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SECTION 4. COMPENSATION PLAN The Compensation Plan shall consist of the Salary Schedule, Salary Increases by Grade, the Alphabetical Listing of Job Titles with assigned grades, and the following policies that govern the administration of the Compensation Plan. The City Manager may authorize variations in the application of this section and may make adjustments and modifications as needed. The grades assigned in the Alphabetical Listing of Job Titles designate the salary range for each position with due respect to 1) the salary ranges for other classes, 2) the relative dif- ficulty, responsibility, and characteristic duties of positions in the class, 3) the minimum qualifications required, 4) the prevailing rate paid for similar employment outside the City, and 5) any other factors that may properly be considered to have a bearing upon the fairness or adequacy of the range. The Salary Schedule shall contain a series of salary ranges, each range having a minimum, middle/market rate, and maximum salary. The Compensation Plan shall be governed by the following policies: a. Salary Increases for 1997-98 Salaries for employees will be increased by the fixed dollar amount as shown in Sec. 10(A): Salary Increases by Grade. No employee's salary will be increased beyond the maximum range of their grade. b. Salary Schedule Adiustments Effective July 1, 1997, each grade range of the salary schedule will be increased by 2%. Refer to Sec. 10(B). c. New Employees Effective July 1, 1997, all newly hired employees will be considered probationary for the first 6 months of employment, except for sworn police and fire employees who will continue to serve a 12 month probationary period. Employees hired prior to July 1, 1997, will complete a one year probationary period as established from their original date of hire. They shall receive compensation according to the classification in which they are placed. An employee may be hired up to the middle range of the classification without the written approval of the City Manager or his designee. Requests for exceptions must be included on the Employee Selection Review Form for positions covered under Administrative Policy Directive #18, -4-