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Item No. 3.
| MEETING DATE: 06/02/2025 |
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| TO: | HONORABLE MAYOR/CHAIR AND COUNCILMEMBERS/DIRECTORS |
| FROM: | JIM SADRO, CITY MANAGER/EXECUTIVE DIRECTOR By: Gabriella Yap, Assistant City Manager |
| SUBJECT: | DULY NOTICED PUBLIC HEARING TO CONSIDER A POLICY AND REVIEW METRICS REGARDING ASSEMBLY BILL 2561 - JOB VACANCIES AND RECRUITMENT AND RETENTION EFFORTS
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RECOMMENDATION:
That the City Council:
A. Conduct a public hearing in accordance with Assembly Bill 2561 (AB 2561) to present information on the status of job vacancies, recruitment, and retention efforts within the City of La Habra; and,
B. Approve the City’s proposed policy for the "Public Hearing and Reporting on Vacancies, and Recruitment and Retention Efforts" in compliance with Government Code Section 3502.3.
DISCUSSION:
Over the past several years, many local government agencies across California have been dealing with high staff turnover and vacancy rates, along with significant recruitment challenges. If not addressed, these staffing issues can negatively affect service delivery and organizational responsiveness. AB 2561 was enacted by the State Legislature and signed into law by the Governor in an attempt to address these issues by mandating public transparency and data sharing regarding vacancies and recruitment efforts.
In response to this new law, staff in the City's Human Resources Department have worked with the City's legal counsel to develop a proposed AB 2561 Policy, which establishes formal procedures for annual reporting and hearings. This policy is designed to be in compliance with state law while promoting transparency and accountability in workforce planning.
In response to this new law, staff in the City's Human Resources Department have worked with the City's legal counsel to develop a proposed AB 2561 Policy, which establishes formal procedures for annual reporting and hearings. This policy is designed to be in compliance with state law while promoting transparency and accountability in workforce planning.
Policy Summary
The proposed policy includes the following key provisions:- Annual Public Hearing Requirement: At least one public hearing must be held each fiscal year to report on vacancies, recruitment, and retention.
- Employee Organization Participation: Recognized bargaining units may make presentations and request additional data when vacancy rates meet or exceed 20%.
- High Vacancy Reporting Requirement: Where applicable, the City must present:
- Total vacancies in the bargaining unit
- Number of applicants
- Average time to hire
- Potential improvements to compensation or conditions
- Recruitment and Retention Review: The policy calls for identifying and addressing procedural barriers in the hiring process.
Summary of Vacancy and Recruitment Data
The Human Resources Department has prepared a workbook (attached) containing data on all vacancies since January 1, 2025, along with associated recruitment and retention information. The final tab of the workbook provides a snapshot of current vacancies as of May 21, 2025.
- Total Budgeted Full-Time Equivalent (FTE) Positions: 267
- Total Vacant Positions Citywide (as of May 21, 2025): 28
- Overall Vacancy Rate: 10.5%
Vacancy Rates by Bargaining Unit:
General Employees Unit:
- Authorized FTE’s: 40
- Vacant Positions: 2
- Vacancy Rate: 5.0%
- Authorized FTE’s: 45
- Vacant Positions: 1
- Vacancy Rate: 2.2%
- Authorized FTE’s: 70
- Vacant Positions: 4
- Vacancy Rate: 5.7%
- Authorized FTE’s: 31
- Vacant Positions: 6
- Vacancy Rate: 19.3%
- Authorized FTE’s: 19
- Vacant Positions: 1
- Vacancy Rate: 5.3%
Recruitment Metrics (Jan 1 – May 21):
- Total Applicants: 2421
- Average Applicants per Vacancy: 110
- Average Time to Hire: 55 days
Retention Trends:
- Annual Turnover Rate: 8.6%
- Exit Interviews Completed: 90%
- Career advancement
- Compensation concerns
- Work-life balance
Opportunities for Improvement:
- Streamlining the City's hiring process workflows
- Evaluating and adjusting compensation as necessary, subject to City Council approval
- Investing in employee training, development and promotional pathways
In order to comply with AB 2561, staff recommends that the City Council hold a public hearing on this matter and approve the proposed policy for the "Public Hearing and Reporting on Vacancies, and Recruitment and Retention Efforts" in compliance with Government Code Section 3502.3.
FISCAL IMPACT/SOURCE OF FUNDING:
There is no fiscal impact related to conducting a public hearing on this matter or adopting the proposed AB 2561 compliant policy. Any City Council approved adjustments to the City's staffing or hiring policies, practice or process that may be recommended as a result of any findings that come from this public hearing will be brought forward through the City’s annual budgeting process for subsequent City Council review and/or approval.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
This recommended action achieves the following element of the City of La Habra's FY2024-25 Goals and Objectives:
Goal 4: Recruitment, Selection and Training of Employees/Objective G: Monitor and ensure the City remains in compliance with changes in state and federal employment laws, regulations and Health and Safety requirements.
Goal 4: Recruitment, Selection and Training of Employees/Objective G: Monitor and ensure the City remains in compliance with changes in state and federal employment laws, regulations and Health and Safety requirements.