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Mayor Hosterman commented to the Boyce family that they have every right to develop their property in such a way that it will better serve their family in years to come. She added she hopes they will be able to come up with something that works for them, but it also has to be something that works in the downtown and with the historic neighborhood. The City Manager noted a vote must be taken to continue with the City Council Meeting since it is after 11 :30 p.m. Motion: It was m/s by SullivanlThorne to continue with the meeting. Motion carried by the following vote: Ayes: Noes: Absent: Councilmembers Brozosky, McGovern, Sullivan, Thorne, Mayor Hosterman None None 6d. Review and discuss Resolution amending Compensation for City of Pleasanton Management and Confidential Employees (SR 06:253) Administrative Service Director Lorie Tinfow gave an overview of the proposed compensation adjustments. She noted unlike previous years, staff is introducing the proposed resolution amending compensation for management and confidential employees in two steps. The first step is an introduction of the matter this evening, with no formal action being requested. The second step involves formal action at the November 7th meeting. The proposed resolution authorizes a 4.0% performance- based salary increase for City of Pleasanton management and confidential employees. She reviewed the Public/Private Sector Compensation Study and noted it is expected that the data will be available in early 2007. It was noted the total cost of the proposed 4.0% increase on salaries for managers and confidential employees, including the total cost of this increase on benefit premiums that are directly ties to wages is approximately $397,000. There are sufficient funds in the City's two-year operating budget to cover this expense. Councilmember Brozosky clarified the 4% is a salary pool. He also suggested this would make more sense for the Council to consider when they do the budget. Staff agreed that would make sense and indicated there are ways for the Council to identify in the two-year budget what the proposed increases could be at the highest level and then attach those increases to some sort of CPI formula with a floor of 2% with a ceiling of 4%. Then, whatever the CPI is in August it would go into effect in September. It would not have to come back to Council because it will have been as part of the budget process. Councilmember Thorne indicated that the proposed increase will not widen the gap; the private sector will be matching it. Councilmember McGovern appreciated the "sun shining" this proposal because for the next two weeks the public has the ability to get the information and make any comments they wish to make. Mayor Hosterman noted there were no speakers to address this issue. City Council Minutes 14 October 17, 2006