Quarterly Report: 2007, April - June (Q4), Manokotak

Community:
Manokotak 
Staff:
Ralph Andrew  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Manokotak 
Population:
437  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
8/6/2007 
Community Sanitation Overview:
The City operates two water/sewer systems in Manokotak, one at the village site and another at the Manokotak Heights area. Water is derived from two wells, is treated and stored in a 150,000-gallon water storage tank. A piped water and sewer system, constructed in 1972, serves roughly 68 households and the school with complete plumbing. Approximately two homes and a duplex have individual wells. Manokotak Heights, located 4 miles to the south, is served by a city-operated well and treatment system, but water shortages have occurred. New HUD housing units were built in 2000 and roughly six additional units are near completion. The school, located in the Heights area, operates its own water and sewer system serving the school and one teacher housing unit. A feasibility study to examine water, sewer and landfill improvements was completed in late 2004. A water/sewer system renovation project is in the design stage. 
RUBA Status & Activities This Qtr:
On May 11, 2007, RUBA traveled and provided technical assistance to City staff in Manokotak and at that time staff worked to satisfy all of the RUBA indicators. RUBA provided a final written report to the City and encouraged continued compliance with RUBA essential indicators, a special grant condition. The City continues contemplating a water sewer rate increase; RUBA can assist with a rate analysis upon request. In other business, the City continues planning landfill and roads improvements; construction of a new airport is underway, and the new village health clinic grand opening was held May 4, 2007. 
RUBA Activities for the Coming Qtr:
RUBA will maintain contact with the City as they strive to maintain compliance with RUBA indicators.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
15 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
No 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.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The City's FY 2007 water/sewer budget is balanced and realistic. Staff is drafting an FY 2008 budget for adoption near July. The Administrator's monthly financial reports, produced with QuickBooks, are consistently delivered at City Council meetings. The utility is current on electric bills and has sufficient fuel on hand. Water/sewer customer collections and associated revenue continue to cover operating expenses. Water/sewer residential rates continue at $40 per month.

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.
No 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 water and sewer ordinance, approved by the Regulatory Commission of Alaska, includes collections procedures. Utility bills are mailed monthly and staff are consistent about sending disconnection notices to delinquent accounts. City staff maintain a computerized accounting system that accurately tracks accounts receivable, accounts payable, and payroll. Payroll recordkeeping is satisfactory. Staff should reconcile bank accounts more consistently.

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 City of Manokotak calculates, tracks, and reports payroll tax liabilities with computerized accounting software. A June 18, 2007 report from the IRS indicates the city is compliant with federal tax obligations.

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.
No 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's workers' compensation coverage, purchased through the Alaska Municipal League Joint Insurance Association, is current through July 1, 2007. Staff continues to review a draft personnel policy and job descriptions with input from RUBA and AML. Personnel folder content is improved and now contains I-9 forms.

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 manages the water/sewer system under an ordinance approved by the Regulatory Commission of Alaska. Administrative utility staff are trained and certified. The City Administrator participated in an IRS sponsored federal payroll tax course during the quarter. The City Council meets regularly and is active in making and enforcing utility policy. Staff are drafting revisions to the personnel policy and plan to include an organizational chart in the document.

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
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.
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
Water operator staff are trained and utilize a preventative maintenance plan for ongoing operations. Utility facilities have not suffered any major operational problems. According to an Alaska Department of Environmental Conservation (ADEC) Significant Non-complier (SNC) list report dated May 7, 2007, City of Manokotak systems are in violation but may return to compliance upon completion of test results. The City submitted its required Consumer Confidence Report water quality report timely. Water operator staff maintain an inventory control and critical spare parts list. RUBA encourages staff to hold safety meetings.