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States, or who his not resided.in the City of Santa Ana foe at least OhO year next preceding the date of such examination. The residential re- quirement may be waived by the City Manager, upon approval of the Personnel Board as to particular examinations, whenever be believes such waiver is in the public interest, but in each instance he must declare ~n the proceedings the reasons therefor. In all examinations for entrance into the Competitive Service of the City, veterans who attain a passing grade shall be allowed an additional preferential credit of five percent, and disabled veterans obtaining i passing grade shill be allowed a preferential credit of ten percent, of the maximum possible grade for such examinstlon. The term "veteran" means a person who has served on active duty in the armed forces of the United States in time of war or errand intervention (and prior to tho cessation of hostilities, as declared by the President or the Congress of the United States) for a period of at least ninety days and has received an honorable discharge or release from active duty. Section 1006. PROMOTIONS. Vacancies in positions of the higher classes in the Competitive Service of the City shall, es far as practicable, be filled by promotion of employees occupying positions of lower classes having duties and responsibilities which can reasonably be considered as affording training and experience for the performance of the duties of the higher class; provided that the City Manager, with the approval of the Personnel Board, may hold examinations for positions of such higher classes on tho basis of open competitive examinations or both open end promotional competitive examinations in the manner-to be provided in the civil service rules and regulations. Eligibility for promotional examination shall be subject to civil service rules and regulations. in promotional examinations where all appficants are empIoyeec of the City, civil service rules end regulations may provide for additional preferentlsl credit based upon years of service to the City, such prefer- ential credit not to exceed five percent of the maximum possible grade for such examination. Section 1007. ELIGIBLE LISTS, CERTIFICATION, AND APPOINT- MinT. Upon completion of any examination, the City Manager shill cause to be prepared and shill approve an eligible list with the persons who passed such examination being listed in relative order of the points they received, from highest to lowest. Such eligible list shall remain in effect for two calendar years unless within such period, the City Man- ager, or such person under the City Manager having charge of personnel administration, shall not be able to certify for appointment the number of persons required under the provisions of this Section. Upon receipt of notice of a vacancy in the Competitive Service, the City Manager or such person under the City Manager having charge of personnel administration shall certify to the appointing power the names of the three highest candidates on the eligible list for such pos - elna. The appointing power may appoint, of the three thus certified, whichever one in his opinion is bost qualified for such position. No can-