Gmail and no privacy instead of townisp?

In a mood of being upset by the change to Google for my town email, I sent this email to the help desk in response to this change;

Thanks for the info. As your email stated; "We look forward to this
> upgrade and are excited to provide our TownISP email customers with
> best-in-class tools for online communication and collaboration!"
>
> You forgot to add that now emails will be tracked by Google and there
> will be ads attached to emails.

The help desk response was;
There are no ads either inside of or attached to email messages, nor are
there any on the gmail website in the edition of Google Apps we are
offering.

If you have questions or concerns you can read Google's privacy policy at
the following link.

My then email apologized for saying that ads are included, but I also asked a few of questions.

First, I love that Shrewsbury has it's own electric, water, and internet
and not relying on corporations. It's a main reason I continue to live here.
Having said that, moving our private email to Google, is an affront to
me... without a fight, next see SELCO becoming part of Comcast.

But, I digress from my first email. I stand corrected that there will be
ads in my personal emails.  I'm not certain that my email information will
be shared, or tracked.

Help Desk, you reference Google's privacy policy... Have you read it? I
quote from the policy; "We collect information... like which ads you'll
find useful, or the people who matter most to you". "We collect information
about the services that you use" "We collect device-specific Information".
I could go on and on, but you get the idea.

I realize that the privacy policy is about a Google Account, but you
pointed me there. So... in defense of 'townisp', are you telling me that my
'townisp' account is NOT subject to the Google privacy policy, or no?
That's a YES/NO question.

Simple question here; Is my 'townisp' email subject to Google's privacy
statement? Specifically "We collect information about the services that you
use".  That's a YES/NO question.

As far as Google Apps being offered, what are they? Google Apps are FULL of
ads, and I don't need a 'townisp' account to get them, so are Google Apps a
plus, or just some hype to make me believe in this new email thing?  Are
these apps free?

Steve