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

Community:
Koyuk 
Staff:
Leroy Seppilu  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Koyuk 
Population:
347  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/22/2010 
Community Sanitation Overview:
The City of Koyuk operates the water and sewer system and maintains a central watering point for residents to haul their own water. There are honeybucket pits but no sewage lagoon. The City Council is the policy making body for the utility. The City of Koyuk is working with Village Safe Water on a number of future projects including the rehabilitation of the water sewer lines, a new solid waste site and water treatment plant. 
RUBA Status & Activities This Qtr:
Nome RUBA staff traveled to Koyuk on October 14 and 15, 2009 at the request of the Koyuk city council. The purpose of the trip was to complete a RUBA management assessment necessary to receove sanitation construction funds. The utility's computer had crashed approximately two months prior and the utility clerk had been manually keeping records and preparing utility bills manually. The city and the utility used the community benefits share funds from Norton Sound Economic Development Corporation (NSEDC) to purchase fuel oil, which substantially lowered the expenses for the utility. The city council is planning to raise the utility rates. A feasibility study completed the Alaska Native Tribal Health Consortium recommended raising the residential rates fro the current rate of $70/month to $120/month. The city council revised the personnel policies after RUBA recommended that the policies be updated. The next project will be to review and revise the city's code of ordinances. Requested documentation of management processes was received and all essential indicators are met.  
RUBA Activities for the Coming Qtr:
The utility clerk is in the process of purchasing a desktop to replace the computer that crashed about two months ago. RUBA staff recommends to the utility to purchase a business-grade computer with a minimum of 4 gb memory and at least 400-500 gb hard drive, to meet the needs of managing the utility. Use Quickbooks Helpline to reinstall updated Quickbooks Pro into the new computer and to reinstall the QBP backups.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
27 of 27
Total Score:
54 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 Water and Sewer Utility Department's finances are: Revenues: Water/Sewer Utility: $110,000; Washeteria: $2,658; Trash Haul: $22,204. Expenditures: Water/Sewer Utility: $88,638; Washeteria: $6,178; Trash Haul: $22,322 The water/sewer utility rate for residents is $70 a month; commercial rate is $150 a month; school is charged $3,700. The utilities consume approximately 12,000 gallons of fuel oil a year. The city purchases its fuel by using Norton Sound Economic Development Corporation Community Benefits Share Program funds. The city received $100,000 from the CBS Program this year. This program enables the utility to pass on the savings to its residential customers. The city clerk is preparing an amendment ordinance for the city council to approve. The amendment includes some of the utility's budget figures.

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 utility has an updated water/sewer utility ordinance. Utility bills are sent monthly to customers using QuickBooks Pro. The utility computer crashed about two months ago. It was about six years old. The utility clerk is in the process of purchasing a new desktop. Fortunately, the utility clerk had made it a habit of backing up its QuickBooks Pro files on a weekly basis. In the meantime, the utility clerk is keeping records manually. She has been able to keep up with everything, even though it is more time consuming. The utility clerk has sent out past due and disconnect notices to the customers who are behind with their water/sewer bills.

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
The utility has its own Employer Indentification Number (EIN). All tax liabilities are paid electronically. The utility was a little late with making an electronic payment in August 2009, but did pay it. The 941 quarterly tax report for 3rd quarter was submitted on time. The utility has an excellent Employment Security Contribution (ESC) employer rate of 1% for calendar year 2009. This is one of the indications that the utility sends it quarterly ESC tax reports and payments in timely manner. The utility is deemed compliant 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
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.
Yes 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 utility employee records are very comprehensive and complete. Although the city's personnel policies are old, the city council makes amendments to meet the needs of the city and its employees. Training opportunities are provided to the employees and made available as needed. New hires are given orientation with their jobs duties and given the city's personnel policies as part of the reading material when hired.

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 utility clerk has worked for the utility for at least six years. She has attended and participated in various RUBA-sponsored Utility Management Training workshops. The two water/sewer plant operators are certified and are also long-time employees. The city council acts as the utility board. The utility issues are on the monthly meeting agenda and the utility clerk make regular reports to the council. All city council meetings are open to the public.

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.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility is no longer on the Significant Non-Complier list. All the city employees are required to attend the safety teleconference meeting sponsored by its insurance and workers compensation provider. Both the primary and alternate operators are certified to Level 1 Water Treatment certification and hold various certifications for water/sewer plant operators.