Quarterly Report: 2012, July - September (Q1), Mekoryuk

Community:
Mekoryuk 
Staff:
Fred Broerman  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Mekoryuk 
Population:
191  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/26/2011 
Community Sanitation Overview:
The City of Mekoryuk manages the water and sewer utility. In the 1970s the community had an underground piped water system installed that failed due to winter freeze ups. Later the city received one of the first flush tank and haul systems in rural Alaska which is still being used in ninety-six homes and eleven commercial establishments. The city would like to be considered for funding for a piped water and sewer system. There is a water treatment and storage system, 9,000,000 gallon lined reservior, water treatment plant, and a 125,000 gallon water storage tank, a washeteria with laundry facilities, public showers and a 4.2 acre sewage lagoon. The Lower Kuskokwim School District has its own well but uses the city's sewage lagoon.  
RUBA Status & Activities This Qtr:
Bethel RUBA staff contacted the city by email on July 1, 2010, September 21, 2010, December 21, 2010, March 25, 2011, June 14, 2011 and September 16, 2011 requesting documents needed for verification of RUBA essential indicators. At the time of this writing the city has not provided the Bethel RUBA office with several items that were requested. Therefore, the city is no longer in compliance for several essential indicators until documents needed for verification can be provided.  
RUBA Activities for the Coming Qtr:
Bethel staff is willing to work with city staff to bring their RUBA essential and sustainable indicators into compliance.
Scores:
 
Essential Indicators:
12 of 26
Sustainable Indicators:
9 of 26
Total Score:
21 of 52

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.
Yes 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.
N/A Budget amendments are completed and adopted as necessary.
Finances Comments
A copy of the City of Mekoryuk's FY 2012 Operating Budget and accompanying ordinance adopted on June 13, 2011 is on file at the Bethel regional office and it appears to be balanced and realistic. Bethel RUBA office has not received monthly financial reports from the city since March 2011, nor have meeting minutes been provided that document that city council has an opportunity to review financial reports. A September 23, 2011 email correspondence from Alaska Village Electric Cooperative (AVEC) indicated that the city has significant amounts 60 and 90 days overdue on their electric accounts. On July 1,2010 the city received a delivery of 20,000 gallons of heating fuel. On August 22, 2011 the administrator indicated the city had 18,000 gallons of heating fuel on hand and that it would be adequate to cover the city's winter of 2011/2012 needs.

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.
Yes 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.
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.
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
An accounts receivable aging report for the city's water and sewer utility showing the status of commercial and residential accounts for 30, 60, and 90 days was requested in a September 16, 2011 quarterly RUBA information request. However, an aging report has not been submitted to the Bethel regional office. Therefore it could not be determined if the city has an accounts receivable system in place which tracks customers and reports past due accounts and amounts. When cash is received, the customer receives a receipt and the transaction is entered into QuickBooks. It has been over two years since a RUBA assessment has been completed for the City of Mekoryuk. Therefore many indicators need reviewed and cannot be marked 'YES' until a new assessment is completed.

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.
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 city did not provide Bethel RUBA staff with an Authorization to Request Federal Tax Information so their filings and payments could not be verified. A September 22, 2011 email correspondence from Department of Labor's Anchorage office indicated that the City of Mekoryuk is not compliant filing its Employment Security Tax reports. The city is not listed on the July-August 2011 LIEN WATCH: A Review of Small Community Liens.

Personnel System

Essential Indicators
Answer Question
No The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No 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.
No 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.
No The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
No 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
A October 6, 2011 query done on the Department of Labor's Worker's Compensation employer database indicates that the City of Mekoryuk does not have worker's compensation insurance for its employees. A personnel policy for the city is on file at the Bethel regional office but verification of its adoption has not been provided. It has been over two years since a RUBA assessment has been completed for the City of Mekoryuk. Therefore many indicators need reviewed and cannot be marked 'YES' until a new assessment is completed.

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.
No The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
No The utility has an adequately trained operator or operators.
No 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.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The Bethel regional office has an unsigned copy of the City of Mekoryuk's water and sewer ordinance #94.04 on file. Verification that the ordinance has be adopted is needed. The City of Mekoryuk's water treatment operator has provisional water distribution and water treatment certificates. The city has a Class 1 water treatment facility. The city council is active in the policy making of the utility. It has been over two years since a RUBA assessment has been completed for the City of Mekoryuk. Therefore many indicators need reviewed and cannot be marked 'YES' until a new assessment is completed.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
No 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.
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 City of Mekoryuk's water treatment operator has provisional water distribution and water treatment certificates. The city has a Class 1 water treatment facility. The water operator reports to the city administrator on daily facilities operations. A copy of the city's 2010 Consumer Confidence Report (CCR) is electronically filed at the Bethel RUBA office along with a certification form signed by the city administrator on June 28, 2011 indicating the CCR was distributed and posted in the community. The city's water treatment facility is It has been over two years since a RUBA assessment has been completed for the City of Mekoryuk. Therefore many indicators need reviewed and cannot be marked 'YES' until a new assessment is completed. not on the July 2011 Significant Non-Complier (SNC) list.