The Personnel Director, under the direction of the City Manager and in consultation with the Director of Finance, shall prepare a compensation plan which shall include all classes of positions covered by the classification plan. The rate or range for each class shall be such as to reflect fairly the difference in duties and responsibilities and shall be related to compensation for comparable positions in other places of public and private employment. The plan shall be presented to Council through the City Manager and, when approved by Council by resolution, shall be applied to all positions and classes of positions then in existence, in the manner provided in such resolution.