Controversial Former Peace River CAO Kelly Bunn to Seek UCP Candidacy

The United Conservative Party's leadership contest is over, and to almost no one's surprise, Jason Kenney is the new leader of the new party. Poor Brian Jean may finally have to accept that he signed his own political death warrant with the party merger, now that he's not only lost the leadership role but also been completely shut out of Kenney's leadership team. Kenney has also apparently gone to swift work firing any staff member who supported Brian Jean, and getting an MLA to step down to leave room for a by-election so he has his chance to win a seat in the Legislature.

Peace River will be one key battleground in the provincial election coming up in what UCP supporters believe will be the “2019 summer of repeal," if the fact the constituency saw visits from all three UCP leadership hopefuls in recent weeks is any indication. Even before the merger, the constituency was already seeing meetings featuring Wildrose MLAs from neighbouring constituencies speaking on issues like Bill 6, with the opposition eager to whip up discontent against the ruling government.

It makes sense the opposition is devoting a lot of time and energy to Peace River, considering how close the last provincial election result was in this constituency, with only a few hundred votes between our former PC MLA Frank Oberle and our current NDP MLA Debbie Jabbour. It's clear the UCP will be trying their hardest to take this constituency to the hard right and reclaim the MLA seat they feel the party is naturally entitled to here.

To that end, a new UCP constituency association held meetings in Peace River and La Crete (that bastion of religious conviction and extreme social conservatism) over the weekend, and elected its Executive Board on Halloween. The new leadership of the local party, according to their press release, consists of President Connie Teichroeb, Treasurer Will Petluk, Secretary Amy Murphy, and various VPs including Bob Blayone, Andy Gauvreau, Ernie Peters, and the Peace River Record-Gazette's own Shelly Shannon, the only remaining local staff member at the paper and someone who never seems all that concerned her political activity might lead to questions about potential media bias.

But who will actually run in the bid to become Peace River's next MLA? Controversial former CAO Kelly Bunn is already telling everyone who will listen that he is ready to throw his hat into the ring for the UCP, a fact he also confirmed to me directly on Facebook.

This is interesting for a couple of reasons. One is that (as far as I know, and I will correct if this is wrong) Bunn lives in or around Grimshaw, currently part of the constituency of Dunvegan-Central Peace and represented by Energy Minister Marg McCuaig-Boyd. However, if the proposed new constituency boundaries are put in place, Grimshaw will in fact become part of the Peace River constituency and won't require any parachuting in from Bunn.

More interesting still, however, is Bunn's controversial tenure as CAO for the Town of Peace River, his most recent political experience. Bunn is still in the midst of a major lawsuit against the Town after being let go after a performance review on the recommendation of the Cuff inspection, which identified his contract as problematic. 

The Cuff report listed the level of Bunn's compensation, the sheer length of his contract (9 years), and the two year payout requirement as significant factors, as well as the general lack of trust between the Mayor and CAO. Bunn's role as a developer in the same Town where he had a lot of administrative power certainly didn't help with the perception of his trustworthiness; nor did his apparently cozy relationship with former mayor Lorne Mann.

The Cuff report also noted the curious fact that the contract for CAO was not actually granted to Bunn himself, but to his company, Avant-Garde Inc., meaning Bunn was never really a direct employee of the Town, but rather an employee of a subcontractor working for the Town. Bunn's company was also still allowed to take on other work, even while working for the Town.

The report recommended that an independent performance review of Bunn be conducted within 60 days of the report, and after the Town followed this recommendation and had Holtby & Associates complete the review, the previous council voted against keeping Bunn on as CAO.

While the general public hasn't been privy to the information in the performance review, Bunn himself asked Council to rescind the April 13 motion to revoke his appointment and to “strike the CAO Performance Review document from all town records and that it not be considered in any decisions made by the Town of Peace River Council now or at any time in the future”. So suffice to say its contents likely did not reflect very favourably on Bunn.

Although he wasn't making as much when he was let go, Bunn's annual salary as per his original contract was $250,000 a year with benefits, potential bonuses, a vehicle allowance and a potential percentage increase due to inflation at the discretion of council. The payout for a “termination without cause” was two years salary at that rate.

That's the money Bunn, or more accurately his company Avant-Garde Inc., is now suing for: “in the sum of $542,501.45, or such other amount as may be awarded by this Honorable Court”; Interest on such amount at the prescribed rate in effective from time to time under the provisions of the Judgement Interest Act, R.S.A. 2000, c. J-1; (aforementioned) Aggravated, exemplary and/or punitive damages in the sum of $500,000; Costs on a solicitor and client basis and; such further or other relief as may be awarded by this Honorable Court.”

So, a cool half million, plus over $40,000 in change for legal costs and interest.

Bunn first tried to win that money with a “quick claim” from a legal figure in Alberta called “the Master.” The Master ruled that a quick claim wasn't possible, saying the case was too complex. He also ruled that Bunn/Avant-Garde had to pay the Town of Peace River's legal fees in that decision.

Bunn then appealed the Master's decision. A judge upheld the Master's original decision in a ruling June 23 of this year, again because the case is too complex. He also ruled that Bunn/Avant-Garde had to pay the Town of Peace River's legal fees.

This is interesting because Bunn has regularly claimed to be on the side of the taxpayer in Peace River and bemoaned the legal fees the Town has allegedly been paying to defend against his lawsuit.

“They [council] can’t let their personalities cost the Town of Peace River – which translates to the taxpayers of the town,” he told the Peace River Record-Gazette in their original article on the lawsuit.

In comments he posted to the small private conservative Facebook group Peace River Political Values on October 14 in response to questions on the case, Bunn also said, “To be very clear, it would have been my preference to continue serving the town of Peace River. Had the town allowed that to occur then they would have avoided all the unnecessary costs of consultants and lawyers and they would have retained an experienced individual that has shown unwavering commitment to the town for many years. That would have been the win/win scenario.”

“One thing I am certain of, however, is that if my termination was intended as a cost benefit to the town…it was a tremendous failure! Without consideration of the final settlement (because that has not yet been determined) the direct costs of legal, consulting, councilor honariums [sic] for in-camera/special meetings, recruitment costs for replacement etc. will far outweigh any differential between what the new CAO is receiving and what I was receiving. If you add in the indirect costs of employee disruptions and other terminations costs (remember it wasn’t only me that was released, there were at least 5 others that were also terminated shortly after me – a combined loss of over 100 years of municipal experience) as well as the loss of productivity that inevitably follows such a period of turmoil this has been anything but a cost saving measure.”

Bunn is making a very broad and arguable estimation of costs here, but it's still tough to believe even with all of that it would somehow add up to more than the half million plus of the taxpayer's money he is still trying to win in the lawsuit and that the Town has so far refused to pay. Remember, it's Peace River taxpayers' money that Bunn will get if he eventually wins the suit or the suit is settled.

And again, to date it's actually been Bunn/Avant-Garde Inc. on the hook for the Town's legal costs due to the outcome of the two rulings so far.

That second ruling, by the way, was interesting for more than just the outcome. The judge directly quoted an email from former Mayor Lorne Mann in the decision. The email from Mann was attached to an affadavit sworn by the current CAO, and was new evidence that hadn't been seen by the Master in his original decision. 

“...and if tenure not provided then the buy out/incentive to retain/poison pill/golden parachute...honest calculation of liquidated damages...and ensuring buy out is not too low for last few years to become a 'relatively cheaper then option to turf,' " Mann wrote, as quoted in the legal decision.

Mann also used some colourful language to describe possible future Town councils, again as quoted in the legal decision.

“Frankly I have so much invested in this Town...I want protection from any future quorum of socialist, social engineering, spendthrift, wing-nut, tax and burn, study & do nothing, biased “owned”...or other defects elected...that can neither restore our town, meet the expected rapid growth, ...whether I run again or not, whether I win again or not...”

As the judge said in his decision, “The Mayor appears to be advocating that, at least, the termination clause’s onerous provisions would be a means of discouraging a future council from exercising its right to terminate Mr. Bunn because of the large cost to the municipality.”

“The Mayor’s words do seem to indicate that his, at least, subjective intention was to fetter the power of future councils,” he wrote.

With Bunn's appeal denied, the suit will now head to court, probably sometime late next year. The newly elected Town council, whether comprised of “socialist, social engineering, spendthrift, wing-nut, tax and burn, study & do nothing, biased 'owned'” councillors or not, has the power to either continue fighting the lawsuit and go to court to avoid paying the half million bucks Bunn thinks he's owed - or to vote to settle with Bunn.

Will the new council vote to settle? That remains an open question. Failed mayoral candidate Jami Paras caused some raised eyebrows during the municipal election when he mentioned Bunn directly as an example of bad decisions on behalf of the mayor and council he was running to defeat, both in a Facebook post to his official page dated June 29 and in a later Facebook post on September 19 about meeting soon-to-be UCP leader Jason Kenney. In both posts on the since-deleted Page, Paras mentioned "high legal costs."

At the time it was Tony Nickonchuk, lover of statistics and the main administrator of the over 1000-member Peace River Politics group, who took the opportunity to ask Paras about the elephant in the room.

“You reference high legal bills as one source of expense you could cut. I'm assuming you're referring to ongoing legal challenges from the former CAO in order to collect a $500k severance,” he wrote in his comments. “If you become mayor, will you push council to end the towns legal fight and agree to face any financial implications that decision may entail? Getting rid of the expense of fighting it doesn't mean you'll get rid of all the expenses. I'm assuming the aim of the legal challenge is to see the $500k severance awarded. How does that compare to the legal expenses incurred to date?”

Paras demurred, simply repeating his pledges not to raise taxes and claiming he was only one potential vote, a claim this blog later cast doubt upon. But the question became even more important after Paras was revealed by this blog to have tried to goad the PRMHA into a lawsuit against the Town over the new arena, a lawsuit he promised to settle if elected. This begged the question whether he had promised to settle any other lawsuits, the most prominent and obvious lawsuit the Town was still facing being, of course, the one launched by Bunn.

In the end Town residents only granted Paras a scant 313 votes, the least of any candidate. The councillor who shared his campaign manager, Chelsey Friedt, was also not elected. Neither was Anna Aleksov, Bunn's former executive assistant who didn't stay in her position at the Town for long after Bunn's ouster.

That leaves the incumbent Mayor and the new council to handle the lawsuit, and that council is a mix of both new and familiar faces.

In the original vote to revoke Bunn's appointment, those who voted him out were (as reported by the Record-Gazette) incumbent Mayor Tom Tarpey and councillors Colin Needham, Orren Ford and Rod Burr; opposed were Deputy Mayor Elaine Manzer and councillors Tanin Behnke and Terry Sawchuk. Neither Behnke onr Sawchuk ran again in the most recent election. Manzer was re-elected, and Orren Ford also returned. After an initial mixup, official results showed Needham was re-elected and Rodd Burr was out. New councillors Johanna Downing and Byron Schamehorn also joined council, with incumbent Mayor Tom Tarpey winning again in a landslide, ending up with more votes than both Jami Paras and Sherry Hilton combined.

Meanwhile Don Good, who was formerly Deputy Mayor and generally a strong defender of Bunn at least as per his own words on behalf of council at the time, was also elected. When I asked him about Bunn's lawsuit during the election campaign, he replied on Facebook in an official statement.

“Generally, I believe that contracts made by government bodies at all levels should be adhered to, unless it can be demonstrated in a court of law that the recipient party of the contract acted in a way that would negate the legality of the contract.”

However, he also claimed ignorance of the details.

"So, based on my lack of any other knowledge of this particular issue I have no opinion. I'd prefer to have as many facts as I can get in front of me prior to coming to a decision. I find this the best way to proceed."

It's a bit hard, however, to believe Good hasn't at least read the Cuff report, or seen the legal decisions re the case to date.

By my count then, and I stress this is simply speculation based on past voting, it may well be an even split between councillors who might vote against settling with Bunn based on their past votes, and those who might be sympathetic enough to Bunn to vote in his favour. It will certainly be a bit harder though to get the vote outcome on the lawsuit Bunn may want with Tom Tarpey re-elected as Mayor than it might have been with someone as clearly sympathetic as mayoral candidate Jami Paras.

Which brings us back to Bunn's plans to run for the UCP. His plans to go after the candidacy mean he has incentive to get the case over and done with not only so he can get money, but because his legal issues may well complicate his quest to run for the UCP.

At the municipal level, the only thing that disqualifies a candidate is either unpaid municipal taxes/bills, or a previous election-related offence such as bribery. This is why a candidate with both a past forgery and DUI conviction has no legal problem running for Town council, although not surprisingly, he was not elected.

Once you get to the provincial and federal levels, however, political parties and leaders tend to be a bit more concerned about anything in a candidate's past that may lead to embarrassment or might not look good to voters, precisely because it may lower the candidate's chances of actually winning.

A good recent example of that is Jamie Lall, an independent candidate in the last provincial election. Lall had originally wanted to run for the PC's in Chestermere-Rocky View, but former Premier Jim Prentice said he wasn't allowed to run under the Tory banner because of a legal action against Lall in the past: a restraining order by a former girlfriend.

Generally, as Lall''s case shows, while only election-related offences legally prevent candidates running again at all levels, it's ultimately up to the party to decide whether a past legal entanglement might affect a potential candidate's chances.

With the leadership race only just ended, it's still early to know what the UCP will be looking for in their own candidates, aside, of course, from loyalty to Kenney. However, it's a safe bet to say that having any legal issues done and over with would be very helpful to anyone officially seeking any nomination. A win in court would obviously be the best case scenario for Bunn if the new council doesn't vote to settle before then.

On the other hand, some councillors might be tempted by the possibility of helping out a potential future MLA, too. That remains to be seen.

I only hope Bunn realizes that if he does run for the UCP in 2019, he'll actually have to run as himself this time, instead of trying to get the job under his company name.