R2006-120 AUTHORIZING AMENDMENT TO EMPLOYMENT AGREEMENT

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� KEI3A$T, PECSEBT 8e BOOTH A PARTNS86HIP INCLVDINO A PHOF86SIONAL COHPOBATION ATTOBNEYS AT LAW EDWABD BOOTH I3Z SOUTH WATEB� SUITB 'ZOO TELEPHONE6: MICAAEL J.KEHABT PpST OFFICB BO%H6O (217)428-4689 � Jwl.irss E.Pscssax DECATIIB� ILLZNOIS 62525-0860 �217) 423-6076 WIr.nxAM D. TBIMBL$ FAC6IMIna:(217)422J950 I Jwsox B. Stawx.r. ROBEHT W. OHLBEN Swxnan L.Nxr.r.$s oa CouxssL (217) 429-5237 July 26, 2006 The Honorable Paul Osborne Mayor—City of Decatur Post Office Box 1490 Decatur, Illinois 62525-1490 RE: Proposed Amendment to Employment Agreement of Steve Garman Dear Mayor Osborne: On behalf of the City of Decatur, an Illinois municipal corporation (the "City"), we have drafted a proposed 2006 Amendment to Employment Agreement (the "Amendment"), for further amendment to a certain Employment Agreement, dated September 24, 1999 between the City and the City Manager, Steve Garman (the "Employee"). The Amendment is the latest in a series of amendments to the Employment Agreement originally dated September 24, 1999. For your convenience, we enclose herewith four(4) copies of the Amendment. The Amendment extends the term of the Employee's employment agreement with the City for a period of two (2) years (continuing to be subject to the rights of termination found in earlier amendments or the originally dated employment agreement) (see Amendment,¶2). Paragraph 3 of the Amendment includes language to effectuate a three percent(3%)increase in the employee's salary from One Hundred Twenty-seven Thousand Three Thirty-eight Dollars ($127,338.00)to One Hundred Thirty-one Thousand One Hundred Fifty-eight Dollars($131,158.00) Please note that the increase in the Employee's annual salary is not retroactive to any date preceding the `Effective Date" of the Amendment. For your information, prior salary increases became effective for the Employee on July 1 of a specified calendar year. Paragraph 3 further notes the monthly payment to te Employee of Five Hundred Dollars($500.00)as an automobile allowance to reimburse the Employee for his use of his personal automobile for the business of the City. Paragraph 4 of the Amendment includes a new provision which formerly has been absent from any agreement between the City and the Employee. This provision requires the Employee to maintain automobile liability insurance coverage on any personal automobile used by the Employee for City business, which coverage is not to be less than $250,000/$500,000/$100,000 limits. Additionally,the Employee is to identify the City as an additional insured under any such automobile