Quarterly Report: 2006, April - June (Q4), Scammon Bay

Community:
Scammon Bay 
Staff:
Paul Chimiugak  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Scammon Bay 
Population:
509  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2006 
Community Sanitation Overview:
The City operates the piped water and sewer system. Water is derived from an infiltration gallery located on a small stream south of the City, is treated and stored in a 100,000-gal. tank. The City Council is the policy making body for the utility. Nearly all homes and the school are connected to the piped water and sewer system and are plumbed. Only a few residents use honeybuckets, typically due to frozen pipe damage. There is no washeteria. A new landfill and access road were recently completed, but funds are needed for equipment. AVEC and the City are interested in developing a small hydroelectric plant. 
RUBA Status & Activities This Qtr:
The RUBA Staff has not traveled to Scammon Bay in couple of Recent Quarters. There are currently 64 homes, 5 institutions connected to the Water and Sewer piped system. The Lower Yukon School District is charged a flat rate of $3,000.00 a month. 
RUBA Activities for the Coming Qtr:
Re-assessment of community utility. Renewal of the RUBA Agreement.
Scores:
 
Essential Indicators:
25 of 27
Sustainable Indicators:
17 of 27
Total Score:
42 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.
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.
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 Bethel staff has received a Monthly Financial Reports from the City of Scammon Bay starting from January 2006 to May 2006. The Administrator and Bookkeeper were given a sample MFR format that is much more easier to read. It shows the budget, how much is spent or recieved for the month, how much had been spent or received to date and how much is actually left in the budget. This reporting system is now in place and being utilized by the administration for all departments. The Water and Sewer is doing well according to the Monthly Financial Reports, with the revenue exceeding the spending in the department. Month of March 2006 shows a slight loss but was covered in the following two months thereafter. The amounts received and spent are below the monthly budgeted amounts. If this trend continues the budget for the utility department may have to be amended/adjusted to stay within the actual reciepts and expenditures. According to the recent Monthly Financial Reports, the utility is functioning as it was designed due to enforcement of the billing and collection policy. What really helps is that Lower Yukon School District (LYSD) made a lump sum payment of $87.3K, which makes them current with their account at this time. About half of the W/S customers are deinquent of up to four months. All the institutions are current with their accounts. The City and Utility are free of any debts at the moment. Only when they purchase supplies or such do they have a bill to pay. The administrator has an AEA loan application to plan a fuel purchase.

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 Monthly Financial Reports indicate that the billing and collection improved over the past year, but this is still not satisfactory at collection rate of 50%. The only loss so far was in the month of March 2006, but the loss was covered in the following months.

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.
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
A signed Authorization to Request Federal Tax Information was sent to a Taxpayer Advocate and she found that they were deemed compliant by IRS. They are in compliance with federal employment and/or excise tax filing requirements, with Federal Tax deposit requirements and no recorded notice of Federal Tax Liens.

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
Their insurance is set to expire on July 1st of 2006. The city will be without insurance for the next couple of months until the PILT funds are disbursed to the coummunities. The city still has not adopted a personnel evaluation process at this time.

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.
No 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
James Akeralrea was informed that there might be UTM training on Financial Management some time in October 2006. A survey will be sent to the city for names of people that will attend. An organizational chart still has not been developed, the Bethel office will provide a sample chart for the city administration to work with in setting one up.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
No The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
No 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.
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.
Yes 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
There is a new Water Treatment Plant Operator. He is not certified despite the fact that he had training and did not pass the exam. He is scheduled to attend an OIT training on August 8-10, 2006 in Bethel through YKHC/OEH. The YKHC/RMW had 'trained' the current operator on where to get water samples for testing.