It's not unheard of for Statewide candidates to drop down to a more prominent local on such as mayor. I honestly can't think of anything off the top of my head, but there are several on the tip of my tongue.
at any rate, was he term-limited perhaps?
Antonio Villaraigosa dropped down from State Assembly Speaker to Los Angeles City Councilman.
On a related note, Hilda Solis went from US Secretary of Labor to the LA County Board of Supervisors.
I've read that the Los Angeles Board of Supervisors is one of the most powerful offices in the entire state of California, so it's not quite as much of a drop down as it seems at first.