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employee has been previously paid, effective the first day of the month following the date of completion of the length of service for such advancement as provided in Exhibit B of this Agreement. B. Merit Advance. An officer or 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 4.2 and Exhibit A of this Agreement. The effective date of such merit increase, if granted, shall be on the first 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 officer or employee in the effective performance of the duties of his or her position. Such merit advancement shall require the following: There shall be on file in the office of the chief personnel officer a copy of each periodic efficiency or performance report required to be made on the officer or employee by the Santa Ana Municipal Code and/or the City Manager during the period of service time of such officer or employee subsequent to this last salary advancement. 2. The Police Chief, at least twenty (20) calendar days prior to the anticipated completion of such officer's or employee's required length of service, shall file with the City Manager a statement recommending the granting or denial for the merit increase and supporting such recommendations with specific reasons therefore. 3. No advancement in salary above Step "D" shall become effective until approved by the City Manager, except when placement on a salary step above Step "D" results from promotion under the provisions of Section 4.9 of this Article. C. Length of Service Required When Advancement Denied, When an officer or employee has not been approved for advancement to the merit step E, he or she may be reconsidered for such advancement after the completion of three (3) months of additional service and shall be reconsidered for such advancement after the completion of six (6) months of additional service. This reconsideration shall follow the same steps and shall be subject to the same actions as provided in Subparagraphs B (2) and B (3) of this Section. 4.8 Reduction in Salary Steps. Any officer or employee who is being paid on merit step E may be reduced to Step "D" of the appropriate salary range, upon the recommendation of the Police Chief, and the approval of the City Manager. Procedure for such reduction shall follow the same procedure as outlined for merit advancements in Section 4.7 above, and such officer or employee may be considered for re- advancement under the same provisions as contained in Subsection C of Section 4.7. 12 25B -14