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7 <br />Lieutenant “D” Step including Supervisory Post Additive (minimum five <br />percent (5%)) and Bilingual Pay Additive. <br />5. The City and Association agree that upon the expiration of this MOU and <br />during the period of good faith negotiations for a subsequent contract, <br />salary and benefits shall continue at the then current rate. <br />B. The parties agree that the City may, at its sole discretion, alter its payroll practices <br />to eliminate the salary and wage step increases system as set forth in its current <br />payroll matrix, as outlined in the City’s salary schedule, as periodically updated <br />and published by the City, and replace them with an equivalent percentage <br />system. For example, a five (5) salary rate range increase would not be computed <br />as set forth on the current matrix, but would instead be exactly two and one half <br />percent (2.5%), rounded up to or down to the nearest penny. This system would <br />apply to all salary increases as set forth in this MOU, including Article IV <br />(“Salaries”), Article V (“Assignment and Other Special Pay Additives”) and the <br />rate ranges assigned to the classifications represented by this bargaining unit. <br />There shall be no negative consequences to any represented employee by such <br />conversion. <br />C. The City agrees, during the term of this MOU, to maintain approximately <br />seventeen percent (17%) between the classes of Police Captain and Police <br />Lieutenant. <br />4.4 Application of Basic Compensation Plan. All employees working in classifications of <br />employment covered by this MOU shall be compensated at a monthly rate, as set forth in <br />Exhibit A. <br />4.5 Beginning Rates. An employee appointed to one of the designated sworn (CalPERS <br />“Safety”) classifications of employment listed in this MOU may be placed by the <br />appointing authority at Step “A,” Step “B,” Step “C”, or Step “D” within the applicable <br />rate range in the schedule to which the class has been allocated by Resolution of the City, <br />provided that such employee shall be assigned such salary step upon the commencement <br />of their service in said classification and such assignment having once been made shall <br />remain in effect until the said employee shall be entitled to advance to the next salary step <br />in accordance with the further provisions of the Article. <br />An employee appointed to one of the designated non-sworn (CalPERS “Miscellaneous”) <br />classifications of employment listed in this MOU may be placed by the appointing <br />authority at Step “AA”, Step “A”, Step “B”, or Step “C” within the applicable salary rate <br />range as provided above. <br />4.6 Service. The word “service” as used in this MOU shall be deemed to mean continuous, <br />full-time service in the classification in which the employee is being considered for salary