Quarterly Report: 2013, January - March (Q3), Chevak

Community:
Chevak 
Staff:
Ken Berlin  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Chevak 
Population:
942  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
4/22/2013 
Community Sanitation Overview:
Since October 1, 2007, Alaska Rural Utilities Cooperative (ARUC) has provided full management and operation services to the City of Chevak's water and sewer utility. The utility consists of a water treatment plant, piped water and sewer, the central watering point, and honey bucket hauling. Construction began in 1995 to provide piped water and sewer to homes and the school. Completed projects include a landfill, a washeteria renovation, a new watering point, water treatment plant, a 150,000-gallon water storage tank, sewage lagoon, and a vacuum sewer plant. Most of the residents are connected to water/sewer. Some homes still have rain catchments. The school construction was completed in August 2003.  
RUBA Status & Activities This Qtr:
Alaska Native Tribal Health Consortium, Alaska Rural Utilities Cooperative (ARUC) has provided full management and operation services to the city's water and sewer utility since October 1, 2007. However it is noted that the City of Chevak has a tax lien on record for the October 2012 Lien Watch for IRS 941. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to monitor ARUC reports and provide assistance as requested.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
27 of 27
Total Score:
53 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
ARUC provides the community and RUBA staff monthly finance reports comparing year-to-date, monthly, and annually budgeted revenues and expenditures for the utility. Last financials reviewed were February 2013. ARUC pays all of the utility's electric bills in full on a monthly basis and ensures the utility has an adequate supply of fuel for operational purposes.

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
Alaska Native Tribal Health Consortium, Alaska Rural Utilities Cooperative (ARUC) has provided full management and operation services to the city's water and sewer utility since October 1, 2007.

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 city's utility is managed by ARUC who is responsible for accurately calculating, tracking, and reporting payroll tax liabilities. On March 8, 2013 RUBA staff received confirmation via email correspondence from the IRS and Department of Labor that ARUC is current with all tax reports and deposits. The City of Chevak is listed in the January-February 2013 lien watch report. It should be noted that the management of the utility under ARUC is compliant but the owner of the utility (City of Chevak) is not.

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 utility's worker's compensation insurance policy is provided through ARUC.

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 has a memorandum of agreement (MOA) with ARUC to operate its utility. Through the MOA, ARUC has the authority to set rates, ordinances, policies, and procedures for the utility.

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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
ARUC manages the city's utility operator(s) and has a preventative maintenance plan in place for the utility. RUBA staff verified that as of September 2011, the city is not on the Significant Non-Complier (SNC) list.