Carol Altmann – The Terrier

Well this is intriguing – the release of the non-confidential part of the minutes from the Warrnambool City Council meeting where CEO Peter Schneider lost his head.

The minutes prise open, just a little, the tight clam shell around what happened that night of the long knives on 13 July, including the following facts:

Mr Schneider was sacked using a “no reason” clause in his contract;

The motion to sack the CEO was moved by Cr Kylie Gaston and seconded by Cr Sue Cassidy;

This same motion offered the role to the council’s Community Services director, Vikki King, who would start the very next day, 14 July;

Ms King was given a fresh set of “priority” goals or KPIs (key performance indicators);

The recruitment of a new CEO will start after the next council election in October;

The new Mayor – whoever that will be – will start that recruitment process;

The whole meeting lasted less than 90 minutes;

Mr Schneider was in the meeting for three minutes;

The council’s Director of Corporate Strategies, Peter Utri, and former Moyne CEO Graham Shiells, who is now a local government consultant, took the minutes;

Cr Peter Sycopoulis was the sole councillor to vote against the meeting going into confidence.

So we now know the council sacked the CEO without having to give a reason and did so before the next elected council, or Mayor, could have any say in the matter.

[As an aside, if the council elections are postponed because of Covid 19, the Mayoral election will still go ahead when Cr Tony Herbert’s time expires in November.

Given the 4/3 divide, Cr Herbert will not be Mayor again.

Cr Mike Neoh has already said he wants to run for Mayor a sixth time, and Cr Sue Cassidy is champing at the bit, so if the elections are postponed, the new Mayor will be one of the Four Horsemen who lopped off Schneider’s head.].

So what was the motivation behind this coup?

We still don’t know, but there are suspicions and theories, as there always is when there is secrecy.

One theory is the CEO became unpopular while cutting staff to save the council money, because, as our Mayor told us, the council was “unsustainable in its current form”.

The Mayor was quite right.

At least $31 million a year – every single dollar collected in rates – was going toward 730 staff salaries, and the number of people on $100,000-a-year-plus was growing.

In fact figures given by the council to a parliamentary inquiry in 2016 said the council had 21 officers each earning a total salary package of more than $120,000 a year.

That sounds like a top-heavy outfit to me, especially for a city of only 35,000 people. 

Many senior positions remained vacant under Mr Schneider’s rule.

As it happens, Ms King’s own five-year contract was due to expire in early August.

Mr Schneider might have been on to something in terms of removing or blending jobs, because Ms King is now both acting CEO AND head of Community Services.

Wow, talk about multi-tasking.

Another position to keep an eye on is the Governance Officer, a $140,000 a year role created under former CEO Bruce Anson, which has been vacant since December.

The previous person in the job, Anne-Marie Neal, is taking the council to court in a WorkCover claim over a series of events that is also subject to much speculation.

In the meantime, applications to fill that role closed on 24 July.

There is a lot going on, and there is still a lot to uncover – but uncover it, we will.

[For some unexplained reason, the 13 July minutes made available remain “unconfirmed” despite being voted on at the August meeting. I have asked why. The minutes, which must be published under the Local Govt Act, were released after requests from terriers. You can read them here.]

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Carol Altmann – The Terrier

Ding! Ding! It’s last drinks at the Warrnambool City Council as we have known it for the past decade, with fresh faces stepping up for the election and the old crew failing to fire.

We may see, at last, a permanent end to what I will call the Anson era (aka, the dark, old days).

In this past fortnight we have seen a flurry of exciting new candidates – Jim Burke, Otha Akoch, Tracey Togni, Ben Blain, Cassandra Prigg – with more names yet to come before the 22 September deadline.

By sharp contrast, the announcement by veteran councillors Kylie Gaston (8 years/twice Mayor) and Mike Neoh (16 years/ five times Mayor) that that they will both run again went down like a lead balloon.

(Strangely, Cr Neoh also announced he would run for Mayor, for a sixth time, before that part of the newspaper story online suddenly disappeared.)

That’s because the ratepayers and residents of Warrnambool have wised up.

To put it bluntly, they no longer fall for spin, gas lighting, or the lack of taking any responsibility whatsoever for poor decisions and costly mistakes.

For while Crs Neoh, Gaston and the other five sitting councillors have all made a contribution to public life, they have also overseen a period where the councillors have completely lost the trust of the people – and for good reason.

You can’t talk about being open and upfront and then have four councillors knife a CEO behind closed doors just three months before an election, with no evidence or explanation as to why, and install a person from within whose five-year contract was about to expire.

All of this was done, of course, without telling ratepayers how much the coup will cost them in legal fees and payouts.

And who could possibly describe the rorting of ratepayers’ money through the abuse of council corporate credit cards as a “blip”?

Who does that?

Cr Gaston did and, in my mind, it is both unforgivable and so telling, because it reveals a mindset among councillors where public image is more important than public accountability.

It’s this mindset that has plagued our council for at least 10 years, at enormous expense to ratepayers and residents.

The current batch of councillors, except, perhaps, for Cr Sycopoulis who spent years challenging the dominant forces, have been part of this.

We know, for example, that the Liebig St upgrade – trumpeted as a huge success – blew out by almost $5 million.

And poor old Flagstaff Hill has cost more than $10 million to keep afloat since it began to die in 2009, including $3 million for a sound and light show that was doomed from the start.

Instead of telling us the truth, the council reports on Flagstaff Hill told us fibs, before they stopped telling us anything at all.

Ratepayers also spent more than $6 million propping up the Fun4Kids festival because the council had nothing else in the wings to replace it.

And just last year, there was no money to spend on repairing and maintaining basic things like footpaths and bridges, yet the councillors agreed to spend $775,000 on two toilet blocks and almost $500,000 on a single roundabout in Kepler St.

Many of the current councillors were part of all this.

Rates had to be increased by double the state cap, because we were so broke, yet Crs Neoh, Gaston and Anderson, as Mayors, kept reassuring us that the budget was strong.

It wasn’t. It was weak, and it’s going to get much weaker.

This year’s budget already has a $10 million hole from the impact of Covid-19, which is far from over, and the blowout will most likely get worse before it gets better.

We are potentially facing a devastating financial and social crisis in the next 12 months and yet what do we get from most of our councillors? We get more fairytales.

First we are told the council is considering selling Flagstaff Hill, but it’s prime Crown land and it can’t be sold – nor should it be sold – without good reason and special permission from the state.

The ink had barely dried on that fairytale before Cr Gaston, in announcing her candidacy, said she wanted to keep Flagstaff Hill, reopen the pub and…drumroll… link the whole place to Lake Pertobe.

This “new idea” has been around since 2013, when it was raised as one of the ways to stop Flagstaff Hill from bleeding to death.

At that time, the majority of councillors  – including Cr Gaston and with Cr Neoh as Mayor – pushed for the sound and light show…. and blew another few million dollars.

Cr Neoh, meanwhile, recently announced as his big new idea a walking/bike path from Lake Gillear to Childer’s Cove.

As candidate Jim Burke discovered in his research, this “new idea”  has been around since 2005,  a year after Cr Neoh was first elected – 16 years ago. (See above)

Nothing happened.

It’s all just more spin, more puff and more distraction from a legacy littered with waste.

Even if we wanted to believe in these fairytales, we can’t afford them, and the people of Warrnambool know it.

We are wide awake to what is going on.

Despite the attempts to keep us in the dark, we have been turning on the lights and we can see an entirely different future to one that is just more of the same.

That future, if Warrnambool really wants it, starts with choosing an entirely fresh council in October.

I’ll drink to that.

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Carol Altmann – The Terrier

Lawyers for sacked Warrnambool City Council CEO Peter Schneider have issued defamation proceedings against four councillors.

Those four councillors are Cr Mike Neoh, Cr Kylie Gaston, Cr Sue Cassidy and Cr David Owen.

This partly explains the flurry of confidential business happening behind closed doors at the council meeting last night.

The second matter, according to sources, is believed to relate to lawyers for Mr Schneider arguing that he be reinstated as CEO: in other words, he gets his job back.

There is a precedent for such a thing, with a sacked CEO of Logan City Council, in Queensland, being given her job back after challenging the motives of the seven councillors who deposed her.

Wouldn’t that be a turn up for the books!

With the council elections just two months away and a new council to be elected, it may not be as unthinkable as it sounds.

And the third matter, twisted up in all of the above, is understood to be a heated, ding-dong, hair-pulling (except for Cr Sycopoulis, no offence to him), full-blooded barney over who should pay for the legal expenses racked up so far and those yet to come.

Should it be the individual councillors involved in the coup? Should it be ratepayers?

Discuss.

I emailed all seven councillors today to ask for comment on the legal action, whether ratepayers would be footing the bill, and how much had been spent so far on council lawyers.

Only three replied by deadline and no prizes for guessing who.

Here are their statements in full:

Mayor Tony Herbert:
“Thanks for your email.

As you are aware I am unfortunately unable to confirm most of your queries although some of the info might be able to be sought through channels of FOI. We lost the resolution on the night of the 13th July regarding confidentiality.

It is a very unfortunate situation the council has decided to thrust itself into especially in light of the further and greater impacts of the pandemic on council, staff, council budgets and our community ongoing.

I certainly would have preferred when such significant costs have been incurred, to have spent funds in a more productive and positive way…as a stimulus for our community post COVID for example.

I also implored councillors on a number of occasions to take alternative actions to manage our CEO  through discussion and negotiations rather than this drastic and expensive action as our only management tool!

As far as legal costs questions, I’m unable to comment at this time.

Hopefully things will become clearer.

One thing I will add further, is that personally,  I feel the community has a right to know what happened in the lead up to the sudden termination, reasons for  the termination and also the costs.”

Cr Robert Anderson: 

“Thank you for your email Carol, unfortunately because of the confidentiality on the above subject I am unable to make any comment.”

Cr Peter Sycopoulis:

“Thank you for your enquiry. Due to confidentiality requirements, I am not at liberty to provide an answer to your questions. What I can confirm however, is that I personally have not received correspondence from any law firm in relation to this matter.”

So the council is about to enter a legal shitestorm, to be frank, and – so far – we are officially being told nothing.

Please keep this in mind when we all vote in October.

Think about integrity, transparency, openness, honesty, accountability and the-right-to-know: these, to me, are now the key themes of election 2020.

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Carol Altmann – The Terrier

This past week has seen two extremely serious issues arise at Lyndoch Living aged care in the face of the Covid-19 pandemic and yet the response from the board is a wall of silence.

First, Lyndoch only issued masks to all of its staff yesterday: 12 days after the Federal health minister declared masks mandatory for staff in all aged care homes in Victoria.

Second, Lyndoch allowed two people from Melbourne into its facility last Thursday and Friday, despite that city being in full lockdown and a declaration from the Victorian Chief Health Officer that, as of last Wednesday night, tightened access to aged care homes even further.

Carol Altmann – The Terrier

I asked a simple question of the Warrnambool City Council last Friday: could I have the CV of our new CEO?

The answer was no.

Secrecy is so ingrained in the Warrnambool City Council that ratepayers are not allowed to see the CV of the person who we will potentially* pay around $340,000 – or $26,000 a month for the next 12 months – to run our city.

*(Edit: I have added the word potentially, as this was around the mark for the former CEO, Peter Schneider. Another former CEO, Bruce Anson, received a package of $320,000 in his final year. These salaries are in line with what is offered in “Band 2” councils which include W’bool. The WCC has not disclosed the package for the new CEO.)

As we know, the council’s head of Community Development, Vikki King, was thrust into the top spot by the Four Horsemen who decided to axe Peter Schneider and replace him with the person they wanted in the job.

Given this extraordinary turn of events, I thought it logical that we, as ratepayers, should see the credentials and work history of the person we just “hired” as our chief executive.

The request was denied by Ms King herself.

Here we go again.

It’s just a few weeks since the release of the community survey which showed the people of Warrnambool have had a gill full of being treated like shiitakes, but nothing has changed and, if the past week is any guide, it’s worse.

We were not told by our councillors that the former CEO was about to be sacked, or why, and in some sort of perverse charade the councillors spent the last monthly meeting congratulating themselves many times over for their brilliance.

We also don’t know the cost of this whole set up, and because the coup conveniently happened after 30 June, that cost won’t be included in this year’s annual report.

Amidst all this darkness, it’s the terriers who have to do the digging and delving and poke holes into the walls so that the light gets in.

As I say many times over, scrutiny of our council is not about personalities, but process: when decisions are made on behalf of the public, and involve public money, we have a right to know.

So what do we know?

Well, we know Ms King has been with the council for five years as head of Community Development and, according to some of those who worked with her over that time, is known as “a straight shooter”.

As it happens, Ms King’s contract was due to end in August and who knows what that meant for Ms King’s plans or her future with the WCC?

It doesn’t matter now, because Crs Neoh, Gaston, Cassidy and Owen had Ms King pegged for a whole new post and signed her up for a full 12 months, all without asking the Mayor or the other two councillors.

They didn’t even bother to put an ad on the tearoom noticeboard: “Vacancy. Long hours. Pays well.”

Ms King told the local newspaper last week that she had no idea what was coming.

Judging by the evidence put forward so far by Mayor Tony Herbert, neither did Mr Schneider, who had passed his performance reviews and received a pay rise before being booted out the door without so much as a farewell speech and a WCC tie-pin.

Ironically, Mr Schneider’s departure is the latest in a string of senior resignations from the council these past 12 months under his watch.

Among them was head of governance Anne-Marie Neal, who reported directly to the CEO – both Bruce Anson, and then Mr Schneider – before she departed suddenly late last year without any explanation or comment by the council.

A reader alerted me to a case listed in the Magistrate’s Court for September involving a worker’s compensation claim between Ms Neal and the WCC, so perhaps the circumstances surrounding that situation will soon become clearer.

Another three senior managers have also resigned in the past six months: Manager Economic Development Shaun Miller, Facilities and Projects Manager Ben Storey and, most recently, Director City Infrastructure Scott Cavanagh.

The council itself now has more holes than Swiss cheese and the councillors have never been more divided, with many now asking the same question: how did it get this bad?

And as the Warrnambool Ratepayers Association asked at the weekend, where to from here to turn it around?

As we head toward an election on October 24 and have a chance to determine who runs our city, both behind the scenes and up front, these questions have never been more important.

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