Saugatuck councilman: Heise vote based on incomplete information

Ryan Heise
Ryan Heise

SAUGATUCK — At least one councilmember in Saugatuck would have voted differently on Heise's resignation if he'd had all the information, according to a letter intended for publication in The Commercial Record and obtained by The Sentinel.

In his letter, councilmember Russ Gardner acknowledges he voted "yes" to authorizing the city's proposed resignation agreement with City Manager Ryan Heise on Feb. 21, but says he understands that citizens are angry and embarrassed.

The vote in question was taken during a workshop meeting, the beginning of which saw Mayor Laura Stanton state to attendees items on the agenda were "for discussion only." She was addressing dozens of taxpayers who'd shown up to speak on short-term rentals; few of whom remained after a late-meeting closed session and vote on the agreement.

Neither the vote to enter closed session, nor the vote to accept the agreement, appeared on the meeting's initial agenda. Neither motion named Heise or the role of city manager.

In early March, The Sentinel obtained the resignation agreement after filing a Freedom of Information Act request.

More: Saugatuck mayor said no decisions would be made in workshop — they were anyway

According to the agreement, signed by City Clerk Jamie Wolters on March 4, Saugatuck will pay Heise a lump sum of 10.25 months of his annual salary, or $98,650, in exchange for his resignation. The amount was slightly more than the 9 months of pay Heise would've been entitled to, had the city fired him without cause.

Heise will also receive 144 hours of pay for unused vacation time, and will keep insurance benefits through Dec. 30.

Under his original contract, Heise was required to give a month's notice before resigning. Under the new agreement, that was waived.

Heise also agreed not to re-apply for employment with the city unless asked to do so in writing, and the city agreed not to provide more than his dates of employment and job title to prospective employers unless Heise signs a written request.

Downtown Saugatuck, MI.
Downtown Saugatuck, MI.

A source close to the issue, granted anonymity by The Sentinel, confirmed $11,147 listed under "legal fees — employment” in the packet for a meeting Monday, March 11, represented the cost the city incurred to negotiate the agreement.

In his letter, Gardner came closest to saying why the city offered Heise money to resign at all, saying he believed it was time "for the city and the now-former city manager to part ways, as I was made aware of and personally observed behavior that was not helpful to the city and its employees."

“Since being elected, I have publicly and privately commented to (council) and its leadership concerns about the former city manager,” Gardner wrote. “No known action was taken. Therefore, I found this (the resignation agreement) the most viable of the options presented.”

But his mind has changed since.

In his letter, Gardner writes council was presented with a proposed press release to issue to the public. He requested an amendment to the language, which was granted, but his statements that the release should be "shortened and muted" allegedly went unanswered.

The controversial release announced Heise's resignation, but neglected to mention what the city paid in return for his departure. In the release, Stanton wrote, "It became widely known six months ago that Ryan had intentions to relocate his family to the Stillwater, Minnesota, area where his wife’s family resides and was considering new opportunities to grow in his career."

Stanton later told The Sentinel she didn't know Heise had been applying for jobs prior to signing the agreement, but last week, the Pioneer Press reported Heise is one of five candidates in the running for a city administrator position in Hudson, Wisconsin.

According to interim city administrator Mike Johnson, the application process for the role closed Jan. 31.

In his letter, Gardner said he has repeatedly suggested the city update HR and ethics policies “to ensure they reflect current standards and have clear guidelines to address any issues that arise.”

“Recent events demand action," he wrote. "Please join me on this front.”

Gardner’s letter comes amidst strong opposition from residents over the details of Heise's departure.

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"There's basically two issues here," said resident Joe Leonatti on March 11. "One story is that he resigned to go to greener pastures. ... The other story is that he was forced to resign and I don't think anyone in this council is vindictive, so I assume that if that was the case, (that) must have been for cause. In either case, if someone resigns for a better job, and you can't fault him for that, why are we paying him?

"The other reason, if he was fired for cause, which is certainly feasible with some of the things that I witnessed, why are you paying him?"

More than one former mayor has weighed in, including Bill Hess, who called for transparency.

“A day-by-day timeline detailing what occurred and when it occurred would greatly help your citizens understand just what happened,” Hess wrote. “While I understand there are legal issues that do not allow disclosures of some specific information, the timeline should state which details cannot be provided.”

Stanton told The Sentinel on Tuesday all councilmembers are welcome to have an opinion and acknowledged they aren't always on the same page.

She defended the release, saying legal guidance was used and all councilmembers had an opportunity to weigh in.

"Many changes were made, the draft was shortened, and some of it was indeed 'muted' as Mr. Gardner had indicated he had wanted," Stanton wrote via email. "Maybe it was (not) muted enough for his liking, but there are other councilmembers' opinions that were taken into account."

Stanton has yet to explain why the release failed to mention the monetary agreement.

"As far as policies and HR issues, the majority of council is satisfied with our current system of working with our employment attorneys when employment issues arise," Stanton said.

Gardner wrote he'll be more aware in the future, and continue to push back when things don't feel right for Saugatuck.

“…I respect the community’s engagement as many important issues are facing us from staffing, infrastructure, development and regulations. I remain committed to being the ‘guy who asks too many questions.’”

— Contact reporter Austin Metz at ametz@hollandsentinel.com.

This article originally appeared on The Holland Sentinel: Saugatuck councilman: Heise vote based on incomplete information