From Casetext: Smarter Legal Research

Keeling v. Grand Junction

Colorado Court of Appeals
Apr 26, 1984
689 P.2d 679 (Colo. App. 1984)

Summary

holding that "[o]ne who contracts with a municipality is charged with knowledge of its limitations and restrictions in making contracts"

Summary of this case from Schulz v. City of Longmont, Colorado

Opinion

No. 83CA0698

Decided April 26, 1984. Rehearing Denied June 7, 1984. Certiorari Denied Johnson September 24, 1984. Certiorari Denied Keeling September 24, 1984.

Appeal from the District Court of Mesa County Honorable James J. Carter, Judge

Gerald B. Feather, P.C., Gerald B. Feather, for plaintiffs-appellees.

Gerald J. Ashby, for defendant-appellant and cross-appellee.

Stephen K. Erkenbrack, for plaintiffs-appellees, cross-appellants.

Division II.


This is a consolidated action brought by members of the City of Grand Junction Police and Fire Departments (plaintiffs) for a determination of their status, rights, and obligations under an educational incentive pay program (the program). The City of Grand Junction, a home rule city, (City) appeals from the trial court's adverse determination, posing the following question for review: May a city council terminate an educational incentive pay program and phase out incremental payments earned thereunder in its adoption of a new pay plan for city employees?

The trial court determined that although the City could terminate the program, it had to continue paying educational incentive pay to each individual who had earned the same as long as he remained employed by the city. That determination was incorrect and we therefore reverse.

In 1969, the City initiated an educational incentive pay program for members of the police department which provided for 5% increases in base pay, to a maximum of 15%, when a participant earned a specified number of college credits and accumulated a specified number of years of law enforcement experience. The program was later extended to members of the fire department. After its inception, the program was modified in several respects without objection by members of the police or fire departments.

In 1979, the City adopted a new pay plan for city employees to become effective January 1, 1980. This plan terminated the program and provided that pay increments earned thereunder would be phased out by reducing future pay raises of those who had earned educational incentive pay increases by 5% during each of the succeeding three years. By so doing, the new plan equalized the salaries of all police officers and firemen having similar rank and time in grade within each department without regard to individual educational levels.

A city council, in the exercise of its legislative power, cannot enter into a contract which will bind succeeding city councils and thereby deprive them of the unrestricted exercise of their legislative power. City of Denver v. Hubbard, 17 Colo. App. 346, 68 P. 993 (1902). Among the legislative powers of a city council is the fixing of salaries of city employees. Denver Police Protective Ass'n v. City County of Denver, 665 P.2d 150 (Colo.App. 1983). Therefore, the Grand Junction City Council, being vested with all the legislative power of the City, Grand Junction City Charter 42, had the power to adopt a new pay plan setting forth rates of pay for all city employees and terminating the prior program.

Plaintiffs contend, however, that they are entitled to continuing payment of increments earned during the time the program was in effect upon the basis of an alleged contractual obligation or upon the doctrine of promissory estoppel. We disagree.

One who contracts with a municipality is charged with knowledge of its limitations and restrictions in making contracts. Colorado Investment Services, Inc. v. City of Westminster, 636 P.2d 1316 (Colo.App. 1981). The existing law at the time and place of the making of the contract, including the city charter, becomes a part of the contract. Colorado Investment Services, Inc. v. City of Westminster, supra.

Charged with knowledge that succeeding city councils are not bound by the legislative acts of their predecessors in setting salaries for city employees, plaintiffs cannot prevail on the basis of contract. Because the fixing of salaries is subject to change and the receipt of a salary is contingent upon continued employment with the City, plaintiffs do not have a vested contractual right in the continuance of a particular rate or method of compensation. Chicago Patrolmen's Ass'n v. City of Chicago, 56 Ill.2d 503, 309 N.E.2d 3 (1974); Foley v. Consolidated City of Indianapolis, 421 N.E.2d 1160 (Ind.App. 1981); 4 E. McQuillin, Municipal Corporations § 12.196a (3rd ed. 1977 rev. vol.); see Police Board v. McPhail, 139 Colo. 330, 338 P.2d 694 (1959).

For the same reasons, plaintiffs could not have reasonably relied upon continuing payments under the program, and therefore, their claims based on promissory estoppel must fail. Chicago Patrolmen's Ass'n v. City of Chicago, supra; Foley v. Consolidated City of Indianapolis, supra.

Because of our disposition of the City's appeal, the claims asserted on cross-appeal by the police department that the City cannot terminate the alleged contract with respect to prospective benefits need not be addressed.

The judgment of the trial court is reversed and the cause is remanded with directions to enter judgment in favor of the City.

JUDGE BERMAN and JUDGE KELLY concur.


Summaries of

Keeling v. Grand Junction

Colorado Court of Appeals
Apr 26, 1984
689 P.2d 679 (Colo. App. 1984)

holding that "[o]ne who contracts with a municipality is charged with knowledge of its limitations and restrictions in making contracts"

Summary of this case from Schulz v. City of Longmont, Colorado

holding that "[o]ne who contracts with a municipality is charged with knowledge of its limitations and restrictions in making contracts"

Summary of this case from Kirkland v. St. Vrain Valley School District No. Re-1J

imparting constructive knowledge that a city council could only act pursuant to the authority granted to it by the city's charter

Summary of this case from Dillon v. Twin Peaks

imparting constructive knowledge that a city council could only act pursuant to the authority granted to it by the city's charter

Summary of this case from Brammer v. Twin Peaks

noting that "the fixing of salaries of city employees" is "[a]mong the legislative powers of a city council"

Summary of this case from Schulz v. City of Longmont, Colorado

In Keeling v. City of Grand Junction, 689 P.2d 679 (Colo.App.1984), for instance, the court found that an educational incentive pay program for police officers and firefighters did not create a contractual obligation.

Summary of this case from Boggess v. City of Charleston

In Keeling, 689 P.2d at 681, the Court held that because the fixing of salaries is subject to change and contingent upon continued employment "plaintiffs could not have reasonably relied upon continuing payments under the [education incentive] program, and therefore, their claims based on promissory estoppel must fail."

Summary of this case from Dearborn v. City of Frankfort

In Keeling v. City of Grand Junction, 689 P.2d 679 (Colo.App. 1984), a division of this court held that city employees did not have a vested contractual right in the continuance of a particular rate or method of compensation.

Summary of this case from Alderton v. State
Case details for

Keeling v. Grand Junction

Case Details

Full title:Robert D. Keeling, Leroy Johnson, Alan C. Palmer, Carl Campbell, Mike…

Court:Colorado Court of Appeals

Date published: Apr 26, 1984

Citations

689 P.2d 679 (Colo. App. 1984)

Citing Cases

Schulz v. City of Longmont, Colorado

These restrictions are incorporated into any contract the municipality makes. See Keeling v. City of Grand…

Kirkland v. St. Vrain Valley School District No. Re-1J

These restrictions are incorporated into any contract the government entity makes. See Keeling v. City of…