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2 Compensation and Reimbursement <br />21 Current Base Salary. Effective the first full pay period after the Employment Date, <br />Employee shall receive Two Hundred Sixty-two Thousand Dollars ($ 262,000 00) as annual base <br />salary ("Salary") for the City Attorney position, which shall be paid on a pro -rated basis bid -weekly <br />at the same time as other employees of the City are paid. Employee's Salary shall be subject to <br />normal and proper withholdings as determined by state and federal law, and as determined <br />appropriate by the City Council, and shall be subject to payroll taxes, workers' compensation, and <br />other payroll -related liability costs <br />2.2 Salary Adjustment. Following the annual performance evaluation set forth in <br />Section 5.2 hereof, the City Council may increase Employee's base salary and benefits package <br />based on the results of those annual reviews. Any adjustments in the base salary and/or benefits <br />following the annual performance evaluation under Section 5.2 are not automatic an4 instead <br />shall be at the sole discretion of the City Council <br />2.3 Business Expense Reimbursements. The City shall reimburse Employee for <br />reasonable and necessary gravel, subsistence, and other City related business expenses <br />incurred. by Employee in the performance of her duties. All reimbursements shall be subject to and <br />in accordance with California law, the City's adopted policies, and IRS rules for reporting <br />compensation through payrollor reimbursement through accounts payable <br />3 Termination <br />3 1 Termination by Employee. Employee may terminate this Agreement at:any time, <br />provided Employee provides the City with at least thirty (30) days prior written notice, unless <br />such notice is waived in whole or in part by the City Council In the event Employee terminates <br />this Agreement, Employee expressly agrees that Employee shall not be entitled to any severance <br />pay <br />3.2 Termination by the City. The City may terminate this Agreement at any time, <br />with the affirmative vote of at least a majority of the total membership of the City <br />Council, with or without cause, by providing written notice to Employee of the si.me The <br />City's right to terminate Employee pursuant to this Section 3.2 shall not be subject to, or in <br />any way limited by, the City's Personnel Rules and Regulations, or any subsequent related <br />resolutions, or past City practices related to the employment, discipline or termination of the <br />City's employees Employee 'expressly waives any rights provided for the City Attorney under <br />the City's Personnel Rules and Regulations, Municipal Code, or under other local, state or federal <br />law related to any form of pre- or post -termination hearing, appeal, or other administrative <br />process pertaining to termination Nothing herein shall be construed to create a property <br />interest, where one does not exist by rule of law, in the position of City Attorney <br />(a) Termination by the City for Cause The City may terminate this Agreement <br />at any time by providing Employee with prior wntten notice of the termination for cause and the <br />facts and grounds constituting such cause The term "cause" shall be defined to include any <br />sustained finding of misconduct materially related to performance of official duties, including, but <br />3 <br />L:\ca\djm\Agreements\Employment Agreements\City Attorney\Y Garcia,Employment Agreement 44.19.22,Final.docx <br />