Quarterly Report: 2012, July - September (Q1), Old Harbor

Community:
Old Harbor 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Old Harbor 
Population:
218  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/26/2011 
Community Sanitation Overview:
Water is supplied by a dammed creek and an infiltration gallery, is treated and stored in a tank, then distributed via pipes. A community septic tank treats piped sewage. All residences are connected to the public water and sewer system and have complete plumbing. Refuse collection services are not available, although the city has requested funding for dumpsters and vehicles to do so. The landfill was recently relocated. They are interested in developing hydro-electricity. Electricity is currently provided by AVEC. There is one school located in the community, attended by 62 students. Local hospitals or health clinics include Old Harbor Health Clinic. Old Harbor is classified as an isolated village, and it is found in EMS Region 2G in the Kodiak Region. Emergency Services have coastal and air access. Emergency service is provided by volunteers and a health aide. Auxiliary health care is provided by Old Harbor Village Response Team. ANTHC is constructing a new water treatment plant that should be completed in fall, 2011. A new water storage tank was constructed in the summer of 2011. 
RUBA Status & Activities This Qtr:
On August 3, 2011 Anchorage RUBA staff traveled to Old Harbor to conduct a RUBA management assessment and to provide assistance with answering the survey from AML/JIA regarding a personnel policy update. On September 9, Anchorage RUBA staff finalized the new RUBA assessment report for the City of Old Harbor. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to provide telephone, fax, and e-mail support and assistance as needed.
Scores:
 
Essential Indicators:
23 of 26
Sustainable Indicators:
20 of 27
Total Score:
43 of 53

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.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The FY12 budget for the city was adopted on September 2, 2011 by the city council. In the water/wastewater budget, the city anticipates receiving $32,575 in revenues and plans to expend $38,126.84 which leaves a deficit of $5,551.84. Utility user fees are not sufficient to cover operating expenses, and although the overall entity budget is balanced, the revenue summary does not state from where the water/wastewater deficit will be subsidized. YTD date revenues and expenditures have not been submitted as monthly financial reports to RUBA staff since June 2011. A bill from the Alaska Village Electric Cooperative (AVEC) shows that the utility is current with electric payments; a check made to AVEC was sent on August 1, 2011. The utility gets fuel as needed from the city fuel enterprise. The city has a separate bank account for repair and replacement; however, the budget does not allocate funds to the account. In the event of emergency repairs, the city will purchase the parts using general funds. Managers reports are submitted to the council with monthly financial reports at council meetings. Budget amendments are made as needed by the council.

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 collection policy is in the Old Harbor Code of Ordinances 11.01.161 Billing and Payment. The water and wastewater bills are sent out before the 25th of each month. The accounts receivable report from QuickBooks has detailed information on water and wastewater customers that have past due balances. The largest amount owed is $3556 by a customer that has signed a repayment agreement with the City of Old Harbor. The accounts payable report from QuickBooks shows only a total of $150 that the city owes to three vendors. When city customers pay a bill, a receipt is provided to the customer from a receipt logbook and Old Harbor Code of Ordinances 11.01.170 states that water and wastewater monies will be used strictly for maintenance, extension, repair, capital improvement and operation of the systems. The chart of accounts lists all bank accounts, accounts receivable, assets, liabilities, equities, income, cost of goods sold and expenses of the city. Monthly bank reconciliations are done through QuickBooks and bank statements. For purchases greater that $500 and not listed in the budget, approval goes from employee to supervisor, to the bookkeeper/treasurer and mayor for approval.

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
A June 24, 2011 report from the IRS stated that the city is compliant with federal tax filing, deposits and has no record of a lien against the city. The state ESC report from June 28, 2011 states that the city is in compliance with state tax filing, deposits and is not on the March April lien watch.

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.
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 is insured for workers compensation through AML/JIA from July 1, 2011 to July 1, 2012. The city has a personnel policies manual that is being updated with AML/JIA assistance. Job descriptions, the hiring process and evaluations are also being updated with AML/JIA. Employee personnel folders are kept in a locked cabinet that includes the I-9, job application, letter of acceptance, and evaluations of each employee. Trainings are offered to employees on an as needed basis and as funding allows.

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 owns the utility and is authorized by the Old Harbor Code of Ordinances, Title 11 to operate and manage the utility. Title 11 grants the city council the authority to set regulation and enforce those regulations with utility customers. The utility manager is the bookkeeper/treasurer for the city, as well as the operator. There is an alternate when the operator is not available. The organizational chart is depicted in the Old Harbor Water treatment Plant and Water Storage Tank Business Plan from the Alaska Native Tribal Health Consortium. The council meets on the first Tuesday of every month and properly posts notices according to local code.

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.
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.
No 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 operator is certified in both Water Distribution Provisional and Water Treatment Provisional and due to expire on December 31, 2013. The RMW has provided a photo copy of the old Water treatment plant's Operations and Maintenance manual. The utility has a new water treatment plant in the construction phase and a draft maintenance plan will be provided to the utility once construction of the water treatment plant is complete. AML/JIA safety meetings have been addressed with the operators, but operators do not attend. There have been no major problems or outages due to management practices of the utility. The manager provides a report to the council on O/M and any major issues that may pertain to the utility. The 2010 CCR has not been distributed to utility customers as of August 23, 2011, but the utility is not on the April 2011 SNC list. The utility does not have an inventory control list nor a critical spare parts list.