Council approves part-time employment agreement to retain Community Development Director Chris Hayes during transition

The City of Neenah Common Council voted Jan. 15 to approve an employment agreement enabling Community Development Director Chris Hayes to step into a part-time role while assisting with ongoing projects during the department's leadership transition. The motion, moved by Alderman Erickson and seconded by Council President Borchard, passed 8 to 1.

Erickson opened by announcing Hayes's planned retirement after a 34-year city career and explained the agreement was meant to preserve Hayes' expertise during recruitment and onboarding of a new director. "I'm incredibly grateful for his willingness to assist the city as we continue to navigate through complex projects," Erickson said when introducing the item.

Discussion at the Jan. 6 finance committee and the Jan. 15 council meeting centered on whether hiring Hayes as a part-time city employee was preferable to contracting through a third party, and on making the arrangement cost-neutral for the city and for Hayes' pension situation. Alderman Palmeau asked whether the arrangement was truly cost-neutral and compared the arrangement to paying a consultant, noting a potential consultant cost of roughly $34,000 mentioned during committee discussion. Finance staff said the agreement as proposed factors in salary-step differentials, reduced fringe and pension effects and would be cost-neutral over the contract period; an extension would require additional committee approval.

Alderman Boyette asked why the city did not use a contractor model. Staff answered that pension rules limit direct contracting by retirees and that contracting through a third party would add cost and a time lag; they said direct part-time employment allows Hayes to act on behalf of the city (for example, in communications with regulatory agencies) in ways a contractor could not. The meeting record also referenced a roughly 60-day ineligibility period for some contracting arrangements tied to pension rules.

Several council members expressed support for a transition arrangement and recalled prior instances where retiring directors stayed on part time to assist with transitions. Alderman Ellis said the city had used a similar arrangement in past transitions and supported the contract as presented.

The formal action recorded: the finance committee recommended council approve the employment agreement for Director Hayes, and council approved that recommendation 8-1. The motion language in committee was recorded as "the committee recommends council approve the employment agreement for Director Hayes as presented." No amendments were recorded at the council vote.

Ending: The agreement is intended to bridge the department through recruitment and onboarding of a new director; staff said the position posting is open and the council will be informed of any proposed contract extensions or amendments.