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changes in the average Consumer Price Index for goods and services, the wages, hours and other terms or conditions of employment of other employees performing similar services, and the financial condition of the City. The following cities and districts are to be surveyed: Alameda, Berkeley, Daly City, Menlo Park Fire Protection District, Mountain View, Palo Alto, Richmond, San Leandro, San Mateo, San Ramon Valley Fire Protection District, Santa Clara, South County Fire Protection Authority, and South San Francisco. These agencies shall not be changed except by mutual consent of the parties. The survey conducted by University Research & Associates, shall be updated and completed by October 1,2000. The cost of this report to be shared equally by the City and Local 2400. Effective the first of the pay period closest to January 1, 1998, salaries shall be increased four and one-half percent (4.5%). Effective the first of the pay period closest to January 1, 1999, salaries shall be increased five percent (5%). Effective the first of the pay period closest to January 1,2000, salaries shall be increased four and one-half percent (4.5%). 7.2.1 Initial appointments shall normally be made at the lowest step or rate of pay. Upon approval of the Council, such appointments may be made at the second or third step when justified upon consideration of the difficulty of locating qualified personnel and an appointee's experience, education, knowledge of particular duties required, personal fitness for the position, and such other criteria as may be reasonably related to such preferential consideration on the basis of merit. 7.2.2 A Captain may be eligible for a salary adjustment to the next higher step above the initial step or rate to which appointment was made upon the satisfactory completion of six (6) consecutive months' employment. An adjustment shall be made only upon the recommendation of the department head and upon approval of the City Manager. Progression of a Captain from the second step to the third step, from the third step to the fourth step, and from the fourth step to the fifth step of the salary schedule, may be made upon completion of a minimum period of one (I) year at the respective lower step and upon consideration of such employee's performance of duties, experience, education, personal fitness for the position, and other 10