Regional service delivery

• RSC Fact Sheet
• RSC Contacts (On the municipal dashboard, select Contact Information, then Local Authority Type drop down list, then choose Regional Service Commissions to find RSC contacts)
• List of approved Alberta RSCs 

Regional Service Commissions (RSCs) are a separate legal, full cost-recovery entity that allows Alberta municipalities to work collaboratively with other municipalities to deliver effective and accessible services that are responsive to the needs of their communities. Types of municipal services that can be provided through RSCs include:

• administrative and assessment services
• emergency management and fire services
• economic development services
• planning services
• water, wastewater and solid waste management services

RSCs are established under the authority of Part 15.1 of the MGA. If 2 or more municipalities, First Nations Reserves, Metis Settlements and/or armed forces bases agree to provide services together, they can establish an RSC through the passing of a council or band resolution.

The Minister of Municipal Affairs must be notified within 60 days of the resolutions being passed. Notification to the Minister includes copies of resolutions from all member authorities, the RSC’s office location and contact information.

Municipal authorities wishing to establish a RSC must specify within their resolutions:

• the name of the RSC
• the names of the members
• the first board of directors
• the first chair of the commission

The RSC is formally established once the ministerial order listing the names of all RSCs in Alberta is updated to include the new commission.

Proposed resolutions for new RSCs must be advertised in accordance with MGA 606 before they are passed.

This includes the:

• proposed name of the RSC,
• proposed member municipal authorities,
• proposed first board of directors and
• name of the first commission chairperson.

Municipal authorities may complete further public engagement as warranted. For example, the public may be interested to know about the proposed services to be provided by the commission.

Municipal authorities should consult with Municipal Affairs prior to bringing forward resolutions, to confirm that the proposed RSC name complies with applicable naming conventions and does not duplicate an existing RSC name.

The intent of the commission is to provide services to Albertans at the lowest cost and operate on a full cost-recovery basis. Reserves can be held, but any financial surplus may not be distributed back to the member municipalities. Rates charged by commissions must be established by bylaw.

Services are provided on a regional basis to members of the commission. Members do not have to be adjacent to one another to form a regional services commission. If the Minister approves, the commission can also provide service to other customers who are not members of the commission.

Commissions have their own distinct legal status separate from the municipal authorities that create them. This means the service commissions can:

• hire staff
• administer their own payrolls
• own property in their own name
• raise capital and/or borrow money

Like municipalities, commissions have natural person powers and can enter into contracts, negotiate easements and undertake other such agreements. The commission is run by a board of directors who are appointed according to the commission’s board appointments bylaw.

• MCC Fact Sheet
• List of Alberta MCCs

Municipally Controlled Corporations (MCCs) are for-profit corporations where a municipality (or group of municipalities) holds more than 50% of the votes in electing directors of the corporation. An MCC may be formed to provide facilities or municipal services such as water and waste management, electricity and gas distribution. Controlled corporations are similar to other privately owned business corporations. The MCC must comply with specific requirements under the MGA and the Municipally Controlled Corporations Regulation (MCCR).

Although municipalities maintain the controlling interest in these corporations, day-to-day operations occur at arm’s length. Directors and management have effective control of the corporation. Any employees are employees of the corporation, and the member municipalities are not responsible for them or their salaries.

Previously, ministerial approval was required before a municipality could establish or obtain control of an MCC, but now the decision resides with municipal council through passage of a council resolution. Council must consider factors such as whether the MCC meets a municipal purpose and must ensure it will provide a service or benefit to residents, including any profit. MCCs operate like a private business while serving public interests.

As a separate legal entity, the MCC can own property and manage its own finances which assists in insulating the municipality from risks and liabilities. Profits and dividends generated by the MCC are paid to municipal shareholders in the form of dividends, which can then be used by the municipality to provide municipal services (rather than relying on property taxes).

Municipalities maintain some important responsibilities related to the MCC. The municipality must approve, via council resolution, any material changes such as a change in shareholding, the type of service delivered, or the geographic service areas – which then requires notifying the residents and amending the Unanimous Shareholder Agreement. The shareholder municipal council(s) must ensure the MCC prepares annual financial statements (as per MGA s. 279). The annual financial statements and other reports must be made available for public inspection.

The MGA provides natural person powers for municipalities to enter into any contractual agreements. Municipalities may enter into agreements for such areas as administration, cost or tax sharing, development plans, emergency services, facilities, planning recreation and service sharing. The provincial government does not have any specific role in facilitating these agreements, although municipalities can always access the normal provincial supports available to them, such as advisory or dispute resolution services. Intermunicipal agreements are generally meant to achieve a specific and narrow objective and allow greater municipal autonomy than other forms of regional governance. These agreements can assist municipalities with achieving greater economies of scale and promote regional cooperation.

The Cooperatives Act allows for incorporation of an enterprise or business jointly owned by an association of members who pool their resources to satisfy their common interests. See more information about cooperatives.

The Rural Utilities Act governs co-ops that have the goal of providing electricity, natural gas, water (primarily for domestic use), sewage disposal, and water (primarily for domestic use) and sewage disposal to members in a rural area. Co-ops that are incorporated under the Rural Utilities Act may not also be incorporated under the Cooperatives Act. See more information about rural utility programs.

The Partnerships Act allows two or more individuals or corporations to do business together as partners. All partners share in the profits and the risks or debts of the business. A limited partnership allows for a general partner that is usually liable for the debts of the business and a limited partner that is usually only liable for the amount of their contribution to the business. See more information about partnerships.

Part 9 of the Companies Act also allows for the incorporation of not-for-profit organizations, similar to a society. Part 9 companies can, however, engage in business activities. Profits from business activities may only be used for the purpose of promoting the objects of the organization and must not be paid to members. See more information about non-profit companies.

The Societies Act allows for the incorporation of not-for-profit organizations. Five or more persons may become incorporated for any benevolent, philanthropic, charitable, provident, scientific, artistic, literary, social, educational, agricultural, sporting or other useful purpose. A society may not carry on any trade or business activities. See more information about societies.

It is also possible to establish an agricultural-specific society under the Agricultural Societies Act. See more information about agricultural societies.

While the Municipal Government Act does not specifically address Private Public Partnerships (P3) (contracts between a municipality and a private company), any actions a municipality takes in regards to a P3 must be in accordance with any relevant legislation. A P3 is a non-traditional way for government to create capital assets (such as roads, schools and other types of government facilities). A P3 has only one contractor that designs, builds, finances, maintains and in some cases operates, a public asset. For a P3 project, the private contractor provides some or all of the financing for the project, and designs and builds the project (often providing operations and maintenance for the project). The private contractor then receives payments over an extended period of time, subject to deductions for failing to meet contractually defined performance standards. The interplay between design, construction, operations and maintenance and performance creates an ‘extended warranty’ over the term of the contract.

While there is no provincial department that oversees municipal P3s, an example of how the provincial government manages its own P3s can be viewed on the public-private partnerships webpage and the P3 Framework and Guideline document.