Colburn’s Departure Formalized in Agreement with City of Chelsea

City manager to receive nine months of salary and benefits following June 2025 termination notice

The City of Chelsea and former City Manager Martin Colburn have finalized a separation agreement that outlines the terms of his departure, according to a signed document obtained by The Sun Times News.

Colburn was notified on June 24, 2025, that his employment with the city was being terminated. However, under the agreement, Colburn will remain on paid administrative leave through March 31, 2026, at which point he will formally resign. During this nine-month period, he will continue to receive his full salary and health benefits, unless he secures other employment prior to that date. The agreement also stipulates that Colburn must notify the city if he obtains new health insurance or employment during this period.

The agreement includes a mutual release of all claims, meaning neither party will pursue legal action related to Colburn’s employment or departure. It also includes a non-disparagement clause, preventing either side from making statements of a negative or critical nature concerning the other, except in private or legally required settings.

No official public statements have been made by city council members or Mayor Jane Pacheco regarding the reasons behind the termination or the decision to negotiate the extended severance package.