BARRHEAD – Town council is reconsidering whether local not-for-profit groups should be allowed under the municipality’s utility account, a move that could grant them access to lower electricity and natural gas rates.
In the end, councillors decided during their June 24 meeting to table the decision, asking administration for more information.
Corporate services director Jennifer Mantay brought the issue before council for their consideration following a request by the Ripple Connection Support Centre (RCSC).
In March, the now-defunct not-for-profit organization requested that the municipality place it under its utility umbrella after the province unexpectedly cut its Alberta Health Services (AHS)-Alberta Recovery grant funding. They were in the second year of a three-year agreement in which the RCSC received $79,000 annually.
The council denied the request, citing concerns that the town would be liable if the organization defaulted on its payments. They also noted that the actual savings the Ripple Connection would see would be minimal.
Mantay stated that the municipality currently has four organizations under its utility account: the Barrhead and District Historical Society (i.e., the Centennial Museum), the Barrhead Curling Club, Barrhead and District Family Community Support Services (FCSS), and the Blue Heron Support Services Association (BHSSA).
The organizations have been included as part of the municipality's utility account since 2004.
"There has never been a default in any of these organizations' bills," she said.
However, given council's recent request and subsequent refusal to add the Ripple Connection to that list, Mantay said administration decided to ask councillors for additional guidance.
"Does council want to allow these organizations to stay under our umbrella? Or let them stay on, but have them sign an agreement acknowledging that they are responsible for all payments," she said.
Coun. Dave Sawatzky said he found it odd that the Barrhead Bowling Association and its facility, Blue Heron Bowl, were not on the list, as the buildings are both owned by the municipality.
Coun. Don Smith asked how many not-for-profit organizations would be eligible to be included under the municipality's utility umbrella.
"There are certain groups that we are not going to allow, but how many groups and organizations could be under this umbrella?" he asked. "How are we going to say no [to certain groups] when we are always saying yes to these four."
To be eligible for inclusion under the town's Alberta Municipalities (AB Munis) utility coverage, Mantay said, an organization must be considered a community-related organization.
"One of the ways to determine that is if the town gives them any funding," she said.
AB Munis is an advocacy group that lobbies the provincial and federal government on issues concerning its members (summer villages, villages, towns, cities, and other specialized municipalities). It represents roughly 260 members, including the towns of Athabasca, Barrhead and Westlock. It also offers its members various services, including insurance and utility services.
Mantay said another thing to consider is whether the addition of an organization would put the municipality over its consumption limit under its AB Munis utility plan.
"Right now, that is not happening, but if all of a sudden we had 10 more community groups, and [AB Munis] said the addition would mean that it would [adversely] impact our utility rates, then maybe we would want to reconsider," she said.
Coun. Ty Assaf asked what type of funding an organization would need to receive to be eligible for inclusion.
"We have a lot of organizations come asking for money, and we end up funding them through donations," he said.
Mantay said she wasn't clear where AB Munis drew the line. Similarly, she did not know why the municipality included the Blue Heron Support Services Association on its list of organizations under the municipality's utility rate list.
Mantay added she did not know how much of a reduction in utility rates an organization would see.
"It is impossible to say because everyone has different rates depending on which utility provider they have," she said.
Smith said that is the first thing council needed to know before making any decision.
"If it is a substantial amount of money, then I understand why they want to be on that list, but one of the reasons why we denied it is that it wasn't substantial enough," he said.
Mantay said she could compare the four organizations on the list to the "rate of last resort" but noted she wasn't sure if that would give council an accurate picture of how much they were saving.
"Because they are not always going to be on the rate of last resort," she said.
Council instructed Mantay to gather more information on what AB Munis' definition of a community-related organization was and how much potential savings an organization on the rate of last resort could achieve if it were under the municipality's AB Munis utility account, tabling further discussion.
Barry Kerton, TownandCountryToday.com
