Quarterly Report: 2014, July - September (Q1), Old Harbor

Community:
Old Harbor 
Staff:
Jedediah Smith  
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:
10/10/2013 
Community Sanitation Overview:
Water is supplied by a dammed creek and an infiltration gallery. It is treated and stored in a tank, then distributed via pipes. A community wastewater tank treats piped wastewater. All residences are connected to the public water and wastewater 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. The city is 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 constructed a new water treatment plant that was completed in 2012. A new water storage tank was constructed in the summer of 2011. 
RUBA Status & Activities This Qtr:
The newly assigned LGS has been in contact with the Old Harbor city clerk and water operator and will plan an onsite visit in October or November. RUBA staff received a notice from the IRS Taxpayer Advocate Service that the request for federal tax information authorization request was unprocessable due to a discrepancy with the entity name and the EIN. RUBA staff have attempted to verify information based on recent quarterly tax filings.  
RUBA Activities for the Coming Qtr:
Newly assigned RUBA staff will assist with improving RUBA assessment indicators. Additionally, RUBA staff will assist with the community's codification of ordinances, as well as verification of tax filings.
Scores:
 
Essential Indicators:
23 of 26
Sustainable Indicators:
21 of 27
Total Score:
44 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.
Yes 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.
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.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The city adopted the FY14 budget, that includes the water enterprise, with Ordinance 13-47 on June 11, 2013. The revenue for the water enterprise is budgeted at $46,000 and the expenditures are budgeted at $55,277. There is a budgeted deficit of $9,277 for the water utility. The city uses revenues from the local sales tax and state revenue sharing, that are not addressed on the budget, to cover operating expenses. The transfer from the sales tax and state revenue sharing are tracked in the QuickBooks software. Monthly manager reports are recorded verbally in the council minutes and records. The city clerk/treasurer provides monthly financial reports in the form of profit and loss by class, while reviewing the budget with the council. The utility budget does not show that there are enough funds to cover operating expenses, although the monthly financial reports indicate that the utility is generating sufficient funds for operating expenses. The utility budget is in a deficit and does not address any repairs or replacement for the utility. The city is current with the power utility, AVEC (Alaska Village Electric Cooperative), for the pumphouse and water treatment plant. This is the first year that the city has operated the new treatment plant, the FY14 budget addresses the increased revenues and expenditures.

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 of Old Harbor Code of Ordinances 11.02.340, Consequences for Non-payment of Service Charges, addresses delinquent customers. Monthly bills are mailed out on or before the 25th of each month as stated in 11.02.270 of the City of Old Harbor Code of Ordinances. The accounts receivable report from QuickBooks has detailed information on water and wastewater customers that have past due balances. The accounts payable report from QuickBooks shows the city owes to five vendors, the largest amount owed is to the fuel vendor. When city customers pay a bill, a receipt is provided to the customer from a receipt logbook. The 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. For purchases greater than $500 that are 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.
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 IRS Taxpayer Advocate Service returned the request for federal tax information as unprocessable because the entity name and EIN do not match on the request. RUBA staff must verify tax filings. Until this is completed, the community is noncompliant. The Department of Labor and Workforce Development reported the City of Old Harbor is in compliance with its state tax filings. The city is not listed in the July-August 2013 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 under their AMLJIA policy that is current. The personnel policies address the Introduction, Personnel Action, Equal Opportunity, Employee Conduct, Recruitment, Performance Evaluations, Personnel Records, Hours of work, Pay, Discretionary Leave, Rules of Conduct, Disciplinary Actions, Separation, Grievance and Grievance Procedures, and Travel. Personnel files are kept in a locked file cabinet and include the I-9, job application, letter of acceptance, evaluations, and tax information. The current probationary period is 90 days for new employees. The city provides training opportunities for employees when necessary and with budgetary limitations being considered.

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. Meeting notices are posted in three public locations according to the 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 1 certifications that expire on December 31, 2013. There is a copy of the water treatment plant's Operations and Maintenance manual on-site. The utility has a new water treatment plant. AMLJIA 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 the Operations and Maintenance of the utility and notes any major issues that may pertain to the utility. The CCR has been distributed to utility customers. The utility is not on the April 2013 SNC list. The utility does not have an inventory control list nor a critical spare parts list.