Quarterly Report: 2009, April - June (Q4), Alakanuk

Community:
Alakanuk 
Staff:
Susan Charles  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Alakanuk 
Population:
681  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
8/10/2009 
Community Sanitation Overview:
The City of Alakanuk operates the piped water and sewer system, the central watering point, flush tank and haul system, and washeteria/sauna service. The city council is the policy making body for the utility. There are 135 utility customers hooked up to the system. Water is derived from the slough, treated, stored in a tank, and piped to most of the community. New facilities include a water treatment plant, heated 300,000-gallon water storage tank, vacuum sewage plant, sewage lagoon, arctic piping and household plumbing. The new subdivision has been completed with all homes connected to the piped system.  
RUBA Status & Activities This Qtr:
Bethel RUBA staff traveled To Alakanuk in January of 2009 to provide assistance with the city's budget. The City Administrator had prepared a draft budget with the assistance of the water plant operator. Amendments were needed regarding the IRS debt and acceptance of revenue sharing payment. With RUBA assistance, a draft budget was completed, however, to our knowledge it has not been adopted. Monthly bank reconciliations were not completed for all utility accounts. The administrator stated he would work with the bookkeeper to complete this and submit documentation to RUBA as required in the sustainable indicators. On April 30, 2009 Mike James, administrator for the city, stopped by our office and I gave him assistance in completing a budget for the 2009 Community Revenue Sharing funds. The budget was adopted and a copy provided to Bethel regional RUBA staff.  
RUBA Activities for the Coming Qtr:
RUBA staff will monitor the utility and provide assistance when requested. City contacted re: new assigned LGS
Scores:
 
Essential Indicators:
25 of 27
Sustainable Indicators:
24 of 27
Total Score:
49 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.
No 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's administrator assistance was provided to complete the city's budget by RUBA staff and RUBA was provided the copy of the budget and ordinance from the city council. The city currently has an installment agreement with Alaska Village Electric Cooperative to repay past due electric bills. A fuel purchase of 8,000 gallons had been made and there is an additional 10,000 gallons fuel supply in the city holding tanks. The monthly manager's report is given verbally to the council.

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.
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 utility ordinance was effective as of March 2008 and includes a collection policy. The grace period is 45 days for past due utility bills. The administrator enters and calculates payroll with QuickBooks Pro. A manual ledger is being used for accounts receivable to track utility payments.

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
The IRS deemed the city in compliance with federal employment tax filing and deposit requirements; however, the city owes federal taxes for 2004 and 2007. The city has made a repayment agreement and is current. The Alaska Department of Labor reported that the city is current with state ESC tax requirements.

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
Alakanuk is covered for workers compensation through Umialik Insurance Co. effective to 2/10. Job openings are posted in at least three public places. The probationary period is three months from the date of appointment. The administrator provides on the job training for new employees and other training is given if funding is available.

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.
No 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 of Alakanuk is known to manage the utility. The city council meets regularly once a month. The administrator has been in his position for about two years and has received grant, QuickBooks, and RUBA utility management training. The city is currently without a bookkeeper and the administrator has assumed those duties. The water operator has Water Distribution 1 and Water Treatment 1 certifications.

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.
Yes 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 water operator has water distribution and water treatment certifications. Alakanuk Water System is on the significant non-compliance list.