The agreement includes nine months' pay and $54,000 in other severance compensation. Kolb's last day will be Jan. 2.
Kolb and city council members announced their parting of ways two weeks ago, the result of "philosophical differences."
Neither the council nor Kolb, who has served as city manager since 2004, have discussed the nature of the disagreement. But they have indicated the decision for Kolb to depart was mutual.
Under the severance agreement, Kolb has agreed to provide "transition services and make appropriate interim delegations" of his duties until he departs.
Kolb's annual pay in 2007 is $170,000.
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