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

Community:
Chevak 
Staff:
Ken Berlin  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Chevak 
Population:
916  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/29/2006 
Community Sanitation Overview:
The City of Chevak operates the piped water and sewer system, the central watering point and the honeybucket haul. The City Council is the policy making body for the utility. Construction began in 1995 to provide piped water and sewer to homes and the school. Completed projects include a new landfill, a washeteria renovation, a new watering point, water treatment plant, a 150,000-gallon water storage tank, sewage lagoon, and a vacuum sewer plant. Water and sewer mains and household connections are completed. Currently they have 193 units on line. Most of the residents except one home are connected to water/sewer. Some homes still have rain catchments. The new school construction was completed in August 2003. The construction company connected the school and teacher housing to the water/Sewer system. 
RUBA Status & Activities This Qtr:
This quarter, the Water/Sewer system continues under the management of YKHC/Rural Utility Cooperative (RUC). Monthly financial reports have been received by RUBA. This quarter RUBA staff has kept in contact, working with this City through phone and fax. This quarter, activities for this City reveals that it continues to experience financial hardship. AVEC repayments are not kept current. As for the IRS and DOL tax problems, an IRS levy has been issued to the State of Alaska for any appropriated funds for the City of Chevak. The City has again fallen behind on filing the Employers Federal Liability 941 form and deposits. With the levies of both DOL and IRS, the City is left with hard decisions regarding the revenues. The Mayor has been out of town fire fighting. Once he returns a meeting with the Administrator and Council will take place regarding these levies. They will have to revisit and discuss options for the City operations. The City currently has only one Administrative staff which is the Administrator. 
RUBA Activities for the Coming Qtr:
RUBA continues to work with the City /RUC toward meeting the essentials. This is an on-going process involving, support via phone, fax, and on-site visits when necessary.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
23 of 27
Total Score:
50 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
Yes 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
All indicators continue to be met through RUC's Monthly financial reports for the Chevak Water/Sewer Utility. All copies have been provided and are in RUBA files.

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
No 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
All essentials continue to be met. The COA for the finance report and the budget do not match. It is recommended that one chart of accounts be used for both reports in a complete and understandable manner.

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 YKHC is currently in compliance. But IRS has a levy against the city for past unpaid payroll taxes. The State Department of Labor office reports the YKHC in complinace at this time.

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 utility has a posted worker's compensation insurance policy from Alaska National Insurance Company for the period of February 1, 2006 through February 1, 2007. The insurance covers all employees of RUC including the operators in Chevak.

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.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
Chevak has signed a Memorandum of Agreement with YKHC-RUC to operate the utility. This is still in existence.

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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
YKHC-RUC hires summer interns to complete the CCR reports. This summer an additional assignement to the intern project will be completion of an inventory control and critical spare parts list. RUC maintains a large spare parts inventory. With the stable labor force and frequent Remote Maintenance Worker on-site support, maintenance requirements are minimal.