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B. The parties agree that the City may, at its sole discretion, alter its payroll practices to eliminate the "salary and wage step increases system as set forth in its current payroll matrix, as outlined in the City's .salary schedule, as periodically updated and published by the City, and replace them with an equivalent percentage system. For example, a five (5) salary rate range increase would not be computed as set forth on the current matrix, but would instead be exactly 2.5%, rounded up to or down to the nearest penny. This system would apply to' all salary increases as set forth in this MOU, including Article IV (" Salaries"), Article V ("Assignment and Other Special Pay Additives") and the rate ranges assigned to, the classifications represented by this bargaining' unit. There shall be no negative consequences to any represented employee_ by such conversion. C. The City agrees, during the term of this MOU, to maintain thirty-four (34) salary rate ranges (17%) between the classes of Deputy Chief of Police and Police Commander. 4.4 Application of Basic Compensation Plan. All employees working in classifications of employment covered by this MOU shall be compensated at a monthly rate, as set forth in the City's salary schedule, as periodically updated and published by the City. 4.5 Be 9g nning Rates. An employee appointed to one of the designated sworn (CalP.ERS "Safety") classifications of eniploymentlisted in this MOU maybe placed by the appointing authority at Step "A," Step "B," or Step "C" within the applicable rate range in the schedule to which the class has b"eetf allocated byResolutioin of the City, provided thafsuch employee shall be assigned such salary step upon the commencement of his or her service -in said classification and such assignment having once been made shall remain in effect until the said employee shall be entitled to advance to the next salary step, in accordance with the further provisions of the Article. An employee appointed to one of the, designated non -sworn (CalPERS "Miscellaneous") classifications of employment listed in this MOU maybe placed by the appointing authority at Step "AA;' Step "A," Step 'S," or Step "C," within the applicable salary rate range as provided above. 4.6 Service: The word "service" as used in this MOU 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 (1s`) 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 fora period of time longer than ten (10) calendar days by reason of resignation, quit, or discharge, shall serve to eliminate the accumulated length of service time of such employee for the purpose of ths.MOU and any such employee reentering the service of the City shall be considered as a new employee, 251-9