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J DISCUSSION The City Council appoints and evaluates the City Manager. (Municipal Code §2.08.010.) In 2014, the City Council approved committee assignments, and the Manager Evaluation Committee consists of Mayor Thorne and Councilmember Narum. This subcommittee has met with the City Manager to evaluate and summarize his accomplishments. The subcommittee shared this information, as well as a salary survey, with the full Council at a noticed Special Meeting — Closed Session Employee Evaluation on June 22nd. The City Manager's original contract was entered into in 2004. Three years later, in 2007, a First Amendment was adopted that provided for an eleven percent salary increase. A Second Amendment was adopted in January 2011 (at the City Manager's request) to allow him to pay his employer paid member contribution share of his pension, which resulted in an effective salary decrease of eight percent. A survey of other city manager's salaries was reviewed, which included the following information: Agency Reported monthly salary Employee monthly paid pension Monthly auto allowance Dublin $19,064 $1,525 $190 Livermore $18,323 $1,465 $500 Pleasanton $16,419 $1,313 $400 San Ramon $20,476 $1,023 $500 Based on an evaluation of City Manager Nelson Fialho's accomplishments since 2007, as well as this salary survey, the attached Third Amendment adjusts his annual salary by 5% on 8/1/15 from $197,026 to $206,877 ($17,240 monthly) plus 2% of salary ($4,138) into a deferred compensation plan; and then by 5% on 8/1/2016 from $206,877 to $217,221 ($18,102 monthly) plus 2% of salary ($4,344) into a deferred compensation plan. Contributions to his deferred compensation plan are not counted as salary for purposes of pension calculation. The Third Amendment also amends his contract to provide an option for either the existing $400 monthly car allowance or a City- provided car. A City- provided car would be for his exclusive and unrestricted use, but could not be used by his family. He would pay for gasoline, but the City would register and insure this City- provided car. The Third Amendment also gives five additional days of vacation (from 4 weeks to 5 weeks). Finally, the Third Amendment requires him to pay towards his monthly medical insurance coverage the greater of: (i) $25 per month; or (ii) the difference between the