§ 55-17. Refunds.

(a)

The city may order a cable operator to refund to subscribers that portion of previously paid rates determined by the city to be in excess of the permitted tier charge or above the actual cost of equipment, unless the operator has submitted a cost-of-service showing which justifies the rate charged as reasonable. Before ordering a cable operator to refund previously paid rates to subscribers, the city shall give the operator notice and opportunity to comment. The operator's opportunity to comment upon the proposed refunds may be at any meeting of the city council during the city's period of review of the operator's rates. If the city has extended its review period under section 55-12, and has issued an accounting order under section 55-12(e), then the operator, prior to refunds being ordered, may request an opportunity to appear before the city council to comment upon the proposed refunds.

(b)

An operator's liability for refunds is limited to a one-year period, except that an operator that fails to comply with a valid rate order issued by the city shall be liable for refunds commencing from the effective date of such order until such time as it complies with such order.

(c)

The refund period shall run as follows:

(1)

From the date the operator implements a prospective rate reduction back in time to September 1, 1993, or one (1) year, whichever is shorter.

(2)

From the date the city issues an accounting order pursuant to section 55-12(d) hereof, and ending on the date the operator implements a prospective rate reduction ordered by the city or one (1) year, whichever is shorter.

(d)

The cable operator, in its discretion, may implement a refund in the following manner:

(1)

By returning overcharges to those subscribers who actually paid the overcharges, either through direct payment or as a specifically identified credit to those subscribers' bills; or

(2)

By means of a prospective percentage reduction in the rates for the basic service tier or associated equipment to cover the cumulative overcharge. This shall be reflected as a specifically identified, one-time credit on prospective bills to the class of subscribers that currently subscribe to the cable system.

(e)

Refunds shall include interest computed at applicable rates published by the Internal Revenue Service for tax refunds and additional tax payments.

(Ord. No. 6343, § 1, 10-28-93)