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City of Nanaimo's legal fees reach $890,230

Nanaimo’s legal fees climbed to $890,230 last year as a variety of municipal issues and in-house troubles added up. The legal billings could be a record.
Photo - Nanaimo City Hall
Nanaimo City Hall

Nanaimo’s legal fees climbed to $890,230 last year as a variety of municipal issues and in-house troubles added up.

The legal billings could be a record. “I believe it’s the highest that I’ve ever seen it,” said Nanaimo Mayor Bill McKay, who served as a councillor prior to the 2014 election.

He said the annual amount spent on legal matters was far less in previous years.

“We had two firms — one that was labour relations and human resource-related and one that was everything else.”

Nanaimo does not have its own lawyer but rather contracts for services.

In 2016, for example, total legal costs were $532,808, and in 2015 they came to $662,859.

Last year, Nanaimo taxpayers were billed by more than 20 lawyers.

Costs were related to a number of matters, including a failed referendum for an events centre. That proposal required specialized legal firms to draw up contracts and examine various aspects of the plan, McKay said.

Both McKay and Coun. Diane Brennan were censured last year by council and urged to apologize to chief administrative officer Tracy Samra. That required lawyers.

The city launched and then withdrew a lawsuit against McKay, again requiring legal help.

Samra complained about the workplace, resulting in a report from Goldner Law Corp. which has not been made public.

A new accounting procedure also designated more expenses as legal fees, McKay said.

The number of legal firms used in 2017 is “not typical,” he said.

Why were so many used? “Because that’s the way the city manager chose to do it,” McKay said.

“I think we’ve spent an awful lot of money on legal fees that are extraordinary to the normal business of the community. Particularly with items such as censure and those sorts of things.”

Other Nanaimo-related legal services were carried out by two special prosecutors appointed by the province.

The first special prosecutor hired to look into Nanaimo issues submitted a bill last year of $4,405.

B.C. picked up the tab, as it always does for special prosecutors.

The second special prosecutor is still working on the latest Nanaimo matter, so those costs aren’t in yet.

Mark Jette was the first special prosecutor, tasked to look into the arrest of a Nanaimo councillor, who was not named publicly. No charges were laid and that work wrapped up in 2017.

The second special prosecutor, Michael Klein, was hired this year.

Samra is scheduled to appear in provincial court on April 10 for a first appearance. The special prosecutor is seeking to have Samra bound by a peace bond.

Samra was arrested by RCMP following allegations of threats uttered at Nanaimo City Hall, the special prosecutor said.

The court document outlining the application states that McKay and councillors Brennan, Sheryl Armstrong and city staffers Sheila Gurrie, Jan Kemp and Donna Stennes, former municipal employees Brad McRae and Kim Fowler, and online journalist Dominic Jones have “reasonable grounds to fear” that Samra will cause personal injury to them, based on a Jan. 31 incident in Nanaimo.

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