Quarterly Report: 2010, January - March (Q3), Kotlik

Community:
Kotlik 
Staff:
Ken Berlin  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Kotlik 
Population:
600  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/10/2010 
Community Sanitation Overview:
Kotlik has a piped vacuum sewer and circulating water utilidor, including plumbing for 51 homes. 19 households and facilities away from the City core area are not yet served, and these residents haul treated water from the washeteria across the Kotlik Slough, collect rainwater or melt ice, and haul honeybuckets to containers. Since trenching and burying is difficult in the area, the City is considering an incinerator and recycling to reduce the quantity of solid waste. The existing landfill is being closed. A Master Plan is underway to examine needed improvements. Electricity is provided by Kotlik Electric Servic 
RUBA Status & Activities This Qtr:
2/9/10 RUBA staff got a copy of a notice that an IRS levy was posted in our DCRA office in Juneau against the City of Kotlik. The amount was not that high. Staff contacted the City Manager for the City and she said they just received the notice and are taking care of it. The City is going to paid up the levied amount and send it out today. In other news Kotlik City Council decided to contract with ARUC and they are going to start billings and collections starting this month. ARUC is planning to contract the whole water and sewer system by April 2010. Kotlik Joint Utilities no longer exists. FY 10 budget and finance report up to October 2009 are on file. Workers compensation indicated the City of Kotlik has coverage. 
RUBA Activities for the Coming Qtr:
Utility needs to catch up with payments to the AVEC and other bills.
Scores:
 
Essential Indicators:
21 of 27
Sustainable Indicators:
20 of 27
Total Score:
41 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.
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
Water and Sewer is run by a Utility Board under the City of Kotlik and they have their own administrative and finance staff separate from the City of Kotlik. It has it's own EIN and insurance. The FY 2010 Kotlik Joint Utility budget and finance reports up to October 2009 are on file. The DCRA website Financial Documents Delivery System indicated no FY 2010 budget for the City of Kotlik. Utility electric and other accounts payables are getting delinquent due to break downs in the water and sewer system. Parts and labor are costly.

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.
Yes 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
Billings and collection was taken over by ANTHC in February 2010. Accounting is done manually and with QuickBooks Pro. A chart of accounts and purchasing system needs to be set up.

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.
No 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 Kotlik City Council is reported on the November-December Lien Watch for IRS 941 deficiencies of a total of $18,420.

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.
No 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
KJU is covered by AML/JIA to 7/2010. The personnel policy is up to date and includes job descriptions. Evaluations are done annually. The policy includes a written hiring policy, each employee of the KJU has a personnel file, and all staff members are trained as necessary. I-9s are on file but the job application and letter of acceptance need to be worked on and filed.

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
ANTHC is doing billings and collections starting February 2010. ARUC is planning to take over the water and sewer system in April 2010. Kotlik City Council is active and meets each and every month. Enforcement of policy is top priority. Main operator is certified and he has two trained alternates. The alternates are signed up for certification training.

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".
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
Utility must address SNC listing.