San Francisco Chamber of Commerce v. City & County of San Francisco

275 Cal. App. 2d 499, 79 Cal. Rptr. 915, 1969 Cal. App. LEXIS 1941
CourtCalifornia Court of Appeal
DecidedAugust 8, 1969
DocketCiv. No. 27031
StatusPublished
Cited by1 cases

This text of 275 Cal. App. 2d 499 (San Francisco Chamber of Commerce v. City & County of San Francisco) 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.

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San Francisco Chamber of Commerce v. City & County of San Francisco, 275 Cal. App. 2d 499, 79 Cal. Rptr. 915, 1969 Cal. App. LEXIS 1941 (Cal. Ct. App. 1969).

Opinion

DEVINE, P. J.

Appellants are taxpayers in the City and County of San Francisco. They sought injunction, writ of mandate and declaratory judgment, in the superior court, the essence of their combined actions and special proceeding being a challenge to the validity of a certain salary ordinance. The ordinance fixes the salaries for the 1969-1970 fiscal year of “miscellaneous” employees; that is, all or nearly all except policemen, firemen, craft employees and streetcar and bus operators. The court denied the application for temporary injunction and for writ of mandate and declared the ordinance to be valid. Appeal followed.

Section 151 of the San Francisco Charter (Stats. 1950, ch. 4, pp. 46-49) provides that the board of supervisors shall have the power and the duty to fix salaries by ordinance and that compensations shall be in accord with the generally prevailing rates of wages for like service and working conditions in private employment or in other comparable governmental organizations in this state. The charter provides that the Civil Service Commission (hereinafter “Commission”) shall recommend schedules of compensation to the board of supervisors, solely on the basis of facts and data obtained in a comprehensive investigation and survey of wages in private employment and other governmental agencies.

The board of supervisors may approve, amend or reject the schedule of compensations proposed by the Commission, but in [501]*501case of amendment, only after giving the Commission the data considered as warranting the amendment, and receiving a report back from the Commission.

When the schedule for the fiscal year 1969-1970 was received, on January 31, 1969, the board of supervisors, through its Legislative and Personnel Committee, held extensive hearings. The Commission’s schedules would have brought about an increase of 7½ percent or more for some employees, 5 percent for others, 2½ percent for others, and no increase at all for some. The board having transmitted data obtained by it (other than that supplied by the Commission) to the Commission, amended the proposed schedule by enacting the ordinance with a 5 percent across-the-board increase from the 1968-1969 rates. The ordinance as enacted reduced the total amount which would have been required from the taxpayers had the Civil Service Commission’s schedule been adopted by $1,705,618.

The ordinance was passed unanimously by the board of supervisors and was signed by the mayor on March 15, 1969. An earnest, if not fervent, entreaty to the board to adopt the ordinance was made by its Legislative and Personnel Committee, which reported its exhaustive study of the data submitted by the Civil Service Commission, its realization that some inconsistencies may occur, and its conviction that its recommendations represent the best possible solution of an admittedly complex problem. The committee reported that it had reviewed the schedule, class by class. It had taken cognizance of increase in the cost of living.

On May 12, 1969, the present lawsuit was filed. Judgment by the superior court was made on June 9,1969. We advanced the case for hearing on appeal because the new salaries were to become effective July 1,1969.

The main point made by appellants is this: the salary ordinance is invalid in part because it sets rates which are so palpably unreasonable and arbitrary as to indicate an abuse of discretion as a matter of law. This is an allegation contained in the pleading, and it is a necessary one, because it was held in City & County of San Francisco v. Boyd, 22 Cal.2d 685, 690 [140 P.2d 666], that the courts will not interfere with the rate-making authority in the matter of setting salaries at prevailing rates unless the abuse is as great as that described in the allegation (or unless there is fraud, which is not alleged in the present case).

[502]*502The trial judge expressly found that not any of the rates is so palpably unreasonable and arbitrary as to indicate abuse of discretion.

Appellants do not plead what the prevailing wages are for any classification except by making reference to "what the Civil Service Commission found; nor did appellants desire to present any evidence (this appears by stipulation to an amendment to the judgment) as to prevailing rates other than the Commission’s schedule.

Appellants rely on the schedule of the Civil Service Commission as showing that before the 5 percent raise, there were 66 classifications of employees who were receiving pay from 10 percent to 36 percent higher than prevailing rates in private employment or other governmental agencies in the state; that these classifications comprise 3,458 employees or about 23.8 percent of those covered by the ordinance. Under the ordinance, appellants say, these employees will receive from 15 percent to 41 percent over prevailing rates. In addition, about 130 other classifications received from 1 percent to 9 percent higher than prevailing rates; there are 2,333 employees here, or 16 percent of the total. Under the ordinance they will receive from 6 percent to 14 percent above prevailing wages. Besides, some employees for whose places there is no data for comparison are geared to the ones mentioned herein, so that they, too, will receive excessive wages, say appellants.

Although the charter requires that the Commission shall recommend schedules of compensation solely on the basis of its survey of wages, it does not purport to bind the supervisors to ratify the schedule proposed by the Commission by enacting it into ordinance. Legislative discretion is contemplated. (Collins v. City & County of San Francisco, 112 Cal. App.2d 719 [247 P.2d 362].)

At the outset of appellate review, we find ourselves without precedent to work with. Counsel tell us that no ease is known (even in the nation) in which taxpayers have succeeded in preventing payment of municipal employees’ salaries on the ground that they exceeded prevailing wages. Nor, indeed, have we been cited any cases in which municipal employees have been successful in challenging the discretionary acts of the legislative body. The employees did succeed in Walker v. County of Los Angeles, 55 Cal.2d 626 [12 Cal.Rptr. 671, 361 P.2d 247], in compelling the county to follow charter requirements in ascertaining prevailing wages [503]*503instead of simply continuing the previous year’s wage scale; and in Sanders v. City of Los Angeles, 252 Cal.App.2d 488 [60 Cal.Rptr. 539], in effecting a correction when the chief administrative officer had given a deceptive report to a committee of the city council. But these cases did not have to do with the legislative discretion itself.

We do find several cases in which the courts have expressed the principle that the determining of prevailing wage rates is primarily for the legislative branch; Collins v. City & County of San Francisco, 112 Cal.App.2d 719, 730 [247 P.2d 362] ; City & County of San Francisco v. Boyd, 22 Cal.2d 685, 689 [140 P.2d 666] ; Carrier v.

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275 Cal. App. 2d 499, 79 Cal. Rptr. 915, 1969 Cal. App. LEXIS 1941, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-francisco-chamber-of-commerce-v-city-county-of-san-francisco-calctapp-1969.