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In a press release, the city said Holgersson and the city “have mutually agreed to part ways.”
Holgersson has been city manager since Nov. 26, 2014 and will leave the city Friday.
Deputy City Manager Joe Lopez will become acting city manager while the city looks for a permanent replacement.
“The city thanks Jim for his service to the city of Modesto and we wish him well in all of his future professional and personal endeavors. Jim had great success for the city working with our neighborhoods and local organizations to build community and improve service,” said Modesto Mayor Ted Brandvold in a press release.
“I believe everything happens for a reason and that there is a life plan for each of us,” Holgersson said in the same release. “I believe during my tenure we have moved Modesto forward a little bit. I hope that there will be an opportunity to continue to give back to Modesto and Stanislaus County.”
Under the terms of a separation agreement, Holgersson agreed to ensuring a positive transition. Consistent with the intent of Holgersson’s employment agreement, the city agreed to pay Holgersson the cash value of seven months of base salary, or nearly $129,000. The separation agreement provides a full waiver and settlement of potential claims arising out of Holgersson’s employment with the city.