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THE PAY PLAN This Pay Plan has the following basic characteristics: 1. Pay steps for each classification are enumerated. 2. Pay steps are shown for all existing classes. 3. All pay herein established is on a monthly basis, except where otherwise designated. Pay advancement for each employee shall not be automatic, but shall depend upon the increased value of an employee to the City, as reflected by the recommendations of the employee's supervisor and the department head, and all other pertinent evidence. Exceptionally outstanding service shall be considered adequate grounds for consideration for pay advancement amounting to one step prior to completion of the time intervals specified for each step. The success of the salary plan depends upon incentives which will encourage employees to put forth increasing efforts as they advance through the pay steps of the pay range. Pay advancements shall be made only if recommended by the department head and the Human Resources Director, and approved by the City Manager. The steps of the pay range shall be interpreted and applied as follows: 1. The first or entrance step is the minimum rate and will normally be the hiring rate. Appointment may be made to other than the normal entering pay step when it is decided that such action is in the best interests of the City. 2. The next step in the pay range is an incentive adjustment to encourage an employee to continue to improve his/her work. Six months of satisfactory service normally shall make an employee eligible for consideration for this pay advancement. 3. Succeeding pay steps are incentive adjustments to encourage an employee to continue to improve his/her work. One year of satisfactory service, depending upon the classification, normally shall make an employee eligible for consideration for pay advancement within the established pay range. Individuals hired at the first or second pay step, depending on the classification, after six months of satisfactory service, shall be eligible for consideration for a one step advancement to the next step. In addition to the pay steps and pay differentials noted in the Pay Plan, a pay differential maybe used under certain conditions where both (1) a special assignment is involved or unusual conditions of employment prevail and (2) a pay differential is recommended by the department head and the Human Resources Director, and is approved by the City Manager. Except as modified herein, the pay differential in such cases may consist of a one pay step increase or, if the employee is at the top step, a five percent increase in pay beyond that which the employee concerned would otherwise receive. Such pay differential may continue for the duration of the special assignment or unusual conditions and may be terminated at the end of such special assignment or unusual condition. For hourly rate employees, payments within an hourly rate range shall be set in accordance with the recommendation of the department head and as finally approved by the City Manager. The City Manager, for management employees or officers, or the City Council, for Council appointees, is hereby authorized to and may authorize incentive pay adjustments of up to ten percent of an individual's annual compensation as set forth in the Pay Plan. This adjustment, payable annually (fiscal or calendar) is applicable only to those management staff members who, in the City Manager's sole judgment (for management employees) or City Council (for Council appointees) have in their job performance consistently demonstrated a high degree of productivity, excellence in overall job performance, effective and economic management and commitment to City 5