____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.c
Meeting Date: May 4, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Human Resources
Prepared by: Marissa Sanchez, Human Resources
Director
City Manager Approval: ______________
TOPIC: REPORTING ON VACANT POSITIONS
SUBJECT: COMPLIANCE WITH ASSEMBLY BILL 2561 (2023-2024): REPORTING ON VACANCY
RATES AND ACTIONS TAKEN TO ADDRESS VACANCIES IN CITY DEPARTMENTS RECOMMENDATION:
Staff recommends that the City Council receive the staff report providing an update on the City of San Rafael’s vacancy rates in compliance with Assembly Bill (AB) 2561.
BACKGROUND:
Assembly Bill (AB) No. 2561, Chapter 409, was enacted during the 2023-2024 California legislative session and added Section 3502.3 to the Government Code. It requires local public agencies to report on vacant positions and the corresponding vacancy rates to increase transparency and accountability in public sector employment. The purpose of this staff report is to provide an update on the City of San Rafael’s vacancy rates in accordance with the requirements outlined in AB 2561.
AB 2561 requires local public agencies to track and report vacancy rates within a specific timeframe, ensuring that vacancy information is made publicly accessible. The intent of AB 2561 is to provide oversight, improve recruitment strategies, and address the potential impacts of vacant positions on public services.
This report outlines the City’s current vacancy rates, recruitment and retention efforts, and ongoing strategies to improve staffing stability and service delivery.
Key Provisions of AB 2561
• Vacancy Reporting Requirement: Beginning January 1, 2025, local public agencies are required to report the number of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. This reporting obligation requires the City to track job vacancies and present information such as the total number of vacancies, the positions with the longest vacancy durations, and the City’s recruitment and retention efforts. • Transparency: AB 2561 aims to enhance transparency in local government hiring practices by requiring public agencies to post vacancy information on their official website and other accessible platforms.
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• Reporting Frequency: Agencies are expected to report vacancy data at a regular cadence (e.g. quarterly or annually), depending on the local agency’s existing reporting procedures. • Impact of Vacancies on Public Services: AB 2561 emphasizes the need to assess and report how vacancies impact the delivery of public services. If a position remains vacant for an extended period, agencies are required to report the potential consequences, including any strain on remaining staff or disruptions in service provision.
Vacancies
Position vacancies are created for several reasons, including when newly budgeted positions are approved, when there is internal movement such as a promotion or transfer, or when an employee leaves the organization due to retirement, voluntary resignation, or involuntary termination.
On January 21, 2026, the City implemented a temporary hiring freeze as a fiscal management measure during the 2025–26 fiscal year. The hiring freeze suspended recruitment and hiring for currently vacant positions across all funds, with limited exceptions for critical public safety roles, including sworn personnel, dispatchers, lifeguards, and certain non-general fund seasonal positions necessary to support essential health and safety services. Positions already in the recruitment process at the time the freeze was enacted were not impacted. As of this writing, the hiring freeze remains and will be re-evaluated as part of the FY 2026–27 budget development process. As a result, vacancy rates reflected in this report are influenced in part by this intentional pause in hiring, which was implemented to support the City’s short-term fiscal management goals.
When vacancies occur, it is a high priority for the Human Resources Department and the City's hiring managers to fill them to ensure continuity of services, maintain operational efficiency, minimize overtime, and minimize disruptions to departmental functions. Timely recruitment and hiring efforts help the City sustain its workforce, meet community needs, and uphold service standards while also providing opportunities for internal growth and external talent acquisition.
Although AB 2561 now requires staff to present annually on the status of vacancies and efforts to recruit and retain staff, it has always been a priority for departments to fill vacancies as soon as reasonably possible.
The vacancy rate is calculated by the number of vacancies divided by the number of positions. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, AB 2561 requires the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. As of March 31, 2026, the vacancy rate for each bargaining group was under 20%:
Table 1: Vacancy Rate by Bargaining Group as of March 31, 2026 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
This data reflects the City’s ongoing efforts and, in part, the temporary impacts of the City’s hiring freeze during the reporting period.
The City’s Recruitment and Retention Efforts
The City of San Rafael has implemented the following recruitment and retention efforts:
1. Public Posting of Vacancies: All vacant positions are regularly posted via the City’s official website, with detailed information about job responsibilities, required qualifications, and application instructions. Additionally, vacancy information is shared via social media platforms to reach a wider pool of applicants. The City has leveraged several recruitment tools to reach a wide group of potential applicants and has encouraged them to apply for vacant positions, including in person attendance at local and regional job fairs and community events. These recruitment efforts align with the City’s commitment to diversity, equity, and inclusion, while ensuring a highly qualified pool of candidates. These efforts are currently limited due to the hiring freeze and will resume fully upon its conclusion.
2. Internal Policy and Tool Updates: The City has implemented a new Hiring Practices Policy and Recruitment Toolkit to standardize and enhance recruitment practices across all departments.
The updated policy defines clear roles and responsibilities for hiring managers, department directors, Human Resources staff, and interview panelists, and provides step-by-step guidance from requisition through onboarding. The Recruitment Toolkit includes structured resources such as recruitment definitions, links to supporting documents for hiring managers, guidance on inclusive and gender-neutral language in job announcement, and information on using behavioral and situational interview question aligned with the City’s DEIB principles and “Together San Rafael” values, standardized recruitment timelines, reference check and offer checklists, and onboarding guidance to support successful new employee integration. These tools are intended to improve consistency, fairness, and efficiency in hiring while reducing bias in selection processes and strengthening the overall candidate experience.
3. Tracking Vacancies: The City’s Human Resources Department has developed a system to track vacancy rates and duration, ensuring timely reporting in compliance with AB 2561.
4. Internal Review: The City has conducted an ongoing internal review of positions that have remained vacant for extended periods and plans to implement it. This includes evaluating the impact of vacancies on City services and prioritizing the recruitment and filling of critical vacancies. During the hiring freeze, this review process has been essential for evaluating exemption requests and identifying operational priorities.
5. Recruitment Process Improvement: The City continues to enhance recruitment practices through the implementation of the Hiring Practices Policy and Recruitment Toolkit. These resources are intended to streamline hiring timelines, improve consistency across departments, and strengthen equitable hiring practices. Prior to the implementation of the hiring freeze, the City has been tracking key performance metrics, including time-to-fill, applicant pool diversity, number of qualified applicants per recruitment, and hiring manager satisfaction, to assess the effectiveness of these improvements. Training for hiring managers will be provided to support effective use of these tools, including best practices for reducing unconscious bias, conducting structured interviews, and improving reference check procedures. These metrics will continue to inform ongoing evaluation and refinement of recruitment practices moving forward.
Implications and Challenges
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While the City has made progress in addressing vacancies, several challenges remain:
• Retaining Top Talent: The City has taken a strategic approach to recruiting and filling previously vacant positions. As of March 31, 2026, the City’s average vacancy rate is 8%, the same percentage as of last year’s reporting from March 31, 2025. The priority continues to be retaining this talent and sustaining stable staffing levels into the future. • Budget Constraints: Funding for recruitment campaigns, and the costs associated with overtime or temporary staffing can present challenges. The City must balance filling vacancies with fiscal responsibility. The hiring freeze reflects proactive measures to manage budgetary constraints during the current fiscal year.
• External Labor Market Conditions: Competition for qualified candidates for certain classifications, such as public safety or specialized technical roles, has led to longer vacancies. Many government agencies are experiencing challenges in attracting interest in public service careers, highlighting an important opportunity to inspire and engage future talent. However, the City has committed to extended outreach via many communication channels to reach diverse talent. These challenges are further compounded in the short term by the hiring freeze, which limits the City’s ability to actively compete for talent in the labor market.
ANALYSIS:
To further enhance the City’s recruitment and vacancy management practices, staff are continuing to focus on the following:
1. Enhance Recruitment Efforts: Increase outreach and marketing for vacant positions by expanding the use of social media, community and professional networks, and specialized job boards to attract diverse candidates. This includes the use of professional recruiting platforms to support broader outreach, candidate identification, and engagement efforts.
2. Monitor Vacancy Impact: Regularly assess and report on how vacancies are affecting public services.
3. Review and Improve Hiring Processes: Streamline the recruitment process to reduce the time it takes to hire open positions to improve operational efficiency.
4. Provide Staff Support and Training: Train HR staff to better manage vacancy tracking, reporting, and addressing service gaps. This includes understanding how high job vacancies impact workers who are forced to handle heavier workloads can lead to burnout and increased turnover that further exacerbates staffing challenges.
The City’s updated Hiring Practices Policy and Recruitment Toolkit are key components of these efforts, providing standardized procedures, improving hiring consistency, and supporting equitable and efficient recruitment practices across all departments.
AB 2561 introduces important transparency and accountability measures for managing vacant positions in local government. The City of San Rafael is making significant strides in addressing the challenges posed by vacant positions. By enhancing recruitment efforts, focusing on critical vacancies, and streamlining processes, the City can maintain sufficient staffing levels to deliver high-quality public services.
FISCAL IMPACT:
There is no direct fiscal impact of this report; this report is for informational purposes.
RECOMMENDED ACTION:
City Council receive the staff report providing an update on the City of San Rafael’s vacancy rates in compliance with Assembly Bill (AB) 2561.
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ATTACHMENT:
1. Assembly Bill No.2561 Local Public Employees Vacant Positions Bill Text, including Government Code Section 3502.3