Bill 120 — ~Td Session, 17Th Legislature, 21 Elizabeth Ii the Legislative Assembly of Alberta Bill 120 the Agt -Edmonton Telep,Hones Act (Legislature 17, Session 1)

L17 S1 5101

Alberta — Bills

1972 Bill 120 ~td Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 120 The AGT -Edmonton Telep,hones Act THE MINISTER OF' TELEPHONES AND UTILITIES First Reading Second Readinl! ' Third Reading, , ' Printed by the QUEEN'S PRINTER for the Province of ,Mberta, EDMONTON

Bill 120 BILL 120 1972 THE AGT - EDMONTON TELEPHON,ES ACT (Assented to , 1972) HER MAJESTY, by and with the advice and consent of the Legis:}!ative Assemhly of AlbeTta, enacts as follows: 1.

In this Act, (a) "AGT" m'eans The Alberta Government Telephones Commission; (b) "AGT's local exchange business" means the local exchange telephone business and assets associated therewith of AGT as they exist ,immedialtely prior to January 1, 1973 and located within the service area; (c) "City" means the City of Edmonton; (d) "service area" means the areas within the corpor ate boundaries of the City which are being provided with local exchange telephone service by AGT im mediately prior to January 1, 1973. 2.

(1) Subject to the provisions of this Act, upon the payment by the City of the sum of $10,000,000 to AGT on or before December 28, 1972, (

a) the property in AGT's local exchange business shall be deemed to be absolutely itransf'erred to the City effective as of January 1, 1973; (

b) the City is entitled, as of January 1, 1973, to take over and operate AGT's local exchange business; (

c) the City is liable to pay to AGT a fair and reason able 'Compensation for AGT's local exchange busi ness and for the costs reasonably incurred by AGT in conne<;tion with the transfer referred to in clause (a), the evaluation of AGT's local exchange busi ness and any proceedings before an arbitration tribunal under

section 3.

(2) For the purpose of determining the fair and reason able compensation to be paid pursuant to subsection (1), clause (c), assets forming part of AGT's local exchange business shall be evaluated on the basis- of reproduction cost new, less depreciation.

Expla natory Notes General. This Bill will authorize the acquisition by the City of Edmonton of Alberta Govern~e~t Telephones local exchange tele phone business and assets wIthm Edmonton as of December 31, 1972. It also deals with the matters of toll revenues as between the CiItY and ~GT and compensa.tion fo"!-, the use by one of equip ment supplIed by the other: see sectIons 7 and 8. I.

Definitions. 2. The payment of $10,000,000 by the City to AGT by Decem ber 28, 1972 will result in an automatic take-over by the City as of January 1, 1973.

(3) The sum of $10,000,000 paid pursuant to subsection (1) shall be deem'ed to be paid on account of the compen sation payable by the City under subsection (1). 3.

(1) In the event that the City and AGT are unable to agree upon (

a) the compensation payable by the City under

section 2, subsection (1), clause (c), or (

b) whether any particular assets formed part of AGT's local exchange business, the matter shall be determined by an arbitration tribunal established under subsection (2).

(2) Where the Lieutenant Governor in Council is inform ed by AGT or the City that any matter referred to in sub section (1) is to be determined by an arbitration tribunal the Lieutenant Governor in Council ' (

a) shall appoint one or more persons as an arbitration tribunal to determine the matter; (

b) spall, in the absence of agreement between AGT and the City, fix the rate of fees payable to the mem bers of the arbitration tribunal for their services and the rates of remuneration payable to them for their reasonable travelling and living expenses in curred in the course of performing their duties; (

c) may authorize the payment of any other expenses reasonably incurred by the tribunal in the course of p'erforming its duties; (

d) may provide for any matter relating to the proceed ings before the arbitration tribunal and for that pu~pose may make any of the provisions of The Arbitration A.ct applicable to those proceedings.

(3) The Government shall provide such secretarial, cleri cal and other assistance and supplies as the arbitration tri bunal may reasonably require for the purposes of perform ing its duties.

(4) The arbitration tribunal shall proceed to hear and determine any matters mentioned in subseC!tion (1) that are referred to it by the City or AGT and its determination of any such matter is final and binding on both the City and AGT.

(5) The fees and expenses referred to in subsection (2), clauses (

b) and (

c) shall be paid from the General Revenue Fund in the absence of an appropriation therefor and upon payment AGT and the City are each liable to pay to the Government one-half of the amounts so paid. 4.

(1) When the compensation payable by the City und~r

section 2 is either agreed upon by the City and AGT or IS 2

3. Referral of matters to arbitration tribunal. 4. Payment 'of .balance of' compensation. 2

finally determined by the arbitration tribunal pursuant to

section 3, the City shall, subj'ect to subsection (2) and to

section 5, pay the balanee of the compensation to AGT.

(2) Unless the City and AGT otherwise agree, the bal ance of the compensation shall (

a) bear intereSit at the rate of 7lj2 per cent per annum from January 1, 1973, and (

b) be paid in equal payments of blended principal and interest on the first day of January in ea;ch year thereafter, with the last payment being payable on January 1, 1983.

(3) Nothing in this seotion or an agreement under this

section precludes the City from paying all or any part of the balance of the compensation at a time earlier than that required under the agreement or this s'ection, as the case may be. 5.

(1) After the compensation payable by the City under S'ection 2 is either agreed upon by the City and AGT or is finally determined by the arbitration tribunal, the City may give notice in aecordance with subsection (2) that it does not desire to complete the acquisition of AGT's local ex change business and thereupon, (

a) as of the first day of the month next following the month in which the notice is given, the property in the City's local exchange telephone business within the s'ervice area and assets associated therewith shall be deemed to be absolutely transferred to AGT; (

b) AGT is entitled, as of that date, to take over and operate the local exchange telephone business and assets associated therewith referred to in clause (a) ; (

d) AGT shall pay to the City the sum of $10,000,000 on or before that date, and in the event of default shall pay interest on that sum at the rate of 71/2 per cent p,er annum computed from that date; the City is not entiUed to be paid any other com pensation by AGT in respect of the transfer.

(2) The notice under subsection (1) shall be given by delivering it to the office of AGT's general manager with in 90 days after (

a) the date of execution of the agreement, where the compensation payable has been agreed to by the City and AGT, or (

b) the date of the determination of the arbitration tri bunal, where the compensation is determined by that tribunal. 3

s. Election by the City not to complete the acquisition of the business and assets. 3

(3) Where a notice is given by the City under this section, the City is entiUed to all revenues earned by it during the period in which lit operated AGT's local ex change business. 6. Sections 1 to 5 apply notwithstanding anything in The Public Utilities Board Act. 7.

(1) AGT has no power to enter into any agreement or arrangement wiith the Oity whereby any part of AGT's toll revenues from telephone calls originating or terminating in Edmonton may be paid to the City.

(2) The City is not liable to pay to AGT any moneys as a contribution towards the costs of AGT's rural distribution system. 8.

(1) AGT shall, at the request of the City, provide any additional equipment to AGT's system as the City may re quire and the Cilty shall, at the request of AGT, provide any additional equipment to the City's telephone system as AGT may require.

(2) The person requesting the provision of additional equipm'ent pursuant to subse0tion (1) shall pay to the person providing it reasonable compensation for the cost of that equipment, or, where the equipment's us'e is shared, for its proportionate share of the use of that equipment.

(3) In the absence of agreement between the City and AGT as to (

a) the compensation to be paid under subsection (2), or (

b) the compensation to be paid for any additional equipment provided by AGT to the City or by the City to AGT pr[or to the commencem!ent of this Act and in respe0t of which compensation is in dispute, the Public Utilities Board shall, on the application of AGT or the City, determine the compensation, which shall be sufficient to recover the costs of the additional equipment over its estimated useful life plus a fair return on the invest ment, and the manner in which the compensation is to be paid.

(4) Part 1 of The, Public Utilities Board Act, applies to proceedings before the Public Utilities Board under sub section (3), notwithstanding anything in that Act. 9. Sections 7 and 8 apply whether or not there is a trans fer of AGT's local exchange business pursuant to

section 2 and whether or not the City gives a notic'e under

section 5. 10. This Act comes into force on 1he day upon which it is assented to. 4

6. Non-application of The Public Utilities Board Act. 7. Prohibition on toll revenue arrangements and non-liability of City for contributions to the cost of AGT's rural distribution system. 8. Compensation for additional equipment provided by the City or AGT at the request of the other. 9. Sections 2 to 5 regarding the transfer and retransfer do not affect the operation of sections 7 and 8. 4 Title: 1972 (17th, 1st) Bill 120, The A.G.T. - Edmonton Telephones Act

Document details

Collection	Alberta — Bills
Citation	L17 S1 5101
Type	bill
Volume / chapter	L17 S1 5101
Language	en
Format	json
Source	PROVINCIAL
Identifier	3fa6a0bbde029f74562c8f10f6d07e8bba8bf6b5

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