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Council approves new City Manager contract

City Manager outlines brazen plan to reshape Santa Monica’s culture, economy, government and landscape as he says the city st
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The Santa Monica City Council unanimously appointed Oliver C. Chi as the city's new manager Tuesday evening, with a salary of more than $400,000 annually despite the circulation of past allegations questioning his previous municipal service.

The 7-0 vote came after council members met in closed session to discuss Chi's appointment, which takes effect July 14, 2025. Chi will receive an annual salary of $410,640 plus benefits including up to $60,000 in temporary rental assistance and access to a home loan of up to $2 million at 3.5% interest.

The appointment follows the January departure of former City Manager David White and concludes a months-long recruitment process. Elaine Polachek has served as interim city manager since January 21.

Santa Monica has had a rotation of City Managers, both interim and permanent, in recent years. Before White, Former City Manager Rick Cole resigned in March 2020, citing an inability to preside over budget and staffing cuts the City was facing. City Attorney Lane Dilg took over the position until leaving in June 2021, when John Jalili took over as Interim City Manager.

However, the decision was not without controversy as some residents have questioned Chi’s qualifications based on past reporting of his time in Irvine. A pair of articles appearing on irvinewatchdog.org have questioned Chi’s ethics and abilities during his career. The articles began circulating among some neighborhood groups over the Memorial Day weekend and an anonymous email sent to the Council urged the city not to hire Chi.

Council made no direct mention of the allegations during their brief approval of Chi’s contract. They expressed confidence in their decision and enthusiasm about Chi's leadership potential.

“I just want to say that I think it's a reflection on our amazing staff that we had no shortage of really really excellent applicants for this position,” said Councilwoman Caroline Torosis. “I think we felt really lucky to be able to meet so many qualified folks and I feel very very confident that Mr Chi is going to come here and lead in a new and prosperous direction for our city so just thank you for all all of our staff for your trust and I think this is going to be the start of a really positive relationship and we're excited.”

Mayor Lana Negrete welcomed Chi to the city and took a moment to thank interim City Manager Elaine Policheck for her work.

“Welcome to the city of Santa Monica Oliver Chi we're super excited and thank you Elaine. I know we'll have another opportunity to give you a long thank you but I just wanted to say that tonight since we're welcoming our new city manager we're looking forward to the new transition, a smooth transition and we're really excited.”

The appointment represents a critical leadership change for Santa Monica as it navigates financial pressures and works to implement the council's vision for economic recovery and municipal improvements. Chi will oversee city staff implementation of council priorities while managing ongoing budget constraints and labor negotiations that have reportedly stalled.

City staff described the budget situation as "serious" during the same meeting, with ongoing threats to the tax base and substantial legal liabilities, including a large litigation settlement reported during the same session.

The council has outlined priorities focusing on economic development, clean streets, safe neighborhoods and affordable housing. Officials emphasized the need for staff to "challenge long-standing norms," "cultivate a culture of yes" and "streamline processes" to expedite the city's recovery.

Chi's employment agreement specifies he will serve at-will and receive nine months' severance pay if terminated without cause. In addition to his base salary, the package includes up to $5,000 in moving and relocation expenses and temporary rental assistance of up to $5,000 monthly for up to 12 months within Santa Monica or within three miles of city boundaries.

The comprehensive benefits package also includes access to the city's executive pay plan benefits beyond the specified salary and housing assistance.

During his tenure in Irvine, Chi established the $1.2 billion, 300-acre Great Park expansion project, implemented housing initiatives under the Irvine Cares program, and created a city-led land development process for the $600 million Gateway Village project.

Chi previously held leadership roles in Huntington Beach, Monrovia, Rosemead and Barstow. He holds a master's degree in public administration from the University of Southern California and a bachelor's degree in political science from UCLA.

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