The proposed ballot initiative would have let city residents decide if they'd like the position of mayor to remain a citywide contest or a position filled by a different city councilmember every year.
The news comes as just last month the council voted to reduce the mayor's salary by 56%, with the change taking effect after the mayor's current term.
Mayor Valdivia told the San Bernardino Sun that the proposed measure was a distraction, and that the city council continues to be distracted with non-essential issues.
Councilmembers Sandra Ibarra and Damon Alexander opposed the ballot initiative in the vote last week, with Councilmember Ben Reynoso abstaining.