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the lowest step in the range. The purpose of each step and the length of service required <br />for advancement to the next higher step within a particular salary rate range is <br />summarized as follows: <br />Step A Normal beginning pay rate <br />Step B Automatic Increase — After 6 months' service in next lower step. <br />Also optional hiring rate <br />Step C Automatic Increase — After 12 months' service in next lower step. <br />Also maximum hiring rate <br />Step D Automatic Increase — After 12 months' service in next lower step. <br />Step E Merit Rate — After 12 months' service in next lower step. <br />Specific regulations governing advancement within salary rate ranges are set forth in <br />Section 4.7 of this MOU. The assigmnent of classes to salary rate ranges is listed in <br />Exhibit `B ", which is attached and made a part hereof as though set forth herein. <br />4.3 Salary Adjustments. <br />A. The base salaries of Sworn employees covered by this MOU shall be adjusted as <br />follows: <br />Effective July 1, 2015, the base salary of employees covered by this MOU shall <br />be increased by five (5) salary rate ranges (approximately 2.5 %). <br />Effective July 1, 2016, the base salary of employees covered by this MOU shall <br />be increased by five (5) salary rate ranges (approximately 2.5 %). <br />B. The City and the Association agree to form a working group for the purpose of <br />determining the parameters needed to conduct a salary survey for the bargaining <br />trait. Thereafter, a salary study will be conducted by an independent consultant. <br />If warranted by the study, the City and the Association agree to meet and confer <br />regarding a salary increase in excess of 2.5% effective July 1, 2016. <br />C. During the term of this MOU, should any other fall -time employee bargaining <br />unit of the City receive any base salary rate increase (not associated with another <br />benefit or the retiree health savings plan) that exceeds those set forth in <br />Subsection "A" above, all employees covered by this MOU shall receive the same <br />base salary increase or equivalent retroactive to the date such increase went into <br />effect for the other bargaining unit. <br />D. All employees will contribute one percent (1 %) of their base salary plus pay <br />additives through payroll deduction to a fund maintained by the Santa Ana Police <br />Officers Association for the purpose of providing retiree health insurance <br />premium reduction assistance. This payroll deduction for retiree health insurance <br />10 <br />25E -12 <br />