Quarterly Report: 2012, April - June (Q4), Ouzinkie

Community:
Ouzinkie 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Ouzinkie 
Population:
155  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2012 
Community Sanitation Overview:
Water is supplied by a dam on Mahoona Lake and Katmai Creek and is treated and piped throughout the city. The system serves 80 homes and commercial facilities. A piped wastewater system, central wastewater treatment system, and sludge disposal site are used for waste. Over 90 percent of all homes are completely plumbed. The city needs a 400,000-gallon water tank for adequate treatment and storage. Refuse is collected by the city. A new landfill site was recently completed. The community participates in a hazardous waste collection program, but would like a facility to recycle scrap metal. Electricity is provided by City of Ouzinkie.  
RUBA Status & Activities This Qtr:
A wastewater line broke under a resident's home and may need to be dug up from the house to the nearest lift station. Anchorage RUBA staff relayed this information to the community's Remote Maintenance Worker (RMW) to confirm that the RMW program is working on this issue. In May, RUBA staff received a report from the State Dam Safety Engineer issuing a warning that the Mahoona dam in Ouzinkie is in poor condition and is at risk of failure. Although a dam, breach is hard to predict; it can be exacerbated by seismic activity. The bunkhouse, being one of several pieces of infrastructure that could be at risk, has been ordered to be evacuated until rehabilitation can be accomplished.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue to work with the community to offer any support needed. A rate study will be submitted to the city for review.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
23 of 27
Total Score:
49 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
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.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The city adopted its FY12 budget, which includes the enterprises budget, by ordinance, on June 28, 2011. Water sales are recorded in the enterprise fund with a listed revenue of $42,800 and expenditures of $57,139. There is a listed transfer of funds from the Focus Energy (city electric utility) budget to the Water Use Fees and from the Administration and Finance budget to the utility to subsidize the water utility. The city adopted its FY13 budget, by ordinance, on June 26, 2012. Water sales have anticipated revenues of $45,800 and expenditures of $66,100. Funds will again be transfered from the Focus Energy (city electric utility) budget to the Water Use Fees and from the Administration and Finance budget to the utility, to subsidize utility costs. The budget is regularly reviewed and budget amendments are completed and adopted as necessary. The budget is realistic and includes payroll, and all other normal operating expenditures for a utility enterprise. The city has a utility bookkeeper and assistant that use QuickBooks and Excel to generate monthly financial statements. The city owns the electric utility and uses QuickBooks to document interoffice transfer of funds for electric usage. The city has a financial plan to purchase fuel throughout the year. There is a line item for equipment repair and maintenance on the budget, but there is no separate account for repair and replacement funds. The city has revenues that exceed the expenditures within the enterprise budget. Budget amendments are done as needed. The city recently had a workshop regarding utility rates. The workshop indicated that a rate study is needed to generate rates to cover all operating expenses.

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 Ouzinkie Code of Ordinances 13.04.030 addresses the water and wastewater utility collection policy. Invoices that include power usage, Power Cost Equalization (PCE) subsidy, water, wastewater, and garbage charges are sent to city customers by the fifth of every month. The accounts receivable report generated from QuickBooks shows the highest amount due to the city for residential utilities for over 90 days is $661. There are no vendors listed in the accounts payable that are 90 days past due. The city uses QuickBooks to process all payroll expenses for the water utility. The city uses a sales book to generate receipts for cash payments and QuickBooks for credit card payment receipts. QuickBooks is used to record all cash disbursements. The chart of accounts has all bank accounts, accounts receivable, assets, accounts payable, liabilities equities, income and expense accounts. QuickBooks is also used to process bank reconciliations. All purchase requests are submitted in writing, recorded in the City of Ouzinkie - Purchase Orders log book, and reviewed by the mayor.

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 IRS report dated June 21, 2012 shows that the city is compliant with required federal tax deposits, filing and has no record of a lien. The Department of Labor and Workforce Development, Employment Security Division's report from June 13, 2012 states that the city is in compliance with state tax filing and deposits and is not on the March-April 2012 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 a AMLJIA policy that is effective through July 1, 2012. AMLJIA has confirmed that the city will continue to purchase insurance coverage until July 1, 2013. Employee policies include job descriptions, employment reference checks and an introductory period of 90 days. Performance evaluations are scheduled approximately every 12 months, coinciding with the anniversary of the employee's original hire date. The hiring process is stated in the employment section of the personnel policies and utilizes all information in the job application to determine the potential employee. The city has personnel folders on all employees that can be accessed through the city clerk. The personnel files have the employee's job application, performance evaluations, letter of acceptance, I-9 and W-2 information. Trainings are offered to employees, within budgetary considerations.

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 the governing body meets on the second Thursday of each month. The city council is active in making policies and enforcing those policies. There was a workshop in January 2012 to inquire if utility rates need to be adjusted to cover expenses. The manager is the mayor, who is trained in utility management and has a working knowledge of the city utilities. The primary operator is certified in Water Distribution 1 and Water Treatment 1, both due to expire on December 31, 2014. The secondary operator has a Water Distribution Provisional due to expire on December 31, 2013. Title 13 in the Ouzinkie Code of Ordinances has all the rules and regulations needed to operate a utility. An organizational chart is in the water utility business plan from Alaska Native Tribal Health Consortium (ANTHC)that the city has adopted. The city meets as required by local code and complies with the Open Meeting Act by placing notices prior to the meeting in three public places.

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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The primary operator is certified in Water Distribution 1 and Water Treatment 1, both due to expire on December 31, 2014. The secondary operator has a Water Distribution Provisional due to expire on December 31, 2013. The city has the Community Sanitation Facilities, Operations and Maintenance Manual from ANTHC that includes the preventative maintenance plan for the water utility. The operators routinely spot check the water treatment plant and monitor the water storage tank. The water storage tank recently suffered an overflow. The overflow produced ice that blocked the utility ladder to the access door on the top of the water tank. This overflow occurred during a time that all operators were off site and weather prevented their return to the community. Operators do not hold safety meetings and there is no safety log to record safety meetings. There have been no major outages of the utility due to managerial issues. The utility is operating as proposed and is a Water Treatment Class 1 water system. The operators provide the mayor with updates and the mayor then informs the council when policy making decisions are needed. The water utility is not listed on the April 2012 Significant Non-Complier (SNC) list. The utility does not have an inventory control list or a critical spare parts list.