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

Community:
Kiana 
Staff:
Margaret Hansen  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Kiana 
Population:
391  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/6/2009 
Community Sanitation Overview:
The City of Kiana operates the piped water and sewer system and maintains a central watering point where residents come to haul water to their residences. The City also maintains honeybucket pits and a sewage lagoon. The City Council is the policy making body for the utility. A 200,000-gallon steel tank is intermittently filled from two wells near the Kobuk River. Water is chlorinated prior to distribution through buried water mains. Piped water and sewer are provided to 75 homes, the clinic, school, and community hall. Kiana maintains a 6-inch buried gravity sewer system, which drains to a lift station and is pumped through a buried force main to the sewage treatment lagoon northeast of the village. A few households haul water and use honeybuckets or septic tanks. The landfill is located west of the sewage disposal lagoon. The site needs to be relocated. A water and sewer master plan is being completed for needed infrastructure improvements. They are currently having problems with the new lift station installed. ANTHC worked on the new lift station but still needs to make sure when a power outage occurs that the pump in this new lift station will automatically turn back on. The city reports that they have received a new pump and the lift station issues are fixed. 
RUBA Status & Activities This Qtr:
Kotzebue RUBA staff traveled to Kiana August 3-6, 2009. The purpose of the trip was to provide financial training to the acting city administrator. The acting administrator is considering applying for the position and requested training on drafting the annual budget. As the city and tribe terminated their Memorandum of Agreement to be under thribe, the city needed to complete their own utility budget. RUBA also provided training to the council in the budget drafting and adoption process. The council had received an Alaska Energy Authority bulk fuel loan conracting the Bureau of Indian Affairs for the purchase which brought down the price of fuel. The council had inventory before the delivery so it is still charging the the old price until the pass a budget and all the Citgo fuel is distrubuted. The engineer reported they fixed the lift station issues but now the force main froze up because the glycol line does not work. They do not have the funds to repair the glycol leak at this time.  
RUBA Activities for the Coming Qtr:
RUBA staff will try to make it to Kiana after elections to continue to train her or the new administrator onced hired permanently.
Scores:
 
Essential Indicators:
23 of 26
Sustainable Indicators:
14 of 27
Total Score:
37 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.
No 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.
No 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.
No YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The city has seperated from the tribe doing away with the Memorandum of agreement but still has not been able to generate their own monthly financial reports although she does provide the council with a monthly manager's report. They have adopted their own fiscal year budget listing all revenues and expenses of the utility and are current in paying all electric bills. Without a monthly financial report, I can see that they are receiving enough revenues to cover their expenses nor do they have any savings to be able to cover repair and replacement of their system. They have received another barge shipment of fuel and gas enough to leave them with a little inventory before the next barge arrives next spring.

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 utility has a policy and actively follows it by meeting on a regular basis receiving an accounts receivable and payable list generated by quickbooks. They currently are still utilizing the tribes bookkeeper who uses quickbooks for payroll, cash receipts and cash disbursements utilizing their budget as the chart of accounts who does the monthly bank reconciliations. The purchasing system consists of the administrator reviewing the budget and quickbooks report to see that they still is sufficient funds left in that line item before approving.

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 tribe bookkeeper still uses quickbooks to accurately track and report payroll tax liabilities. The bookkeeper is keeping current with all tax reports and payments. The administrator and bookkeeper did provide me a copy of the payment to Alaska Department of Labor for pass ESC debt. They also have contacted them to remove their name off the lien watch report whom have not removed their name as yet because they now owe $10.00 in penalty before their delinquent check payment cleared.

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.
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 had a workmen's compensation coverage and posted from Alaska National Insurance Company for the period of 2/25/2009 to 2/24/2010. The council wishes to update their policies and have reviewed by a lawyer. Even though they do have job descriptions for all positions, no known evaluations have been done this year. They do have an adequate written hiring process and has personnel file folders with all the require documentation and provides staff 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.
No 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 has adopted the necessary ordinance to give it authority with an adopted organizational chart so the council is the known owner who meets monthly enforcing their policies abiding by the open meetings act. The council is soon to meet to decide on a permanent administrator and will discuss options for a city bookkeeper seperate from the tribe. They may continue to utilize the tribe bookeeper for a fee as budgeted or go with assisted payroll with Intuit for payroll, tax deposits and reporting.

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.
No Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
No 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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The main operater is certified for wastewater collection P and is planning to attend the next training in Kotzebue. The system is on the SNC list. AS of June 09, system has 0 of 12 months towards RTC and must submit TTHM/HAAS samples and continue dist. C12 monitoring to RTC. Although the manager receives monthly reports from the operator, she has not had time to routinely spot check the facilities on a routine basis because of staff turnover. No known safety meetings have been conducted. ANTHC is traveling into Kiana in October to hopefully make sure that the lift station problem which was responsible for the freeze up in a portion of the town.