Schroeder v. City of Clintonville

280 N.W.2d 166, 90 Wis. 2d 457, 1979 Wisc. LEXIS 2099
CourtWisconsin Supreme Court
DecidedJune 29, 1979
Docket76-446
StatusPublished
Cited by9 cases

This text of 280 N.W.2d 166 (Schroeder v. City of Clintonville) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schroeder v. City of Clintonville, 280 N.W.2d 166, 90 Wis. 2d 457, 1979 Wisc. LEXIS 2099 (Wis. 1979).

Opinion

CONNOR T. HANSEN, J.

The City of Clintonville, a fourth-class city, owns the Clintonville Water and Electric Utility (CWE). Pursuant to the provisions of sec. 66.068, Stats., the Clintonville common council created a five-man commission to manage the utility.

The case presents a question of statutory construction and the facts are not in serious dispute. The plaintiffs contend that the statutes vest sole authority in the commission to set wages for employees of the utility. The city takes the position that the commission merely recommends the amount of the wages of the utility employees and that the amounts so recommended are subject to final determination by the common council.

In December, 1974, the commission took action to raise the wages of CWE employees by 10 percent, effective January 1, 1975. This increase was put into effect without submitting it to the personnel committee of the *459 city or the city council for approval. This wáge increase came to the attention of the common council in April, 1975, at which time the council voted to rescind the 10 percent wage increase established by the commission and grant a six percent wage increase, as had been granted to other city employees. Adjustments were made in the utility employees’ pay checks to accommodate this four percent variance and the utility employees accepted their pay checks under protest.

The employees filed a claim against the city for the additional four percent wage increase. The claim was denied and this action was commenced. The case was submitted to the trial court on a statement of facts.

In addition to the facts stated above, as exhibits the city submitted numerous excerpts from common council minutes dating back to 1966, which referred to votes by the common council either accepting the personnel committee’s or utility commission’s recommendation for a wage increase or referring an increase request to the personnel committee for a recommendation. The exhibits also include minutes of the personnel committee, a fact-finding committee formed by the common council to deal with employee financial matters, which contain recommendations that the council approve utility commission recommendations. .In addition, the city submitted two 1968 letters from the commission to the mayor. In one letter the commission requested a wage increase “upon the approval of its superiors.” The other letter requested approval of overtime payments. The following portions of the Clintonville City Code were also submitted to the trial court:

“8.08 APPOINTMENT OF MANAGER, COMPENSATION, AND BOND. The Board of Commissioners shall have power to appoint a manager or superintendent and fix his compensation, all subject to the confirmation, control and supervision of the Common Coun *460 cil. The manager or superintendent shall file an official bond in the sum of Two Thousand Dollars ($2,000.00).
“8.1() ' POWERS AND DUTIES OF THE COMMISSION. The Commission shall have the entire charge and management of the public utility and shall supervise the operation thereof under the general control and supervision of the Common Council.”

The city appeals from the judgment of the trial court awarding the plaintiffs-employees damages representing the amount of the additional four percent wage increase. The amount of the damages awarded is not at issue on this appeal.

The issue is whether the Clintonville Water and Light Commission has the authority to fix the compensation of the employees of the utility.

Sec. 66.068, Stats., provides that municipally-owned public utilities may be managed by a commission or, in lieu thereof, the board of public works. The pertinent sections of the statute are:

“. . . (1) In cities owning a public utility, the council shall and in towns and villages owning a public utility the board may provide for a nonpartisan management thereof, and create for each or all such utilities, a board of 3 or 5 or 7 commissioners, to take entire charge and management of such utility, to appoint a manager and fix his compensation, and to supervise the operation of the utility under the general control and supervision of the board or council.
“(3) The commissioners shall choose from among their number a president and a secretary. They may command the services of the city engineer and may employ and fix the compensation of such subordinates as shall be necessary. They may make rules for their own proceedings and for the government of their department. They shall keep books of account, in the manner and form prescribed by the transportation commission or public service commission, which shall be open to the public.” (Emphasis added.)
*461 “(7) In cities of the second, third or fourth class the council may provide for the operation of a public utility or utilities by the board of public works or by another officer or officers, in lieu of the commission above provided for.”

And sec. 62.14(1), provides, in part:

“. . . Board of public works. (1) How constituted, terms .... The council, by a two-thirds vote, may determine that the board of public works shall consist of other public officers or persons and provide for the election or appointment of the members thereof, or it may, by a like vote, dispense with such board, in which case its duties and powers shall be exercised by the council or a committee thereof, or by such officer, officers or boards as the council designates. The words ‘board of public works’ wherever used in this subchap-ter shall include such officer, officers, or boards as shall be designated to discharge its duties.”

These statutes, in some instances, recognize distinctions between the various classes of cities, towns and villages. While it could be argued that these statutory provisions are similarly applicable to all cities, towns and villages, neyertheless, since Clintonville is a city of the fourth-class, we are here only concerned with management of a municipally-owned public utility by a city of the fourth-class.

In support of its position, the city advances three principal arguments. First it argues that sec. 62.11(5), Stats., which sets forth the general powers of the common council, includes the authority to set wages for all municipal employees, including those of the utility. Secondly, the city contends that language included in sec. 66.068(1) which grants the commission the authority “to supervise the operation of the utility under the general control and supervision of the board or council” must be interpreted to mean that the council retains or is granted final authority to fix the wages of utility employees. To arrive at this conclusion it would inter *462 pret the provisions of sec. 66.068(3) which provide that the commission “may employ and fix the compensation of such subordinates as shall be necessary” to mean that the commission can do so only if the common council so authorizes the commission to do so. Finally, the city argues that regardless of the statutes, it retained control over the wages of utility employees by the adoption of secs.

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Bluebook (online)
280 N.W.2d 166, 90 Wis. 2d 457, 1979 Wisc. LEXIS 2099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schroeder-v-city-of-clintonville-wis-1979.