EXPROPRIATION. For the purpose of carrying out the appropriation and the intention Water Commissioner. declared 3. The undertaking of The Esquimalt Water Works Company is Undertaking declared to be expropriated, bound by, and taken over by the said expropriated. Notice of Expropriation, subject only to the due making by the Corporation of the City of Victoria of the payments in and by the said Notice of Expropriation prescribed and provided for, and subject to the provisions of section 10 hereof. terms of 4. The Corporation of the City of Victoria is hereby given and Power to carry out invested with full power and authority, subject to the provisions of expropriation. section 10 hereof, to carry out, perform, and fulfil all and singular all the terms and provisions of the said Notice of Expropriation, and to take over and operate the undertaking of The Esquimalt Water Works Company, and to receive all the revenues, incomes, and profits of the said undertaking, and to pay all the operating and maintenance and extension expenses thereof, and, subject as aforesaid, to have, hold, exercise, and enjoy all and singular all the franchises and all the corporate rights, powers, and privileges of The Esquimalt Water Works Company, and to make payments to The Esquimalt Waterworks Company pursuant to the terms and provisions of the said Notice of Expropriation, and upon the full completion of the making of such payments all and singular the undertaking, franchises, and corporate rights, powers, and privileges aforesaid shall be vested in the Corporation of the City of Victoria absolutely and for ever, but subject to the provisions of section 10 hereof. 5. During the period covered by the making of the payments by Powers of the Corporation of the City of Victoria called for by the said Company limited. Notice of Expropriation, The Esquimalt Water Works Company shall not exercise any other corporate powers than such as are necessary to deal with and dispose of the moneys received from the City of Victoria in the premises, and to proceed for and recover all or any part of such moneys by action in any Court of competent jurisdiction should any default in payment be made by the City of Victoria for any period of default exceeding three calendar months, and for and in aid of such recovery The Esquimalt Water Works Company shall have a vendor's lien. 6. Upon payment of the principal and interest moneys due and Termination of to accrue due to the Royal Trust Company under the securities Company. Conveyances in escrow pending final payments. Assets and powers of Company EXPROPRIATION. mentioned in section 10 hereof, and upon the due making of the final payment by the Corporation of the City of Victoria pursuant to this Act, The Esquimalt Water Works Company shall cease to have existence, subject only to power to divide such final payment among the persons or corporations entitled thereto. 7. The Esquimalt Water Works Company shall execute and deliver to the custodian chosen for the Sinking Fund provided for in the said Notice of Expropriation all such grants and conveyances of its undertaking and assets (except bonds, cash on hand, and accounts receivable up to the first day of August, 1925) as by the Corporation of the City of Victoria may be reasonably required and tendered for execution, and all such grants and conveyances shall be held in escrow pending completion of payments pursuant to the said Notice of Expropriation. 8. Unless and until defaults be made in payment and unless and transferred to City. until The Esquimalt Water Works Company exercises its vendor's lien and subject to the provisions of section 10 hereof, the Corporation of the City of Victoria shall be and shall be deemed to have been the owner of the lands and assets of The Esquimalt Water Works Company and of all the franchises and all the corporate rights, powers, and privileges of The Esquimalt Water Works Company as from the first day of August, 1925, and the benefit of all contracts made by The Esquimalt Water Works Company for the sale or use of water for consumption or for power or for any other use or purpose whatsoever shall be and is hereby vested in the Corporation of the City of Victoria absolutely, and the City of Victoria may carry out, fulfil, and enforce and recover upon every such contract in its own name as though originally named therein as party thereto instead of The Esquimalt Water Works Company. Interpretation of Sinking Fund requirements. 9. (a.) The Trust Sinking Fund provided for in and by clause 2 of the Notice of Expropriation and all moneys forming part of such Sinking Fund shall be invested in and upon such securities lawful for trust funds in the Province of British Columbia, as shall be approved by resolution of the Municipal Council of the Corporation of the City of Victoria, and all earnings and accretions of income shall be added to the corpus and invested as part thereof until the sum at credit of the Sinking Fund amounts to eight hundred and twenty-five thousand dollars, it being the true intent and meaning that all interim earnings and profits on moneys standing to the credit of the Sinking Fund shall be added to, and shorten completion of, the accumulation of the agreed sum of eight hundred and twenty-five thousand dollars. In the event of the payment into the Sinking Fund at any time of a sum sufficient to bring the amount EXPROPRIATION. paid into the Sinking Fund including interest earned up to the agreed sum of eight hundred and twenty-five thousand dollars, the undertaking of The Esquimalt Water Works Company shall have been fully paid for, subject to the fulfilment of the provisions of section 6 of this Act, and in computing the amount at the credit of the Sinking Fund at any time the valuation to be placed on any securities held in the said fund shall be the market price at that time. In the event of payment of the said agreed sum to The Esquimalt Water Works Company prior to the liquidation of the said mortgage, the payments referred to in clause numbered 1 of the said Notice of Expropriation shall cease. to carry out terms (b.) The Corporation of the City of Victoria and The Esquimalt Parties empowered Water Works Company are hereby given and invested with full of expropriation. powers and authorities to make and carry out all such agreements as may be necessary to give full force and effect to and secure full performance of all and singular the terms and provisions of the said Notice of Expropriation, subject to every statutory obligation, provision, and requirement as to a supply of water to the Town of Esquimalt and to the peninsula bounded by the Victoria Arm and Harbour, Straits of Fuca, and Esquimalt Harbour, and without prejudice thereto. 10. Nothing in this Act or in the said Notice of Expropriation contained shall release The Esquimalt Water Works Company from the payment of the principal, interest, and other moneys due and to accrue due to The Royal Trust Company, its successors or assigns, under the following indentures and agreements, or in any manner prejudice or affect the rights, remedies, and powers of The Royal Trust Company, its successors or assigns thereunder or in respect thereof, or against The Esquimalt Water Works Company, all of which rights, remedies, and powers are hereby expressly reserved:(a.) Indenture of Mortgage dated the twenty-third day of June, 1909, between The Esquimalt Water Works Company of the one part and the late James Dunsmuir of the other part, to secure the sum of five hundred and fifty thousand dollars and interest: (b.) Indenture by way of further charge dated the twenty-third day of August, 1910, between The Esquimalt Water Works Company of the one part and the late James Dunsmuir of the other part, to secure the sum of seventy-five thousand dollars and interest: (c.) Indenture dated the seventh day of July, 1925, between The Esquimalt Water Works Company of the one part and The Royal Trust Company of the other part, securing the annual sums therein mentioned: (d.) Agreement dated the tenth day of June, 1925, between The Esquimalt Water Works Company of the one part and Powers of Royal Trust Company reserved. City to be subject to certain agreements. Optional method of payments. EXPROPRIATION. Alston Fairservice and Edward Francis Gierin of the other part: (e.) Indenture dated the tenth day of June, 1925, between The Esquimalt Water Works Company of the first part, Alston Fairservice and Edwin Francis Gierin of the second part, and The Royal Trust Company of the third part. 11. The Corporation of the City of Victoria or any other person, corporation, or body politic which shall take over the land and assets of The Esquimalt Water Works Company shall be bound by and subject to the following agreements:— (a.) A certain agreement entered into by the said The Esquimalt Water Works Company on the one part and the British Columbia Electric Railway Company, Limited, of the other part, and dated the thirtieth day of June, 1915: (b.) A certain agreement entered into by the said The Esquimalt Water Works Company of the one part and the late James Dunsmuir of the other part, and dated the twentythird day of June, 1909. 12. Notwithstanding anything in this Act contained, and notwithstanding the terms of the said Notice of Expropriation, instead of providing for the creation of, or payments into, a Trust Sinking Fund referred to in this Act, the Corporation of the City of Victoria shall have the option of paying off the said agreed principal sum of eight hundred and twenty-five thousand dollars to The Esquimalt Water Works Company in the following manner, namely: The sum of forty thousand dollars on the first day of August in Provided, however, that the said Corporation shall have the right under this section to pay off at any time the unpaid balance of the said principal sum with interest thereon aforesaid to date of payment, and upon such payment off the undertaking of The Esquimalt EXPROPRIATION. Water Works Company shall have been fully paid for, subject to the fulfilment of the provisions of section 6 of this Act: Provided further that if the said Corporation shall exercise the option granted by this section the payments made thereunder shall be deemed to be and to have been made according to the tenor and effect of the said Notice of Expropriation. 13. The Corporation of the City of Victoria shall be empowered Price of water. and shall supply water to any adjoining municipality owning its own distribution system, or to any duly constituted water authority having powers to distribute water by retail, within North Saanich or elsewhere within the area set out in section 6 of the "Victoria Water Works Act, 1873," in so far as the water-pressure will allow, if requested by the Municipal Council of such municipality or by such authority, and shall be entitled to demand and receive from any such municipality or authority, and every such municipality or authority making such request shall pay to the said Corporation per thousand gallons for all water delivered in bulk at some point on the municipal boundary of the City of Victoria or at such other point on the main pipe-line conveying water to the City of Victoria as may be most convenient and advantageous, a sum not exceeding five per cent. in excess of gross cost. Notwithstanding anything in this Act contained, the Corporation of the City of Victoria shall be empowered to make special water rates at less than gross cost to any municipality or said water authority or any corporation or person for agricultural or industrial purposes. In the event of any dispute with any adjoining municipality or water authority aforesaid as to the gross cost of water, the same shall be submitted to arbitration, such arbitration to be governed by the provisions of the "Arbitration Act," and for the purposes of arriving at the gross cost of water the arbitrators shall allow cost of collection, storage, and carriage to the point of delivery aforesaid, maintenance, interest, sinking fund, and serial debenture requirements, and reasonable amount for depreciation and for a contingencies fund. The price so fixed by arbitration or agreed upon between the parties shall be binding and have effect for the period of three years from the date of such arbitration or agreement. The arbitration provisions of this section shall not apply to the sale of water to any private consumer. to Township of 14. (a.) During the time that the distribution system in the Provisions relating municipal limits of the Township of Esquimalt is owned by the Esquimalt. City of Victoria, the rate charged for domestic or municipal purposes shall be the same as may be charged or rated in the City of |