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Section 4: Best Efforts <br />Employee agrees to devote his best efforts, energies, and skill to the discharge of the duties <br />and responsibilities attributable to his position, and to this end, he will devote his full time and <br />attention exclusively to the business and affairs of the City. Employee agrees that he may not <br />derive any personal advantage or gain, either directly or indirectly, with respect to any business <br />transaction in which the City engages, and that he will promptly disclose in writing to the City <br />Council all facts that are material to any such potential profit or gain. <br />Section 5: Salary <br />All compensation shall be payable in installments at the same time as other employees of the <br />City unless otherwise noted. The City agrees to pay Employee for his services rendered <br />pursuant hereto: <br />A. An initial base salary of $131,000 per year <br />B. A car allowance of $500 per month ($6,000/year). <br />C. In lieu of 5% of Employee's salary being directed to the ICMA-RC on the Employee's behalf, <br />$6650 will be added to Employee's initial base salary. <br />D. The City will also provide a one time payment of $5,000 for relocation expenses. <br />The City Council may increase the salary of the Employee from time to time, at its discretion. <br />Section 6: Performance Evaluation <br />A. The City Council shall review and evaluate the performance of the Employee at such times <br />as are determined appropriate by the City Council. Such review and evaluation shall be in <br />accordance with specific criteria developed jointly by the City and Employee, and in <br />accordance to the provisions of Section 2.021 of the San Marcos City Code. Said criteria <br />may be added to or deleted from as the City Council may from time to time determine, in <br />consultation with the Employee. Further, the Mayor of the City of San Marcos shall provide <br />the employee with a summary written statement of the findings of the City Council and <br />provide an adequate opportunity for the Employee to discuss his evaluation with the City <br />Council <br />B The City Council shall define such goals and performance objectives that they determine <br />necessary for the proper operation of the City and the attainment of the City Council's policy <br />objectives. <br />C. Merit consideration will be provided once each year or more often if the City Council so <br />indicates. Such salary increases, if given, will be based upon satisfactory or better <br />performance during each year of employment. <br />Page 2 of 6 <br />