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SECTION 4. COMPENSATION PLAN The Compensation Plan shall consist of the Salary Schedule, 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 difficulty, 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 in Section 10 (A) shall contain a series of salary ranges, each range having a minimum, midpoint and maximum salary. The Sworn Personnel Salary Schedule in Section 10 (B) shall contain a series of Public Safety (PS) grades by rank and steps. Salary/Step increases may be withheld from employees by the Department Head upon submission of two (2) "Below Expectations" performance evaluations to the employee. One performance evaluation must have been conducted prior to, and one subsequent to, three months before the employee becomes eligible for the salary increase. The Compensation Plan shall be governed by the following policies: a. Salary/Step Increases for 2010-2011 There will be no salary increases for general employees. There will be a one-step increase in accordance with the Sworn Personnel Salary Schedule in Section 10 (B) for sworn Fire and Police employees effective on their continuous service date following July 1,2010. 5