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EMPLOYMENT AGREEMENT BETWEEN <br />THE CITY OF SAN MARCOS, TEXAS AND RICK MENCHACA <br />FOR THE POSITION OF CITY MANAGER <br />AGREEMENT made and entered into this 30T" day of April, 2008, by and between the City of <br />San Marcos, Texas, a municipal corporation, hereinafter called "City," and Rick Menchaca, <br />hereinafter called "Employee," both of whom understand as follows: <br />WHEREAS, City desires to employ the services of Employee as City Manager, as provided by <br />Sec. 4.01 of the City Charter; and <br />WHEREAS, it is the desire of the City's governing body, hereinafter called "City Council," to <br />provide for the compensation and other terms and conditions of Employee's employment; and <br />WHEREAS, Employee desires to accept employment by the City on the terms indicated; <br />NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties <br />agree as follows: <br />Section 1: Duties <br />The City hereby agrees to employ Employee, and Employee hereby accepts employment, as <br />City Manager, to perform the functions and duties specified in said Sec. 4.01 of the City Charter <br />and applicable provisions of the City Code and to perform other legally permissible and proper <br />duties and functions as the City Council shall from time to time assign. <br />Section 2: Residency <br />The employee shall establish his principal physical residence in the city, within 90 days after <br />appointment, and shall have his principal physical residence in the city continuously thereafter. <br />Section 3: Term <br />A. The term of this Agreement shall be one (1) year, commencing on May 1, 2008, unless <br />sooner terminated as provided herein. <br />B. Upon expiration of the term specified in the preceding paragraph, this Agreement shall <br />automatically renew itself for successive one-year periods, unless either party shall give <br />written notice to the other at least thirty (30) days prior to the terminal date of this Agreement <br />or of any succeeding year, that this Agreement will not be renewed. <br />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 $170,000 per year. <br />B. A car allowance of $500 per month. <br />Page 1 of 6 <br />