Quarterly Report: 2009, April - June (Q4), Scammon Bay

Community:
Scammon Bay 
Staff:
Susan Charles  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Scammon Bay 
Population:
517  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
8/10/2009 
Community Sanitation Overview:
The city operates the piped water and sewer system. Water is derived from an infiltration gallery located on a small stream south of the city. The existing water system has been in place for about 30 years. The city serves a total of 62 residents and 9 commercial buildings. Six newly constructed homes have not been connected to the piped water and sewer system. The city has been able to maintain the system successfully; however, due to the design and age, it has had many problems. A boil water notice has been in effect since 2007. The city is treating the water with chlorine but does not filter the water because there is no filtration system. The utilities water storage tank pump is not working, and residents experience loss of water in the winter due to freezing of the distribution lines. The city does not have a washeteria. The city council is the policy making body for the utility.  
RUBA Status & Activities This Qtr:
Bethel RUBA staff assigned to Scammon Bay changed this quarter. The city manager and bookkeeper had recently attended a risk management workshop conducted by the Alaska Municipal League. The existing water system has been in place for about 30 years. The city has been able to maintain the system successfully, however due to design and age, it has many problems. A boil water notice has been in effect since 2007. The city is treating the water with chlorine but does not have a filtration system in place to filter the water. The water storage tank pump is inoperable. Residents experience loss of water in the winter due to freezing of the distribution lines. The city hopes to replace the old system when funding is available. Currently the city does not meet all essential indicators which is a requirement prior to a funding agency releasing construction funds. RUBA staff will continue to offer assistance with meeting the deficient management indicators. Ruba staff provided Scammon Bay with information regarding the newly contracted QuickBooks Helpline. Communities may call the helpline for assistance with accounting issues. Assistance is provided through remote access, email, telephone or submittal of data via thumb drives. If all else fails, the contractor may make a one time on-site visit to work directly with utility staff. 
RUBA Activities for the Coming Qtr:
Provide on-site RUBA Assessment and assist in indicators that are not being met. Contacted City re: new assigned LGS
Scores:
 
Essential Indicators:
24 of 27
Sustainable Indicators:
18 of 27
Total Score:
42 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.
No 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.
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 of Scammon Bay operates on a state fiscal year; the budget for FY09 was initially approved by the city council in September of 2008. However, the budget's revenue and expenditure summary section had not been completed. The city provided an ordinance adopting the amended budget in November of 2008. The monthly financial report lists expenses and revenue categories with columns for the FY 09 budget amount, monthly, year-to-date and remaining balances. The city is not current in paying its water\wasterwater electric bill and has not provided a current statement from Alaska Village Electric Cooperative (AVEC). The last payment paid by the city is October of 2008. The city has 9,100 gallons of fuel to sufficiently run the utilities until the spring order is received. The city is receiving revenues from equipment rentals and other funding sources to subsidize operating expenses. The manager provides a verbal report to the council at regular scheduled monthly meetings. The monthly financial report shows that there are line items with expenditures higher than what was budgeted for the utility.

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.
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
Bills are mailed on or before the end of each month and are due prior to the 20th day of the following month. A notice of delinquency is mailed out on or after ten days when the account becomes delinquent. After a bill has reached an amount equivalent to three months of service, the city will send a shut off notice to the customer. The city uses QuickBooks to calculate payroll. The NEBS (manual)system is used for accounts receivable and payable. The city's administrator and bookkeeper are approved to sign purchase orders; however, the monthly finance reports shows that there are line items with expenditures higher than what was budgeted for the utility. This indicates that the budget is not checked prior to approval of expenditures.

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.
No 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
Based on information received from the IRS on June 3, 2009, Scammon Bay is non-compliant with filing 941 reports. The Alaska Department of Labor reported that the city is current with state ESC tax requirements.

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.
No 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 of Scammon Bay has posted the workers compensation and is covered through 7/1/2008 to 7/1/2009. The city has adopted and uses a personnel policy that was provided by DCCED(DCRA) and contains appropriate topics and language. The manager verbally hires new employees and gives verbal performance assessments when needed. The city has personnel folders on employees that contain completed I-9 forms. Three months is the standard probationary period for permanent employees. The manager provides on-the-job training for new employees and other training is provided when funding is available.

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 City of Scammon Bay is known to manage the utility. The city council meets regularly once a month. The city manager and bookkeeper have had training through DCCED (RUBA) and AML as well as extensive work history in local government and utility operations. The operators have on-the-job training and are working toward certification. The city does not have an organizational chart. The manager and the bookkeeper report to the mayor. All other staff in the utility report to the city manager.

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.
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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The water operators are scheduled to receive training through Yukon Kuskokwim Health Corporation/Office of Environmental Health program. The city has a CCR for Scammon Bay's public water system. The utility's water system is on the significant non-compliance list for a non-filtration issue and has been on a water boil notice since 2007.