TO: Mayor and City Council
THROUGH:
FROM: Dan Atchison, City Attorney
SUBJECT:
title
Approval of the City Manager Employment Agreement.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
On October 13, 2025 City Council appointed Krishna Namburi at City Manager subject to approval of an employment agreement. Council directed the City Attorney to prepare the agreement and discuss the terms with Ms. Namburi. Ms. Namburi has tentatively agreed to the attached draft agreement (Attachment 1).
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ISSUE:
Shall City Council approve the employment agreement for the City Manager?
RECOMMENDATION:
recommendation
Approve the employment agreement for the City Manager.
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FACTS AND FINDINGS:
The City Manager is designated by the Salem Charter as the administrative head of the City and is tasked with leading the City administration, implementing City Council policies and goals, preparing and managing the City budget, and overseeing over 1,200 City employees. The City Manager also serves as the executive director of the Urban Renewal Agency and Housing Authority.
Key terms of the agreement:
• At will: The agreement is not for a set term and may be terminated by City Council or the Manager at their discretion.
• Salary: $305,000: The proposed salary is within the range established by City Council for the City Manager classification.
• Salary adjustments: The Manager’s salary may be adjusted after an annual review conducted by City Council. The Manager will also receive the same cost of living adjustment to salary on the same terms as the City’s department directors, as approved by City Council through the annual City budget.
• Residency and Relocation: The City Manager must relocate to Salem within 12 months of the effective date of the agreement. The agreement provides for a relocation assistance payment of $8,000.
• Severance: The City Manager will receive a minimum of nine months and up to 12 months severance payments if the Manager is terminated or asked to resign by City Council. Severance includes salary, and the equivalent of all benefits that the Manager would be entitled to, including health insurance, deferred compensation and PERS contributions. The Manager will receive no severance if the Manager voluntarily resigns or is terminated for cause. Cause includes committing a crime or other malfeasance in office.
BACKGROUND:
Krishna Namburi has served the City of Salem for over 25 years, most recently as interim city manager, and previously as Information Technology Department Director, Enterprise Services Director and Deputy City Manager. On October 13, 2025, City Council appointed Ms. Namburi as City Manager contingent on approval of an employment agreement.
Dan Atchison,
City Attorney
Attachments:
1. City Manager employment agreement.