Quarterly Report: 2012, January - March (Q3), Cold Bay

Community:
Cold Bay 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Cold Bay 
Population:
108  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/1/2012 
Community Sanitation Overview:
The City provided services include piped water, piped sewer, landfill, health clinic, dock, EMS/ambulance and a library. The city municipal building includes a fitness center. The community center provides space for training, meetings, or community presentations from outside agencies. Currently, water is supplied by one well and stored in a 213,000-gallon tank. The city has applied for funding to dig a second well. The majority of residents are connected to the piped water and sewer system. A few homes have individual wells and septic systems. The sewage treatment plant can process up to 45,000 gallons a day. Residents transport their own refuse to the landfill located 1.5 miles north of the city. G and K, Inc. provides electricity to the community. The City of Cold Bay uses the fiscal year that starts on July 1. 
RUBA Status & Activities This Qtr:
Anchorage RUBA staff has submitted draft policies for the city to review. RUBA staff has maintained contact with community to keep RUBA updated. On March 12, Anchorage LGS was contacted by the city clerk form the City of Cold Bay in regards to a question about special meetings of the school board. Anchorage LGS provided sections of the Open Meetings Act. AS 44.62.310(a) All meetings of a governmental body of a public entity of the state are open to the public except as otherwise provided by this section or another provision of law. Attendance and participation at meetings by members of the public or by members of a governmental body may be by teleconferencing. 44.62.310(e): Reasonable public notice shall be given for all meetings required to be open under this section. The notice must include the date, time, and place of the meeting and if, the meeting is by teleconference, the location of any teleconferencing facilities that will be used. Subject to posting notice of a meeting on the Alaska Online Public Notice System as required by AS 44.62.175 (a), the notice may be given using print or broadcast media. The notice shall be posted at the principal office of the public entity or, if the public entity has no principal office, at a place designated by the governmental body. The governmental body shall provide notice in a consistent fashion for all its meetings. 44.62.310(h)(3):(3) 'public entity' means an entity of the state or of a political subdivision of the state including an agency, a board or commission, the University of Alaska, a public authority or corporation, a municipality, a school district, and other governmental units of the state or a political subdivision of the state; it does not include the court system or the legislative branch of state government. Anchorage LGS advised that the school board review the bylaws or charter that states when to post notices prior to a meeting. On March 13, Anchorage LGS was contacted by the city clerk in Cold Bay in regards to utilizing government rates for a city employees hotel while training. Anchorage LGS provided a link to the IRS's Governmental Information Letter that may suffice in stating that a political subdivision of a governing entity is tax exempt. 
RUBA Activities for the Coming Qtr:
RUBA staff has and will continue to provide assistance as requested by phone and fax.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
26 of 27
Total Score:
53 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
The FY12 utility budget is within the city's budget. Water revenue totals $90,000 and has an expenditure that totals $68,535 and sewer has revenue of $73,000 expenditures are at $42,242. The remaining funds go into a repair and replacement account. The City of Cold Bay has three accounts that excess funds are placed, one is used to cover any deficits and the others are used for a repair and replacement accounts. The public works director is the water operator, sewer operator and general maintenance worker. The public works director provides a monthly written report of the water plant, sewer plant, dock, landfill and city maintenance. The city gets power from G and K, Inc. and has a current bill but is in the process of releasing the payment. There was a break in time that the city administrator was on vacation and bills from G and K were received but not processed. It is advised that a city clerk position be filled to provide assistance to the city administrator. Due to funding a full time clerk may not be feasible, but a temporary clerk should be established when the administrator is out to provide normal office hours to the public. Fuel is purchased from Frosty Fuels, a subsidiary of the Aleut Corporation, which provides fuel for commercial and residential use. The city does have funds to cover fuel cost for the city facilities and equipment.

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 of Cold Bay Code of Ordinances, Chapter 36 has the Utility Rates; disconnect; reconnect penalties (6.36.100), Billing (6.36.110), and Delinquent Accounts (6.36.120) which comprise of the citys collection policy. The A/R Aging Summary has an issue of the community center grant fund that has been closed and the account has been zeroed out but QuickBooks has not updated this. The DCRA QuickBooks consultants contact information was provided. There is an issue of an amount owed in the A/P Aging Summary that needs to be addressed that is more than 90 days past due. The city utilizes QuickBooks Pro 2009 for all payroll taxes. When cash is received, it is placed in a safe and a receipt is given to the customer. The city utilizes QuickBooks to track the cash disbursements and deposits all cash to the bank. Monthly bank reconciliations are made with QuickBooks and bank statements. All purchases are routed through the city administrator and reported to the council.

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 report dated March 15, 2012 shows that the city is compliant with required federal tax deposits, filing and has no record of a lien. The Department of Labor and Workforce Development, Employment Security Divisions report from March 13, 2012 states that the city is in compliance with state tax filing, deposits and is not on the September-October 2011 lien watch.

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 of Cold Bay is currently insured with AML/JIA from July 1, 2011 to July 1, 2012. A copy of the Personal Policies Manual was provided to RUBA staff to convert to electronic format to provide for the city, as there is only one copy within the city office. The city has personnel files within the city office that has the I-9 forms, job applications and letter of acceptance. There is a six month probationary period for newly hired employees within the policies manual. RUBA staff will review the policies manual and provide an electronic copy for the city to update and reproduce. When available, the city will send staff to trainings. There is a water operators training in Unalaska, but due to the cost of travel from Cold Bay to Unalaska, this is not feasible.

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.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The City of Cold bay was incorporated in 1981 and is a second class city within the Aleutian East Borough and has the necessary utility ordinance to operate utilities within the city limits. The council meets once a month on the third Tuesday. There are curb stops to each connection that the utility manages and has proven effective on policy enforcement. The bookkeeper is the city administrator, who has been to QuickBooks classes hosted by DCRA's QuickBooks Consultants and has attended various AML trainings.

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
The Public Works Director is the also the water/sewer/landfill operator, harbormaster and general maintenance for the City of Cold Bay. The operator has a copy of the Operations and Maintenance Manual within the water plant that was prepared by CE2 Engineers, Inc. in May 1998. This is the only copy that is available at the time of the RUBA assessment. RUBA staff advised to get it to the city office and get it scanned in case anything should happen to the manual or have a copy made and kept in the city office. Since the water operator is the only employee in the public works department, he does not have safety meetings. The director provides the city with a monthly maintenance report. The utility has filed and distributed the 2009 CCR. The utility is not on the January 2012 SNC list. The director also has a critical spare parts and inventory that he maintains in the water plant.