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HomeMy WebLinkAboutItem 6.1 Status Update on Vacancies in Compliance with Assembly Bill 2561 Agenda Item 6.1 STAFF REPORT CITY COUNCIL Page 1 of 3 DATE: May 19, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Status Update on Vacancies in Compliance with Assembly Bill 2561 Prepared by: Sarah Monnastes, Human Resources Director EXECUTIVE SUMMARY: The City Council will conduct a public hearing on position vacancies for 2025, in compliance with Assembly Bill 2561 – Local public employees; vacant positions. STAFF RECOMMENDATION: Conduct the public hearing, deliberate, and by motion, direct Staff to continue recruitment and retention efforts. FINANCIAL IMPACT: None. DESCRIPTION: Background On September 22, 2024 Governor Newsom signed Assembly Bill (AB) 2561 into law, adding Government Code section 3502.3 and establishing new workforce reporting requirements for local public agencies effective January 1, 2025. Under AB 2561, local agencies must hold at least one public hearing each fiscal year prior to adopting an annual or multi-year budget to report on job vacancies, recruitment and retention efforts, and any policies or procedures that may hinder hiring. Recognized employee organizations must also be provided an opportunity to present during the hearing. Pursuant to Government Code § 3502.3, this presentation requirement does not apply to the City of Dublin, as City employees are not represented by employee organizations. The intent of AB 2561 is to promote transparency regarding staffing vacancies and ensure 431 Page 2 of 3 governing bodies and the public are informed about workforce trends and their potential impacts on service delivery. Vacancy Overview In calendar year 2025, the City's average vacancy rate for regular full-time equivalent (FTE) positions was 6.92%, compared to an updated 2024 vacancy rate of 6.61%. Vacancies were primarily driven by retirements, recruitment challenges for highly technical positions, organizational growth, and normal employee turnover. The modest year-over-year increase reflects slightly higher turnover activity compared to 2024. The City's vacancy rate remains within a range considered manageable for comparable agencies. A total of 14 employees separated from City employment during the year, including four retirements. Vacancies also occurred due to internal promotions, external job opportunities, and personal circumstances such as relocation or career changes. While vacancies created temporary workload redistribution in certain departments, the City maintained core service levels throughout the reporting period. Table 1. Vacancy Summary* Metric 2024 (Updated) 2025 Average Approved FTE 107 109 Average Vacant FTE 7.08 7.58 Average Vacancy Rate 6.61% 6.92% Highest Monthly Vacancy Rate 9.72% 9.72% * A month-by-month vacancy breakdown is included in Attachment 1. Methodology Clarification During preparation of the 2025 vacancy analysis, Staff identified that the methodology used during for City’s April 15, 2024 public hearing did not fully account for vacancies created through internal workforce movement, such as lateral transfers and promotions that created subsequent vacancies. To ensure consistency and improve reporting accuracy, Staff recalculated the 2024 vacancy rate using the updated methodology. As a result, the previously reported 2024 vacancy rate of 5.05% was revised to 6.61%. The updated methodology, which now fully captures vacancies arising from internal workforce movement, will be applied consistently in all future annual reports. The updated and previously reported metrics are included in Attachment 1. Recruitment and Retention Activity The City experienced workforce movement throughout 2025 as positions were filled, employees advanced internally, and departments adjusted staffing to meet operational needs. During this period, the City:  Hired 17 new employees 432 Page 3 of 3  Promoted 15 employees internally  Completed six internal transfers  Reclassified one employee  Hired or rehired 181 temporary/seasonal employees The City continues to offer competitive salaries and benefits to attract and retain qualified employees. Recruitment challenges were primarily concentrated in specialized and highly technical classifications, specifically planners and engineers, which remains a trend across the region. To address these challenges, the City employed targeted outreach strategies including professional association postings and expanded use of online recruitment platforms. Review of Hiring Practices In accordance with AB 2561, Staff reviewed the City’s hiring policies, procedures, and recruitment practices to identify potential barriers to recruitment. Staff did not identify any policies or procedures that materially hinder hiring efforts. The City continues to maintain competitive compensation practices, flexible recruitment strategies, and efficient hiring processes designed to remain responsive to operational needs. Staff will continue to monitor workforce trends and identify opportunities to improve hiring efficiency as needed. Outlook for 2026 In 2026, the City anticipates continued workforce stability based on current staffing levels and organizational planning. Staff will proactively monitor potential retirements and succession needs, particularly in technical and senior-level classifications. Human Resources will evaluate compensation benchmarking data and continue refining recruitmen t strategies to ensure the City remains competitive in the regional labor market. Staff will return to the City Council for the next AB 2561-required public hearing prior to adoption of the Fiscal Year 2027-28 budget. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Month-by-Month Vacancy Breakdown 433 Attachment 1 2024 and 2025 Vacancy Summary 2024 (Originally Report) 2024 (Updated) 1 2025 Month & Year Approved FTE Number of Vacant FTE % of Vacancies Approved FTE Number of Vacant FTE % of Vacancies Approved FTE Number of Vacant FTE % of Vacancies January 106 6.5 6.13% 105 5.5 5.24% 108 10.5 9.72% February 106 4.5 4.25% 105 4.5 4.29% 108 7.5 6.94% March 106 3.5 3.30% 106 3.5 3.30% 108 6.5 6.02% April 106 3.5 3.30% 106 4.5 4.25% 108 7.5 6.50% May 106 4.5 4.25% 106 5.5 5.19% 108 6.5 6.02% June 106 4.5 4.25% 106 5.5 5.19% 108 8.5 7.87% July 108 5.5 5.09% 108 7.5 6.94% 110 8.5 7.73% August 108 6.5 6.02% 108 8.5 7.87% 110 7.5 6.82% September 108 4.5 4.17% 108 8.5 7.87% 110 4.5 4.09% October 108 6.5 6.02% 108 10.5 9.72% 110 8.5 7.73% November 108 7.5 6.94% 108 10.5 9.72% 110 7.5 6.82% December 108 7.5 6.94% 108 10.5 9.72% 110 7.5 6.82% Average 5.42 5.05% Average 7.08 6.61% Average 7.58 6.92% 1 Updated figures include vacancies that resulted from internal movement within the organization (i.e., internal promotions and lateral transfe rs). 434 AB 2561 Public Hearing May 19, 2026 435 Legal Background AB 2561 Assembly Bill 2561 Signed into law September 22, 2024 by Governor Newsom. Added Government Code Section 3502.3, effective January 1, 2025. MANDATE Annual Public Hearing Local agencies must hold at least one public hearing per fiscal year, prior to budget adoption, to report on vacancies, recruitment, and retention efforts. INTENT Transparency Goal Promote public transparency about staffing vacancies and their potential impact on service delivery. Governing bodies and the public must be informed. Note: The employee organization presentation requirement does not apply to the City of Dublin (employees are not represented by employee organizations). 436 2025 Vacancy Summary Avg Approved FTE 2024 107 ▼ 2025 109 Avg Vacant FTE 2024 7.08 ▼ 2025 7.58 Avg Vacancy Rate 2024 6.61% ▼ 2025 6.92% Peak Monthly Rate 2024 9.72% ▼ 2025 9.72% Context: The City's 6.92% average vacancy rate reflects a modest year-over-year increase from 2024. This rate remains within a range considered manageable for comparable agencies. Vacancies were primarily driven by retirements, recruitment challenges for technical positions, organizational growth, and normal employee turnover. * 2024 figures updated using revised methodology that fully captures vacancies from internal movement (promotions, lateral transfers). 437 Month-by-Month Vacancy Rate – 2025 vs. 2024 10 7 6 7 6 8 8 7 4 8 7 7 5 4 3 4 5 5 7 8 8 10 10 10 0 2 4 6 8 10 12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 Vacancy Rate 2024 Vacancy Rate (Updated) Vacancy rates calculated as a percentage of approved full-time equivalent (FTE) positions. 438 Workforce Movement in 2025 29% 14% 22% 21% 14% Retirements (4) External Promotion (2) Moved out of State (3) Personal Circumstances (3) Other (2) Separations – 14 Employees Total Recruitment Activity – 39 Employees Total NEW HIRES (17) INTERNAL PROMOTIONS (15) INTERNAL TRANSFERS (6) RECLASSIFICATIONS (1) 0 2 4 6 8 10 12 14 16 18 Additionally, 181 temporary/season employees were hired or rehired in 2025. 439 Recruitment & Retention Efforts Recruitment Challenges Specialized Positions Planners and engineers are regionally difficult in this labor market. Internal Movement Promotions and transfers create downstream vacancies requiring additional recruitments. Strategies Employed •Competitive salary and benefit packages •Flexible recruitment strategies tailored to each classification •Efficient hiring processes to minimize time-to-hire •No policies identified as hindering hiring 440 2026 Outlook & Next Steps 01 Workforce Stability The City anticipates continued workforce stability in 2026 based on current staffing levels and organizational planning.02 Succession Planning Staff will proactively monitor potential retirements and succession needs, particularly in technical and senior-level classifications. 03 Compensation Benchmarking Human Resources will evaluate compensation benchmarking data to ensure the City remains competitive in the regional labor market.04 Next AB 2561 Hearing Staff will return to City Council for the next required public hearing prior to adoption of the FY 2027-28 budget. 441 Staff Recommendation Conduct the public hearing, deliberate, and by motion direct Staff to continue recruitment and retention efforts. Any Questions? 442