,the ,CPTV Commission -express authority to de-reguiete retes in areas. of that Commonwealth found'to provide "adeeuate'comnetitive alternatives" to cable television.- ' 14. Within New York the approach of municipal. governments to their ratemaking functions hes 'varied- significantly. Some. -localities ap- pear to ssuine a liberal. "attitude toward.. the: establishment.. of rates while some a pear to prefer to:avoid direct res?onsibility for. contro of rates. For example,•one town has consistently refused. to include a rate schedule in 'one of ' its cable .television ,franchises :and hes consistently certified ratemaking Power to this ComMission pursuant to section 825(5)(e) of the Executive .Taw, As recently ..as October 1978, one Major city ha attempted to ado6t -a cable television or- dinance -which would event*elly allow rates to be set,by the franchise( without -franchise arendment ' (subject -to .possible municipal review) . This approach. was modified at our direction (79-045).. 15. In consideration of the above, we are hereby requesting the comments end submissions of all parties on the..matters'd_escribed herein. • :le wish to elicit cominerits on both the general jurisdictional issues discussed above and on the more s?ecific.;issues discussed herein below., which relate. to ' problems already, faced' under the. cur= rent statutory -end regulatory. -scheme. :''arties are encouraged. to address both the general and specific issues in their comments; 16. `lith respect "to the -general jurisdictional issues raised, we request comments addressed in particular to the following questions:- • _ - *het is a "rate", for -purpoces ' of. the regulation of cable service ;? - 'Mould allreton for oahlP tolFviston cPrvicPn by st_ric'rZy If not, what' rates should be controlled and under'wh circumstances? On' what governmental level or levels` and by what mechanisms ,should Cable -television. rates' be controlled? t ' :}low effective end efficient' is the current sta- tutory frame- work for cable' television' retemeking, on a practical and on a theoretical -level,: and how well served is the public ` interest .by this -currentramework? • • 'jihat limitations -should -apply -to municipal governments, and 'whet standerds should.they-employ, in,their review and analysis of rate incr.ese apilications? "'hould' muiiic aalities' be rectuired to consider rate increase aprnlicstions by cable television companies, _or. to approve such increases -when reasonable? • ':' Should municipalities be permitted to waive their ratemaking responsibilities, by allowing flexibility in local rates, by allowing the State Commission to set rates, or by other options?. should cable television systems be permitted to their own rates without limit or subject to the ofmunicipalgovernments or this Commission, or fixed maximum limits? -, a . Should retema';ing be limited to %esic"'cervices how should '"basic" -.services be defined? i establish veto power within" 'onlq;`and • Should the rates charged by small sized cable television systems le, " • ,. under 1,000 • or 5.00 subscribers) be:exempt from regulation. or restriction- on a municipal or ?tate' level? ▪ TTould the 'itblic interest be served by the ado ition 'of a "common tariff'" schedule of rates applicable to all' cab le television systems? 'ihat -statutory " modifications are required .to perfect an appropriate ratemaking framework for cable television ser- vices in New York, -and to comply with current legal re strictions on ratemaking? 17.:'For-some time we have expressed our concern with particular rate provisions, often included -in franchises et the municipality's request. These include: a variety of penalty clauses for subscriber ^nvTng t problems (late fees, collection .charges, s->o_cial revr.vik c- . -9- (c) - the particular problems relating to the rates for the rental and sale of cable television channel converter devices (either as a necessary park of "basic" service, or as part of an optional tier of programming); arid'conditions imposed upon sub- scribers for the use -Of Such -converter devices (e.g.; restrictions on requirements for=private.owriership'of the devices, penalties imposed for loss or damage' of the devices, converter , device. mein- tenance contracts)..: 19. With respect to "line extension", we intend to 'devote a separate review to the issues raised and we shall examine these . issues -only in a general context within.the.Incuiry hereby adopted. Comments -relating to. basic -matters _of jurisdiction and -the' need for a control of 'aline extension"'rate provisions may be submitted in response to this Inquiry, while'comments of amore specific.nature' on "line extension" formulas should be reserved;,for, a. possible future Inquiryon this' subject. 20. Pith respect to.the specific standards for adjudications the propriety of rates, and the issues raised•,above in paragraphs 17 and 18„we we request comments 'addressed in• :particu]ar..to - the following questions: GENERAL RATE STANDARDS What standards should the' Commission employ' •_to review rates in the context of franchise certification or approval (§t 821 and 82? Executive Law)1... ▪ Should this Commi• ssion or Municipal governments, -consider - principles,.of: rate base rate' of return" -analysis : is their review of cable television -fates? - • Should rates be controlled on a "just and reasonable" standard, and how would such astandard be determined? - Should this Commission adopt some form of "index" to determine "in line" .rates or a "range of reasonableness", :and should. such an - ".index"-attemp, to . provide for ,automatic adjustments ,to inflationsxq. factors?; should this Commission employ, tr o ▪ What criteriaeview., the propriety of :rates .• found : to .;bt"out of line" with • others • within the .State? . - In what manner -should -the Commission deterzine "eoeoS ghle rates" under the standard provided for rate.naking Ly - sections 825(5)(d) and (e) of the Executive Law? - 10 - QUESTIONS -0F FAIRNESS AND EQUITY - What criteria' should the Commission employ to determine - whether rates'are eterminewhether-rates'are ;'discrim• inatory or: preferential?" Should the Commission permit or interfere with the marketing of cable televiosion services on a packaged basis or the differentiation of service options in tiers of .rates? - :Should the Commission permit special discount rates to "senior citizens" and in what forms?: . . Should the Commission permit or -.interfere with special rate structures fore "bulk" or "volume". sales or rates to public housing projects or for "commercial" subscribers? - Shpuld the Commission permit or.interfere with multiple stage rate increases or rates contingent upon future events? - Should the Commission permit or interfere with company practices requiring subscriber responsibility for equip- ment loss or damage, and upon what basis? SPECIAL RATES AND CHARGES 1 - Should the Commission " permit or interfere with cherges for non-essential equipment and: services, such as "remote control" devices? - What criteria should apply. to .the review 'of special rates for "underground" service areas or for "seasonal" rates and charges? - What rates and charges,.•if'any,.should:be permitted with- out express .inclusion in the franchise -agreement or pur- suant to the approval of the Commission? - Should the Commission_permit or 'interfere with the :rates or charges imposedfor the sale or rental o:: "converter" devices, or the conditions imposed upon subacribers for the use of such devices, and what standards or lt.tations should apply, to such rates or charges or conditio:mZ 21. We are particularly interested in the comments of governments, as well as the cable television industry and affiliated commercial interests, consumer public interest groups and the public at large. 22. Initial comments should be submitted no later than August 1979, comments in response to the initial comments of cit parties should be submitted no later than August 27, 1979. 23. This Inquiry is conducted pursuant to the authority granted by sections 815 and 816 of the Executive Law. Commissioners Participating: George A. Cincotta, Chairman; Michael H. Prendergast, Vice -Chairman; Jerry A. Danzig, Albert E. Farone, Commissioners. RECEIVES JUN 2 91979 CITY CLERIC'S OFFICE Ithaca, H. Y. t • 1 r OFFICE OF MAYOR CITU' OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 P11\\16 979 6111 ClE1tt S OfftCE tthaea, tt. Y. TEL MEMO TO: Mrs. Ethel Nichols, Chairman of the C & 0 Comm. Mr. Raymond Bordoni, Cable Commission Committee Mr. Joseph Rundle, City Clerk Mr. Martin A. Shapiro, City Attorney 10 11 272-1713 CODE 607 FROM: Mayor Edward J. Conley , DATE: June 4, 1979 SUBJECT: State of New York Commission on Cable Television In the Matter of Cable Television Franchise Provisions Mandating the Certification of Rulemaking to the Commis- sion on Cable Television pursuant to Section 825(5)(e) of the Executive Law.- DN 90111A Attached hereto please find the above entitled matter for your attention. EJC:rb ' ATTACH. - 2 - The modification to section 592-2.3(e) would correct a errorin drafting which occured at the time of the original codifi- cation of these rules. The modification to section 592-2.4(b) could provide an exemp- tion from the general requirement that a public hearing must be held on: the municipal level prior to any certification by the -municipality pursuant ,to section,_825 (5) (e) of .the Executive Law.* The proposed exemption wouldapply.to.those situations in which the certification is mandated by the terms of an existing municipal franchise. ,MA (DATE ;CERTIFICATION OF RATES tiOULD BE- ALLO'JED The'rule changes proposed herein would be consistent with a proposed clarification of.Commission policy which we are also prey: senting, at this time••for public :comment. • In. this regard, --we are proposing to henceforth allow franchising municipalities to nego- tiate franchise contracts with cable television companies which provide for mandated certification of ratemaking functions in future instances -.of. wdispute. - If .both parties :voluntarily agree, and^wthin certain.reasonablelimits`as.explained below,`such franchise contracts 'could provide -that future disputes over rate changes must be sent to this Commission pursuant•.'to Section 825 (5) (e) of_ the Executive :Law. • • • `*Section 825(5)(e) • BACKGROUND; f .-the Executive .Law .provides as follows: 5. .In addition to other powers, the Commission may, after public notice -and opportunity for. hearing', .prescribe rates for cable ;television service whenever: , * * * * .,* (e) Upon request by.a municipality and cable television company that the commission ,prescribe applicable rates, made in such manner as the commission by regulation may prescribe and certifying that they are unable to agree upon rates to include in any franchise or renewal thereof, .in which event the:commission .shall fix rates at a :level comparable to rates currentlybeing fixed in cable television fran- chises for comparable service in comparable service areas; provided that if the municipality and the company thereafter agree upon rates, such agreed rates shall become effective. r ";-; •-• _f21,-, • f •„-,• 'STATE OF NEW YORK "79-19 COMMISSSION ON CABLE TELEVISION .;. :,,r -_!--; r 1..-. ; Lff : -_, ':' .;: :‘ .:,:: .•:' - '..-2 ,:' ' n--.) ),-L o: 1:1,-)1 :-.1-.E.;•_: 1'1- 1. !:-'-ir: 5. 3.11.' -=e-p.,,,-:-,,-,-1- -‘Tri t e -Matter-a •• • ---' -"-r------- --- --r---.. --- ,,,-.1- -- --: .0,-; _ ,.,._ Ill: .. ,-. -, ., , -•-• ..,,:-._. \-_(--.,-„ ---;:: ---.i7,:r.---,..1 f •--.:-,, :-.).. J .1:,c,iiiL'.. fid-..; J . - 'Cable -Television "Ft'an"-dhige 'Piet-Vi-siaifs -`-` --- - = .--- ')DN.'90111A Mandating the Certjflcatjonof Rulemaking ,to A . ), the'-.-Ciiiiiiiits g ion , on'..CabteTTelleifieiiin` ''.ci''''''?":*3 ''..'::',-r-''.-.*.% q 'Y. s :1 rauant... te;':'Se-t-HOii825 (5))ci5Of the 524 -.-: .7 -;: Executive Law. ":-.741.6TiteOFT-PROPOiibcRiTLEMAKING _____AND....ttARIFICATIONOF_COMMISSION POLICY (Adopted: May .16, 1979; Released: May 2.5,..,.1979) • Ci • •`:' • PLEASETAKE NOTICE"; -)Th'4';'?k ri1eiaking is heeby proposed to modify sections 592=2%.:3(e) end-5922'.'4(b)1of'Stiiipart-592-2 nf -- the Riilee:--andrRegulationSafithiS4COMMiiOn, f011OWST' 7;`)7. (e) :proof of iiiibliationleg'ieqUired- sObdiVisions (a) :and-- (c) of settion'5922iA'‘ofi-thiS- Subpart. (b) The public notice shallr'Seti!eddee';-'not than 10 days after the 'date of publication, for an opportunii. for a hearing on tI*7.41§,:ret of the proposed joint appli- cation of the municipality and the cable television company to the commission pursuant to Section 825(5)(e) of the Exec- utive Law; provided, however, that no hearing need, be -held certification andiiapOlication' pursuant to.'‘e-ction 825(5) (e) of the Executive Law' are mandated <by'the terms of an existing franchise. The public notice shallrefer to the statutory authority;-under,,whictithe ti�ri1 is proposed, and ..shall-,:occuratelT,give.,ithe;.time arid place. Ithelaiharin The opportunity for a 'hearing --,shA1L:be ,-had-liefOre-'the joint application of the municipality and cable television company ,submitted .:t-cr, the . commis sion;,! unless n� suh r- ,-j5.1•hearing. is ,required: due . to the -mandatorynature 'Of ' .71:• -41.anguageiin-.1[bratkett ]. 7is -- to be deleted.: and language that--' Is underlined' is • to ;. be added.-- 3: L..: , We wish to make clear that our 'action; here' today does not constitute approval of the so.=called "auto- matic certification" clauses; found :in .'some = franchises. (i.e., ,those clauses ;that :provide that -:the :franchisee may automatically certify to ,uson behalf. of :itself: sand the municipality a request for.rete- determinetion pursuant to Section- 825(5)0) of -„the Executive , Law if the municipality does not act favorably upon rate modification requests.) The. topics of automatic certi- fication -clauses is. among those presently under consi- deration by us and pending resolution._ [citationsomitted] Nevertheless,' the~ rules adopted,. at that:, time (part 592-2); were intended to, be . generally.applicabie,*-and . are,, by -their own terms, inconsistent tit many of the _franchise clauses providing for "automatic” certification ander Section 825(5)(e)"' In particula, section 592-2.2(b) requires all applications to be made by both the franchisee company and the franchising municipality;** section 592-2.3(c) specifies the formn of the municipal'certification that thereexists an inability to agree 'upon rates;***and section . *Section -592-2.1 provides as 'follosas:- - • 592-2.1 Applicability. The commission may consider an application to prescribe rates pursuant to section 825 (5)(e) of the Executive Law if the application complies with .the provisions of this Part. **Section 592-2.2(b) provides as follows: (b) Both the municipality and cable television company must request the commission to prescribe appli- cable rates., ***Section 592-2.3(c) provides, in relevant part, as follows: 592-2.3 Contents of application. The application shall include: - (c) certification that. .the cable television' • company and and municipality are unable to. agree upon fates. an the case of the _municipality, the :certification shall be in the -form of a resolution or other . official action of the uniiilrtpal 3:egi.sl.ati.ve be During the past several years we have taken .note of an,, increasing number of municipal franchises for cable television Aei vice that have included provisions for "automatic" certification of rate disputes to this Commission under section 825(5)(e) of the Executive Law.* Such provisions take a variety of forms. In soMe cases they: provide .only 'that :a ;certification pursuant to section 825(5)(e). ;shall _be ;made by, uthe, franchisee -and - the ' municipality if they are unable`.to agree -upon•- future tate-Modifications. In other :cas°es :they Trovide' thatr `the . ffra ichisee_:company, ,may unilaterally exercise a� Section '825(5)(e).. cer°tifica'tion'`on` behalf' of itself and the <franchising muriicipa =ity:' In -any .event", "the' aiaridated certi- fication ma � : �be' trig gggeire°' y d� byanything' `fram� a mere failure of the municipality- to` -=schedule` a- publihearing. or to"act"upon a request --.for.. iat& modification'within a ' specified periodof'time (sometimes - as, -little as : 10 ° days) - enial r ; y ,=' to�� an +outri`ght: -d�oYf. the:. ,requested ::modification or- even' -'thee' awajd ' of = a -rate' modification in an amount less than requested. Such provisions are often.,joined by clauses .which prohibit"- the franchising_ muni cipality' from' "unreasonably" `denying a- request for='rate ad ustment' c _>, - j _. � . + � (so�aeCime-s� -including a pro- �_, vision -prohibiting the franchisee from 'making` such -request more _ frequently 'than -once a ear = _ - In our consideration ."'of - the 'adoption C of -part 592-2 of our rules :,(DN 90111) - ye.:were concerned. with `the - issues relatin to "automatic":.cer.tification franchise provisions ,-: but- 'we = did not re- solve those issues in any way. In our ORDERS ADOPTING REGULATIONS idDocket Nos. 90058 and 90111,.,(April -11, 197.8) we .stated :the following (at the footnote to rf 3 \ L + - + *See e.g., Cablevision Systems Lon& Island-Corp."-ORDER(S) GRANTING CERTIFICATE(S) OF CONFIRMATION, (DN 10609),.Nev. 26, 1975; (DN106E -Dec. .19,, .1975;-i.(DNs..10657,.'`et al.) ' 77-173,' Sept;- 30-;- 1977; (DN10r 19.7,7;_,.(DN,10735)-78=086,: April 24, 1978; (DN 78-087, April 25, 1978; (DNs 10588 10820)'`78-2 6;:13une 27, 1978; -(DN-'10594)-:=.78-444,-- Dec6, 'i978;"(DN -1084.5)! '79-060;= \Feb-. 23, 1979 :.. (DNs 10693'10743)-75-084i Mar:.':28;' 1979; - Cablevision Systems West- cheater .Corp: ', ORDER -GRANTING :CERTIFICATE 'OF 'CONFIRMATION (DN104r- '•.May 13; =1976;- Saratoga `Cabie. TV=Corp.=,:•mc. 'ORDER 'GRANTING CERTI- FICATE OF CONFIRMATION (DN 10819) 77-163, Sept. 6, 1977; Suffolk Cable Corp., ORDER CONDITIONALLY GRANTING CERTIFICATE OF CONFIR- MATION (DN 10515) 78-020, Feb. 2, 1978; Inter -County Television of Suffolk, Inc., ORDER GRANTING CERTIFICATE OF CONFIRMATION AND APP-!.. ING TRANSFER OF CONTROL (DN 10662) 78-047, March 3, 1978; Cable- vision Systems Suffolk Corp., ORDER APPROVING RENEWALS (DNS-. 30077 and 30084)'78-294, August 8, 1978; and oPher cases no cited. The decision of a municipality to agree to waive its rate- u,nkiiig functions to the , Con^ris`sion. in future . instances of dispute is anal agous` to' th a increasingly popular use of "arbitration" clauses in comivercial'•and labor relations contracts. The courts and legis- latures have generally viewed such provisions;as,constructive and promotional of the public` interest.* It is• not unreasonable to concludes from niany' years of experience with =the •cable television-- service: -that :subscriber'rates'will :need.adjustment more often than the -renewal periods- of 'cabletelevisions franchises (generally - 10' years). Nor is it unreasonable for the contracting parties to franchise agreements to provide,.a. mechanism for the continued stabili- ty of those agreements in__conjuncti-a with the regular adjustment of one aspect of such_ agreements in a non-traumatic,: manner. Weare not opposed^to the -=use of'the 'Commission's statutoryratemaking authority as : a': part of , such :a .mechanjsm..n' ` * - :We, shallyconoiriue''to' carefully_ review"_such "automatic" certi- fica•tion-iprovisions`• in franchises. to ensure "that theirterms are: reasonable,atid consistent with"the public interest. For example. - as we have discussed in the past*i a mandate to certify ratemaking to the Commission should not be triggered _by",a,.municipality's mere failure, to_ -act if the-""tiime'`a11ewaed' for 'such action is unreasonably short (e, g., " l0 "days) - `2At = least 30 days , should be allowed for municipal _ action - (ice . , -at 'least 30 'days for ,public -hearing to ibe scheduled on 'a_rate .modification request,' and ,at least 30 days for municipal action efter:'a public:hearing). Moreover, the franchise should be clear and : explicit'as''to the conditions that will trigger a mandated ;certification. _ „. ..ic 1:., ", . r 1 *See, e.g., Gilbert v. Burnstein, 255 NY 348, 73 ALR 1453; John Wiley & Sons Inc. v. Livingston, 376 U.S. 543; and generally, 5 Am. Jur. 2d Arbitration and Award §:,; 64 ALR 2d 651, §3; 98 ALR 2d 1239; N.Y. Arbitration Act • (1921), now C.P.L.R. Article 75 (7B McKinney 600 1-7700, 1963); Arbitration clauses -valuable methods for resolving business problems_a_risin_gin long-term business arrangements. Symposium, 78 Bus. Law 585 (Jan. 1.973); You don't have to sue to settle disputes, 61 Nations Bus. 66-8 (April 3973). **See, e.g., Cablevision Systems Lon? Island Corporation, ORDER GRANT- ING CERTIFICATE OF CONFIRMATION (Docket No. 10609), lioveat.ber 26, 1975, in which we withheld approval of a requirement for municipa action with 10 days (Town of Glen Cove, Nassau Co.); and Cablevision Systems Westchester Corp,; ORDER GRANTING CERTIFICATE OF CONFIRMATION (Doc.et No. 10580), May 13, 1976, in which we withheld approval of a require- ment for municipal action no later than the next two regularly sche- duled council meetings after any -request ic,r rAte e•] j,,stu,�nt is filed (City of Yonkers, Westchester Co.). - 5 592-2.4(b), quoted above, requires that the municipality conduct, a public hearing -en the issue of certification pursuant to,section 8275,(5,),c.0,-71. that, public notice be g ven-of such a hearing ..;;, , Since -the' adoption `'of °pa`rt 592-2 we have considered :.further;; r the matter .of-_'!•autoraat-ic" certification;:provisions:-and ;we have oh-, served. -their.' increasing .r o clarity, in •recenti ' P P y negotiated • �{ranchise agreements. ;,.We` have`-=noia' •concluded that such provisions are- appro.-. priate: in . some forms " and with' some limi tatiflns . - . r ,_ :+ PROPOSED -t.,._ ,_ _ '..`, -,---',- , ._ . ..,-,-,J-, -.., . _. _ ii _ POLICY 1 -,:- :wehereby:'Propose''to �a `- -- :--•;;.;;.; � . --.., --1': .1 � '� ::._ . :.• -.• -. ccept mandatlrycertificatiron clauses in franchises 'under the �fdll�owing circumstances . ,This, :would man that :sriginal or renewal francb_ises containing such clauses would n*t he rejected upon our review of applications under..sections:821 arid 822 of the. -Executive` law,'' nor would ' f ema ing proceeding invoked'undei so we8refuse,to accept- a rat k - ' clauses-.. ; . _ .,,-..-:,,:,-57--1,,n )(e) nn the.. basis: of such" = Those franchise r ,P - , : ;.._a _._;.. ,C, f. , .:s 0 : ..' -s r.p ovisions which,mandate,,a'certifications=of ratemakingto the ""' • •' .Commfskion_is clearly specified::. circumstances would be :considered _enforceable and acceptable so _:long as they =doc- not provide for completely'unilatera1 effectiveness at 'the sole' discretion of the franchisee conn an and .592-2.-3(c) of -our " +P 3'• Pmrsuant to sections.'5{92-2 i2 (b) rules, we would .continue to 'require; in each' • ,instance of. certification`tinderfsection 825 5.( Law, that the particular certification be made by both hthe'franchise company and the municipality, e awe the municipal certification bein thew form ofnalres to esolutioongorro that official action specific to that particular certifications How -her ever, we would not oppose the practice of municipalities binding themselves in advance to agree to make such certifications, by means of their franchise agreements. 7 We also remind all parties that any certification of rate- making made to the Commission pursuant to section 825(5)(e) of the Executive Law must be unconditional and should be made with the understanding that the Commission will be bound by the "comparability" standard provided by the statute. Therule change proposed for section 592-2.4(b) would facilitate the policy stated above by eliminating the need for a local public hearing in those instances in which the clear language of the exist- ing franchise makes a municipal certification pursuant to section 825(5)(e) of the Executive Law mandatory. No other changes in the existing language of part 592-2 are proposed because it is still anticipated that all such certifications will require some form of official municipal action, even when such action is no longer discretionary. Any disputes over whether the criteria for mandatory certification have been met will have to be settled at the local level, or in the courts, prior to any application to this Commission. The authority for this proposed rulemaking is provided by sec - .tions 815(2)(b), 816 (1) and 825(5)(e) of the Executive Law and sec- tions 595.1(e) and 595.2 of the Rules and Regulations of the Commis- sion (9 NYCRR Subtitle R). Comments on the proposed rulemaking and policy clarification des- cribed above may be submitted no later than June 25, 1979. Reply comments to the original comments of other parties may be submitted no later than July 16, 1979. Commissioners Partici-Dating: George A. Ci_ne.otta , Chairman;; Michael H. Prendergast, Vice-ChaLrman; E. F?-rc:,,; Commissioners. CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MAYOR /, atc,c?„, CITY CLERK'S OFFICL t Ithaca, N. Y. / - 1 ELE;PHONE. 272-1713 CODE 607 MEMO TO: Mr. Raymond Bordoni, City's Cable Commission Mrs. Ethel Nichols, Chairman of the Charter & Ordinance Comm. Mr. Joseph Rundle, City Clerk FROM: Mayor Edward J. Conley e, DATE: May 10, 1979 SUBJECT: Notice of Inquiry - State of New York Commission on Cable Television Rates and Practices of Cable Television Companies Relative to Underground Facilities Attached hereto please find the above entitled matter for your attention. EJC:rb ATTACH. STATE OF NEW YORK 79-113 CAMMISsiON -OWN CABLE TELEVISION - ^ w r� In the Matter of Rates and Practices of . Cable..t Television Companies Relative) to,Underground Facilities V , NOTICE .OF INQUIRY - _. - (Adopted: April -18, 1979; Released: May4 , 1979) s. , DN 90169 PLEASE _TAKE NOTICE that the Commission hereby -commences an inquiry into the rates and,.. practices of -cable television companies relative to the installation of, and provision of service by., : under- ground cable television facilities. The purpose of the inquiry is to compile, data concerning -existing practices and existing and po- tential'problems_which would better enable us to determine the need for rules or_ policy with respect to the issues hereafter discussed and, specifically, the issue .of.higher . monthlyrates:. for subscribers Fervedby underground facilities. - -- - InMay_and June, 19.78, we received a series of applications* for. approval of franchise amendments which included authorization fora monthly service rate applicable to subscribers.- served by underground: facilities approximately seventy per cent -(707),higher than the monthly rate applicable:to subscribersserved: by aerial. ;acilities. The applications were submitted by Schenectady Cablevision, Inc. -- a subsidiary of Athena Communications Corp. --which operates a cable television system serving the City of Schenectady, Village . of Scotia and TownsofRotterdam and Niskayuna. - ** The amendments, -which, authorized.theshigher rate -in underground reas, also provided,for:rate.increasesAn two stages. Pursuant .to each amendment, -rates to be effective immediately upon approval of the amendments were as follows: Aerial ---46.25 per: month; 'Underground - $11.00 per month; (and monthly converter rental in. -all.. -.cases- unchanged' at -.$2.00 per 'month) .' s The amendments also- authorized increases : to -be- effective March 1, 1979 - as- follows : Aerial- $7.00 °per month; Underground $12.00 per -month; '_ (con- '¶erten - unchanged) - 2 The applications marked the first time ever we had been asked to approve different monthly rates for basic service based solely upon a consideration of whether the subscriber was to be served_ by aerial or underground facilities. More recently, we have received applications for certificates of .confirmation* for three franchises all of which centain authorization for rates for under- ground service which are ;fifty percent . "(5070) higher than for aerial service. In acting on the Schenectady Cablevision applications, we disapproved the higher monthly rate for underground service. The . applications of Rensselaer County Cablevision are pending. Prior to the submission of these applications,. our experience with : rate -differentials 'in -monthly rates charged by one company to subscribers within a single municipality was limited primarily to differentials "based "upon density of homes within the franchise area** In 'recent years', a substantial number of franchises granted or amend- ed in the state have distinguished between an'initial:or primary con- struction •area- if` favorable density (and -where ' service is to be .pro- vided.unconditionally)"'and 'other areas`"of less density where the pro- vision c+f service _ is dependent ' upon' s pecif is terms and conditi?ns , i.e..line extension formula. Many of'.these "formulas" provide'fbr a graduated scale of monthly rates .keyed to_the number of subscribers per 'mile .within -the line extension or low density area.*** (The. fewer homes.per mile; the higher the monthly rate.) Inapproving such.formulas, we"have -sanctioned the imposition of higher rates in low density areas as a means to maintain revenue levels comparable to the: :levels 'realized . in the primary 'areas . * The applications were received from Rensselaer'County Cablevision, Inc. --a wholly owned subsidiary of Adams -Russell, Inc. --which -operates an -existing system"serving the City.of Rensselaer and threeneighboringtowns in Rensselaer County.'=_The"new franchises were :awarded;by the_Village and Town=of Kinderhiok and the Town of Chatham in'Columbia County; ** Wehave also seen.differentials.:based" upon 'distinctions between residential and commercial subscribers, private homeowners and . residents of multiple dwelling: -units * (where.;the landlord is billed for all units) and, of course, age i,e., senior -citizen= discounts. *** Most formulas provide for a higher installation charge (capital con- tribution in aid of construction) in low density areas independent of the issue of monthly rates. - 3 - Our experience with undergrOUnd construction as a factor in the cost of cable television service to the subscriber. has tradition- ally been limited—to construction Or.idstallation charges. Indeed, until receipt,oethe-applications„noced above, the issue of underground facilities --has been raised-;--if-at all, in terms of a' -----fiigher-In'stallation charge. In some franchises, the charge is ex- pressed as a fixed dollar amount, and in others, as cost,ofilabor --plus--materials; ------------ In either -case --,-we have approved the higher installation charges in consideration of the,Iligh,errcosts re- quired -to construct underground facilities compared to_aprial fa - It is apparent from the foregoing th:at we have ;determined that subscribers in a low density area may be considered A, separate category subject to both higher installation -charges and higher month- ly rates and that subscribers served by:underground facilities may be considered a s4aatecatakory subject:t&-higher installation charges. We have not, however, ever concluded that the necessity,of.:underground facilities is a factor which,justifies-higher monthly rates and we are unprepared to do so absent the opportunity to review and evaluate data concerning theex.Orience of the industry with -Underground con- struction over the past several years.Since we do not havesufficient data on file, we shall request thOie dkidpanieS which do have under- ground facilities to provide us with information as indicated in the appendix to thisicirdei:_We would also ask -those companies which have recently obtained franchises from, or have commenced operations in, municipalities where underground construction -mill be required, to provide us with estimates of the amount of underground.construction required and the anticipated costs of providing service -by Underground facilities. In addition, and as a general matter,,we;youldrbe interes- ted to learn of any particular problems, other than-costs,sencountered by cable television companies in constructing underground plant. The rates charged for cable television service in the State of New York are, in the first instance, a matter for municipal governments and we should not undertake such an inquiry. as this without also invi- ting interested municipalities to file any relevant' comments. We' would particularly ask municipal governments to share with us their experience concerning:the"extent to whithareas requiring underground utilities.havebeen served by the cable television franchisee,. Comments may be filed on or before julleLana___ Reply comments may be_filed on or before_ ame_15,1929, Commissioners Participating: George A. Cincotta, Chairman; Jerry A. Danzig, Albert E. Farote, Commissioners. Appendix ri Ac ual_Wi es.. -of Plant Sc Construction Costs:. • Date.nf Cost of No. 'of Construction ^Construction per mile* Aerial :. • Underground Buried: - Conduit: "s Rates•'and Installation Fees.- --(charged'to subscribers) } Installation Monthly Rate Aerial: Underground Homes Passed and Subscribers, per mile: 'Aerial " . Homes Underground 4. 'Po le and Duct. Rentals: ' ' Aerial: Underground:. • Cost of Operations** Per Mile Aerial: Underground:. Subscribers Per Subscriber• A11-t-ome vents inv-sstmeat°should be detailed. * Cost of operations -should include all 'elements appearing on AFR-1 - supporting' expense -schedule. Also-linclude .depreciatiot and interest. '�� 2 6. Plant to be constructed under current franchise: Aerial Underground Buried: Conduit: No. of Miles Denisty of homes Date CITY OF 1T1-IACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICE OF MAYOR atE[1\irc_b MAR 5 1979 CITY CLERK'S OFFICE Ithaca, N.Y. 2 r 10 PHONE: 272-1713 CODE 607 MEMO TO: Mrs. Ethel Nichols, Chairman of the Charter and Ordinance Comm. Mr. Raymond Bordoni, Cable Commission Mr. Martin A. Shapiro, City Attorney FROM: Mayor Edward J. Conley DATE: February 27, 1979 SUBJECT: New York State Commission on Cable Television Ceracche Television - amendment to its franchise Docket No. M50778 -K Attached hereto please find a letter received today from the New York State Commission on Cable Television in regard to the above entitled matter for your information. EJC:rb ATTACH. CC: Mr. Joseph Rundle, City Clerk NEW YORK STATE COMMISSION. ON_CABLE TELEVISION TOWER BUILDING. EMPIRE: STATE PLAZA ALBANY, N. Y. 12223 (518) 474-4992 GEORGE A. CINCOTTA - CHAIRMAN Honorable Edward J. Conley Mayor City of Ithaca 108 East Green Street Ithaca, New York 14850 Dear Mr. Conley: JERRY A DANZIG ALBERT E. FARONE VICE-CHAIRMAN COMMISSIONER MICHAEL H. PRENDERGAST ROBERT F. KELLY COMMISSIONER COMMISSIONER THOMAS E. RYAN EXECUTIVE DIRECTOR February 23, 1979 - RECE1V DFE 2 Docket No. M50778—/f In accordance with Part 592-1.2 of our Rules Ceracche Television has notified us that it has applied to the City of Ithaca for an amendment to its franchise. The purpose of this letter is to advise you that our Commission staff is available to you for assistance and consultation prior to your entering into a formal amendment to your franchise with your cable television company. In providing such assistance, the Commission staff will not participate in the decision-making process. Our role is to assist municipal officials in making informed judgments by providing advice and guidance on the adequacy and methods of using the information offered by the franchisee cable company in support of the proposed amendment. Enclosed for your reference are materials pertinent to cable television franchise amendments. If you have any questions, or feel we can be of assistance in any way, please do not hesitate to write or call any of the following staff members: Page 2 Donald P. Buckelew L. D. Dryden Kenneth L. Foster John R. Harder Enclosures: MAPD Brochure Part 529 of Rules Rate Discussion Municipal Assistance and Policy Development Accounting and Financial Analysis Telecommunications Counsel (518) 474-2212- (518) 474-2471 (518) 474-1324 (518) 474-1359 Very truly yours, Th mas E. Ryan Executive Director New York State' COmmission on Cable Television Preparation and Evaluation of Rate Increase Application: A Discu.-sion January 4, 1977 INTRODUCTION While the primary responsibility for the a-imini::tration of rates charged by ,:able television �-:ompanieclearly rests with muni'ipalities, Section 816(3) of Article 28ofthe .xecutive Law requires the New York State Commission on Cable Television to "provi.ie advi-e and technical assistance to municipalitien...in matter, relating to cable television franchises and services." This requirement is pursuant to and in fulfillment of the Legisrature'_.s direct charge to the Commission "to provide consultant services to community organizations and municipalities in franchise negotiations,"* and "to set standards for cable televi:jion systems and franchise practices."* Since municipalities must address rate problems, and since the Commission is specifically named as the source and dispenser of technical assistance, the Commission therefore must often consider controversial problems which arise when cable television operators seek franchise amendments from municipalities for the purpose of increasing rates. The practical problem lies almost wholly in how the application is formulated and how it is viewed by the municipality. In the pages that follow, the methods and problems that arise in the course of rate negotiations are discussed at some length, the paper being offered to municipalities and operators as a guide in pursuing their common although often divergent interests. BACKGROUND The cable television operator requesting municipal approval of higher rates may perceive his problem as earning fewer dollars than in the past, realizing unsatisfactory earnings on his investment, comparing unfavorably with his neighbors, or simply aiming to maximize his profitability. The number of view- points is simply endless, and the viewpoint of the individual operator is undoubtedly an amalgam of various personal objectives and preferences operating in an economy where profitability is the means of continuity. In any event, when he concludes that he * Section 811, Article 28 of the Executive Law. Page 2 wants or needs a rate increase, his presentation will reflect his perceptions of justice, and not necessarily that of the municipal review body nor the subscribers. Quite naturally, municipal officials considering an application for a.rate increase may have motives and priorities diametrically opposed to, tangential or totally unrelated to the operator's motives. Even the municipality's desire toprotect subscribers differs from the operator's precaution against. • overcharging for fear of cancellations. All of this adds up to the observation that there will be times when the municipality will look into the substance of what the operator is saying in justification of the rates he is requesting and challenge the basic objective and position of the operator. When this happens, the operator's presentation should be substan- tial, and the municipality should be capable of conducting the encounter on at least equal ground. NARROWING THE PROBLEM The operator who petitions a municipality for a rate increase on the grounds that cost increases require him to seek higher rates, trusts a relationship that may or may not be demonstrable. In and of itself, the proposition is irrelevant, and will remain so until it is shown that the affected expenses are properly those of the business, represent a significant portion of the total expense of doing business, and affect profitability adversely. In other words, to take on significance, the claim that higher costs result in the need for higher rates must be presented in the broader context of business reporting. More specific observations may be helpful here: 1) the effect on profitability of a commodity price increase may be absolutely zero if one uses a smaller quantity.of the commodity. 2)•Cost increases may be Page 3 irrelevant if revenue keeps pace with costs. 3) Revenue is not only a function of selling price but - also of units sold. 4) Improvements in productivity may well offset cost increases in the same or different elements of expense. As above, the only reliable way to demonstrate the operation of these factors as a cause of business distress is in the context of properly prepared business statements. When the operator bases his request for a rate increase on comparability (generally comparable, services in comparable service areas) the principal problem, if there is one at all, is likely to be that of verification: Comparing services is undoubtedly the easier part of the approach. Number of channels, line extensions, picture quality, program content, hours of operation, complaint response are all ascertain- able and generally quantifiable. However, comparable service areas are not so easily determined. Elements such as urban, suburban, rural, penetration, aerial, underground,. construction cost per mile, are all determinable, but the problem of how to weight the elements in combination can only be solved subjectively in the absence of extensive and detailed studies. This isinno way intended to disparage use of this approach, but only to point out its limiting characteristics. It should be evident by now that the only fully satisfactory means of presenting the need for a rate increase and judging the acceptability of proposed rates is. business analysis and projection as practiced by accountants. Our position in this discussion should be emphasized• the Commission is not advocating that operators invariably submit their rate requests formated as a comprehensive business analysis or the municipalities should apply business analysis techniques to all rate increase requests. We do hold that cost increase demonstrations may be irrelevant, that comparability arguments are useful although subjective, and that business analysis is the only completely satisfactory mode sof prasPutation for an operator and the only reliable method for the municipality to understand and reconcile possibly Page 4 disparate views. What follows is.a discussion of some basic business analysis techniques applied to cable television pricing, and an account of some factors to be considered in the course of that analysis. ELEMENTARY BUSINESS ANALYSIS • A statement of profit and. loss (P&L) juxtaposes revenue and expense to ascertain profit for a period. The usual format is as follows: ". Revenue • Less Expense Equals Gross Profit Less Income Taxes Equals Net Profit It is assumed that all terms of the equation are for the same period of time, that is, that revenue was realized and expenses and taxes incurred during the same period. Recording the same equation for a succession of periods will reveal trends, while recording estimates of future revenues and expenses may enable one to design present actions to change the future. Expanding the terms of the equation is the root of a powerful analytical tool. Each term of the equation must be inclusively and exclusively correct. For example, revenue should exclude income from sources not germane to the business, but should include all revenue that arises from activities properly considered as part of the business. The omission or incorrect inclusion of values in any term of the equation simply destroys the relationship with other terms and renders the equation worthless as a portrayal of business results. For expanding the basic equation presented above, we suggest using The Chart of Accounts included as Section 599.32 of the Commission's Uniform Aei'ounting System (UAS). The level of detail provided therein is generally adequate for analysis of most businesses. Page 5 If greater retail is required, subaccounts may created to expand main accounts. A P&L presentation designed to support the need for a rate increase might very well consist of statements for three or four prior years, the present year (a full year extrapolated from a partial year), a future year :•without the proposed rate increase, and the same future year with the rate increase. We will now discuss a number of factors to be considered in preparation of the presentation by the operator and evaluation by the municipality: 1. Recognition of revenue. The UAS recognizes the following revenue elements as specifically affecting profitability: Installation Income ?Regular Subscriber Charges Per Program or Per Channel Charges Other Subscriber Revenues Advertising Income Other Non Subscriber Revenues Interest and Dividends Generally speaking, all revenue items pertinent or incidental to the business should be included, while unrelated or important isolated items should be excluded. Thus the sale of services to maintain a neighboring system would be included as revenue while the sale of land not needed in the operation would be excluded. Specific questions should be submitted to the Commission for interpretation and ruling. 2. Expenses attributed to the business. Most expenses will be clearly indentifiable as germane to the business although the appropriateness of a particular item or its magnitude may be open to question. Here we have in mind salaries and wage levels and benefit plans of officers and employees, travel and entertainment, vehicle replacement policy and many other discretionary items. The municipality will be on less than firm ground in challenging the operator's business judgement in the absence of objective standards of specific franchise provisions. Page 6 However, shared expenses can usually be verified satisfactorily, as in the case of office space, manager's time and vehicle use shared with.. 3. Depreciaion and Amortization. Since depreciation and amortization are usually relatively large items of expense, the method used to calculate current expense will greatly influence profitability. While straight line methods will evenly spread this cost over the life of the asset, accelerating depreciation and amortization increases costs earlier and decreases costs later in the life of assets. What, then, is fair? If accelerating depreciation is elected for the purpose of stabilizing service rates over the life of the franchise, this would seem to be just and reasonable. If, on the other hand, accelerated depreciation is elected in order to concentrate cost (and diminish apparent profitability), the operator should be prepared to furnish justification. Closely associated with methods of depreciation and amortization is the selection of the useful life of assets. The UAS closely adheres to Internal Revenue Service guidelines. Selection of shorter lives tends to accelerate (but not necessarily concentrate) depreciation; longer lives would have the opposite effect of attenuating depreciation costs. 4. Interest. Charges for interest are usually clearly identifiable when a local operation incurs its own debt. However, when a Multiple System Operator (MSO) incurs debt on behalf of sevnr_al .systems, the amount cf interest and associated debt. attributable to an individual operation may be less easily determined. Yet it must be determined if a meaningful presentation is to be made, and there are several possible approaches. If a specific indebtedness has been incurred by a local operation, even though the operation is owned or controlled by an MSO, use of the known interest figure would present no problem:. A technique which would impc.se locally incurred interest obligations on top of a generalized corporate allocation might also be justified. This brings us to the question of an appropriate basis for generalized allocations. The basis most Page 7 freru?ntly used assumes that the corporate (MSO) debt to equity ratio may be applied uniformly across all corporate holdings. Using this technique, the total of local assets would be reduced by total local current liabilities, the remainder being apportioned between debt and equity in accordance with the corporate ratio. Interest could then be imputed by applying an interest rate based on corporate experience. Enough has been said on the subject of interest to demonstrate clearly that there are numerous ways of approaching the problem. The preferred approach will be fitted to the local circumstances, 5. Corporate Allocations. Here we refer to those expenses incurred by the corporation (MSO) in the conduct of its overall business. Such expenses might be classified as direct and indirect where direct includes costs of payroll processing, billing and collections, advertising and sales promotion and any other costs obviously proportional to the individual affiliates of the MSO. Indirect costs would then include items such as salaries and benefits cf corporate officers, corporate legal and accounting fees, rent, utilities and maintenance of corporate headquarters. Direct expenses should be easily associated with specific features of affiliates: for example, payroll processing costs relate to payroll dollars or number of employees, while billing and collections relate to number of subscribers. Indirect costs are generally allocated on some generalized basis such as the number of subscribers in each affiliated system or the number of miles of plant or dollars of investment. The practice of allocatir;g corporate costsis usually justified by arguing that individual systems benefit from corporate services which would have to be supplied locally if not furnished by the corporate head- quarters, and indeed this position may well constitute the standard against which individual e1 Pments of allocated cost should be tested. Page 8 6.. Taxes. The Commission's Uniform Accounting System recognizes the principal problem concerning taxes when it states, "Income taxes...shall be the actual amount due and payable by the cable television company or the amountallocated to it if its operations are included on a consolidated tax return... "?There a cable television company's operations are included on a consolidated tax return, the liability allocated to it for accounting and reporting purposes to the Wmmission shall be the percentage that its profits bear in relation to total profits." Indeed, for the purpose of securing uniformity, the UAS goes beyond- merely recognizing the problem of statutory vs effective reporting and instructs users to apply the effective or nominal method. In the present context, it is enough that both companies and municipalities should recognize the importance of the method used. The importance of the method employed can be seen in the case of the MSO whose consolidated operating results are more or less profitable than local operating results. For example, if consolidated results are less profitable, applying statutory tax rates locally may result in over- stating local taxes and understating local profits, because the operator's total tax liability may be lower than his apparent local liability. Conversely, if consolidated results are more profitable, using statutory rates locally may understate local taxes and overstate local profitability. In either case,. the validity of a rate justification may be in question. 7. Return on Investment. This extremely complex subject cannot be handled adequately in the present context, and will therefore be accorded only the space needed to illuminate its scope and importance. Investment referrred to in the terms "Return on Investment.' is usually the equity investment in the business, or quite frequently, plant investment. In either case, investment serves as the denominator of a fraction where the numerator is either gross (pre tax) or net (after tax) profit. Return is usually expressed as apercentage (rate), nbtained Page 9 by converting the above fraction. By itself, such a rate has little significance except to the investor who decides whether or not it is satisfactory to him as measured by his standards. But when compared with rates developed in earlier or later periods or in other businesses or with others in the same business, such a rate quickly takes on great sifnificance as a measure of business performance. In selecting the base against which return on investment will be calculated, it is particularly important to know how assets have been valued. There are several commonly used valuation systems. Original cost, acquisition cost, current cost and replacement cost are concepts usually applied to plant assets. When valuation of assets is maximized, equity is also maximized, and this tends to reduce the rate of earnings. An occasion for assigning a higher value than original cost would arise when a system changed hands at a price higher than original cost. When this occurs, assets might be valued at acquisition cost, or at original cost with the difference. between original and acquisition cost booked as goodwill. Knowledge of"the method employed is essential to evaluate a rate base. The complexities involved in analyzing return on investment arise from the need to achieve a particular level of reliability in comparisons. For example, New York State's Public 3eri_ice Commission. sets service rates for all electric utility companies operating in the State which\will yield a return on investment mandated by law. In this situation, it is obvious that the return on investment for each individual company must be identically defined and calculated. In other words, profit must be identically calculated against a base whose components are identical. to achieve this, both base components and profit elements must be defined with great specificity, and this need gives rise to numerous problems which will be dealt with in future expanded discussions. Page 10 In the present context, theuse of return on investment analysis should not be deterred by - knowledge of the complexities. Rather, the user should take care to understand how a given return on investment has been obtained, and this will involve learing what investment is included in I the base and what elements of revenue and expense have been used to calculate profit. How should return on investment information be used once it isdeveloped, understood and accepted as a useful index of business performance? The following list of possible uses is far from complete but will suggestthe wide range of uses for this kind of financial analysis: 1. Comparing present and 2. Comparing present and performance 3. Predicting performance assumptions 4. Comparing performance operators 5. Comparing performance systems 6. Comparing cable television businesses. past performance predicted with different with other of different type with other 8: Cash flow. For a company to enjoy goodfinancial health, it must be able to obtain sufficient cash to meet continuing operating costssuch as payrolls, maintenance, taxes etc., pay interest on borrowed money when due acid repay loans or other financial obligations. A company's ability to do all these things is not easily ascertained by looking at balance sheets and statements of profit and loss, hence the need for a chsh flow statement or a statement of "source and application of funds," to complement and fill out the financial picture. As the title suggests such a statement deals exclusively with cash. A typical format follows: Source: Net Profit after Taxes Depreciation (Eolni.n�ss rc.triniring cash outlay) Borrowings Page 11 Applications: Construction Acquisitions Repay Indebtedness Working Capital Variations in format are appropriate to reflect individual company characteristics. However, the value of cash flow analysis will be readily seen when the statement discloses that the available sources either produce or fail to produce sufficient cash to meet specifically identified needs, or do so byshrinking or expanding working capital. CONCLUSION The present discussion is obviously very rudimentary, but nevertheless touches on most of the major topics which may become issues in rate negotiations. When additional discussion of these and related topics is desired, our Accounting and Financial Analysis Division will be willing to assist operators and municipalities and should be contacted on -(515) 474-2471 or addressed in care of the Commission's Office. STATE OF NEW YORK COMMISSION ON CABLE TELEVISION In the Matter of ) ), Procedures for'the amendment of a Cable Television Franchise ) ) and ) ) Procedures for applying for ) Commission determination of rates ). pursuant to Section 825(5)(e) of ) the Executive Law - ) Docket No. 90058 Docket No. 90111 ORDERS ADOPTING REGULATIONS I. Amendment Procedures. - (Adopted: February 22, 1978; Released: April- 11, 1978 On January 15, 1976, we issued a Notice of Proposed Rule- making in Docket No. 90058 and invited comments on the rules proposed therein. Comments were filed by Rescrt Cable TV, ViaCom Interna- tional, Inc., Office of Cable Television Commission of the City cf Rensselaer and the New York State Cable Television Association. Hating completed our review of the comments filed in response to our proposal, we arenow prepared to adopt the annexed rules con- cerning the amendment cf cable television franchises. At the cut - set, we wish to note that the rules adopted differ, in some respects, from the proposed rules. The central features cf the proposed rules were as follows: (1) A requirement that the party proposing to amend the franchise commence the amendment process by written•notice sent to the other party and to the Commission; (2) The codification of the pre-existing requirement that a franchise be amended only after a public hearing on prior notice setting forth the substance cf the proposed amendment and that approval by the municipality is subject to the further approval of the Commissicn; - - (3) A list of specific information which must be included in each application to the Commission for approval of the amendment; and (4) A new procedure whereby the cable television company, upon compliance with certain specified conditions, is permitted to implement a rate increase approved in a franchise amendment prior to the final approval of the Commission. (The conditions included a requfr ii nt [het the ceimpar$y wait 20 days after the submission of an application tn.us before implementing the rates, that the proceeds of a rate increase prior to final Commission approval be placed in a separate escrow account pending Commission action and that the com- pany serve an additional -notification upon the subscribers concern- ing the need for further-apprcoval by the Commission and the oppor- tunity of the subscriber to file any objections concerning the rate increase with the Commission.) Comments received in responset• our notice pertain mainly to the procedure permitting theinterim-implementation of a rate in- crease. ViaCom International, . Inc.. _filed_ -comments in support of the interim implementation concept but objected to the so-called "quid proo quo requirements as being unnecessarily burdensome. ViaCom ar- gues that the proposed 20 -day waiting.perird would serve no useful purpose since (1) a subscriber has_-the--e+ppertunity to object to the franchising authority prior to municipal approval and may. object to the Commission whether or not a waiting peri•d_is imposed; (2) the filing •f an objection with the Commission during the 20 -day period is not automatically cause for staying the interim implementation of the rate increase;and (3) the amount of the increase must be refunded in any event if the amendment is ultimately di sappyroi,ed by the Commis - cion. ViaCem argues similarly that the escrow fund is a "needless vet burdensome administrative requirement." In this regard, the com- any notes that the amount collected based solely •n the amount of ;he rate increase would generally be limited and could swiftly be re- funded by crediting the subscribers' bill thus obviating the need for separate account. Finally, the company argues that the proposed notification "may give many subscribers the impression that payment as charged is not obligatory until final approval is received thus encouraging nonpayment of the bill until final approval by the Cc+mmission." The New York State Cable Television Association (NYSCTA) al so supports the rules insofar as they allow the implementation of *aces prior to our final approval but contends that certain burden- some requirements will render the utilization of the procedure '_mpractica1 in most cases. First, NYSCTA argues that the escrow requirement would burden cable companies "whose billing procedures are not adapted to segregating out portions of the proceeds" by ;seating an additional unwarranted expense. In addition, NYSCTA argues that in many cases the escrow account will become obsolete before any substantial receipts will be generated from the rate 'ncrease. For example, since the company must wait 20 days to implement a rate increase, i.e., bill at the new rate, and the Commission generally acts upon rate increase applications within days, the rate increase will, in many cases, have received final Commission approval before the due date of the bill. Second RiSCTA challenges the notice requirement for its expense to the cable companies particularly those not equipped for routine billings, and because, "[t]he best forum for public consideration of the rate in- crease is the municipal public hearing," not the Commission. For - 3 these reasons, NYSCTA notes in conclusion that '°[a]n informal survey of the Association's membership has disclosed that the vast majority of respondents would find use of the interim implementation proce- dure wholly impractical if the two conditions are retained." The City of Rensselaer by its.Office.of Cable Television en- dorses the requirements of an escrow account a_nd.-the additional no- tification to subscribers: However, the City Is "not in overall agreement with our •intention to allow an interim implementation of a rate increase" and offers two suggestions concerning the proposed notice to be served on subscribers. First, the City urges that the subscriber be advised of the effective date of the rate increase and second, that the subscriber also be advised of the date on which Commission action is expected. The City makes additional comments on the interim.. implementation procedure but the comments suggest that the significance of the need for local approval of the rate in crease prior to implementation has been underestimated.' In our Notice of Proposed Rulemaking, we acknowledged that the speedier implementation of rate increases may be warranted and toward that end we proposed rules which would permit the interim implementation of rate increases prior to our final approval. How- ever, we also -acknowledged that "Commission orders approving even routine rate increases often clarify ambiguities or assure compliance with conditions." Accordingly, we were not prepared to delete the need for affirmative action by us before the rate increase becomes final. Upon reconsideration of the proposed procedure, and in view of the comments received, we have determined to delete from the final rules any method for implementing rate increases prior to our final approval. While the implementation of rate increases is delayed by the need for our approval in some cases, the actual date upon which a new rate is implemented also depends upon such other factors as the date of municipal approval, the time required to prepare new billings and the convenience.of implementing rates on the first day of a calendar month. No procedure can shorten the delays caused by these factors. We also note that a large number of franchise amendments submitted for our approval encompass' matters in addition to straightforward rat - rate increases. With respect to such amendments, -no procedure should permit one element to become effective prior to all the' elements.' Moreover,. franchise amendments submitted to" us often include municipal approval for a rate increase which is conditioned upon the improvement or modification of services provided by the franchisee. In such cases, the date upon which the conditions are satisfied by the franchisee de- termines the effective date of the .rate increase and an -interim imple- mentation procedure would generally not affect that date. Finally, we note that the additional procedural requirements proposed by us in connection with the interim implementation procedure were strongly criticized in the comments received. Fr.r •f.fi�_s�-e924.,us; then, we have determined to. delete from the- fY:.. 1 rules' any -procedure whereby a franchisee may implement a ;ate-,increase..-ameudnint prior_to our final -approval. As in the :past, we shall continue. to at•temet -to "process applications for approval of - tranchise_amendments, particularly those involving rate increases, in an•expeditious manner -..`.However, in -this regard,.we note that whereas in..th.e -past we--couid .generally dispose of .such applications. in 20 tp 30. days ;- . the time for - disposition is now more likely. to he: - 10-50 days -in. view:of the requi-re6ent that -such applications. be_ - naticed in_the State Bulletin.* In view:rf this,:applicants are encouraged.. to file - with us as: soon after municipal apprt,val as With 'the exception c+f the interim implementation procedure, 00 rules adopted are consistent with the proposed rules. Section 592-1.2 requiresa party seeking an amendment to':afranchise to _ 23tify .the other . party and 'the Commission of the -substance of the :+roposed amendment and Section 592-1.3(a) requires a public hearing prior t,'e actual- amendment. Section 592-1:3(b) requires the notice r r — -1-1 1_ic hearing -to describe the subject of the prnresed Ependment, ai,.d to -indicate the need for Commission approval prior tit she effectiveness of the amendment and the opportunity for interested parties to file comments nr object -ions with the Commission.- The .jotice of hearing required by Section 592-1.3(b) will generally be noticed in. the official newspaper c,f the municipality at least ten Bays in advance of the scheduled hearing as required by applicable statutory provisions. .Section 595-1.4(b) specifies the;information required to be contained in an application to the Commission for ,approval of a franchiseamendment, which includes the complete text the amendment and proof that it was approved by the municipal .-,verning body (592-1.3(b)(3)), proof of publication of the notice the public hearing (592-1.3(b)(4)) and proof that -a copy of the application has been served on the other party ;(Section 592-1,3(b)(6)),. -ith respect to the --application to the Commission, it should be lotted that newspaper notice of the filing of the application with ;:ae Commission is not'required. Finally, Section 592-1.5 reiterates ;he statutoryrequirement that the amendment shall not be effective until approved by the Commission, -which approval shall be the date of the Commission action-,.: unless otherwise provided. Section - 592 -1.5(b) establishes the date uprn which .the franchisee mails to subscribers bills reflecting a_rate change as the date upon which a rate change .shall be deemed to be 'implemented. -- * The State .Bulletin -is. pi-ibllshed bi-weekly on Tuesday. - _5 II.. Joint Application for.Cormmission Determinatirn-of Rates. (Adopted.:: February 22, .1978) • -- On May 6, 1977; we issueda Notice of_ Proposed Rulemaking in. Docket No. 90111 wherein we' proposed" the.adopticrn_of`prccedures_;to_: be followed -by a Cable -Company -and municipatity..when requesting .us_tn., prescribe rates - pursuant`'to`'Section 825(5)(e) of the Executive Law. Comments were filed by the -New York State Cable Television Association, Granville Cablevision, .:Inc.-,. -Smons `Communications of -New York, Inc . , ViaCom International,'Inc:; Brookliaven Cable TV, Inc., Manhattan-- Cable -Television'''Inc. , and^Cablevision- Systems Long Island Corporation. No reply comments were filed: Having completed our review of‘ tie-�comments filed in response to our proposed rulemaking-, we are now prepared _to adopt, the attached rules concerning the procedures to be-followedby a.:cable television company and a municipality when seeking Commission determination of rates pursuant to Section 825(5)(e) of the Executive Law. However, certain matters raised in the comments filed, with us deserve comment._ 1. .Public Notice and 0 II ortunit for a Hearin •. Without exception, all of the co hnerts filed with -us con- -, tained an objection tom' -the secend notice and opportunity for hearing requirement. - The New York State Cable Television Association (the Associa-- tion), which "generally suppnrts the Commission's action looking toward the adoption of formal rules governing Section 825(5)(e) appli- cations", nevertheless opposes the'secend public hearing requirement as it "would be unduly burdeusone,'unnecessary,;and would seriously - impair the legislative purpose in adopting 825(5)(e)."* ViaCom submitted comments declaring that "the effect of this further hearing would only be to delay what, in most cases, is a necessary increase in subscriber rates", while Manhattan Cable urges that a second _ public notice -and opportunity for a hearing at the local level.v'ould; place an additional burden on members of the public "who would be - * The Association, • as well as Sammons Communications, indicated in its- comments that the legislative purpose: in. enacting Section 825(5)(e) was to avoid local disputes over rates. Since Sections .l 822 and 825(1) indicate that the primary responsibility for negotiat- ing rates lies with the municipality and cable company; we note that Section 825(5)(e) is intended as a'mechanism whereby local rate _ disagreements are resolved, not avoided. - - 6" - regt=i_=-d i-,? Eisz t ripate in two public meetings.: Sar ms Cc�unica- tions presented -the argument that the requirement of a second public notice and opportunity for hearing at the local level cannot be sup- perted by. _a, logical interpretation- of the Executive Law? as :"the action in setting -the- rates: wills be taken at_ the State,`evel.-"- And finally; in, connection) with these :ar . uments _ an' additional sect ` - g 9 -the- l�ss�ciatinn sets _- on"te-our =pro iosed- rules.;as. follows. - .. Sec. 592-2.4 (c) Th_eprov'isYenis.-of subsectic+ns a :.a `. (b)_' hereof shall..ne,t `a _ -_ ..the _ _ (...�nd �... :.: Ply- where , municipality::., -has" previously held "a_ public hearing pursuant to _ public notice on the -rates in question consistent with Commission rulesor_ policies governing the grant of franchise amendments. Proof of publica- tion of tte rpublicy notice :for any such hearing . - - shall' be delivered t6 the_ Comfinission with the applicatio n:r - Manhattan Cable -joins the -Association in urging the adoption of this additional section. • We remain unpersuaded by any of the arguments or suggestions outlined -above:- Section 825-(5)-(e) of .the.Executive Law calls for a public notice and opportunity for hearing before the Commission may prescribe_ rates. The primary responsibility for negotiating. rates lies with the. local franchising authority. Should thepartiesto the franchise be unable to agree upon rates, only they. may request the Commission to prescribe rates pursuant to Section 825(5)(e). The Commission may not do so on its Own motion. For these -reasons, the public notice and opportunity for -hearing On the question of request ing'the Commission-te prescribe' rates €or cable television.service is properly had -at :the =lrcal Ievel. ; --However, Sammons suggests, and in this suggestion is -joined by Granville,= that a separate . ublic notice -and opportunity -fcr• hear - in aon�d�riot b�e--iiecessar . P g y if -the initial.public notice of the tom= pany°s -rate"-amendment request (as required by Section 592-1.3 of our Rules) included notice of the alternative possibility of requesting the Commission to prescribe xatea ekii uld the parties be unable to. agree to rates to be charged._,We have determined that publication in the"alternative, such=as here � _ ....suggested , : wou7.d be an administratively easier press for the `applicants; yet would also satisfy the- ele- ments of due'-process.clearly required by the statute. We are, there- fore; adding`SectiQn 592-2.4(c), to cur Rules, which provides that Sections- 592-2.4 (a) and , (b)-; which require a separate notice and op- portunity fox hearing on'the question of requesting the Commission to prescribe rates pursuant to Section 825 5(e),'shall not apply when _ 7 _ the initial public notice of the rate amendment application is pub- lished in the alternative, i.e., when it notices -the fact that if the parties are unable to agree_upon rates they may discuss the - passibility,of requesting the Commission toprescribe rates Vusvant to Section 825(5)(e). 2. Publication in the State Bulletin. The Association. and Manhattan Cable suggest that notice of an application to us pursuant to Section 825(5)(e) not be published in -the -State Bulletin, contending that Commission action pursuant to- that othat section of the Executive Law is not a rule making as defined by Section 102(2)(a)(ii) of,the State Administrative Procedure Act {SAPA). We feel that SAPA speaks for itself on'that issue. Section 102 Definitions. . .2(a) "Rule" means. .(ii) the amendment, suspension, repeal, approval or prescription for the future of rates. . .or practices bearing on any of the foregoing whether of general cr particular applicability. And were the language quoted immediately above not reason enough te publish notice of a Section 825(5)(e) application in the State Bulle- tin, we ask the Association and cable companies te consider this. Publication of notice in the State Bulletin is for the protection and benefit of beth the municipality and the cable company. Were notice not published in the State Bulletin and were the Commission's action in prescribing rates then overturned for want of full procedural due process compliance, any increase in rates prescribed by us pursuant to Section 825(5)(e) would.of course have to be refunded tfi sub- scribers, and the previous rate structure would be reinstituted. 3. Joint Application Requirement. .; Sermons- Connunications-urges the Commission to reconsider that section -of our proposed rules oiaich requires the company and mu- nicipality to submit a joint application. Sammons clat s that a single, joint application would be. "administratively difficult." We agree. This Commission never has, nor does it now intend, to require that an application pursuant- to S 825(5) (e) be one single application signed b;. 8 both applicants. The language of our proposed rules was an attempt to indicate that both the municipality and cable company must un- equivocally request us to prescribe rates before the provisions of L. 825(5)(e) of the Executive Law are invoked.. We regret the confusion that was caused; by our choice of language'.- We have amended the language of..Section592-2.2(b) of our rules in an effort -to clarify` our mea iing . In connection with the joint application issue, Cablevision Systems Long Island Corporation (CSLIC) asked the Commission to inter- pret Section 825(5)(e) of the Executive Law to allow applications to the Commission by either the municipality or the cable company. Section 825(5)(e) oftheExecutive Law states that we may prescribe .rates only. ."upon• request. by a municipality and cable -television• - -- - company" .(emphasis supplied)._ We are unpersuaded that the language is capable of the interpretation CSLIC promotes'. We therefore adhere to our position that both parties must request Commission determination of rates pursuant to Section 825(5)(e). 4. Form of Municipal Action Section 825(5)(e) provides that the municipality and cable television company requesting Commission determination of rates pursuant to that section must certify that they are unable to agree upon rates. The Association objects to that Section of our proposed rules, which deals with the required form and contents of the Section 825(5)(e) application, on the grounds that it puts undue restraints on the discretion of municipal governments. The Associa- tion urges that proposed Section 592-2.3(c) which reads, in part: In the case of the municipality, the certification shall be in the form of a resolution or other official action of the municipal legislative body . . ., to be changed to: • In the case of the municipality, the l` certification -shall be in a form duly authorized by the municipality. We are unpersuaded that our language interferes with the discretion of municipal governments, or that the language 'proposed by the Association is less restrictive. Ifle therefore adopt Section 592-2.3(c) as proposed.* The statutory authority for the rules we are -adopting today is contained in Sections 815(2)(a), 816 (1) and 816(5)(0 -of Article 28 of the Executive Law. • THE COMMISSION ORDERS: The Commission's regulations are hereby amandP4 by eddilg thereto a new Part, to be Pert 592, Subparts 5921 bnd to be - read as set forth in the Addendum to this Order. Commissioners participating: Robert F. Kelly, Chairman; Jerry A. Danzig, Vice -Chairman; Albert E. Farone, Michael H. Prendergast, Commissioners. Abstaining - Malcolm Fein. * We wish to make clear that our action here today does not consti- tute approval of the so-ra1.1ed "automatic certification!' clauses, found in some franchises. (i.e.., those clauses that provide that the ..franchisee may automatically certify to us on behalf of -itself and the municipality a request for rate determination pursuant to Section 825(5)(e) of the Executive Law if the municipality does not act favorably upon rate modification requests.) The topic of automatic certification clauses is among those presently under con- sideration by us and pending resolution See also Cablevision Systems Long Island Corp., ORDER- GPANTIUG CERTIEIr.:tE OF CONFlicAu`Z-1 Adopted: December 20, 1977; Released: December 22, 1977; Docket No, 10728; and Suffolk Cable Corporation, ORDER CONDITIONALLY GRANTING CERTIFICATE OF CONFIRMATION, Adopted: January 25, 1978; Released: February 2, 1978; Docket No. 10515. Part 592 Amendment Procedures Subpart 592-1 Amendments Section 592-1,1 licabili E: The rules contained in this Part apply to all amendments of cable television franchises; pro- vided, however, that any amendment that would have the effect of extending the- _duration of a franchise shall be deemed a renewal and shall be subiectto the provisions of Part 591 of this Subtitle. Section 592. -1.2 -Commencement of amendment process: Any cable television company or municipality proposing to amend a cable tele- vision franchise shall commence the formal amendment process by written notice sent to the other partyand to the commission. The notice shall contain the text or set forth the substance of the pro- posed amendment, Section 592-1.3 Public hearing requirement: (a) No cable television franchise may be amended except after a public hearing preceded by reasonable notice. This provision shall not be deemed to require an additional hearing in those cases in which a hearing is otherwise required by applicable provisions of law. (b) In addition to satisfying other applicable requirements, the notice of public hearing shall indicate the subject of the pro- posed amendment. The notice shall also state that the amendment, if approved by the municipality, may not take effect without the prior approval of the comaission and that interested parties may file comments or objections with the commission. Section 592-1.4 Commission approval required: (a) No amendment to any cable television franchise shall be effective without the prior approval of the commission in accordance with the provisions of Section 592-1.5 of this Part. (b) An_application for approval of a franchise amendment shall comply with the requirements of Part 590 of this Subtitle and shall set forth or include at least the following (1) the name, mailing address and telephone number of the cable television company; (2) the name, mailing address and telephone !number of the municipality approving the amendment and the date municipal action was taken; (3) . the complete text -of the,att and proof that the am✓tt was approved by the municipality; (4) proof of publication of the notice to public ' hearing on the amendment; (5) a description of the rate changes, if any, effected by the. amendment; (6) in the case of an application filed by a cable television cornpan , proof that a copy of the application as been served on the municipality; in the case of an application filed bye municipality, proof that a copy of the application has been served on .the cable television company. Section 592-1.5 Fffecgive• date of ameTiment: (a) No amendment shall be . effective, .. anu no change effected by any amendment may be implemented, until the commission shall have adopted an order approving such amendment. Unless the order shall otherwise provide, the effective date of the amendment shall be the date of commission action. (b) For purposes of this Section, the mailing to subscribers of bills reflecting a rate change shall be deemed the implementation of such rate change. Subpart 592-2 Applications Pursuant to Section 825(5)(e) Section 592-2.1 Applicabilitx an application to prescribe rates the application complies with the The commi ssion -may -consider pursuant to Section 825(5)(e) if provisions of this'Part. Section 592-2.2 Form of 2pplication: (a) Any made pursuant to this Part shall be in writing. -0) Both the municipality and cable television request the commission to prescribe applicable rate application company must s. Section 592-2.3 Contents of application: The application include: shall (a) the name and address of the cable television company; (b) the name of the municipality and the chief executive officer thereof; ' (c) certification that the cable television company and munici- pality are unable to agree upon rates. In the case of the munici- pality, the certification shall be in the form of a resolution or other official action of the municipal legislative body. In the case of the cable television company, the person=certifying shall be the applicant, if the applicant is an individual; one of the partners if the applicant is a partnership an officer if the applicant is a corporation; or a member who is an officer if the applicant is an unincorporated association; (d) a list• -of all classes of service for which rates cannot be agreed upon, including, if applicable, existing rates for such class- es of service; and (e) proof of publication as required by Section 592-2.4.(a) and (b), or Section 592-2.4(c) hereof. Section 592-2.4 Public Notice and Opportunity for a Hearing.: (a) Before rgking application to the commission pursuant to Section 825(5)(e), the municipality or the cable television ccmpany shall cause to be published in a local newspaper of general circulation public notice that the municipality and cable television company cannot agree upon the rates to be included in the franohise or renewal thereof, and that they are proposing to make a joint -appli- cation to the New York State Commission on Cable Television to prescribe rates pursuant to Section 825(5)(e) of the Executive Law of New York State. Proof of such publication shall be delivered to the Commission with the application. (b) The public notice shall set a date not less than ten days after the date of publication, for an opportunity for a hearing on the subject of the proposed joint application of the municipality and the cable television company to the commission pursuant to Section 825(5)(e) of the Executive Law. The public notice shall refer to the statutory authority under which the action is proposed, and shall accurately give the time and place of the hearings The opportunity for a hearing shall be had before the joint application of the municipality and cable television company is submitted to the commission. (c) The provisions of subsections (a) and (b) hereof shall not apply when there is included in the initial local public notice of a rate amendment application, notice that if the parties are un- able to agree upon a rate or rates to be charged, they may agree to apply to the New York State Commission on Cable Television to pre- scribe rates pursuant to Section 825(5)(e) of the Executive Law. The public notice shall refer to the statutory authority under which the application would be made. Proof of such publication shall he delivered to the commission with the application. Cable Television can enhance the reception of local television signals, .' carry' broadcast signals from distant cities, offer movies and sports events at special rates, provide alert systems, supply a channel for news and weather, and 'deliver two-way communications services.. Cable TV also ,can' provide the opportunity•for a;channel or '.channels to be 'designated` for'.•com- -;munity use. Mumcipalities use cable channels' to 'provide .lives. coverage of municipal and school board meetings, discussions of local issues, 'presenta-, ;tions by school music :,groups, "school'. sports,descriptions,of available social services, introductions' to'community ' organizations, features, on local artists, .educational .'courses, ' childrenspro 7. gramming '.and ;more.: Through;'fran- chise agreements and cooperative,• arrangements with municipal govern-:; ments, libraries,' schoolsand non- profit 'access onprofit'access centers communities - have '•obtained :'the facilities,'.`equip- ment and training' they :need to; successfully make the:step.:.from TV.' viewers to TV producers:.'' -; NYS COMMISSION ON CABLE TELEVISION . The State Commission on' Cable' :,Television was established by the Legislature in 1972 to help promote.,; the orderly development of cable; communications within the.State.' .Today nearly three million New, Yorkers in some 630 communities are served by cable. Cable TV systems may operate in New' . York State only after being granted a' franchise by the local municipality: The franchise then must be certified ," by the State Commission on Cable Television. Procedures for granting, these franchises and the minimum franchise provisions' are specified in • rules promulgated by the Commission.' MD TO 141UNICIPALITIES In 1972, the Legislature decided that ;`cable television franchising at the local' level would be'most responsive to the cable needs and desires of . the local •' citizenry. However, because franchi sing a cable television system is'usually:. a new and complex experience 'the .' . Legislature felt that municipalities ' needed some 'technical assistance and procedural guidance,,The Commission on Cable Television, under the require- .ments of its' Statute, provides such assistance to municipalities. .The Commission 'maintains a Division • .of. Nfunicipal, hissistance, which works • closely with 'the :.Legal, Financial and ',Technical Divisions- to provide. con- ,sultative services':'to,'municipalities. Commission staff;members can answer specific',questions'about 'State''and Federal Cable Television regulatory • procedures,: and ways in' which' a com- munity might :use.its"cable system for • educational, public'safety, and munici- pal purpos'es', Staff 'members visit communities,•around the. State to present, talks':or,;workshops, to work with' municipal` boards and advisory committees:'on"drafting required reports or Treviewing,applicationsfor franchise' renewals''or rate increases, and to', monitor the technical perfor- mance of cable' systems. The Com- mission's' Complaints Investigator assists,_ sub'scrib'ers in resolving `'service and''billing problems. Municipalities are encouraged to take • advantage of information, guidance and r , assistance provided by the Commission in such areas of community responsibility as: FRANCHISING — assessing community needs` — soliciting proposals — preparing franchise agreements'• RATES — evaluating financial information and rate increase requests LINE EXTENSION — solving problems leading to the extension of service to sparsely populated areas ON-GOING FRANCHISE s_ ADMINISTRATION — monitoring compliance with franchise terms, franchise amendments and renewals LOCAL PROGRAMMING — providing channels, equipment and personnel for educational, governmental,' and community programming 1DU " ,UCAT ONS *Weekly Bulletin *New York Stae Commission on Cable Television Rules *Cable Television Franchising Workbook January, 1978 (250pp) *Technical Requirements for Cable TV Systems June, 1978 (22pp) *Handbook for Operators of Cable Television Systems May 1977 (67pp) *Preparation and Evaluation of Rate Increase Applications — A Discussion .January, 1977 (12pp) *Information Bulletin August, 1976 (7pp) *Line Extension Guidelines May 1977 (5pp) - Local Programming Packet April 1, 1978 (90pp) Cable Television Rates in New York Issued quarterly (120pp) • Financial Profile Issued Annually (17pp) .Uniform Accounting System November, 1974 (71pp) e Assiista C3 Publications are available upon request from The New York State Commission on Cable Television Empire State Plaza Albany, NY 12223 (518-474-4992) TECHNICAL PERFORMANCE • — technical planning to assure, signal quality and system flexibility ' *Publications marked with asterick are available at no cost. THE NEW .YORK STATE • COMMISSION ON , CABLE TELEVISION TOWER BUILDING • EMPIRE STATE. PLAZA ALBANY, NEW YORK • (518) 474-4992 MARS 1979 - CITY CLERK'S OFFICE Ithaca, R. Y. TELEVISION CABLE FRANCHISE AGREEMENT made this 20th day of April, 1966, 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 snd by virtue of the laws of the State of New York, having its principal place of business at 518 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 518 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 - .lmits of the. City of Ithaca, as it now is, and as it hereafter may be constituted by revision, modification, or additien, 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. 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 and 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,. -2 - or operated by the New York Telephone Company or New York State Electric & Gas Corporation within the City of Ithaca, upon the condition that it shall firs t obtain the written permission of the New York Telephone Company or New York State Electric & 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 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. 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 procedure within the spirit of this franchise and appropriate to the service within the geographical limits of this franchise. 6. Grantee, upon the 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 -3 - 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 under- taking 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 better- ments 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 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 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, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- (1) Residential or Commercial establishments: Maximum Charges: First installation charge - $50.00. Each additional installation - $25.00. Rental charge for first installation - $3.50 per month until grantee shall provide 12 channel service including AP news channel; educational TV channel WCYN Syracuse; time, temperature and music channel; and three microwave independent channels, at which time, said rental charge shall be increased to $4.00 per month. In no event shall any subscriber be required to pay said increased rental until such time as the above described services are made available to him. Additional rental charge for each extra set at 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 - $4.00. (3) Multiple dwellings: Installation purchased by landlord: Maximum charges: First installation - $50.00. This installation shall be transferable. Each additional installation - $25.00.. Additional installations shall not be transferable to a different address or apartment, but can be sold with the property. Rental charge for first installation - $3.50 per month until Srantee shall provide 12 channel service including AP news channel; educational TV channel WCYN Syracuse; time, tem perature and music channel; and three microwave independent channels, at which time, said rental charge shall ye increased to $4.00 per month. In no event shall any subscriber be required to pay said increased rental until such time as the above described services are made available to him. Subdivision (2) applies for suspended service. (4) 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 Wiil:able at the time. -5- (5) 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. (6) 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. (7) 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 $4.00 is made for reconnection after past -due account is paid. (8) Installations 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. (9) Any increase of the maximum charges must first be approved by the Common Council. Such approval shall not be unreasonably withheld. (10) 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. 13. In all street installations,the cables or wires erected shall, in all respects,. comply with the previsions of all existing Codes pertaining to the extension of wires across streets, and all -6 - applicable provisions of the Electrical Code of the City of Ithaca. Co -axial cable shall be used to carry the television signal through- out 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 mariner 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 25 years from the effective date hereof. 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 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 one per centum (1%) of its gross income from its cable service operations within the City. 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. 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. This franchise shall take effect May 1, 1966. 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 C ORPORATION 4 '4 4 BY: Anthony Ceracche STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this • day of 'May , 1966, before me, the subscriber , personally appeared HUNNA JOHNS, 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, aad 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 , 1966, 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. CITY OF ITHACA 1 D8 EAST GREEN STREET ITHACA, NEW YORK 14850 OFFICEOF MAYOR MEMO TO: Mr. Joseph Rundle, City Clerk FROM: Mayor Edward J. Conley DATE: January 30, 1978 3 RE� E0 r JM' 3® 197+8 City Min '1110 r_ - ITHACA, 4. Y. �e\ SUBJECT: T.V. Cable - American Television and Communications Corporation Application to New York State Commission on Cable Television for Renewal of Certificate of Confirmation LEPHONE: 272-1713 CODE 607 Attached hereto please find a copy of the above entitled application which has been submitted to the New York State Commission on Cable Television on behalf of the American Television and Communications Corporation for renewal of its Certificate of Confirmation to provide cable television services to the City of Ithaca. This application should be maintained in your office for public inspection. EJC:rb ATTACH. CC: Martin A. Shapiro, City Attorney Mrs. Ethel Nichols, Chairman of C & 0 Mr. Raymond Bordoni, Cable Commission LEWIS A.ARONOWITZ STANTON ABLETT GEORGE MYERS JOHN E.BRANDOW RALPH G. MANCINI HOWARD W. ROTH CORNELIUS D. MURRAY DANIEL M. SLEASMAN MAX GORDON NEIL H. RIVCHIN PETER L. DANZIGER FRED B. WANDER STEPHEN R. COFFEY Hon. Edward J. Conley Ithaca City Hall Ithaca NY 14850 O'CONNELL AND ARONOWITZ, P.C. ATTORNEYS AND COUNSELLORS AT LAW /00ZZ ',,e.ee0 a ,AL, W, 12.203 AREA CODE 518 462-5601 434-1251 January 24, 1978 EDWARD J. O'CONNELL 1925-1939 LEON ARONOWITZ 1941-1969 SAMUEL E. ARONOWITZ 1925-1973 MEYER A.JENEROFF OF COUNSEL RECEIVED AN 3 0 In Re: American Television and Communications Corporation: Application to New York State Commission on Cable Television for Renewal of Certificate of Confirmation Dear Mayor Conley: Enclosed please find a copy of the application which we have submitted to the New York State Commission on Cable Television on behalf of American Television and Communications Corporation for renewal of its Certificate of Confirmation to provide cable television service to the City of Ithaca, New York. This application should be maintained in the office your municipal clerk for public inspection. Very truly yours, O'CONNELL AND ARONO : •TZ. P.C. By: NHR:njb Enclosure CERTIFIED MAIL -RETURN RECEIPT REQUESTED '?•( Neil H. Rivchin CITY OF ITHACA TOMPKINS COUNTY New York State Commission on Cable Television Tower Building, Empire.State Plaza Albany, New York 12210 • APPLICATION FOR RENEWAL OF FRANCHISE OR CERTIFICATE OF -CONFIRMATION 1.- The: exact legal name of applicant is:. American- Television and Communications -Corporation [R-2] Applica4t`does 'business under the following trade name or names:--;-Ceracche Televisions a Dibision.of American- Television. and Communications. Corporation -- - _' f' = ' 'J j l_ "wij Y'.i a:�'i _as -� •:Z,� __. .��trti ---"-. .?.:_ Ci=1 3.'i`=Applicant`s ma lin g -=address uis: 519 West' State Street Ithaca, New . York _ 14850 4. Applicant's telephone number(s) is (are) :. (607) 272-3456 _ 5.----(a)' This application is for a renewal of operating .rights in the (city, XKmmxnifix IXX4X of . .Ithaca - [circle one] (b). Applicant°serves thefollowing:additonal municipalities" from the same headend or from a different •headend but in the same or an adjacent county: ..• See Exhibit 1 6. -The number of subscribers in .each of the municipalities noted above is: as of 11/29/77 . Primaryresidential connections: 6373 . Secondary residential connections: unknown - Residential paycable subscriptions :'p - - 538 ' Commercial connections: unknown Other: . -We 'are' presently conducting a system audit to determine -this item, which neither the Ceracche billing system -nor computer. separately - 7. The following signals are regularly carried by p_ the a plicant' s state° cable system (wheresignalsare received other than by direct off -air pickup, please so indicate) ;See Exhibit •2 8. Applicant does lxx does not provide channel capacity and/or production facilities for local origination. If answer is affirmative, specify below the number of hours of locallyoriginatedprogramming carried by the system during the past twelve months and briefly describe the nature of the programming : 1 hour weekly - various public access - :..:.... __ _._ 4 hours weekly --Ithaca College- news, current events, local sports, area highlights.;.. electi'orz :'co'vera : • . .:... _ 1 hour weekly - Tompkins County,_Library, area information, community: bulletin board 9. The current monthly rates for service in the municipality specified in -Question • 5 (a) .are ; - Primary connections: $5.50-:x month/12: channel;`- $7.50 a month/24 Secondary connections: '$1:00 -a-=month•-= - channe] - Pay-cable subscriptions X6...00 a: month + $-2..00 mo.,. converter;=chargE • Commercial connections same . as - residential-: Pay $1.-0s0 a. month Other: Various -btilk billed 'commercial accounts ,• 10 . How many miles: of new; cable'. television _plant were: placed :in • :c:., -:operation by applicant during the 'past ' twelve months in:,. ; the municipality specified. in. -Question- 5 (a) ? r none In the municipalities specified in Question 5(b)? none _ 11. State and :describe below any . significant- achievements and/or _improvements that took place with respect to system operation during the past twelve months: Amplifier upgrade to 24 channel push-pull; power supply change from 30 to 60 volts; wiring of County Library for origir1ation,..:: - - _ • 12. Indicate whether applicant has previously_ filed with -the State Commission on Cable _Television its::' =._ _ (a) Current Statement .of Assessment-pursuant.to Section 8.17 of the Executive Law? Yes! (.No (b) Current Annual Financial Report? Yes.( No .l xx( If answer to any of above is negative, explain: Purchase of Ceracche Television Corporation -by American._ Television and Communication's Corporation on October a2, 1977 - : - 13. Has any event or change occurred 'during.the past twelve:: - months which has had,. or could have,..•a. significant -impact upon applicant's ability _to, provide cable television_ -service? If so, describe below: TION = . "AMERICAN TE EVION COMMpNICATIONS • .•.•. Signature J••seph J. Collins, • Vice -President Please attach a copy of applicant'.s current annual performance test. ._ results • pursuant to Section 596.5 of. the .Commission Rules.• 7.r= EXHIBIT 1 CERRACHE TELEVISION DIVISION OF AMERICAN TELEVISION . AND COMMUNICATIONS CORPORATION • MUNICIPALITIES SERVED BY ITHACA HEAD END City of Ithaca Town .of Ithaca Town of Lansing Village of Lansing Village of -Cayuga Heights • Town of Newfield ,Town of Ulysses Town of Danby Village of Trumansburg Town of Caroline Town of Dryden Village of Groton Town of Groton MUNICIPALITIES SERVED BY THE CANDOR HEAD END Town of Candor Village of Candor MUNICIPALITIES, SERVED BY. THE NEWARK VALLEY BEAD END • Town of Newark Valley Village of Newark Valley EXHIBIT 2 CERACCHE TELEVISION DIVISION'OF AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION SIGNAL CARRIAGE, ITHACA HEAD END . Cable Channel.• 2 4 6 7 8 9 10 • 11 12 13 • 12 Channel System • WNYS --.. 9 SYR • - .. WSYR •••• 3 SYR '. .,..21q1 -'3g. ''.1.:•111:1-::.-•.;4-.;•:::_-'.-::--:...-S'::'.:,-- -....: WCNY • -. 24 SYR -'...;. .:: EDUC.:;:.:,.',.--:..,..- ...' WTVH -- •• ._ 5 SYR '.•-:,;- •• WENY ••• .-36 ELM ' •:..-•-• . - .. .,. CBS. -..1,..,...'?.:..,.._-..--- -•': ABC . '--:•:!::.:;:•••.: ..*.. -:. WNEW. .- 5 NYC ::,.: . .-'.. .-......INDEP*.:,. .....-'..'..,. WSKG _ ' 46 BING '. • -:: .. .. .. EDUC. -'-'• _.. -..-• WOR 9 NYC .:.:-;• WICZ 40 BING , . . ' - ' - , ..,..,.. :1...• NBC ..,..,...; WPIX .... 11 NYC - . . - INDEP* WBNG 12 BING . 1 ' ' : ' -:CBS : :... .',•, ACCESS - WEATHER -. . MESSAGES.. , --• 24 Channel System 14/A HOME BOX OFFICE •,• * 15/B WBJA 34 BING •• ABC 16/C WROC 8 ROCH - NBC. 17/D WHEC . 10 ROCH CBS 18/E •WOKR • 13 ROCH ABC 19/F . WXXI 21 ROCH - - EDUC 20/G WNEP 16 SCRAN - - ABC . . 21/H WDAU 22 SCRAN - - ' CBS 22/1 WVIA 44 SCRAN - .• _ . EDUC 23/J 24 HOUR NEWS - 24/K 24 HOUR FINANCIAL/SPORTS • Indicates microwave reception at Head End . . ** Village of Groton receives all channels except WOR 9 Attachment No. 1 TELEVISION CABLE FRANCHISE AGREEMENT made this 20th day of April, 1966, 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 Rnd by virtue of the laws of the State of New York, having its principal place of business at 518 West State Street, Ithaca, New York, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the paries agree as follows: 1. Ceracche Television Corporation, of 518 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. 2. Grantee shall have the right, further, to erect, placa, 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 he 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 and places. 3. Grantee shall have the right and permiss:.on 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 & Gas Corporation within the City of Ithaca, upon the :condition that it shall firs t obtain the written permission of the New York Telephone Company or New York State Electric & 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 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. 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 procedure within the spirit of this franchise and appropriate to the service within the geographical limits of this franchise. 6. Grantee, upon the 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 writ:.ng. 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-Dartment 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 d:.stribution lines, to conform to the change -3, - 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 under- taking under the authority of this franchise. 10. During the term of this franchise, Grantee shall furnish to all parsons 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 better- ments 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 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 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, subject only to the payment of regular installation fee ar.d monthly charges which are hereby established as follows: -4- (1), Residential or Commercial establishments: IV:aximum Charges: First installation charge - $50.00. Each additional installation - $25.00. Rental charge for first installation - $3.50 per month -until grantee shall provide 12 channel service including AP news channel; educational TV channel WCYN Syracuse; time, temperature and music channel; and three microwave independent channels, at which time, said rental charge shall be increased to $4.00 per month. In no event shall any subscriber be required to pay said increased rental until -such time as the above described services are made available to him. 'Additional rental charge for each extra set at 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 -.'$4.00. (3) Multiple dwellings: Installation purchased by landlord: Maximum charges: First installation - $50.00. This installation shall be transferable. Each additional installation - $25.00. Additional installations shall not be transferable to a different address or apartment, but can be sold with the property.. Rental charge for first installation - $3.50 per month until -grantee shall provide 12 channel service including AP news channel; educational TV channel WCYN Syracuse; time,. tern perature and music channel; and three microwave independent channels, at which time, said rental charge shall be increased•to $4.00 per month. In no event shall any subscriber he required to pay said increased rental until such time as the above described services are made available to him. Subdivision (2) applies for suspended service. (4) 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, w;iere the service. 1s a�ia1Zable at the time. (5). Changing locationof 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. (6) 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 fora $10.00 charge. (7) Cable service may be disconnected when rental orinstallation 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. (8) Installations 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. (9) Any increase of the maximum charges must first be approved by the Common Council. Such approval shall not be unreasonably withheld. (10) AH 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 wire;;, or cables, in accordance with the terms of this franchise, written Dermission for removing said trees, or any part thereof, must be obtained from the. Department of Public Works, for trees on City proper:y, and from the owners of private property: 13. In all street installations, the cables or wires erected shall, in all respects, comply with the previsions of all existing Codes pertaining to the extension of wires across streets, and all -0 - applicable provisions of the Electrical Code of the City of Ithaca. Co -axial cable shall be used to .carry the television signal through- out 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 25 years from the effective date hereof. 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 clays 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 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 one per centum (1%) of its gross income from its cable service opErations within the City. 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 orliens 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. -7- 18. Any continuous and willful violation of any section or provision of this franchise shall �,e 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 franchiseagreernent 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. Tnis franchise shall take effect May 1, 1966. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year first above written. CITY OF ITHACA • BY: A/ a� . k Mayor CERACCHE TELEVISION C ORPORATION V '4 41 BY: b. � ' Anthony Ceracche -5- December 1, 1976 City Atty. Shapiro said that granting of the additional rate increase had been conditional upon Cerrache Television furnishing sufficient proof to the Common Council in August 1975 that such rate was, in fact, reasonable. Cerrache Television Company lawyers from Washington came back with an amended franchise which did not pertain to the rate only. He said the rate increase was granted temporarily, without Council determining it was reasonable, and was granted on .Cerrache's.agreement to add channels up to 22.. Atty. Wiggins answered that the books were audited by the Cable Commis- sionand that the increasewas determined fair and reasonable. After further discussion Council recessed at 9:00 p.m. and resumed dis- cussions at 9:10 p.m. Alderman Slattery reported that in the interest of all concerned and in an attempt to be fair and equitable, the Council were in complete agree- ment and had decided to allow the New York State Cable Commission to arbitrate the franchise and the Council will accept their findings conditional upon the signing of the franchise. Atty. Wiggins repeated that he was prepared to sign the franchise con- tingent upon the dispute being resolved by the New York State Cable Commission. It was agreed, for all intent and purposes, the City has signed contract with Cerrache Television Corporation. in fact a •� ,.� kk CITY ATTORNEY'S REPORT: - . - -- City Atty. Shapiro reported -he had met with Council in Executive Session with respect to clarification of the Moratorium, and there will be resolutions on the floor concerning a couple of items: (1) the intent of Common Council to restrict the Moratorium to R-2 and R-3 zones in the City, (2) the intent of Common Council not to enforce the Moratorium with respect to Certificates of Occupancy in cases where a building permit had previously been issued prior to the Moratorium, where the construction haci been started and carried out in good faith pursuant to that building permit and completed subsequent to the enactment of the Moratorium. Mayor Conley asked for clarification in the case of a person who has acquired a house and wants to do something with it, in an area where the Moratorium is in effect. City Atty. Shapiro explained the procedure: Application is made to the Board of Zoning Appeals for Variance, following the same procedure as outlined in the Zoning Ordinance. The application is filed with the Building Commissioner who refers it to the Planning Board for recommenda- tion on the planning issues. The Board of Zoning Appeals, after re-' ceiving recommendation from the Planning Board, reviews the case and makes decision at its next meeting. The Board of Zoning Appeals meets the first Monday of every month; application must be in by the third' Tuesday of the previous month. Resolution By Alderman Gutenberger:Seconded by Alderman Slattery RESOLVED, That the portion of the Moratorium regarding restrictions be so worded to read, "Restriction should apply to the R-2 and R-3 zones and that these restrictions would not apply to those persons who had previously applied and been granted a building permit_,_and have—complied with theCit.y'_s Codes and -Ordinances." . City Atty. Shapiro reported to Council on two zoning cases pending, and a couple of minor cases pending with respect to damage to city vehicles. BUDGET', ADMINISTRATION COMMITTEE: Approval and Confirmation of Sidewalk Assessments By Alderman Dennis: Seconded by Alderman Boothroyd: WHEREAS, the Board of Public Works levied sidewalk assessments on July 28, 1976, for the construction of sidewalks at 327 N. Albany Street, 614'E. Buffalo Street, 325 Center Street, 107 Fayette Street, 102 First Street and 522 N. Plain Street, and -6- December 1, 1976'x, WHEREAS, a public hearing thereon was held by said Board on November 10'1 1976, at which time the Board took action to finally approve said '�t assessments and filed schedule thereof with this Council for confirmatiotw and final approval, NOW, THEREFORE, BE IT RESOLVED, That said assessments in the total amount of $2,353.67 (schedule in Minute Book) be and the same hereby are approved and confirmed, and e BE IT FURTHER RESOLVED, That the City Clerk be and hereby is directed to prepare a Warrant on the City Chamberlain in accordance with such schedule for the collection of said assessments; and that the Mayor and City Clerk be authorized to sign and execute said Warrant, whereupon all such assessments will become due and payable from the date of execution thereof; and on all such assessments or portions thereof remaining un- paid after the expiration of six months from the date of such Warrant, the City Chamberlain shall add and collect the percentage thereon at the rate of 5% per annum except and provided however that the City Chamberlain may allow persons to pay their assessment, if the aggregate amount exceeds $25.00, in five equal installments with interest at 5% on or about June 1st each year, provided however, that any person desiring to pay by installments shall make application promptly in writing to the City Chamberlain; and all properties 'having such assess- ments. or portions thereof of installment payments in arrears, and re- maining unpaid at the close of any city tax collection period shall be included by the City Chamberlain in a subsequent city tax sale held in November each year following such city tax collection period; and such property shall be sold for any unpaid assessments or portions thereof or any unpaid installment payments, together with the outstanding balance of such installment payments, together with all interest, fees and penalties that may have accrued. Carried Agreement with the Tompkins County Senior Citizens' Council, Inc. By Alderman Dennis: Seconded by Alderman Boothroyd RESOLVED, That the Mayor and City Clerk be and they are hereby author- ized and directed to execute an agreement with the Tompkins County, Senior Citizens.Co:'nci1, Inc. to provide recreation for the elderly for a sum not to exceed $9,000. Discussion followed on the floor. A vote was taken on the resolution which resulted as follows: Carried Audit fly Alderman Dennis: Seconded by Alderman Boothroyd RESOLVED, That the bills audited and approved by the Budget and Admini- stration Committee in the total amount of $104,108.40 as listed on Audit Abstract #12 - 1976 be approved for payment. Discussion followed on the floor. A vote was taken on the resolution which resulted as follows: Carried Public Hearing on 1977 Budget By Alderman Dennis: Seconded by Alderman Boothroyd RESOLVED, That a Public Hearing on the Proposed 1977_ .Budget -be --held- on December ---1-5, 1976 at -7:30 P.M. and that the City Clerk is directed to advertise for said Public Hearing. Carried PLANNING DEVELOPMENT COMMITTEE: Recommendations of the Capital Improvements Review Committee Alderman Gutenberger presented the recommendations of the Capital Im- provements Review Committee. Maybr Conley briefly reviewed the recom- mended capital projects,explaining his recommendations. After discussion on the floor the following resolution was presented: a% -7- December 1, 1976 Resolution By Alderman Slattery: Seconded by Alderman Boronkay RESOLVED, That action on the 1977 Recommended Capital Projects be tabled. Carried Apartment Ordinance Alderman Gutenberger presented the suggested Apartment Ordinance to Council for their consideration. Two or three meetings at different locations are anticipated to which everyone will be welcome and, it is hoped, will offer input. It is hoped the document will be brought back to Council at their January or February meeting. Sale of Land - Treva Avenue By Alderman Gutenberger: Seconded by Alderman Dennis WHEREAS, the Board of Public Works, at its August 27, 1975 meeting, held a Public Hearing on the Discontinuance of an eight foot by 150 foot strip of land on Treva Avenue north of Bridge Street, and on November 24, 1976 held a Public Hearing on. the Discontinuance of an Additional three foot by 150 foot strip of land on`Treva Avenue, and WHEREAS, the Board of Public Works has determined that there, is no further public works need for said land, and WHEREAS, the Board of Public Works has prepared a survey of said land, and WHEREAS, the Planning Board has recommended sale of said land, NOW, THEREFORE, BE IT RESOLVED, That, this Common Council does find said land to be surplus, and directs the City Clerk to sell said land at public auction, and that all costs of such auction include the appraisal fee, two advertising costs, and the original appraised value of $500.00, based on eight foot by 150 :foot, be included in the minimum purchase price. Carried Traffic Light Meadow and Cascadilla Streets Mayof onley informed the Council that the New York State Department of Transportation will send its technical people to Ithaca to look over the traffic light situation at Meadow and Cascadilla Streets. At the request of Alderman Boronkay Mayor Conley agreed to discuss the possi- bility of lights at Seneca and Green Streets and Green and Geneva Streets with the DoT representatives. Community Development Budget 1977-78 Director of Planning & Development Van Cort informed the Council that Community Development Budget for 1977-78 is being worked on and there will be duly advertised public hearings held on December 13 and December 20 which are open to the public. CHARTER E ORDINANCES COMMITTEE: Freedom of Information Ordinance 13y Alderman Slattery: -Seconded by Alderman Boothroyd ORDINANCE NO. 76-12 AN ORDINANCE ADDING CHAPTER 2 ENTITLED "FREEDOM OF INFORMATION" TO THE CITY OF ITHACA MUNICIPAL CODE BE IT ORDAINED AND ENACTED by the Common Council of the City of Ithaca, New York, as follows:-_ _ __ _- _------_--- -- -- -.- ---- Section 1.That-a: new Chapter to be known and designated as Chapter 2 entitled "Freedom of Information" is hereby added to the City of Ithaca Municipal Code to read as follows: - "Chapter 2 - Freedom of Information" (insert attached) Section 2. This ordinance shall take effect immediately and in accordance with law upon publication of a notice as provided in Section 3.11 (b) of the Ithaca City Charter. PUBLIC ACCESS TO RECORDS RULES OF THE CITY OF ITHACA- Section: 2.1 Purpose The purpose of these regulations is to provide for the regulation of the examination of public records in compliance with and subject of -8- December 1, 1976 the provisions of the Freedom of Information Law (Public Officers Law, Article 6) and to insure the efficient operation of governmental offices.. Section:' 2.2 Definitions A. As used in these Rules: 1. "Agency" shall mean any municipal board, bureau, commission, council, department, public authority, public corporation, division, office or other governmental entity performing a governmental or propriety function for the City of Ithaca. 2. "Public Access Records Officer" shall mean the City Clerk of the City of Ithaca. 3. "Record" or "records" means any file, memorandum, document or other writing constituting: a) ordinances, local laws and resolutions, rules and regu- lations, of any agency; b) minutes of meetings of any agency; c) minutes of public hearings held before any agency; d) internal or external audits and statistical or factual tabulations made by or for any agency; e) administrative staff manuals and instructions to officers • and employers of any agency that affect members of the public f) payroll information as set forth in the Public Officers. Law; and final opinions, including concurring and dissenting opinions, as well as orders and decisions, made in the adjudication of cases; h) those statements of policy and interpretations which have been adopted by the agency and any documents, memoranda, data or other materials constituting statistical or factual tabulations which led to the formulation thereof; g) i) police blotters and booking records; j) any other files, records, papers or documents required by provision of law to be made available for public inspection. B. As used in this rule, the term "statistical tabulation" means a collection or orderly presentation of numerical data logi- cally arranged -in columns and rows or graphically and the term "factual tabulation" means a collection of statements of objec- tive information logically arranged and reflecting objective reality, actual existence, or an actual occurrence. Opinions, policy options and recommendations do not constitute statistical or factual tabulations. Section:- - 2.3 Procedure for access to records 1. Requests to inspect or to obtain a copy of records in the custody of any officer or employee of the City shall be submitted in writing either in person or by mail to the Public Access Records Officer on a form to be prescribed and furnished by such officer. Records shall be available for inspection at the Office of the City Clerk on all regular business days from 8:30 a.m. to 4:30 p.m. 2. If the records sought to be inspected or reproduced are (i) being inspected by another person: (ii) in the process of preparation; (iii) being used in official business; or (iv) if the requested inspection would unreasonably interfere withor disrupt office duties or business operations, the Public Access Records Officer shall so inform the person -9- December 1, 1976 and shall specify a reasonable time when such records may be inspected or reproduced. 3. Inspection and copying of records shall be conducted within the Office under the supervision of the Public Access Records Officer or he; designee. There shall be a one hour limit per day upon the inspection of one or more records by any one person; provided, however, that the Public Access Records Officer may, in his discretion, for good cause, extend such time limitation. The person may make either handwritten copies of records or through the use of his own copying or reproduction equipment but in no case shall such records be removed from the premises. The Public Access Records Officer may, in his discretion, furnish copies of any of the foregoing records at a charge of Twenty-five Cents ($.25) per page not exceeding eight and one-half inches by fifteen inches in ` size; provided, however, that the Public Access Records Officer may, in his discretion, for good cause, waive all or any portion of such charges for a particular record or class or records.. 4. Payroll information, as provided in Section Eighty-eight of the Public Officers Law, shall be made available for inspection and copying in accordance with the provisions of such statute and the regulations of the State Comptroller. A charge of Twenty-five Cents ($.25) per page not exceeding eight and one-half inches by fifteen inches in sizes shall be made for each copy furnished by the Agency provided, however, that the Public Access Records Officer may in his discretion, for good cause, waive all or any portion of such charges for a particular record or class: of records. Section: 2.4 Prevention of invasion of privacy 1. In accordance with the provisions of Subdivision Three of Section Eighty-eight of the Public Officers Law and in conformity with such guidelines as may be promulgated by the Committee on Public Access to Records regarding the prevention of unwarranted invasions of personal privacy, the Public Access Records Officer in his discretion may delete from any record identifying details the disclosure of which would result in unwa-ranted invasion of personal privacy prior to making such record availab=for inspection or copying. In the event that one or more deletion is so made from any document, the Public Access Records Officer. shall provide written notice of that fact to the person requesting the same. If the record is such that the personal matters.cannot be fully. deleted without, substantively affecting the record or the identifying details cannot be effectively deleted, the Public. Access Records Officer shall deny access to such record as provided herein. 2. An unwarranted invasion of personal property includes but shall: not be limited to: a) Disclosure of such personal matters as may have been reported in confidence to an agency or municipality and which are not relevant or essential to the ordinary work of the agency or • municipality; b) Disclosure of employment, medical or credit histories or personal references of applicants for employment, except such recordsmay be disclosed when the applicant has provided a ' written release permitting such disclosure. c) Disclosure of items involving_the.med cyal _ox_P:e:r-soval--:records~ of a -client orpatient in a hospital or medical facility; d) The sale or release or lists of names and addresses in the possession of any agency or municipality if such lists would be used for,, private, commercial or fund-raising purposes; Disclosure of items of a personal nature when disclosure would result in economic or personal hardship to the subject party and such records are not relevant or essential to the ordinary work of the agency or municipality; Section: 2.5 Grant or denial of access to records If the Public Access Records Officer determines that a request to e) December 1, 197b:\ inspect or copy records pertains to.information required to be disclose` under Subdivision,One.of Section Eighty-eight of the Public Officers Law and not exempted from disclosure. as ari unwarranted invasion of personal \, privacy or,.otherwise, he shall grant the request. The Public Access` Records Officer may, in. his, discretion, for good cause, grant:a request to inspect or copy reco,rds.or.other information which is not required to be. made available pursuant, to Section Eighty-eight'of the Public Officers Law and not exempt .from disclosure as an unwarranted invasion of personal privacy or otherwise. If the.;Public Access Records Officer determines that a request to inspect or. copy records pertain to information specifi - cally exempted from disclosure.:by,Subdivision Seven of Section Eighty • - Eight of the Public Officers Law or pursuant to Subdivision Three of Section Eighty-eight of such law., he shall deny such request. In deny-' ing any request to inspect or copy records the Public Access Records • Officer shall indicate his reason for such denial and shall advise the person requesting the same of his.right to appeal such denial to the Mayor. Section: 2.6 Appeals Any person whose request to inspect, copy or have a copy made of records, has been denied .may 'appeal,such denial to the Mayor within ten days from the dateof the denial. Such appeal must be in writing and must set forth the name and address of the appellant, the specific records requested, the date of the denial and the reasons given for such denial. The Mayor upon,review.of the appeal may affirm, modify or re- serve the denial within seven days of the receipt of the appeal. If the Mayor affirms -or modifies the denial he shall communicate his reasons in writing for such affirmation or modification to the person making the appeal and inform such person of his right to appeal such affirmation or modification pursuant to Article 78 of the Civil Practice Law and Rules. Section:. 2.7 List of Records The Public Access Records Officer shall maintain and make available -,for inspection and copying at his office a current list, reasonably detailed by subject matter, of the types of records produced, filed or first. kept in the Office on and after the first day of January Nineteen Hundred Seventy -Seven. Such list shall be in conformity with such regu- lations as may be promulgated by the Committee on Public Access to Records. Section: 2.8 Exemptions Notwithstanding the provisions of subdivision one of this section this article shall not apply to information that is:. 1. specifically exempted by statute; 2. confidentially disclosed to an agency and compiled and main- tained for the regulation of commercial enterprise, including' trade secrets, or for the grant or review of a license to do business and if openly disclosed would permit an unfair advantage to competitors of the subject enterprise, but this exemption shall not apply to records the disclosure or publication of which is directed by other statute; or 3. if disclosed, an -unwarranted invasion of personal privacy, pursuant to the standard'sor subdivision. three of this section. 4. part of investigatory files compiled for law enforcement pur- poses. Carried Tompkins County Intergovernmental Relations -Study Committee By Alderman Slattery: Seconded by Alderman Meyer RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF ITHACA TO EXPLORE THE CONCEPT OF. INTERMUNICIPAL COOPERATION IN CABLE TELEVISION. RESOLVED, That the Common Council of the City of Ithaca does resolve that it is interested in exploring the concept of intermunicipal coopera- tion in.the field of cable television, and designates Mr. Dana Ulloth as its representative to work with the Tompkins County Intergovernmental Relations Study Committee on this matter. . Carried Tax Exemption on Public Property By Alderman Slattery: Seconded by Alderman Boronkay RESOLVED, That the communications from Town of Ithaca Supervisor, Walter -1T- December 1, 1976 Schwan, and the matter of exempting taxes on public property be referred to the Charter & Ordinances Committee and City Attorney Shapiro. Carried Rescheduling of trains in the West End of the City Mayor Conley informed the Council that the New York State Department of Transportation will participate in negotiations with Cargill, NYSEG and other users and the Traffic Control body of Conrail relative to the possibility of rescheduling of trains through the West end of Ithaca in an attempt to improve traffic flow and safety. HUMAN SERVICES COMMITTEE: Youth Bureau Continuation Contract By Alderman Boothroyd: Seconded by Alderman Dennis WHEREAS, The City of. Ithaca is about to submit an application for con- tinuation of the Youth Bureau to the New York State Division for Youth for its approval, and, if approved, to apply subsequently to the State of New York for partial reimbursement of funds expended on said project as provided by Chapter 556 of the -laws of 1945, as amended: NOW, THEREFORE, BE IT RESOLVED, That such application is in all. respects approved and Edward Conley, Mayor, is hereby directed and authorized to duly execute and present said application to the New York State Division for Youth for its approval: AND BE IT FURTHER RESOLVED, That this resolution shall take effect December 1, 1976. Carried City of Ithaca/Town of Ithaca Agreement By Alderman Boothroyd: Seconded by Alderman Slattery RESOLVED, That the Mayor be empowered to sign the contract between the City of Ithaca and the Town of Ithaca for operation of a youth service and recreation program for 1977. (copy in Minute Book) Carried BICENTFWNIAL COMMISSION: 1,IdermL:_: Nichols reported the Barge Committee met on November 23, 1976 and disscived inasmuch as there is nothing left to be done. They agreed to distribute the money that was left as follo.ws:. $.400 to Tioga .County, $250 to Broome County and .$650 to the City of Ithaca for their expenses incurred while working on the project. There remains $950 in another account which will be distributed to participating bodies within the city. Mayor Conley expressed appreciation to the Committee for the fine job they did in arranging the bicentennial celebration and other activities. ADJOURNMENT: On a motion, the meeting adjourned at 10:40 p.m. 77JoIph A. D undle, City- Clerk-- , Mayor OFFICE OF CITY ATTORNEY CITY OF ITHACA TOMPKINS COUNTY ITHACA, NEW YORK 141350 MEMO TO: Mr. Joseph Rundle, City Clerk FROM: Martin A. Shapiro, City Attorney 44( DATE: January 27, 1978 SUBJECT: T.V. Franchise 00 AI..:1 RECEIG iA 30 Cty ITHACA, TELEPHONE: 272-1713 CODE 607 Attached hereto please find the original, fully executed Television Franchise. Please add the cover part of the Local Law. MAS:rb ATTACH. TELEVISION CABLE FRANCHISE Agreement made this 20th day of January , 1978, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 20 Inverness Place EastEngleaoac f, Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 20Inver- nss-Plece-=East,=Engl•ewood, Colorado, 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, modifi- cation, 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. 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 part2of1.a-fu11 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 service lines in and over and the right to use, all pub- lic 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 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 Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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. 5. 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 Commission, 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, if required be allowed to proceed to petition the Public Service Commis- sion of the State of New York or other applicable State Commission 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 street, 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 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 -con- trolled 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 bythe construction, laying maintenance or operation of any of its lines or other under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination -3 - of radio interference. b) The Grantee shall certify to the City and provide such required documentation to prove that it is in fact meeting the minimal tech- nical standards required by the Federal Communications Commission and the New York State Commission on Cable Television. Said certification and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van to make certi fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over -the -air broadcast pictures, pay television programs and local orgination. Additional services should be provided only after securing City approval, if lawfully required by the State Cable Commission. It is understood that litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services. 11. This franchise does not in any manner grant to the Grantee, his successors or assigns, the exclusive right to the sale and seriiice of television sets, accessories, or convertors within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise 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, subject only tot"the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) Residential or Commercial establishments: Maximum charges: First installation charge - $20.00. Each additional installation - $10.00. Rental for fust installation - $5.50 per month, basic cable service including 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented from Grantee). 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. 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 avail- able at the 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 residential installation fee and moves to another residence within the City where the 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 $5.50 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 linesf_in any way. 8) Any increase of the maximum charges must first be ap- proved 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. 10) The City specifically reserves the right to conduct 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 contained in this agreement. -5- 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 cable or wires erected shall, in all respects, comply with:3the 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 through- out the street installations. Messenger cable shall be used to carry the coaxial cable across the streets. 14. Th:eholder 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, unless after review of the performance of the Gran- tee, Grantor shall determine that said performance has been in- adequate, in which case the Grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 with -in 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 pr-ivileges and ,;powers as are covered by this franchise shall be allowed during the period hereof except upon a franchise applied for andaapproved by the Common;:Council . -6- 17. 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. 31 hereinbelow. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regu- lations of the Federal Communications Commission of -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, excepting herefrom any prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provi- sion 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 con- tinue to provide such service throughout the duration of the fran- chise, 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. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual:_business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received atnany time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide adequateand prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of -7 - complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intial subscription to the cable system and at intervals hereafter 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 with- out the written consent of the City. 24. Any City or private property damaged or destroyed shall be prompt- ly repaired or replaced by Grantee and restored to serviceable condition. 25. Grantee shall not refuse to hire or employ, nor bar or dis- charge 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 pro- visions contained in the franchise and existing applicable ordinances, such additional regulations as it shall find necessary in the exer- cise 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 material, of the franchise, 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 therprovisions hereof are subject to the approval of said Commission. 29. a) Within thirty days of the receipt of final operating5authority, Grantee shall post security with the City in the amount of $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. 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 com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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 of all of the initial security, the Grantee shall within thirty days thereafter post additional security sotthat the total amount of security posted equals $5,000. 30. Grantee shall file requests for all necessary operating authoriz- ation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. The City has approved:, pursuant to a public hearing held after public notice, the following rates: a) A charge of $6.00-.:per:mo.nth per television receiver may be made for subscription or pay-cable programming, i:re., Home Box Office. b) A maximum charge of $2.00 per month per television receiver may be made for the provision by Grantee of a::converter for the recep- tion of either subscription or pay cable programming or the reception of additional broadcast channels that may be received only with such convertor. 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) American Television and Communications 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. Public access will be carried on channel 13. ATC, within 90 days of completion of the transfer, will diligently pursue with the FCC additional channel allocations for potential access use within the channel 2 through 13 range. 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 American Television and Communications 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 American Television and Communications Corporation. g) The City Cable Commission shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in theCity of Ithaca. 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) Public access studios shall be maintained at the company's headquarters on West= State Street and wi11include televi's onrdameras, record,ng�an.dtplayback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired.for.public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities., equipment and cable drops. 1) 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 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 informa- tion requested, to the Common Council annually as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commis- sion and outside accountants ifit deems necessary, and receive and consider the results therefrom, before any rate increase hereunder shall be granted. .In addition to the above provisions, ATC will submit independently audited financial statements-covering:}its operation of the Ithaca area cable television system from the time of the most recent rate increase when it petitions the City for an increase in rates charged to subscribers. 35. The value of this franchise at the end of the term shallbe. 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 contained herein as if the Grantee had materially breached any term or provisionofthis franchise. agreement. 37. The franchise will supply a.• statement of the capital assets. devoted to the cable operation in the City of Ithaca. The provisions of this paragraph shall be invoked only in theevent of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such customer and to all existing customers prior tothe effective date of any rate change. This statement shall contain the following: (1) Statement of rates pertaining to the customer,.intluding hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and Complaint procedures, both within ATC and those available through -11 - the City of Ithaca. 39. Bills will always be paid to the local office or other designated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 40. Not later than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca area cable television system, a review of line extension work completed, a summary of complaints lodged against ATC, and such other information as may reasonably be required by the City. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year first above -..-written. CITY OF ITHACA BY: 'feeryo 774,:, AMERICAN TELEVISION AND COMMUNICA ION'!,L ORPORATION BY: Jos:sh J. Collins, Vice President SECTION 2. EXECUTION AGREEMENT The Mayor of the City4f Ithaca is hereby authorized to execute the Television Cable Franchise Agreement on behalf of the City of Ithaca and American Television and Communications 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. STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this 27 day of JAIovAeo f , 1977, 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 instru- ment; 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. STATE OF -COLORADO COUNTY OF ARAPAHOE CITY OF ENGLEWOOD • SS: Notary ublic MARTIN A. SHAPIRO Notary Public, State of New York No. 55-8933910 Qualified in Tompkins County Term Expires March 30, 197$ On this day 1979, before me, the subscriber, personally appeared' '% ' who being by me duly sworn, did depose and state t at he is the Vice Pres. of American Television and Communications Corporation, the corporation described in and which executed theforegoing instrument; that he knows the seal of said copporation; 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 hIis name thereto by like order. CERACCHE... TELEVISION REGErvEaJAM =+1970 A DIVISION OF AMERICAN TELEVISION & COMMUNICATIONS CORP. 519 West State Street. It aca, N.Y. 4 50 (6 272-3456 r�771,1a,r1_, &(2--v1-/-67 aea aci— % a &,kc ae.A-e' r' Ce r`/ a Ga'G%zikv -�� �"` cod 7�� �,�4 6-74— Lecxdovc �- .- ,e 7 9 7 7 �v ULAAA —)977,,( i,, 7, ' �� Kms. ao c2.66/ as Xhc. & jI d Ae161-e c J c ••- ) )/L{ , 620 cLe-tP / 04 ,czei D - lfil�C ^n \-e-4c-t-c-1-1.-f--7 A-ro2 61e -t- Ai 27-2.4 ,.22,,J .A.6L4-1-c-ece -7464,e, 6 ce -bh CABLE.TELEVISION FRANCHISE AMENDMENT 8 AGREEMENT, made this MIth -day of January , 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 American Television and Communications Corporation, a Delaware Corporation, duly authorized to do business under and by virtue of the laws of the State of New York, having its principal place of, business at 20 Inverness Place East, Englewood, Colorado, party of the second part, Grantee. WHEREAS, the Grantor had entered into a Cable Television Franchise Agreement,. datedMay.1, 1966 with Ceracche Television Corporation, which Agreement :was amended on February 7, 1977; and WHEREAS, Paragraph "16" of the said amended Agreement dated February 7, 1977 provided that the interest of Ceracche Television Corporation thereunder could be tranferred only upon approval by the Grantor; and WHEREAS, Cerrache Television Corporation requested that the Grantor approve the assignment of the Cable Television. Franchise to Grantee.herein; and WHEREAS, after a public hearing held after due public notice thereof, the Common Council of the City of Ithaca duly passed a resolution, dated August 3, 1977, whereby. the Grantor r 1 consented to the assignment of the said Franchise to Grantee on the condition that, after consummation of the transfer, Grantor and Grantee enter into an Amended Franchise Agreement on the terms and conditions set forth in the aforesaid resolu- tion; and WHEREAS, the New York State Commission on Cable Television approved the. said transfer by Order dated September27, 1977; and WHEREAS, Ceracche Television Corporation and. Grantee consummated the said transfer on October 12, 1977; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and other valuable consideration, the Grantor and Grantee hereby amend and restate the said Cable Television Franchise Agreement and agree as follows: Ceracche Television, Division of., American Televis/jon and Communications Corporati,tn By: Joseph Collins, Vice President -l" OFFICE OF MAYOR e CITY OF ITHACA 108 EAST GREEN STREET ITHACA, NEW YORK 14850 MEMO TO: Mr. Joteph Rundle, City Clerk FROM: Mayor Edward J. Conley DATE: November 10, 1977 SUBJECT: Cable TV NOV -IA 1977 TELEP SNE: 272-1713 CODE 607 Attached hereto please find the original Franchise Bond and Certificate of Insurance for permanent filing. EJC:rb ATTACH. • StalUI Properly& Liabduy Insurance &1 ST. PAUL FIRE AND MARINE INSURANCE COMPANY ❑ ST. PAUL MERCURY INSURANCE COMPANY CERTIFICATE OF INSURANCE This is to certify that the following policies, subject to the terms, conditions and exclusions have been issued by this Company. The Company will mail to the party to whom this Certificate is issued a record of any material change in or cancellation of said policy or policies but takes no responsibility for failure to do so. NAME AND ADDRESS OF PARTY TO WHOM CERTIFICATE IS ISSUED: • City of Ithaca Ithaca, New York • • • NARCAP, INC. 245 Columbine Street Denver, Colorado 80206 (303) 399-2550 NAME AND ADDRESS OF INSURED American Television and Communications Corporation TYPE OF INSURANCE & POLICY NO. DATE LIMITS OF LIABILITY WORKMEN'S COMPENSATION 799PA4172 EFFECTIVE EXPIRATION 6/30/77 16/30/78 STATUTORY — In conformance with the Compensation Law of the State of: NEW YORK PUBLIC LIABILITY BODILY INJURY ' PROPERTY DAMAGE CombinedSin le Limit-B.I.& P�. Each Occurrence Aggregate Each Occurrence Aggregate AUTOMOBILE LIABILITY 699NA5347 6/30/77 1 6/30/78 Each Person 500,000 Each Occurrence 500,000 Each Occurrence 250,000 *699NA5347 6/30/77 I 6/30/78 500,000 500,000 250,000 250,000 1 UMBRELLA LIABILITY $ Each Occurrence and Annual Aggregate (where applicable). Excess of Primary Insurance ora $ Retained Limit. REMARKS: ^c:omprenensive ueneral 1,iaDi±aiy in . Per Cable Television Franchise Agreement. It is agreed that this insurance will not be cancelled or materially changed until 30 days prior written notice of such cancellation or change has been given to the City of Ithaca. This CERTIFICATE OF INSURANCE neither affirmatively nor negatively amends, extends or alters the coverage afforded by these policies. Dated 10/13/77 By 14842 COI Rev. 9-76 Printed in U.S.A. SEABOARD SURETY COMPANY NEW YORK, NEW YORK AMOUNT OF BOND: $5,000.00 BOND NO. 838224 FRANCHISE BOND • ".NOW ALL MEN BY THESE PRESENTS: That we, AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION a Corporation organized under the laws of the State of DELAWARE as Principal, and SEABOARD S'URE'TY COMPANY, a Corporation of the State of New York, -and duly authorized to transact business in the State of NEW YOB as Surety, are held and firmly bound unto CITY OF ITHACA. in the sum of FIVE THOUSAND AND NO/l00 (55,00Q_n0) lawful money of the United States of America, to be paid to said Obligee, its successors and assigns, jointly and severally, firmly by these presents. - THE CONDITION OF THE, FOREGOING OBLIGATION IS SUCH, THAT WHEREAS, Principal has entered or is about to accept from Obligee the grant - of a Franchise from Obligee for the construction, operation, and maintenance of a.. Qu •ty Antenna Television System, pursuant to and in accordance with the terms and conditions of FRANCHISE AGREEMENT, FEBRUARY, 1977 reference to which is hereby made, and which are hereby made a part hereof. - HOWEVER, this Bond does not provide any coverage for damages arising out of Copyright Infringements. NOW, THEREFORE, this Bond is conditioned upon the faithful performance by Principal of all of the terms of FRANCHISE AGREEMENT, FEBRUARY, 1977 and the Franchise granted under said FRANCHISE AGREEMENT, LEBRUARY, 1977 in the event Principal shall fall to comply with any one or more of the provisions of said FRANCHISE AGREEMENT, FEBRUARY, 1977 or of any Franchise issued to the Principal hereunder, there shall be recoverable jointly and severally from the Principal and Surety any damages or loss suffered by the Obligee as a result thereof, including abandonment of any property of the Principal which may be in default, plus a reasonable allowance for attorney's fees and costs, up to the full amount of the Bond, said condition to be a continuing obligation for the duration of such Franchise and any renewal thereof and there- after until the Principal has liquidated all of its obligations with the Obligee . that may have arisen from the acceptance of said Franchise or renewal by the. Principal or from its exercise of any privilege therein granted. A written statement of such default with full details thereof shall be given to Surety promptly, and in any event, within thirty (30) days after CITY OF ITHACA shall learn of such default, such notice to be delivered personally or by mail to Surety at Boston, Massachusetts. That no claim, suit or action under this Bond by reason of any such default shall be brought against Surety unless asserted or commenced within twenty-four (24) months after the effective date of any termination or cancellation of:this Bond. PAGE 2. That this Bond may be terminated or cancelled by Surety by THIRTY (30 ) days prior notice in writing from Surety to Principal and to CITY -:-PF ITHACA such notice to be given by Certified mail. Such termination or cancellation shall not affect any liability incurred or accrued under this Bond prior to the effective date of such termination or cancellation. That no right of action shall accrue under this Bond to or for the use of any person other than the Obligee hereunder, namely CITY OF ITHACA and its successors and assigns. IN WITNESS WHEREOF, the above bounden Principal and the above bounden Surety have hereunto set their hands and seals; all on the 6th day of OCTOBER 5 1977 S-EAL - SEAL AMERICAN TELEVISION AND COMMUNICATIONS .CORFORATION SEABOARD SURETY COMPANY . SURETY BARBARA. LL RO RNEY-IN,.FACT Certified Copy 6. No. 7968 SEA13OARIU SU'II2ETI" C®:sII',ii-Y HOMn OIrFzcE NEwYORic,NEwYoIuc POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That SEABOARD SURETY COMPANY, a cor- poration of the State of New York, has made, constituted arid appointed and by these presents does make, constitute and appoint Peter L. Dunkle or Barbara J. Rogers of Denver, Colorado its true and lawful Attorney -in -Fact, to make, execute and deliver on its behalf insurance policies, surety bonds, undertakings and other instruments of similar nature as follows: Without Limitations. Such insurance policies, surety bonds, undertakings and instruments for said purposes, when duly executed by the aforesaid Attorney -in -Fact, shall be binding upon the said Company as fully and to the same extent as if signed by the duly authorized officers of the Company and sealed with its corporate seal; and all the acts of said Attorney -in -Fact, pursuant to the authority hereby given, are hereby ratified and confirmed. This appointment is made pursuant to the following By -Laws which were duly adopted by the Board of Directors of the said Company on December 8th, 1927, and are still in full force and effect: ARTICLE VIII, SECTION 1: "Policies, bonds, recognizances, stipulations. consents of surety, underwriting undertakings and instruments relating thereto. Insurance policies, bonds, recognizances, stipulations, consents of surety and underwriting undertakings of the Company, and releases, agreements and other writings relating in any way thereto or to any claim or loss thereunder, shall be signed in the name and on behalf of the Company (a) by the Chairman of the Board, the President, a Vice President or a Resident Vice President and by the Secretary, an Assistant Secretary, a Resident Secretary or a Resident Assistant Secretary; or (b) by an Attorney -in -Fact for the Company appointed and authorized by the Chairman of the Board, the President or a Vice President to make such signature; or (c) by such other officers or representatives as the Board may from time to time determine. The seal of the Company shall if appropriate be affixed thereto by any such officer, Attorney -in -Fact or representative." IN WITNESS WHEREOF, SEABOARD SURETY COMPANY has caused these presents to be signed by one of its Vice -Presidents, and its corporate seal to be hereunto affixed and duly attested by one of its Assistant Secretaries, this 29th day of ��B�.�l"��?�x , 19...7.x.. Attest: SEABOARD SURETY COMPANY, By Karen Hayes W. S. Wehrell Assistant Secretary Vice -President (Seal) STATE OF NEW YORK COUNTY OF NEW YORK }ss.: On this 29th day -of September , 19 76 , before me personally appeared W. S. Wehrell a Vice -President of SEABOARD SURETY COMPANY, with whom I am personally acquainted, who, being by me duly sworn, said that he resides in the State of Rew....J.eraey ; that he is a Vice -President of SEABOARD SURETY COMPANY, the corporation described in and which executed the foregoing instrument; that he knows the corporate seal of the said Company; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto as Vice -President of said Company by like authority. State of New, York No, 21+7.7101151+0 Qualified in Kings County Cert. filed in New York County (Seal) Commission Expires 'March 30, 1978 CERTIFICATE I, the undersigned Assistant Secretary of SEABOARD SURETY COMPANY do hereby certify that the original Power of Attorney of which the foregoing is a full, true and correct copy, is in full force and effect on the date of this Certificate and I do further certify that the Vice President who executed the said Power of Attorney was one of the Officers authorized by the Board of Directors to appoint an attorney-in-fact as provided in Article VIII, Section 1, of the By -Laws of SEABOARD SURETY COMPANY. - ` - - - - - This Certificate may be signed and scaled by facsimile under and by authority of the following resolution of the Board of Directors of SEABOARD SURETY COMPANY at a meeting duly called and held on the 25th day of March 1970. Violet Johnson Notary Public "RESOLVED: (2) That the use of a printed facsimile of the corporate seal of the company and of the signature of an Assistant Secretary on any certification of the correctness of a copy of an instrument executed by the President or a Vice -President pursuant to Article VIII, Section 1, of the By -Laws appointing and authorizing an attorney-in-fact to sign in the name and on behalf of the company surety bonds, underwriting undertakings or other instruments described in said Article VIII, Section 1, with like effect as if such seal and such signature had been manually affixed and made, hereby is authorized and approved." IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the Company to these presents this 6th day of OCTOBER , 19 77 Assistant Secretary Form 957 (Rev. (-74) CERAC H E TELEVIION Division of ATC .4f+,!;- 519 ?.' 519 WEST STATE STREET • ITHACA NEW YORK 1 4 8 5 0 October 31, 1977 Honorable Edward Conley, Mayor City of Ithaca 108 E. Green Street Ithaca, New York 14850 Dear Mayor Conley: In accordance with the Cable Television franchise granted us by your recent consent of transfer from Ceracche Television Corporation to ATC, enclosed please find our Franchise Bond and Certificate of Insurance. I trust you will find these in compliance with our franchise requirements. If you have any questions regarding these documents, or if I can be of any assistance, please feel free to contact me. Kevin H. Rorke General Manager KHR:tm ENCL. twv s. AY400;15., ntaml Pro; xarry&Lr'ibdiry • Insurance Ail ST. PAUL FIRE AND MARINE INSURANCE COMPANY ❑ ST. PAUL MERCk RY INSURANCE COMPANY CERTIFICATE OF INSURANCE This is to certify that the following policies, subject to the terms, conditions and exclusions have been issued by this Company. The Company will mail to the party to whom this Certificate is issued a record of any material change in or cancellation of said policy or policies but takes no responsibility for failure to do so. _. NAME AND ADDRESS OF PARTY TO WHOM CERTIFICATE IS ISSUED: • City of Ithaca Ithaca, New York • • • NARCAP, INC. 245 Columbine Street Denver, Colorado 80206 (303) 399-2550 NAME AND ADDRESS OF INSURED American Televisionand Cbrrlmunications Corporation TYPE OF INSURANCE & ab" DATE LIMITS OF LIABILITY POLICY NO. WORKMEN'S COMPENSATION 799PA4172 EFFECTIVE EXPIRATION 6/30/77 16/30/78 STATUTORY — In conformance with the Compensation Law of the State of: NEW YORK PUBLIC LIABILITY BODILY_ INJURY PROPERTY DAMAGE CoarmbinnedSinn e Each Occurrence Aggregate Each Occurrence Aggregate AUTOMOBILE LIABILITY 699NA5347 6/30/77 6/30/78 Each Person 500,000 Each Occurrence 500,000. Each Occurrence 250,000 *699NA5347 6/30/77 6/30/78 500,000 500,000 250,000 250,000 UMBRELLA LIABILITY $ Each Occurrence and Annual Aggregate (where applicable). Excess of Primary Insurance or a $ Retained Limit. 1udin Contractual Liability. REMARKS: Dated ^�;omprehensive general L1 ility inc g Per Cable Television Franchise Agreement. It is agreed that this insurance will not be cancelled or materially changed until 30 days prior written notice of such cancellation or change has been given to the City of Ithaca. This CERTIFICATE OF INSURANCE neither affirmatively nor negatively amends, extends or alters the coverage afforded by these policies. 10/13/77 By SEABOARD SURETY COMPANY NEW YORK, NEW YORK Y1OUN1 OF BOND: $5,000.00 BOND NO. 838224 FRANCHISE BOND -NOW AIL MEN BY THESE PRESENTS: That we, AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION a.Corporation organized under the laws of the State of DELAWARE as Principal, and SEABOARD SURETY -COMPANY, a Corporation of the State of New York, and duly authorized to transact -business in the State of NEW YORK as Surety, are held and firmly bound unto CITY OF ITHACA. in the sum of FIVE THOUSAND AND NO/100 (5,000J0fl lawful money of the United States of America, to be paid to said Obligee, its successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE. FOREGOING OBLIGATION IS SUCH, THAT WHEREAS, Principal has entered or is about to accept from Obligee the grant - of a Franchise from Obligee for the construction, operation, and maintenance of a Community Antenna Television System, pursuant to and in accordance with the terms and conditions of FRANCHISE AGREEMENT, FEBRUARY, 1977 - reference to which is hereby made, and which are hereby made a part hereof.- HOWEVER, this Bond does not provide any coverage for damages arising out of Copyright Infringements. NOW, THEREFORE, this Bond is conditioned upon the faithful performance by Principal of all of the terms of FRANCHISE AGREEMENT, FEBRUARY, 1977 and the Franchise granted under said FRANCHISE AGREEMENT, FEBRUARY, 1977 in the event Principal shall fail to comply with any one or more of the provisions of said FRANCHISE AGREEMENT, FEBRUARY, 1977 , or of any Franchise issued to the Principal hereunder, there shall be recoverable jointly and severally from the Principal and Surety any damages or loss suffered by the Obligee as a result thereof, including abandonment of any property of the Principal which may be in default, plus -a reasonable allowance for attorney's fees and costs, up to the full amount of the Bond, said condition to be a continuing obligation for the duration of such Franchise and any renewal thereof and there- after until the Principal has liquidated all of its obligations with the Obligee that may have arisen from the. acceptance of said Franchise or renewal by the... Principal or from its exercise of any privilege therein granted. A written statement of such default with fall details thereof shall be given to Surety promptly, and in any event, within thirty (30) days after CITY OF ITHACA shall learn of such default, such notice -to -be del-ivered-persoftally-or by mail to Surety at Boston; Massachusetts. That no claim, suit or action under this Bond by reason of any such default shall be brought against Surety unless asserted or commenced within twenty-four (24) months after the effective date of any termination or carbcellation of -this Bond. PAGE 2. That this Bond may be terminated or cancelled by Surety by THIRTY • (30 ) days prior notice in writing from Surety to Principal and to CITY OF ITHACA such notice to be given by Certified mail. Such termination or cancellation shall not affect any liability incurred or accrued under this Bond prior to the effective date of such termination or cancellation. That no right of action shall accrue under this Bond to or for the use of any person other than the Obligee hereunder, namely CITY OF ITHACA and its successors and assigns. IN WITNESS WHEREOF, the above bounden Principal and .the above bounden' Surety have hereunto set their hands and sPA1s, all on the 6th day of OCTOBER 1977 SEAL , SEAL CO GNED BY: RESIDENT AGENT OF NEW YORK a AMERICAN 'TELEVISION AND COMMUNICATIONS 5 CORPORATION SEABOARD SURELY COMPANY SURETY BARBARA J. RORNEY-IN-FACT Certified Copy SEiwo.vzi) SURETY• COMPANY _ HOML OIr,r10E No. 7968 NEW\YORK, NEW YORK POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That SEABOARD SURETY COMPANY, a cor- poration of the State of New York, has made, constituted and appointed and by these presents does make, constitute and appoint Peter L. Dunkle or Barbara J. Rogers of Denver, Colorado its true and lawful Attorney -in -Fact, to make, execute and deliver on its behalf insurance policies, surety bonds, undertakings and other instruments of similar nature as follows: Without Limitations. Such insurance policies, surety bonds, undertakings and instruments for said purposes, when duly executed by the aforesaid Attorney -in -Fact, shall be binding upon the said Company as fully and to the same extent as if signed by the duly authorized officers of the Company and sealed with its corporate seal; and all the acts of said Attorney -in -Fact, pursuant to the authority hereby given, are hereby ratified and confirmed. This appointment is made pursuant to the following By -Laws which were duly adopted by the Board of Directors of the said Company on December 8th, 1927, and are still in full force and effect: ARTICLE VIII, SECTION 1: "Policies, bonds, recognizances, stipulations, consents of surety, underwriting undertakings and instruments relating thereto. Insurance policies, bonds, recognizances, stipulations, consents of surety and underwriting undertakings of the Company, and releases, agreements and other writings relating in any way thereto or to any claim or loss thereunder, shall be signed in the name and on behalf of the Company (a) by the Chairman of the Board, the President, a Vice President or a Resident Vice President and by the Secretary, an Assistant Secretary, a Resident Secretary or a Resident Assistant Secretary; or (b) by an Attorney -in -Fact for the Company appointed and authorized by the Chairman of the Board, the President or a Vice President to make such signature; or (c) by such other officers or representatives as the Board may from time to time determine. The seal of the Company shall if appropriate be affixed thereto by any such officer, Attorney -in -Fact or representative." IN WITNESS WHEREOF, SEABOARD SURETY COMPANY has caused these presents to be signed by one of its Vice -Presidents, and its corporate seal to be hereunto affixed and duly attested by one of its Assistant Secretaries, this 29th day oftSnfrg,TM•1bQx , 19...7.6.. Attest: SEABOARD SURETY COMPANY, (Seal) Assistant Secretary Karen Hayes By W._ -_Tehrell Vice -President STATE OF NEW YORK COUNTY OF NEW YORK } ss.: On this 29th day -of September , 19 76 , before me personally appeared W S. Wehrell a Vice -President of SEABOARD SURETY COMPANY, with whom I am personally acquainted, who, being by me duly sworn, said that he resides in the State of J>te3►?..Jers.ey ; that he is a Vice -President of SEABOARD SURETY COMPANY, the corporation described in and which executed the foregoing instrument; that he knows the corporate seal of the said Company; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto as Vice -President of said Company by like authority. State of Neer- York No. 21k..-71045)40 Qualified in Kings County Cert. filed in New York County (Seal) Commission. Expires 'March 30, 1978 CERTIFICATE I, the undersigned Assistant Secretary of SEABOARD SURETY COMPANY do hereby certify that the original Power of Attorney of which the foregoing is a full, true and correct copy, is in full force and effect on the date of this Certificate and I do further certify that the Vice President who executed the said Power of Attorney was one of the Officers authorized by the Board of Directors to appoint an attorney-in-fact as provided in Article VIII,__ Section 1, of the By -Laws of SEABOARD SURETY COMPANY. ___ ___ --� This Certificate may be signed and sealed by facsimile under and by authority of the following resolution of the Board of Directors of SEABOARD SURETY COMPANY at a meeting duly called and held on the 25th day of March 1970. "RESOLVED: (2) That the use of a printed facsimile of the corporate seal of the company and of the signature of an Assistant Secretary on any certification of the correctness of a copy of an instrument executed by the President or a Vice -President pursuant to Article VIII, Section 1, of the By -Laws appointing and authorizing an attorney-in-fact to sign in the name and on behalf of the company surety bonds, underwriting undertakings or other instruments described in said Article VIII, Section 1, with like effect as if such seal and such signature had been manually affixed and made, hereby is authorized and approved." IN WITNESS WHEREOF. I have hereunto set my hand and affixed the corporate seal of the Company to these presents this 6th day of OCTOBER 19 77 Violet Johnson Notary Public ,4SURETy-, by CPQ 47. 0 � - w; 1927% J? gie 0 HE Assi.t:int Secretary Farm 457 (Rev. (.• 74) Division of ATC E1 • TELEVISION WEteagtzforxikeeY 5 1 9 WEST STATE S T R E E T • I T H A C A. NEW YORK 1 4 8 5 0 RECE VFO NOV 3 1977.. Honorable Edward Conley, Mayor City of Ithaca 108 E. Green Street Ithaca, New York 14850 October 31, 1977 Dear Mayor Conley: In February, 1977 the Common Council of the City of Ithaca approved the request of Ceracche Television Corporation to implement a $2.00 monthly charge for rental of a converter from Ceracche 'for the purposes of receiving either additional television signal (above channel 13) or Home Box Office. This rate was approved by the New York State Commission on Cable Television in their order issued March 25, 1977. I am writing to inform you and members of the Common Council that this rate approval is transferred to ATC through • the franchise transfer consent the Common Council granted to ATC. We intend to implement this charge effective January 1, 1978.. We presently do not have any 24 channel cable customers, though we have numerous Home Box Office customers. We are informing City of Ithaca _customers in the November_1, 1977 mailing of Home Box Office Guides. This notification will allow customers to discontinue HBO service should they desire not to incur the incremental__charges ._. _ Kevin H. Rorke General Manager KHR:tm •J CITY ®F ITHACA TOMPKINS COUNTY ITHACA, NEW YORK 14850 OFFICE OF CITY ATTORNEY MEMO TO: Mr. Anthony Ceracche FROM:. Martin A. Shapiro, City Attorney -- DATE: September 21, 1977 SUBJECT: Cable Franchise - Agreement TELEPHONE: 272-1713 Attached hereto please find the original and one copy of the above entitled agreement to be executed by a representative of American Television and Communications Corporations. Please see that both agreements are executed and thatthe.original is returnedto us. Upon execution by the City a copy will be sent. Thank you for your cooperation. MAS:rb ATTACH. CC: Mr. Joseph Rundle, City Clerk CODE 607 TELEVISION CABLE FRANCHISE Agreement made this day of , 1977, 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 AMERICAN TELEVISION AND COMMUNICATIONS 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 360 South Monroe Street, Denver, Colorado, party of the second part, Grantee. WITNESSETH: That in consideration of the promises and covenants hereinafter made, the parties agree as follows: 1. American Television and Communications Corporation, of 360 South Monroe Street, Denver, Colorado, 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,'modifi- cation, 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. 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 service lines in and over and the right to use, all.pub- lic 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 Com- pany or New York State Electric and Gas Corporation respectively for such uses. -2- 4. Grantee shall be permitted to extend its poles, wires, trans- mission lines, distribution lines and service line, 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. 5. 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 Commission, 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, if required be allowed to proceed to petition the Public Service Commis- sion of the State of New York or other applicable State Commission 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 street, 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 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 -con- trolled property shall be done --by the City at the expense of the Grantee.- Grantee--sha-11 -save- and—keep the--Gity-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 under- taking under the authority of this franchise. 10. a) During the terms 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 practical betterments or improve- ments of said service as improvements in the science of carrying of television signals shall warrant, as well as in the elimination -3 - of radio interference. b) The Grantee shall certify to the City and provide such required documentation to prove that it is in fact meeting the minimal tech- nical standards required by theFederal Communications Commission and the New York State Commission on Cable Television. Said certification and documentation will be provided 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 services of the New York State Commission on Cable Television engineering van to make certi- fication checks within the City. The Grantee agrees to such verifi- cation checks at the discretion of the State Cable Commission (should they be required by the City). c) Service shall be defined to include the providing of cable service to subscriber's homes and buisnesses in the City through the use of cable and necessary instruments. Further service shall include the program services provided by American Television and Communications Corporation such as over -the -air broadcast pictures, pay television programs and local orgination. Additional services should-be"provided only after securing City -approval; -if -lawfully required by the State Cable Commission. It is understood that litigation is pending in the U.S. District Court in the Northern District of New York concerning the State Commission's jurisdiction to regulate auxiliary services. 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, accessories, or convertors within the City of Ithaca, and it is expressly understood that the right to sell such sets or accessories or converters is reserved to any and all legiti- mate dealers. By acceptance of this franchise, the Grantee, his successors and assigns shall be deemed to have accepted the follow- ing conditions: a) Any person, individual or corporation may purchase television sets from any source without any liability to the holder of the fran- chise 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, subject only to the payment of regular installation fee and monthly charges which are hereby established as follows: -4- 1) 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 20 channels ($5.50/month, convertor supplied by subscriber, $7.50/month, converter rented from Grantee). 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. 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 avail- able at the 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 residential installation fee and moves to another residence within the City where the 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 $5.50 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 ap- proved 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. 10) The City specifically reserves the right to conduct 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 contained in this agreement. - 5- 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 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_ prowisions-of-the__Electrical-z Code -of -the- City of -Ithaca. Coaxial cable shall be used to carry the television signal through- out the street installations. Messenger cable shall be used to carry the coaxial cable across the streets. 14. Theholder 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, unless after review of the performance of the Gran- tee, Grantor shall determinethat said performance has been in- adequate, in which case the 'grantor may, upon one (1) month's written notice to the Grantee, terminate this franchise agreement 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 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. -6- 17. 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. 31 hereinbelow. The City may increase the per centum sum in the first sentence of this paragraph as permitted by law or regu- lations of the Federal Communications Commission 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, excepting herefrom any prior liens on the New York State Cable Commission. Failure to make the required report or pay such franchise fees shall be grounds for revocation of this franchise. In regards to the property tax audits, ATC will not apply any tax credit to the Ithaca Franchise fee in a greater proportion than the City of Ithaca subscribers are to the total system. 18. Any continuous and willful violation of any section or provi- sion of this franchise shall be grounds for cancellation of the franchise, after due notice and public hearing. The right is reserved_to _the__Grantaa_to _prosecute _in _any Court_or_otherwis_e,_ _ 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 con- tinue to provide such service throughout the duration of the fran- chise, pursuant to this franchise. 21. Grantee shall construct its cable system using materials of good and durable quality and fall work involved in construction, installation, maintenance, and repair of the cable system shall be performed in a safe, thorough and reliable manner. 22. Local Office. The Grantee shall maintain an office in Tompkins County, New York, which shall be open during all usual. business hours, having a listed telephone, and be so operated that complaints and requests for repairs or adjustments may be received at.•any time when any television signals are being broadcast. The Grantee shall respond to all service calls within 24 hours and correct malfunctions as promptly as possible. For that purpose the Grantee shall maintain a competent staff of employees sufficient to provide adequate and prompt service to its subscribers. The Grantee shall keep a record of all compalints from subscribers identifying the subscriber, his address, date of complaint, nature of complaint, and disposition of -7 - complaint. A major system failture shall be considered to exist when there is a simultaneous interruption in service to more than 50 subscribers. In the event of a major system failure, the Grantee shall respond to notification of such failure within one (1) hour and restore service as promptly as possible. All complaints not resolved by the Grantee within one (1) week after receipt shall be forwarded to the Grantor for review. The Mayor of the City of Ithaca or his designees 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 sub- scriber at the time of intial subscription to the cable system and at intervals hereafter '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 with- out the written consent of the City. 24. Any City or private property damaged or destroyed shall be prompt- ly repaired or replaced by Grantee and restored to serviceable condition. 25. Grantee shall not refuse to hire or employ, nor bar or dis- charge from—emp--oymen-t=,-=-nom discrimi-na-t-e—ag-a-in-s-t—any:-per-son--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 pro- visions contained in the franchise and existing applicable ordinances, such additional regulations as it shall find necessary in the exer- cise 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 material, of the franchise, 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 �f 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 $5,000 in the form of a letter of credit or such undertaking as may be acceptable in form to the City Attorney. 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 com- mits a material breach of any of the terms and conditions herein prescribed. As an alternative, the City Council may unilaterally -8 - 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. 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 of all of the initial security, the Grantee shall within thirty days thereafter post additional security so that the total amount of security posted equals $5,000. 30. Grantee shall file requests for all necessary operating authoriz- ation with the City of Ithaca, Commission on Cable Television, and the Federal Communications Commission within 60 days from the date this amendment is granted. 31. 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, i.e., Home Box Office. b) A maximum charge of $2.00 per month per television receiver may be made for the provision by Grantee of a.converter for the recep- tion of either subscription or pay cable programming or the reception of additional broadcastchannelsthat may be received only with such convertor. 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) _ American_T.elevisi.on and_ -Communications .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. -9- 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. Public access will be carried on channel 13. ATC, within 90 days of completion of the transfer, will diligently pursue with the FCC additional channel allocations for potential access use within the channel 2 through 13 range. 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_part.icular case by American Television and Communications 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 American Television and Communications Corporation. g) The City Cable Commission shall act as the Common Council agent in resolving disputes between the American Television and Communications Corporation and public access users in the -City of Ithaca. h) Video tapes to be shown on the public access channel shall be delivered to the studio afi least two working days in advance of airing. i) Public access studios shall be maintained at the company's headquarters on West State Street and _wi.11. include television cam_ eras, recording and playback equipment, switching equipment and an editing capability. In addition, ATC shall make available two separate porta-pak facilities for use by access users. Instruction on the use of the equipment shall be provided by the company. -10- j) The Tompkins County Public Library shall be wired for public access transmission. k) In addition to any requirements imposed above regarding public access, ATC shall respond positively to reasonable demands of the community for public access, facilities, equipment and cable drops. 1) A11 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 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 informa- tion requested, to the Common Council -annually -as soon thereafter as they may be available. The City may request advice and analysis with regard to said financial documents, etc., from the State Cable Commis- sion and outside accountants if it deems necessary, and receive and consider the results therefrom, before any rate increase hereunder shall be granted. In addition to the above provisions, ATC will submit independently audited financial statements coveringits operation of the Ithaca area cable television system from the time of_the_nostrecent rate increase when it petitions the City for an increase in rates charged to subscribers. 35. The value of this franchise at the end of the term 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 contained herein as if the Grantee had materially breached any term or provision of this franchise agreement. _ 37. The franchise will supply a statement of the capital assets devoted to the cable operation in the City of Ithaca. The provisions of this paragraph shall be invoked only in the event of a rate change request by the franchisee. 38. ATC agrees to supply a written statement to each new customer prior to commencing installation for service to such customer and to all existing customers prior tothe effective date of any rate change. This statement shall contain the following: (1) Statement of rates pertaining to the customer, including hook-up and all other charges that might be made; (2) concise statement of procedures for notifying ATC of difficulties with service, the ATC "trouble" phone number, hours of availability of service, customer rights to service, and Complaint procedures, both within ATC and those available through -11 - the City of Ithaca. 39. Bills will always be paid to the local office or other designated locations in Ithaca and billing and other records of local subscribers will be maintained at that office. The system staff will include people whose primary function is to respond to billing and service problems. The resident Ithaca general manager will have complete authority to resolve all complaints concerning billing and service. 40. Not later than ninety (90) days after the close of the Grantee's fiscal year, ATC shall make a written and oral report to the City Cable Television Commission. This report is to be presented in an open public meeting and shall consist of a statement of the financial status of the Ithaca area cable television system, a review of line_extension work completed, a summary of complaints lodged_against ATC, and such other information as may reasonably be required by the City. IN WITNESS WHEREOF, we have hereunto set our hands and seals the day and year first above written. CI-'TY-OF==ITHACA- - BY: Mayor AMERICAN TELEVISION AND COMMUNICATIONS CORPORATION BY: SECTION 2. EXECUTION 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 American Television and Communications 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. STATE OF NEW YORK ) COUNTY OF TOMPKINS ) SS: CITY OF ITHACA ) On this day of , 1977, 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 instru- ment; 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 1977, before me, the subscriber, personally appeared , who being by me duly sworn, did depose and state that he is the President of American Television and Communications 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 • OFFICE OF MAYOR CITY OF ITHACA 108 EAST GREEN STREET ITHACA. NEW YORK 14850 MEMO TO: All Aldermen Mr. Joseph Rundle, City Clerk Mr. Dana Ulloth, Chairman of the Cable Comm. . FROM: Mayor Edward J. Conley DATE: November 10, 1977 SUBJECT:. Cable TV 2,,,.\s\.8� �. RiEru'EE� `� 9 NOV 14 1077 City C Jerk s3J ITHACA, N. Y.'rqi ONE: 272-1713 CODE 607 Attached hereto please find a copy of letter received from Mr. Kevin H. Rorke, General Tanager of the ATC in regard to a charge change for your information EJC:rb ATTACH. 'EERAEN Division of ATC EiE VISION lrte' 5 1 9 WEST STATE S T R E E T • I T H A C A, NEW YORK 1 4 8 5 0 REC IVEO Nay 3 isTh Honorable Edward Conley, Mayor City of Ithaca 108 E. Green Street Ithaca, New York 14850 October 31, 1977 Dear,Mayor Conley: • In February, 1977 the Common Council of the City of Ithaca approved the request of Ceracche Television Corporation to implement a $2.00 monthly charge forrental of a converter from Ceracche for the purposes of receiving either additional television signal (above channel 13) or Home Box Office. This rate was approved by the New York State Commission on Cable Television in their order issued March 25, 1977. I am writing to inform you and members of the Common Council that this rate approval is transferred to ATC through the franchise transfer consent the Common Council granted to ATC. We intend to implement this charge effective January 1, 1978. We presently do not have any 24 channel cable customers, though we'have.numerous Home Box Office customers. 14e are informing City of Ithaca customers in the November 1, 1977 mailing of Home Box Office Guides. This notification will allow customers to discontinue HBO service should they desire not to incur the incremental charges. Kevin H. Rorke General Manager KHR:tm