After Gov. Charles W. Turnbull sent the Legislature proposed amendments to existing law to allow the V.I. Telephone Corporation to deduct administrative costs for an emergency phone service surcharge, Vitelco's parent company, Innovative Communication Corporation, said Vitelco would absorb the costs instead.
Turnbull’s proposal would have allowed Vitelco to deduct $10,500 in start-up costs to begin 911 operating services. Once the service was on line, Vitelco would have been able to deduct $1,000 a month to administer the collection and disbursement of the $1 surcharge on customers' bills.
After news of the governor's action on Wednesday, however, ICC announced that Vitelco would absorb all costs associated with the collection of the surcharge.
Samuel Ebbesen, Vitelco president and CEO, said he had "failed to consult with ICC" during his discussions with the administration regarding the proposed legislative changes. He added that Vitelco was not initially consulted during the drafting of the original bill establishing the surcharge, making it "difficult to execute the statute and meet the deadline originally mandated in the bill."
Turnbull had also proposed to change the effective date of the surcharge from Jan. 1 to March 1 of this year.
The law, which passed the Legislature last November, imposes a surcharge of $1 per customer per month to improve emergency medical services, fire services and 911 emergency equipment, according to a Government House release.
Ebbesen said Vitelco was "simply the collection agency for the government."
"Vitelco has always worked to assist the government to the best of our abilities, and we will continue to do so," he said.
