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Home My WebLink AboutStaff Report 9385 CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY June 18, 2018 The Honorable City Council Palo Alto, California Adoption of a Resolution Placing an Initiative Measure on the November 6, 2018 Ballot to Amend Title 5 of the Palo Alto Municipal Code to Limit Health Care Costs That Hospitals, Medical Clinics and Other Health Care Providers may Charge Patients and Other Payers From: Joint Report of the City Clerk, City Manager and City Attorney Recommendation As directed by Council on June 11, 2018, staff recommends that the City Council adopt the attached Resolution calling an election to submit the Initiative to the voters at the next general municipal election on November 6, 2018 on the Palo Alto Accountable and Affordable Health Care Initiative (Attachment A). Discussion On June 11, 2018, the City Council accepted the Certificate of Sufficiency of the Initiative Petition to limit health care costs that hospitals, medical clinics and other providers may charge (the “Initiative”) and considered its options relative to the Initiative. Palo Alto Charter Article VI, Section 2, requires the City Council to either adopt the initiative ordinance verbatim or place it on the ballot. After hearing from the public, the Council directed staff to return on June 18, 2018 with a resolution to place the Initiative on the November 6, 2018 ballot. The Council also directed staff to prepare a report analyzing the effects of the Initiative on Palo Alto residents, businesses and City staff, after the summer recess. The staff report for the June 11th meeting is at: https://www.cityofpaloalto.org/civicax/filebank/documents/65422 On June 13, 2018, the City Attorney received a letter from Stanford Health Care (Attachment B) reiterating its request that the City file a court challenge to the Initiative or, if the City was not so inclined, that the City Council not further delay the placement of the Initiative on the ballot so that Stanford Health Care could initiate a pre-election challenge. The schedule for the November 6, 2018 election is as follows:  August 10, 2018: Deadline for submitting measure to County  August 14, 2018: Deadline for direct arguments Page 2  August 21, 2018: Deadline for rebuttal arguments and impartial analysis Resource Impact The estimated cost of the November 2018 election including this potential ballot measure, 2-3 additional ballot measures, the 3 vacant seats on the City Council, and translation into several languages is approximately $125,000. The FY 2019 Budget currently includes funding of $100,000. Environmental Review The City Council’s action to submit an initiative measure to the voters is not subject to review under the California Environmental Quality Act. ATTACHMENTS:  Attachment A: Resolution to Amend Title 5 of PAMC to Limit Health Care Costs (PDF)  Attachment B: Letter from Stanford dated June 13, 2018 (PDF) Department Head: Molly Stump, City Attorney Page 3 1 SL:/Elections/ RESO Initiative Measure Placing Limit on Health Care Costs **NOT YET ADOPTED** Resolution No. ____ Resolution of the Council of the City of Palo Alto Submitting to the Voters at the Next General Municipal Election on November 6, 2018 an Initiative Ordinance to Amend Title 5 of the Palo Alto Municipal Code to Limit Health Care Costs that Hospitals, Medical Clinics and Other Health Care Providers May Charge Patients and Other Payers RECITALS A. An initiative petition to amend the City of Palo Alto Municipal Code to impose limits on the costs that hospitals, medical clinics and other providers may charge in Palo Alto (referred to herein as the “Initiative Measure” or “Initiative Petition”) has been submitted to the City in accordance with the requirements of Section 2 of Article VI of the Charter of the City of Palo Alto. B. On June 4, 2018, the City Council accepted the Certificate of Sufficiency of the Initiative Petition issued by the County of Santa Clara Registrar of Voters and directed staff to return with a resolution putting the measure on the November 6, 2018 ballot. C. By Resolution No. ______, adopted on June 18, 2018, the City Council called a general municipal election for November 6, 2018 (“Election”). D. Pursuant to Section 2 of Article VI of the City Charter, the City Council is required to submit to the electors of the City of Palo Alto the Initiative Measure at the next general municipal election which is a regularly scheduled general municipal election on November 6, 2018. NOW, THEREFORE, the City Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Initiative Measure Submitted to Voters at General Municipal Election. A regularly scheduled general municipal election has been called for the City of Palo Alto to be held on Tuesday, November 6, 2018. Under Charter Article VI, the following question is submitted to the voters at the election: CITY OF PALO ALTO INITIATIVE MEASURE ________: Shall the Palo Alto Municipal Code be amended to regulate and limit health care costs that hospitals, medical clinics and other health care providers in Palo Alto may charge patients and other payers? For the Ordinance ____ Against the Ordinance ____ 2 SL:/Elections/ RESO Initiative Measure Placing Limit on Health Care Costs SECTION 2. Adoption of Measure. The measure to be submitted to the voters is attached to this Resolution as Exhibit “1” and incorporated by this reference. If a majority of qualified electors voting on such measure shall vote in favor of City of Palo Alto Initiative Measure “___”, it shall be deemed ratified and shall read as provided in Exhibit “1”. SECTION 3. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the election in time, form, and manner as required by law. SECTION 4. Impartial Analysis. The City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 21, 2018. SECTION 5. Ballot Arguments. Arguments in favor of or against the measure shall be submitted to the City Clerk on or before August 14, 2018 at 5:00 p.m. under Elections Code section 9286 et seq. If the City Clerk receives more than one argument for and/or against, the priorities established by Elections Code section 9287 shall control. SECTION 6. Rebuttal Arguments. Rebuttal arguments shall be controlled by the provisions of Elections Code section 9285. The deadline for filing rebuttal arguments shall be August 21, 2018, at 5:00 p.m. SECTION 7. Duties of City Clerk. The Palo Alto City Clerk shall do all things required by law to effectuate the November 6, 2018, general municipal election, including but not limited to causing the posting, publication and printing of all notices or other election materials under the requirements of the Charter of the City of Palo Alto and the California Elections and Government Codes. SECTION 8. Request and Consent to Consolidate. The Council of the City of Palo Alto requests the governing body of any other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and the City Council consents to such consolidation. The Council requests the Board of Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified measures submitted by the City Council to be ratified by the qualified electors of the City of Palo Alto. SECTION 9. Request for County Services. Under Section 10002 of the California Elections Code, the Council of the City of Palo Alto requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto’s General Municipal and Special Elections which are called to be held on Tuesday, November 6, 2018. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including but not limited to checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absentee voter ballot applications, mailing and receiving 3 SL:/Elections/ RESO Initiative Measure Placing Limit on Health Care Costs absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines. SECTION 10. Transmittal of Resolution. The City Clerk is hereby directed to submit a certified copy of this resolution to the Board of Supervisors and Registrar of Voters of the County of Santa Clara. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ _____ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ Assistant City Attorney City Manager Exhibit 1