Quarterly Report: 2011, July - September (Q1), Shageluk

Community:
Shageluk 
Staff:
Fred Broerman  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Shageluk 
Population:
118  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/2/2011 
Community Sanitation Overview:
Residents haul treated well water and dispose of honey buckets in pit privies or bunkers. Residents are dependent upon the washeteria for bathing, laundry, and water, since no homes are fully plumbed. HUD houses constructed in 1991 use pit privies. The city washeteria/water treatment plant provides water to the city office building, post office and clinic. The school is connected to the sewer lines. A sanitation master plan has been completed and funds are needed to proceed with the design and engineering of a community system. 
RUBA Status & Activities This Qtr:
The City of Shageluk (SHX) has not met all essential indicators for the third quarter of 2010. On September 23, 2010 Bethel RUBA staff emailed an information request for documents needed to update their RUBA Assessment. At the time of this writing the city has not provided the necessary documents for essential indicator compliance. In mid August SHX's long time administrator resigned and in early October of 2010, after less than two months on the job, the new administrator also resigned. In late November of 2010, a city clerk and administrator were hired. The last monthly financial report the city's administrative staff submitted to the Bethel regional office was for month ending June 2010. Minutes from city council meetings have not been submitted to Bethel RUBA office for over a year. On November 19, 2010 AVEC indicated SHX's electric accounts were all current. The city administrator called the Bethel RUBA office on September 30, 2010 and indicated SHX had received enough fuel for the winter on August 1, 2010. Payment of federal payroll taxes could not be verified because the city has not completed and returned to Bethel RUBA office a federal tax release form sent to them on September 23, 2010. SHX's worker's compensation coverage is good through July 1, 2011. The city is not on the Environmental Protection Agency's Significant Non-Compliant List dated July 2010.  
RUBA Activities for the Coming Qtr:
Bethel RUBA staff will be available to work with the new administrative staff to update the status of their essential and sustainable indicators.
Scores:
 
Essential Indicators:
22 of 26
Sustainable Indicators:
24 of 27
Total Score:
46 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.
No 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
SHX passed their FY 2011 budget appropriation ordinance on June 22, 2010. Copies of the budget and ordinance are on file in the Bethel RUBA office. The budget appears to be realistic, detailed and balanced. However, the last monthly financial report submitted to the Bethel regional office was for month ending June 2010. Minutes from city council meetings have not been submitted to Bethel RUBA office for over a year. On November 19, 2010 AVEC indicated SHX's electric accounts were all current. The city administrator called the Bethel RUBA office on September 30, 2010 and indicated the city had received enough fuel for the winter on August 1, 2010.

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
A copy of SHX 's utility ordinance is on file in the Bethel regional office. The city does not have a water and sewer system in place to serve all residents. The school and the post office are billed on a monthly basis. The system for accounts payable and accounts receivable is in place and is done manually. The payroll system is done manually and has been adequate to meet their record keeping needs and to keep up to date with 941 tax reports. A chart of accounts has been developed and is used to track cash receipts and disbursements. Bank reconciliations are up to date. A purchase order form has been developed for the utility service workers and a copy is contained in the file.

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.
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
On September 21, 2010 the Bethel RUBA office sent out a federal tax information release form to the city administrator. The city has not responded to the request at the time of this writing. However, the city was not listed on Lien Watch: A Review of Small Community Liens July-August 2010. An October 21, 2010, phone conversation with the State of Alaska, Department of Labor indicated that the City of Shageluk was in compliance with employment security tax requirements through the second quarter of 2010.

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.
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
An October 19, 2010 phone call to AMLJIA, SHX 's worker's compensation insurance carrier, indicated the city's coverage is valid through July 1, 2011. Job descriptions for the utility workers are adequate and contained in the file. There have been no evaluations for the utility staff. Personnel folders are kept up to date with I-9s, job applications and completed personnel action forms. The utility worker is given adequate training opportunities when available.

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.
No 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 entity is known and set and the council is active in policy making for the utility. The school receives sewer and evacuation service for the ten private homes that have privies. These services are done on a prepaid basis. The council needs to ensure that the city administrator continues to maintain the billing system for the school. In mid August SHX's long time administrator resigned and in early October of 2010 after less than two months on the job the new administrator also resigned. In late November of 2010, a city clerk and administrator were hired. The utility worker is adequately trained and experienced. Shageluk's utility ordinance is on file. An organizational chart that reflects the current structure is posted in the Shageluk office. The city council meets on a monthly basis and complies with the Open Meetings Act.

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.
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.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility operator has a Water Distribution I and Water Treatment Provisional certificates which expire on December 31, 2012. Shageluk's preventative maintenance plan is contained under Chapter 2 of the Operations and Maintenance Manual. A written daily log is kept each day by the utility worker using the forms from the Operations and Maintenance manual. In addition, he gives a monthly verbal report to the city council. Copies of the utility worker's maintenance check list and daily work report are on file at the Bethel RUBA office as well as SHX 's safety policy. The utility is not on the July 2010 Significant Non-Compliance list. An inventory control list has been submitted to the Bethel RUBA office, but a critical spare parts list has not.