Quarterly Report: 2013, 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:
98  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
4/22/2013 
Community Sanitation Overview:
The city provided services include piped water, piped wastewater, and a landfill. Currently, water is supplied by two wells and stored in a 213,000-gallon tank. The majority of residents are connected to the piped water and wastewater system. A few homes have individual wells and wastewater systems. The wastewater treatment plant processes approximately 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 state fiscal year, beginning July 1. 
RUBA Status & Activities This Qtr:
On January 22-24, RUBA staff traveled to the City of Cold Bay to complete a RUBA management assessment City staff provided documentation supporting the conclusions in the report. While on site, staff also provided elected officials training to the city council who act as the water/wastewater utility board. Topics of the training included: overview of government, roles and responsibilities, meetings, ordinances and resolutions, policies and procedures, and financial management. On March 4, RUBA was notified that the public works director was offered another job in Cold Bay. RUBA staff provided a new job description for the public works director position that needed to be included into the personnel policies. RUBA staff also notified the administrator that the city needs to contact AMLJIA about the updated job description for review. 
RUBA Activities for the Coming Qtr:
Anchorage RUBA staff will maintain contact with community to continue 100 percent RUBA compliance.
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
The City of Cold Bay FY13 budget was adopted timely. The budget is balanced and includes the water utility budget with annual revenues of $73,000 and expenditures of $67,336, with a surplus of $5,664. Financial reports are submitted to the policy making body at the monthly council meeting, the last report shows the utility is at 51 percent of the expected revenues. The report also shows the utility has spent 47 percent of it planned expenditures. This indicates that the city is receiving sufficient revenues to cover the expenditures of the water utility. The clerk is the financial director for the utility and provides written monthly financial reports to the council at the meetings. She attends the meetings and is available for questions concerning the finance reports. The city is current with the utility electric bills from G and K, Inc. The city gets fuel deliveries for the water treatment plant from Frosty Fuels, a subsidiary of the Aleut Corporation, on a monthly basis to fill up the tank. The city adopts budget amendments as needed.

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 has in the code of ordinances, Title 6, Chapter 36, Section 120 Water and Sewer System's Delinquent Accounts a section that addresses the utility collection policy. The city utility sends out a bill for water services at the end of each month. The utility uses QuickBooks Pro 2012 to track customer's accounts, accounts payable, and employee payroll. Once cash is received, the clerk uses QuickBooks to generate a receipt for the customer. The city has a cash disbursement system that requires the mayor's approval on major purchases for the utility. The chart of accounts lists all the bank accounts, accounts receivable, assets, accounts payable, liabilities, income and expenditures of the utility.

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 dated April 4, 2013 shows that the city is compliant with required federal tax deposits and filing and has no record of a lien. The Department of Labor and Workforce Development, Employment Security Division's report from March 18, 2013 states that the city is in compliance with state tax filing and deposits and is not on the January 2013 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
Cold Bay is currently insured with Alaska Municipal League, Joint Insurance Association (AMLJIA) from July 1, 2012 to July 1, 2013. A copy of the personnel policies manual was provided to RUBA staff to convert to electronic format, then returned to the city, as there is only one copy in the city office. The city has personnel files within the city office that contain I-9 forms, job applications and letters of acceptance for each employee. There is a six-month probationary period for newly hired employees outlined in the policies manual. RUBA staff will review the policies manual and provide an electronic copy for the city to update and reproduce. When funding is available, the city sends staff to trainings. The clerk attended the Planning Management for Rural Utilities February 11-15, 2013.

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 as a second class city within the Aleutians East Borough. It has the necessary utility ordinance and a provisional certification of public necessity from the Alaska Regulatory Commission to operate utilities within the city limits. The council meets monthly on the third Tuesday of the month. The utility has curb stops to each connection that has proven effective for collections policy enforcement. The bookkeeper is the city administrator, who has been to QuickBooks classes sponsored by the RUBA program and has attended various utility management trainings. Cold Bay received the QuickBooks install and training in previous years and is still using the program effective and efficiently. The operator has a Water Treatment Provisional and Water Distribution 1 due to expire on December 31, 2015. The operator also has Wastewater Treatment Provisional and Wastewater Collection Provisional due to expire on December 31, 2013.

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
The Public Works Director is also the water/wastewater/landfill operator, harbormaster, and general maintenance worker. The director has a water treatment provisional certification and a water distribution 1 that both expires on December 31, 2015. The utility has a copy of the Operations and Maintenance Manual at the water plant that was prepared by CE2 Engineers, Inc. in May 1998. This is the only copy available at the time of the RUBA assessment. RUBA staff advised to have it scanned in case anything should happen to the manual or have a copy made and placed in the city office. The public works director attends the monthly AMLJIA safety meetings with other city staff. The director provides the city with a monthly maintenance report. The utility has filed and distributed the 2011 CCR. The utility is not on the January 2013 Significant Non-Compliance (SNC) list. The director has a critical spare parts and inventory control list that he maintains in the water plant.