Quarterly Report: 2011, January - March (Q3), Kivalina

Community:
Kivalina 
Staff:
Margaret Hansen  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Kivalina 
Population:
398  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/4/2011 
Community Sanitation Overview:
Wells have proven unsuccessful in Kivalina. Water is drawn from the Wulik River via a 3-mile surface transmission line and is stored in a 700,000-gallon raw water tank. It is then treated and stored in a 500,000-gallon steel tank. Residents haul water from this tank. One-third of the residents have tanks, which provide running water for the kitchen, but homes are not fully plumbed. The school and clinic have individual water and sewer systems. Residents haul their own honeybuckets to bunkers. A new landfill and honeybucket disposal site was completed. The business plan is completed. They had started work on wastewater treatment plant this last summer but ran across some human remains and artifacts so had to bring out an archeologist which slowed project down but so only got the foundation and bin walls framed before they ran out of funding. The city had applied for an Community Development Block Grant in December 2010 but was recently told it did not get funded.  
RUBA Status & Activities This Qtr:
Kivalina currently does not have a RUBA water/sewer project and is a non reportable community as oer Alaska Tribal Health Consortium project engineer via phone conversation on Thursday April 7, 2011. Kotzebue staff contacted the Mayor to see if he had questions regarding the letter I sent him about the up coming workshop in March and the RUBA assessment. Since he did not receive the letter I went ahead and scanned it and attached it to an email. Kotzebue staff sent an email to the City Administrator to get signed tax authorizations to verify tax compliance and the need to send updated monthly financial reports. No response as of today.  
RUBA Activities for the Coming Qtr:
Although Kotzebue RUBA has written a letter to the new Mayor offering our assistance. None has been requested at this time but RUBA staff will continue to notify the city and offer any assistance needed.
Scores:
 
Essential Indicators:
17 of 27
Sustainable Indicators:
18 of 27
Total Score:
35 of 54

Finances

Essential Indicators
Answer Question
No 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.
No The utility is current in paying all water/wastewater electric bills.
No 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 only monthly report that Kotzebue RUBA has received was for the month of December for the RUBA report when at that time had sent an email to the administrator recommending she has the council amend their budget since there were additional revenue and expenses incurred for their washeteria. So it is unknown at this time if any essential or sustainable indicators have been met.

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.
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
Without having received any monthly financial reports and minutes showing that the council approved them, RUBA cannot see if they are following their collection policy or that they are billiing customers on a regular basis. They utilize quickbooks now for all their acounting needs tracking accounts receivables, payables, payroll and payroll files, records incoming money and how it was spent. Although they have adopted a budget which they use as a chart of accounts it is unknown that they are completing bank reconciliations nor can I say they have a purchasing system to check against their budget without those financial reports.

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.
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 still uses quickbooks which accurately tracks, report tax liabilities but have not received a tax authorization form to determine if they are current in filing tax reports and making deposits timely. In reviewing the Tax Lien publication, They still owe $136,735 from past liability they are paying under a payment plan with the IRS.

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.
No 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 workmen's compensation posted showing coverage from July 2010 to July 2011 and according to AML/JIA are in compliance with their payment plan. They still have not made any changes to their personnel policies that included an adequate hiring process which had been reviewed by the Northwest Arctic Borough Lawyer when passed . All job descriptions are current which they tie into their job evaluations. There has been no turnover so all the files have in the information as reviewed before but no evaluations have been completed as known.

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 council is the known entity of the utility who is active in policy making of the utility and makes sure it is enforced by meeting monthly and utilizing the ordinances to give it authority which shows the current organizational structure. They still enjoy the administrator and bookeeper of many years and the operator who is certified for water treatment and water distribution although he has alternates who are certified as well.

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.
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
Their main operator is still certified for water distribution OIT and Water Treatment OIT and plans to attend the next training in Kotzebue. The alternate has those certifications as well including wastewater collection and wastewater treatment who follows their preventative maintenance plan for their facilities. The administrator does receive a monthly report from the operator who routinely spot checks to make sure maintenance items are being done but no known safety training is being done even though they do have safety manuals. With the washeteria freezing problem resolved, they are operating at the level of service proposed and maintains an inventory and critical spare parts list. The city has completed their CCR and is not on the SNC list.