Quarterly Report: 2008, April - June (Q4), Wales

Community:
Wales 
Staff:
Karlin Itchoak  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Wales 
Population:
136  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/31/2008 
Community Sanitation Overview:
Two new groundwater wells have been drilled and a pumphouse and watering point enclosure are needed. Currently, water is derived from Gilbert Creek during the summer, and residents haul treated water from a 500,000-gal. storage tank at the washeteria. Some residents use untreated water from Village Creek. Almost all residents use honeybuckets, and very few homes currently have plumbing. A honey bucket haul system is in place. The school and clinic are served by piped water. There are two septic systems - one for the school and a second for teacher's housing, the clinic, and the city building. A master plan to implement a piped system has been completed. There is no permit for the landfill. Village Safe Water is applying for sanitation grants for the community to upgrade the washeteria. The new facility will most likely be a multi-purpose facility to include the washateria, water plant, and a new clinic. The condemned City dome will probably be torn down and its location used for the new multi-purpose facility. 
RUBA Status & Activities This Qtr:
Nome RUBA staff traveled to Wales to conduct a re-assessment of essential indicators. The City of Wales failed the assessment last year in part due to a back tax issue. Since then, the City has paid enough money toward the outstanding balance sufficient to have the tax lien lifted. In addition, the Wales utility staff has done an excellent job in meeting the organizational management essential indicators and continues to follow their budget. In addition to conducting the on-site re-assessment this quarter, Nome RUBA staff assisted Mayor Crisci with a land records search for ownership of bulk fuel tanks in Wales. The community land status map does not include a notation about ownership of the tank farm. During the search, Nome RUBA learned that in the early 1990's Alaska Energy Authority (AEA) had a bulk fuel project in Wales. Nome RUBA referred Mayor Crisci to AEA for more information regarding this matter. The City of Wales meets all essential management indicators at this time.  
RUBA Activities for the Coming Qtr:
Nome RUBA staff will continue to provide assistance..
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
17 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.
Yes 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
Yes 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.
Yes 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 City of Wales budgeted $10,800 for honey bucket haul collection, yet may potentially collect $11,280. The City projected water sales revenue at $20,000 but will bring in over $27,000. In addition, the FY08 budget was amended to include the Norton Sound Economic Development Corporation community benefit shares which have become available on an annual basis. The City will most likely continue using these funds for heating fuel purchases. Gaming and other City revenue funds are used to subsidize the remainder of the utility expenses. The City Council is currently receiving monthly financial reports. The Mayor and the City Clerk provides the council with verbal reports made on the record and the Water Plant Operator provides written reports.

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
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
The City of Wales utilizes a manual financial record keeping system. The clerk does a good job at recording all cash transactions. Entries are legible and easy to read. The City keeps an updated spreadsheet to record Honey Bucket Haul receipts by customers. Also, the City keeps a daily log for all Washateria tokens sold, bulk water sales, and all cigarettes sold. The City Clerk does a good job of consistently sending out monthly statements to customers. The only major past due bill is owed by the Bering Straits School District for bulk water purchases in the amount of $6,642. Collection notices have been sent to the school and Mayor Crisci has followed through with a phone call to the Principal who in turn has contacted the School District. Mayor Crisci has been assured that the District will pay the bill.

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
The City of Wales is in full compliance with all employment tax obligations. The Notice of Federal Tax lien filed against the City of Wales on January 20, 2005 (recorded on February 23, 2005 at 11:36 a.m.) was released by the IRS on May 4, 2005. Research indicates that there are currently no encumbrances against the City of Wales and the Internal Revenue Service deems them compliant at this time.

Personnel System

Essential Indicators
Answer Question
Yes 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.
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 of Wales is currently insured by the Alaska Municipal League, Joint Insurance Association (AML-JIA). The City of Wales has not yet reviewed their draft Personnel Policies and a few council members have expressed a desire to prioritize and accomplish this task in order to improve employee morale and to provide consistent treatment of all employees.

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
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 City is the owner of the water and honey bucket utility. The decision making authority and enforcement of the utility policy is vested in the City Council. The City Council is responsible for billing and maintaining custoer files. An organizational chart has not been located.

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".
No 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
The Utility Operator, Larry Sereadlook, is not yet certified in Water Distribution and Water Treatment at the Operator in Training (OIT) level. Mr. Sereadlook will continue working toward becoming certified. In partnership with VSW, the City has project funding for a water transmission line and plant upgrades. The City of Wales is on the Significant Non-Conpliance Tier List for VSW Funding Condition Use as of October 2007. This is primarily due to the system needing treatment upgrades to address turbidity treatment technique/HaloAcetic Acids (5 analytes) maximum containment levels exceedence and Copper action level exceedence.