Quarterly Report: 2014, October - December (Q2), Diomede

Community:
Diomede 
Staff:
Iura Leahu  
DCRA Regional Office:
Nome 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Diomede 
Population:
107 (2012 DCCED certified estimate) 
Assessment Status:
Assessment Pending 
Assessment Date:
9/26/2011 
Exp Date:
 
Last Updated:
12/24/2013 
Community Sanitation Overview:
The City of Diomede and Diomede Joint Utilities are responsible for the management of a seasonal washeteria serviced by a septic system and seepage pit, the Little Diomede Water System with a water treatment plant and 434,000-gallon steel water storage tank/watering point. The water tank is fed by water drawn from a mountain spring that is then filtered and chlorinated at the water treatment plant prior to being stored in the tank. The tank capacity is usually insufficient in the spring each year and residents are forced to melt snow and ice for drinking water. All homes use honey buckets, the waste of which is dumped on the beach in the summer and on pack ice in the winter. The local clinic is connected to the washeteria septic system. In September 2011, CRW Engineering Group, LLC prepared a Business Plan for Water Storage Tank Improvements. The City of Diomede, with funding and technical assistance through the Alaska Native Tribal Health Consortium (ANTHC), plans to construct an additional 350,000 gallon treated water storage tank. The tank will provide additional water storage throughout the winter and spring so that the community does not run out of water.  
RUBA Status & Activities This Qtr:
This quarter, RUBA staff traveled to the City of Diomede to work with the city council on reviewing and amending the FY14 budget due to possible changes in the Postal Office contract with the city. Nome RUBA staff maintained frequent telephone contact with the acting mayor of Diomede. RUBA staff sent letters requesting monthly financial reports and meeting minutes to update the RUBA assessment. RUBA staff was not provided with written documentation to update the assessment. In late 2012, an ANTHC Senior Project Manager assigned to manage water and wastewater projects in Diomede reported that $2,200,000 dollars were dedicated to fund the Water Storage Tank project. However, the project manager advised that two roadblocks had to be eliminated for the project to move forward. One problem was that the State of Alaska has not approved the Business Master Plan. The second problem was that the City of Diomede was not compliant with the RUBA Program requirements due to several essential indicators on the RUBA assessment not being met. 
RUBA Activities for the Coming Qtr:
Nome RUBA staff will continue to provide onsite and offsite management assistance to the city council and utility staff at their request. RUBA staff also plans to travel to Diomede depending on weather conditions and air travel availability to conduct an on-site RUBA assessment.
Scores:
 
Essential Indicators:
7 of 26
Sustainable Indicators:
7 of 27
Total Score:
14 of 53

Finances

Essential Indicators
Answer Question
No All revenues and expenses for the utility are listed in the utility budget.
No 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.
No YTD revenues are at a level equal to or above those budgeted.
No YTD expenditures are at a level equal to or below those budgeted.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Diomede, Little Diomede Water Supply Water System and Diomede Joint Utilities have not adopted the FY14 budget. Although the city treasurer informed RUBA staff that a utility clerk was hired, the current financial situation of the utility is unknown because no supporting documents have been submitted to RUBA staff since August of 2011. Neither city staff nor utility staff has provided Nome RUBA staff with monthly financial reports showing the year-to-date revenues and expenditures. Nome RUBA staff is not aware of whether the utility is current paying its bills. The city administrator informed RUBA staff that the Bureau of Indian Affairs delivered 10,000 gallons of diesel fuel. The city treasurer reported that Diomede Joint Utilities jointed the Consolidated Bulk Fuel Program administered by the Norton Sound Economic Development Corporation and fuel was delivered for the water treatment plant and the electric power plant. Diomede Joint Utilities uses about 45,000 gallons. The local store, which is run by the local IRA uses about 12,000 gallons.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
No The utility bills customers on a regular basis.
No An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
No An accounts payable system is in place.
No The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No 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.
No 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
According to the city treasurer, part-time employees have send bills out to customer from time to time. The prior utility manager used QuickBooks to keep track of accounts receivable, payable and payroll records of all of Diomede Joint Utilities financial records. Financial reports used to be done using Excel spreadsheets.

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
Diomede Joint Utilities uses its own Employer Identification Number (EIN) for IRS and State's Employment Security Division deposits and reports. The Wells Fargo bank calculates, tracks, files and makes tax deposits for the city and its utilities. However, the city is responsible to file 941 and it has not filed any since 2011. No recorded Notice of Federal Tax Lien against DJU has been reported. The Division of Employment Security Tax reported that the utility is currently compliant with filing Quarterly Contribution Reports and making deposits.

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.
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.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
According to the city administrator and the Division of Workers' Compensation, the city has purchased a workers' compensation insurance policy through the Alaska Municipal League Joint Insurance Association. The policy is valid until June 2014 and covers work-related accidents and occupational diseases as per Alaska statutory limits. The utility uses the city's personnel policies, which are part of the Diomede Code of Ordinances. The policies outline the hiring and evaluation process, conditions of employment, a probationary period, disciplinary and grievance procedures, and general workplace expectations. Written job descriptions for all utility positions are included in the Code of Ordinances. There is no evidence that the utility or the city follows its written personnel evaluation process, uses its written hiring process or whether the utility or the city has personnel folders on every employee and follows the probationary procedures outlined in the Code of Ordinances.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
No The policy making body is active in policy making of the utility.
No The policy making body enforces utility policy.
No The utility has an adequately trained manager.
No The utility has an adequately trained bookkeeper.
No 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.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
Chapter 36 of the Diomede Code of Ordinances outlines the rules and policies of the public utilities. The city council 'reserves unto itself the power and authority of approve or disapprove by ordinance all budgets, rates, and the acquisition or disposal of real property.' Chapter 36 also provides that the Diomede Joint Utilities Board will manage and operate all utilities owned by the City of Diomede. At this time, the city council is the acting board. The city council has not met as required and has not always complied with the open meeting act for all meetings. Chapter 36 provides that the board shall appoint a manager of the public utilities. However, as of August 2011, DJU has not had a manager. The city office was not able to hire a replacement and the utility does not have an adequately trained manager and bookkeeper. By ordinance, the manager prepares and manages the utility budget, oversees the water treatment operator, power plant operator, tank farm operator and assistant operators. He also prepares and provides monthly manager and financial reports to the city council.

Operation of Utility

Essential Indicators
Answer Question
No 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
No 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.
No 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.
No The operator provides status reports to the manager on a routine basis.
No 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
Little Diomede Water Supply Water System has a water operator. The operator does not have the necessary certification. The utility completed and posted its 'Consumer Confidence Report'. The utility system has been on the Significant Non-Complier list for many years. Due to remoteness, the water system is late in sending out water samples and the water exceeds the Nitrate Maximum Contaminant Level and Arsenic Running Annual Average of Maximum Contaminant Level. The City of Diomede has a small water system, which uses only one treatment chemical to treat water.