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FY 2016-17 Council Goal: Infrastructure
From the City Manager's budget message:
Well-maintained city streets, roads, parks, and recreation centers help protect property values and maintain Roseville’s quality of life. It is fiscally responsible to maintain our streets and roads and fix problems now, so they don’t deteriorate and become more costly to fix in the future. In addition to roads and facilities, the focus on infrastructure also includes utilities infrastructure, workforce infrastructure, and technology infrastructure.
Capital Improvement Project (CIP) Rehabilitation
Facility Infrastructure—After several years of deferring maintenance on City-owned buildings and recreation facilities, the needs are becoming more critical and will be a priority when new expenses are considered. The City’s CIP Rehab Fund should be funded annually at $5.5 million to meet the demand, but the City can only afford to fund it at $1 million a year. The City is evaluating strategies to increase revenues to fund this shortfall, and future budgets will need to be mindful of this obligation.
Technology Infrastructure—The City of Roseville has seen a dramatic increase in the use of innovative technology to enhance city operations and services. Business changes continue to merge with digital technology reshaping the way the City operates and interacts. Roseville residents, businesses, and other key stakeholders’ expectations for efficiency, transparency, and round-the-clock availability continue to rise.
To meet this growing need for technology, the City must modernize key business functions. With many of our systems reaching end of life, continued upgrades to our infrastructure will be required to support the needs of the City and its customers. The following major technology projects will be an important focus for this next fiscal year.
Examples of citywide business system projects:
- Public safety radio system replacement
- Citywide data center move to 316 Vernon Street
- Financial and human resources information system replacement
- Enterprise asset management (phase 3)
- Content management system replacement for City website
Examples of departmental business system projects:
- Utility billing system replacement
- Advanced metering infrastructure (AMI)
- Parks & Recreation registration software
- Permitting system automation (Phase 2)
In addition to the investment in our technology systems, the City collects, processes, and stores a great deal of confidential information on computers and transmits that data securely across private and public (cloud) networks. Last year, the Information Technology (IT) Department managed over $208 million dollars in electronic business transactions. These transactions included utility billing and collections, event registration, automated clearing house (ACH), interactive voice response (IVR), Internet banking, and third-party bill processing.
Additionally, the City receives more than 19.8 million emails a year. Of those, only 10.1 million (51 percent) are valid emails— the rest contain malware or are spam or junk mail. To ensure that the City stays protected, the IT Department has layers of protections in place to monitor and defend against these faulty emails.
To protect the data we manage, the City must maintain a high degree of vigilance to increasing information security threats. The City computing network continues to experience an increase in both volume and sophistication of cyber-attacks, with 36 million threat attempts made to the City network last year. Ongoing attention is required to protect sensitive business and personal information, as well as to safeguard national security. The City will continue to focus on protecting its technology infrastructure and personal identification information to its fullest extent.
Aging infrastructure is a chronic issue plaguing the United States and most of the developed world. The funding to pay for replacing the infrastructure our country and economy depend upon simply is not there at a national or statewide level. Roseville’s utility infrastructure—power plants, treatment plants, power lines, pipelines, pump stations, substations and the like—are valued well into the multi-billions of dollars. While new growth pays for additional utility capacity and service extensions, the ongoing cost of proactive infrastructure maintenance, renewal, and replacement factors heavily into our bi-annual utility rate analyses. The City sets high standards and invests in high-quality materials then uses asset management practices to ensure our infrastructure is efficiently cared for and maintained. Roseville’s utilities are among the few that have fully funded their infrastructure-rehabilitation program now and into the future. This means Roseville utility customers will be able to count on our utility infrastructure for many generations to come.
Maintenance Approach—Maintaining the integrity of the 456 centerline miles of roadway in the City has a significant effect on quality of life and ease of doing business. The City has a carefully planned strategy for maintaining its roadways, which helps significantly with controlling expenses since cost differences between maintaining roadways and rehabilitating deteriorated roadways are quite stark: While it costs the City 25 cents per square foot to maintain a roadway, the costs increases to $2 per square foot to repair a deteriorated road.
The City is also piloting the use of roller-compacted concrete, which will be tested at several locations in FY2016-17 where existing asphalt roadways are failing. It offers many benefits, including maintenance every 20-25 years, versus every 7-10 years for asphalt; lower cost, which helps the City close the current gas tax funding gap, while allowing the City to repair more Roseville streets; and cooler roads during the day, and brighter roads at night, due to its lighter color.
Funding Challenges—As stated earlier, funding challenges for roadway infrastructure have caused the City to fall behind on its maintenance schedule for streets. Currently, roadway maintenance is about $50 million underfunded. Gas tax rates, accrued on a per-gallon basis, were developed without an adjustment for inflation, minimizing their purchasing power with every year that passes. Gas tax revenues have fallen also due to more fuel- efficient vehicles being on the road, reducing the demand for gasoline.
Funding Outlook—The City budgeted $15 million in FY2015-16 for roadway maintenance, which addresses 34 miles of roadway. For FY2016-17, the City is budgeting another $7.25 million for roadway resurfacing. Funding levels for FY2017-18 and beyond are expected to return to the normal $4 million to $5 million level. FY2015-16 and FY2016-17 are an anomaly and have unusually high dollar amounts due to a number of factors described below:
- The arterial resurfacing project is the combination of three years’ worth of arterial resurfacing funds all rolled into one project – FY2013-14, FY2014-15, and FY2015-16.
- In FY2013-14, due to some staffing shortages and regulatory changes regarding handicap ramp installations/upgrades, no resurfacing was completed. That allowed the FY2013-14 funding to roll forward into future years.
- Staff is combining the FY2014-15 Federal Regional Surface Transportation Program apportionment with a future apportionment being advanced from FY2017- 18.
- This summer’s storm-drain work has been planned for several years. Over that time, the City has accumulated over $2 million dollars in the storm-drain account for repair and upgrades.
- The City obtained a Federal Congestion Mitigation and Air Quality (CMAQ) grant to help fund handicap-ramp improvements.
- The Gas Tax fund received a large repayment from a Redevelopment Agency loan.
- Some resurfacing money that was being held in reserve pending the outcome of a State Gas Tax audit was released for resurfacing after the audit’s successful completion.
- The Alternative Transportation Division was able to allocate $5.4 million for street maintenance purposes via current and past Transportation Development Act funding years.
Examples of roadway infrastructure projects:
Two aging bridges will be replaced in FY2016-17. Both the Oakridge Bridge over Linda Creek and the Industrial Bridge of Pleasant Grove Creek were deemed insufficient and in need of replacement. The majority of the funding to replace these bridges was provided by the federal government.
The federal government is also providing part of the funding to straighten the “S” curve on Roseville Road to the south of Cirby Way. This “S” curve has seen a large number of accidents and this realignment will result in a safer roadway.
Staff Expansion—Growth in Roseville’s economy, development, and population means an expansion of services. Total authorized regular full-time equivalent positions in the annual city budget for FY2016-17 is 1,146. Since the City can’t afford to provide all the services it would like to or at the levels desired, we must remain strategic on expansion of core services and add staff strategically. To this end, in FY2016-17, eight positions are being added to the General Fund, including a police officer and code-enforcement officer, and other support services positions. Of the eight General Fund positions recommended, four had little or neutral impact to the bottom line as staff reduced other expenses to offset the increased salary cost. The General Fund also had four positions that transferred to other funds, such as stormwater and a reduction of 1.5 positions that were reorganizations/reclassifications making the net new position number for General Fund 2.5. The budget also recommends four new positions in the utilities. Citywide, there is a net of 9.7 new positions when all reclassifications and transfers are taken into account.
Succession Planning—In 2013, approximately 40 percent of the workforce was eligible to retire, and since then the City has seen 83 retirements. As a result, the City currently has 31 percent of its workforce eligible to retire over
the next three years. In response, the City has focused on succession planning to ensure continuity of service delivery and streamlining its recruitment process to be more flexible and responsive. The recruitment process has been evolving to leverage new channels of recruiting through outreach and social media in order to reach a multi-generational workforce.
Creating a Welcoming, Engaged Culture—As our city grows, our organizational culture is also evolving. We must adapt and change to provide the services and meet the changing demands that this growth brings.
Three cross-departmental committees are coordinating their work to address aspects of our internal culture. In 2014, the City created an Organizational Culture & Leadership (OC&L) Committee with representatives from all departments to lead an assessment of the City’s organizational culture. Three focus areas emerged from surveys of employees: internal communications, valuing employees, and developing meaningful processes and policies. The OC&L Committee is working on customer- service and core-competencies initiatives in FY2016-17. In addition, both the OC&L research as well as the Public Affairs & Communications research identified internal communications as a top priority. With additional funding in FY2015-16, the Communications Team launched an award-winning internal communications effort, including a website called “The Hub” and a monthly printed newsletter to reach field staff who don’t have regular access to computers. And to support the changing culture and promote a respectful, inclusive work environment, the City’s Inclusion Committee coordinated Inclusion and Diversity training for all supervisors and managers in FY2015-16; and in FY2016-17, the City will continue the training for the rest of the workforce.