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ARTICLE IV <br /> <br />4.0 SALARIES <br /> <br />4.1 <br /> <br />Basic Compensation Plan. There is hereby established a basic compensation plan for all <br />members of the Santa Ana Police Management Association who are now employed or will <br />in the future be employed in any of the designated classifications of employment listed in this <br />Agreement and its attachments. <br /> <br />4.2 <br /> <br />Salary Schedule. The basic salary schedule, attached hereto in a matrix form as Exhibit A, <br />is comprised of four (4) steps or rate ranges of pay for sworn (CalPERS "Safety") employees <br />and five (5) steps or rate ranges of pay for non-sworn (CalPERS "Miscellaneous") <br />employees. <br /> <br />The steps within each range are identified by the letters "A" through "D" inclusive for sworn <br />(CalPERS "Safety") classifications and "AA" through "D" inclusive for non-sworn (CalPERS <br />"Miscellaneous") classifications, with Step "A" being the lowest step for sworn (CalPERS <br />"Safety") and Step "AA" being the lowest step for non-sworn (CalPERS "Miscellaneous") <br />classifications. <br /> <br />The assignment of classes to salary rate ranges during the term of this Agreement is listed <br />in Exhibit "B", which is attached and made a part hereof as though set forth herein. <br /> <br />4.3 Salaries. <br /> <br />Effective July 1, 2003, the base salaries of employees covered by this Agreement <br />shall be increased by eight (8) salary rate ranges, which is approximately 4%. <br /> <br />The parties agree that the City may, at its sole discretion, alter its payroll practices to <br />eliminate the salary and wage step increases system as set forth in its current payroll <br />matrix, Exhibit "A" to this Agreement, and replace them with an equivalent <br />percentage system. For example, a five (5) salary rate range increase would not be <br />computed as set forth on the current matrix, but would instead be exactly 2.5%, <br />rounded up to or down to the nearest penny. This system would apply to all salary <br />increases as set forth in this Agreement, including Article IV ("Salaries"), Article V <br />("Assignment and Other Special Pay Additives") and Exhibit A. There shall be no <br />negative consequences to any represented employee by such conversion. <br /> <br />C. The City agrees, during the term of this Agreement, to the following: <br /> <br />To maintain thirty-four (34) salary rate ranges (17%) between the classes of <br />Police Captain and Police Lieutenant; and <br /> <br />6 <br /> <br /> <br />