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reasonably necessary for Manager to carry out his duties in accordance with this <br />Section. <br />6. DISABILITY. <br />The City shall have the option to terminate this Agreement without further <br />payment of compensation and benefits under Paragraph 7, or severance payment <br />under Paragraph 8(c) if Manager is deceased, permanently disabled, or incapacitated, <br />for a period of two (2) successive weeks beyond any accrued sick leave, or for twenty <br />(20) working days over a thirty (30) working day period. In exercising the option to <br />terminate this Agreement, the City shall comply with all applicable provisions of state <br />and federal disability and medical leave laws. <br />7. COMPENSATION AND BENEFITS. <br />a. Salary. City agrees to pay Manager for his services rendered pursuant <br />hereto as City Manager the annual sum of Two Hundred Fifty-Five <br />Thousand Dollars ($255,000.00). Beginning January 1, 2019 and each <br />January 1 thereafter for the duration of the Term, Manager shall be <br />entitled to a salary increase equal to the lesser of 3% or the salary <br />increase provided to members of the San Leandro City Employees’ <br />Association under its current Memorandum of Understanding (MOU) with <br />the City Council. This annual salary shall be payable in installments at the <br />same time as other employees of the City are paid. <br />b. Vacation Leave. Manager shall accrue vacation leave, vacation buy-out, <br />and vacation time carry-over in accordance with the San Leandro <br />Management Organization (SLMO) MOU as it may be amended from time <br />263