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5.7 Service. The word "service" as used in this Agreement shall be deemed to mean continuous, full-time service in the classification in which the employee is being considered for salary advancement, service in a higher classification or service in a classification allocated to the same salary rate range and having generally similar duties and requirements. Employees hired after the first (1 st) working day of the month shall not be credited with "time in service" for that month when determining the length of service required for salary step advancement. A lapse of service by an employee for a period of time longer than thirty (30) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purposes of this Agreement, and such employee reentering the service of the City shall be considered as a new employee, except when he or she is being or will be reappointed as provided in the Santa Ana Municipal Code (SAMC), Section 9-1 14 within one (1) year and placed in the same salary step in the appropriate salary rate as he or she was at the time of termination of employment. "Resignation, quit, or discharge" for purposes of this section shall mean separating from full-time City employment altogether, not leaving one position to accept appointment to another position in an unrelated classification outside the career ladder. 5.8 Advancement within Ranges. A. Length of Service Advancements. After the salary of an employee has been first established and fixed under this plan, such employee shall be advanced from Step "AA" to Step "A," from Step "A" to Step "B," from Step "B" to Step "C," or from Step "C" to Step "D," whichever is the next higher step to that on which the employee has been previously paid, effective the first day of the month following the date of completion of the length of service required for such advancement as provided in Section 5.2 and Exhibit A hereof. B. Merit Advances. An employee shall be considered for advancement from Step "D" to Step "E" upon the completion of the required length of service as provided in Section 5.2 and Exhibit A hereof; the effective date of such merit increase, if granted, shall be on the first (1 st) day of the month following the completion of such required length of service. Advancement to Step "E" may be granted only for continued meritorious and efficient service and continued improvement by the employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: 1. There shall be on file in the office of the Executive Director of Personnel Services a copy of each periodic performance appraisal report required to be made on the employee by the CONFIDENTIAL ASSOCIATION OF SANTA ANA (CASA) 1Page 14