Carol Altmann – The Terrier

Shrugs, a smirk and a question: when can we go home?

A sworn affidavit by Warrnambool Mayor Tony Herbert sets out what allegedly happened behind closed doors on the night former council CEO Peter Schneider was sacked just 18 months into his job.

And it is not pretty.

In fact, it’s brutal.

The 22-page affidavit was lodged in the Supreme Court on Monday in support of Mr Schneider’s civil action against the Warrnambool City Council, scheduled for a hearing on 1 February next year.

Cr Herbert’s sworn evidence, obtained from the court today, paints a damning picture of how Crs Kylie Gaston, Michael Neoh, David Owen and Sue Cassidy allegedly behaved during the confidential council meeting on 13 July, which saw Mr Schneider lose his head.

According to Cr Herbert, all four councillors point blank refused to discuss the reasons why they wanted Mr Schneider gone and stayed mute during a list of questions put to them by Crs Herbert, Peter Sycopoulis and Robert Anderson.

“Each time (we put a question) we were met with silence.

“That is, Cr Gaston stared back at me, said nothing, shrugged, shook her head and raised her hands in the air with her palms outstretched,” the affidavit says.

“On one occasion, Cr Cassidy simply smirked.

“After about half an hour, Cr Owen asked when the meeting would be finished, as he wanted to go home.

“I, and Crs Anderson and Sycopoulis were appalled and shocked at Councillor Owen’s attitude.”

Cr Herbert said after the motion was passed to sack Mr Schneider, Cr Gaston put forward a motion written on a piece of paper that would see Director of Community Development, Vikki King, appointed as Acting CEO.

“Prior to the meeting, neither I nor Crs Anderson and Sycopoulis had any knowledge of the proposal to appoint Ms King.

“(The four councillors) gave no reasons for, or justification, for selecting Ms King, requiring her to perform two roles, or increasing her remuneration.”

Cr Herbert said after the meeting, when he told Ms King she had been appointed as acting CEO, she “showed no surprise about the decision and did not ask for any details of her role or her remuneration”.

This reaction led him to conclude that Ms King had already been in discussions with at least one of the other four councillors.

The affidavit also claims Cr Gaston attempted to put forward a motion at this 13 July meeting which would have seen the public pay for legal advice received by the four councillors who voted to remove the CEO.

An invoice for this legal advice from Maddocks arrived at the council in June, with no indication of who had asked for the advice.

Cr Herbert’s statement says separate legal advice found the councillors had acted unlawfully in seeking this advice without the approval of the full council.

Cr Gaston’s motion did not eventuate because, Cr Herbert claims, the councillors were advised that they could not retrospectively approve the payment.

This invoice, according to the council, has since been withdrawn.

While Cr Herbert sworn evidence is yet to be tested in court, it underscores a growing sense that Mr Schneider’s management style was met with disapproval by some councillors very early into his contract.

Cr Herbert claims that Mr Schneider had in fact lost the support of Cr Gaston just three months into his job due to his approach in securing funding for the new library project.

“From my observations, Crs Gaston and Neoh were less comfortable working with Mr Schneider than they were with (former CEO Bruce) Anson.

“Because Mr Schneider sought to treat all councillors equally, Crs Gaston and Neoh had less influence than they had previously enjoyed, even after they had ceased being Mayors.”

According to Cr Herbert, he had a conversation with Cr Gaston in June 2019 – just four months after Mr Schneider started as CEO – where Cr Gaston allegedly said she wanted to remove Mr Schneider and replace him with a former CEO from another council.

“(Cr Gaston) suggested that ‘we could get (name removed by The Terrier) in the role for 12 months, settle everything down and then go again, possibly with a woman’.

I told Cr Gaston that I was not interested in her proposal.”

From that point on, according to Cr Herbert’s evidence, there was a series of events aimed at undermining or embarrassing Mr Schneider, who is now suing the council for a lack of natural justice and is seeking to be re-hired.

More tomorrow night.

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Carol Altmann – The Terrier

Tonight I want to pause and reflect on this simple fact: the Warrnambool City Council is now the subject of not one, not two, but three investigations.

One of those investigations is the Ombudsman’s inquiry into the misuse of corporate credit cards.

The second is the council’s own internal inquiry into these credit cards.

The third is a Worksafe investigation into alleged bullying.

And the fourth – revealed here on Friday afternoon – is an investigation by the Local Government Inspectorate into the sacking of the former CEO Peter Schneider by Crs Sue Cassidy, Mike Neoh, Kylie Gaston and David Owen.

What a freaking mess.

And all of it – ALL of it – will come at a cost to ratepayers, which is the bottom line of this latest disgraceful manoeuvring, backroom dealing and secrecy.

We are footing the bill.

We will pay for Mr Schneider’s payout, whatever that is, because we still don’t know.

The Four Horsemen involved in lopping off the CEO’s head were happy to swing the sword, but haven’t had the spine to reveal how much it will cost ratepayers, because that information will undoubtedly upset voters as they head toward the October election.

The councillors don’t want that bitter truth spoiling their campaigns.

Best to distract ratepayers with other shiny things, like bike paths and taverns and new grass at Reid Oval.

And the four councillors involved in the coup brought in all the lawyers they needed to get rid of Mr Schneider, and guess who pays for that?

We do.

How much was spent on these lawyers? We don’t know.

And who decided to get that legal advice?

It sure as heck wasn’t supported by all seven councillors, because three of them – Crs Tony Herbert, Peter Sycopoulis and Robert Anderson – were dead set against the whole idea.

This begs another key question: can four councillors rack up a legal bill without the approval of the other councillors?

I am no expert on the finer details of the Local Government Act but the Inspectorate is, and I hope it will pull this question apart during its investigation, because, as a ratepayer, I have a vested interest.

We all have a vested interest, because the four councillors involved have been spending my money – and yours – and we deserve to know the full story.

Rates notices are going out as we speak and blowing people away: I am getting messages every day from people shocked by how much we pay in Warrnambool compared to other cities.

I am also talking to people worried about what lies ahead as the full economic impact of the C19 virus kicks in.

And yet here are four of our councillors, blowing hundreds of thousands of dollars on lawyers and payouts for reasons which are all secret.

The inspectorate’s investigation will probably take some time, but my hope is that the four councillors who are now part of this investigation will step up themselves and tell the public the full story about this coup and the cost.

They know the truth.

As we inch closer toward the October election, there will be many shiny distractions and photo ops and promises, but the two things that I am hearing voters want the most right now are transparency and integrity.

Transparency and integrity.

Over to you, councillors.

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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

How to save $700,000 in seven days, instalment #5:

On the same night Warrnambool City councillors decided to explore breaking the rate cap – on December 3 last year – they also agreed to spend $450,000 to spruce up a single city roundabout.

That’s almost half a million dollars to beautify just one roundabout – at the corner of Kepler and Koroit streets – and they did it without a hint of irony.

Not one of the five councillors who supported potentially raising rates above 2.5% (Cr Peter Hulin voted against and Cr David Owen was absent) seemed concerned that they expect ratepayers to choose between paying more for services, or having services cut, while they plunge money into non-essential projects.

Like dressing up a roundabout.

The council will draw $450,000 from the city parking fund – putting that fund into deficit – to upgrade the roundabout by the end of this year.

This is the busy roundabout outside the Warrnambool Hotel and Ishka etc, which is no doubt unfriendly to pedestrians in its current state.

But improving pedestrian safety (more about that in a moment) and a $450,000 makeover are two separate issues here.

Mayor Tony Herbert was particularly enthusiastic about the improvements because, he says, Kepler St is “the next most important” CBD street after Liebig St.

“It doesn’t matter who occupies businesses there, but I believe that is the next street to get the work done,” he told the meeting.

As it happens, Mr Herbert does occupy a business there, with his office smack bang in the middle of Kepler St, in the Wyton’s cafe precinct.

Until last year, this intersection wasn’t even part of the city renewal plan, but it is now.

Now it will have bluestone paving wrapped around each corner foothpath and central lighting poles that allow for banners and decorations. (See the plan here).

The council calls this “high end aesthetic treatment” and there is no doubt it will be swish compared to boring old bitumen and basic lighting, but is it really necessary in a cost-cutting environment?

It’s a bit like fixing the electrical wiring in your house – for safety – and digging into your savings to replace all the light shades at the same time.

Because what started the momentum for this makeover was money from the Transport Accident Commission (TAC) to make the CBD safer for pedestrians.

The TAC will fund almost half of a $1.67 million upgrade to three CBD intersections, including the Kepler St/Koroit St roundabout.

The council will use that money to replicate those painful zebra crossings that are now in Liebig St and which make drivers give way to pedestrians as they enter and exit a roundabout.

(VicRoads, by the way, say this style of zebra crossing can work, but they also create a greater potential for rear-end accidents. But I digress…)

Having secured money to build the crossings, the council decided to go one step further.

It rummaged around behind the couch and found a neat $450,000 to throw into beautifying the Kepler St/Koroit St roundabout.

Importantly, such a makeover would also create a distraction from the fact the council has run out of money for Stage 3 of the CBD renewal along Koroit St, which is not surprising given the other two stages blew out by more than $3 million.

So from not being part of the CBD renewal, the Kepler/Koroit intersection now has star billing.

In fact it will probably be all that happens along Koroit St between Kepler and Liebig St for some time.

Even so, can new pavers and lamps really be a priority when the council says it must save $700,000 a year from its budget?

It’s too late to ask that question because the beautification is going ahead.

Your input, via the council’s online consultation that opened last Friday, is to decide what else you might like to see added to the works and when you would prefer the 12-week project to start.

There is no option to say, um, we don’t want that style of fender-bender zebra crossing and, by the way, can we also save the $450,000 for something more important?

There is actually no mention of the $450,000 cost of the “high end aesthetic treatment”.

This figure remained buried inside the council agenda and minutes: until now.

More tomorrow.

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Carol Altmann – The Terrier

The Warrnambool City Council is claiming its budget is tight, yet it spent more than $10,000 to send seven people – including the CEO of the Warrnambool Racing Club – to a tourism conference at a Mornington Peninsula resort last July.

The council has confirmed two councillors, WRC chief Peter Downs and four council staff attended the Victorian Tourism Industry Council annual conference held at the RACV Cape Schanck Resort from July 30-31.

The council has put the total bill for the conference at $9034, including $3934 in accommodation and $4830 in conference fees and only $270 in food.

I have received reliable information, however, that the final cost also included more than $1000 in drinks in the resort’s Lighthouse Lounge and more than $400 on meals and drinks in its cafe.

A council spokesman said “any food /drinks beyond (the $270) would have been settled by the individual(s) themselves as a personal expense”. Perhaps the big drinks bill was repaid, but I have not seen any evidence of that.

Those who attended the conference included now-mayor Tony Herbert, who is chair of the council’s Visitor Economy Advisory Committee, fellow committee member Cr David Owen (both funded their share through their councillor allowance), the council’s head of Visitor Economy, David McMahon, and three other council staff from Visitor Economy.

The final delegate was racing chief Mr Downs, who nominated and was chosen to join the council’s Visitor Economy Advisory Committee when it started in May 2017.

The conference, by the way, included sunset drinks at the St Andrews Beach boutique brewery which has been converted from first class racing stables and was worthy of a tweet from Mr Downs (see below).

There are two things about this story that don’t sit right.

First, as we know, the council is surveying ratepayers right now as part of a process to try and lift rates above the 2.5% cap.

The council is saying that it must save at least $700,000 a year for the next three years and the only two options we have been given are to either cut services, or raise rates.

Given this, what a double-standard – or perhaps a better word is insult – for the council to have sent seven people off to Cape Schanck to learn the latest in tourism trends, funded by an obviously healthy professional development budget.

The issue here is not only the money, but the mindset: while ratepayers have to expect cuts to services like childcare, council networking opportunities can roll on as normal.

The second unsettling aspect of this story is the inclusion of Mr Downs.

It is no secret that Mr Downs’, as CEO of the WRC, has been a major player in pushing for commercial racehorse training at Levy’s Beach, in the Belfast Coastal Reserve, and lobbying to make sure this happened.

In fact when Mr Downs was chosen for the council committee in 2017, it was just eight months after racehorse training was banned at Levy’s because of concerns raised by Aboriginal Victoria and the push by the WRC to get racehorses back on the beach was in full swing.

This council doesn’t seem overly fussed by potential conflicts of interest around the racehorse training issue, but I would have thought the decision to appoint Mr Downs’ to the visitor economy committee in the first place – given the political context – was questionable.

The issue here is not that Mr Downs has done anything wrong – he is only taking what is offered – but that the council considers all of it acceptable.

On any measure, Mr Downs has been given the sort of out-of-hours access to key members within council that others could only dream of, if they were lobbying in the same manner.

In this case, it has even paid the bill.

According to a lengthy council statement in response to my questions, Mr Downs was chosen for the conference after the council asked for “expressions of interest” from all six community members of its visitor economy committee and only Mr Downs responded.

The statement also says it is appropriate that Mr Downs is on the council committee, because the WRC is a significant player in the local economy and tourism.

Further, the council says, nothing about racehorse training or the Belfast Coastal Reserve Management Plan has been raised in the committee meetings. Nothing at all? Really? What about before the meetings, or after?

By coincidence, the final Belfast Coastal Reserve Management Plan, which said racehorse training should resume, came out during the tourism conference.

Was this hot potato raised during drinks at St Andrews brewery or over dinner at Cape Schanck? We don’t know.

We do know, however, that Cr Tony Herbert – within three days of becoming Mayor on October 29 last year – placed sorting out the racehorse training issue at the very top of his to-do list.

You can read the full council statement on this whole issue here. 

In a nutshell it justifies the conference by saying the council values professional development opportunities, that the funds came out of a professional development budget and that there were several important outcomes, including: a follow-up meeting by VTIC in Warrnambool, a range of new marketing tactics, valuable networking and contacts, and passing on “key learnings” to other staff and councillors.

Worth every cent? I will leave you to decide.

(Mr Downs was contacted for comment last week on this piece. He is yet to respond.)

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