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2. SALARY. The City of Little Canada agrees to pay Tangen a <br />salary of $39,411 per year starting January 22, 1996. The City <br />agrees that on January 1, 1997 Tangen's salary will be adjusted <br />to $41,048 plus any cost of living adjustments made to the salary <br />scale for the position of Public Works Director with said <br />adjustments to be subject to satisfactory performance. <br />Tangen's salary will be reviewed annually thereafter in <br />accordance with the review of the salaries of other City <br />employees and in compliance with the City's comparable worth <br />plan. The City agrees to provide a performance review of Tangen <br />in July of 1996 and once per year thereafter. <br />3. DEFERRED COMPENSATION. The City shall allow Tangen to enroll <br />in the ICMA -RC deferred compensation plan with contributions to <br />this plan to be the sole responsibility of Tangen. <br />4. VACATIONS. Tangen will accrue vacation pursuant to City's <br />vacation schedule. As a department head, Tangen will also be <br />eligible for an additional week's vacation to be accrued at the <br />end of each calendar year subject to satisfactory performance as <br />determined by the City Administrator. Administration of vacation <br />benefits shall be subject to Section 13 of City's Personnel <br />Policy. <br />5. SICK LEAVE. Tangen will accrue sick leave pursuant to the <br />City's adopted sick leave policy. Tangen shall accumulate sick <br />Page 61 <br />