While the City 0f Melbourne contemplates its CEO's contract and its deliberations it is worth noting the requirements under the Victorian Local Government Act 1989 (extract from version 85 dated July1, 2006. copy below)
Section 94 (3) of the Local Government Act places a obligation on the City of Council to advertise the position and consider considered all applications received by it .
There is a provision of an opt-out clause (sub section 4) stress being on op-out, where the Council can within 6 months of the CEO's contract date of expiry the Council give notice and resolve to extend the current CEO's contract without advertising the position but not before hand. The City of Melbourne's current CEO contract expires on September 30, 2007.
Clearly the obligation is for the Council in the first place to advertise the appointment of its CEO and consider all applicants, including the incumbents application for a renewal, on their merit.
The Council can resolve to extend the CEO contract for a maximum period of 12 months without having to re-advertise the position (sub section 4A).
-- Extract of the Victorian Local Government Act 1989 (version 85) --
94. The Chief Executive Officer
(1) A Council must appoint a natural person to be its
Chief Executive Officer.
(2) The Chief Executive Officer is a member of
(3) A Council may only appoint a person to be its
Chief Executive Officer after it has invited
applications for the position in a notice in a
newspaper circulating generally throughout
Victoria and has considered all applications
received by it that comply with the conditions
specified in the notice.
(4) Sub-section (3) does not apply if—
(a) in the 6 months immediately before the
person's contract as Chief Executive Officer
is due to expire, the Council passes a
resolution to reappoint that person as its
Chief Executive Officer; and
(b) at least 14 days before the resolution is
passed, public notice was given of the
intention to put the resolution; and
(c) the public notice contained—
(i) a statement that the passing of the
resolution would result in the
reappointment of the Chief Executive
Officer without the position being
(ii) any other details required by the
(4A) Sub-section (3) also does not apply if a Council
appoints a person to act as its Chief Executive
Officer for a period of not more than 12 months.
(5) A Council must not remunerate in any way a
person who has filled the Chief Executive
Officer's position on an acting basis for 12 months
for anything the person does in respect of that
position after that 12 month period (unless the
person is appointed after the Council has complied
with sub-section (3)).
(6) If a Council passes a resolution to reappoint a
person as its Chief Executive Officer without
advertising the position, the Council must make
details of the person's proposed total remuneration
as Chief Executive Officer under the new contract
available for public inspection within 14 days
after the passing of the resolution.
(7) A contract of employment as Chief Executive
Officer between a Council and a person is void if
it is made—
(a) in circumstances that are contrary to this
(b) while a current contract of employment as
Chief Executive Officer with the person
exists and that current contract is not due to
expire for at least another 6 months
(regardless of whether or not the Chief
Executive Officer's position has been
(c) before a general election for a term that
continues after the general election and the
contract of employment was entered into
following a variation made to the Chief
Executive Officer's then current contract of
employment that reduced its term.
95A. Employment of senior officers to be regulated by
(1) A senior officer may only be employed under a
(2) The contract must—
(a) specify performance criteria for the purpose
of reviews of the senior officer's
(b) specify the date on which it expires, which
must be a date that is not more than 5 years
after the date it is signed; and
(c) include any other matter that is required by
(3) On the expiry of a senior officer's contract, the
senior officer may be invited to enter into a new
(4) Any contract of employment between—
(a) a Council and a Chief Executive Officer; or
(b) a Chief Executive Officer and a senior
that does not comply with sub-section (2) is void.
(5) This section does not apply to work performed by
a person filling a position on an acting basis for a
period of not more than 12 months.
(6) For the purposes of this section, if a contract
contains an option for renewal, the expiry date of
the contract is the date on which the last option
95B. Powers of the Minister concerning the employment
of senior officers
(1) The Minister may, by notice published in the
Government Gazette, exempt a Council or a
Chief Executive Officer from complying with
(2) If the Minister does this, section 95A does not
apply to the Council or Chief Executive Officer
until the Minister revokes the notice by a further
notice published in the Government Gazette.
(3) The Minister may also, by notice published in the
Government Gazette, for a period specified in the
(a) a Council from employing a new Chief
Executive Officer, or entering into a new
contract with an existing Chief Executive
Officer, or entering into a contract with a
Chief Executive Officer that expires after a
specified period or date;
(b) a Chief Executive Officer from employing
new senior officers, or entering into new
contracts with existing senior officers, or
entering into any contracts with senior
officers that expire after a specified period or
(4) A Council must comply with a notice under subsection
(5) A Chief Executive Officer must comply with a
notice under sub-section (3)(b).
6) If a Council or Chief Executive Officer is
forbidden to fill a vacancy by a notice, it or she or
he may only employ a person on an acting basis to
perform the functions assigned to the vacant
(7) Any contract entered into by a Council or Chief
Executive Officer in contravention of a notice
under sub-section (3) is void.