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each succeeding year that the City Council does not take potion to extend or terminate this Agreement by threa (3) months before the then outtrant end of the Agreement, the Agreement shall autcunatically extend for an additional year. For example, if action is not taken by the City Council to axtand or terminate this Agreement by July 20, 2018, the A.geeemout shall on that date automatically extend for one (1) year from October 21, 2018, to Oetobor 20, 2010, and if the City Council doesn't take action to extend or wanate this Agreement by Judy 20, 2019, it w111 automatically extend for one (1) year from October 2.1, 2019 to October 20, 2020, Section -2 1.7, H0119NCr ALLOWANCE, shall be deleted hi its enthoty and ropisoed with the following: 2.2,7 'klousingAllowanoa It is 'understood that City Manager intands to reside in the City of Santa Ana daring his employment as City 1vlane9w, and that initially he will requiro a temporary residence whilo he is purchasing a permanent residence in the City. ltturther, it is mnd:srstood that the City Council daA MS that City Manager reside within the City of 9auta'Ana and believes that such residence would be of benellt to the City'and enhance City Manager's per'Amnance ad City Manager, and therefore, the City vd" pay City Uanager the following allowances and assistance. Section 217(b), HOUSING ALLOWANCE, shall be deleted in its entirety and replaced with the f0liowi0s, (b)HouWng Allowanoo (Temporary) UP% the tahnination of the Tompomry Housing Assistanoe •pfovided for in Section 21.7 (a), City shall pay City Manager a housing allowance in the amotuut of $2,000.00 P* month up until October 16, 2016. Said housing allowaaea shall bo contingent upon City Manager residing within the City, EXOapt as bercinaboye amended, all torms and conditions of said Agreement shall remain in full fordo and a££ect, IN W1TN3SS WHEREOF, the finites bays executed this First Arnondment to the City Manager Employment Agreement as of the 2nd day of September, 2014. EMPLO /CrrY MANAGER 4 David Cavazos 65394.0000140641M 65D -19