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5. Performance based monetary incentive payment amounts for Association <br />personnel shall be recommended by the employee's Supervisor and requires <br />the approval of both the Police Chief and City Manager. <br />The Police Chief shall be responsible for the development and administration <br />of detailed administrative procedures and guidelines for the consistent and <br />effective application of the Association performance appraisal evaluation <br />criteria. Such procedures and guidelines shall define how performance <br />objectives, measure and standards are developed; when and how performance <br />reviews are to be carried out; how overall performance ratings will be <br />determined; and how performance based monetary incentive payment options <br />are to be exercised. <br />If it is determined by PERS that the "Bonus" is not eligible to be included as <br />PERSable compensation, the City shall convert the bonus to two (2) <br />additional merit based steps at increments of 2.5% for the last year that the <br />employee earned the Bonus. The Association understands and agrees that <br />these steps would be merit based and employees must maintain a <br />Significantly Exceeds Rating to receive or maintain the 5% or Exceeds <br />expectations rating to receive or maintain the 2.5%. Employees who do not <br />receive Significantly Exceeds rating or Exceeds Expectations rating will be <br />returned to Step 4 of the Association salary schedule. <br />4.9 Promotional Salary Advancement. When an employee is promoted to a position in a higher <br />classification from a position in a lower classification, he or she shall be reassigned to the <br />lowest step in the appropriate salary rate range for the higher classification that gives the <br />employee a minimum increase of one (1) salary step (approximately 5%) over his or her <br />current base salary step (plus any pay for performance bonus if said employee was at top <br />step in their current classification) and exclusive of any pay additive or additives such as shift <br />differential, assignment pay, special skill pay or the like. <br />4.10 Demotion. When an employee is demoted to a position in a lower classification, his or her <br />salary rate shall be fixed in the appropriate salary rate range for the lower classification in <br />accordance with the following provisions: <br />A. The salary rate shall be reduced by at least one (1) step. <br />B. The new salary rate must be within the appropriate salary rate range. <br />D. The new salary rate shall not be higher than the salary step to which the employee <br />would have been entitled had his or her service time in the higher classification been <br />spent in the lower classification. <br />11 <br />55A-21 <br />