It wasn't so much city officials as the mayor. I always felt that maybe she wanted him out of the way for other reasons. It just didn't really seem that much of a threat yet. She didn't she if maybe Dr. Klein could help him get his powers back under control. It was just more like he's had a few accidents with no one really hurt, but lets take him out just to be sure. That seemed way to drastic to me especially considering all the good he did for the city and you didn't hear the citizens calling for his removal.
As for fanfic covering this idea yes there has at least been one story that mentions it after the fact but I don't remember which one.
