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2/22/72 ,~ CITY ATIVRNEY OPINION NO. 72-1 RETROACTIVE PAY INCREASES QUESTION: Must the City of Santa Ana pay its employees the gage increase it granted November 15, 1971, retroactively to September 1, 1971? ' ANSWER: Yes: DISCUSSION: '' Introduction Santa Ana, has for the last 20 years or more annually, readjusted its wage rates, usually effective September 1st. Over these 20 years only once was the pay raise made effective other than September 1st. .: In accordance with established custom, the City Manager's office held informal "meet and confer" sessions during the course .,- of last year with representatives,of the .Employees Association. At these meetings it was always explicitly understood that the negotiations were all directed at a schedule pay increase date of .September 1st, and that there would be no departure from the City's • ! previous practice. Thus there can be no reasonable difference of opinion that it was the expressed intent of the parties that the increase. eventually granted effective. November 15th would have been granted as of September 1st were it not for the Presidential Executive Order authorized under the Economic Stabilization Act, (Title 6, Chapter 1, Part 101 et, seq.). Legal Analysis ' In the early years of this republic the famous Dartmouth College case was argued by Daniel Webster before the U.S. Supreme ~:~'- Court presided over by Chief Justice Marshall. The gist of the action contested the power of Congress to abrogate certain pre- existing contractural rights of Dartmouth College. The holding of the case established that subsequent executive and legislative action could not destroy prior contractural rights. The holding of this case has never been reversed, and I don't believe its 1