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Based on what occurred this evening, Mayor Pico pointed out that the Council is made up of a lot of different perspectives and the Councilmembers are looking out for the best interests of the citizens of Pleasanton. The Council may not always agree, but he believed it was healthy to have differences of opinions. He thanked Ms. Ayala and Mr. Brozosky for their frankness and noted it took a lot of courage to have this type of discussion. He believed the citizens of Pleasanton feel empowered, which has been proven tonight by the turnout and comments received. Based on his 11 years of experience as a member of the Council in watching the budget during the good and bad times, he noted that Council has never had to back offon essential services like other neighboring cities have had to do. He recognized those who had experienced cut backs and loss of jobs, and, again, pointed out that the City of Pleasanton has substantial financial reserves. The past year was one of significant surplus and the City was able to set aside $4 million dollars for a contingency reserve for economic uncertainties and $10 million dollars into capital improvement projects. He believed the current year looks financially secure for the City, and noted that while the State of California is in financial crisis, the reality is that the City has a different set of financial revenues and income stream than that of the State. The State's primary problem is due to the drop in income taxes and the fact that when they had increases in tax revenues, they believed it would never end. The State continued to spend and did not consider setting aside money for financial hard times. He was proud that the City of Pleasanton did not follow this model. Resources and money were stored away for future years, and because of that, Council is in a position to acknowledge and recognize their management employees. The City would not have surplus and reduced workers compensation costs by almost $1 million dollars, nor would it have the high level of morale and service if it were not for the leadership of the management and all other employees. He has worked hard over the past 11 years to create this type of environment. He believed that if Council did not treat the management and confidential employees fairly, they would be doing a big disservice to the City and put the City into a position where the long-term support created would be jeopardized. At some fature point in time, he would agree to consider some type of salary survey to ensure the community that City employees are not unfairly compensated or over compensated. The roll call vote was as follows: AYES: Councilmembers - Ayala and Brozosky NOES: Couneilmembers - Campbell, Hosterman, and Mayor Pico ABSENT: None ABSTAIN: None It was moved by Mr. Campbell, seconded by Ms. Hosterman, to adopt Resolution 03-113 authorizing an increase to the salary control points for each management classification in an amount not to exceed a pool equal to 5% of the current management/confidential compensation, and otherwise approving the Management and Confidential Employee Compensation Plan. Mr. Campbell believed he was malting a responsible decision for the City and strongly believed that Council and the public ought to treat the employees that they Pleasant City Council 25 10/21/03 Minutes