Quarterly Report: 2007, January - March (Q3), Nondalton

Community:
Nondalton 
Staff:
Jimmy Smith  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Nondalton 
Population:
203  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/1/2007 
Community Sanitation Overview:
The City of Nondalton operates the piped water and sewer system and provides a central watering point for residents to haul their own water. The City Council is the policy making body for the utility. An infiltration gallery at Six-Mile Lake supplies the community with treated water. There are 88,000 gallons of storage capacity. 70 residences are connected to the piped water and sewer system and are plumbed. Funds have been requested to extend the system to 11 newly constructed homes, and to make system improvements -- demand has doubled over the past 12 years. Refuse collection is not provided. A new 5-acre landfill and burn box project were completed this summer ('05). Construction of the Iliamna-Nondalton road and bridge is pending. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect Iliamna, Newhalen and Nondalton. The Tazimina Hydroelectric Project has recently been completed, and powers the three communities 
RUBA Status & Activities This Qtr:
On January 22, 2007, Jimmy Smith traveled to Nondoltan and met with Bob Tracy, Mayor, and Clare Trefon, City Clerk, to complete a RUBA Assessment of Management Capacity Indicators. The city staff provided the documentation supporting the conclusion of this report. Specific documents used in this report are available with the RUBA staff for review. The documents provided by the City of Nondalton staff are; job description, meeting minutes, audit and financial reports, procurement policies and procedures, water and sewer ordinance, billing and collection procedures, personnel policies and procedures, and sample evaluation form. Nondalton currently meets all essential management indicators and a majority of the sustainable indicators. 
RUBA Activities for the Coming Qtr:
RUBA staff plans to provide assistance via, phone, facsimile and email.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
21 of 27
Total Score:
48 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
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.
Yes 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 staff has made great efforts with the city's financial system using the Excel spreadsheet. The Excel spreadsheet shows the line items for each department including the council adopted budget, the expense spent and revenue received for each month, the year to date expense and revenue received and the remaining balance of the adopted budget. The staff has been providing financial reports to the policy making body at the monthly meetings. The council is using the revenue from equipment rental and Borough revenue sharing funds to pay the Internal Revenue Service and Alaska Department of Labor for back taxes. RUBA staff made recommendations to the Mayor and staff to set up a Repair and Replacement account for the utility. Based on the recommendation, the staff and Mayor will be setting one up 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
The city staff has been keeping track of all their revenue and expenditures on an Excel spreadsheet. The spreadsheet merges with the Word program to invoice the customers each month for the water and sewer services provided by the utility. The staff uses the Excel spreadsheet to do payroll and has the Excel formulas to calculate the proper withholdings from each employee. The staff pays for the city invoices as they arrive in the mail and processes the invoice through a check request form. The staff is in the process of purchasing QuickBooks Pro for all the accounting needs. The staff will need to be trained in using the QuickBooks Pro software once it has been purchased for the city.

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
An IRS tax release was signed by the community and forwarded to the IRS agency. The IRS response indicated the utility is in compliance at this time. The city has installment agreements with the IRS to pay for back taxes owed to the IRS. The city has an installment agreement with the Department of Labor (DOL) for Employment Security Tax and the payoff will be in June 30, 2007 with DOL.

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.
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 does have workers compensation coverage that will expire on May 23, 2007. The city does have a personnel policy in place that was adopted by the council in June 1992, but it needs to be reviewed or updated by the council. The staff uses the personnel policy in hiring staff for the city. The staff has been following the personnel policy on a regular basis but an updated policy needs to be in place for the community. The staff has job descriptions for all the city employees. An evaluation process still needs to be put into place for all the city employees.

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 council is very active in the policy making of the utility by having regular meetings and enforcing the collection policy of the utility. The utility has trained operators who are Operator In Training (OIT) certified. The current administrator who resides in Anchorage may resign from the city by spring of 2007. The council is currently advertising the administrator position but no one has applied yet. The bookkeeper would like the council to purchase QuickBooks Pro and she would like to have training using the QuickBooks Pro software.

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.
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".
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 community was listed as a Significant Non-Complier, but returned to compliance in December 2006.