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4. Effective July 1, 2020, classifications covered by this MOU shall receive a base salary increase of eight (8) salary rate ranges (approximately 4%). 5. Effective July 1, 2020, the City agrees, after implementation of the 4% base salary increase effective July 1, 2020 (as noted as #3 of this section) to maintain ten (10) salary rate ranges (approximately 5%) between the classes of Top Step Sergeant including all pay additives available to this classification and Police Commander "D" Step including Supervisory Post Additive (minimum 5%) and Bilingual Pay Additive. 6. The City and Association agree that upon the expiration of this MOU and during the period of good faith negotiations for a subsequent contract, salary and benefits shall continue at the then current rate. Although there are some retroactive compensation adjustments included in this 2018-2021 MOU, all compensation adjustments provided for in this MOU shall apply only to those employees who are employed on the day in which the City Council approves this MOU. This applies to compensation adjustments in any Article of this MOU. B. The parties agree that the City may, at its sole discretion, alter its payroll practices to eliminate the salary and wage step increases system as set forth in its current payroll matrix, as outlined in the City's salary schedule, as periodically updated and published by the City, and replace them with an equivalent percentage system. For example, a five (5) salary rate range increase would not be computed as set forth on the current matrix, but would instead be exactly 2.5%, rounded up to or down to the nearest penny. This system would apply to all salary increases as set forth in this MOU, including Article fV ("Salaries"), Article V ("Assignment and Other Special Pay Additives") and the rate ranges assigned to the classifications represented by this bargaining unit. There shall be no negative consequences to any represented employee by such conversion. C. The City agrees, during the terns of this MOU, to maintain thirty-four (34) salary rate ranges (17%) between the classes of Deputy Chief of Police and Police Commander. 4.4 Application of Basic Compensation Plan. All employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, as set forth in the City's salary schedule, as periodically updated and published by the City. 4.5 Beginning Rates. An employee appointed to one of the designated sworn (CalPERS "Safety") classifications of employment listed in this MOU maybe placed by the appointing authority at Step "A," Step `B," Step "C", or Step "D" within the applicable rate range in the #11140v2 55F-15