Quarterly Report: 2012, April - June (Q4), Galena

Community:
Galena 
Staff:
 
DCRA Regional Office:
 
Gov't Type:
First Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Galena 
Population:
487  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2012 
Community Sanitation Overview:
Water is derived from wells and is treated. There is a 200,000 gallon reservoir and a community leach field. Sixty-one customers are connected to the fully piped system and fifty-four customers have water delivered. Some customers only have water delivered and they have private wastewater systems while others pay the city to dispose of wastewater on an as needed basis. The city began operating the landfill, located on the former Campion AFS grounds, in 1997. In September 2010 the city acquired a used water delivery truck to replace the previous vehicle which was at risk of being inoperable. An Alaska Native Tribal Health Consortium (ANTHC) project is underway to connect Native homes on Louden Loop to piped water. 
RUBA Status & Activities This Qtr:
This quarter communication with the city has consisted of phone, in-person, and email support to the clerk, city manager, and city council. RUBA staff has advised and worked with the city on the following topics: returning into the Power Cost Equalization program and correctly completing reports, ordinance review and edits, Community Revenue Sharing and PILT payments, and advice as the city considered requiring two regular city council meetings a month. Fairbanks RUBA staff spent three days in June working on-site with the City of Galena staff. During that visit a council member training was provided which covered topics such as the Alaska open meetings act and executive session, conflict of interest and ethical behavior, and Robert's Rules of Order. Galena has a piped wastewater project to connect additional homes to the utility; Alaska Native Tribal Health Consortium is installing and funding the project which does not require a RUBA assessment. 
RUBA Activities for the Coming Qtr:
Fairbanks RUBA staff will provide assistance as requested. RUBA staff and the City of Galena have a good working relationship; communication and assistance occur frequently.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
19 of 27
Total Score:
44 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.
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.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The city hired an Anchorage based bookkeeping firm, Alaska Business and Education Service (ABES). The firm created an FY13 budget which the council adopted. The 40 page budget was mailed into the Fairbanks RUBA office on June 28. ABES creates a monthly memorandum-style financial report for the manager and council. Based on the last report (dated May 20) the city has gone over the FY12 budget by 53 percent and income is only at 80 percent of projected. The city is able to pay its loan obligations to the Alaska Municipal Bond Bank Authority, Alaska Energy Authority Bulk Fuel Loan, and Alaska's Division of Community and Regional Affairs Bulk Fuel Bridge loan. The city has been approved for new fuel loans and Crowley will deliver the supply this summer and fall.

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.
No 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
The city and Alaska Business and Education Services (ABES) use QuickBooks Enterprise Solutions, although, the city was recently informed that a new QuickBooks file has been created for FY13. The accounts receivable continues to decrease, meaning the city has been able to collect money due from customers. The accounts payable has also decreased, indicating that the city is able to pay its bills. RUBA staff is unable to determine if bank accounts have been reconciled. Customer bills are mailed from Anchorage on a regular basis; the format has changed but customers are slowly getting used to the new style. Payments are still received in the city office.

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.
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
QuickBooks accurately calculates and reports payroll taxes. As of June 20, 2012 the Department of Labor deemed the city compliant. On June 20, 2012 the IRS deemed the city compliant with federal tax reports and 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.
Yes The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
No 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
Workers compensation insurance has been provided through AMLJIA for FY13. The personnel policy and procedure manual is comprehensive; a copy is provided to each new hire with a signature page that acknowledges receipt and is filed in the employee's personnel folder. RUBA staff has copies of job descriptions for city positions. The annual evaluations are based on the job description. RUBA staff and city staff were not able to locate a specific written hiring process. The current process is that a vacancy notice is posted in town at four locations and the notice is read on the local public radio station for ten days. Applicants submit their application and if there is more than one applicant, a list of interview questions is created for the interviewer. Galena Personnel Policies and Procedures Title 15.10.430 (A)(1) (this Title 15 document is separate from the Galena Code of Ordinances as Title 15 in the code has to do with building and construction) states that there are to be two separate personnel files for each employee, one public and one confidential. Between the two files, all necessary documents are retained. Included in the confidential files are evaluations, which are done after the six-month probationary period. New hires are provided with orientation and job-training, to the extent needed for the position. The personnel manual states that 'the city encourage[s] employees to avail themselves of training and educational opportunities directly applicable to their city positions in order that they may provide more effective service to the public.'

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 city is the owner of the water and electrical plants (Galena Code Title 13) and city employees operate both utilities. The city council is the policy making body; the city manager oversees the day-to-day management of staff. The city council is active in setting and enforcing utility policy and rates, this last quarter the city council voted to increase the electric rate. The city hired a new city manager in April. The utility manager and city manager are fulfilling the job duties to oversee the staff which operate the utilities. The city bookkeeping is done by the Anchorage based firm and appears to be adequate. The city has an organizational chart that shows the current structure, the policy making body (city council) meetings are open to the public with the exception of executive sessions as allowable by law.

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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
Operators have a Level 2 Water Treatment certificate, but only one operator has a Water Distribution certificate. A Level 2 certificate is required and the operators will continue to gain the training and experience level neccesary. A preventative maintenance plan is located in the plant. The utility manager provides operation and maintenance reports to the city manager who includes them in a report for the council. AMLJIA provides telephonic safety meetings which are attended by city staff. Operations of the utility are functioning as intended and no major outages have occurred. The most recent CCR has been completed and RUBA obtained a copy. The city is on the April 2012 Significant Non-Complier (SNC) list for TTHM MCL violations; quarterly monitoring will continue.