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each succeeding year that the City Council does not take action to extend or terminate this <br />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, 2018, the Agreement shall on that date <br />automatically extend for one (1) year from October 21, 2018, to October 20, 2019, and if the <br />City Council doesn't take action to extend or terminate this Agreement by July 20, 2019, it will <br />automatically extend for one (1) year from October 21, 2019 to October 20, 2020, <br />Section 2.2.7, HOUSING ALLOWANCE, shall be deleted in its entirety and replaced with <br />the following: <br />2.2.7 Housing Allowance <br />It is understood that City Manager intends to reside in the City of Santa Ana <br />during his employment as City Manager, and that initially he will require a temporary residence <br />while he is purchasing a permanent residence in the City. Further, it is understood that the City <br />Council desires that City Manager reside within the City of Santa Ana and believes that such <br />residence would be of benefit to the City and enhance City Manager's performance as City <br />Manager, and therefore, the City will pay City Manager the following allowances and assistance. <br />Section 2.23(b), HOUSING ALLOWANCE, shall be deleted in its entirety and replaced <br />with the following: <br />(b)Housing Allowance (Temporary) <br />Upon the termination of the Temporary Housing Assistance provided for in <br />Section 2.2.7 (a), City shall pay City Manager a housing allowance in the amount of $2,000.00 <br />per month up until October 16, 2016. Said housing allowance shall be contingent upon City <br />Manager residing within the City. <br />Except as bereinabove amended, all terms and conditions of said Agreement shall <br />remain in full force and effect. <br />IN WITNESS WHEREOF, the Parties have executed this First Amendment to the <br />City Manager Employment Agreement as of the 2nd day of September, 2014, <br />EMPLOY M/ ANAG> R <br />David Cavazos <br />55394.00002 \740641.9.1 2 <br />