Quarterly Report: 2011, October - December (Q2), Scammon Bay

Community:
Scammon Bay 
Staff:
Fred Broerman  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Scammon Bay 
Population:
517  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/2/2011 
Community Sanitation Overview:
The City of Scammon Bay operates the piped water and sewer utility and its council is the policy making body. The community's drinking water is derived from an infiltration gallery located on a small fast flowing stream just southeast of the city. The existing water treatment plant has been in place for about 30 years. The plant does not have the filtration equipment necessary to bring water from the stream into compliance with state drinking standards. This is due to recent changes in State of Alaska regulations regarding treatment of water derived from surface sources. Therefore a boil water notice has been in effect since 2007. Scammon Bay is chlorinating piped water. Construction on the city's new water treatment plant is to start in the summer of 2012. Scammon Bay provides piped water and sewer service to about 62 residents and 9 commercial buildings. Six newly constructed HUD homes, inhabited for about two years, have not been connected to the piped water and sewer system. Due to the design, materials, and age of the city's water distribution infrastructure there have been many leaks, which will continue until replaced. Cracks and leaks in the distribution lines cause low flow rates in the system which result in residential access lines freezing up in winter. The community does not have a washeteria.  
RUBA Status & Activities This Qtr:
On September 9, 2010 Bethel RUBA staff travelled to Scammon Bay and met with the city administrator and city clerk to explain the types of assistance available to help the city meet RUBA essential indicators. The council was also briefed on the essential indicators of a RUBA assessment and their underlying principles. On September 23, 2010 Bethel RUBA staff emailed an information request for documents needed to update their RUBA assessment. At the time of this writing Scammon Bay has not provided the necessary documents for essential indicator compliance. The city needs to get current on their electric bills and filing their state and federal payroll taxes. Scammon Bay needs to provide the Bethel RUBA office with monthly financial reports along with council meeting minutes documenting that reports have been reviewed and accepted. City administrative staff also need to submit an accounts receivable aging report for water and sewer customers' status for 30, 60, and 90 days. The city is listed on the July, 2010 Significant Non-Complier (SNC) list due to not having a water filtration system necessary for a surface water source. Bethel RUBA staff participated in the Technical Assistance Providers (TAP) conference calls in August and November for the city of Scammon Bay. Participants included various sanitation agency representatives, however the city manager was not available. Sanitation construction was halted due to safety concerns for Alaska Native Tribal Health Consortium (ANTHC) workers in September and resumed in October. The project focuses on repairing failures to the community's sewage infrastructure.  
RUBA Activities for the Coming Qtr:
When SCM provides the documents the Bethel RUBA office has requested, RUBA staff will be available to work with the city's administrative staff to update the status of their essential and sustainable indicators.
Scores:
 
Essential Indicators:
17 of 27
Sustainable Indicators:
14 of 27
Total Score:
31 of 54

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.
No Budget amendments are completed and adopted as necessary.
Finances Comments
A copy of the Scammon Bay's FY11 budget and accompanying resolution signed on June 1, 2010 are on file at the Bethel RUBA office. A November 11, 2010, correspondence from Alaska Village Electric Cooperative indicated that Scammon Bay is past due on all six of its electric accounts. Scammon Bay received 9,500 gallons of fuel in September 2010 which was paid for through Community Revenue Sharing and Payment in Lieu of Taxes (PILT) funds. On September 7 and 24, 2010, Bethel RUBA staff contacted the city administrator and requested meeting minutes and monthly financial reports from the past five months. No reports have been provided at the time of this writing.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
Yes 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.
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
On September 23, 2010 Bethel RUBA staff emailed city staff specifically requesting an accounts receivable aging report with water and sewer customers' status for 30, 60, and 90 days. At the time of this writing the city has not responded to the request.

Tax Problems

Essential Indicators
Answer Question
No 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.
No 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
On October 27, 2010 Alaska Department of Labor indicated that Scammon Bay was not in compliance with their Employment Security Compensation filings for the second quarter of 2010. An August 31, 2010 correspondence from the IRS indicated that federal payroll taxes are owed for the fourth quarter of 2009 and 941 forms filings for the first and second quarters of 2010 have not been filed.

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
A November 22, 2010 phone call from Scammon Bay's workers compensation insurance carrier (AMLJIA) indicated that the city's policy is current until July 1, 2011. The city's water plant operators recently received Small Water System Treated and Water Distribution training through Yukon Kuskokwim Health Corporation Office of Environmental Health in Bethel in April of 2010.

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.
No 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
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
Scammon Bay has water and sewer ordinances that were passed on January 8, 2004 which indicate that the city is the sole owner of the utility and gives a description of service.

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.
No Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
No 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
On April 9, 2010 Carlie P. George passed the Small Water System Treated and Water Distribution I certification tests and Isaac O. Tomaganuk passed the Small Water System Treated certification. All three certificates expire on December 31, 2012. Scammon Bay's water system is on the July 2010 Significant Non-Complier (SNC) list because the water treatment plant does not have filtration equipment to comply with safe water regulations for its surface water source. Also, the city has not been collecting water samples necessary for compliance with State of Alaska drinking water standards. ANTHC is working with the city to address this issue.