Dismissed Come By Chance councillors invited back, offered apology for conflict dispute

A decision by the Town of Come By Chance to overturn a controversial conflict of interest finding and the dismissal of four councillors is being reviewed by the Department of Municipal and Provincial Affairs.

A department official wrote in a statement to CBC News that the July 26 motion of the newly installed town council is being scrutinized "to determine compliance with the Municipalities Act, 1999 and the Municipal Elections Act."

At issue is anOct. 14 press release from thePlacentia Baytown of just over 200 residents, saying council voted 3-0 at a July meeting one of the first orders of business after five people were elected by acclamation in June to rescind a Feb. 3 decision. That earlier motion by a single member of theformer council, Kathy Paul, ordered the dismissal offour councillorsafter an investigation led by Pauldetermined themto be in a conflict of interest on a land expropriation matter.

"It is council's opinion, after reading the Whelan report and other documentation, that there was no justification for finding the four councillors in conflict of interest," the Oct. 14 press release states.

Council apologizes for 'stress and hardship'

The press release stated the decision to rescind the decision was based on legal advice and was done "to reduce legal costs to the town," since all four dismissed councillors had filed an appeal of their dismissal withthe Supreme Court of Newfoundland and Labrador, with a court date set for Nov. 4.

The town council also apologized to former volunteer elected leadersKeith Best, Ralph Slade, Llewellyn Baker and Matthew Best "for the stress and hardship this decision has caused them and their families."

The press release said town leaders "are happy" to welcome Slade and Matthew Best back as town councillors at the next regular council meeting, which took placeon Oct. 19.

• Come By Chance town council to be reactivated following semi-successful nomination day

But with the decision under review by the department, council backed down on its plan to welcome Slade and Matthew Best back immediately.

Keith Best and Baker declined the invitation, saying they are done with municipal politics.

Keith Best, the former mayor, declined an interview request, saying, "I think I had enough."

Baker told CBC News he feels council's July decision was the right thing to do.

"We weren't in a conflict of interest, according to alawyer," he said,adding the matter tarnished the former councillors' reputations and cost him "a pile of money with lawyer's fees."

Asked why he wouldn't return to council, Baker replied, "I don't want to get involved."

A tense and controversial year

The motion to rescind was put forth by Coun. Trevor Hodder, seconded by Coun. David Boutcher, and also supported by Deputy MayorMary Hodder. Mayor Carol Molloyand Coun. Nadine Baker, who has since resigned, have family links to the four former town councillorsand did not speak or vote on the matter.

The current council was elected by acclamation in June, ending a circumstance in which the town's affairs were being administered by a Municipal Affairs officialafter the entire council imploded in February.

Hodderdeclined an interview request, saying he will speak on the matter after a decision is made by Municipal Affairs.

Kathy Paul declined an interview request.

The decision to rescind and the resulting provincial government review is the latest chapter in what's been a tense and controversial year for Come By Chance, a small town situated at the heart of a heavily industrial area of the Avalon Peninsula.

Questions about a conflict of interest emerged last October as council attempted to expropriate some waterfront property amid an ongoing dispute with the property owner over access to a community owned marina.

The four councillors who were dismissed were either members of the Come By Chance Recreation Boat Owners' Association, which operates the marina and has received funding from the town, or had a close family connection to those who were members. Keith Best and Llewellyn Baker also own private wharves at the marina.

The four dismissed councillors took part in debate on the matter, and also cast votes on expropriation, against the advice of town manager Colin Holloway, who has since resigned.

The town was given permission by municipal affairs for Kathy Paul and another councillor, Kim Downey, to investigate the alleged conflict. But Downey later resigned, leaving Paul to handle the matter on her own.

On Feb. 3, Paul delivered a report saying the four councillors were in a conflict of interestand that their seats would be vacated.

A few days later, Paul herself resigned amid an uproar in the community, including a public meeting that got heated, leaving the divided community without any elected leadership.

Meanwhile, Llewellyn Baker said the court appeal is now over because the finding of conflict of interest has been reversed.

CBC News has requested a copy of the Whelan report, cited in the town's Oct. 14 press release, which several current and former council members say did not reach a finding of conflict of interest against the four councillors.

As for the current mayor, Carol Molloy, shewould only say council is "working efficiently and effectively for the better of the town."

Read more from CBC Newfoundland and Labrador