FERGUSON, Mo. - Ferguson City Manager John Shaw's resignation was accepted Tuesday night by the city council, effective immediately.
The city council voted 7-0 on a mutual separation agreement, with all members present. Shaw's duties will be divided between various city departments, according to a release from the city.
His resignation came during the city council's first meeting since the scathing Department of Justice report was released.
"I've known John for several years and I wish him luck with future endeavors as we continue to work through the necessary steps to become a community of choice for all residents," said council member Dwayne T. James, in the release.
Photos: Ferguson business affected by city's negative image
The city says it will begin a nationwide search immediately in search of Shaw's replacement. In the meantime, the assistant city manager will take over.
The announcement comes less than a week after a scathing report released by the Department of Justice, claiming racial bias was rampant in the police department and that the city's municipal court's main focus was on earning money.
Photos: Protesters react to DOJ inquiry
Shaw was referenced in the DOJ report as celebrating court revenue increases.
In March 2011, the Chief reported to the City Manager that court revenue in February was $179,862.50,and that the total "beat our next biggest month in the last four years by over $17,000," to which the City Manager responded: "Wonderful!"
Monday, a Ferguson municipal court judge named in the report, Judge Ronald Brockmeyer, also resigned. Brockmeyer was criticized in the report of the court's use of sometimes excessive and unnecessary fees.
In Shaw's resignation letter, he writes about the DOJ report saying:
"I must state clearly that my office has never instructed the police department to target African Americans, nor falsify charges to administer fines, nor heap abuses on the backs of the poor. Any inferences of that kind from the report are simply false."
Some in the council meeting called for Police Chief Tom Jackson to step down.
"Chief Jackson is still an employee of the City of Ferugson and that's employee matter that we may discuss at a later date," said Knowles.
John Shaw was not at the meeting Tuesday night, neither was Chief Jackson.
