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equal, in weekly or monthly or other installments, to his compensation while last employed • by the City or (b) works at least 40 hours per week. D. Other. The non -renewal or termination payments provided for in this section shall not be considered as part of the Manager's base pay in computing the City's contribution to the Manager's retirement plan pursuant to Section 13 of this contract. SECTION 8. PERFORMANCE EVALUATION A. The City Council shall review and evaluate the performance of the Manager by November 1 of each year of this agreement. The review and evaluation shall be in accordance with specific written criteria to be developed jointly by the City Council and the Manager. B. Annually, during the term of this agreement and any renewals thereof, the City Council and Manager shall define goals and performance objectives for the proper operation of the City and the fulfillment of the Council's policies. They shall further establish priorities among those goals and objectives, which shall be agreed upon in writing by November 1 of each year of this agreement. • C. As part of the goals and performance objectives defined pursuant to paragraph (B), the Manager and City Council shall identify, in writing, certain "stretch" objectives, or ambitious and challenging goals which will be difficult for the Manager to achieve but which will have a significant and lasting positive effect on the City if accomplished. The Manager shall include these agreed-upon stretch objectives in his annual work plan and, during each subsequent performance evaluation, provide City Council with a written report on the status of his work towards those objectives. City Council may, in its discretion, award the Manager a one-time salary supplement in an amount up to 10% of his annual base salary for accomplishment, or for significant progress towards accomplishment, of any agreed-upon stretch objective. SECTION 9. HOURS OF WORK AND LIMITATIONS ON OTHER EMPLOYMENT It is recognized that the Manager must devote a great deal of time outside the normal office hours of the City, and to that end the Manager will be allowed periodically to take time off during normal office hours. The Manager shall not engage in any business activity for compensation and shall not engage in teaching, consulting, or other non -city connected activities for compensation without the prior approval of Council via written notice from the Mayor. 0 4