Town of Bassendean: Agenda

back to the list of Agendas and Minutes >>>

TOWN OF BASSENDEAN

NOTICE OF A SPECIAL COUNCIL MEETING

Dear Council Member

A Special Meeting of the Council of the Town of Bassendean will be held in accordance with Section 5.4 of the Local Government Act 1995, in the Council Chamber, 48 Old Perth Road, Bassendean, on Tuesday 19 August 2008, commencing at 5.00pm.

The purpose of the meeting is to consider a process to be used for the selection and appointment of a CEO.

Mr G F EVERSHED

CHIEF EXECUTIVE OFFICER

15 August 2008

A G E N D A

1.0 DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS

2.0 ATTENDANCES, APOLOGIES & APPLICATIONS FOR LEAVE OF ABSENCE

Apologies

Cr Merfield

3.0 PUBLIC QUESTION TIME

4.0 REPORTS

4.1 Recruitment of a New Chief Executive Officer (Ref: Gary Evershed, CEO, Samantha Preston & Renae Galambos HR Officers)

Report Summary

Council needs to determine a process for the selection of the new Chief Executive Officer prior to advertising the position.
Key decisions were made by Council at a Special Meeting on 5 August 2008.
Further decisions are required to finalise the process to be used.

PURPOSE

To adopt a process and make key decisions relating to the appointment of a new CEO.

BACKGROUND

The Local Government Act requires the Town of Bassendean to approve a process to be used for the selection and appointment of a CEO for the local government before the position of CEO of the local government is advertised.

Council made key decisions on the process at the 5 August Special Council Meeting, however, several items were deferred for consideration at a Special Council meeting to be held prior to the Standing Committee meeting on 19 August 2008.

Key decisions already made include:

1. That Council advertises the salary package for the CEO position in the range $150,000 - $180,000 inclusive of base salary, private use of a vehicle, 9% superannuation, $1,200 for membership of professional associations and other incidental salary components plus an annual professional development allowance of $6,000.

2. That Council agrees to reimburse the appointed CEO for any relocation expenses to a maximum value of $10,000 after the CEO has been in the Town’s employment for six months.

3. That Council adopts the position description for the CEO position and notes the selection criteria which will be used to evaluate the applicant’s suitability and merit for the position.

4. That Council includes in the advertisement for the position, that the CEO performance based contract is for a period of 3 to 5 years.

5. That Council requires participating Councillors to sign a confidentiality agreement not to disclose the names of applicants or any other confidential information prior to the Council resolution to appoint the CEO.

6. That the Consultant will be the sole point of contact for applicants seeking further information about the position, and if necessary, the Consultant will seek further information from the Mayor.

7. That Council adopts a process that all Councillors are involved in the interviewing of short listed candidates with input from Mr Ron Back.

8. That Council authorises the Mayor and Deputy Mayor to jointly negotiate with the preferred candidate, assisted by Council’s solicitors, to finalise the employment contract for Council endorsement at the meeting where the new CEO is appointed.

9. Appoints Mr Graeme Haggart as Acting CEO from 23 August 2008 and that a report come back to Council at a Special Council meeting on other possible acting options.

10. That Council notes that the resolution to appoint a new CEO should include the words:

That the Council:

(a) believes that the person is suitably qualified for the position; and

(b) is satisfied* with the provisions of the proposed employment contract.

* NB: Requires an absolute majority

RELEVANT LAW AND POLICY

Local Govt Act 1995 (Relevant sections)

5.36. Local government employees

(1) A local government is to employ -

(a) a person to be the CEO of the local government; and

(2) A person is not to be employed in the position of CEO unless the council -

(a) believes that the person is suitably qualified for the position; and

(b) is satisfied* with the provisions of the proposed employment contract.

* Absolute majority required.

(4) If the position of CEO of a local government becomes vacant, it is to be advertised by the local government in the manner prescribed, and the advertisement is to contain such information with respect to the position as is prescribed.

5.39. Contracts for CEO’s and senior employees

(1) Subject to subsection (1a), the employment of a person who is a CEO or a senior employee is to be governed by a written contract in accordance with this section.

(1a) Despite subsection (1) —

(a) an employee may act in the position of a CEO or a senior employee for a term not exceeding one year without a written contract for the position in which he or she is acting; and

(2) A contract under this section—

(a) in the case of an acting or temporary position, cannot be for a term exceeding one year;

(b) in every other case, cannot be for a term exceeding 5 years.

(3) A contract under this section is of no effect unless—

(a) the expiry date is specified in the contract;

(b) there are specified in the contract performance criteria for the purpose of reviewing the person’s performance; and

(4) A contract under this section is to be renewable and subject to subsection (5), may be varied.

(5) A provision in, or condition of, an agreement or arrangement has no effect if it purports to affect the application of any provision of this section.

(6) Nothing in subsection (2) or (3)(a) prevents a contract for a period that is within the limits set out in subsection 2(a) or (b) from being terminated within that period on the happening of an event specified in the contract.

(7) A report made by the Salaries and Allowances Tribunal, under section 7A of the Salaries and Allowances Act 1975, containing recommendations as to the remuneration to be paid or provided to a CEO is to be taken into account by the local government before entering into, or renewing, a contract of employment with a CEO.

[Section 5.39 amended by No. 49 of 2004 s. 46(1)‑(3).]

5.40. Principles affecting employment by local governments

The following principles apply to a local government in respect of its employees -

(a) employees are to be selected and promoted in accordance with the principles of merit and equity;

(b) no power with regard to matters affecting employees is to be exercised on the basis of nepotism or patronage;

(d) there is to be no unlawful discrimination against employees or persons seeking employment by a local government on a ground referred to in the Equal Opportunity Act 1984 or on any other ground;

(e) employees are to be provided with safe and healthy working conditions in accordance with the Occupational Safety and Health Act 1984; and

(f) such other principles, not inconsistent with this Division, as may be prescribed.

Local Government (Administration) Regulations 1996 (Relevant sections)

18A. Advertisement for position of CEO or senior employee — s. 5.36(4) and 5.37(3)

(1) If a position of CEO, or of senior employee, of a local government becomes vacant, the local government is to advertise the position—

(a) on a notice board exhibited to the public at the local government’s offices, if the position is—

(i) to be filled on a part time basis by a person who is also employed by another local government; or

(ii) an acting position for a term not exceeding one year;

(b) otherwise, in a newspaper circulating generally throughout the State.

(2) An advertisement referred to in sub regulation (1) is to contain -

(a) the details of the remuneration and benefits offered;

(b) details of the place where applications for the position are to be submitted;

(d) the duration of the proposed contract;

(e) contact details for a person who can provide further information about the position; and

(f) any other information that the local government considers is relevant.

[Regulation 18A inserted in Gazette 31 Mar 2005 p. 1037-8; amended in Gazette 19 Aug 2005 p. 3872.]

18B. Matters to be included in contracts for CEO’s and senior employees — s. 5.39(3)(c)

For the purposes of section 5.39(3)(c), a contract governing the employment of a person who is a CEO, or a senior employee, of a local government is to provide for a maximum amount of money (or a method of calculating such an amount) to which the person is to be entitled if the contract is terminated before the expiry date, which amount is not to exceed whichever is the lesser of—

(a) the value of one year’s remuneration under the contract; or

(b) the value of the remuneration that the person would have been entitled to had the contract not been terminated.

[Regulation 18B inserted in Gazette 13 May 2005 p. 2086.]

18C. Selection and appointment process for CEO’s

The local government is to approve a process to be used for the selection and appointment of a CEO for the local government before the position of CEO of the local government is advertised.

[Regulation 18C inserted in Gazette 31 Mar 2005 p. 1038.]

18E. Offence to give false information in application for employment with local government

A person must not, in connection with an application for the position of CEO of a local government—

(a) make a statement, or give any information, as to academic, or other tertiary level, qualifications held by the applicant that the person knows is false in a material particular; or

(b) make a statement, or give any information, as to academic, or other tertiary level, qualifications held by the applicant which is false or misleading in a material particular, with reckless disregard as to whether or not the statement or information is false or misleading in a material particular.

Penalty: $5,000.

[Regulation 18E inserted in Gazette 31 Mar 2005 p. 1038-9; amended in Gazette 19 Aug 2005 p. 3872.]

18F. Remuneration and benefits of CEO to be as advertised

The remuneration and other benefits paid to a CEO on the appointment of the CEO are not to differ from the remuneration and benefits advertised for the position under section 5.36(4).

[Regulation 18F inserted in Gazette 31 Mar 2005 p. 1039.]

CONSULTATION

To assist in the recruitment process, the CEO authorised the HR Officers to obtain four quotations from prospective recruitment consultants and to obtain a draft contract of employment from McLeods Solicitors. These were presented to the Special Meeting but Council has asked for further nominations from consultants to do the recruitment task and for additional information on prospective external acting CEO’s.

OPTIONS

The Town must meet legislative requirements in relation to the advertising, selection an appointment of a new CEO. Key decisions in the process are required to be finalised.

COMMENT

The Town of Bassendean is to approve a process to be used for the selection and appointment of a CEO for the local government before the position of CEO of the local government is advertised.

Key decisions still needing to be made are:

1. Whether an external consultant will be appointed to assist with the short listing and processing of applications, referee checks, and management of the process from start to finish to ensure that the Council acts lawfully in its deliberations and decision making.

Comment: Council requested further information and this information is presented as an attachment to this report.

2. Finalising the arrangements for the Acting CEO Position

Comment: At the July OCM, Council resolved to appoint Mr Graeme Haggart as Acting CEO from 23 August 2008 and that a report come back to Council at a Special Council meeting on other possible acting options. The CEO provided a summary of advantages and disadvantages of internal vs external Acting CEO’s in the report to the July OCM.

The CEO contacted the CEO of LGMA(WA) seeking information on prospective external candidates to undertake the Acting CEO role. Nominations were followed up by telephone. For example the CEO contacted Mr Garry Brennan who is an ex-CEO of Bunbury and has recently had acting positions at Geraldton-Greenough and now Northam and Ms Anne Banks-McAllistair, ex Director Community Development at the City of Melville and ALGWA. Both were unavailable due to other engagements.

Mr David Vaughan was contacted and is available for an almost immediate start should he be required. Mr Vaughan recently retired from the Shire of Kalamunda after 14 successful years as the CEO (See attached CV). Mr Vaughan performed the role with distinction over many years and was elected the chairman of the CEO Advisory Committee for the EMRC in recognition by his peers of his leadership in the industry and region. The Shire of Kalamunda is a larger more complex local government than the Town of Bassendean and has undergone significant growth over the duration of Mr Vaughan’s term of appointment as CEO.

Mr Vaughan would be an experienced external CEO who would be able, if appointed, to make a significant contribution to the organisation and not just act in a caretaker mode.

Whilst performing the job with “fresh eyes” he would be capable of recognising process and governance improvements that can be made and implemented whilst he is in the position. A significant advantage of an external appointment is that it is less disruptive of other positions in the organisation and therefore work flow. (See previous report for advantages and disadvantages of internal and external appointments).

In addition, another advantage of appointing Mr Vaughan is that he is completely independent of the Town and has 14 years experience as a CEO in various difficult governance situations which could benefit the Town in working through any issues which are either current or which may arise in the near future. Mr Vaughan’s fee would be equivalent to the current CEO’s salary package so there would be little additional cost to the ratepayer in appointing Mr Vaughan as Acting CEO.

Councillors also sought information on the likely costs of undertaking the CEO recruitment process and information as to whether those costs can be absorbed within the existing budget or will require over budget expenditures. The recruitment of a CEO is a costly exercise and a list of costs in presented in spreadsheet in the attachments.

For example Councillors indicated a wish to advertise in the Weekend Australian Newspaper to provide additional national coverage to attract the widest choice of applicants. Advertising costs are listed as follows:

Source	Cost
West Australian x 2	$11,000
Weekend Australian	$7,000
Seek Website	$400
LG Job Directory	$517
Total	$18,917

In adopting the process, Council needs to determine whether to advertise in the Weekend Australian newspaper.

It is suggested that Council initially approves an over budget figure of up to $30,000 to meet the costs of the recruitment process. Any additional funds required will be put forward by way of Officer reports as required and the over budget expenditure will be included in the budget review where savings may be able be identified which will offset the over budget expenditures.

OFFICER RECOMMENDATION – ITEM 4.1

That Council:

1. Appoints as the recruitment consultants to assist Council in the selection and appointment of a new CEO;

2. Endorses the draft Employment Contract to be used as a negotiating document with the preferred applicant prior to a final version being presented to Council for adoption at the same time the CEO is appointed by Council resolution;

3. Approves the following process as a guide for the selection and appointment of a CEO prior to the position being advertised:

INDICATIVE DATE	RECRUITMENT TASK
Tuesday 5 August 2008	Special Meeting of Council to approve the process for the selection and appointment of a Chief Executive Officer.
Tuesday 19 August 2008	Second Special Meeting of Council to appoint a recruitment consultant and to approve the process for the selection and appointment of a Chief Executive Officer.
Saturday 30 August 2008	First advertisement placed in the Professional Appointments section of The West Australian Newspaper, Local Govt Job Directory and on relevant web-sites. Closing date to be in four weeks COB on 26/9/08.
Saturday 6 September 2008	Second advertisement placed in the Professional Appointments section of The West Australian Newspaper. Closing date to be in three weeks COB on 26/9/08.
Friday 5pm 26 September 2008	Closing date for all applications COB on 26/9/08.
29 September to 7 October 2008	Applications are shortlisted and Recruitment Consultant conducts preliminary interviews as required.
Tuesday 7 October 2008	Consultant provides Councillors with a list of all applicants with recommended shortlist and summary of a maximum of 6 applicants to Special Council Meeting for Council consideration and discussion to finalise shortlist and to approve shortlist of applicants for interview.

8 October to 10 October 2008	Recruitment Consultant confirms shortlisted candidates availability for interview and conducts reference checks with six short-listed applicants prior to interview to confirm suitability and any relative strengths and weaknesses.
Saturday 11 October 2008	Shortlisted candidates attend an interview with Councillors at the Town of Bassendean. 9am to 5pm.
Tuesday 14 October 2008	Special Meeting of Council to conduct second interview(s) if required and to review relative merits of interviewed candidates against selection criteria and endorse preferred applicant.
Wednesday 15 October to Friday 23 October 2008	Negotiations commence with preferred candidate to finalise contract. Preferred candidate obtains police clearance and pre placement medical examination prior to appointment.
Thursday & Friday 23 & 24 October 2008	Contract negotiations finalised and confidential report recommending appointment prepared for distribution to Councillors on 24 October 2008.
Tuesday 28 October 2008	OCM Council appoints new CEO
Wednesday 29 October 2008	Staff advised of Council’s decision on intranet and media release finalised by 5pm on Wednesday
February 2009	New Chief Executive Officer normally required to give three months notice. Successful applicant to commence in late January or early of February 2009.

4. Finalises the arrangements for the Acting CEO position; and

5. Notes the indicative costs involved in the recruitment process and approves over budget expenditure of up to $30,000 to initiate the recruitment of a new CEO.

5.0 CLOSURE