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CC SR 20260421 02 - AB 2561 Vacancies Recruitment and Retention PUBLIC HEARING - NON-ADJUDICATIVE Date: April 21, 2026 Subject: Consider a 2025 report on the City’s vacancies, recruitment, and retention efforts per Assembly Bill (AB) 2561 and Government Code § 3502.3. Recommendation: 1) Receive and file a 2025 report on the City’s vacancies, recruitment, and retention efforts in compliance with the legal obligations under AB 2561/Government Code § 3502.3. 1. Report of Notice Given: City Clerk Takaoka 2. Declare Public Hearing Open: Mayor Seo 3. Request for Staff Report: Mayor Seo 4. Staff Report & Recommendation: Eileen Jacinto, Human Resources Analyst Vanessa Godinez, Human Resources and Risk Manager 5. Council Questions of Staff (factual and without bias): 6. Public Testimony: General Public 3 Minutes Each. 7. Council Questions of Public Testimony (factual and without bias): 8. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Seo 9. 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. 10. 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: 04/21/2026 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consider a 2025 report on the City’s vacancies, recruitment, and retention efforts per Assembly Bill (AB) 2561 and Government Code § 3502.3. RECOMMENDED COUNCIL ACTION: 1) Receive and file a 2025 report on the City’s vacancies, recruitment, and retention efforts in compliance with the legal obligations under 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 CJ APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENT: 1. AB 2561 Text: Legislative Counsel’s Digest (page A-1) 2. Administrative Instruction Manual No. 2-21 Recruitment Incentive Program (page B-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, which is codified under Government Code § 3502.3, went into effect on January 1, 2025 and requires cities to complete the following steps each year: 1 1. Public Hearing: At least once per fiscal year, at a public hearing before the City Council, the City shall present information regarding the status of vacancies , recruitment, and retention efforts and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. 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. 2. Employee Organization Participation: Allow the recognized employee organization for each bargaining unit to make presentations during the public hearing concerning vacancies, recruitment, and retention efforts. There are two (2) bargaining units at the City: American Federation of State, County and Municipal Employees, District Council 36 (AFSCME), which represents 64 part-time employees, and Rancho Palos Verdes Employee Association (RPVEA), which represents 57 full-time (non-management or confidential) employees. Human Resources duly notified both bargaining units regarding tonight’s public hearing and the opportunity to make presentations via email on April 6, 2026. 3. Additional Reporting for High Vacancy Rates: 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)). DISCUSSION: 2025 Vacancy Rates In 2025, vacancy rates for AFSCME and RPVEA were below the 20% threshold noted above. AFSCME’s vacancy rate was 16.9%, which was higher than the prior year rate of 12%. This was primarily attributed to increased staffing turnover or decreased schedule availability among part-time Recreation Leader or Specialist positions over the winter season. As such, Human Resources ramped up recruitment efforts in February 2025 to fill vacancies, uncovered shifts, as well as anticipated openings for seasonal summer work. By June 2025, these openings were staffed and Human Resources established a viable list of eligible candidates to use for future vacancies. RPVEA’s vacancy rate in 2025 was 6.6%, which is lower than the prior year rate of 11%. This was attributed to proactive efforts to fill difficult-to-recruit positions, which are detailed below. 2 2025 Recruitment and Retention Efforts Recruitment: The City remains focused on supporting recruitment and retention efforts to ensure continuous, effective operations, utilizing strategic initiatives. In 2025, several key strategies contributed to the successful recruitment of new full-time and part-time employees: • Human Resources revised and streamlined job postings to make them clearer, consistent, and more concise. • For select, hard-to-fill positions, which included two (2) Principal Engineers, sign- on incentive bonuses authorized by the City Council (Attachment B) were offered, which helped the City attract highly qualified candidates and fill both positions in 2025. • The City also hired an executive recruitment firm 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 two Principal Engineers mentioned above. • In July 2025, a new three-year Memorandum of Understanding (MOU) with RPVEA was adopted that increased the minimum and maximum pay ranges up by 3.0%, along with other additional benefits, ensuring that the City’s salaries and benefits remain competitive in the region. • To widen the City’s pool of applicants, Human Resources continues to expand its outreach tools by advertising jobs on LinkedIn, various social media platforms, and industry specific job boards including, but not limited to, Public CEO, League of California Cities, International City/County Management Association, American Public Works Association, Municipal Management Association of Southern California, GovernmentJobs.com, and local colleges and universities. 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 training, and offering a competitive merit-based evaluation system. • In 2025, seven internal promotions were made through a competitive recruitment process that included both internal and external candidates. • In 2025, the City continued and strengthened its efforts with the #LiveWellRPV program. This employee wellness program is designed to support employees’ overall health and well-being and offers a variety of resources, activities, and tools to help employees thrive personally and professionally. Examples include a mobile health clinic provided by Kaiser, workshops or educational materials to promote 3 healthier habits, and organized events to encourage physical activity such as walking groups and lunchtime yoga sessions led by Staff. • On July 1, 2025, as part of the City’s ongoing commitment to supporting employee health and well-being, the City implemented a Wellness Reimbursement Program. This program provides employees with reimbursement of up to $300 per fiscal year to encourage participation in health and wellness-related activities, as well as the purchase of equipment that promotes personal health and overall well-being. • The City engaged in good faith negotiations with RPVEA and AFSCME for a successor MOU for Fiscal Years 2025-2028 that support long-term workforce stability and employee satisfaction. The City adopted a successor MOU with RPVEA in June 2025 that included competitive benefits intended to improve retention efforts. Furthermore, the City remained in negotiations with AFSCME throughout 2025, but executed a successor MOU recently at the April 7, 2026 City Council meeting. This will also be noted in next year’s report. CONCLUSION: Staff recommend receiving and filing this 2025 report on city vacancies, recruitment 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 2025 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 CITY OF RANCHO PALOS VERDES ADMINISTRATIVE INSTRUCTION MANUAL NUMBER 2-21 SUBJECT: RECRUITMENT INCENTIVE PROGRAM I. BACKGROUND/ PURPOSE The City shall make available to appointing authorities a Recruitment Incentive Program to incentivize and secure highly qualified employees for positions that the City has determined to be difficult to recruit in accordance with the guidelines established herein and when funding is available. II. DEFINITIONS a. APPOINTING AUTHORITIES: City Manager and/or designated Subject Matter Expert (SME) assigned to the recruitment , inclusive of Human Resources b. HARD-TO-RECRUIT POSITIONS: Classification must have demonstratable recruitment difficulty, which includes limited applicant pool, recruitment difficulty, or a continued high vacancy rate. Job requirements such as technical expertise, certifications, licensing and/or advanced educational requirements may limit the pool of qualified applicants. If two or more consecutive recruitments have been done, resulting in a limited applicant pool, the recruitment would be defined as difficult to re cruit. A continued high vacancy rate is demonstrated through actively recruited positions that continue to remain vacant. III. PROGRAM APPLICABILITY Appointing authorities may request authorization to apply the Recruitment Incentive Program to assist in filling difficult-to-recruit positions in their department. To apply, said position/classification must have demonstratable recruitment difficulty. Recruitment difficulty may be based on any one of the following: limited applicant pool, recruitment difficulty, and/or a continued high vacancy rate. The Human Resources Manager shall have the authority to determine the applicability to each requested position/classification and shall submit a request to the City Manager for consideration. The City Manager or his/her designee shall approve, deny, or amend the request based on the information provided. Prior to advertising a position utilizing the Recruitment B-1 Incentive Program, the City Manager shall notify the City Council in writing by explaining the reason for utilizing the program and how it will be implemented and funded. IV. PROGRAM A full-time employee hired into a position/classification certified for participation in the program shall be eligible to receive a recruitment incentive in an amount set by the City Manager and/or designee based on available funding, as described below: a. The full-time incumbent will be eligible for 25% of the incentive on their first paycheck. b. After successfully passing the probationary period, the full-time incumbent will be eligible for a second 25% payment. c. After completing 24 months of employment, the full-time incumbent will be eligible for the final 50% incentive payment. Each incentive payment shall be considered taxable income and subject to withholdings. V. JOB POSTING Prior to the posting of vacant positions, the Recruitment Incentive Program description must be included in the job posting advising applicants they must meet the eligibility requirements. VI. LIMITATIONS AND EXCLUSIONS No incentive will be paid for any candidate whose recruitment does not meet program applicability and has not had applicability certified. No incentive will be paid to any candidate whose name was placed on the eligible list for full-time positions in the classification prior to the determination of program applicability. Similarly, no incentive will be paid to any candidate whose name was placed on the eligible list for full-time positions or forwarded to the department for part-time positions, if applicability was not previously certified by the City Manager and/or designee. In the event the employee is unable or unwilling to work, is taken off work, or is on an approved leave of absence, any payments owed shall be delayed the same amount of time as the employee remains off work. In the event the employee resigns, is terminated from employment, or fails to successfully complete the probationary period with a “meets” or greater overall B-2 rating, the employee will not be eligible to receive any outstanding payments owed. The Recruitment Incentive Program will remain in effect while funds are available. B-3