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 26, 2024
SUBJECT: SECOND READING OF ORDINANCE REPEALING THE CITY’S
HEALTHCARE WORKERS MINIMUM WAGE ORDINANCE
EXECUTIVE SUMMARY
The City Council will consider adopting an Ordinance Repealing Chapter 13 (Healthcare Workers Minimum Wage Ordinance) of Article VI of the Downey Municipal Code (Business, Trades, and Professions). 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 Ordinance No. 24-1510, Repealing Chapter 13 (Healthcare Workers Minimum Wage Ordinance) of Article VI of the Downey Municipal Code (Business, Trades, and Professions).
BACKGROUND
The Ordinance (Attachment A) was introduced for first reading at the regular City Council meeting of March 12, 2024, where it was approved without modification. As required by law and the City’s Charter, the final reading and adoption must occur at a regularly scheduled meeting.
ANALYSIS
The analysis and information provided in the original agenda memo dated March 12, 2024 remains unchanged.
CITY COUNCIL PRIORITIES
Efficiency & Adaptability
SECOND READING OF ORDINANCE REPEALING CHAPTER 13 (HEALTHCARE WORKERS MINIMUM
WAGE ORDINANCE) OF ARTICLE VI OF THE DOWNEY MUNICIPAL CODE (BUSINESS, TRADES, AND
PROFESSIONS)
MARCH 26, 2024
PAGE 2
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Attachment A: Ordinance
ORDINANCE NO. 24-1510
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY
REPEALING CHAPTER 13 (HEALTHCARE WORKERS MINIMUM WAGE
ORDINANCE) OF ARTICLE VI OF THE DOWNEY MUNICIPAL CODE
(BUSINESS, TRADES, AND PROFESSIONS)
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 that would 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
ORDINANCE NO. 24-1510
PAGE 2
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, by separate and concurrent resolution, withdrawn the Ordinance from the November 5, 2024 General Municipal Election ballot and cancelled all further election proceedings for the Ordinance; and
WHEREAS, due to the effect of SB 525 on the Ordinance, as described above, it is also necessary to repeal the Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES HEREBY ORDAIN AS FOLLOWS:
ORDINANCE NO. 24-1510
PAGE 3
SECTION 1. 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.
SECTION 2. Chapter 13 (Healthcare Workers Minimum Wage Ordinance) of Article VI of the Downey Municipal Code (Business, Trades, and Professions), enacted by Ordinance No. 22-1485, is hereby repealed in its entirety.
SECTION 3. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment and it is not a "project", as defined in Section 15378 of the CEQA Guidelines.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Downey hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 5. This Ordinance shall become effective thirty (30) days after its adoption.
SECTION 6. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be published as required by law.
APPROVED AND ADOPTED this 26th day of March 2024.
______________________________________
MARIO TRUJILLO
Mayor
ATTEST:
___________________________________
MARIA ALICIA DUARTE, CMC
City Clerk
Approved as to form:
___________________________________
JOHN M. FUNK
City Attorney
I HEREBY CERTIFY that the foregoing Ordinance No. 24-1510 was adopted by the City Council of the City of Downey at a Regular meeting of the City Council held on the 26th day of March, 2024, by the following vote, to wit:
ORDINANCE NO. 24-1510
PAGE 4
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
I FURTHER CERTIFY that the full text of the foregoing Ordinance No. 24-1510 was published in the Downey Patriot, a newspaper of general circulation in the City of Downey, on 28th (after adoption, including the vote thereon). It was also posted in the regular posting places in the City of Downey on the same dates.
MARIA ALICIA DUARTE, CMC
City Clerk