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5. Compensation. <br /> a. Base Salary. The City agrees to pay Nunez for the services <br /> required by this Agreement a base annual salary of three-hundred forty thousand two <br /> hundred Dollars ($340,200.00), payable in equal installments at the same time as other <br /> employees of the City are paid and subject to customary withholding for taxes and other <br /> required deductions. <br /> b. Other Salary Adjustments. On his Anniversary Date, the City <br /> may consider potential increases to Nunez's salary and/or any other benefits Nunez <br /> receives, and to make modifications in such amounts and to such extent (whether in the <br /> nature of a merit-based base salary increase, other compensation enhancement, or <br /> otherwise) based on performance, comparative salaries, and the finances of the City, as <br /> the City Council in its discretion may determine that it is desirable to do so, to take effect <br /> upon City Council approval. The City Council may, in its discretion, also determine to give <br /> Nunez exceptional performance recognition in the form of a one-time check for <br /> exceptional performance during the prior year, to take effect upon City Council approval. <br /> Any modifications to Nunez's compensation or benefits as contemplated in this Section <br /> 5.c require written amendment of this Agreement, approved by the City Council at a <br /> regular meeting. <br /> C. Bilingual Pay. If Nunez elects to qualify for bilingual skill pay, <br /> the City will pay him the highest amount available to management employees on a <br /> schedule consistent with other employees. <br /> 6. Automobile. The City agrees that upon proof of insurance coverage <br /> in an amount acceptable to the City, the City shall provide Nunez a City-owned vehicle <br /> for Nunez's exclusive use. The City will be responsible for paying for liability, property <br /> damage, and comprehensive liability insurance for the purchase, operation, maintenance, <br /> repair, and regular replacement of said vehicle. At Nunez's discretion, in lieu of electing <br /> to utilize a City-owned vehicle, he may elect to receive a monthly vehicle allowance of <br /> Five Hundred Dollars ($500.00) per month, which shall be paid on a schedule consistent <br /> with the unrepresented Executive Management Group. The vehicle allowance is intended <br /> to reimburse Nunez for mileage costs and the use of his private vehicle for City business. <br /> If Nunez elects the allowance he must provide his own automobile for his use in <br />