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Personnel Committee Chairperson Hartnett explained the proposal is designed to allow the City Manager flexibility to evaluate and compensate staff that reports to him in a way that is not a typical Civil Service where step increases are set based on longevity and cost of living. The proposal awards performance and is designed to motivate employees to work hard and allow the City Manager flexibility to compensate within a range. There is also a bonus system of limited amount that allows the City Manager the flexibility to provide a certain level of bonus to those performing at an extraordinarily high level. M/S Hartnett/Ira to approve the proposal as follows: The salary range for each Department Head classification to be established by using the salaries of the lowest and highest new comparable cities. Department Heads will be evaluated annually by the City Manager and their salaries set accordingly within the established low /high range based on performance. After some experience with the system, Division Heads or other staff may be considered for this compensation system. A bonus program for all Executive Management classifications that offers a one time 5% of base salary for exceptional performance (not average, above average or expected performance) to be awarded at the discretion of the City Manager and only when deemed appropriate. Any bonus awarded is not to be considered part of base salary nor does any bonus serve as a basis for future compensation. Annually, through the budget process, the City Manager will recommend to the Council an amount to be appropriated for this program for the ensuing fiscal. An initial $35,000.00 is established for FY 00/01. The motion passed by a unanimous roll call vote. MINUTE ORDER 00 -271 9. STAFF REPORTS — A. Two urgency interim ordinances to limit office development on parcels one acre or larger in certain zoning districts citywide and to limit all development in the Bair Island Road Study Area (vicinity of Bair Island Rd./East Bayshore Blvd./Maple St.): (301) Community Development Services Director Nelson stated the urgency is due to the rapid growth in office use and much land in the city will be developed or converted to office use before decisions can be made on desired land use and intensity of development. She stated the various issues and described the areas affected by the ordinances as office development or conversions on parcels of one acre or greater. The areas affected by the first ordinance are primarily in the districts in the El Camino Real corridor (CG and CG -R zoning districts) and Woodside Road corrider between Alameda de las Pulgas and El Camino Real (CG -R REGULAR COUNCIL MEETING MINUTES JULY 24, 2000 PAGE MINUTES Book No.58 Page NO. 167