Medicine Hat city council: Energy business, legal fees, municipal inspection

Energy Business

The agenda for Monday’s council meeting includes a decision on the City of Medicine Hat’s energy business they have owned for nearly 125 years.

A third-party review by KPMG suggested the creation of a municipally controlled corporation, that will still ultimately answer to the city.

This has support from the cities energy head Rochelle Pancoast and her staff.

It would be run by a board of experts and pay dividends to Medicine Hat, lifting day-to-day operational responsibility away from council.

Also recommended by KPMG is the establishment of a rate review committee that would determine what shows up on the bills of electricity and natural gas ratepayers.

During the June 24 council meeting, several residents called on Medicine Hat’s elected representatives to defer a vote on spinning off its energy business into an arms-length corporation until after the next civic election.

After some debate, the item was then deferred by council to the July 21 meeting.

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READ: Medicine Hat council should leave energy business revamp vote until after election, residents say

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Municipally-controlled corporations are found in several municipalities across Alberta, including in Edmonton, St. Albert and others.

Launching an MCC could cost a one-time $4 to $5 million fee to set up.

A budget amendment of $4 million listed in Monday’s agenda would come out of the energy transition reserve fund.

Ongoing operating costs for the board, new positions, systems and additional allowance for further transition could cost $2 to $3 million annually, working out to one to two per cent of the city’s annual operating costs.

Municipal inspection report

A municipal audit of Medicine Hat city hall nearly a year in the making will be presented to the public for the first time at Monday’s council meeting.

Council will first discuss the details during a closed session prior to the public meeting.

The inspection was requested by council in September 2024 after a months-long leadership crisis sparked by a disagreement between the mayor and chief administrator over procedure and authority.

Then-municipal affairs minister Ric McIver agreed to council’s request and decided to move ahead with the inspection in November after completing an initial preliminary stage that included interviews with members of council and administration.

Many councillors hope the audit will act as a reset ahead of the fall municipal election, setting up the next term of council for success.

City chief administrator Ann Mitchell said last year an inspection could return the public’s trust in city hall.

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READ: Medicine Hat’s municipal audit coming to council at July 21 meeting, councillors say

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Mayor Clark legal fees

Mayor Linnsie Clark’s legal fee ask will return to the council agenda on Monday for the sixth time.

The item first appeared on a council agenda on April 22.

Mayor Clark is looking to be reimbursed $76,017.62 of fees incurred from the Giorno legal opinion, council reorganization, city manager Ann Mitchell’s defamation allegations, the code of conduct and the judicial review.

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READ: Medicine Hat city council delays decision on mayor’s legal fees reimbursement ask

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Procedure Bylaw

Councillor Shila Sharps has sponsored a pair of amendments to Medicine Hat’s Procedure Bylaw 4725, which is in place to set the procedures of meetings and to establish certain council committees.

One amendment would be to start regular council meetings at 4 p.m.

The second amendment would be that the composition of the agenda review committee would include the mayor as chairperson, deputy mayor, and acting mayor, with the city manager or a designate, and the city clerk participating in an advisory capacity.

These are expected to by discussed during this meeting, to be presented at the council meeting on Aug. 18.

Grant distribution

City council will look over the 2026-27 Family and Community Support Service Grant Distribution based on recommendations from the Community Vibrancy Advisory Board.

The list includes total funding requests of $813,920 over the two year period.

Community Food Connections Association of Southeastern Alberta – $96,720
LEARN Community Adult Learning Council – $30,000
Medicine Hat Family Service – $382,500
Medicine Hat Public Library Board – $84,000
Medicine Hat Public School Division – $150,700
Medicine Hat Women’s Shelter Society – $70,000

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Council Stream for July 21, 2025

– With files from Eli Ridder

by Jesse Gill