CEO sacking: prising open the clam of confidentiality

Acting W’bool City Council CEO Vicki King replaced CEO Peter Schneider who was sacked by the council just three months before the election. Images: WCC

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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Oh what a tangled web we weave in Warrnambool

Carol Altmann – The Terrier

Tight knit: I had plans to write today about the W’bool City Council election campaign being in full swing – it started with the knifing of the CEO and has gathered full strength now that Cr Mike “The Real Chief” Neoh starts popping up in the paper with all manner of either un-costed, outlandish or recycled ideas from years ago…..BUT…..

BUT this is too good not to share.

It’s a visual map put together by a reader showing a tiny corner of the spider web that operates in Warrnambool between our public boards, public institutions and authorities.

It’s the same map I sketched out in words last week on this page.

Wow! It looks like an FBI crime map, where the victim is Warrnambool, strangled by the thin, tight cord of mutually beneficial connections.

And this is only the merest skim across the surface of the ties between Lyndoch Living and WCC.

It doesn’t even touch on many of the most sought after boards and executive spots including the Warrnambool Racing Club, MPower, South-West TAFE, South West Healthcare, Wannon Water, Brophy, Regional Development Australia Barwon South West, Leadership Great South Coast, the Liberal Party, the Labor Party and all of the various partnerships, hook ups and cross fertilisation that happens behind the scenes.

Boiling steadily beneath the surface is a soup of new names and old, both well-known and less so, like Anson, McKenna, Philpott, Gaston, Ermacora, Rule, Waterhouse, Power, Nelson, Lane, Lee-Ack, Broekman, Cassidy, Boyle, Jeffers, Neoh, Wallis…around and around and around we go.

I will pluck out just one as an example: Steven Waterhouse. I don’t know Steven Waterhouse, but according to Linkedin he is General Manager at Wannon Water, Chair of South West TAFE, and Deputy Chair Warrnambool Racing Club. That’s a trifecta!

I am sure many regional cities could draw a similar map, but is it a good thing, or is it stifling? Is it mentoring, or is it controlling? Is it about maintaining power or sharing it?

All of these questions are swirling around my head as we prepare to vote for our next council.

This election, more than ever, is a chance for change at least within one public institution – a chance to break the mould. A fresh start, with fresh names, who you will come to know in coming weeks.

 

It is going to take a lot of hard work for these faces to bust through: to garner even a small corner of the thousands of dollars of free publicity that Cr Neoh, for example, has enjoyed for his recycled ideas, but I am hoping they can do it.

I don’t want someone on council who will have been there 20 years. That’s unhealthy in any democracy.

And I don’t want someone who is the puppet of someone else. That’s also unhealthy in any democracy.

If we want change, we are going to have work hard for it. I am ready and I hope you are too.




Unpicking the tight-knit connections of WCC and Lyndoch

Links: Lyndoch Living CEO Doreen Power, WCC Councillor Sue Cassidy, WCC planning chief Andrew Paton, WCC CEO Vikki King and Lyndoch board member Prof Rob Wallis.

Carol Altmann – The Terrier

Oooh Warrnambool can be a tight-knit little place and the knit between two of our biggest public institutions – Warrnambool City Council and Lyndoch Living – just got a little tighter with the unexpected elevation of Vikki King to council CEO.

While the seven councillors continue to rip each other’s heads off and try to justify why they treat the public like numbskulls (#whitenoise), I thought I would briefly turn the channel to another station and unpick at least one row in the roll-neck sweater of the Warrnambool club.

As we know, the crucial vote for Ms King being hand-picked for the top role by four of the seven councillors came from Councillor Sue Cassidy (or as someone accidentally, but prophetically, said as a spoonerism the other day, Coup Sassidy), so let’s start there.

(Needles up! Cast on…)

Cr Cassidy is a member of the Lyndoch Living board.

Cr Cassidy, owner of Unisexcuts hair salon, is close to the Lyndoch CEO Doreen Power and, together with Ms Power, is one of three directors of Lyndoch Healthcare Pty Ltd that was set up to oversee the Warrnambool Medical Clinic which was bought by Lyndoch last year.

The Warrnambool Medical Clinic is set to relocate at some point into a new, multi-million dollar “super clinic” being planned for Lyndoch.

The third director of Lyndoch Healthcare Pty Ltd is Andrew Paton. Mr Paton is the Director of City Growth – the head of planning – at the Warrnambool City Council.

He is also on the Lyndoch board.

Mr Paton is also part of the council’s Economic Development Advisory Committee, where Ms Power is one of the nine committee members.

Another Lyndoch board member is former Deakin academic and former Wannon Water deputy chair Professor Rob Wallis.

Prof Wallis is also the independent chair of the council’s Audit and Risk Committee.

Cr Cassidy also sits on that committee.

 

Prof Wallis, as it happens, was also until recently one of two independent people on the council’s Chief Executive Employment Matters Advisory Committee, which advised on matters to do with the CEO.

That was until last week when, according to the Standard, he resigned in the wake of the unprecedented coup against CEO Peter Schneider.

Cr Cassidy was part of that coup, which loops us right back around and up and down to the new council CEO, Ms King.

Prior to being anointed CEO, Ms King already had connections to her Lyndoch counterpart, Ms Power.

They were both members of Beyond the Bell – a local network to encourage and support children in education – around 2016-17 when the program went through a period of transition on the back of receiving significant government funding.

As a result of that transition, Brophy CEO Francis Broekman became chair.

As an aside, Mr Broekman is the husband of former Mayor and long-term councillor Jacinta Ermacora who is now chair of Wannon Water. The CEO of Wannon Water, Andrew Jeffers, is on the board of Beyond the Bell.

Up and over and around we go….knit one, pearl one….but I digress.

Ms King and Ms Power are also on the executive committee of the South West Primary Care Partnership which is a collective of health service agencies.

Ms Power is chair and Ms King is deputy chair of this network.

The partnership itself, as of last year, is now included in the financial statements of Lyndoch Living.

Some of the SWPHP members have also been involved in the transition of the Warrnambool Medical Clinic over to Lyndoch’s control and ownership.

(Needles down. Cast off…)

This little knitting exercise is not only interesting for the links between these WCC and Lyndoch – but also for where they sit in terms of public accountability.

Both Lyndoch Living and WCC are arguably in the middle of unprecedented change and will face ongoing questions from us, the public, whom they serve, about their operations, direction, expenditure and staff morale.

It will be fascinating to watch how these questions are handled in coming months, as we enter annual general report time, annual general meeting time, and council elections.

Will we see greater transparency and openness, or will the wool be once again pulled over our eyes?

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Councillors become king makers, but the secrecy remains

In charge: former WCC Community Development manager Vikki King was chosen by the leaders of last week’s coup to replace the sitting CEO Peter Schneider. Image: WCC

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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