Chief's contract in limbo

A new contract for the Town of Port Hedland's chief executive is on hold after allegations the process for passing a council meeting item and resolving to execute it was conducted improperly.

At last week's council meeting, a confidential item was passed by simple majority to execute a new contract of employment with current chief executive Mal Osborne for a remuneration package of $397,040 a year for five years.

The current contract is due to expire in October next year.

Town of Port Hedland Mayor Kelly Howlett said concerns had been raised that the item should have been passed by an absolute majority.

"In preparation and presentation of the item, the Town of Port Hedland acted on written advice from the Department of Local Government and Communities with respect to the required vote," she said.

"The advice clearly stated that an absolute majority vote was not required - therefore only a simple majority was required.

"Contradictory advice on this matter has subsequently been provided by the department and an association."

The WA Local Government Association is the peak industry body, which acts as an advocate for the State's local governments.

However, the _North West Telegraph _understands it is WALGA's policy to not provide advice on the legislative requirements for council resolutions.

Ms Howlett said the Town had raised concerns directly with the director-general of the Department of Local Government and Communities.

"If the written advice received by the Town from the department was to be overruled by the director-general, then the July 23 resolution of council would be deemed invalid and the resolution not be acted on," she said.

A DLG spokeswoman said it had now corrected earlier advice after the Town requested clarification on July 24 and advised any future consideration of the item would require an absolute majority.

"The item that went before council … did not achieve the required votes to be carried by an absolute majority - at least six votes in favour - and is therefore not a valid decision," she said.

Ms Howlett said the Town acknowledged the item was also not listed on the table of contents of the agenda for the meeting published on July 9.

"It was publicly advised at the public agenda briefing session of July 16 that the item would be considered by the council at its ordinary meeting of July 23," she said.

"The item was also presented to all elected members in preparation for the agenda briefing session."

She also said since the contract had yet to be executed, its terms and conditions were still confidential.

Local Government chief executive remuneration levels are determined by the independent WA Salaries and Wages tribunal each year.

Band one-designated local government chief executives, such as Mr Osborne, can receive a maximum of $370,220 for a total remuneration package and are also eligible for $70,000 in regional allowances.

City of Karratha's chief executive (band one) receives a total remuneration package of $357,278 a year, while the Shire of Ashburton's chief executive (band two) receives $295,148.