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89-7501R62 RESOLUTION NO. 7501 RESOLUTION AMENDING THE LETTER OF UNDERSTANDING BETWEEN THE CITY OF RICHFIELD AND JAMES D. PROSSER, CITY MANAGER, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: The following sections of the Letter of Understanding between the City of Richfield, Minnesota and James D. Prosser, dated July 14, 1986, is amended as follows: Section 5, Salary: Employer agrees to pay employee for his services rendered pursuant here to an annual base salary of 571,510, effective September 1, 1988, payable in installments at the same time as other employees of the employer are paid. Employee shall also receive an additional sum of money equal to the amount of certain benefits previously paid to the employee but discontinued on April 1, 1989. The City will annually adjust the City Manager's salary by adding an amount equal to the difference between the maximum annual amount contributed by the City for Management employees toward the family cost of health and dental insurance coverages, and the total annual family premium costs of these insurance coverages. Such additional sums to be paid in equal installments at the same time employee receives installments of base salary. In addition, employer agrees to increase said base salary and/or other benefits of employee in such amounts and to such extent as the Council may determine that it is desirable to do so on the basis of an annual salary review of said employee on or about August 31 of each year. Section 11, Vacation, Personal Leave and Military Leave, Sub-Paragraph A: As an inducement to employ him~and to become City Manager, at signatures hereof, employee shall be credited with eighteen (18) days of vacation leave and six days of personal leave. Thereafter, employee shall accrue and have credited to his personal account, vacation and personal leave at the same rate as other management employees of the employer provided, however, that commencing January 1, 1989, the City Manager shall accrue five additional days of vacation per year and there shall be no maximum accrual leave cap applicable to the City Manag_er's vacation leave account. he City of Rich 'eld, 1989. ~ St ve Qua Mayor