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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 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 />C. The City agrees, during the term of this Agreement, to maintain thirty -four (34) <br />salary rate ranges (17 %) between the classes of Police Captain and Police Lieutenant. <br />4.4 Application of Basic Compensation Plan. All employees working in classifications of <br />employment covered by this Agreement shall be compensated at a monthly rate, as set forth <br />in Exhibit `B ". <br />4.5 Beginning Rates. An employee appointed to one of the designated sworn (CalPERS <br />"Safety ") classifications of employment listed in this Agreement may be placed by the <br />appointing authority at Step "A," Step `B," or Step "C" within the applicable rate range in <br />the schedule to which the class has been allocated by Resolution of the City, provided that <br />such employee shall be assigned such salary step upon the commencement of his or her <br />service in said classification and such assignment having once been made shall remain in <br />effect until the said employee shall be entitled to advance to the next salary step in <br />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 Agreement 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 Agreement shall be deemed to mean continuous, <br />full -time service in the classification in which the employee is being considered for salary <br />advancement, service in a higher classification or service in a classification allocated to the <br />same salary rate range and having generally similar duties and requirements. Employees <br />hired after the first (1st) working day of the month shall not be credited with "time in <br />service" for that month when determining the length of service required for salary step <br />advancement. A lapse of service by an employee for a period of time longer than ten (10) <br />calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the <br />accumulated length of service time of such employee for the purpose of this Agreement and <br />any such employee reentering the service of the City shall be considered as a new employee, <br />7 <br />