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C Step - After 2080 hours in next lower step. Also optional hiring rate. D Step - After 2080 hours in next lower step. Is maximum hiring rate. E Step - Merit rate. After 3120 hours in next lower step. Specific regulations governing advancement within salary rate ranges for Part Time Civil Service employees are set forth in Section 4.8 of this Agreement. 4.3 Salaries. A. Effective July 1, 2010, the base salary of employees covered by this Agreement shall be increased by eight (8) salary rate ranges (approximately 4%). B. Effective January 1, 2011, the base salary of employees covered by this Agreement shall be increased by five (5) salary rate ranges (approximately 2.5%). C. Effective as soon as practicable following Council approval of this Agreement, Miscellaneous employees covered by this Agreement shall contribute an additional one point seven percent (1.7%) of their salary for a total of eight percent (8%) toward the employer cost of the 2.7% at 55 retirement benefit. To the extent permitted by CalPERS and Internal Revenue Service regulations, this 1.7% contribution shall be implemented through payroll deduction on a pre-tax basis. D. The assignment of classes to salary rate ranges is listed in Exhibit B and made a part hereof as though set forth herein. 4.4 Application of Basic Compensation Plan. The salary rate ranges contained in Section 4.2 and Exhibit "B" are monthly salary rate ranges. However, all employees working in classifications of employment covered by this Agreement shall be compensated at an hourly rate. The regular rate of pay shall be computed as provided for by the Fair Labor Standards Act (FLSA). Any hourly rate of pay, defined as the regular hourly rate of pay, shall be computed by dividing the monthly salary rate by 173.33. In determining the hourly rate as herein provided, computation shall be made to the nearest whole cent and a computation resulting in an even one-half cent shall fix the rate at the next higher whole cent. 4.5 Probation. The probationary period shall be the hourly equivalent of one (1) year (2080 hours) from the date of appointment from an open eligible list (new hire) or a reappointment eligible list (rehire) and the hourly equivalent of six (6) months (1040 hours) from the date of appointment from a promotional eligible list. 4.6 Be inning Rates. A new employee of the City of Santa Ana shall be paid the rate shown as Step "AA" in the salary rate range allocated to the class of employment for which he or she has been hired. In special instances where such new employee possesses unique and exceptional educational training and/or experience qualifications, the Department Head, under whom the employee will serve, may submit a written request and justification to the City Manager for authorization to place such new employee on Step "A," "B," "C," or "D" within the allocated salary rate range, provided that such employee 25A-7