The outcome is not affected. The outgoing chair should have presided, and in his absence the outgoing vice chair.
But the outgoing chair cannot be forced to preside, and refusal to preside has to be treated as if they were not present. The decisions made by the meeting, including the election of a new chair, are perfectly valid.
Since the vice chair was elected as a councillor, they had an original vote on the selection of the new chair, and also in the case of a tie, a casting vote by virtue of presiding over the meeting.
It is not the person who has a title that has the casting vote, it is the person who is presiding at the meeting.
(Had the outgoing chairman presided, they would have had only a casting vote).