What made Northern Beaches Council CEO Mark Ferguson a marked man?
In a shock announcement, Northern Beaches Council chief executive Mark Ferguson will leave his role next week. Robbie Patterson finds out what was happening behind the scenes.
Manly
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JUST what led to Northern Beaches Council and its chief executive officer Mark Ferguson to “mutually agree” to part ways?
The mystery continues to engulf the council, with some suggesting a rift between Northern Beaches Mayor Michael Regan and the CEO, others pointing to rumblings about the management style.
However, those toeing the line have said Mr Ferguson was highly-skilled and took the council to the top of its field. But others have said there was a need for a new direction, which, if you are at the top of your field, would presumably be down.
The CEO is believed to have offered his resignation with a set of terms, which included more than 38 weeks pay. The deal is believed to have been accepted without counter offer.
A number of sources suggested Mr Ferguson’s role in campaigning against amalgamation when he was Pittwater council general manager may have played a part in his departure.
Former Manly mayor Jean Hay was one of three chief advisers to former administrator Dick Persson during the amalgamation.
She said “animosity” from former Warringah councillors — some of whom have been elected to the merged council — towards Mr Ferguson on the implementation advisory committee was clear.
“His days were numbered right from the start” Mrs Hay said. “I always felt from day one there has always been an animosity between the powers that be on Warringah and Pittwater councils. And when Mark was appointed to that position I don’t think it went down well with some of the people connected with the former Warringah council.
“There has been this animosity between the old Warringah and the old Pittwater and, from different things said to me prior to the council elections, I sort of got the feeling that some of them, if they had the opportunity, they wouldn't keep Mark on.”
A number of councillors agreed with those sentiments but said it would have been an equally difficult task for either former Warringah council general manager Rik Hart or former Manly council general manager Henry Wong.
“Whether it was Rik, Henry or Mark, they were set up to fail from the baggage they carried from the amalgamation debates,” one source said.
“There was a lot of animosity created from the enthusiasm of Warringah council advocating for one council on the northern beaches versus the very vocal anti-Warringah movement.”
Another councillor, who did not want to be named, said: “Councillors never felt they had ownership of the organisation and felt they needed a new CEO with fresh ideas and a fresh approach.
“It is natural for a new board to come on and look for a new CEO that aligns with their values and their vision going forward.”
Former council administrator Dick Persson was asked for his thoughts on the parting of ways and declined to get into politicking, simply offering his praise of Mr Ferguson.
“Mark Ferguson is one of the best council chief executives in the country. I enjoyed working with him,” Mr Persson said.
“He met all my expectations through a very difficult transition period and I will be happy to be a referee for him in his next endeavours.”
The details of the closed door meeting in which Mr Ferguson and the councillors negotiated a buyout of his rumoured $470,000 annual package are unknown.
Mayor Michael Regan said despite persistent rumours to the contrary there was no animosity between himself and the CEO.
“This was a mutual agreement between the CEO and the council. Almost two years on, and with a newly-elected council, it is the time to take the organisation to the next stage to ensure its continued success,” he said.
“We need to reflect that the State Government appointed him as an interim general manager. However, his contract was renewed by the former Pittwater Council for five years with full knowledge of the impending amalgamation.”
Mr Ferguson was then given a pay rise and new title by the administrator, Mr Persson.
The recent events have led Mackellar federal MP Jason Falinski to demand answers.
“I know that there are a lot of good people on council trying to do the right thing but ratepayers deserve to know why Dick Persson, an unelected bureaucrat, would sign a contract clearly not in their interests,” he said. “And given the uncommercial nature of this contract, we need reassurance that everything was done to ensure Mark Ferguson was given reasons to stay, and not leave as he has.”
Mr Persson told the Manly Daily an independent review was undertaken and came back with a salary range for Mr Ferguson. He said the pay rise was well deserved as the CEO had taken a bigger role in a larger council.
In his first interview since the announcement that he would stand down as CEO, Mr Ferguson told the Manly Daily: “The notion of a fractious relationship between the mayor and myself is not correct.
“It was a mutual decision and it was time for the council, if it desired, to have a new direction. I was always appointed as an interim GM or CEO, it is open to the council to make a decision to do that. I have respected that decision, but likewise, I had a contract to 2020.”
Mr Ferguson acknowledged his role in the anti-amalgamation campaign may have put some people off-side.
“Two-thirds of the submissions in the whole state came from the northern beaches, that was mainly Pittwater and Warringah,” Mr Ferguson said. “So there was a strong advocacy on all parts. But at the time we were all doing a job and since then we have been committed to making the council a success.”
Cr Regan said a successful merger would take three to five years to transition.
“Mark is leaving behind a council well positioned to succeed. Councillors and I are focused on the next five to 10 years and building those foundations for success,” he said.
A number of other sources have pointed to a move by some councillors to remove Mr Ferguson and appoint a new CEO.
“Mark was told by the Mayor the councillors had lost confidence in him, which, in my view, wasn’t true,” one source said.
Cr Pat Daley expressed his concerns about transparency and communication of the Mayor before the meeting on Tuesday, where a payout was reached. “I did not receive any call from the mayor. I received the information 30 minutes before the meeting. I believe we were being railroaded into it, with very little information or facts to work with,” he said.
Cr Regan said he was fully compliant with requirements under the Local Government Act and had taken guidance from the Local Government Department. He said all councillors were given the opportunity to read the relevant documentation and ask any questions of legal counsel.
A series of recent moves by councillors in the lead-up to the shock decision may give a glimpse of tension behind the scenes.
At the most recent council meeting a motion took aim at management, calling for better access to lower-ranking staff. Councillors Roslyn Harrison and Dave Walton pushed for a quicker turnaround in requests for information and access to lower-tiered staff. The motion was put forward “in an effort to streamline councillor requests ... and to improve ratepayer service delivery” a report by the two councillors said.
It also demanded a complete reporting structure be provided with names, positions and phone numbers of heads of divisions.
Another motion put forward by councillors Sue Heins and Rory Amon at the same February 27 meeting called for a review of the council’s organisational structure, which some suggested was the final straw leading to Mr Ferguson’s resignation and a payout of more than 38 weeks salary.
Cr Amon said he would have liked to have seen the outcome of that review before making a decision.
“You have a review, you look at the review and decide what to do. You don’t decide what to do then have a review, that is bad practice,” he said. “If you ask any councillor about Mark they will tell you he did a great job and we owe him a great debt. But this raises the question, why was he punted?”
Others asked why a decision had to be made so quickly and why a counter offer was not lodged.
Deputy Mayor Candy Bingham said it was “not a matter of urgency but a matter of timing”.
“The council amalgamated for two years, it is being considered the best of all of the merged councils. The councillors just felt it was time to have a fresh approach, moving in new direction, with new councillors and also it is a timing issue,” she said.
“With all new councils it is the time for the CEO and councils to review their position. There are always performance reviews this time of the year. It was a mutual decision. Mark felt it was time to move on, the council felt it was time for a change. ”