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input record .data, written information, and other materials either created by or provided to <br />Employee in connection with the performance of this Agreement shall be held confidential by <br />Employee to the extent permitted by applicable law, except as may be required by any <br />governmental agency or court of competent jurisdiction. Such materials shall not be used by <br />Employee, without the prior written consent of the City Council, for any purposes other than the <br />performance of Employee's duties. Additionally, no such materials may be disclosed to any person <br />or entity not connected with the performance of services under this Agreement, except as required <br />by (a) law, (b) any governmental agency, (c) subpoena, or (d) an order issued by a court of <br />competent jurisdiction. <br />1.8 ICMA Code of Ethics. The Parties mutually desire for Employee to be subject to <br />and comply with the International City/County Management Association (`ICMA") Code of <br />Ethics, and Employee commits to comply with the ICMA Code of Ethics. The City and the City <br />Council agree that the City Council will not require that Employee violate the ICMA Code of <br />Ethics as part of his employment with the City. <br />2. Compensation and Reimbursement <br />2.1 Current Base Salary. Employee shall receive Two Hundred Eighty Thousand <br />Dollars ($280,000) as his annual base salary (`Salary") for the City Manager position. Employee's <br />Salary shall be paid on a pro -rated basis bi-weekly at the same time as other employees of the <br />City are paid, and shall be subject to normal and proper withholdings as determined by state <br />and federal law, and as determined appropriate by the City Council, and shall be subject to <br />payroll taxes, workers' compensation, and 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 and instead <br />shall be at the sole discretion of the City Council. <br />2.3 Incentive Bonus. Annually, beginning in August 2023, Employee may be eligible <br />for a lump -sum incentive bonus, at the sole discretion of the City Council, for performance <br />substantially above expectations. The City Council will establish criteria as the basis for any bonus <br />that may be awarded and such criteria will be delivered in writing to Employee before December <br />31 of each year. Employee and City agree that the City Council is not obligated to grant an <br />incentive bonus and that no assurances have been given to Employee that any incentive bonus will <br />be granted during the terra of this Agreement. <br />2.4 Business Expense Reimbursements. The City shall reimburse Employee for <br />reasonable and necessary travel, subsistence, and other City related business expenses <br />incurred by Employee in the performance of his 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 payroll or reimbursement through accounts payable. <br />3 <br />L:\ce\Agmcmrms\Employmont Agreements\City Meoager\Chnlc M. Duggan Sr\v.3.final.City Manager Employment Agreement September 2022.docx.jn <br />