Rate Structure – Municipal Public Utilities
In this decision, the AUC considered an appeal by Ms. Eleanor Britz, Ms. Nadine Britz, and Mr. Doug Shields (the “Complainants”) pursuant to sections 43(2)(a), (b), and (c) of the Municipal Government Act (“MGA”) regarding certain water, drainage, sewer, and waste management service charges imposed by the Town of Coaldale (“Coaldale”).
For the reasons summarized below, the AUC found that the water, drainage and sewer service charges disputed in this appeal did not conform to the public utility rate structure established by Coaldale.
The AUC found that the grounds of appeal in relation to waste management service charges were not established and dismissed this part of the appeal.
Background
Coaldale was charging each dwelling unit of the property as if it were individually metered, even though each dwelling unit did not have an individual water meter. Coaldale explained that its policy is to allow multi-residential unit dwellings to have one water meter for multiple units in order to save the property owner from the expense of installing separate water meters for each unit.
Legislative Scheme
The AUC explained that a municipality’s rights and responsibilities in providing public utility services are primarily identified in Part 3 (“Special Municipal Powers and Limits on Municipal Powers”) of the MGA, sections 33 to 44, under the heading “Municipal Public Utilities.” A municipality’s rights with respect to nonpayment of public utility service charges are included, in part, in sections 42 and 553 of the MGA. Section 42 sets out liability for public utility service charges, and section 553, which is located in Part 13 (“Liability of Municipalities, Enforcement of Municipal Law and Other Legal Matters”), Division 4 (“Enforcement of Municipal Law”), provides an enforcement mechanism for municipalities to recover unpaid utility service charges in certain situations.
Water, Drainage, and Sewer
Pursuant to sections 42(2)(a) and (b) of the MGA, the AUC considered whether the water, drainage, and sewer service charges at issue conformed to the rate structure established by Coaldale and/or were improperly imposed.
The AUC found that Coaldale properly applied its bylaws when it charged the property a flat monthly fee and a monthly consumption charge for one water meter, one water, and sewer connection, and one drainage service. However, the AUC found that the three-additional flat monthly charges to the property for individual dwelling units that did not have individual water meters or individual water and sewer connections, did not conform to the public utility rate structure established by Coaldale.
The AUC, therefore, concluded those charges were improperly imposed. The AUC ordered Coaldale to refund the complainants the flat monthly fees for water, drainage, and sewer charges billed for the additional three individual dwelling units that did not have an individual water meter, or an individual water and sewer connection.
Waste Management
The AUC accepted Coaldale’s statement, previously communicated to the complainants, that their request to change the number of garbage bins assigned to the property must be made in writing, pursuant to section 4.1 of Bylaw 353-R-01-97. The AUC found that the complainants did not make this request. Therefore, the AUC found that the property was assigned four garbage bins and was being charged for four garbage bins. The AUC found that this was in conformance with Coaldale’s public utility rate structure.
The AUC accepted that Coaldale’s waste management service rates were based solely on the number of garbage bins and all residential customers were charged the same rate. The AUC also accepted that if Coaldale received a written request to reduce the number of garbage bins assigned to the property, Coaldale would assess whether the property would be sufficiently serviced by two bins for four residential units. Coaldale would exercise its discretion to either grant or deny the request based on whether two garbage bins would meet the needs of the property.
The AUC found that the waste management service rates were based on usage and Coaldale’s rate structure was reasonable. The AUC found the rate structure was not discriminatory as all customers in the residential class paid the same amount per garbage bin.
Summary
The AUC ordered the Town of Coaldale to repay Ms. Eleanor Britz, the utility account holder, any amounts paid from November 12, 2015, to the date of issuance of this decision, for three flat monthly charges for each water, drainage and sewer service. The AUC indicated that in cases where these charges were unpaid, Coaldale could not pursue recovery of these charges.
