Quarterly Report: 2014, October - December (Q2), Brevig Mission

Community:
Brevig Mission 
Staff:
Leroy Seppilu  
DCRA Regional Office:
Nome 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Brevig Mission 
Population:
358 (2012 DCCED certified estimate) 
Assessment Status:
Assessment Completed 
Assessment Date:
8/17/2011 
Exp Date:
 
Last Updated:
1/3/2014 
Community Sanitation Overview:
Brevig Mission completed construction of a 8.5 million dollar, 4-phased piped water and wastewater system and new landfill in November 2002. The water and wastewater system is rated as a Class A system. Water is supplied from Shelmon Creek and is treated and stored in a 100,000-gallon tank at the washeteria. The tank is filled monthly. Water is piped into the school from the washeteria.  
RUBA Status & Activities This Qtr:
This past quarter, RUBA staff worked with the mayor to obtain workers' compensation coverage as required by State law. The city had an outstanding balance with Alaska Municipal League-Joint Insurance Asso. The city was able to pay the balance off and renew its workers' compensation coverage with them. The city can now legally employ people as needed. The State of Alaska, Dept. of Labor had been threatening to fine the city substantially for each day that it didn't provide coverage for its employees. The city council acts as the utility board. The city council decided to start holding its municipal elections on the first Tuesday of October each year from December 31. There were two vacancies this year. The council elected a new mayor, Johnee Seetot. She has been very active with her mayorship, coming to the city office daily to deal with financial and management issues at the city office. RUBA staff gave her advice and assistance, especially with past due tax liabilities. She was able to halt IRS' seizures of personal assets of the past city council members due to noncompliance with make timely reports and payments from the past. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to work with the city council and the mayor to continue to lower the total of past dues owed to various vendors, including electrity bills, fuel bills payroll tax liabilities. RUBA staff may make at least on trip to Brevig Mission in the next quarter to review the water and wastewater revenues and expenditures.
Scores:
 
Essential Indicators:
22 of 27
Sustainable Indicators:
21 of 27
Total Score:
43 of 54

Finances

Essential Indicators
Answer Question
Yes 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.
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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The city has a FY14 budget, however it is not a balanced realistic budget. The City subsidizes the department expenses with sales tax, funds from Norton Sound Economic Development Corporation's Community Benefits Share Program and sometimes from the State's Revenues Sharing Program funds. Sporadic monthly financial reports are made and are usually complete and comprehensive. The city was threatened with electricity cut-off for non-payment, but has managed to pay off the electric bill past due. The city has received at least 35,000 gallons of diesel fuel for winter use. The amount of fuel should be adequate until the next fuel delivery season. The utility is barely getting by with its past due bills. RUBA staff has been encouraging the city council and the mayor to keep in touch with all its vendors that it has balance with. The subsidy of the water and wastewater department is substantial. The expenditures are about equal to what was budget, but still a little too much. The city clerk, who acts as a utility manager, resigned. The new city clerk has not made does not prepare monthly reports. Budget amendments are not done.

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 city has a fairly comprehensive water and wastewater utility ordinance and actively follows the collection policies that are in place. The bookkeeper bills all the customer once a month as required by the ordinance. The bookkeeper uses QuickBooks for tracking payments and aging of customers' accounts. QuickBooks is used for invoicing all payments made by the utility. The bookkeeper uses Quickbooks to correctly calculate payroll and payroll record-keeping. The utility clerk records all incoming funds and how it is spent. The utility keeps track of how funds are spend with QuickBooks. The utility finances have detailed chart of accounts used by the utility clerk. The clerk does monthly bank reconciliations regularly as bank statements arrive. QuickBooks is used as cash disbursement system for the utility's bank account.

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.
No 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 City uses Quickbooks to complete quarterly tax reports. The City made an agreement with IRS to at least submit quarterly tax reports. The city finally agreed to start keeping current on filing tax reports even if payments are not made. RUBA staff recommended to the mayor to continue making payroll cutbacks to lower the tax liabilities. The mayor has stated that she has made as much cutbacks as she can. The city has not been able to make full tax deposits. The city has mad a repayment plan and agreement with IRS. RUBA staff has also encouraged the city to contact Employment Contribution Division to discuss its past due ESC account.

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.
No 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 city has managed to pay off its past due workers' compensation coverage to AML-JIA and has gotten a new workers' compensation coverage with them. The city has a comprehensive personnel policies. The city will need to start having new job descriptions for all its employees. The city follows its written personnel evaluation for all its employees. The personnel policies has a written process to hire new employees. The personnel files for all the city's employees are fairly complete. The city has a three month probationary period and is reviewed by the city clerk who is the designated supervisor for all the city employees. The city sends some of the utility employees for trainings or workshops.

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.
No 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 council meets regularly and the water and wastewater issues are in its monthly meeting agendas. The city council is very active in policy making of the utility. The council usually decides on disconnecting customers who are behind on paying their utility bills by at least three months. The city clerk is the utility manager for the utility and may need training. The utility clerk is the bookkeeper and is adequately trained, however, may need some more training with QuickBooks and some other duties. The utility operators are certified to Provisional 1 for water treatment certification. The city has an organizational chart and is updated regularly as needed. The city council meets at least once a month and as needed to deal with utility issues. All 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 operators certified to the level of the water and wastewater systems managed and operated by the city. The city clerk makes monthly reports on the status of each department, including the water and waste water department. RUBA staff has recommended to the city to attend Alaska Municipal Leagues Joint Insurance Association (AMLJIA) sponsored monthly safety meetings by teleconference. The water and wastewater operators have recommended to the city council to purchase at least 35,000 gallons of diesel fuel for use with the water and wastewater plants.