For those of you still wondering and still confused, I did a little digging after Mr. Clarke announced he would be running for the leadership of the provincial PC party. There is specific information here for Nova Scotia, and the quote is:
"For elected officials considering a move to or from a municipal council, there does not appear to be any prohibition on retaining their current seat while running."
So it looks like he's well within his rights to do both at the same time.
Should he? Well, I guess that's up for debate. Obviously.
PDF Heather Webb This paper identifies, by jurisdiction, statutory provisions that affect holders of elected office intending to stand as candidates for...
http://www.revparl.ca/english/issue.asp?param=222&art=1631
Canadian Parliamentary Review - Article
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Dannie Brown
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https://capebreton.lokol.me/canadian-parliamentary-review---article
Mayor Clarke within his rights to keep his role as Mayor while seeking PC Leadership.
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