TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Lizette Guerrero, Human Resources Director
DATE: April 8, 2026
SUBJECT: PUBLIC HEARING ON CITY VACANCIES AND
RECRUITMENT AND RETENTION EFFORTS (ASSEMBLY
BILL 2561/GOVERNMENT CODE SECTION 3502.3)
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND
Effective January 1, 2025, Government Code section 3502.3 requires the City to present information on the status of vacancies at the City and the City’s recruitment and retention efforts at a public hearing before the City Council at least once per fiscal year.
AB 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year. The bill was enacted into law and is codified as Government Code section 3502.3.
AB 2561 requires public agencies, including the City, to hold at least one (1) public hearing per fiscal year to discuss vacancies and recruitment and retention efforts. This report discusses the City’s legal obligations under the law.
Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
Analysis:
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 and 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 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 three (3) bargaining units at the City, City Employees Association (CEA), Fire Fighters Association (FFA), and Police Officers Association (POA). (Gov. Code § 3502.3(b)).
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)).
Procedures for the Public Hearing on City Vacancies and Recruitment and Retention Efforts:
The Procedures for the Public Hearing on City Vacancies and Recruitment and Retention Efforts (“Procedures”) establish protocol for the City’s public hearings on vacancies in order to ensure a fair, orderly and efficient hearing process.
The Procedures set forth specific requirements concerning matters such as the provision of notice to recognized employee organizations regarding the public hearing and their right to make a presentation at the hearing, the length and order of the City’s and the employee organizations’ presentations, and the standards of discourse during the public hearing.
DISCUSSION
Status of Vacancies:
During the reporting period, the City had 112 full-time budgeted positions in fiscal year 2024-2025 and 111 full-time budgeted positions in fiscal year 2025-2026. The full-time budgeted positions are within the departments of the City Manager’s Office, Community Development, Community Services (Recreation and Library), Finance, Fire, Human Resources, Parks & Public Works, and Police. In addition to the current 111 full-time budgeted positions within the City, one position is frozen within the Police Department due to ongoing vacancies and budgetary constraints.
In addition to the highly competitive job market, recent data shows City of San Marino employees are leaving their employment for the following reasons:
• Retirements
• Career growth opportunities
• Work-life balance
• Failed probationary period
• Frozen positions due to budgetary constraints
The following are summaries of the City’s vacancy rates from 2024-25 and 2025-26.
Full-Time Position Vacancy Rate
Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb YTD
2024-2025 8.0% 7.1% 6.3% 5.4% 5.4% 5.4% 5.4% 5.4% 5.4% 6.3% 5.4% 5.4% 5.90% 2025-2026 4.50% 3.6% 10.7% 8.9% 10.8% 11.7% 12.6% 10.8% 10.8% 9.0% 9.0% 10.7% 9.42% In 2025-26, the City had an average vacancy rate of 9.42%, an increase compared to 2024-25.
Full-Time Employees
Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb YTD
2024-2025 103 104 105 106 106 106 106 106 106 105 105 106 105 2025-2026 107 108 100 102 99 98 97 99 99 101 101 100 101 In 2025-26, the City had an average of 101 full-time employees, a decrease compared to 2024-25.
In reviewing the vacancies in the most recent reporting year as required by Government Code Section 3502.3, the City does not have additional reporting requirements as the vacancy rate did not meet or exceed the 20% vacancy rate of authorized full-time positions within a bargaining unit.
FY 2024-2025
Budgeted Positions 112
Bargaining
Unit
# of Budgeted
FTEs # of Vacancies % of Vacancies
CEA 46 7 15.2%
FFA 18 3 17%
POA 29 5 17.2%
Unrepresented 19 3 16%
FY 2025-2026
Budgeted Positions 111
Bargaining
Unit
# of Budgeted
FTEs # of Vacancies % of Vacancies
CEA 46 7 15.2%
FFA 18 3 17%
POA 28 5 17.9%
Unrepresented 19 3 16%
Recruitment and Retention Efforts:
In an effort to improve the City’s recruitment and retention efforts and focus on the issues mentioned above, the City Council identified several general philosophies of importance in dealing with labor related issues. The philosophies identified, in no particular order are:
1. Focus on Staff Retention – Explore methods, practices, and tools to reduce staff turnover, which would help the City avoid costs associated with continuous recruitment and training efforts, reduce the loss of institutional knowledge, and maintain continuity of operations.
2. High Quality Public Servants – Attract and maintain public servants of the highest caliber to match the service expectations of the community, including individuals with high levels of education, training, unique skills, and experience.
3. Cultivation of a Strong Workplace Culture – Provide opportunities and benefits to keep an enthusiastic and committed workforce who are proud to uphold the community’s values, traditions, and position for a strong future.
4. Equity in Benefits Across Work Groups – Ensuring that an equitable set of benefits are provided to employees to recognize collective value and positively influence organizational moral.
5. Maintain San Marino’s Strong Reputation in the Region – Build on San Marino’s status as one of the best places to work while recognizing the characteristics that set San Marino apart including civic/community connections, economic conditions, opportunities, and challenges.
6. Be Mindful of The Future – Safeguard the City’s long-term financial position related to debt obligations while staying competitive with the overall market.
With these philosophies in mind, the Human Resources Department, in collaboration with other City departments, revamped its recruitment efforts by:
1. Strengthening the City’s internal communication and collaboration efforts.
• The Human Resources Department regularly meets with
department hiring managers to understand their needs.
• The City encourages current employees to promote open positions where possible.
• The Human Resources Department monitors and identifies positions with low candidate attraction numbers and works with the department hiring managers to assist with outreach efforts.
For example, for several years, the City has struggled to retain and attract Public Safety personnel and Police Dispatchers. In an effort to fill vacancies, the Police Department is targeting its outreach by scouting prospective candidates at various police academies and is encouraging department personnel to
recommend prospective candidates.
2. Streamlining the Recruitment Process.
• Department hiring managers use an applicant tracking system to manage candidates. As a result, this has made the City’s hiring process more efficient.
• The Human Resources Department standardized the hiring process for each City department. This includes structuring interviews, establishing a standardized scoring system, providing training for raters on the City’s standardized process, and utilizing a standardized application platform for all city departments.
Standardizing the hiring process provides transparency to candidates, enhancing the candidates’ experience.
3. Enhancing the City’s outreach.
• The Human Resources Department and the City Manager’s Office staff are working together to showcase its job posting by creating recruitment brochures and advertising on social media platforms such as LinkedIn.
• The City has expanded its outreach efforts by leveraging professional networks, personalizing the job announcements, and promoting open positions at public events, to name a few.
Overall, standardizing the hiring process is important as it ensures fairness and consistency when evaluating candidates as it allows for better comparisons between candidates by using a structured process, it reduces bias, and improves efficiency.
FISCAL IMPACT & PROCUREMENT REVIEW
There is no direct fiscal impact associated with conducting the public hearing required under Government Code section 3205.3. other than the administrative staff time it takes to comply with these new requirements.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council to receive and file the report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file this year’s report as required by Government Code Section 3502.3.”
ATTACHMENTS
1. Resolution No. R-25-07