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<br />in consultation with the Manager. Based on the results of this evaluation, the City Commission may, <br />in its sole discretion and subject initially to paragraph A.3. hereinabove, grant a merit salary increase <br />and/or grant other benefits to the City Manager. <br /> <br />5. Retirement Benefits. The City shall contribute into a retirement program chosen by the <br />City Manager the sum of 10% of annual salary, excluding car allowance, and insurance benefits, <br />paid monthly. In the event the City Manager desires to participate in the ICMA deferred <br />compensation, or 401 program, the City agrees to execute all necessary documents and agreements <br />provided by the ICMA Retirement Corporation and contribute into the ICMA deferred compensation <br />program the sum provided herein on behalf of City Manager. <br /> <br />6. Carffelephone Allowance. The City shall provide City Manager with a $500.00/month <br />car allowance. The City shall also provide the Manager with a portable telephone and a beeper. The <br />City shall be responsible for payment of the phone, selected phone service(s) and billing associated <br />with the use of the telephone for City purposes as substantiated by detailed billing charges. The <br />Manager shall be responsible for the billing of personal calls, if any. <br /> <br />7. Insurance Benefits. <br /> <br />A. Medical. Effective immediately upon commencement of the Manager's term, <br />and if the Manager decides to remain with existing medical and dental coverage, the City shall pay <br />the prorated cost of such coverage for the Manager, his spouse and his child(ren) provided that the <br />Manager furnishes proof of such coverage. Thereafter, or, effective immediately upon the <br />commencement of Manager's term, if he decides not to remain with his existing coverage, the City <br />agrees to pay monthly premiums for medical and dental insurance coverage for the City Manager, <br />his spouse and child(ren) in any health (medical and dental) plan as may be available to other <br />employees, when adopted. <br /> <br />B. Life. The City shall pay premiums for life insurance ($25,000.00 policy) coverage <br />comparable to the coverage provided the City Manager at his City oflast employment. Ifhe decides <br />to remain with his existing coverage, he shall receive an insurance allowance to cover said <br />premi um( s) and shall furnish proof of such coverage. <br /> <br />C. Disability, At such time as a disability plan is established for the city, the Manager shall <br />be included in that coverage. <br /> <br />8. Vacation. Sick Leave and Holidays. <br /> <br />A. Vacation. The City Manager shall accrue vacation time of 1.7 days per month <br />(20.4 days per year) and shall begin his term of employment with two (2) days already earned, as <br />of the date of employment, provided however, in no event, shall the Manager be entitled to receive <br />compensation for more than 300 hours of accrued, unused vacation time upon termination of this <br />agreement by either party. The Manager shall advise the Commission in advance ifhe plans to use <br /> <br />EmpIoannt. wpcI <br /> <br />-2- <br />