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HomeMy WebLinkAboutCeracche Television Corp Information a Via' TELE VISION" CORP09 TION . °e *AU�... . v� L 5 1 9 WEST STATE STREET • I T H A C A . NEW YORK 1 4 8 5 O February 27, 1974 Common Council City of Ithaca Ithaca, New York 14850 Gentlemen: This is to inform you concerning Ceracche Television Corp. Is recent commencement of subscription or pay cable programming on its cable television system serving this community. This service makes available to cable sub- scribers who desire to receive it programming such as first-run feature films and live sports events from Madison Square Garden in New York City. This service is provided by Home Box Office, a company which specializes in pro- viding subscription television programming to cable systems. A copy of a recent Home Box Office program schedule is attached hereto. An additional charge of $6. 00 a month ($12. 00 for commercial users) is made for this programming to those subscribers who wish to receive it. The service is, of course, entirely optional. It should further be noted that the charge of $6. 00 per month is the lowest rate permitted by the program supplier, Home Box Office. Moreover, the community will receive 1% of the proceeds from this service as part of the franchise fee prescribed in our franchise. The New York State Commission on Cable Television has ruled that rates for this service should ordinarily be specified in the cable television franchise. However, it has permitted cable operators to commence this service pending the required amendments of the franchise, provided the cable operator notified the Commission of its intention by October 29, 1973. Ceracche Television Corp. complied with this requirement and is now providing service on that basis. After the close of our fiscal year on April 30, we will submit a request for a franchise amendment which will include authorization for the subscription television rates. I would be glad to answer any further questions you may have con- cerning this service. Sincerely, � - ' Anthony Cerache President BOND, SCHor.xp-cx & IKI_vG CHAk CS A.SCHOEN ECK,JR. HOWARD M.CANNON MUBE'At C:37RA4 TON ATTORNEYS AT "WW WILLIAM O.JOHNSON WILt1AM I. ►ITZ PATRICK 1373-ISSB TRACY N.FC RGUSON ONE LINCOLN CENTER O[OROE M.SON D,JR. LYLC W.HORNBECK 1370 K CA RLC CHESTER M. JR.R, SYRACUSE/ N. Y. 13202 ERLE CVA NSN3,,JR, / FRA MCI$E.MALONEY LLOYD G.rIX JOHN C.KINNEY PHON[(315)422-0121 JAMES O•►1TZ►ATRICK FRANCIS O.PRICC -- - ROBCRT J.HUNT JAMES E.WILS[R ROBERT C.PALTZ ANION H.ZAMM ALBANY OFFICE JOHN W.MORNSECK HENRY It M.CARTMY 111 WASHINGTON AVENUE STEPHCN L.JONNSON PAYMONO W.MUi1RAY,JR. ALBANY, N.Y. 12210 JAMES C.MACKIN JOSEGE J. SH TTU K PHONE (SIG) 462-7421 STCPMEN M.COME" GEORGE C.$MATTOCK OAVIO M.OARBCR LCSLIE M.OCMING DAVID N.SEXTON JOHN J.OCE TMOMAS S.[VAN$ JON"A.BCACH M. AN N[B[R116,JR. CHARt[S T.S[EGMING,Jp. THOMAS J.GROOM$ WILLIAM P. BVRROWS November 1 1974 RICHARD L.$MITM JOHN M.FRCYCR / CARL E.M.WORBOYS ROBERT W.KOPP GARY R.GERMAIN ARTHUR C.BONOIOVANNI COWARD A.dHARA 111 JOHNS. FERGUSON JAMES P. MCDONALD L CHARES T.MAJOR,JR. fTEN J.VOLLMER RORCgT [IM C.MOSES 3.PAUL BATTAGLIA WILLIAM L.BCQG^N GARY M.CLARK A NTMONY R.PITTAPELLI JAMES E.WALSH 111 FRANCIS C.MALONCY,JR, WALLACE J.MCDONALO Mr. Anthony Ceracche President Ceracche Television Corporation r-r::: 519 West State Street r-:=t Ithaca, New York 14850 _.�(Y) Re: Account No. 450-029441 O Dear Mr. Ceracche: c Enclosed is a copy of a bill dated October 11, 1974 in the amount of $5.00 which I recently received. I disclaim any obligation to pay this amount for reasons which I shall set forth below. I advise you that in accordance with General Business Law, Article 34 , I am providing you information to enable you to identify the amount and transaction shown on the statement which I believe, in good faith, to be a billing error and the facts providing the basis for my belief that the statement is an error. I shall expect that you will take the action required by Article 34 in order that this matter may be settled. I further advise you that a copy of this letter is being forwarded to the Commission on Cable Television pursuant to Title 9 of the New York Code of Rules and Regulations, Section 590. 5. Be further advised that if you fail to comply with the requirements of General Business Law, Section 703 , I shall pursue my remedy as provided by Section 707 of that Law, which allows a recovery for actual damages plus twice the amount of the billing error shown on the statement, together with reasonable attorney's fees necessary for the prosecution of the action. During the period of 7 years in which my family a and I lived in Ithaca, we were subscribers to your cable television service. During all of that time our payments were made timely as I'm sure your records will indicate. 'r Mr. Anthony Ceracche -2- November 1, 1974 On approximately the 15th of July, 1974, my wife telephoned your business office and advised them that since we were moving to Syracuse in August we wished to have our service disconnected as of the first of August, 1974. She was assured that this would be done. On the first of August no one from your organization came to disconnect our cable service. A day or two later my wife again telephoned your business office and advised them that our service had not been disconnected. She was informed that your service personnel were busy installing new customer services and that someone would disconnect our service as soon as possible. At tis time my wife said that we did not wish to have the service continued in August and that we would not pay any amount which might be claimed due for service in August. She received further assurance that -we would not be billed for August service. Finally, on approximately the 13th of August, a service technician came and disconnected our cable. We moved to Syracuse on the 15th of August. Early in September a bill was forwarded to our new address indicating that we had an account due in the amount of $10. 79. I wrote a letter at this time stating the facts as outlined above and indicating that we did not have an obligation to pay this amount. I received no response to O this letter. Subsequently, a second bill was received which had been mailed to our original Ithaca address indicating that we owed the amount of $10.79 . On September 25, 1974 my wife was in Ithaca and at this time, she called your office and advised them of the circumstances surrounding our account. Personnel in your business office advised my wife that $5.79 of the $10.79 was for service which we received in February when we became subscribers to the home box office service. This amount had not been billed to us before and accordingly, my wife sent a check for the amount of $5.79.• She was assured at this time that our account would be closed and the matter settled. She also advised your personnel of our address change but your clerk would not trouble herself to even take down our new address, saying that it was un- necessary. I had hoped that the matter would be settled on the 25th of September and was extremely annoyed to receive a further statement dated the 11th of October. I am very aware of the importance of maintaining a good credit rating and consequently, have been conscientious in meeting my obliga- tions as they come due. However, I will not be bullied into paying specious charges under any circumstances. I await your response in this matter. Sincerely, BOND, SCHOENECK & RING By: Paul M. Sansoucy cc: Commission on Calble Television �i q '7 C ITY O F ITHACA TOMPKINS COUNTY ITHAOA, NEW YORK 14850 orrice or TELEPHONE:272-1713 THE MAYOR CODE 607 MEMO TO: Joseph Rundle, City Clerk Martin Shapiro, Attorney for the City FROM: Mayor E. J. Conley DATE: December 16, 1974 SUBJECT: Complaint - Ceracche Television Co. Enclosed please find a copy of a complaint received by the New York State Commission on Cable Television in regard to Ceracche Television Co. EJC:rb ENC. NEW YORK STATE COMMISSIO NF&C� - DEC 16 'i:i4 ON CABLE TELEVISION JERRY A. DAN21G ELI WAGER VICE-CHAIRMAN COMMISSIONER A. E. SMITH BLDG. ALBANY. N.Y. 12225 MICHAEL H. PRENDERGAST EDWARD J. WEGMAN (518) 474-4582 COMMISSIONER COMMISSIONER ROBERT F. KELLY 'C. LYNN WICKWIRE JOEL YOHALEM CHAIRMAN- EXECUTIVE DIRECTOR COUNSEL December 11, 1974 Hon. Edward J. Conley, Mayor Ithaca City Hall Ithaca, New York 14850 Dear Mayor Conley: i Enclosed is a copy of a complaint we received from a constituent of yours. We received it on December 11, 1974 and forwarded a copy to Cerrache Television Co. asking for a reply within 10 days. The enclosed is for your information since this company is operating within your jurisdiction. If we can ever be of any assistance to you, do not hesitate to contact us. Sincerely yours, Xvjo J?eld . Perkins FInvestigator JAP:kmc enc. k 451 Fulton Avenue Hempstead., Fiery ,,rork 11550 A 2 December 5, 19 Mr, J. Toch, Solicitor General, C�I��nv�!,, Office of the Attorney General �� _ : Justice building 4 Albany, New York 1222 Dear Mr. Toch t My family is living in Hempstead temporarily. Our permanent residence is in Ithaca, Nevi York. Prior to leaving Ithaca in June we informed the local television cable operator (Cerrache Television. Corn., 519 West State Street, Ithaca,. N.Y. ) to suspend. our cable service temporarily. Cerrache agreed to do this and. told us that the fee for suspended service would be a little over five dollars for a five month perioc. (Th,^ r•3gular fee for cable service is $5.50 per month. ) During August we received a "Past Due" bill for $2.90 dated August 16 from Cerrache. It had been forwarded fro-: Ithaca. to our summer address. (That bill and subsequent monthly bills are enclosed as zerox copies. ) The amount was confusing since it bore no relationship to the regular bill or to the suspended service fee. Also, I could not under- stand why a "Past Due" bill had been sent since we had never received an initial bill . i I wrote Cerrache on August 26 requesting an explanation of the August 16 bill. (A zerox cop;,r of that letter is enclosed but because of its faintness T have typed a copy of it also. ) ' I received no reply to that letter. A dr?itional bills were re- ceived Ouring subsequent months. These bills contained var- ious threats and statements of action taken. On October 20th I again wrote Cerrache, explaining- the situation, and requesting-- an explanation. (A zerox copy of that letter is enclosed. ) I have not received a response to that letter either. I would appreciate your advice and perhaps your interven- tion toward the end that: 1. Our TV cable service be re-instituted *,,Then we request ' at no charge other than that originally stated in June. I 2, We receive an explanation of the charge and reasons t for sending a bila_ marked "Past Due. " s 34 Any record of delay in payment that may have :een m0ie l or placed at any credit bureau. be xpunged. ours truly E OT'T 6',T' Tule r CITY O F ITHACA TOMPKINS COUNTY ITHACA, NEW YORK 14850 orrice or TELEPHONE:272-1713 THE MAYOR CODE 607 MEMO TO: Martin A. Shapiro Joseph Rundle FROM: Mayor Edward J. Conley DATE: November 12, 1974 SUBJECT: New York State Commission on Cable Television Enclosed is a copy of a complaint re: Ceracche Television Corp. for your information forwarded from the New York State Commission on Cable Television. EJC:rb ENC. . NEW YORK STATE COMMISSION IR s • ON CABLE TELEVISION JERRY A. DANZIG ELI WAGER VICE-CHAIRMAN COMMISSIONER A. E. SMITH BLDG. ALBANY. N.Y. t2225 MICHAEL H. PRENDERGAST EDWARD J. WEGMAN (5118) 474.4002 COMMISSIONER COMMISSIONER ROBERT'. KELLY C. LYNN WICKWIRE JOEL YOHALEM EXECUTIVE DIRECTOR COUNSEL CHAIRMAN November 63, 1974 Hon. Edward J. Conley, Mayor Ithaca City Hall Ithaca, New York Dear Mr. Conley: Enclosed is a copy of a complaint we received from a constituent of yours. We received it on November 4, 1974 and forwarded a copy to Cerrache Television Corp. asking for a reply within 10 days. The enclosed is for your information since this company is operating within your jurisdiction. If we can ever be of any assistance to you, do not hesitate to contact us. z Sincerely yours, 4elJn A. Per cansd Investigator JAP:kmc enc. Mr. Rundle 126 Farm St. Ithaca, New York 14850 October 16, 1974 Mayor Ed Conley City Hall Ithaca, New York 14850 RECE�VE� OCT 9 1974 Dear Sirs Enclosed is a letter I have just sent to Cerrache Television regarding their cable service. Since I understand that cable TV is a city-licensed operation, I thought that a copy of this complaint should be forwarded to you in order that you will send it on to the appropriate branch of city government. I appreciate whatever help you can give in this matter, Yours, L aures H. Averill #3 i qq f i 7 r 126 Farm St. Ithaca, New York 14850 October 16, 1974 Cerrache Television Corp. P.O. Box 519 Ithaca, New York 14850 Dear Sir: This marks the third occasion I have asked you to please cancel my cable service to my former residence at 425 North Cayuga St., second floor rear apartment. Previously I notified you by phone that the television would be disconnected on August 1, J 1974• I assumed then from what I was told that everything would be taken care of. I was surprised and disappointed to receive a bill for $9.00 last month for service which I had cancelled, and called again to ask what had happened. I was told that I still had to pay the bill but that my service would be cancelled. I refused to pay- but assumed, overgenerously as it appears, that the account would be closed. Today I have received another bill, this time for $13.50, and therefore I am taking this opportunity to notify you in writing that I am not paying for any services which your computer thinks I have received since August 1, 1974. Clear? Yours, t t James H. Averill r cc:Help " Mayor Conley i WIGGINS, TSAPIS, HOLMBERG AND GERSH ATTORNEYS AND COUNSELORS AT LAW 308 NORTH TIOGA STREET WALTER J.WIGGINS ITHACA, N. Y. 14850 TELEPHONE STANLEY TSAPIS LAURA H. HOLMBERG (AREA CODE 6071 DAVID B.GERSH ITHACA AR 3-2040 DIRK A. GALBRAITH WILLIAM S.SELDIN November 6 , 1974 Charter & Ordinance Committee of the Common Council City of Ithaca RE: CERACCHE TELEVISION CORPORATION Section 11 (b) (9) of the Television Cable Franchise Agreement made between the City of Ithaca and Ceracche Television Corporation on April 20, 1966 , provides as follows: "Any increase of the maximum charges must first be approved by the Common Council. Such approval shall not be unreasonably withheld. " It is pursuant to this provision that the present application for a rate increase has been submitted. Ceracche Television Corporation hereby respectfully requests that the City of Ithaca approve this application to increase the rates for cable television service in the City of Ithaca, as follows : Monthly Service Charge Present Proposed First Installation $ 4 .50 $ 5.50 Each Additional Installation .50 1.00 During the course of the past three years, the cost of labor, equipment and supplies has steadily increased. The Consumer Price Index Department has reported that between 1971, when the Ceracche Television Corporation last made application for a rate increase , and the present time, the Consumer Price Index has risen by 24% as follows : 1971 122 .2 1972 126.2 1973 135.5 1974 151.9 -2- The within application requests a price increase of 22%. The capital and operational expenses of the Ceracche Television Corporation have increased proportionately to the 24% increase in the cost of living experienced by the nation as a whole. In order for the company to maintain television cable service of high quality in both the programming and technical distribution of television signals, it is essential that the requested rate increase be approved. Every business in the private sector of our community has been required to increase its prices in a manner corresponding to its increase in expenses . By reason of the fact that the Ceracche Television Corporation is not permitted to increase its rate without prior approval of both the City of Ithaca and the State of New York, it has been required to absorb these escalating costs , especially during the course of the past 18 months. As will be demonstrated, the rates presently being charged are substantially lower than rates for similar service now being authorized in other communities in the State of New York. This fact is significant since it demonstrates the reasonable value of cable television service generally under present conditions. It should be noted in this respect that the New York State Commission on Cable Television is directed by law in those instances where it has jurisdiction to establish cable television rates to consider primarily the rates "fixed in comparable franchises requiring comparable service for comparable service areas. " See Section 825 (3) (d) and (e) of the Executive Law. Ordinarily, the State Commission's jurisdiction over cable television rates is limited to approving rates first established by local municipalities. See Sections 825 and 822 of the Executive Law. There is attached hereto as Exhibit No. 1, a summary of rate increases granted by the respective municipalities and subsequently approved by the State Commission since that Commission acquired jurisdiction in this area. As will be seen from this exhibit, the vast majority of these increases have involved monthly service charges in the neighborhood of $6 .00 for basic service and $1. 50 for additional outlets . Generally, the increases approved have amounted to approximately $1. 00 higher than the prior rates. -3- The montRy service charge for basic service in Cortland $ 5.50 Binghamton $ 6 .00 Newark Valley $ 6. 00 Vestal/Endicott $ 5.50 Elmira $ 5.75 Seneca Falls $ 5. 95 The foregoing facts and an analysis of the schedule of rates described in the annexed exhibit dramatically demonstrate that the rate increase now being sought by the Ceracche Television Corporation is consistent with the rates presently authorized for cable service in the State of New York. Indeed, rates in the City of Ithaca will remain somewhat lower than the average increases being approved elsewhere. Commencing in 1972 , the amount of regulation to which the cable television industry is subject has increased substantially. In March, 1972 , comprehensive regulations regarding cable television operations were issued by the Federal Communications Commission (FCC) . On January 1, 1973, Article 28 of the Executive Law became effective. This established a New York State Commission on Cable Television with jurisdiction to regulate various aspects of the cable television industry. The regulatory requirements imposed by these agencies will result in increased costs in the operation of Ceracche Television Corporation 's cable system. (a) Technical Standards. Section 76.601 et seq. of the Rules of the FCC and Part 596 of the Rules of the State Commission impose requirements regarding the technical level of cable service provided and performance testing. Some of these regulations are presently applicable to Ceracche Television Corporation' s operations and others will become applicable over a period of time ending on July 1, 1978. The regulations imposed by the State Commission are substantially more stringent than those imposed by the FCC. Ceracche Television Corporation has generally provided a service that is technically adequate under applicable regulations. However, substantial cost will be involved in assuring that these requirements are fully met. Moreover, a major portion of the increased costs associated with this regulation results from stringent requirements regarding performance testing, including annual performance tests and monthly tests at a number of monitor points on the systems . -4- (b) Trouble Call Processing. Section 596 .8 of the State Commission establishes rules regarding the processing of subscriber trouble calls . While the actual requirements regarding the processing of trouble calls do not substantially differ from the service Ceracche Television Corporation has always provided in this respect, this rule imposes substantial record keeping requirements that will entail a significant increase in cost with respect to the processing of trouble calls. (c) State Commission' Fee. Pursuant to Section 817 of the Executive Law, the State Commission has twice imposed a fee upon Ceracche Television Corporation to defray the costs of that Commission. These fees have amounted to 1.25 percent of 1972 gross receipts and 1 percent of 1973 gross receipts. It is reasonably anticipated that the State Commission will hereafter seek to impose a fee of at least 1 percent of Ceracche Television Corporation's gross receipts for the preceding year. Ceracche Television Corporation has presently commenced a program of reconstructing much of its system so that it will be capable of providing cable television service in accordance with the most recent developments in the state of the art. Thus, Ceracche Television Corporation now operates a system with 12 channel capacity. The system as rebuilt will have the capacity for 20 channels and two-way return communications. This will make possible in the future the development of many auxiliary cable services supplementing those already being provided. Ceracche Television Corporation has also expended great efforts in developing its local program origination which now provides the only local television news program specifically designed for Tompkins County residents in addition to other features of local interest and entertainment programming. Recently, Ceracche Television Corporation constructed a new studio facility for the production of locally originated program- ming which includes the following equipment: 2 color cameras, 2 black and white cameras , 1 remote black and white camera, 8 video tape machines , a color film chain and other related equipment. Ceracche Television Corporation has a staff of 7 full-time employees and as many as 6 part-time employees engaged in local program origination. If Ceracche Television Corporation is unable to meet rising costs in other areas by means of the proposed rate increase, its continuing efforts to provide quality cable service such as discussed above might be adversely affected. -5- It should be noted, for instance, that only about 50 percent of the costs of local origination are met by revenue from sources such as advertising associated with the local origination. It is thus evident that this type of service must be supported by increasing revenues from other aspects of Ceracche Television Corporation's operations. Attached hereto is an exhibit prepared in conjunction with accountants, Maxfield, Randolph & Carpenter which demonstrates the company's increased cost of doing business It is evident from the foregoing facts that the rate increase now proposed is reasonable and is justified by the rising costs of cable television operation and by the need for additional funds to support Ceracche Television Corporation's plan for system improvement. Respectfully submitted CERACCHE TELEVISION CORPORATION BY i 2 .(Attachment) ESTIMATED NAME OF FRANCHISE NUMBER OF PERCENTAGE OF or AREA SERVED SUBSCRIBERS PENETRATION 1. City of Ithaca 7 022 95% 2. Town of Ithaca 2 760 60% 3. Town of Dryden 1 154 40% i 4. Town of Newfield 632 65% 5. Town of Lansing 1 865 95% 6. Town of Ullysses 77 6% 7. Town of Caroline 370 50% 8. Town of Danby - N 132 20% 9. Village of Cayuga Heights 1 040 95% 10. Village of Candor 256 21% 11. Town of Candor - N 171 64% E' 12. Town of Newark Valley[- N 105 11% 13. Village of Newark Valley 317 95% E i I r ' • 3 3. At any time in the reporting period did you own or control 20% or more of any other canpany , or did another company own or control 20% or more of your company? X Yes No If yes , list the companies below. A. Name of Company Percentage of Ownership_ Or Control Held By You In Another Company 1. Ceracche & Co. , Inc. 88% 2. Westview Heights, Inc. 100% 4. I 5 ` 7. $ s 9. 10. B . Name of Company Percentage of Ocanersh i z Not Applicable or Control Held By Another Company In You 1. 2. 3. ' l 4. 5. 6 . s � V ' 4 7. 8 . 9. 10. CERTIFICATION I certify that I have examined this report and that all statements of fact contained therein are true , com- plete, and correct to t he .best of my knowledge , informa- tion, and belief and that nothing material has occurred that wouldlrequire explanation that has not been explained . President Signature Title AnthonyCeracche July 31, 1975 Printed Name of Signer Date Signed r I x