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<br />Effective July I, 2007, the base salary of employees covered by this Agreement shall <br />be increased by the greater of the following amounts: l) that percentage increase <br />necessary, rounded to the nearest half-percent (.5%), not to exceed nine (9) salary rate <br />ranges (approximately 4.5%), consistent with that amount received by members of <br />the Santa Ana Police Officers Association; or 2) that percentage increase in an <br />across-the-board salary adjustment provided to any other City bargaining unit during <br />fiscal year 2007-08. <br /> <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 /> <br />C. The City agrees, during the term of this Agreement, to the following: <br /> <br />I. To maintain thirty-four (34) salary rate ranges (17%) between the classes of <br />Police Captain and Police Lieutenant; and <br /> <br />2. Effective July 1,2002, employees will contribute one-half percent (.5%) of <br />their base salary plus pay additives through payroll deduction to a fund <br />maintained by the City of Santa Ana for the purpose of providing retiree <br />health insurance premium reduction assistance. This payroll deduction for <br />retiree health insurance premium reduction assistance will continue until such <br />time as the parties may mutually agree to end said deduction. <br /> <br />Additionally, effective October l, 2006 and October l, 2007, respectively, the City shall <br />contribute an amount equal to one-half percent (.5%) of the bargaining unit's annual base <br />salary, including pay additives, for the purpose of providing retiree health insurance premium <br />reduction assistance. <br /> <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 /> <br />4.5 Beginning Rates. An employee appointed to one of the designated sworn (CaIPERS <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 the <br />schedule to which the class has been allocated by Resolution of the City, provided that such <br /> <br />7 <br />