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CITY OF SANTA ANA <br />CITY MANAGER EMPLOYMENT AGREEMENT <br />This City Manager Employment Agreement ("Agreement") is entered into as of <br />the 5th day of August, 2013 (the 'Effective Date"), between the City of Santa Ana (hereinafter <br />referred to as the "City") and David Cavazos (hereinafter referred to as the "City Manager" or <br />the 'Employee"). City and City Manager/Employee are sometimes referred to in this Agreement <br />as "Party" and collectively as "Parties." <br />RECITALS <br />WHEREAS, the City Council of the City desires to appoint and employ <br />Employee as City Manager pursuant to the Charter of the City of Santa Ana ("City Charter"), <br />and <br />WHEREAS, the Employee desires to accept the appointment as the City Manager <br />of the City, and <br />WHEREAS, it is the desire of the City Council and Employee to set forth certain <br />benefits, establish certain conditions of employment and to set certain working conditions of the <br />City Manager in an Employment Agreement. <br />NOW, THEREFORE, the above named Parties hereby mutually agree and <br />promise as follows: <br />1. Term/Automatic Annual Renewal. <br />This Agreement shall be deemed effective for a three (3) year term beginning on <br />October 21, 2013 and terminating on October 20, 2016, unless terminated earlier in accordance <br />with Section 9 hereof. This initial three (3) year term will, pursuant to the provisions below, <br />automatically extend from year to year unless City Council takes action to prevent the automatic <br />extension. In the event the City Council does not want this Agreement to automatically extend, <br />it will provide written notice to City Manager that the Agreement will not be extended and <br />consequently will terminate as of the end of the current term. <br />If action is not taken by City Council within three (3) months before the <br />expiration of the initial term of this Agreement on October 20, 2016, this Agreement shall on <br />July 20, 2016, automatically extend for one (1) year from October 21, 2016 until October 20, <br />2017. For each succeeding year that the City Council does not take action to extend or terminate <br />this Agreement by three (3) months before the then current end of the Agreement, the Agreement <br />shall automatically extend for an additional year. For example, if action is not taken by the City <br />Council to extend or terminate this Agreement by July 20, 2017, the Agreement shall on that date <br />automatically extend for one (1) year from October 21, 2017, to October 20, 2018, and if the <br />4563 5.01000171180434 <br />25L-3