City Approves Cable Pact With Refunds
An agreement approved unanimously by the City Council will give refunds to each subscriber of TCI Cablevision of the east San Fernando Valley.
The city’s Information Technology Agency negotiated an agreement with the cable firm that will provide customers with refunds of $5.38 apiece while setting the basic service rate at $9.97.
Officials said the refund stems from the company overcharging its 90,315 customers in communities including Van Nuys, North Hollywood, Pacoima, Sun Valley and Panorama City for equipment upgrades and installation from July 14, 1994, through May 31, 1996.
The ordinance passed Tuesday by the council maintains that the basic rate is a 41-cent savings off the legal maximum of $10.38.
It also specifies that TCI cannot recover the 41 cents in any future requests for city-approved rate increases.
Officials said the settlement reflects an effort by the city to mitigate concerns that last year’s federal Telecommunications Act will not achieve its intended effect of lowering cable and telephone rates.
A group of accountants and consultants works with Information Technology Agency representatives to monitor the financial dealings of local cable companies and, in some cases, award refunds.
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