Quarterly Report: 2011, January - March (Q3), Akutan

Community:
Akutan 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Akutan 
Population:
859  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/4/2011 
Community Sanitation Overview:
Water is supplied by a local stream and dam, originally constructed in 1927. Water is treated and piped into all homes. A project is underway to develop two new water catchment dams, and construct a new 125,000-gal. water storage tank and treatment plant. Sewage is piped to a community septic tank, with effluent discharge through an ocean outfall. Refuse is collected three times a week; a new landfill site and incinerator were recently completed. The City recycles aluminum. Trident Seafoods operates its own water, sewer and electric facilities. Electricity is provided by Akutan Electric Utility. 
RUBA Status & Activities This Qtr:
An FY11 budget estimates utility revenues and expenditures will be $150,000. Akutan charges no utility fees and will subsidize utility expenses from general fund revenues. 
RUBA Activities for the Coming Qtr:
RUBA staff will maintain contact with the community and update RUBA as necessary. Assistance will be provided as requested.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
16 of 27
Total Score:
41 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
Yes 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.
No 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 of Akutan uses the fiscal year that starts July 1. FY11 budget was received from the City Finance Manager. The budget does meet RUBA requirements as it lists revenues and expenses with line item descriptions. The city does not charge for water/sewer services as Akutan has a raw fish tax which allows them to subsidize these services with general funds. They also have a healthy savings account for repair and replacement. The administrator stated that the utility is analyzing the utility expenses and considering charging customers. The monthly financial report for January was received on March 1, 2011 and has the water/sewer expenditures at 47 percent. The 47 percent is $51,025.60 of the budgeted $96,290 for FY 11. The Monthly Financial Report for February was received on March 2, 2011, and has the water/sewer Expenditures at 43 percent. The 43 percent is $54,462.49 of the FY 11 $96,290 water/sewer budget. Akutan provides water/sewer and Library/Museum services without charge. They do provide and charge for the following services: electricity, fuel distribution, cable TV, garbage haul, and harbor/dock.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
N/A 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.
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 City of Akutan maintains accounting records using a fund accounting software package. A part-time finance director works in Anchorage and travels to Akutan on a quarterly basis to maintain the software and accounting records. The City of Akutan does not charge for utility services as the general fund subsidies are used to cover costs, operations and maintenance of the utilities. On the FY11 budget this is listed on the General Fund Transfers as an expenditure and the Utility has a line item on the revenues. Amount transferred is $150,000. There has been a staffing change within the City of Akutan, the Utility Clerk has been appointed to the Akutan City Clerk and a new Akutan Utility Clerk was hired. This and a new accounting software has made monthly financial reports to be overlooked until the staff are trained in the new accounting software. The financial manager has stated that these will be generated and sent to the Anchorage RUBA staff as soon as possible.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No 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 January 6, 2011, report from the IRS Taxpayer Advocate Service has granted the City of Akutan compliance with federal tax deposits and there is no active lien. There is an issue of federal tax filing. ESC statement from March 25, 2011 has not granted the city tax clearance.

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.
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.
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
Worker's compensation insurance is verified with a call to AML/JIA on July 6, 2010 and is valid through July 1, 2011. Employment recruitment is done within the city. A notice of job openings is posted and the city council approves all hires. Requiring the city council to approve hires eliminates any potential discrimination charge in a small community. Currently there is no evaluation process in place. Employees are encouraged to continue professional growth and training is supported.

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 Akutan Administrator maintains an office in Anchorage and travels to the community when necessary. The Mayor and City Council are responsible for on site supervision. The has a part-time water operator and is paid $200 per month. His additional job duties include the dock, boardwalk maintenance, warehouse duties, and general maintenance of city facilities. The city has an organizational chart that reflects the present city organization and lines of authority.

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.
No 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
The City has one operator certified in Small Water System and Water distribution and certificates expire on December 31, 2010. The water operator reports verbally to the mayor. The city administrator provides written reports to the governing body. With only one person working part-time, the issue of safety meetings has not been addressed. The water utility has critical spare parts on site but does not maintain a list. All water testing requirements are being met and recorded properly. APIA RMW visited and provided a copy of the Preventative Maintenance Plan on August 12, 2010.