Quarterly Report: 2011, July - September (Q1), Saint Paul

Community:
Saint Paul 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Saint Paul 
Population:
447  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/2/2011 
Community Sanitation Overview:
Water is obtained from seven wells and and is treated. Currently, there are storage tanks with 850,000 gallons of capacity. All 167 homes are connected to the piped water and sewer system and are fully plumbed. An ocean outfall line was recently added for seafood processing waste. The City collects refuse, and has started a solid waste reduction and recycling program. A landfill, incinerator, sludge and oil disposal site have been recently completed. Three other landfills are located on the island. A $3 million power plant has been completed. There are three wind turbines located on the island with only one connected to the airport and hotel.  
RUBA Status & Activities This Qtr:
Documents requested and recieved: Calendar Fiscal Year 10, Signed Atutorization to Request Federal Tax Information, Workman's COmpensation Insurance (6/30/10 but verified with Alaska Public Entity via Telephone that coverage has been renewed on July 1, 2010.), and the Chart of Accounts. 
RUBA Activities for the Coming Qtr:
Assistance will be provided as requested to city staff.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
24 of 27
Total Score:
49 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
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
Adopted calendar year 2010 budget was received on May 10, 2010 and along with the Chart of Accounts, and the year to date Budget vs. Actual. The Utility Manager provides a monthly report to the City Manager. If there are issues the city council needs to be aware of, the City Manager includes them in her report to the council.

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 charges flat rates for residential water customers; meters are installed for all commercial customers. Combined bills for water, sewer, refuse, and electricity are sent out on the 3rd of each month. Electric meters are read at the end of the month in order to meet the billing schedule. All utility financial records are computerized utilizing a program called Multiple Operations Manager System (MOMS). The chart of accounts categorizes revenues and expenditures in a complete and understandable manner. The cash receipt system consists of a cashier who logs in the receipt on the computer, which is then posted to the General Ledger at the end of each day. Collection problems for local residents are few and far between. With the combined billing process including electric bills, electricity can and will be turned off if any portion of the combined bill is not paid. In 2008, the city began to use the AMPY pay-as-you-go system for electric; however, not all customers are connected to the AMPY system. City finance staff is aware that the AMPY system can be set-up to collect past due accounts and water and sewer payments. The utility has written purchasing policies. An employee fills out a purchase request and calls vendors for prices. There is a price limit that requires two quotes. This request is then submitted to the Public Works Director for signature and routed to the finance department. Finance will check the budget and purchase the item or hold until a budget amendment is completed if necessary.

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.
Yes 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
The Payroll Clerk has a file system that tracks payroll tax deposits and the deposits are made after payroll is dispersed. Fax from IRS dated on October 13, 2010 states that the City of Saint Paul is not compliant with Federal Tax filing. The City of Saint Paul is Compliant with federal tax deposits and has no record of a lien. ESC statement from october 4, 2010 has granted the city tax clearance.

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
Workman's Compensation Insurance (6/30/10 but verified with Alaska Public Entity via Telephone that coverage has been renewed on July 1, 2010 and extends to June 30, 2011.) The utility has a posted worker's compensation insurance policy from Alaska Public Entity Insurance. Coverage is effective July 1, 2009 through June 30, 2010. New hires are given a 90-day probationary period which may be extended if necessary. City employees are evaluated at the following times during their employment with the City of St. Paul: end of probationary period, on their anniversary date, and upon termination. Job announcements are posted, with job title and duties, locally at the post office, AC store, and city office. They are also announced on the local radio station. They may be advertised as short as one week if the manager deems expediency is required. The personnel policy also allows for temporary hires for a period of six months with no benefits provided. Temporary hires are often used for short term projects. The utility participates in the State of Alaska Public Employees Retirement System (PERS) and Supplemental Benefits Systems (SBS). Training opportunities are provided to staff when money allows. Aleutian Pribilof Island Association (APIA) and the RUBA program have funded utility staff training. The APIA Remote Maintenance Worker provides on-site training frequently.

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.
No The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The City of Saint Paul owns and operates the utility. The city council is active in policy making for the utility. The council meets monthly October through May each year. June through September the majority of council members are engaged in commercial fishing activities and a quorum to conduct city business cannot be obtained. The City Manager and Finance Director each provide the council with a monthly report so they can keep up with and monitor the finances of the city. Public notices of city council meetings do not include summary statements of agenda items to inform the public of actions under consideration. All meetings of the City of St. Paul are open to the public. The Public Works Director is responsible supervising water, wastewater, refuse, and road departments. He was hired by the city in 1999 and had previous experience as a construction superintendent and worked in independent business. The city finance department has eight full-time employees and includes the utility accounting functions. The Finance Director has held the position for seven years and worked for and was trained by the previous long-time Finance Director. The utility has one operator certified for Water Distribution I (12/31/11), Water Treatment OIT (12/31/2010), Wastewater Collection I (12/31/10), and Wastewater Treatment OIT. A second operator is working on certification. The system received a certificate of public convenience and necessity (CPCN) from the Regulatory Commission of Alaska. The City of St. Paul appears to be organized and well-managed by a long-term core staff.

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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The water utility has a total of seven wells with usage of only two each week and rotates that usage weekly. Water is treated and provided to residents, school, clinic, and the US Coast Guard station. Public Works consists of four large buildings to provide city services. The electric plant provides waste heat for the four main buildings which include the water treatment plant plus the fire station. The electric plant is capable of producing 3 megawatts with normal running at 650 kilowatts. The maintenance shop has a used oil burner. Two storage tanks provide about 1.3 million gallons treated water storage capacity. The water utility has a large amount of inventory and critical spare parts on hand. They have not suffered loss of service due to lack of parts. With the stable labor force and frequent RMW on-site support, maintenance requirements are minimal. It is, however, recommended that a written inventory control and critical spare parts list be adopted to be prepared for unforeseen repair and replacement needs. The Public Works Director attended UTM Organizational Management training in Anchorage December 1-5, 2008. The city has two sources for fuel supplies which are available via barge service all year. The city purchases and resells from North Pacific Fuel. Tanadgusix Corporation, the local village ANCSA village corporation, purchases and resells fuel from Delta Western. The city maintains tanks with 80,000 gallon capacity for gasoline and 1.3 million gallon capacity for diesel fuel. The utility purchases fuel from the city tanks and is billed monthly.