April 12, 2017 at 4:35 p.m.
Interim city administrator Keith Kost confirmed that Mayor Richard Johns received a letter from Funkhouser just after noon Tuesday formally declining the offer.
In the letter, which the River News obtained from Kost, Funkhouser wrote he is "no longer interested in the position of Chief of Police with the City of Rhinelander."
He goes on to say that he was "deeply disappointed" to make the decision as he was "very excited" about the chance to work with the Rhinelander Police Department and move his family to "your wonderful community."
"However, since being named by the Rhinelander police and fire commission as their choice for Chief of Police, it has become clear to me that it would not be in my best personal or professional interest to accept employment with the city of Rhinelander."
The letter closes with Funkhouser wishing the city the best in its search for a chief.
"You have an outstanding police department and a beautiful community," he added.
Funkhouser was one of 29 applicants for the position that became open in November when Mike Steffes stepped down to accept a position with the Wisconsin Department of Justice.
After the field was narrowed down, Funkhouser was named a finalist for the position as were interim police chief Capt. Ron Lueneburg and Capt. Lloyd Gauthier of the Oneida County sheriff's office.
After a final round of interviews and a meet-and-greet with city leaders and the public, the commission announced Funkhouser, the police chief in the city of Kiel, as their choice March 16.
The selection was contingent on the city finance committee and Funkhouser coming to terms on a compensation package.
Prior to announcing the job opening, the finance committee had set the salary range for the next chief at $79-81,500.
Several sources told the River News the committee offered Funkhouser a salary in the middle of that range. He currently makes just over $90,000 in Kiel, but that figure includes overtime which he would not be eligible for in Rhinelander.
Steffes' annual salary, at the time he stepped down, was $85,904. He spent seven years with the department.
Police and fire commission chairman Todd McEldowney would not offer a comment on Funkhouser's decision other than to say he was disappointed.
"I am the mouthpiece for the commission when we have decisions that we have made, but we are not going to have any decisions as far as the next chief is concerned until our meeting on Thursday," he said. "Our meeting is going to be in open session and we certainty invite anyone who is interested to attend that meeting. In open session, we're going to have discussions on the next course of action."
McEldowney added "there will be discussion as to the whys and wherefores" behind Funkhouser's decision at Thursday's meeting, which is scheduled for 9:30 a.m. He also said that he hopes a decision will be made as to where the search process goes from here.
He added that the commission fulfilled its duty by going through the application process and deciding Funkhouser was the best fit for the job.
"We provided, and appointed, the name of the person that we had selected, and that is the extent of our statuary obligation," he said.
He declined to comment on the compensation package the finance committee offered Funkhouser.
Late Wednesday, Kost sent out a press release chiding the police and fire commission for publicly announcing Funkhouser as the next chief before the city could complete employment negotiations with him.
"We are disappointed that Dave Funkhouser, candidate for the position of police chief for the City of Rhinelander, declined the employment offer by the City of Rhinelander," the statement reads. "This position was posted at the salary range of $79,000 to $85,500. An offer was made to the candidate within that range with a full benefit and fringe benefit package, including 40 days of paid time off, full Wisconsin Retirement System benefit and moving expenses in addition to health insurance, dental insurance and life insurance coverage. Although it is clear he was not happy with the initial offer, the candidate twice declined to provide a counter offer when requested."
Kost went on to explain the city's wage and salary structure.
"The City utilizes a Grade and Step system for employees," the statement reads. "This system was put in place in late 2016 and early 2017 with the help of consultant Carlson Dettman. The salary offered was at the 102.5% Step, 7 wage steps higher than minimum for the highest pay grade. The salary offer would have been the second highest paid position within the City."
Kost ended the statement by taking the police and fire commission to task for releasing Funkhouser's name before he and the city could come to terms on compensation.
"We wish Dave Funkhouser well as he has chosen to remain with the Kiel Police Department," the release states. "It is disappointing that the Police and Fire Commission chose to publicly announce the candidate before the City could negotiate an employment offer with him. The Police and Fire Commission is in charge of selecting a candidate and submitting that candidate to the City. The City is in charge of negotiating with the candidate salary and benefits. The City will await the next candidate picked by Police and Fire Commission and hope that the City can negotiate an offer with the candidate before the selection being publicly announced."
It should be noted that the process the commission used in the Funkhouser case was different from when Steffes was hired in 2007.
While the commission selected Steffes following interviews with the finalists, that selection wasn't announced publicly. According to finance committee minutes from March 5, 2007, the panel voted to approve a salary offer, which was presented to Steffes. The commission then announced on March 6 that Steffes would be the next chief, after he accepted the offer and the City Council approved the hiring.
While the finance committee approved a salary range in Funhouser's case, it did not approve a final salary offer until after he was named.
Both Gauthier and Lueneburg have confirmed they remain interested in the police chief position.
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