Council announced on Tuesday evening that Ms Hancock had issued a Performance Improvement Order.

Earlier this month, Mrs Hancock told council of her intention to issue the order following accusations of bullying and harassment within the organisation.

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Despite a response from council that said intervention from the NSW government wasn't needed, Ms Hancock has implemented the PIO.

"It's council's intention to adhere to the order and doing so will be quite simple as council has already largely complied with the substance of the order, having received it in draft some weeks back," mayor Stephen Lawrence said.

"We wanted to deal with the issue quickly and are very focused on service delivery and on completing the tasks of the council before caretaker starts in just over a month [because of the local government elections]."

The PIO requires each councillor to improve their behaviour and appoints an independent temporary advisor to ensure compliance.

In a letter issued to the council earlier in the month, Mrs Hancock outlined seven reasons as to why she was proposing a PIO.

"There is evidence that some council staff are feeling bullied and harassed by some councillors which has resulted in them having to seek medical advice and have time off work," Mrs Hancock said in the letter.

Another reason said there was evidence council staff were unable to "effectively fulfill their roles" due to bulling and harassment as well as evidence councillors had been "unpleasant and intimidating" in their correspondence to senior staff.

If the PIO is not complied with, Mrs Hancock has previously stated that she may consider temporarily suspending the council.

The minister has been contacted for comment.

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