Quarterly Report: 2012, October - December (Q2), Manokotak

Community:
Manokotak 
Staff:
Robert Madeson  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Manokotak 
Population:
431  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
1/31/2012 
Community Sanitation Overview:
The City operates two water/sewer systems in Manokotak, one at the village site and another at the Manokotak Heights area. Water is derived from two wells, is treated and stored in a 150,000-gallon water storage tank. A piped water and sewer system, constructed in 1972, serves roughly 68 households and the school with complete plumbing. Approximately two homes and a duplex have individual wells. Manokotak Heights, located four miles to the south, is served by a city-operated well and treatment system; water shortages have occurred. New HUD housing units were built in 2000 and roughly six additional units were completed in recent months. The school, located at the Heights, operates its own water and sewer system serving the school and one teacher housing unit. A feasibility study to examine water, sewer and landfill improvements was completed in late 2004. A water/sewer system renovation project is in the design stage with project management provided by Village Safe Water. 
RUBA Status & Activities This Qtr:
RUBA staff is assisting The Utilities Manager for Manokotak in doing a new utility rate study. RUBA staff is assisting the utilities manager and water sewer operators in collecting the necessary data and assisting the water sewer operators to develop a budget on replacing equipment for the FY 2012. RUBA staff and RUBA QuickBooks contractors continue to provide assistance in QuickBooks. RUBA staff has provided assistance to Jenny Carroll who is assisting Manokotak in grant applications. 
RUBA Activities for the Coming Qtr:
RUBA staff will work closely with city officials; and will continue providing assistance upon request.
Scores:
 
Essential Indicators:
23 of 26
Sustainable Indicators:
20 of 27
Total Score:
43 of 53

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
Yes Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
No The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
No YTD revenues are at a level equal to or above those budgeted.
No YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The utility is current in their billing. Collection rate is at 90% an improvement of 5% from the previous quarter. The Utility Manager maintains a spreadsheet of past due accounts. Collection letters are sent to customers with delinquent accounts. Cornerstone Credit Services is used as a collection agency for delinquent accounts. The City of Manokotak purchases fuel from the Manokotak Natives Limited. The utility is current on paying their wastewater/ water electric bills. Current Revenue exceeds expenditures 175.12.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
Yes Monthly bank reconciliations have been completed for all utility accounts.
Yes The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
Currently the Utilities Manager sends out collection letters and uses Cornerstone Credit Services as their collection agency. Customer bills are sent out at the beginning of the month. A excel ledgers is maintained on all customer accounts where payments and debits are entered. QuickBooks is used to maintain payroll taxes. Manokotak continues to have problems in submitting payroll taxes.

Tax Problems

Essential Indicators
Answer Question
No The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No The utility is current on making tax deposits.
N/A If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.
Tax Problems Comments
Staff utilizes QuickBooks accounting software to process payroll. Staff utilizes QuickBooks accounting software to process payroll. On December 6, 2011 the Alaska Department of Labor (DOL) reported compliance with Alaska ESC tax obligations for the quarter ending September, 2011. On December 23 the Tax Pay Advocate deemed Manokotak non-compliant. For the quarter ending June 2011 $523.00 is due and for the quarter ending September 2011 $607.88 dollars is due. Manokotak has no recorded liens at this time.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
Yes The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
No The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The Division of Worker's Compensation website on December 23, 2011 indicated policy #168 for the city is active. The city's personnel policy includes an evaluation process and a written hiring process. Job descriptions are on file. The city budgets for and provides training opportunities to staff.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
Yes The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The city council serves as the utility board and meets regularly. Utility Billing is now done on a consistent monthly basis. The city council is using a collection agency to collect delinquent accounts. The city manages the water/wastewater system following a utility ordinance on file with the Regulatory Commission of Alaska. The ordinance includes a comprehensive collection policy. Staff, including the water operator, are trained, certified, and participate in training opportunities. City staffing has been very stable. The city maintains an organizational chart. The city council meets as required.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes The manager receives a monthly O&M report from the utility operator and routinely "spot checks" the facilities to see that the maintenance items are being completed.
No The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
Water operator staff is trained and utilizes a preventative maintenance plan. Water operator staff maintains a comprehensive inventory control and critical spare parts list. RUBA recommends regular safety meetings. The utility is not listed on the Significant Non-Complier (SNC) list.