Medicine Hat Minute: Issue 208

Medicine Hat Minute - Your weekly one-minute summary of Medicine Hat politics

📅 This Week In Medicine Hat: 📅

• Both the Administrative and Legislative Review Committee and the Corporate Services Committee will meet this week, on Tuesday and Thursday respectively. Unfortunately, we are rarely able to give you a heads-up on what is happening at these meetings, as the agendas aren’t published before you receive this newsletter. Rest assured, we watch the meetings, and will keep you informed after the fact!
  
  
• Council is revisiting the idea of a food waste composting facility after it was removed from last fall’s budget due to cost concerns. The proposed $9.5 million project would divert organic waste from the landfill and, according to Administration, would help the City meet environmental goals and avoid future landfill expansion costs. A 2024 pilot project involving 4,000 households received positive feedback, and staff estimate that over 22,000 tonnes of compostable material could be redirected annually. City officials warn that delaying the project could increase costs by $1.2 million and lead to rate shocks when a new landfill is eventually needed. Although Council had hoped for a regional partnership with Redcliff and Cypress County, those municipalities have not been receptive, and their facilities aren't equipped for mixed food and yard waste. If built, the composting system could generate $1.5 million in carbon offset credits over 10 years. The plan now heads to Council on June 16th for possible inclusion in the budget. If approved, the cost would add about $8 per year to utility bills.
  
  
• At a recent open house, Medicine Hat residents raised questions about the City's proposed municipally controlled corporation (MCC) to manage its energy division. City officials argued the new structure would allow for more professional leadership, modernize operations, and improve financial outcomes while still being accountable to the public through a council-controlled rate review board. Many attendees, including the Medicine Hat Utility Ratepayers Association, expressed concerns about transparency, rate control, and whether residents would continue to have a voice. Staff emphasized that the City has shared $500 million in dividends with taxpayers over the last two decades, but profits are expected to be minimal until 2030. Critics worry the MCC might operate like Calgary’s ENMAX, which lacks Council oversight on rates. Others pointed to the timing, noting the decision could impact or conflict with next fall’s municipal election.
  
  
• The City has put its remaining 600 gas wells up for sale as part of an exploratory process to decide whether to sell the wells or proceed with large-scale abandonment. This move follows a recommendation from a third-party consultant to accelerate the shutdown or sale of wells that are marginally profitable but carry significant environmental liabilities. The City, once a major natural gas producer, has seen production decline sharply in recent years, and operating losses and abandonment costs remain substantial. The current well portfolio has an estimated asset value of about $32 million but carries closure liabilities of around $52 million. Bids for the wells are due by early July, after which the City will decide on the next steps. Officials emphasize that operating fewer wells would increase costs, making it essential to either sell or abandon the entire portfolio efficiently. A recent report also suggested the City expedite its abandonment program to reduce financial risks.
  
  
• A new report from the Montreal Economic Institute shows that while South Zone emergency rooms in Alberta generally have lower wait times than major centres, the Medicine Hat Regional Hospital remains among the slowest in the region. The average wait in Alberta is 1 hour and 30 minutes for an initial assessment and nearly 4 hours total. In contrast, patients in Bow Island, Oyen, and the Crowsnest Pass can often see a doctor in just 30 minutes, with a total stay of around 1.5 hours. Medicine Hat patients, by comparison, wait 1 hour and 48 minutes to be assessed and nearly 4 hours overall. Chinook Regional Hospital in Lethbridge fared slightly worse. The slowest waits in the province are found in Edmonton, where patients may wait nearly 8 hours.
  
  
• Council has approved a $1.85 million grant for the Medicine Hat Women’s Shelter Society to support renovations to the Phoenix Safe House Emergency Shelter. The funding was granted through the City's new capital grant program, marking its first major test since launching in February. The shelter, which began renovations in late 2023, is undertaking an $8.5 million project and has already secured $1 million from the Alberta government and raised $3.1 million through reserves and fundraising. Councillors largely supported the grant, noting the shelter’s vital role in protecting vulnerable women and the increasing need for its services. Some, like Councillor Alison Van Dyke, criticized the provincial government for not contributing more, as shelters fall under provincial jurisdiction. While most Councillors supported the move, concerns were raised about setting a precedent and the lack of a dedicated funding pool for community grants. The funding will help the shelter repay nearly half of its loan from the Canada Mortgage and Housing Corporation.
  
  
• A discussion about the reimbursement of Mayor Linnsie Clark's legal fees has once again been delayed. The $76,017.62 in legal fees are related to last year's leadership crisis at City Hall. This marks the fourth time the motion has been postponed, with Clark stating that more information is needed before proceeding. The fees stem from five separate legal matters, including obtaining a second opinion on a controversial 2023 City Hall reorganization led by City Manager Ann Mitchell. Additional costs relate to a defamation allegation from Mitchell, Council's sanctions against Clark, and a judicial review that ultimately deemed the sanctions excessive, though it upheld a code of conduct breach. The reimbursement request is now expected to return to Council on June 16th.

🚨 This Week’s Action Item: 🚨

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