Are South Australia’s Council CEOs paid too much?

LOCAL government chief executives in the past year have been awarded average pay rises of 7 per cent or up to $75,000.  The state's 19 metropolitan council CEOs are on average salary packages of more than $220,000.  One is even paid more than Prime Minister Kevin Rudd.  The average annual pay rise for CEOs to September this year was $14,469, while the average Australian worker's annual salary rose only $1768, from $46,228 to $47,996.  The Local Government Association claims that increases in private sector salaries have forced councils to raise the pay packets of their chief executives, .

The revelations come amid fresh calls from business and community leaders for Adelaide to cut council numbers and reduce the overall wages bill in local government.  LGA executive director Wendy Campana yesterday said "runaway" private sector salaries had forced councils to pay more for their CEOs.  "The simple truth is that you need to pay these sorts of numbers in the public sector relative to the size of an organisation to get the right sort of applicants," she said.  "This is our biggest problem, that we are shopping in the same market as the private sector, and that market continues to grow extremely strongly."

The Opposition wants South Australia's Local Government Minister to set up an independent body to review the salaries of council chief executives, but the Government says it has no power to do so.  Opposition MP Mark Goldsworthy says some CEOs earn more than the Premier.  "I actually think it's time we open this whole matter up and actually appoint an independent person, an independent body, to review the whole matter around CEO salaries," he said.  "Minister [Gail] Gago would have to call for that investigation and I think it's time that we did it."

http://www.abc.net.au/news/stories/2009/09/21/2691357.htm, http://www.news.com.au/adelaidenow/story/0,27574,26102194-2682,00.html, http://www.news.com.au/adelaidenow/story/0,27574,26106770-2682,00.html

The price of vigilance

The former information technology (IT) manager for the City of Whittlesea, Massimo Giordano, is one of three Melbourne men who have been jailed after defrauding the Victorian council of more than $2.5 million over a period of three years.  The County Court heard Giordano, 43, his brother Frank Giordan, 47, and friend Salvatore Cosentino, 55, issued false invoices to the council for IT equipment.  The scheme was uncovered when an accountant examined the council's financial records.

More electronic services development activity

Newcastle Council is the latest Council to be seeking development of its property information management system to enable e—government.  TenderLink and the Council’s Web site advises of a tender seeking the provision of a web enabled information management software system and the professional services needed to manage and carry out activities associated with its design, development, testing, training, implementation, and ongoing support.  The software system will be used for the electronic management of information and services related to Council's land, property and regulatory activities.

Not so open government

Busselton Shire Council’s “confidential” sessions are being leaked to the local media, it seems.  Outgoing shire councillor Bernie Masters wants action taken against councillors he claims leaked information on the confidential item last week that saw shire CEO Andrew Macnish terminate his contract.  Cr Hartley told councillors last Wednesday that another confidential item was coming up and if the same thing happened and if similar “rubbish” was in the media again he would be on to it “like a ton of bricks”.  He even spelt out the word ‘confidential’, just to get the message across, and said that the Department of Local Government had been informed.

In his urgent motion Cr Masters wants the council to note the publication in last week’s Mail of an article relating to the council meeting on September 9, when it was agreed in confidential session that the employment of Mr Macnish was to be terminated.  He also wants it to note that the article contained quotes and references to the confidential session of that meeting, which could only have been provided to the newspaper’s journalist Rob Bennett by a councillor or councillors.  As well, he wants the council to express its extreme disappointment that the Mail had chosen to publish information that the council considered to be strictly confidential, and rebuke the councillor or councillors who provided confidential information to the newspaper.

He said such action was contrary to the spirit in which local government and its councillors were expected to conduct themselves and was illegal under the Local Government Act.  Cr Masters decided to launch his motion before having read the article in the newspaper.  In an email exchange with the Mail before seeking Cr Hartley’s advice, Cr Masters told the Mail that it seemed unable to differentiate between an issue that was of public interest and one that was in the public interest.

Software replacement

Westernport Water has joined the search for a replacement water billing system, with tender documents issued Thursday. It's a second tender for the Phillip Island utility; earlier in the week they went looking for an Asset Management system.

Managing water resources

President of the Local Government Association Cr Genia McCaffery today acknowledged the vital role NSW councils play in managing water resources in NSW. Cr McCaffery was speaking at the 2009 LGSA Water Management Conference in Deniliquin - a part of NSW hardest hit by the most recent drought. Cr McCaffery highlighted a number of councils that have done some extraordinary work in developing new technology to help adapt to reducing water supplies.

“Some recent awards have highlighted the innovation and forward thinking that is shining through in water management in this State,” she said. “Orange Council has received a Green Globe Award and a NSW Water Environment Award for their ground breaking Stormwater Harvesting Project at Blackmans Swamp Creek. In a first for Australia, Orange is harvesting stormwater for the city’s drinking water supply with a project that has international eyes focused on the Central West of NSW. Using a weir and treatment ponds to clean the water before it returns to their main water dam, the project isn’t just a major advance in technology, but also a remarkably successful exercise in public communication and education, with the community willingly accepting this water for their drinking supply.”

Clarence Valley and Coffs Harbour councils also received praise, for working together on the Shannon Creek Dam project. “This massive project received both a NSW Water and an Institute of Public Works Engineering Australia Excellence Award in the process,” said Cr McCaffery. “With a major investment in infrastructure they have more than doubled the capacity of the Dam by raising its crest almost 10 meters, and have built other facilities like a 90 kilometer supply pipe and pump stations. They have also focused on better management practices and conservation strategies to make sure that the dam will deal with an increasing population well into the future. These two projects show us just how smart, how adaptive and how cost effective Local Government can be."

Brimbank Council sacked

The Victorian State Labor government has sacked the Brimbank council for, among other things, the undue influence the local Labor Party has brought to bear on councillors. A report from a State Government-appointed monitor called for its "suspension and or dismissal". Administrators will be appointed to the western Melbourne council until November 2012, the Minister for Local Government, Richard Wynne, announced this afternoon. The action came after Local Government Inspector Bill Scales also found elements of the ruling Victorian ALP were still trying to apply undue influence on Brimbank Council.

"In the interests of good governance for the people of Brimbank and on advice from the Local Government Inspector, the state government has decided to suspend Brimbank City Council and will move to dismiss the council until the next local government elections in November 2012," Mr Wynne said. "Unfortunately, the Government has been left with no choice, given that Mr Scales has found that councillors have fundamentally failed to correct poor practices and issues of probity and misconduct."

An Ombudsman's report in May found Labor figures had meddled in the affairs of the council, including in the allocation of council resources to community and sporting clubs. The Ombudsman investigated the former council and a new council was elected in November.

Closed government

BURNSIDE Council has called police to investigate fresh allegations that confidential documents have been illegally leaked. AdelaideNow understands former mayor Jim Jacobsen sent council legal advice relating to an internal defamation case to the Local Government Association. Mr Jacobsen has been targeted in a suit levelled by several fellow councillors and members of Burnside's Development Assessment Panel over comments he has made.

At a meeting last night, councillor Julian Carbone said the leak was the latest "serious breach" in a string since the 2006 election. "I'm furious this sort of behaviour continues and it should be investigated fully," he said. A council majority led by Peter Pavan ultimately voted to refer the matter to police.

It is the second time in less than two months SAPOL has been called to investigate the leaking of confidential documents at Burnside. The Anti-Corruption Branch was alerted in July after Mr Jacobsen emailed documents about a looming State Government inquiry to State/Local Government Relations Minister Gail Gago. AdelaideNow also understands the ACB has conducted at least three other investigations at the council since the 2006 election.

Mr Jacobsen last night denied wrong-doing and said he sent the council's legal advice to the LGA for clarification under the belief it was invalid.

Open government

An Adelaide Advertiser investigation shows up the lack of accountability, the Advertiser editorialises. Local councils - which should be the closest arm of government to the people - are closing their doors to the public more often. Together, 17 metropolitan councils surveyed by The Advertiser - excluding Adelaide City and Mitcham councils - barred the public from discussion of 430 items in the past financial year, up from 383 the previous year.

Granted, councils are at a disadvantage compared with state and federal governments in that they do not have a private process like Cabinet through which to make confidential decisions. That said, the frequency of closed meetings would appear to be increasing at a time when there is greater public desire for transparency.

There is a case for confidentiality in rare instances, such as a sensitive staff matter or a discussion which may jeopardise ratepayer funds.

More red tape?

TWO of Queensland'ss mayors have warned changes to the Local Government Act could result in council processes disintegrating into a maze of red tape and “unworkable” rules. The reforms are part of the Local Government Act 2009, which will replace the 1993 Act in December. It includes changes to the rules on the pecuniary interest register and declaring material or any interest in development applications.

But Bundaberg Region Mayor Lorraine Pyefinch said the changes would start to infringe on her family's right to privacy. “I already have to disclose what assets my 21-year-old son has,” she said.

North Burnett Mayor Joy Jensen said the changes could deter people from becoming elected officials. “It's a difficult job at the best of times and this puts even more pressure on,” Cr Jensen said.

But Local Government Minister Desley Boyle said the new Act introduces five principles that mayors, councillors and local government employees must follow. “It sets clear expectations and high standards including transparent decision making, inclusive community consultation and engagement, accountability for decisions and integrity of behaviour,” she said.

Amalgamations to blame for higher rates?

The Queensland Government says amalgamation is not to blame for higher rates increases in some council budgets. Local Government Association of Queensland (LGAQ) president Paul Bell says rates increases have jumped from around 5 per cent to an average of 10 per cent in the two years since amalgamation.

But Queensland Local Government Minister Desley Boyle says international economic pressures have caused high rates increases in all councils. "It's very mischievous," she said. "They've gone up just as much in non-amalgamated councils such as Brisbane, Gold Coast, Mt Isa. The cost of construction is one of the key factors affecting local government."

She says the global financial crisis affected local government income through reduced development applications and housing developments. "The much more likely connection is the huge global financial crisis," she said. "That would explain, for example, why non-amalgamated councils like Brisbane raised their rates over 6 per cent. Gold Coast raised its rates by 11.4 per cent, Mt Isa had a rate rise of 17 per cent."

The end of a NSW experiment?

Parramatta Council has advertised for bids to replace almost all of their core operating software – Financials and Payroll principally, with Asset Management as an option.  Almost everything, in fact, except their rating system.  Parramatta is one of the consortium of NSW councils (Randwick is another) who bravely went for a joint platform of software and services several years ago, currently managed by CapGemini.

Rumour has it that the problem lies not with CG but with aspects of the underlying Oracle platform; the Parramatta hierarchy are no fans of Oracle Corporation.

Bundaberg online

Bundaberg Regional Council is set to roll-out a new electronic development assessment system, to speed up the application process and reduce costs for councils and industry.  Following successful trials within Redland City Council, Bundaberg will become the second council in the State to bring the Smart eDA system online.

Minister for Infrastructure and Planning, Stirling Hinchliffe, says the initiative has been developed by the State Government, in consultation with the Local Government Association of Queensland, councils and industry stakeholders.  He says the system will significantly speed up the existing development assessment process.  "Paper-based development applications are generally difficult to handle, disperse and monitor and place significant demands on councils in terms of staff and costs,'' he says.  "The electronic system provides Queensland with a more efficient, transparent and consistent development assessment process that will reduce the cost of development.”

According to the Minster, officers from the Department of Infrastructure and Planning delivered training to industry stakeholders in the lead up to the system's release.  "The Smart eDA website provides a single portal for industry and applicants to use across local government jurisdictions. Applicants can prepare and lodge their development applications online and also track their progress," Hinchliffe says.  "It transforms the current paper-based Integrated Development Assessment System process into an intuitive and interactive, internet-based process.”.

The new system will also enable the integration of council and State Government systems, while helping to identify any applicable referral agencies.  "By streamlining the assessment process, it is hoped that we can further cut red tape and reduce the delays and costs involved in this process, which is great news for home buyers and for local governments," Hinchliffe says.

Tech One’s water world

Technology One has sold their asset management and supply chain software to South East Queensland bulk water supplier Seqwater.  Tech One already supplies some of their software to the bulk of Victoria’s water authorities, as well as their Finance One product to the two largest water companies in New Zealand.  Their most recent Finance One sale to a Victorian water utility was to Barwon Water.  Just when will they get an industry-strength water billing application to round out their portfolio?

BASIS still has legs

Despite Basis not being selected for upgrade at Yarra Valley Water, it seems it still has its fans.  After a successful implementation in Philadelphia, the Holding Company for Water & Wastewater of Egypt has awarded a contract for the implementation of Basis2 nationwide, Reuters reports.