Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: M. ALICIA DUARTE, CMC, CITY CLERK
BY: JOHN M. FUNK, CITY ATTORNEY
DATE: MARCH 12, 2024
SUBJECT: RESOLUTION WITHDRAWING THE CITY’S HEALTHCARE WORKERS MINIMUM WAGE ORDINANCE FROM THE NOVEMBER 5, 2024 GENERAL
MUNICIPAL ELECTION AND CANCELLING ALL FURTHER ELECTION
PROCEEDINGS RELATED TO THE ORDINANCE
EXECUTIVE SUMMARY
The City Council will consider the adoption of a Resolution Withdrawing the City’s Healthcare Workers Minimum Wage Ordinance from the November 5, 2024 General Municipal Election and Cancelling All Further Election Proceedings Related to the Ordinance. This action is necessary due to the effect of Senate Bill 525 that was signed by the Governor during the 2023 Legislative Session.
RECOMMENDATION
That the City Council:
Adopt Resolution No. 24-8232 Withdrawing the City’s Healthcare Workers Minimum Wage Ordinance from the November 5, 2024 General Municipal Election and Cancelling All Further Election Proceedings Related to the Ordinance.
BACKGROUND
On May 17, 2022, a local petition was filed with the City Council seeking to enact an initiative measure/ordinance to add Chapter 13 to Article VI of the Downey Municipal Code to establish a minimum wage of $25.00 per hour for qualifying healthcare workers working in the City. This was to be known as the “Healthcare Workers Minimum Wage Ordinance” (“Ordinance”).
In lieu of placing the Ordinance on the ballot at the next regularly scheduled election, the City Council, on July 12, 2022, instead voted to adopt the Ordinance without alteration, as authorized by the California Elections Code. The Ordinance, Ordinance No. 22-1485, was scheduled to take effect 30 days after the City Council’s adoption, or on August 11, 2022, unless challenged by referendum petition.
RESOLUTION WITHDRAWING THE CITY’S HEALTHCARE WORKERS MINIMUM WAGE ORDINANCE FROM THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION AND CANCELLING ALL
FURTHER ELECTION PROCEEDINGS RELATED TO THE ORDINANCE
MARCH 12, 2024
PAGE 2
The Ordinance did not take effect as scheduled because a group of Downey residents timely filed with the City a referendum petition protesting the Ordinance. The referendum petition was signed by the requisite number of voters to qualify the Ordinance for the ballot unless the Ordinance was repealed by the City Council. The City Council did not repeal the Ordinance.
Due to the referendum petition, the Ordinance could not take effect until approved by a majority of Downey voters the next municipal election. Accordingly, on December 8, 2022, by Resolution No. 22-8125, the City Council voted to place the Ordinance before Downey voters at the November 5, 2024 General Municipal Election.
On October 13, 2023, Governor Newsom signed Senate Bill 525 (“SB 525”), which became effective on January 1, 2024. SB 525 fully preempted and rendered void the City’s Ordinance, mandating a statewide industry minimum wage for healthcare workers at virtually all health care facilities and hospitals in the state, both large and small.
Specifically, SB 525 provides that “[a]ny ordinance, regulation, or administrative action taken by any city, county, or city and county, including charter cities, charter counties, and charter cities and counties, that is enacted or takes effect after September 6, 2023, related to covered health facilities, that establishes, requires, imposes, limits, or otherwise relates to wages, salaries, or compensation for covered health care facility employees, as defined in this section, is void.” Not only does SB 525 void local health care wage ordinances but it also prohibits localities from adopting their own health care minimum wage ordinances for 10 years, or until 2034.
In recognition of SB 525, the City Clerk received a request for withdrawal of the initiative Ordinance signed by the Ordinance’s original proponent. The City Clerk also received a notice of withdrawal of the referendum petition signed by the petition’s original proponent.
Under the Elections Code, these withdrawals were effective upon receipt by the City.
ANALYSIS
SB 525 imposes a state-wide minimum wage structure for healthcare workers and covers virtually all health care facilities in the state. By its own language, and without anything more, SB 525 rendered void all local ordinances to the same effect that were enacted or took effect after September 6, 2023. While originally enacted and scheduled to take effect before this date, Downey’s Healthcare Workers Minimum Wage Ordinance never took effect because of the referendum petition. The Ordinance’s effectiveness remains suspended. Moreover, the Ordinance has now become void as a result of SB 525.
RESOLUTION WITHDRAWING THE CITY’S HEALTHCARE WORKERS MINIMUM WAGE ORDINANCE FROM THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION AND CANCELLING ALL
FURTHER ELECTION PROCEEDINGS RELATED TO THE ORDINANCE
MARCH 12, 2024
PAGE 3
Because the Ordinance has been nullified by state law, it is no longer necessary to place the Ordinance before Downey voters at the November 5, 2024 General Municipal Election or to schedule any further election proceedings related to the Ordinance. The adoption of the attached resolution (Attachment A) will remove the Ordinance from this or any future ballot.
The resolution removes only the Ordinance from the ballot. Pursuant to the City Charter and applicable provisions of the California Elections Code, the November 5, 2024 General Municipal Election will be held and conducted to elect qualified candidates to elective City offices as well as for voters to consider any other City initiative, referendum, or measure that qualifies and is placed on the ballot for that election.
The City Clerk was originally authorized to coordinate with the Los Angeles County Registrar of Voters the placement of the Ordinance on the November 5, 2024 ballot and will also be authorized to do the same for its removal.
Concurrently with this item, and by separate action, the City Council will consider an ordinance repealing the City’s now-void Healthcare Workers Minimum Wage Ordinance.
This housekeeping action is necessary because without it, the Healthcare Workers Minimum Wage Ordinance could become codified in the Downey Municipal Code.
CITY COUNCIL PRIORITIES
Efficiency & Adaptability
FISCAL IMPACT
There is no fiscal impact. If the resolution is adopted, nor will the City incur the costs of the referendum election on the Ordinance that was originally scheduled for November 5, 2024.
ATTACHMENTS
Attachment A: Resolution
RESOLUTION NO. 24-8232
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY, CALIFORNIA, WITHDRAWING THE CITY’S HEALTHCARE WORKERS
MINIMUM WAGE ORDINANCE FROM THE NOVEMBER 5, 2024 GENERAL
MUNICIPAL ELECTION AND CANCELLING ALL FURTHER ELECTION
PROCEEDINGS RELATED TO THE ORDINANCE
WHEREAS, pursuant to authority provided by statute, on May 17, 2022, a local petition was filed with the City Council of the City of Downey seeking to enact an initiative measure/ordinance to add Chapter 13 to Article VI of the Downey Municipal Code to establish a minimum wage of $25.00 per hour for qualifying healthcare workers working in the City of Downey, to be known as the “Healthcare Workers Minimum Wage Ordinance” (“Ordinance”); and
WHEREAS, at a regular meeting of the City Council on July 12, 2022, the City Clerk, through the Los Angeles County Registrar of Voters, certified that the form of the initiative petition complied with California law and, based upon an examination of voter registration records, was signed by the requisite number of Downey registered voters (10%) to qualify the Ordinance for the ballot under the California Elections Code; and
WHEREAS, on July 12, 2022, in lieu of placing the Ordinance on the ballot at the next regularly scheduled election, the City Council voted to adopt the Ordinance without alteration, as authorized by Elections Code section 9215(a); and
WHEREAS, the Ordinance, Ordinance No. 22-1485, was scheduled to take effect 30 days after the City Council’s adoption, or on August 11, 2022, unless challenged by referendum petition; and
WHEREAS, pursuant to authority provided by Elections Code section 9235 et. seq., on August 10, 2022, a group of Downey residents timely filed with the City a signed petition protesting the Ordinance by referendum which, if qualified, would suspend the effective date of the Ordinance and require that the City Council reconsider the Ordinance to either repeal the Ordinance in its entirety or submit the Ordinance to a vote by Downey voters; and
WHEREAS, the City Clerk, through the Los Angeles County Registrar of Voters, certified that the form of the referendum petition complied with California law and, based upon an examination of voter registration records, ascertained that the petition was signed by the requisite number of voters to qualify the Ordinance for the ballot under the Elections Code, unless the Ordinance was repealed by the City Council; and
WHEREAS, the City Council did not vote to repeal the Ordinance; and
WHEREAS, pursuant to Elections Code section 9237, because the referendum petition was signed by the requisite number of voters and the Ordinance was not repealed by the City Council, the effective date of the Ordinance was suspended, and the Ordinance could not take effect until approved by a majority of Downey voters at a municipal election; and
WHEREAS, the City Council was authorized and required by the Elections Code to submit the Ordinance to the voters at either its next regular municipal election or at a special municipal election called for that purpose, occurring not less than 88 days after the date of order of election; and
Resolution No. 24-8232
WHEREAS, on December 8, 2022, by Resolution No. 22-8125, and in accordance with these timeframes, the City Council voted to place the Ordinance before Downey voters at the November 5, 2024 General Municipal Election; and
WHEREAS, on October 13, 2023, Governor Newsom signed Senate Bill 525 (“SB 525”), first-in-the-nation legislation which itself mandates an across-the-board, industry minimum wage for healthcare workers at virtually all health care facilities and hospitals in the state, both large and small; and
WHEREAS, SB 525 provides that “[a]ny ordinance, regulation, or administrative action taken by any city, county, or city and county, including charter cities, charter counties, and charter cities and counties, that is enacted or takes effect after September 6, 2023, related to covered health facilities, that establishes, requires, imposes, limits, or otherwise relates to wages, salaries, or compensation for covered health care facility employees, as defined in this section, is void”; and
WHEREAS, by its language, SB 525 is intended to “occup[y] the whole field of wages, salary, or compensation for covered health care facility employees, and applies to all cities and counties, including charter cities, charter counties, and charter cities and counties”; and
WHEREAS, SB 525 prohibits localities from adopting their own health care minimum wage ordinances for 10 years, until 2034; and
WHEREAS, by the foregoing, and because the Ordinance would take effect, if at all, after September 6, 2023, SB 525 serves to fully preempt Ordinance and render the Ordinance void, without anything more; and
WHEREAS, in express recognition of SB 525, on January 4, 2024, the City Clerk received a request for withdrawal of the initiative Ordinance, signed by Mr. Jorge Rivera, the Ordinance’s original proponent; and
WHEREAS, also in express recognition of SB 525, on January 30, 2024, the City Clerk received a notice of withdrawal of the referendum petition related to the Ordinance, signed by Ms.
Hermila Villafan, the petition’s proponent; and
WHEREAS, Elections Code section 9604 provides in pertinent part that “[w]ithdrawal of a local initiative or referendum measure . . . shall be effective upon receipt by the appropriate local elections official of a written notice of withdrawal, signed by all proponents of the measure”; and
WHEREAS, due to the effect of SB 525 on the Ordinance, and the corresponding withdrawals of both the initiative measure and the referendum petition by their respective proponents, the City Council has the authority and desires to formally withdraw the Ordinance from the November 5, 2024 General Municipal Election ballot and cancel all further election proceedings for the Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. Recitals. The City Council of the City of Downey hereby finds and determines that the foregoing recitals are true and correct, are incorporated herein, and by this reference made an operative part hereof.
Resolution No. 24-8232
SECTION 2. Withdrawal of Ordinance from November 5, 2024 General Municipal Election. The City Council hereby rescinds Resolution No. 22-8125 and orders the Ordinance attached as Exhibit A to be withdrawn from the ballot for the General Municipal Election to be held on Tuesday, November 5, 2024. The Ordinance shall not be printed in the ballot and no further election proceedings shall be undertaken with respect to the Ordinance, except as necessary to remove it from the ballot as set forth herein.
SECTION 3. November 5, 2024 General Municipal Election To Be Held for All Other Election Matters. This Resolution only removes the Ordinance from the ballot. Pursuant to the City Charter and applicable provisions of the California Elections Code, the November 5, 2024 General Municipal Election will be held and conducted to elect qualified candidates to elective City offices as well as for voters to consider any other City initiative, referendum, or measure that qualifies and is placed on the ballot for that Election.
SECTION 4. Election Cancellation Procedures. The City Clerk is authorized, instructed, and directed to take all appropriate action, in coordination with the Los Angeles County Registrar of Voters, to remove the Ordinance from the November 5, 2024 General Municipal Election as set forth herein.
SECTION 5. Filing with County. The City Clerk shall file with the Los Angeles County Registrar of Voters a certified copy of this Resolution.
SECTION 6. CEQA. The City Council hereby finds and determines that withdrawal of the ballot measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
SECTION 7. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
SECTION 8. Effective Date of Resolution. This Resolution shall become effective upon its adoption.
APPROVED AND ADOPTED this ____ day of March 2024.
______________________________________
MARIO TRUJILLO
Mayor
Attest:
___________________________________
MARIA ALICIA DUARTE, CMC
City Clerk
Resolution No. 24-8232
Approved as to form:
___________________________________
JOHN M. FUNK
City Attorney
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a Regular meeting held on the ____ day of March, 2024, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
MARIA ALICIA DUARTE, CMC
City Clerk