City Council
Report
City Council Meeting: May 27, 2025
Agenda Item: 11.A
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To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration Dana Brown, Human Resources Director, Human Resources Department Subject: Appointment of City Manager and Authorization to Execute Agreement Recommended Action
Staff recommends that Council:
1. Adopt a finding that the actions are not a “project” subject to the California Environmental Quality Act (CEQA) and a finding of no possibility of significant effect pursuant to Section 15601(b)(3) (Common Sense Exemption) of the CEQA Guidelines;
2. Appoint Oliver C. Chi as City Manager commencing July 14, 2025;
3. Approve the employment agreement with Oliver C. Chi for his services as City Manager, beginning effective July 14, 2025; and
4. Authorize the Mayor to sign the employment agreement on behalf of the City.
Executive Summary
On May 27, 2025, Council will consider the appointment of Oliver C. Chi to the position of City Manager. Mr. Chi’s employment with the City is anticipated to commence as of July 14, 2025, under terms and conditions set forth in a negotiated employment agreement.
Discussion
On January 21, 2025, Council appointed Elaine Polachek to serve as Interim City Manager, following the departure of David White and continuing until completion of the pending recruitment and hiring of a permanent City Manager. That recruitment has now been completed, and on May 27, 2025, Council will consider the appointment of Oliver Chi to serve as City Manager, beginning effective July 14, 2025. 2 of 3
An employment agreement has been negotiated with Mr. Chi for his service as City Manager, commencing July 14, 2025. Mr. Chi served as the City Manager for the City of Irvine since 2021; prior to that, Mr. Chi held a variety of public sector management and staff positions with the cities of Huntington Beach, Monrovia, Barstow, Rosemead, Claremont, and Arcadia. Mr. Chi also previously worked for a member of the California State Legislature.
A copy of the employment agreement is attached as Attachment A. This employment agreement sets out the full terms of the compensation and benefits to be provided to Mr.
Chi. The agreement is for at-will employment, including a pre-negotiated separation agreement in the event of mutual separation or termination without cause. The main terms of the employment agreement include, in summary: (1) the City will pay Mr. Chi an annual salary of $410,604; (2) the City will reimburse Mr. Chi for moving and relocation expenses up to $5,000; (3) the City will provide Mr. Chi with up to 12 months of temporary rental assistance, at the rate of $5,000 per month, for a maximum of $60,000 in total, while Mr. Chi transitions to a permanent residence in Santa Monica; (4) the City will make available to Mr. Chi a home loan not to exceed $2 million on terms set out in the employment agreement; (5) Mr. Chi will receive CalPERS retirement benefits as determined by CalPERS; (6) Mr. Chi will receive other benefits in accordance with the Executive Pay Plan, subject to any modifications set out in the employment agreement; and (7) Mr. Chi will be entitled to 9 months’ severance pay should his employment be terminated by the City Council under conditions specified in the employment agreement.
Because Mr. Chi will be serving as a “local agency executive” as defined in Government Code Section 3511.1(d), California law requires that Mr. Chi’s compensation and benefits be approved at a regular meeting, with an oral summary provided before final action is taken. (Gov Code §§54953 subd. (c)(3), 54956, subd. (b).) Environmental Review
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Pursuant to CEQA Section 21065, the employment agreement for Mr. Chi’s service does not meet the definition of a “project” subject to CEQA as it will not “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment”. Additionally, per Section 15378(b) of the CEQA Guidelines, a “project” does not include administrative activities of governments that will not result in direct or indirect physical changes in the environment. Therefore, the employment agreement is not subject to CEQA. Additionally, the agreement is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement is administrative in nature. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Fiscal Impacts
Salary and benefits for the City Manager position are included in the FY 2025-26 Budget.
Prepared By: Douglas Sloan, City Attorney
Approved Forwarded to Council
Attachments:
A. CM Employment Agreement 052825
B. Written Comments