Loading...
CC SR 20250506 02 - AB 2561 Vacancies Recruitment and Retention PUBLIC HEARING Date: May 6, 2025 Subject: Consideration to receive a 2024 report on the City’s Vacancies and Recruitment and Retention Efforts per Assembly Bill 2561 and Government Code § 3502.3. Recommendation: (1) Receive and file an annual report on the 2024 City’s vacancies and recruitment and retention efforts, in compliance with new legal obligations under Assembly Bill (AB) 2561/Government Code § 3502.3. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Bradley 3. Request for Staff Report: Mayor Bradley 4. Staff Report & Recommendation: Vanessa Godinez, Human Resources and Risk Manager, and Eileen Jacinto, Human Resources Analyst 5. Council Questions of Staff (factual and without bias): 6. Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Bradley 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. CITY COUNCIL MEETING DATE: 05/06/2025 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration to receive a 2024 report on the City’s Vacancies and Recruitment and Retention Efforts per Assembly Bill 2561 and Government Code § 3502.3 RECOMMENDED COUNCIL ACTION: 1) Receive and file an annual report on the 2024 City’s vacancies and recruitment and retention efforts, in compliance with new legal obligations under Assembly Bill (AB) 2561/Government Code § 3502.3. FISCAL IMPACT: There is no fiscal impact to receive and file this report. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Eileen Jacinto, Human Resources Analyst Vanessa Godinez, Human Resources and Risk Manager VG REVIEWED BY: Catherine Jun, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENT: 1. Assembly Bill No. 2561 Text: Legislative Counsel’s Digest (page A-1) BACKGROUND On September 22, 2024, Governor Newsom signed AB 2561 into law, amending the Meyers-Milias-Brown Act that authorizes local public employees to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. AB 2561 requires local governments to publicly address the issue of job vacancies within their workforce, which can adversely affect the delivery of public services and employee workload. In short, AB 2561 mandates public agencies to conduct a public hearing on the status of vacancies, 1 in addition to recruitment and retention efforts, at least once per fiscal year. The bill went into effect on January 1, 2025 and is codified under Government Code § 3502.3. DISCUSSION In compliance with the new legal obligations, the City is required to do the following: 1. Public Hearing: At least once each fiscal year, at a public hearing before the City Council, the City shall present information regarding the status of vacancies , recruitment, and retention efforts (Gov. Code § 3502.3(a)(1)) and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process (Gov. Code § 3502.3(a)(3)). If the City Council adopts an annual or multiyear budget during the fiscal year, this presentation must occur prior to the City Council’s adoption of the final budget for the City (Gov. Code § 3502.3(a)(2)). 2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit at the City to make presentations during the public hearing concerning vacancies and recruitment and retention efforts. There are two (2) bargaining units at the City (Gov. Code § 3502.3(b)). They include the American Federation of State, County and Municipal Employees, District Council 36 (AFSCME), which represents 60 part-time employees, and Rancho Palos Verdes Employee Association (RPVEA), which represents 54 full-time (non-management or confidential) employees. Human Resources duly notified both bargaining units regarding this public hearing and the opportunity to make presentations via email on April 24, 2025. 3. Additional Reporting for High Vacancy Rates: In 2024, the vacancy rates in AFSCME and RPVEA were 12% and 11%, respectively. Per AB 2561, if vacancies within a single bargaining unit meet or exceed 20% of authorized full-time positions in that bargaining unit, upon request of the recognized employee organization for that bargaining unit, the City must provide additional information during the public hearing, including the following: (1) the total number of vacancies; (2) the number of applicants; (3) the average time to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit (Gov. Code § 3502.3(c)). 2024 Recruitment and Retention Efforts Recruitment: The City remains focused on supporting recruitment and retention efforts to ensure continuous, effective operations, utilizing strategic initiatives. In 2024, several key strategies contributed to the successful recruitment of new full-time and part-time employees: 2 • Human Resources revised and streamlined job postings to make them clearer, consistent, and more concise. • For select hard-to-fill positions, sign-on incentive bonuses authorized by the City Council were offered, which helped attract highly qualified candidates. • The City hired executive recruitment firms to manage its more challenging recruitments in a competitive market. Firms utilized their expansive networks, diversified outreach tools, expertise in public sector hiring trends, consistent follow- up with candidates, and a streamlined selection process to identify a pool of qualified applicants. This has allowed the City to fill the following management positions in Fiscal Year 2024-25: o Two Principal Engineers for the Public Works Department o Deputy City Manager o Deputy Director of Finance o Human Resources and Risk Manager • In March 2024, a new salary schedule was approved following the classification and compensation study. This updated schedule increased the minimum and maximum pay ranges up to the 75th percentile of ranges at comparable agencies, ensuring that the City’s salaries remain competitive. • An ongoing recruitment challenge is competing with the private sector employer branding. To address this, the City emphasized the value of public service and the opportunity to make a meaningful impact in the community. Additionally, the job postings promoted the City’s attractive benefits package, which includes, among other things, work-life balance, competitive health insurance plans, paid vacation and holidays, wellness programs, and a pension plan through CalPERS. • To widen the City’s pool of applicants, Human Resources expanded its outreach tools by advertising jobs on LinkedIn, various social media platforms, and industry specific job boards such as the Public CEO, American Public Works Association, Municipal Management Association of Southern California, and GovernmentJobs.com. Retention: The City has successfully retained long-term employees by fostering a positive work culture, promoting from within (when possible and when appropriate), supporting employee development, and offering a competitive merit-based evaluation system. • In 2024, nine internal promotions were made through a competitive recruitment process that included both internal and external candidates. • In March, the City launched its first wellness program called Live Well RPV. The program is designed to support employees’ overall health and well-being and is offering a variety of resources, activities, and tools to help employees thrive personally and professionally. • The City has engaged in good faith negotiations with RPVEA over the last several months, ahead of their Memorandum of Understanding expiring on June 30, 2025. 3 The City is also preparing to enter into negotiations with AFSCME in May 2025. By approaching negotiations with transparency and a commitment to mutual understanding, the City aims to reach agreements that support long-term workforce stability and satisfaction. CONCLUSION: Staff recommends receiving and filing this 2024 report on city vacancies, recruitments and retention efforts. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Decline to receive and file this report on 2024 vacancies, recruitment, and retention efforts in the City and provide staff further direction. 2. Take other action, as deemed appropriate. 4 Assembly Bill No. 2561 CHAPTER 409 An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ] LEGISLATIVE COUNSEL'S DIGEST AB 2561, McKinnor. Local public employees: vacant positions. Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action. This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings. The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs. Digest Key Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes Bill Text 4/11/25, 1:56 PM California-2023-AB2561-Chaptered https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 1/3A-1 THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares as follows: (a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations. SEC. 2. Section 3502.3 is added to the Government Code, to read: 3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit. (c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing: (1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501. 4/11/25, 1:56 PM California-2023-AB2561-Chaptered https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 2/3A-2 SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings: It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public. SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law. 4/11/25, 1:56 PM California-2023-AB2561-Chaptered https://legiscan.com/CA/text/AB2561/id/3022144/California-2023-AB2561-Chaptered.html 3/3A-3