Nevada City council accepts manager’s separation and appoints interim manager

The Nevada City Council unanimously approved a separation agreement with City Manager Sean Grayson on Sept. 24, 2025, and authorized an interim appointment to maintain continuity in city administration.

City Attorney Dean Poocci announced after closed session that the council had approved a separation agreement with Grayson that will take effect Sept. 28. Poocci told the council the agreement includes a 12‑month severance payment, cash‑out of accrued vacation and other entitlements under Grayson’s employment contract; the council approved the separation on a motion by Council Member Fleming, seconded by Mayor Klein, with a recorded 5‑0 vote.

Council then considered Resolution 2025‑36 and an interim employment agreement to appoint Joan Philippy as interim city manager, effective Sept. 29, 2025. Poocci explained that state retirement rules constrain what a retired annuitant may be paid and that staff had prepared the necessary PERS documentation. Council approved the resolution and authorized the mayor to sign the interim employment agreement by roll call, again 5‑0.

Why it matters: The council’s actions establish immediate administrative continuity and provide the mayor and city attorney authority to name an acting manager if PERS or other technical matters require an alternative step. Council members repeatedly framed the transition as a change in leadership while praising the city manager’s accomplishments.

Council members and staff praised Grayson’s tenure during the meeting’s final reports. Multiple council members credited him with advancing infrastructure projects, fire‑safety initiatives and administrative improvements. The minutes reflect that councilors expect to rely on Grayson’s institutional knowledge during the transition.

What the council approved and next steps: The separation agreement’s basic terms were read into the public record (severance, vacation payout and contract entitlements). The council approved Resolution 2025‑36 to permit a retired annuitant to serve as interim city manager and authorized the mayor to execute the interim employment agreement with Joan Philippy, effective Sept. 29, subject to any required PERS confirmations. Staff said PERS authorization items remain outstanding and the mayor was authorized, in consultation with the city attorney, to appoint an acting manager if necessary.

No public speakers offered comment on the personnel actions during the record vote. The council’s formal actions were recorded in the roll‑call votes contained in the meeting record.