City of Annapolis v. Bowen

920 A.2d 54, 173 Md. App. 522, 2007 Md. App. LEXIS 45
CourtCourt of Special Appeals of Maryland
DecidedMarch 30, 2007
Docket2462, September Term, 2005
StatusPublished
Cited by4 cases

This text of 920 A.2d 54 (City of Annapolis v. Bowen) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Annapolis v. Bowen, 920 A.2d 54, 173 Md. App. 522, 2007 Md. App. LEXIS 45 (Md. Ct. App. 2007).

Opinion

KRAUSER, J.

Sixty-two retired firefighters and police officers claim that, when their former employer, the City of Annapolis (“City”), reclassified the positions of their active-duty counterparts so that they would ultimately receive more compensation for the positions they currently held, it was required, under Annapolis City Code § 3.36.150A1 (“ACC”), to increase their pension payments in tandem. Because it did not, they filed a com *527 plaint, in the Circuit Court for Anne Arundel County, for declaratory and injunctive relief. But that action was dismissed without prejudice by the circuit court for failure to exhaust administrative remedies.

Each claimant then filed a separate claim with the City’s Director of Human Resources. When the Director denied their claims, they appealed to the City’s Civil Service Board, which dismissed, for procedural reasons, 61 of the 62 claims, leaving only the claim of appellee Edgar A. Bowen, Jr. for consideration.

When the Board denied that claim as well, appellee Bowen, together with those whose claims had been previously dismissed, filed a second complaint in the circuit court, requesting the same relief as before. Ultimately, the circuit court reviewed and reversed the decision of the Board, prompting the City to note this appeal. Because we agree with the decision reached by the Civil Service Board, we shall reverse the judgment of the circuit court.

BACKGROUND

To reflect the changing responsibilities of the police and fire departments, as well as other civil service departments, and to “make the City of Annapolis a more attractive option for qualified police and fire personnel,” the City sought an independent review of City job classifications, first in 1993 and then again in 2001. To perform these two separate reviews, the City hired Yarger and Associates, Inc. in 1993 and then Hendricks and Associates, Inc. in 2001. They were to review compensation levels and, if appropriate, to recommend reclassification of City jobs, including those in the police and fire departments. At that time, as it is now, the pay scale for City employees was divided into a hierarchy of grades and, within each grade, a hierarchy of steps. Both firms issued reports recommending ways to make the departments more competitive with the departments of other localities.

After the 1993 Yarger Study, the City, in 1995, adopted Resolution No. R-26-95 (“Yarger Resolution”), which moved *528 civil service employees, including employees of the police and fire departments, to higher grades on the City’s pay scale so that they would, in the City’s words, “enjoy increased future opportunities to earn merit raises.” Six years later, after the 2001 Hendricks Study was complete, the City adopted Resolution No. R-12-01 (“Hendricks Resolution”), which, as the City explained, “assigned each civil service position to a new pay grade and step within a revised pay scale.”

Before the Yarger Resolution, the salaries within each grade were about 5% higher than those in the preceding grade, and the salary for each step within a grade was about 5% higher than the preceding step. The 1993 Yarger Study recommended that the City increase its pay levels by 10%, the equivalent of a two grade increase. Although the Yarger Resolution did move all active-duty employees up two grades, it simultaneously moved them down two steps on the pay scale. Thus, the 10% increase associated with the higher-paid grades was “immediately offset,” according to the City, by a 10% decrease associated with the lower-paid steps.

The result was that, although active-duty employees did not receive pay increases on the date the resolution took effect, they were now able to receive, according to the City, “additional in-grade increases, through the merit system, by progressing through the newly-available steps within” the new grade. 1 But their progression under the new system was not automatic. The resolution stated that “in-grade increases shall proceed according to City Code Section 3.12.070____” That section states that active-duty employees could not receive an in-grade pay increase “without the favorable recommendation of [a] supervisorial authority” required by ACC § 3.12.070C1. It further states that, “[i]n no case shall an in-grade increase be awarded without regard to an employee’s performance.” ACC § 3.12.070C2. If an employee progressed *529 to the next step, he or she received about a 5% increase in pay.

Six years later, in 2001, the Hendricks Resolution assigned each “civil service and exempt service position[ ]” to a new pay grade and step within a revised pay scale. It compressed the number of pay grades from 40 to 20 and the number of steps within each grade from 11 to 10. The increments between steps in each grade increased from 5% to 5.36%, and the “upper limits on compensation” were raised. The resolution placed present employees in a new grade and step, resulting in a new salary, which was 102% of their current salary. But any further pay raise depended upon a progression to the next step in the pay grade. That would occur, if at all, on the anniversary date of their employment.

Appellees claim that, because the Yarger and Hendricks Resolutions ultimately resulted in pay raises for active-duty employees, they were also entitled to commensurate increases in their pension payments under ACC § 3.36.150A1. That section, entitled “Cost-of-living adjustment,” states that “[e]ach retired member’s pension shall be increased by the same percentage as any increase in the pay scale for members of the same rank and years of service who are on active duty.” ACC § 3.36.150A1. The City did not increase pension payments, however, because it claimed that ACC § 3.36.150A1 only applies to cost-of-living increases. Instead, it granted, under ACC § 3.36.150A1, a 2% cost-of-living adjustment in 1993, 1995, 1998, 1999, 2000, 2001, and 2002 and a 3% cost-of-living adjustment in 1994.

Convinced they had been denied what the Code promised, appellees filed a complaint in the Circuit Court for Anne Arundel County requesting “declaratory and injunctive relief and retroactive and prospective increases” in their pension payments. The City responded by filing a motion to dismiss, citing the failure of appellees to exhaust their administrative remedies. The circuit court agreed with the City and dismissed their complaint without prejudice.

*530 Each appellee then filed a separate claim with the City’s Director of Human Resources, insisting that his or her pension payments should have been increased in tandem with the wage increases received by active-duty personnel. When their claims were denied, they appealed to the City’s Civil Service Board. After a hearing, the Board dismissed 61 of the 62 appellees, declaring that it was inappropriate to hear the ease as a class action. That ruling left only the claim of appellee, Edgar A. Bowen, Jr., for consideration, and Bowen’s claim was denied by the Board after it concluded that ACC § 3.36.150A1 only applied to “cost-of-living” adjustments and that the wage increases resulting from the Yarger and Hendricks Resolutions were not related to “cost-of-living.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Green Healthcare Sol'ns v. Med. Cannabis Comm'n
Court of Special Appeals of Maryland, 2022
Gray v. Fenton
226 A.3d 395 (Court of Special Appeals of Maryland, 2020)
(2007)
92 Op. Att'y Gen. 180 (Maryland Attorney General Reports, 2007)
Bowen v. City of Annapolis
937 A.2d 242 (Court of Appeals of Maryland, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
920 A.2d 54, 173 Md. App. 522, 2007 Md. App. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-annapolis-v-bowen-mdctspecapp-2007.