A timeline of the province’s deep dive into Chestermere’s governance

Here’s everything you need to know about the ongoing municipal affairs inspection into the city’s governance.

By Emily Rogers

January 2022

• Concerns of Chestermere’s governance expressed to municipal affairs

• Former and current city staff, former and current city councillors, and citizens expressed their concerns of Chestermere’s governance to municipal affairs.

• The previous Minister of Municipal Affairs, Ric McIver, received letters, phone calls, and emails, sharing concerns until March 2022.

February 2022

City employees begin the unionization process

• Chestermere city employees began the process of applying to the Canadian Union of Public Employees (CUPE), to protect their rights.

• Communications Representative of CUPE Lou Arab confirmed to Anchor Media that the unionization application was submitted on Jan 26, 2022.

• “They signed all their cards within two weeks of the application. Our union drive was conducted entirely in the month of January 2022,” Arab said.

• Chestermere employees began the process of joining CUPE for better treatment from their employers, and respect for the services they provide.

• The union would add a layer of protection between city staff and the employer and outline how things must be done within the employment contract, such as laying staff off and negotiating pay and other benefits.

• Every staff member that fell within the scope of the union was asked to send in a ballot, and with 50 per cent or more of votes in favour to join the union, negotiations proceeded.

City

employees

apply to join Alberta Labour Relations Board

• CUPE began a membership drive among Chestermere city employees.

• Cheryl Oates, a Communications Representative of CUPE confirmed to Anchor Media that the petition was completed with enough signatures to apply to the Alberta Labour Relations Board for certification.

• The voting ballots were submitted to the board, sealed, and waited for the result of objections from the employer and the union.

• The hearing was scheduled for May 25 until May 27, 2022.

March 2022

Municipal affairs launches preliminary review into city’s governance

• The city received a letter from McIver informing them that department officials would review the municipality to have a better understanding of issues and determine if further intervention was necessary, and if further action was required.

May 2022

Municipal affairs orders formal inspection

• Municipal affairs ordered a formal inspection of Chestermere’s municipal governance, after completing a preliminary review.

• An independent contractor was appointed to carry out the inspection to determine whether any legislative contraventions or improper conduct had occurred, Municipal Affairs Press Secretary Scott Johnston said.

• The inspection report addressed issues such as members of council acting alone and outside of a council resolution, members of council performing administrative functions and duties, code of conduct infractions, improper council meeting procedures and conduct, and the sale of municipal property not in accordance with the Municipal Government Act (MGA).

• “The inspection process is designed to ensure objectivity and procedural fairness, while also ensuring that all allegations are given appropriate consideration,” Johnston said.

• The process typically takes between six to 18 months to complete.

• The City of Chestermere welcomed the municipal affairs inspection and agreed to begin the inspection in the last week of May.

• Council was hopeful that the inspection would be completed quickly, and would help in any way necessary, and later share the inspection findings with residents.

• City representatives said they had refuting information on when the first city employee application to unionize was submitted.

• They indicated the first application was submitted before the last municipal election, not in January 2022. However, appropriate documents could not be submitted, due to confidentially concerns.

• Arab explained that the evidence must be signed within 90 days of the union application, and 50 per cent or more of the votes had to be in favour of the union to proceed with negotiations.

City workers unionize

• City of Chestermere employees voted to join CUPE.

• CUPE Alberta President Rory Gill welcomed Chestermere city employees into CUPE after the majority voted in favour of certification.

July 2022

City employees move forward with CUPE

• CUPE began work with Chestermere city employees to negotiate a union agreement.

• After city employees were approved to join CUPE, the Alberta Labour Relations Board conducted a vote of all eligible employees.

• If over 50 per cent of eligible employees voted to unionize, the board would become the official bargaining agent for all employees.

• Representatives organized by the union then serve on the bargaining committee, ask members about their concerns, and prepare proposals for a first collective agreement.

• CUPE expected the city to also prepare proposals.

• Bargaining a first contract can be a slow process, taking over a year to finalize.

• When both sides have completed negotiations and come to a full agreement, the union will present the deal to members for vote.

• Throughout the process, city employees have a codified condition of employment, work rules, and can file any grievances that are backed up by union representatives if they feel the city is not following the set conditions or rules.

September 2022

Municipal affairs reviews Chestermere’s governance inspection report

• The inspection report into Chestermere’s governance was submitted to municipal affairs for review.

• Municipal affairs was set to give Chestermere council an embargoed copy of the inspection report for review and comment.

• Based on the report and councils’ response, the minister would then determine the next steps.

November 2022

City reviews municipal inspection report

• Municipal affairs shared an embargoed copy of the inspection report with city council for review and comment.

• City council had until Dec. 9, to provide any feedback to the newly appointed Minister of Municipal Affairs, Rebecca Schulz.

• Based on the responses from city council regarding the report, Schulz will determine the next steps.

• After considering input from council, municipal affairs will share the report with Chestermere residents through a public meeting.

• Until the public meeting, municipal affairs couldn’t comment on the contents of the inspection report.

• An inspection report is used to identify significant concerns with the governance, management and administration of a municipality, and to take corrective actions if necessary.

• Although an inspection report does not result in the dismissal of members of council, or a municipal Chief Administrative Officer (CAO), under specific conditions of the MGA the Minister of Municipal Affairs could take action to dismiss council members or a CAO.

December 2022

Wallace with assault.

• Wallace was released on conditions and will appear in provincial court in March.

February 2023

KPMG requests city correct misleading information

• KPMG issued a letter to the City of Chestermere requesting misleading information be removed from the city website.

• The letter, dated for Feb. 21, explained that the city’s website indicates KPMG completed the 2021 audit.

• However, KPMG resigned from the city’s audit committee.

• “As a result of our resignation, we did not complete an audit of the city’s 2021 financial statements,” the letter said.

City rejects inspection report

• The City of Chestermere rejected the embargoed copy of the municipal affairs inspection report, due to a “Lack of evidence and a flawed process.”

• Council called a special meeting where Mayor Jeff Colvin and city councillors Mel Foat, Stephen Hanley, and Blaine Funk passed a resolution rejecting and opposing the draft report.

• City Councillors Shannon Dean and Sandy Johal-Watt opposed the motion but were defeated by a majority vote.

• Councillor Ritesh Narayan was not present for the entire meeting and did not vote.

• The city-run website Chestermere Today suggested municipal affairs rescind or redo the report, and that the draft report was biased against the city.

• The city declined to respond to the draft report based on “Breaches to the principles of Natural Justice and Procedural Fairness.”

• Municipal affairs was made aware of the inspection report rejection, and continues to uphold the process under the MGA, and will review the city’s feedback.

• The ministry has yet to release the findings of the draft report publicly.

• Chestermere residents can expect to receive an update from municipal affairs in early 2023.

January 2023

City rejects municipal affairs draft inspection report, again

• City council disallowed the Dec. 9, special meeting rejecting the municipal affairs draft inspection report, due to a time stamp issue.

• Kim Wallace, the City Director of Corporate Services presented the city’s official response to the draft inspection report.

• Wallace explained the city’s refusal of the report was due to breaches of the Public Inquiries Act, breaches to Natural Justice and Procedural Fairness, and a lack of evidence.

• The city’s response indicated sections of the Public Inquiries Act were not followed, including evidence, attendance of witnesses, admissibility of evidence, the right to call witnesses, and notice of an allegation of misconduct.

• A motion was carried authorizing Colvin to write a letter to Schulz requesting to meet, with Colvin, the deputy mayor, and chosen councillors.

City director charged with assault

• Chestermere’s city director of corporate services was arrested and charged with assault.

• The Chestermere RCMP were made aware of an assault at city hall.

• Following an investigation into allegation, RCMP arrested and charged Kim

• KPMG requested that the city remove the information indicating they completed the 2021 audit from the city’s website and issue a statement expressing that the city’s financial statements for 2021 have not been audited by KPMG.

• KPMG also requested the city provide a written confirmation from city council that no parties were directly advised by the city that KPMG had completed the 2021 audit.

• The City of Chestermere was unavailable for comment.

• KPMG declined to comment.

March 2023

Chestermere given 12 directives following municipal inspection

• Chestermere City Council and administration were given 12 directives to return to good governance.

• The directives issued following the inspection report include reviewing and implementing the recommendations from the report, reviewing the procedural bylaw, developing a strategic plan and a timeline for completing the 2021 audit, and appointing an independent third party to handle all complaints.

• Councillors have also been directed to discontinue performing CAO duties, and report back to Schulz by-monthly on the progress made.

• “If the city implements these directives as they are required to, Chestermere will be in a better position to return to effective decision-making,” Schulz said. “My hope is to have a respectful and collaborative council with open and transparent processes that align with legislative requirements.”

City director pleads not guilty to assault charges

• Chestermere city director of corporate services, Kim Wallace plead not guilty to assault charges from January at Strathmore Provincial Court.

• “I am innocent of the charge brought against me and I look forward to being able to clear my good name in court, before a judge, who will hear all the facts of the case. I have plead not guilty and a wait for the court date to be announced,” Wallace said in a statement to Anchor Media.

City Council takes first steps in fulfilling municipal affairs directives

• City council began to tackle the directives issued by municipal affairs, based on the findings of the inspection report.

• The CAOs were directed to create a report of all code of conduct complaints, conduct the procurement of an independent third party with municipal governance experience, develop protocols for council conflict, develop a strategic plan, hire an audit firm, and list all municipal land sales.