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ARTICLE IV <br />4.0 SALARIES <br />4.1 Basic Compensation Plan. There is hereby established a basic compensation plan for all <br />members of the Santa Ana Police Officers Association who are now employed or will in <br />the future be employed in any of the designated classifications of employment listed in <br />this MOU and its attachments. <br />4.2 Salary Schedule. The basic salary schedule, attached hereto in a matrix format as Exhibit <br />"A", and made a part hereof as though set forth in full herein, provides numerous salary <br />rate ranges, each comprised of five (5) steps or rates of pay. <br />The respective rate ranges are identified by a three (3) digit number. The steps within <br />each range are identified by the letters "A" through "E" inclusive, with the "A" step being <br />the lowest step in the range. The purpose of each step and the length of service required <br />for advancement to the next higher step within a particular salary rate range is <br />summarized as follows: <br />Step A <br />Normal beginning pay rate <br />Step B <br />Automatic Increase — After 6 months' service in next lower step. <br />Also optional hiring rate <br />Step C <br />Automatic Increase — After 12 months' service in next lower step. <br />Also maximum hiring rate <br />Step D <br />Automatic Increase — After 12 months' service in next lower step. <br />Step E <br />Merit Rate —After 12 months' service in next lower step. <br />Specific regulations governing advancement within salary rate ranges are set forth in <br />Section 4.8 of this MOU. The assignment of classes to salary rate ranges is listed in the <br />City's salary schedule and class and compensation plan as periodically amended. <br />During the term of this MOU, it is the City's intent to eliminate the salary matrix and <br />create a salary schedule. The parties acknowledge and agree that elimination of the <br />salary matrix and implementation of the salary schedule is a meet and confer issue. Once <br />the City is ready to move forward with elimination of the salary matrix and creation of <br />the salary schedule, it will provide its proposal to the Association and the parties will <br />promptly meet and confer and no change will be made until the negotiations process has <br />been completed. The parties acknowledge that such a change will require modification to <br />language in several provisions of this MOU. <br />4.3 Salary Adjustments. <br />Although there are some retroactive compensation adjustments included in this 2018- <br />2021 MOU, all compensation adjustments provided for in this MOU shall apply only to <br />those employees who are employed on the day in which the City Council approves this <br />MOU. This applies to compensation adjustments in any Article of this MOU. <br />Effective in the pay period, which includes July 1, 2018, the base salary of employees <br />