Quarterly Report: 2007, July - September (Q1), Pelican

Community:
Pelican 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
First Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Pelican 
Population:
115  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/29/2006 
Community Sanitation Overview:
Pelican is located on the northwest coast of Chichagof Island on Lisianski Inlet. Most of the community is built on pilings over the tidelands. Pelican has a maritime climate characterized by cool summers and mild winters. Summer temperatures range from 51 to 62; winter temperatures range 21 to 39. The City recently acquired the piped water system from Pelican Seafoods, A subsidiary of the Kake Tribal Corporation. City water is derived from a dam and reservoir system on Pelican Creek, and is treated with chlorine. 58 of 75 residences are connected to the piped system. The City completed a piped sewage system with ocean outfall in 1989; about 75% of homes are connected to it. The system uses four 10,000-gallon septic tanks and the City hires a disposal truck from Juneau to pump sludge about four times a year. The City provides garbage collection services, recycling, and incinerates the refuse at the landfill. Electricity is provided by Pelican Utility Company.  
RUBA Status & Activities This Qtr:
The latest Assessment of Management Capacity Indicators for Pelican was conducted on 5/11/05. At that time, Pelican met all essential capacity indicators. No RUBA-related activities occurred in the community this quarter 
RUBA Activities for the Coming Qtr:
Technical assistance will be provided as requested.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
24 of 27
Total Score:
51 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.
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.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
Pelican is operating with a balanced and realistic budget. The water, sewer, and garbage budgets are part of the overall city budget; revenue and expenses are listed in the utility sections of the budget. User fees do not produce sufficient income to cover operating expenses and other sources, such as the General fund, are used to cover expenses. The Utility budget is included in the overall City of Pelican Budget. The City engages the auditing firm, Altman, Rogers and Co, on an annual basis. The City is unable to contribute monthly to R/R costs, but does so when it can. A monthly managers report is not prepared although the City does prepare a monthly profit and loss statement that includes revenues and expenses for the utility. Expenses and revenues are in line with projections.

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 City of Pelican has adopted and actively follows a collections policy, and utility bills are distributed on a monthly basis. The adopted account receivables system documents customer payments and reports past due accounts with corresponding amounts. The City actively pursues delinquent utility accounts. The City is currently using a Windows 2000 computer platform to run the QuickBooks Pro accounting programs for their accounts receivable, accounts payable, and payroll. The City Clerk and the Assistant City Clerk are both proficient in QuickBooks. The City maintains written receipt system to record incoming funds and other transactions as a backup for the QuickBooks system. The City has a chart of accounts. The City Clerk completes monthly bank reconciliations. The City uses a purchase order system for all purchases and maintains a cash disbursement system to record how money was spent.

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 Pelican uses QuickBooks Pro to calculate, track, and report payroll liabilities. The City of Pelican is current with tax reports and tax deposits. The City has direct deposit for taxes. The City has not received any IRS or DOL 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.
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.
No 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 carries workers compensation insurance through AML/JIA. Pelican has adopted a personnel policy beyond what is in their Municipal Code. The City has adequate job descriptions for all municipal positions and a formal evaluation process. A satisfactory hiring process is documented in the City's municipal code. There are personnel folders for every municipal employee, which contain recommended documentation including an I-9 and job application, but not a letter of acceptance. The City has a probationary period for new hires that includes systematic orientation, job training/oversight, and evaluations. The City provides training opportunities as needed.

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 is active in policy making for the utility. Bookkeeping duties are split between the City Clerk and the Assistant Clerk. Both are proficient with the QuickBooks Pro software program and have had their positions for three-plus years. The Assistant Clerk has attended two UMT courses. The Utility Manager has water and sewer duties and other city responsibilities such as snow removal, roadwork, and being the fire chief. An operator who also has other city duties aids him. They have the needed levels for a system of Pelican's size. The City does have an organizational chart, and the City Council meets monthly and complies with the Open Meetings Act requirements.

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".
Yes 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 City of Pelican operates the water and sewer utilities and is actively engaged in making utility policy. There currently are no fees for sewer use, and the water rate is one of the lowest in Southeast Alaska. Buildings attached to the water system need to run water constantly during the winter months so that the line will not freeze. Most of the city is served from a single water pipe. It is common to walk down the boardwalk and hear and see treated, unused water pouring from underneath city structures. The water utility operators have achieved the necessary certification to operate the utility and are actively considering further training. The utility workers hold OIT certificates in Water Distribution and Water Treatment, Level 1 in Wastewater collection, and Level 2 in Water Distribution and Water Treatment. The water manger reports the utility has a preventative maintenance plan. The manger receives verbal O and M reports and does conduct random spot checks for maintenance items. The sewer system is prone to problems and outages due to aging equipment. The current water system is operating at the proposed level.