Environment Waikato chief executive Harry Wilson has stepped down from his $250,000-a-year job after failing to negotiate a new contract.
Chairman Peter Buckley announced Mr Wilson would leave the organisation after the parties were "unable to reach agreement on contractual terms" following mediation.
Mr Wilson, who the Heraldunderstands is on leave until his contract expires on August 31, reapplied in April for the job he has held since 2003.
But he has become the second senior manager to quit the organisation in recent times. Chief financial officer Warren Stevens resigned in May.
In a written statement, Mr Buckley said that "both parties are disappointed the issues could not be resolved but the council wishes to thank Mr Wilson for his contribution and wishes him well for the future".
During last year's local body election campaign, Environment Waikato's critics - some of whom now work for the council - slammed management over rates rises of 6.8 per cent.
And this year, Mr Wilson was again in the firing line for what some called a junket when he and Mr Buckley attended an investment conference in Florida.
The chief executive's position was advertised in March, earlier than required by law.
Mr Buckley could not be reached for further comment last night.