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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Exclusive

Carol Altmann – The Terrier

The Local Government Inspectorate has launched an official investigation into the sacking of former Warrnambool City Council chief executive officer Peter Schneider.

Acting Chief Municipal Inspector Dr John Lynch confirmed the investigation this afternoon in response to questions from The Terrier.

“The Local Government Inspectorate is investigating matters relating to the recent termination of a CEO contract at Warrnambool City Council,” he said.

The LGI is Victoria’s top, independent watchdog over local government and has powers to investigate, audit and prosecute breaches of the Local Government Act.

Dr Lynch said he was unable to provide any detail on the scope of the investigation while it is underway.

“The Inspectorate deals with complaints or requests for investigation in strict confidence and does not provide information that may compromise current investigations.

(It) will be able to provide further comment when the investigation is completed,” he said.

While the depth and breadth of the LGI’s investigation is confidential, there has been mounting speculation and public unrest around the circumstances that led to the sudden dumping of Mr Schneider on 13 July.

Mr Schneider, who had relocated from Perth to take up the position in February 2019, was sacked after just 18 months in the job.

The dismissal happened behind closed doors, with four councillors – Crs Michael Neoh, Kylie Gaston, David Owen and Sue Cassidy – voting as one and using a “no reason” clause in Mr Schneider’s contract to dump him.

The council’s Community Development Manager Vikki King was then immediately appointed acting CEO for up to 12 months. Ms King now holds both positions.

Confirmation of the investigation comes as Cr Sue Cassidy today announced she would run again in the October election.

Former mayors Crs Neoh and Gaston have already declared they will run again.

Cr Owen is yet to make an announcement.

Mayor Tony Herbert, Cr Robert Anderson and Cr Peter Sycopoulis all voted against Mr Schneider’s sacking and have remained vocal in their support for the former CEO.

While it’s still not known why Mr Schneider was sacked, it is known is that rumblings of discontent among the four councillors behind the coup started as early as February.

Despite this, Mr Schneider went on to pass his performance review and received a pay rise as a result.

The discontent reignited in June, with Cr Neoh demanding the release of key findings of the latest WCC staff survey results – something he had never done in his previous 16 years on council – telling the Standard on 28 June he held “grave concerns” about the results.

That same month, on 22 June, the annual community satisfaction survey showed the WCC had hit an all time low.

Mr Schneider was sacked just three weeks later. He is now pursuing his own legal action against the four councillors involved.

The four councillors have refused to disclose how much the coup will cost ratepayers, but it’s expected to run into hundreds of thousands of dollars.

The LGI investigation is the second major investigation into the council as it limps toward the October election, with the Victorian Ombudsman still to release her report into the misuse of council credit cards.

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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

The votes are in and….drum roll…. Warrnambool City Cr Mike Neoh has won Stunt of the Year, even though it’s only July.

Cr Neoh’s bold, Superman-underpants call for the WCC staff survey results to be released was never going to happen and he knew it.

Former CEO Bruce Anson would not release them. Former CEO Peter Schneider would not release them. And guess what? (Envelope please….)

New CEO Vikki King – anointed to the post this week by Cr Neoh and three other councillors – won’t release them either!

What a stellar performance of bullshite at its best!

So here we are, none the wiser as to what evidence pressed the eject seat under former CEO Schneider on Monday night.

I asked all the councillors today whether they would press Ms King to release the results.

Only Mayor Tony Herbert replied. His reply is worth reading in full and so I am posting it below.

Our council is broken, bleeding and stinks to high heaven. More to come, in coming days.

From Mayor Herbert:

“Thanks for your question.

As stated previously, the staff survey this year as with other years, was conducted with a high level of confidentiality which I believe must be respected. Maybe the next one, if staff were informed that their results in whatever format council decides, are going to be made public and the staff are aware of this, I might support being made public.

The staff already feel they are under the community microscope with the various forms of media ready to publicise anything they do wrong. Everyone makes mistakes, but it’s becoming too public.

Myself, I have doubts about the motives behind the call for staff survey results being made public.

It’s such an operational issue and as I used to be reminded regularly about this in my early days as a new councillor.

The staff, and all their related issues are the sole responsibility of the CEO. Surely staff survey results ,whether it be detail or higher level is for the CEO to decide not individual councillors. Councillors don’t actually have the control to do whatever they wish. They have to first and foremost act within the WCC code of conduct and the Act.

Given the staff sentiment also at the moment, I would prefer the staff to feel our genuine care for them rather than further humiliating them.

There was a staff suicide last year and many of them are still dealing with that event. They need support not more public attention.

Thanks for your query, but it’s a resounding “no support” from me.”