Medicine Hat city council to discuss mayor’s legal fees, energy future

Those are only four out of 11 new and returning decision items included on the agenda for Tuesday’s regular open meeting, setting it up potentially be a long one.

Legal fees

Clark will attempt to get reimbursed for legal fees she incurred during the sanctions scandal that led to a leadership crisis at Medicine Hat city hall in 2024.

She added an advance motion to the last meeting’s agenda directing city administration to cover $76,017.62 in legal fees over five different items.

The first is the cost of obtaining a second opinion about the reorganization of city hall that chief administrator Ann Mitchell carried out in 2023.

Clark, who before becoming mayor worked in the city solicitor’s office as a lawyer, paid for legal advice on the legitimacy of Mitchell’s restructuring.

Guy Giorno, a lawyer with Calgary-based Faskon Martineau DuMoulin LPP, said Mitchell’s actions contradicted the city’s Bylaw No. 4662.

Giorno wrote that large parts of the reorganization were “null and of no effect” in his response to the mayor.

Clark brought up that legal opinion at the famous Aug. 21, 2023, meeting that led to a sharp exchange between Clark and Mitchell and surprised councillors who had no prior warning.

Clark’s second item requests reimbursement for the “reorg.”

She told CHAT News on April 8 that fees attributed to the Giorno opinion and reorganization are the same.

The third item that Clark asks for reimbursement on is Mitchell’s defamation allegation.

Mitchell’s lawyer sent the mayor a letter in November 2023 demanding she “cease and desist” from further defaming the city manager.

It’s unclear what cost Clark incurred in the defamation letter or if there was a legal response that was not disclosed to the public.

The fourth and fifth items Clark asks for reimbursement on are “the Code of Conduct” and “the JR” — in reference to the misconduct allegation from council and the judicial review in August 2024.

Clark appears to reference fees she incurred last year as she fought the sanctions placed on her by the rest of council in March 2024.

Justice Rosemary Nation ruled the sanctions were “disproportionate and unreasonable” but agreed Clark broke council’s code of conduct rules by mistreating the city manager.

The item is sure to spark debate around the horseshoe. Councillors haven’t yet publicly given any indication of what way they’ll vote.

Municipal inspection

City council will on Tuesday receive a closed session update on the ongoing non-financial audit of city hall by Alberta’s municipal affairs ministry.

That municipal inspection was requested by council and granted by the relevant minister, Ric McIver, last year.

Council requested it in an attempt to provide a reset for the next term of council and dig up any archaic bylaws or processes that could use refreshing.

Chief administrator Ann Mitchell was supportive of the audit when council approved a request at a September 2024 meeting.

Clark wanted to look into what the implications an audit could have on the city before moving ahead.

The mayor and two councillors who echoed her thinking — Ramona Robins and Alison Van Dyke — voted against the inspection.

It passed 6-3.

The inspection report — the audit’s key findings — is expected to be completed and made public in June.

Insp. Ian McCormack told CHAT News that he’s wrapping up the work.

“That includes including some procedural fairness steps to ensure anyone referenced in the report has an opportunity to provide feedback to me before the report is complete,” McCormack wrote.

McCormack added the release of inspection reports sometimes coincides with a regular council meeting but can also come forward at a special meeting called specifically for its release.

Council is set to approve the addition of an open council meeting for 6:30 p.m. on June 23.

While it appears to coincide with when the audit report is due to be released, CHAT News has yet to verify if the meeting proposed by chief administrator Mitchell is for that reason.

KPMG report, and more

City council in September 2023 approved launching a third-party review of its energy business following a summer of skyrocketing electricity rates.

That review, carried out by industry juggernaut KPMG, produced a series of four recommendations: establish a rate review committee, selloff its natural gas production assets, create an arms-length municipally controlled corporation and develop a dividend policy for the corporation.

The staff presentation coming to Tuesday’s meeting will provide council with an overview of the MCC and rate review committee so the horseshoe can make a decision later on whether to move ahead.

While it’s only for information, it could give the public an idea of where council sits as it considers what the tangible cost will be to setting Medicine Hat’s publicly-owned energy business up for the future.

The transition to the arms-length corporation would cost the city $4 to $5 million in a one-time upfront fee and $2 to $3 million annually — working out to one to two per cent of the city’s annual operating costs.

The one-time cost for setting up the rate review committee is estimated to be between $25,000 and $45,000. Operating costs are estimated at between $185,000 and $215,000 annually.

Council will hear these factors and more in a 56-slide presentation from the energy division.

IDP

Council could lock in the updated Tri-Area Intermunicipal Development Plan if it grants final approval to Bylaw 4846 on Tuesday.

The longstanding development agreement between the City 0f Medicine Hat, Town of Redcliff and Cypress County is mandated under provincial legislation.

The updated deal includes the creation of an agri-industrial area near Highway 3 set aside for business potential.

Officials say a pair of infrastructure projects — the Highway 3 twinning initiative and an expected extended runway at the Medicine Hat Regional Airport — made it a prime location.

The plan features stronger protection of strategic lands located south of the city within Cypress County for future urban expansion needs.

An included southwest rural development area will allow for new multi-lot country residential opportunities while protecting the area from any new industrial activities.

A fourth major change to the IDP includes creating a regional heavy industrial collaborative planning area by Redcliff , replacing part of a current industrial area.

The IDP, launched as required by the Municipal Government Act in 2009, was last updated in 2020. As a “living document”, it’s meant to be updated regularly.

The committee nearly fell apart in 2024 when Cypress County considered leaving the group. The county later decided to remain after seeing progress.

The Mustard Seed

The Mustard Seed’s Medicine Hat branch continues to find itself on council agendas.

Coun. Andy McGrogan proposed a motion passed at the April 7 meeting to provide council with a status report on the non-profit’s emergency overnight shelter.

Staff report that the site is legally entitled to operate at the location and for the provision of meals throughout the day.

The use of 737 Eighth Street S.E. as a shelter was first granted permission in 1999, according to a staff report.

McGrogan made the motion after residents raised concerns over the validity of the shelter’s development permit at a meeting of the Municipal Planning Commission in February.

McGrogan, who chairs the MPC, said the ask is just to get information.

Property tax bylaw, financial statements

The agenda for Tuesday’s regular meeting is a long one.

Council will also consider changing up its procedural bylaw related to public hearings, passing the city’s property tax bylaw for 2025 and reappointing of MNP as the city’s external auditors.

The full agenda can be read online.

by Olivia Thorington