The Council held a public hearing on Wednesday to hear Carroll's appeal for his termination. Council members Penny Thacker and Larry Sellers were not in attendance.
Leister and the Council decided to remove the separation letter from his file in light of Carroll's decision to formally resign.
Leister terminated Carroll's employment in March. Carroll received the letter of separation March 16, but said his last day on the job was technically March 8.
Carroll spoke to the Council and said he was "disheartened" that he had to take this route.
"I want to get this cleared up so I can move on with my career," he said.
Carroll contended the Mayor had no powers to terminate his employment and said he believed the termination was contingent upon council's approval.
Under the city's charter, the mayor has powers to appoint and remove with cause department heads, officers and all employees in the city.
The charter also allows for the employee removed from his or her duties a right to appeal the decision to the council during a public meeting. The council can then affirm or reject the mayor's decision.
Leister said he was "deeply disappointed" that he had to make the decision to fire Carroll.
Leister, who refused to discuss the reasons for Carroll's termination, said he wanted to avoid any further consequences for Carroll.
"My efforts are not to negatively affect your ability to support your wife and your new baby," he said to Carroll. "Nobody hates you."
Carroll's attorney, David Smith of Rome-based Smith, Lewis and Haley, said he believed the outcome was "probably the best outcome for the city and my client."
Smith said he wasn't able to discuss whether or not he encouraged Carroll to tender a resignation letter, but said they both discussed the matter extensively.
He said Carroll's decision to resign would allow him to move forward with his career. He noted that Carroll is actively pursuing employment with other law enforcement agencies.
Carroll was hired as the interim police chief by former mayor Bill Walker after the December 2008 death of former Chief Clay Adams.
Along with Carroll, the police department had a part-time officer, Jim Van Alstine. However, Van Alstine left the department earlier this month for a position at another law enforcement agency.
Leister is actively searching for Carroll's replacement and has heard back from at least 15 potential applicants expressing interest in the position.
Now that the department is vacant, both the Cherokee Sheriff's Office and the Pickens County Sheriff's Department have been making routine patrols throughout the city and are responding to calls from both Pickens and Cherokee 911 dispatch centers.
Councilman Jim Ingram said he agreed with the Mayor's decision to terminate Carroll's employment.
Ingram said the way the department was run was not beneficial to the city's residents.
"It was something that should have been taken care of before now," he said.