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Section 3. Salaries 3.1 Effective September 1, 2000, the control points for all management and confidential classifications are as reflected in Appendix A and Appendix B. Individual salary adjustments will become effective September 2, 2000, the beginning of the first pay period in September. The administration of rnanagement and confidential salaries shall be in accordance with the provisions of the Management and Confidential Base Salary Plan attached as Appendix C. 3.2 Salary Setting Promotion When a management or confidential employee is promoted he /she shall be assigned a salary within their new classification salary grade that is at least five percent above the salary held in the former classification. Section 4. Performance Bonus The City Manager may recognize a management or confidential employee's specific accomplishments by authorizing a performance bonus. In the case of a middle management or confidential employee, the employee's department head must recommend a performance bonus. The performance bonus may be authorized for significant project accomplishments or significant cost savings beyond the normal high expectations of the management staff. All bonuses granted shall be in the form of a one -time payment. The total of all bonuses granted shall not exceed seventy -five thousand dollars ($75,000) annually. Section 5. Special Compensation 5.1 Overtime - Confidential Employees Confidential employees who are assigned by their supervisor to work after completion of their regular work day shall be entitled to overtime compensation for all hours so worked, provided, however, that the overtime rate shall be computed at one and one - half (1 -1/2) times the employee's regular rate of pay as calculated to the nearest minute. Confidential employees may be compensated for overtime worked either by monetary payment or by compensatory time off, at the option of the employee. Page 3 of 30