The possibility of a merger between the Westlock Foundation and Sturgeon Foundation has been raised by Sturgeon County according to a report in the Feb. 3 edition of the Redwater Review.
The push is coming from the Sturgeon Foundation after that group began handling the management of seniors housing service delivery in Westlock in late 2013.
Currently, executive director Dennis Magnusson looks after the running of both foundations while the organizations maintains separate frontline and back end staff as well as management boards.
“During the past year we’ve been able to make improvements in the financial operation for the Westlock Foundation,” Magnusson said. “We’ve reduced the local property taxes for 2015 and we’ve made improves in the day-to-day operations, but there’s more to be done … it just takes time.”
The current management arrangement under Magnusson’s direction began in November 2013 and Westlock Foundation board chair, Jim Wiese believes the change has been good.
“We’ve been happy with Sturgeon’s management,” he said. “We’re 15 months into a three-year contract, and at the start there’s a few growing pains, but for the most part it’s gone smoothly and the board has been satisfied,” said Wiese.
“We’ve been really impressed with Dennis, he’s had years and years of experience in this field and he’s a very sharp manager.”
The Westlock Foundation provides living and care facilities for the region’s seniors and includes the Pembina and Smithfield lodges as well as some satellite locations.
Services range from assisted living to independent apartments akin to living at home, albeit with some support.
Potentially, there are many benefits to both foundations should a merger take place.
“For the housing industry it will be easier to attract, recruit and retain key personal, whether it’s executives, accountants or other staff because you’ll have a stronger organization and more effective leadership,” Magnusson said.
There are also some risks including making sure that any hypothetical board structure had appropriate community input from the stakeholders in the Westlock region.
“I feel it’s very important to have input from the various municipal councils on such a board,” he added.
The Westlock Foundation also has a debt and it could make the board merger unpalatable.
“In Westlock, the amount of debt that they have had to carry has been quite high, their tax requisition has increased significantly and so the people on the Sturgeon Foundation may say ‘we don’t want to assume that debt’,” Magnusson said.
The Westlock Foundation currently runs its day-to-day operations at profit and that means that there is no more money being added to the debt.
Wiese is limited in his support for the idea and noted that no formal approach had taken place.
“Our board’s primary focus is on the quality of care and the quality of accommodation of our residents and corporate governance issues are way down the line,” said Wiese.
“When we meet as a board we talk about how we can fit in quality care and residents within out budget parameters, and that’s all we really discuss at our meetings.”
Wiese said that if the proposal were formally brought to the attention of the board they would consider it, but it’s not a priority at this time.
“We have a board and we have a strong board and I consider all our partners equal,” he added.
Should suitable terms be found and a decision for a merger be taken, the final approval will ultimately fall to the provincial government.
