Fry v. City of Los Angeles

245 Cal. App. 4th 539, 16 Cal. Daily Op. Serv. 2554, 199 Cal. Rptr. 3d 694, 2016 Cal. App. LEXIS 175
CourtCalifornia Court of Appeal
DecidedMarch 7, 2016
DocketB259791
StatusPublished
Cited by16 cases

This text of 245 Cal. App. 4th 539 (Fry v. City of Los Angeles) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fry v. City of Los Angeles, 245 Cal. App. 4th 539, 16 Cal. Daily Op. Serv. 2554, 199 Cal. Rptr. 3d 694, 2016 Cal. App. LEXIS 175 (Cal. Ct. App. 2016).

Opinion

Opinion

CHANEY, Acting P. J.

SUMMARY

Appellant City of Los Angeles (City) appeals from the trial court’s issuance of a writ of mandate authorizing the Board of Fire and Police Pension Commissioners of the Los Angeles Fire and Police Pensions (Board) 1 to exercise its discretion, previously delegated to it by the City in an ordinance, to set the maximum subsidy contributed by the City to police and firefighter retirees’ insurance premiums without regard to later City ordinances “freezing” the subsidy until review and increase by the City Council and requiring payment of a voluntary contribution to join an opt-in program.

We previously stayed the trial court’s writ of mandate and all proceedings below, pending this appeal. (Fry v. City of Los Angeles (Nov. 12, 2014, B259814).)

We now reverse.

FACTUAL BACKGROUND

I. 1974 Charter Amendment Authorizing Creation of Subsidy Program

In 1974, Los Angeles voters amended the City Charter to “enable the City Council of the City of Los Angeles to provide by ordinance a program . . . whereby” retired City police officers and firefighters “may become eligible to *544 have subsidy payments made on their behalf for health insurance ... or health care plan coverage” “as determined by the City Council and subject to such conditions of entitlement as may be set forth in any ordinance adopted in accordance with the provisions of this section.” (L.A. City Charter, art. XVIII, former §§ 189(a), 190.50(a).) The 1974 charter amendment limited the máximum amount of the subsidy the council could authorize, stating in former sections 189(c) and 190.50(c) that “[a]n ordinance adopted pursuant to this section may not provide for a subsidy ... the total amount of which . . . would be in excess of’ either the maximum available subsidy for retired civilian employees or the subsidy allowed to active police officers and firefighters. (L.A. City Charter, art. XVIII, former §§ 189(c), 190.50(c).)

The 1974 charter amendment also provided that the Board would administer “[a]ny subsidy program adopted by ordinance pursuant to this section” and “in its discretion, may by resolution increase or decrease the amount of subsidy payments on the following conditions only: (1) to reflect changes in subsidies provided to active members or (2) to offset any increases or decreases in the level of benefits referred to [earlier in section] ... or the cost thereof as a result of changes in existing benefits . . . .” (L.A. City Charter, art. XVIII, former §§ 189(c), 190.50(c).)

II. Original Ordinance

In 1975, the City Council passed ordinance No. 147,014 (Original Ordinance) to implement the authorized subsidy program in 1975. The Original Ordinance established that, subject to the 1974 charter amendments limitations and provisions, “the maximum monthly subsidy [for police and fire retirees] shall be the amount provided by the Council for [civilian retirees].” The Original Ordinance also provided that the Board responsible for administering the program may, in its discretion, “increase or decrease the maximum monthly amount of the health insurance subsidy in accordance with the authority conferred” in the 1974 charter amendments provisions.

III. Charter Amendment Removing Limitations on Council’s Authority to Establish Subsidy

In 2005, City voters amended the charter sections governing the subsidy program for retired police and firefighters to eliminate the limits on the council’s authority to establish the maximum subsidy. Specifically, the 2005 charter amendment repealed former sections 189(c) and 190.50(c), which capped the maximum subsidy the council could establish to either the amount of subsidy received by active police officers and firefighters or the maximum available subsidy for retired civilian retirees. It replaced those provisions with: “The Council may establish by ordinance the maximum subsidy payments for *545 beneficiaries under any programs established by the Council . . . .” (L.A. City Charter, art. XI, §§ 1330(c), 1428(c), 1518(c), 1618(c).) 2

The 2005 charter amendment also deleted the provision from the 1974 charter amendments allowing the Board to increase or decrease the subsidy, in its discretion, only under the conditions specified in the 1974 charter amendments. Instead, the amendment replaced that provision with: “The Council may by ordinance authorize the Board to increase or decrease subsidy payments pursuant to factors, standards, and limitations prescribed in the ordinance.” (L.A. City Charter, art. XI, §§ 1330(e), 1428(e), 1518(e), 1618(e).)

IV. 2005 Fixed Subsidy Amount Ordinance

Pursuant to the authority granted in the 2005 charter amendment, the City Council passed ordinance No. 176731 (Subsidy Ordinance), establishing “the maximum monthly subsidy towards the health insurance premium, effective July 1, 2005 ... is fixed at $735.38 per month.”

V. Delegation Ordinance

A year later, in 2006, the council passed Ordinance No. 177630 (Delegation Ordinance), amending subdivision (e) of section 4.1154 of the Los Angeles Administrative Code. In the Delegation Ordinance, the City Council noted that the rluximum monthly subsidy, effective July 1, 2005, “is fixed at $735.38,” and authorized the Board “to make discretionary changes, on an annual basis beginning in 2006, to the maximum monthly subsidy,” so long as no increase exceeded the lesser of a 7 percent increase or the actuarial assumed rate for medical inflation. The Delegation Ordinance also stated if the Board’s changes exceed this limitation, it must be submitted to the council for review accompanied by an actuarial report; if the council rejected a subsidy set by the Board, “the Council shall determine the amount, if any, by which the subsidy shall be increased and shall adopt this increase by resolution”; and if the Board fails to act timely to grant an increase or if the council desires to approve an increase in excess of the amount authorized by the Board, the council retains the right to establish by ordinance the maximum subsidy.

VI. 2006 to 2011 Board Subsidy Increases

From 2006 to 2011, the Board, exercising the delegation of authority granted to it “to increase or decrease the maximum monthly amount of the *546 health insurance subsidy,” increased the subsidy each year. 3 On March 3, 2011, the Board voted to increase the monthly subsidy to $1,097.41 effective July 1, 2011.

VII. 2011 Freeze Ordinance

On July 25, 2011, the council passed ordinance No. 181814 (Freeze Ordinance), adding a new section 4.1166 to the Los Angeles Administrative Code, which froze the maximum subsidy at “the rate in effect as of July 1, 2011.” (L.A. Admin. Code, § 4.1166, subd.

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Cite This Page — Counsel Stack

Bluebook (online)
245 Cal. App. 4th 539, 16 Cal. Daily Op. Serv. 2554, 199 Cal. Rptr. 3d 694, 2016 Cal. App. LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fry-v-city-of-los-angeles-calctapp-2016.