Chestermere halts legal action against council firings, says taxpayers on the hook for $300K

The City of Chestermere will abandon its application for a judicial review of the province’s firings of four members of council and three chief administrative officers.

The city’s interim CAO told city council Tuesday the legal costs associated with the application have reached almost $300,000 and that the decision to have taxpayers foot the bill was an unauthorized expense approved by the three former CAOs.

According to Pat Vincent, the interim chief administrative officer, the southern Alberta city has paid $256,000 of the bill, while $39,000 remains outstanding.

“The retention of legal counsel was not ever formally approved, nor was any amount ever approved for expenditure on legal fees in this matter,” Vincent said Tuesday.

He said an independent third-party law firm determined the application for a judicial review did not have “a reasonable prospect of success” and it is in the public interest to discontinue the application.

Several people in council chambers applauded the decision.

Municipal Affairs Minister Ric McIver dismissed mayor Jeff Colvin as well as councillors Mel Foat, Stephen Hanley and Blaine Funk along with chief administrative officers Kim Wallace, Travis Fillier and Cameron Wong on Dec. 4.

McIver said the city was being governed in an improper, irregular and improvident manner. He has since ordered a financial inspection of the city’s books. Council heard Tuesday that Deloitte Inc. is expected to finish the report by mid-April and it will be made public.

The four dismissed Chestermere council members. Clockwise from top left; Former mayor Jeff Colvin and former councillors Blaine Funk, Mel Foat and Stephen Hanley. (City of Chestermere)

It’s unclear if the former mayor and councillors will continue on with their own application for a judicial review. CBC News has asked Colvin and his lawyer for comment but did not hear back prior to publication.

The former councillors’ applications for an interim injunction against their dismissals were rejected on two separate occasions in Court of King’s Bench.

CBC News asked if the city is considering any action to recover its legal costs.

In a statement, it said:

“Any further action will ultimately be determined by the official administrator (or alternatively, the province) likely after the conclusion of the financial audit that is currently being conducted by Deloitte. This ensures our team properly understands the scope of the situation prior to launching any legal action.”

The province says any questions related to decisions made by the city, including legal action, should be directed to the City of Chestermere.