Off-site levy throws Aspen View for a loop

The Aspen View Public School Division was supposed to open its tenders today, April 20, for its newest secondary school development project.

But at the eleventh hour, officials from the school division were thrown for a loop by news of a nearly $400,000 off-site levy from the Town of Athabasca, forcing them to pushing back the opening of tenders for the project.

School division representatives addressed the issue at the town's council meeting last night, noting that they only found out about the levy when a bidder informed their school project manager on Monday evening after speaking to someone at the town.

ìAspen View Public Schools was contacted Ö (on) April 18, by our project manager who advised us that the firms who were bidding on the new secondary school for Athabasca, in the course of due diligence, had been contacting the town office here to find out some information, î said board chair Dennis MacNeil. ìThey had been informed by the Town of Athabasca that approximately $397,000 in off-site levies were going to be payable. î

A memorandum of understanding between the town, Athabasca County, the Multiplex society, Aspen View and Athabasca University - signed Feb. 26, 2014 - states that while parties ìwill not be specifically bound by this agreement, and will be subject to entering into a formal agreement, î that they ìhave resolved to act in good faith to implement the necessary agreements regarding land. î

There is a note in the memorandum that also states that the town, county, Multiplex society and school division will ìJointly investigate and address the site servicing costs with all partners including AU. î

After an in-camera session at their meeting October 21, 2014, town council passed a motion that states a serviced site should be provided for the replacement school based on a report from Oct. 6 of that year, as well as ìAspen View's estimated costs for servicing the site at a cost of up to $300,000.00, as per their letter of October 15, 2014. î Other motions related to the school project were also passed at that same meeting.

In an interview after the meeting, Aspen View communications director Ross Hunter said this off-site service levy was never mentioned in any of the previous discussions with the town.

ìIn light of the fact that Aspen View Public Schools engaged in this extensive consultation with Athabasca regarding the services, I would refer you to the letter of Oct. 15, 2014, in which a serviced site new school project was requested, î MacNeil said. ìAthabasca town council decided the motion - it is motion 14:495 made on Oct. 21st - in respect to that request. The subsequent letter received from the Town of Athabasca confirms the town's proof of that. î

ìThe provincial government does not fund any of that special levy and as such it puts us on the hook for $397,000, î MacNeil said. ìWe're not sure what that $397,000 is even for. î

Councillors were faced with the decision to either amend the off-site bylaw, using the powers of the Municipal Government Agreement to waive the fee, or force the school board to pay it. The latter decision could be catastrophic for the new school project, MacNeil indicated.

ìIf, in fact, you decide to go ahead and post this $397,000 levy upon us, we would be in essence going back to square one, going back to the architect and looking at how we could cut $397,000 from this project, î MacNeil said. ìThat would mean either cutting teachers, dropping the art room, dropping the music room from the schematics. Whatever happens, I think we are not in a position to put anything towards site expenses. î

Coun. Tim Verhaeghe put forward a motion waive the off-site levy bylaw in its entirety, a motion that was defeated with a tie.

Councillors Verhaeghe, Steve Schafer and Shelly Gurba voted in favour of the motion, while Councillors Joanne Peckham, Nichole Adams and Tanu Evans voted against. Mayor Roger Morrill removed himself from the discussion citing a possible perceived pecuniary interest.

ìI apologize to Aspen View here, but judging from the questions around council, I'm going to urge you all Ö that we think on this, î said Evans. ìThere's a lot of questions I've been hearing about the off-site levies themselves, we were only given this at two o'clock, there's some information we have to digest. î

Hunter said the town council's actions have "significant implications" for the building of the new school.

"To what degree remains to be seen," he said.

Hunter said the division would have to place a phone call to Alberta Infrastructure today and discuss the levy fees.

"It gets complicated, because the funding model for new school projects is quite clear - is that there is no funding provided for land or site services," he said. "Based on the decision today, we're going to have to have a hard look at what our options are."

Hunter also said that based on the discussion between councillors and the nature of the motion's defeat in a tie, he is hopeful.

"The indication, I think, we got from council is that they wanted more information," he said. "I think it goes without saying that we'll be gathering that information and providing it to them. But in the absence of a change or a revisiting of that decision, we're going to have to do some - ask some questions of the ministries involved in terms of what options do we have to come up with this sudden shortfall."

Town council has scheduled a special meeting for April 21 at 5 p.m. to discuss ìNew Aspen View School concern(s). î

- Files from Allendria Brunjes

EDITOR'S NOTE: Mayor Roger Morrill said after the council meeting that the reason he left during the discussion surrounding the new high school's off-site levy was due to a "possible perceived pecuniary interest."