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