Quarterly Report: 2009, July - September (Q1), Kasaan

Community:
Kasaan 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Kasaan 
Population:
63  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/17/2008 
Community Sanitation Overview:
The City of Kasaan operates and manages a piped water system. The City Council is the policy making body for the utility. Water is derived from a water infiltration gallery (impoundment) at Linkum Creek, is treated, and piped to all homes in the core area. Homes use individual septic tanks and 95% are fully plumbed. The City collects and deposits refuse weekly at the Thorne Bay landfill. Electricity is provided by Alaska Power and Telephone Company. Kasaan is connected via gravel road to the Prince of Wales Island road system.  
RUBA Status & Activities This Qtr:
At the request of the city, RUBA staff travel to the community July 21 - 23, 2008 to assist the Mayor with required financial reporting and drafting an FY09 budget. With this assistance, the city is presently satisfying all of the RUBA essential management indicators. Over the last quarter, the city has made a real effort to improve it's utility collections. The City submits supporting documentation on a quarterly basis consisting of monthly financial reports. The mayor and city clerk attended and completed a RUBA sponsored Organizational Management for Rural Utilities class in Thorne Bay August 11-15, 2008.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue to provide assistance as requested to improve sustainable indicators in the areas of Utility Finance, Personnel System, and Operation of Utility. The Mayor and City Clerk will attend QuickBooks training in Sitka November 17-21,008 and a Personnel Management class in Juneau December 1-5,2008
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
18 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.
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 governing body is fully aware that user fees do not produce sufficient income to cover operating expenses or repair and replacement (R and R) cost. It has been a general practice for the City to use other sources, such as the general fund, to subsidize utility operating expenses and savings are used for unexpected repairs. The community has adequate savings for unexpected repairs and equipment replacement. The Mayor, who also serves as the Utility Manager gives a verbal status report to the Council at monthly meetings and provides adequate financial reports including a profit and loss statement, balance sheet, and budget vs. actual profit and loss. The community has a City-owned bulk fuel facility which includes propane, gasoline and diesel storage tanks. The City receives fuel deliveries from Petro Marine Alaska in Thorne Bay, then retails this fuel to community members on a break even basis. The City has adequate funds available and purchases fuel as needed. The City usually maintains a one to three month fuel supply in the summer months and a slightly higher level of fuel reserve during the winter. Electricity is provided through Alaska Power and Telephone and the City is current on its electric account.

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
Utility bills are distributed on a monthly basis and the provisions contained in the municipal code for the collection of delinquent accounts is followed. Collection actions include the establishment of payment agreements, service charges to restore service, and a 7.5% monthly service charge on delinquent accounts. Disconnection notices are sent to customers 5 days after the account becomes delinquent including the date of service disconnection. The city has recently discovered that service disconnections are for the most part an unenforceable provision of their collection policy. Due to the age and condition of the distribution system and the lack of adequate planning and utility easements, a large proportion of the curb stops are either inaccessible or inoperable. The community is currently discussing the possibility of pursuing delinquent accounts through small claims actions and / or with the aid of a collection agency. The City provides water utility services to the local population for the following fees: Elder Residential = $40.00 per month Residential = $60.00 per month Commercial = $70.00 per month

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 Kasaan uses QuickBooks Pro to calculate, track, and report payroll liabilities. The City of Kasaan is current with tax reports and tax deposits. The City has not received any DOL or IRS letters within the past year.

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.
No 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.
No 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 currently carries workers' compensation insurance through AML/JIA. The policy runs from 07/01/07 through 06/30/08. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. A copy of the workers' compensation policy is posted in accordance with state statute at the following locations: City Hall, Water Treatment Plant, and the Post Office. Kasaan has an implemented personnel policy; however, since the City only has two paid employees, having a written hiring process, job descriptions, and a formal evaluation process has not been a high priority. There are personnel folders for both current municipal employees which contain recommended documentation including an I-9, job application, and other miscellaneous documents. The City does not use letters of acceptance for municipal positions.

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 Council meets monthly, complies with open meeting requirements and is active in policy making for the utility. The City operates a small level T (treated) drinking water system. The operator has a Small-T certification, which is appropriate given the classification of the facility.

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.
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.
Yes 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
The operator has achieved the necessary certifications to operate the current sanitation facilities. The operator has a preventive maintenance plan for the sanitation facilities contained within the utility operations manual. The utility operator consults with the Mayor on a regular basis and provides verbal status reports. The utility completes and distributes its Community Confidence Report (CCR) in compliance with State and federal regulations. As of the 8/8/08 Significant Non-Compliance (SNC) list, the City of Kasaan is listed for failure to meet filtration requirements under the Surface Water Treatment Rules and failure to monitor Total Trihalomethanes and Haloacetic Acids as required by the Stage 1 Disinfectant/Disinfection By-Product Rule