Quarterly Report: 2014, October - December (Q2), Anchor Point

Community:
Anchor Point 
Staff:
Glen Hamburg  
DCRA Regional Office:
Anchorage 
Gov't Type:
Water Operator 
Borough:
Kenai Peninsula Borough 
Agreement?
Yes 
Agreement Date:
6/15/2006 
Entity:
Anchor Point Safewater Corporation 
Population:
1767 (2012 Alaska Department of Labor Estimate) 
Assessment Status:
Assessment Completed 
Assessment Date:
9/15/2006 
Exp Date:
6/15/2008 
Last Updated:
12/23/2013 
Community Sanitation Overview:
Anchor Point is located in the Kenai Peninsula Borough at mile 156 of the Sterling Highway. Its sanitation utilities are managed by the Anchor Point Safewater Corporation, a non-profit corporation formed under Title 10 of state statute to pursue the development of a safe water system. Most residents of the community have individual wells, wastewater tanks, and complete indoor plumbing. A new well, water treatment plant, and water distribution mains were installed in an area serving five homes. An expansion of the piped water system to the school, homes and businesses along the Sterling Highway is underway. The school well has been shown to contain lead and some area wells are contaminated with benzene. The Borough Refuse Transfer Facility is located nearby at Mile 157 of the Sterling Highway. 
RUBA Status & Activities This Qtr:
New RUBA staff was assigned to Anchor Point on December 2, 2013. Since then, RUBA staff has communicated with the community’s contracted accountant at Aurora Taxes and Accounting about updating Anchor Point Safewater Corporation’s utility management assessment, which was last conducted in 2006. The accountant was going to check with the corporation to determine the possibility of an update. Also this quarter, RUBA staff requested financial reports and federal tax authorization, verified employment security tax payments, and confirmed standing with the State’s Division of Corporations, workers’ compensation insurance coverage, and operator certification. 
RUBA Activities for the Coming Qtr:
RUBA staff will contact officers of the Anchor Point Safewater Corporation to schedule a possible utility management assessment, and will continue to offer any advice and assistance the utility may need.
Scores:
 
Essential Indicators:
15 of 27
Sustainable Indicators:
3 of 27
Total Score:
18 of 54

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.
No Monthly financial reports are prepared and submitted to the policy making board.
No 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.
No 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.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
RUBA staff has not received the requested copies of recent financial reports or meeting minutes from the community and is therefore unable to determine wither finances are on track or whether manager’s reports are given. The utility has not provided evidence that it is current in paying its own electric bills, but reports to have adequate fuel supply.

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
No A chart of accounts is used that identifies categories in a reasonable, usable manner.
No Monthly bank reconciliations have been completed for all utility accounts.
No 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
Aurora Taxes and Accounting has been contracted to handle all of Anchor Point Safewater Corporation’s accounting processes. The contractor utilizes QuickBooks software. The utility adheres to a collection policy adopted by the corporation’s board and makes sure all customers understand the policy. No information supporting the sustainable indicators of this section has been provided to RUBA staff.

Tax Problems

Essential Indicators
Answer Question
Yes 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.
Yes 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
The utility’s contractor provided signed authorization to RUBA staff to verify its federal tax filings and deposits, though that authorization came too late to submit to the IRS taxpayer advocate’s and receive information in time for this report. Relevant indicators have been marked ‘No’ until that information can be received. However, the State’s Department of Labor and Workforce development confirmed on December 17, 2013 that the non-profit corporation is current in its employment security (ESC) tax filings and deposits. The corporation is not listed on the September-October 2013 Lien Watch report.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No 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.
No The utility has an adequate written hiring process.
No 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.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
RUBA staff verified on December 23, 2013 that the utility has a valid workers’ compensation insurance policy through Alaska National Insurance Company. The utility staff has completed and published a personnel policy for the utility, but no other information about the utility's personnel system has been provided to RUBA 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.
No The policy making body is active in policy making of the utility.
No The policy making body enforces utility policy.
No The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
No The utility has an adequately trained operator or operators.
No The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
No The utility has adopted an organizational chart that reflects the current structure.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
Creation filing documents for Anchor Point Safewater Corporation define ownership. The president of the corporation acts as a manager for the utility. The corporation's board members oversees the operation of the utility and have hired Aurora Taxes and Accounting staff to manage the books. The Department of Environmental Conservation recognizes two operators in the community, but it is not clear that those two operators work for this particular utility. RUBA staff has no current information about the activities of the corporation's board, its meetings practices, organizational charts, or policy enforcement.

Operation of Utility

Essential Indicators
Answer Question
No The utility operator(s) are actively working towards necessary certification.
No The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
No 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.
No Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
No The utility is operating at the level of service that was proposed.
No The operator provides status reports to the manager on a routine basis.
No The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
For this section, RUBA staff has only been able to verify that the utility is not on the October 2013 Significant Non-Complier (SNC) list. Current information and supporting documentation for all other indicators has not been made available or cross-referenced; these indicators have been marked ‘No’ until information is received.