Quarterly Report: 2013, July - September (Q1), False Pass

Community:
False Pass 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of False Pass 
Population:
37  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/31/2012 
Community Sanitation Overview:
City provided services include piped water, electric, refuse collection, and landfill. Water is derived from a nearby spring and reservoir and is treated and stored in two 60,000-gallon tanks. Most homes are connected to the piped water system. Over 80% of the homes are fully plumbed. Most residents have individual wastewater tanks, however many are experiencing leachfield failure. While not currently operating, seasonal wastewater from seafood processing flows directly into an outfall line. A community-wide septic system is designed and funding for construction is being researched. 
RUBA Status & Activities This Qtr:
On September 26, Anchorage RUBA staff traveled to False Pass to work with city staff to address objectives from the May 2012 RUBA agreement. RUBA staff copied the local code of ordinances and supplements for codification. RUBA staff observed the city clerk's election preparation process and confirmed the clerk has followed all procedures outlined in the election ordinance. RUBA staff assisted city staff in inspecting the utility to see what parts the utility has on hand to update the critical spare parts list. The public works director will update the existing equipment list, then provide RUBA staff with a copy of the list. Anchorage staff was also contacted to review a resolution for the city. 
RUBA Activities for the Coming Qtr:
RUBA staff will work with the city to address items on the RUBA agreement and workplan.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
26 of 27
Total Score:
52 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.
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 FY13 budget amendment lists the water utility income at $7,415 and a general fund transfer of $13,968 for a total income of $21,383. The utility expenses totaling $21,117. Monthly financial statements are in budget versus actual format and are submitted to the council. The city will purchase heating fuel from Peter Pan Seafoods on an as needed basis until December 31, 2012. The city has a repair and replacement line item and a separate bank account in which funds are deposited. The utility manager is also the operator and submits maintenance reports to the council as documented in meeting minutes.

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 council has adopted Title VI: Utilities and Public Facilities/Equipment, Chapter 36: Water and Sewer in the code of ordinances. This code has a provision for the city to adopt and enforce regulations and provisions pertaining to the water utility. A sample bill to a water and wastewater utility customer was received that shows a monthly water and landfill service charge to the customer. The city utilizes QuickBooks 2009 Pro for all financial accounting. The accounts receivable report lists all accounts owed to the city. There is an issue of reconciliation of past due billings that may or may not have been paid. The clerk has asked the QuickBooks consultants how to enter prepay amounts for the electric utility as there was a time that the previous clerk did not send out bills. The accounts payable report shows no considerable amount to be paid, with the exception of a heavy equipment part that the city is planning to purchase. All cash received is kept in a safe within the city office and deposited to the bank on a weekly basis. The city issues receipts to each customer upon payment. All payroll is done with QuickBooks and the clerk is very knowledgeable with the QuickBooks program. A chart of accounts has all bank accounts, assets, liabilities, equities, income, and expenses listed. Monthly bank reconciliations are done utilizing bank statements and QuickBooks. When purchases are needed that are not listed on the budget, the clerk reviews the budget and gets purchasing authorization from the mayor.

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 IRS report from September 24, 2012, states the city is compliant with federal tax filing and deposits, and has no record of a lien against the city. The Department of Labor and Workforce Development, Employment Security Division's report from September 24, 2012 states that the city is in compliance with state tax filing and deposits, and is not on the July-August 2012 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 False Pass is insured by Alaska Municipal League Joint Insurance Association (AMLJIA) for workers compensation insurance with coverage from July 1, 2012 to July 1, 2013. The employee job descriptions, evaluation process and hiring process are located in the code of ordinances. The employee files are locked in the mayor's office. There is a probationary period of 90 days for new employees. The city offers training to employees as needed and if 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
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 entity that owns the utility is the City of False Pass which is documented in Title IV in the Code of Ordinances. The policy making body is the City of False Pass City Council as stated in the False Pass Code of Ordinances. The city has adopted an organizational chart. The city council meets every third Tuesday of each month. The city posts meeting notices five days prior to the meeting date with the place, time and type of meeting.

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.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The current water operator is the utility manager and is trained in the water operation and is currently scheduling to take the test with DEC. There is an Operations and Maintenance Manual submitted by the plant engineering firm in 2004 that is kept in the current water treatment plant. The city participates in the AML/JIA safety meetings and has adopted a resolution to continue participation in safety meeting teleconferences. The manager is the operator and provides a monthly manager's report for all city facilities. There have not been any major outages due to management issues in the past three years. A copy of the 2011 CCR was distributed. The water treatment plant was not listed on the July 2012 Significant Non-Compiler (SNC) list. There are critical spare parts or inventory lists for the water utility that the city maintains. The operator is working on updating the equipment list and the critical spare parts list is being updated.