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1983-06-08 PHr A Public Hearing was held by the Town Board of the Town of Wappinger on June 8, 1983, at the Town Hall, Mill Street, Village of Wappingers Falls, Dutchess County, New York, on a Petition of U. S. Cablevision Corporation for an Amendment to a Franchise to Increase Rates of the CATV System Servicing the Town of Wappinger. Supervisor Diehl opened the Hearing at 7:33 P.M. Present: Louis Diehl, Supervisor Nicholas Johnson, Councilman Gerard McCluskey, Councilman Bernice Mills, Councilwoman Frank Versace, Councilman Elaine H. Snowden, Town Clerk The Town Clerk offered for the record the Affidavits of Posting and Publication duly signed and notarized. (These Affidavits are attached hereto and made part thereof of the Minutes of this Hearing). Mrs. Snowden also offered for the record the following letter from Mr. and Mrs. John Villani, 7 Sherwood Heights, Town of Wappinger: May 26, 1983 To: Town Board, Town of Wappinger This letter is for recording our opposition to the request from U. S. Cablevision for a rate increase. 1) Since U. S. Cablevision's inception we have lost commercial channels 3, 6, 8 and 10. These channels have been replaced with programming that allows U. S. Cablevision to sell advertising and derive a substancial income. (Which I and my wife feel is fair) 2) U. S. Cablevision has regularly been given rate increases that far outpace inflation. (about 100%) 3) Picture quality on channels 5, 9, 11 and 13 are poor and have not improved since U. S. Cablevision began. 4) Frequent outages are common, especially during normal business hours. 5) U. S. Cablevision is making an exceptionally good return on investment already. I would appreciate your reading of this letter at the public hearing so that it may be entered into the record. s/ John S. Villani Weslee Villani Mr. Diehl then asked for any other letters or communications that had been received from residents unable to attend the hearing. Mrs. Mills had received a phone call from Mr. Louis DiCocco, 1 Dillon Court, Town of Wappinger, who expressed dissatisfaction with the signal, it was not consistent; he also objected to the program book the company was offering for a $1.00 fee ---feels they should provide this information with the service as they have in the past." Instead of concentrating on expansion, he contended that the company should seek more ways to improve the present service. Mr. Diehl stated that he had been advised by the Attorney to the Town that the Town Board could request a financial statement from U. S. Cablevision and their satellite businesses; it appeared to him that their financial status should be better than previously due to advertising on Channel 10, Home Box and various other services. Mr. Diehl asked for comments from the public. Gladys Ruit spoke on behalf of the Wildwood Manor Apartment Complex and informed the Board that she had a call from Virginia Bennet, Manager of the Apartments, complaining about the poor reception and asked that the wiring be checked. Howard Erichsen, General Manager of U. S. Cablevision Corporation spoke first of the magazine that the company was offering for $1.00. He explained that the HBO program listings would still be provided by the company and this magazine was optional to the residents. He was not knowledgeable of the contents of this new magazine. Discussion followed on the confusion caused by this new publication and,the present one now being received by those subscribing to HBO and other services. Mr. Erichsen told the Board that the company would be glad to provide a financial statement to them in order to justify the request for increased rates for the service. In response to the complaint from Wildwood Manor, Mr. Erichsen said he would check into the poor wiring but he believed that the wiring had been done by the owners and it would be their responsibility if this was true. Mr. Erichsen then gave a history of the cable company in the Town of Wappinger which started in 1966. He spoke of the added services which have cost the company more money; he blamed inflation, parts, materials, electricity, etc. He compared his telephone bill at home with the cost of TV service and showed a chart of the rate increases. He felt they were holding the line because of more customers and other sources of revenue. He pointed out the hours that consumers use TV as compared with the life of a daily news- paper (approximately 20 minutes) and the fact that the paper went up in price far more than the TV service; he pointed out that there hasn't been an increase in five years. They were now requesting an 18.9% increase and another one in 1985 which would bring it up to a total of 31.5% increase in five years. They expanded 6% in twelve months and this expansion only provided 1/3 of the revenue they would normally receive if they were providing service to populated areas. He touched on the cost of extending the system which was constantly going up and the fact that they have to provide for increased revenue to offset this inflation and also provide funds to upgrade the system. Commitments have been made to the Town and in order to fulfill them, they have to have as reasonable rates as possible. The proposed rate, he stated, was reasonable to the subscriber and to the company. Mr. McCluskey argued on the rate comparison made by Mr. Erichsen with telephone rates. Each point raised by Mr. Erichsen was challenged by Mr. McCluskey ---the signal for TV has to be provided whether the customer uses it 10 minutes or six hours, it doemn't cost the company more or less. The sparsely populated areas will be built up eventually and the lines will already be there so the company will reap a lot of -benefits from the growth of the area. Mr. McCluskey pointed out that the extensions were promised by the company during the negotiations for the franchise, now they want more money to fulfill their commitments. Mrs. Linda Pampalone, 53 Helen Drive was the next speaker and was upset with this request for a rate increase because her service was not acceptable at present. Any good rain storm will knock out the television long before the electricity goes out and when you call the company to determine if it is an individual problem or an area problem, in most cases the information is not accurate. Not enough lines available to handle incoming calls on complaints or service. She also felt they should know more about the HBO programs so she could determine if they were proper for her children to view them. Ellen Korz, Helen Drive, complained about the terrible service. When she's stuck in the house in a rainstorm that's when the cable goes off. She felt she was paying enough for the service and couldn't see an increase. Ed Skorynko, Dorett Drive, member of the Wappinger Cable Committee added that the present rate structure should be reviewed. The present proposal is the same as the previous one ---so much for one set, extra for a second and other additional ones. Should the pay services subsidize the basic services? There are over three hundred homes not serviced ---does this increase include these homes. He complained about reception on Channel 2 which he described as a "real mess" and spoke of a recent survey done by the cable company back in February or March which divulged that the number of signals in the Town that were excellent was very small and the number that were unacceptable or marginal was fairly large. If an increase was considered, he continued, there must be an improvement of the quality of the signal. Mr. McCluskey reviewed the percentage of the proposed increase and the number of customers and came up with a round figure of $100,000.00 increase for the year then asked Mr. Erichsen what was the customer getting for that increase. Mrs. Mills questioned Mr. Erichsen on the quality of the service and what they intended to do about it. On the subject of problems, Mr. Erichsen noted that they had been using a company in California, "Opinion Research", an independent research organization to determine where the problems are. They conducted such a survey last year and WO he reported that 17% rated the service excellent, 55% rated it good, 10% rated it fair and 5% rated it poor. Linda Pampalone commented that she was one of the customers questioned in the survey and in many instances the answers to the specific questions were not appropriate. She was told that was all they had when she informed the interviewers of this fact. Mr. Versace commented that all the complaints and answers that he heard at the hearing were repeats of previous hearings and meetings. Each time the representative of the cable company promised better quality, they intended to improve the reception. The legality of the franchise was questionable, he added, since an acceptable bond has not yet been submitted to the Attorney. The questions and complaints being heard at this hearing should have been aired at the negotiations for the franchise and by this time should have been taken care of. He did not feel that U. S. Cablevision has ever fulfilled their obligation to the Town or to the residents since they installed their lines in the Town. Mr. Johnson had questions for Mr. Erichsen ----did the company profit rate go up ---has the net rate gone up ---has the burden rate gone up ---has the operation from the parent company gone up. These items, he continued, should be included in the financial statement submitted to the Town. He then asked how many additional subscribers the company received during the same period of time that they put in the six miles of line. The next item Mr. Johnson discussed was the fact that Mr. Erichsen said the company needed a rate increase for the line extension ---the Town Board was under the impression that these extensions were part of the franchise agreement and a commitment on the part of U. S. Cablevision ---now they tell us they need additional money to continue. If that be the case, he added, he would consider the franchise agreement null and void. In conclusion he pointed out that the company has not honored the agreement to keep the Board informed of their activities and when the lines would be completed. He thought they would get an update every month so they would be informed. Charles Cortellino, Chairman of the Cable TV Committee arrived and was asked if he any comments to add to the hearing. He spoke of the poor signals and a financial statement from the company which had already been discussed. He then mentioned that there were 32 channels available but not to the Town of Wappinger; however these channels were costing the cable company money and this fee was being absorbed by the consumers ---he could care less whether he had 32 channels but he objected to being charged for them even if it was indirectly. Mr. Diehl asked for further comments from the public. No one had any comments to add either for or against the petition from U. S. Cablevision Corp. for an increase in the rates. The following letter was received after the public hearing and submitted to the Town Board at their regular meeting of June 13, 1983. The Town Board directed that this letter be made part of the record of the public hearing on the proposed increased rates for cablevision. Mark J. Liebermann Hopewell Road Box 344 Hughsonville, New York 12537 Town of Wappinger Mill Street Wappingers Falls, New York Gentleman: Due to my work schedule t cannot attend the meeting on June 8, 1983 when U. S. Cablevision is going to ask the Town Board for an increase, however there are a few points the board should get straight with U. S. Cablevision. In March of 1982 they stated that their "sports package" would include USA, ESPN, and MSG. The charge was to be 6.00 per month. For three months I paid the 6.00 and never received the MSG. The rate was then reduced to 3.00 per month to compensate for the MSG. In my bill of May 1983 I am again being charged 6.00 per month for the "sports package" but still no other channel to replace MSG. I have written and called U. S. Cablevision but as always just get shuffled from person to person put on hold etc. There service and attitude to it's subscribers stinks. Also the sports that are televised from Madison Square Garden via USA Network are all of a sudden being blacked out in our area. A spokesman from Colony Comm. told me that they are only supposed to be blacked out within 50 miles from NYC, the New York Metropolitan Area. Why are we being considered this area by U. S. Cablevision. Also our expanded channel reception is lousy, the USA, HBO, constantly rolls and you can't adjust it, the same goes for the MTV. We recently changed converters and told the repair man this. He stated nothing could be done, it was in the lines. This is the reason we have cable tv, to put up with interference, if I wanted this I would install an antenna. We also were told in May 1983 that in June we would receive the Sports Channel, haven't seen it yet has anyone else? I suggest that before there is any increase granted to U. S. Cablevision, they first get their act together. Yours truly, s/ Mark J. Liebermann Mr. McCluskey moved to close the Public Hearing, seconded by Mrs. Mills and unanimously carried. The Public Hearing closed at 8:41 P.M. �L a41,00kat„ Elaine H. Snowden Town Clerk