Quarterly Report: 2010, October - December (Q2), Chignik

Community:
Chignik 
Staff:
Barbara Higgins  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Chignik 
Population:
81  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/22/2010 
Community Sanitation Overview:
Water is supplied by Indian Creek, which has a dam and a reservoir. Water is treated and piped into most of the homes and the school, and a well is available for back-up water supply. A second system serves the Trident fish processor, the airport area, and a few homes, and utilizes a groundwater well as a source. A project now underway will eliminate the dual system by extending a new mainline from a new storage tank at one end of town to the airport at the other end of town. Improvements to the treatment plant will include new filters and upgraded valving and chemical feed equipment. Piped sewage for most of the community is collected in three group systems into community septic tanks and wastewater is discharged via ocean outfall lines. Approximately 45 homes are served, and the remaining few homes use individual septic tanks. An improvement project now underway will replace the multiple system structure with a unified sewer system for the entire community. A new permitted landfill and access road were recently completed. A study is needed to examine the feasibility of hydroelectric generation at Indian Lake. Electricity is provided by city owned Chignik Electric. 
RUBA Status & Activities This Qtr:
The City of Chignik has successfully conducted and certified the city elections. RUBA sponsored QuickBooks training in Dillingham and was attended by the city clerk. An adequate fuel supply for winter has been purchased. RUBA provided to the city clerk the Fall Sea Storm Document for emergency preparedness for the city. RUBA has assisted staff with the CDBG Resolution and providing contact information for the emergency preparedness division.  
RUBA Activities for the Coming Qtr:
RUBA Staff will continue to work with the community to help maintain their compliance with the RUBA assessment. RUBA staff will schedule an on site visit this next quarter to update assessment essential indicators as well organizational, operation and personnel sustainable indicators.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
21 of 27
Total Score:
48 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.
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
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes 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 FY 2010 water/sewer budget is balanced and realistic with respect to projected revenue and expenditures. The November 2009 water/sewer monthly financial report lists year to date revenues are less than expenditures by $892-13. The city advises this is due to 2 pump failures which where replaced and two other pumps had to be repaired. This has been due to continuous flooding due to inclement weather. The administrator provides monthly financial reports at city council meetings and utilizes QuickBooks accounting software as well as spreadsheets for bookkeeping. The utility is current on electric bills. City fuel supplies are sufficient for winter usage.

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
The City uses QuickBooks Pro 2007 for all accounting functions. The Council has adopted a water wastewater collection policy for the community and is reducing overdue customer debt and disconnecting the water service for non-payment. The City's water/sewer ordinance includes collections procedures. Revenues through November 2009 remained consistant indicating enforcement of the collection policy. Staff bills customers consistently and enforces collections by issuing disconnection notices to customers with past due balances.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes 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
Staff maintains an accurate payroll processing system based on QuickBooks accounting software. On 01/04/10, the Internal Revenue Taxpayer Advocate Service deemed the city is compliant with federal tax obligations. Staff is waiting the reply. On September 17, 2009 the Alaska Department of Labor confirmed the city is meeting Alaska ESC tax obligations for the quarter ending September 30, 2009.

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.
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.
Yes 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 City currently has workers' compensation insurance coverage provided by the Alaska Municipal League Joint Insurance Association, from 7/1/2009 to 7/1/2010. There are job descriptions in place for the City's employees and descriptions were provided for the City positions. Performance evaluations have not been established or put into place by the City staff, however, at the Mayor's request, a sample evaluation was provided by RUBA. The City has adopted a personnel policy for the city that was revised by the council on June 15, 1995. As of August 23, 2007, the City's personnel policy is generally adequate but staff agrees the policy should be updated to include an evaluation process. New hires receive a 90-day probation period, then the Council performs a verbal evaluation to determine whether the probationary employee should be retained permanently or dismissed. The decision is reflected in the minutes. RUBA staff can assist with updated personnel policies and job descriptions.

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
No 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, meets regularly, and actively enforces utility policy. The City manages the water/sewer 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.
Yes 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.
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".
No 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
The City has three operators with certifications for water treatment Operator In Training (OIT) and water distribution OIT. The Bristol Bay Area Health Corporation (BBAHC) provides training money and encourages operators to continue professional growth. BBAHC sends a remote maintenance worker (RMW) periodically to provide local training and support. City operators are taking part in AML/JIA's Loss Control Incentive Program, which brings operators together via teleconference each month for a safety meeting. Inventory list are all inclusive and should differentiate which parts are inventory and those parts that are critical. Currently, the community is listed on the CHIGNIK BAY WATER SYSTEM # 1 / AK2260228 (CWS/658) is on the SNC list for Failure to monitor for stage 1 and SWTR . Last violation for both rules was September 2009. Environmental Program Specialist Comments were as of November 9, 2009