Quarterly Report: 2010, July - September (Q1), Shungnak

Community:
Shungnak 
Staff:
Margaret Hansen  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Shungnak 
Population:
269  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/6/2009 
Community Sanitation Overview:
The City of Shungnak operates the piped water and sewer system. The City Council is the policy making board for the utility. The water infiltration gallery was destroyed by ice several years ago, and needs replacement. A reservoir is intermitently filled from the Kobuk River. A portable pump fills a 200,000-gallon steel storage tank through 1,110' of buried arctic pipe. Currently, the City has a new 200,000 gallon tank connected to the new water treatment plant. Groundwater wells have proven unsuccessful; however, they are still drilling to find a new groundwater source. Piped water and sewer services are provided to 53 homes (those at the top of the bluff), clinic, school, and community building. Shungnak has a six-inch buried gravity sewage main, which drains into a small, diked lake one-half mile northwest of the city. The sewer main, lift station, and manholes have been replaced last summer. The effluent is chlorinated before discharge. The City worked with the local IRA to complete the fencing around the landfill. The city purchased the fence and the IRA paid workers to install it. ANTHC found funds to complete the new sewage lagoon last summer. The new water tank and treatment plant projects are completed. The City Administrator would like to have a new master plan completed.  
RUBA Status & Activities This Qtr:
RUBA staff provided on site assistance and training to the administrator on financial management in September. The administrator attended the Employment Tax Workshop sponsored by Department of Commerce, Community and Economic Development, Maniilaq and the Internal Revenue Service. 
RUBA Activities for the Coming Qtr:
RUBA will continue to monitor progress and update the assessment as soon as new information is provided.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
24 of 27
Total Score:
50 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 city has passed and adopted a realistic budget. In reviewing her monthly financial report she submits to the council monthly, it shows that she is receiving enough revenue to cover her utility expenses and revenues are above those budgeted and her expenditures are below those budgeted. She provides the council with a monthly report which shows though that she does not have excess funds to cover repair and replacements cots.

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 Administrator is doing very well in this area. This city has adopted a collection policy and actively follows it who bills customers monthly. Although she received training on quickbooks, she uses the Northwest Arctic Borough system to a track customer payments, accounts payables, payroll system, cash receipts and cash disbursement system to accurately record revenues and expenses that she transfers onto her monthly financial report once she reconciles her bank account. This administrator still follows her purchasing system to approve purchases, she uses her monthly financial report, budget and makes sure she has the cash available before approval.

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 uses the Northwest Arctic Borough manual system to accurately track and report payroll liabilities in order to do the tax deposits and reports timely. This city does not have any past due liabilities.

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
The city just renewed her workers compensation policy that is posted due to expire 2/27/10. The council still needs to update their policy but the one they do have does include a written evaluation process, hiring process and probationary period. They update their job descriptions as needed and tie that description to the evaluation. She maintains personnel folders on every employee that contain all the necessary forms including a change rate sheet. The council did approve of her to attend the Employment Tax Workshop here in Kotzebue in September 09.

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.
No The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The city as the active policy making body, adopted the necessary ordinances giving authority to operate the utility so it is the known entity who oversees the utility operations who enforces the policy. The still enjoy the 20 year or so veteran City Administrator who does all the bookkeeping as well but is training a part time city clerk to do the payroll. The city has adopted an organizational chart that reflects current structure, who meets and complies with the open meetings act.

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.
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
This operator is still just certified for water distribution P and treatment 1 which expire 12/09. He and the alternate are planning to attend the next available training in Kotzebue this fall. He maintains the inventory control list and critical spare parts list. They do have a preventative maintenance plan they use for existing sanitation facilities. They have not suffered any problems with their system so is operating at the level it is proposed. The City Administrator receives a monthly operation and maitenance report and routinely spot checks the facilities to make sure maintenance is being done timely but they have not had a safety meetings as yet. This city is not currently on the SNC list.