RUBA Community Status Report

Community Name: Akhiok


Community:

 Akhiok

RUBA:

 Yes

Staff:

 Brice Eningowuk

Agreement:

 No

DCA Region:

 Anchorage

Agreement Date:

Region:

 Kodiak Island

Exp Date:

Govt Type(s):

 2nd Class City

Borough:

 Kodiak Island Borough

Assessment Date:

 5/12/2010

Population:

 71

Active Community:

 Yes

Date Updated:

 6/19/2013


Community Sanitation Overview:

The city of Akhiok has a water treatment plant built in 1982 and has two 10,000 gallon water storage tanks that service 25 water connections. Water is supplied from a 500,000 gallon reservoir and dam. Pressure pumps are needed to supply the water storage tanks as the tanks are near the same level as the water reservoir and water treatment plant. The distribution system has antiquated vales that are no longer serviceable. Within the water treatment plant one of the two media filters has collapsed leaving only one filter usable within the plant. A through backwash of the filter can drain the distribution system and put the psi level down to five psi throughout the system. The city of Akhiok has a water treatment plant built in 1982 and has two 10,000 gallon water storage tanks. Water is supplied from a 500,000 gallon reservoir. Pressure pumps are needed to supply the water storage tanks as the tanks are near the same level as the water reservoir and water treatment plant. The distribution system has antiquated vales that are no longer serviceable. Within the water treatment plant one of the two media filters has collapsed leaving only one filter usable within the plant. A through backwash of the filter can drain the distribution system and put the psi level down to five psi throughout the system.

RUBA Status
and Activities
this Quarter:

Anchorage RUBA staff has attempted to maintain contact with the city for RUBA updates. City responses have been limited. Requests for RUBA indicator documentation was sent to the city staff on March 1 and April 5, 2013.
 

Capacity Indicator: Finances

Essential Indicators:

Yes

All revenues and expenses for the utility are listed in the utility budget.
Yes

The utility has adopted a balanced realistic budget.
No

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:

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.

Comment:

The City of Akhiok has adopted a realistic balanced FY13 budget. Although the water utility budget is not balanced, the revenue is stated to be $3,500 and the anticipated expenditures are expected to be $6,410. This leaves a deficit of $2,910 that is not listed in the overall budget. The city owns the electric generator that supplies electricity to the community and the water treatment plant. No monthly financial statements were received as of April 5, 2013. The water and wastewater revenues are not sufficient to cover operating expenses; therefore the city subsidizes the water and wastewater utility with a combination of the electric utility revenues and office space rental from the local Native Corporation. The water operator reports verbally to the council.
 

Capacity Indicator: Accounting Systems

Essential Indicators:

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:

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.

Comment:

The city council has an adopted a water/wastewater ordinance that includes sections on billing and collections. The community has been notified as to why the council must enforce collections. The community has been supportive of the policy. RUBA staff assisted the city in creating a manual system that is easy to use and helps get the billing out by the fifth of each month. Customers are charged $30 per month for combined water, wastewater and garbage service. Each monthly invoice shows the date of billing, a description of services, amount due, cost of service, amount paid and total balance due. A manual system is in place for tracking and reporting accounts receivable, accounts payable and payroll. Due to the small size of the community, this manual system for reporting is effective and sufficient. The current system for cash receipts is for staff to write a receipt of payment to the customer, enter the payment on the customer's account ledger and then the mayor or vice mayor makes a deposit to the bank. The city uses a checkbook register to record who checks are written to with payments entered on another ledger that tracks which class or account the funds are expended from. Monthly bank reconciliations are completed manually. Purchases for the utility are discussed by the mayor and vice mayor to confirm if the purchase is necessary and there are funds available in the budget. Major purchases are discussed by the entire council prior to ordering.
 

Capacity Indicator: Tax Problems

Essential Indicators:

No

The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No

The utility is current on filing tax reports.
No

The utility is current on making tax deposits.
No

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.

Comment:

As of April 5, 2013, a signed Authorization to Request Federal Tax Information has not been received, the form was requested from the city on March 1 and April 4, 2013. The Department of Labor and Workforce Development, Employment Security Divisions report from March 18, 2013 states that the city is in compliance with state tax filing and deposits and is not on the January  February 2013 Lien Watch.
 

Capacity Indicator: Personnel System

Essential Indicators:

Yes

The utility has a posted workers compensation insurance policy in effect.

Sustainable Indicators:

No

The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No

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.
No

The utility has an adequate written hiring process.
No

The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
No

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.

Comment:

The City of Akhiok currently has a workers compensation insurance policy through Alaska Municipal League/Joint Insurance Association valid until July 1, 2013. AMLJIA has confirmed that the city will continue to purchase insurance coverage until July 1, 2013.The city does not have a personnel policy or current job descriptions for employees; however, the utility has requested RUBA assistance in creating a policy and job descriptions.The utility does not have a written hiring process. Job notices are posted with the job title and description for ten days. Interested applicants apply at the city office. The utility's personnel folders are orderly and contain the employees W-2, I-9 and other pertinent information. The files do not include a copy of the job application and description. Training opportunities to staff are provided as funds allow or opportunities by other sponsors become available.
 

Capacity Indicator: Organizational Management

Essential Indicators:

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:

No

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.

Comment:

The council strives to hold monthly meeting when a quorum is available. Copies of recent meeting minutes were provided. Although enforcing actions of disconnections has historically been difficult, the community currently understands the importance of the policy and is supporting the city on the policy. The current utility operator is trained and holds a Provisional Level 1 certificates in both water treatment and water distribution. The city adopted a water/wastewater utility ordinance that is based on the Regulatory Commission of Alaska (RCA) model utility ordinance.
 

Capacity Indicator: Operation of Utility

Essential Indicators:

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:

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".
No

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.

Comment:

The preventative maintenance plan for the existing system is on file within the plant. The utility operator is trained and holds Provisional Level 1 certificates in both water treatment and water distribution, which expire on 12/31/2013. The utility operator reports to the council when there is a problem or he can foresee one. The utility operator and council try to keep needed critical spare parts on hand. There is a written inventory and spare parts list for the plant. The water system is on the April 2013 SNC list. Akhiok is unable to meet Surface Water Treatment Rule requirements due to inadequate treatment and filtration system. The system can return to compliance by installing adequate water treatment. System must continue to monitor for routine monthly Total Coliform Rule and chlorine residuals and submit monthly operator report despite the Boil Water Notice in effect. Need to monitor in 2013, quarterly Synthetic Organic Chemicals/Optimal Corrosion Control or Corrosion Control Program while no waiver application was submitted nor granted in 2012. On long term Boil Water Notice. Existing aging and inadequate water system configuration does not meet Surface Water Treatment Rule.

RUBA Activities for the Coming Quarter:

RUBA staff assigned to community has accepted a position outside of the RUBA Program, another Anchorage RUBA staff will cover community until the community is permanently assigned to another RUBA staff.