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HomeMy WebLinkAboutRural Utility Business Advisor Program RUBA Quarterly Report Apr 1-June 30 2010Rural Utility Business Advisor Program | hi \ AIVEs RUBA Quarterly Report April 1 - June 30, 2010 Fourth Quarter SFY10 WBA RURAL UTILITY BUSINESS ADVISOR RUBA Program Manager Elizabeth Manfred 550 W. 7th Ave., Suite 1770 Anchorage, AK 99501-3569 [Elizabeth's office is on the 16th floor in Suite 1640] 907-269-4556 (phone) 907-269-4563 (fax) elizabeth.manfred@alaska.gov Rural Utility Business Advisor (RUBA) Program Activity Report April 1 — June 30, 2010 Scope of Report This report summarizes activities of the Department of Commerce, Community, and Economic Development (Commerce), Division of Community and Regional Affairs, (DCRA)’in regards to the Rural Utility Business Advisor (RUBA) Program. The report documents RUBA activities for the period of April 1 through June 30, 2010. This report describes the activities in two general areas. The first area is program activity not specifically associated with direct community assistance. The second part of the report is divided into RUBA and non-RUBA ‘community reporting which describes the status and activity of specific communities. The RUBA communities have signed RUBA agreements requesting quarterly onsite assistance and have developed a work plan with RUBA staff to meet specific capacity building goals. Those communities listed as non-RUBA are communities that did not have a signed RUBA agreement; however, they requested and received staff travel and on-site assistance this quarter. Major Issues Staffing RUBA staff members are classified in the state employment system as Local Government Specialists (LGS). Eli Jacobson accepted a Local Government Specialist position in the Bethel office. Eli has lived in Bethel for eight years and visited family members in Bethel prior to moving there. He has experience teaching personal finance classes in the region and has traveled to a majority of the communities. His training skills and interest in assisting rural communities and local governments will be a welcome addition to the Bethel staff. Glen R. Hamburg accepted the Local Government Specialist position in Juneau. His position is newly created to assist Lawrence Blood, LGS, in providing technical, financial, and managerial assistance to communities in Southeast. Glen has excellent training and writing skills. He attended a portion of the recent LGS staff retreat in Anchorage and participated in the staff development activities presented. Glen’s enthusiasm to assist local governments and his fresh, objective view of LGS responsibilities will support the mission of both the Division of Community and Regional Affairs and RUBA. Recruitment continues for the position in Dillingham. In addition, recruitment has been posted for an Anchorage position. Jean Ayers resigned on June 15 to transfer to another state position. Her constant positive attitude, warm smile coupled with the ability to develop professional training materials and provide technical editing skills to all will be missed. RUBA Program Scope of Report Maintaining staffing is becoming increasingly difficult. Applicants with the skill set required to provide financial, technical and managerial assistance to rural communities are offered more pay from non-profits. Prospective employees have completed the recruitment process and then turned down the offer of employment citing the lack of pay. Six of the last seven positions filled only met LGS II qualifications in recruitment for a LGS I, LGS II, or LGS III flex position. An employee hired in the LGS II status requires mentoring and travel must accompanied by an LGS III. The additional supervision and travel limits the time available for the LGS III to service their individually assigned communities. In addition, the additional required supervision burdens the travel budget in to sending two LGS to one community. Regional Utility Management: Alaska Rural Utility Collaborative (ARUC) is a program within Alaska Native Tribal Health Consortium (ANTHC) to develop a regional statewide utility management and accounting function for small rural member communities. ARUC manages day-to-day operations of the utility and does not address past liabilities or IRS liens. It should be noted that while ARUC manages the utility, the community maintains ownership of the assets. Grant funding and community revenue sharing payments are made directly to the community and may be attached in a lien. The state received notice of an IRS Lien in excess of $200,000 to a community where ARUC manages the utility. It is recommended that ARUC cut services or increase the utility rates to allow funds for the utility to pay their share of the IRS lien. Power Cost Equalization (PCE): Rural Alaskan communities continue to request assistance from RUBA staff for training and assistance in completing PCE reports. The PCE program is currently performed within the Alaska Energy Authority (AEA). When communities are denied the PCE subsidy for lack of proper reporting, they are then told that AEA does not have the funds or staff to provide report writing training. During a presentation to the RUBA staff during our annual retreat, PCE staff stated that they are unable to provide training and requested that RUBA staff become responsible for PCE training. The PCE program is currently staffed by two people with no travel budget for onsite assistance. RUBA staff are not funded to provide onsite PCE assistance which is an issue to be addressed. Many rural communities receive PCE subsidy funds for their community facilities and community services such as the water treatment plants or washeterias. PCE staff explained annual and, monthly report requirements and provided comments on how RUBA can assist rural communities with submission of their reports. This topic requires additional interagency meetings for discussion. Coordination/Communication Alaska Association of Municipal Clerks: The Alaska Association of Municipal Clerks (AAMC) contacted the RUBA program manager to announce they have added an extra half day of training to the annual clerk training held in conjunction with the fall Alaska Municipal League (AML) annual conference. The additional trainings will be a ‘Nuts and Bolts’ basics with an emphasis on new clerk needs. AAMC requested the RUBA staff assist with the training. Of particular interest is a presentation on the relationship of Title 29 to clerk’s responsibilities and how city ordinances relate to Alaska Statutes. Local ordinance receive their authority to provide public utilities from Alaska Statutes. RUBA revises Title 29 after ES RUBA Quarterly Report - 3rd Quarter SFY10 -2- RUBA Program Scope of Report each Legislative Session and prints copies for distribution as a resource tool for clerks and other local government staff. Alaska Energy Authority (AEA): AEA contacted the RUBA program manager to request RUBA staff contact all rural communities and advise them to apply for the Energy Efficiency and Conservation Block Grant (EECBG). No matching funds are required for this grant. Communities may apply for projects that will assist in reducing electric of fuel costs; lower energy costs should reflect in lower water/wastewater rates. Alaska Native Tribal Health Consortium (ANTHC): Anchorage RUBA staff assisted ANTHC Engineer Kelly Larson in calculating the City of Port Lions water/wastewater collection rate. Collection rates are necessary when applying for several funding opportunities. RUBA staff were able to supply documents and prove the FY09 collection rate of 78% for their water and wastewater utility. The city acknowledged the deficiency, completed a rate study with RUBA assistance and raised the rates accordingly. The effort was visible with the new collection rate for July 2009 through January 2010 of 98% using the same process. RUBA and ANTHC also calculated the collection rate for Larsen Bay which is a community with a signed RUBA assistance agreement. They currently have a collection rate of 91% Alaska Rural Utility Collaborative (ARUC): ARUC is a project to develop a statewide centralized utility management and accounting function for small rural member communities. ARUC. The pilot project has grown substantially and continues without monetary support from RUBA. ARUC must meet all RUBA essential management indicators and be assessed quarterly for the communities it manages. RUBA receives and evaluates the monthly finance reports that ARUC prepares for communities they provide water/wastewater management services. ARUC is currently managing 19 utilities statewide. Alaska Water Wastewater Management Association (AWWMA): Juneau RUBA staff participated in the 50" Annual Statewide Training Conference for AWWMA. The conference was held in Sitka and was in conjunction with National Drinking Water Week. For three days, water and wastewater professionals were provided an opportunity to receive continuing education units (CEU) requires for maintaining their water and wastewater certifications. RUBA staff assisted in the regulatory and technical training by serving as a classroom moderator for eleven training sessions. Bristol Bay Area Health Corporation (BBAHC): Dillingham RUBA staff met with BBAHC in May to discuss communities in the region and the sanitation funding and projects. BBAHC stated that Aleknagik has scattered sites funding; a feasibility study was completed that gave the community options. Aleknagik is not on the VSW three year funding cycle but may be eligible for SDS funding. Chignik Lake is funded for water/wastewater projects pending meeting the RUBA essential indicator concerning taxes. Clark’s Point is in dire need of a new water supply as the well is not producing enough water. Ekwok is on the three year funding list for a lagoon project and lift station improvements. Koliganek has been funded through USDA for a leak detection study. Goodnews Bay should finish their current project this summer and will not be applying for any additional project or funds at this time. se RUBA Quarterly Report — 3rd Quarter SFY10 -3- RUBA Program Scope of Report Kokhanok has a feasibility study completed and will apply for funding next year. Levelock has planning money; RUBA completed a RUBA management assessment for Levelock this quarter in preparation for the future funding request. Manokotak has SDS funds for water and wastewater upgrades. Village Safe Water (VSW) is currently developing a project in Pilot Point. RUBA is monitoring these and additional communities and will provide assistance as requested. Denali Commission:. Fairbanks RUBA staff attended a meeting of the Denali Commission's Energy Advisory Committee (EAC) on April 26, 2010 in Fairbanks. The purpose of the meeting was to give EAC members the opportunity to hear from the region about energy needs. Participants at the meeting included representatives from the following Interior communities: Beaver, Circle, Hughes, Koyokuk, Ruby, and Stevens Village. The meeting included an overview of current issues and activities, with presentations by representatives from the Denali Commission, Tanana Chiefs Conference, and Interior Regional Housing Authority. Some of the concerns expressed by community members to the advisory committee include: the need for more energy efficient projects; the high cost of providing heat for public washeteria and water/wastewater facilities; the need for appropriate operator training for new power plant facilities; the need for more training to increase local management capacity. Most of the community representatives expressed interest in the use of wood burning boilers as an alternative to diesel fuel. Department of Environmental Conservation (DEC): In April, Fairbanks RUBA staff members attended a “Meet and Greet” session hosted by DEC Drinking Water Program. The session included approximately 25 staff members from the Drinking Water Program, the Solid Waste and Wastewater Program, the Tanana Chiefs Conference Office of Environmental Health program and RUBA. The purpose of the session was to meet staff members from various agencies working in Fairbanks that help rural communities provide safe and sustainable water/wastewater services. This meeting provided a great opportunity to meet staff from other agencies and discuss issues of mutual concern. Division of Emergency Services: Dillingham RUBA staff was contacted by the Alaska Division of Emergency Services, in May, regarding fuel deliveries. He stated that during recent travels in the area, it was noted that the Yukon and Kuskokwim river system water levels are very low. Unless a substantial rain fall occurs or a substantial warming occurs, the rivers may become too low for fuel deliveries. Emergency services recommended RUBA staff contact the affected communities and encourage them to order fuel earlier in the season. Environmental Protection Agency (EPA): RUBA staff continued to work with The EPA Project Officer Martha Barber to complete and submit an application for FY11 RUBA program funding. Currently EPA funds 18 FTE positions who provide local sanitation technical, managerial and financial assistance to municipal, tribal, non-profit, for-profit and private entities statewide. The EPA funds are awarded to provide training and assistance to rural Alaska communities with populations of 1,500 or less. The application was completed and submitted in June. aS RUBA Quarterly Report - 3rd Quarter SFY10 -4- RUBA Program : Scope of Report Rural Utility Business Advisor (RUBA): On April 26 the RUBA Program Manager met with managers of the VSW and ARUC to discuss the relationship of the three programs that assist rural communities with sanitation utilities. Currently, application for sanitation project funding is conditional upon having a successful RUBA management assessment. Communities that lack management capacity meet essential indicators found in the RUBA assessment or not be eligible for VSW projects. Communities that cannot maintain essential practices risk having their project delayed or discontinued. Funding for communities that fail to demonstrate management capacity will be used elsewhere as the application list is long. Communities with poor management capacity are increasingly contracting with ARUC to manage their utilities. The goal of the RUBA program is to build capacity in the community. A concern of the RUBA program is that as communities contract and rely on ARUC for utility management, incentive is lost and interest in improving management capacity within the community declines. Another concern is that the RUBA program is increasingly seen as an obstacle to receiving sanitation projects rather than a resource for managers to improve utility service in their communities. The importance of building local capacity to manage tural utilities is losing priority as the emphasis on completing sanitation projects increases and other ways of providing utility management are devised. These issues will likely be the subject of further discussion in future meetings. Rural Alaska Pilot Project (RAPP): RUBA staff attended a RAPP meeting on June 3, 2010 at the Internal Revenue Service (IRS) office in Anchorage. Also attending the meeting were representatives for IRS, Alaska Energy Authority (AEA), Denali Commission, and the IRS Tax Advocacy program. The meeting was held to discuss how to assist rural Alaska tribal and city governments with their financial and tax problems. The RUBA program manager shared information about available QuickBooks financial management assistance and a recent RUBA financial management training in Kotzebue. IRS staff stated they are developing an advanced class for employment tax information and plan to present the first one during the first quarter of FY11. The AEA representative stated that she uses the RUBA Lien Watch report when doing due diligence research for bulk fuel loan applications. RAPP meetings are held quarterly with the next one scheduled for September 9, 2010. Saint Mary’s: Kudos for RUBA staff were received from a client in May. Interim City Manager Doug Griffin wrote “I just wanted to drop you a quick line to tell you that I was very impressed with the attention the City of Saint Mary’s received from RUBA staff Fred Broerman on his recent visit. Fred was very thorough as he reviewed with us the approach to helping get our house in order. He was willing to change his plans in order to stay over to address a special meeting of the city council.” Fred had traveled to Saint Mary’s to complete a RUBA management assessment and will continue to work with the community to gain skills to meet the few identified deficient management indicators. Sanitation Deficiency System (SDS) Meeting: Juneau RUBA staff met with engineers from Alaska Native Tribal Health Consortium (ANTHC) and the Environmental Health Director from Southeast Alaska Regional Health Consortium (SEARHC) for the purpose of maximizing project scores for requested SDS projects in Southeast Alaska. The intent was to make sure that the grant applications for the priority projects in Southeast received the maximum point possible from the SDS scoring committee. RUBA staff assisted in the EES RUBA Quarterly Report — 3rd Quarter SFY10 -5- RUBA Program Scope of Report process by providing supporting documentation on management level training completed by utility managers and increasing utility collection rate information from the communities. In May, Kotzebue RUBA staff met with the Maniilaq Hospital Administrator, the Acting Health Director and Alaska Native Tribal Health Consortium (ANTHC) engineers assigned to communities in the Northwest Arctic Borough. This was an informative meeting to discuss the Sanitation Deficiency System (SDS) points that the Maniilaq Board of Directors will assign communities.to.receive federal funding for water/wastewater projects. All involved were allowed to speak to every community and documented projects that require funding. RUBA staff provided information regarding community RUBA status, administration and other relevant information. The Maniilaq Board will make a decision in July to assign the points which could significantly affect the project funding. Tanana Chiefs Conference (TCC): On Thursday June 3, 2010 Fairbanks LGS/RUBA staff members met with Melva Traverso, Tanana Chiefs Conference - Office of Environmental Health training coordinator to discuss utility management training for the Fairbanks region. TCC/OEH agreed to provide funding for travel, lodging and other expenses for a training workshop after September 30, 2010. RUBA staff provided information regarding course topics and course outlines. Ms. Traverso said she will survey communities in the TCC region regarding preferable topic for the training class, and preferable dates. Tentative dates set for a 32- hour utility management training class are November 8-11, 2010. We also discussed the option of conducting a second 32-hour utility management training class after January 1, 2011. Technical Assistance Providers (TAP): RUBA staff participated in a meetings with other rural sanitation professionals on April 14 and June 9, 2010 to provide intensive, coordinated, and ongoing technical assistance to distressed public water systems. The TAP group consists of state, federal, and non-profit organizations working to improve and optimize public drinking water systems in Alaska. Currently, there are four public water systems receiving assistance from the group (Gambell, Scammon Bay, Tununak, Hydaburg). The group entertained the idea of adding four new communities which would be Grayling, Napaskiak, Tuntutuliak, and Angoon. The responsible RUBA for each community will gather information and make recommendations to the group at the August TAP meeting. Ugashik: Former Bethel RUBA staff member Flora Olrun contacted the Dillingham RUBA staff to report that she has been hired as the Ugashik Traditional Council Manager. She requested that the Dillingham RUBA staff schedule time to update the community information with her. Village Safe Water: Representatives from Village Safe Water, Alaska Native Tribal Health Consortium, USDA Rural Development, and RUBA met in June to review capital improvement sanitation project applications. RUBA provided assistance in scoring the operations and maintenance portions of the applications and confirmed which applicants had met all essential indicators in RUBA management assessments. RUBA also confirmed which applicants had attended management classes. Applicants receive additional points for those that have a utility manager who participated in at least one of the eight management courses i S RUBA Quarterly Report — 3rd Quarter SFY10 -6- RUBA Program Scope of Report RUBA presents. In addition, RUBA staff provided community operations information related by staff member trips reports to a majority of the communities applying for funding. Anchorage new hire RUBA staff contacted Village Safe Water engineers to arrange a meeting to introduce himself and to get a list of current projects from VSW for his assigned communities. VSW staff included Susan Randlett, VSW Engineer, George Wilson, VSW Engineer, and Lynn Marino, VSW Engineer. VSW Projects associated to RUBA staff communities include: Adak: Water Line Downgrade: Public Meeting on May 13, 2010 to present Plan to community, Atka: Water Improvement Grant to update the Old Town Sewer Collection System, Saint Paul: $1.5M Outfall Grant to improve old Town Sewer, Saint George: Out Fall Study to purchase a Sanitation Truck, and Chistochina: Water Treatment Plant, scheduled for next summer. RUBA will continue to maintain close contact with the engineers and to monitor capacity in these communities. Dillingham RUBA staff was contacted by a Village Safe Water Engineer regarding the funding for a community sanitation project in the region. In 2006, funds had been awarded to the Platinum Traditional Council for the design and construction of water and wastewater improvements. Funding remains in place to complete project design work, however, the Platinum Traditional Council was advised due to not meeting funding requirements, construction funds have been reallocated. The council may reapply at a later date when all requirements are met, one of which is the RUBA management assessment. essential indicators RUBA staff has been unsuccessful in contacting tribal council staff by email or phone to arrange assistance. RUBA staff traveled to Platinum on May 18-19 to conduct the management assessment and noted several essential indicators were unmet. Performance Goals Publications: A goal of the RUBA staff has been to update and re-publish the. utility management training materials. New regulations and policies must be incorporated prior to using the materials to teach utility management skills in regional centers. The student Financial Management for Rural Utilities was completed this quarter and the matching instructor guide will be developed early in FY11. Staff Development: A staff teleconference was held in April with the following topics addressed: (1) Organizational needs, (2) Personnel changes, (3) Publications, (4) RUBA on- line reports, (5) STARS entries, (6) Trainings planned, (7) EPA grant goals, (8) Employee Orientation Manual, (10) Staff retreat dates and agenda items requested. Anchorage RUBA staff traveled to Juneau May 26-28 to attend a two-day Profit Mastery Workshop. The class provided a number of financial tools for business managers and emphasized how money flows through all businesses in similar ways. Although the focus of the class was on small businesses operating for profit, the topics and financial tools are applicable to enterprises such as sanitation utilities that are run by local governments. The annual staff retreat was held in Anchorage June 8-10, 2010. All regional Staff gathered in Anchorage for three days of training and networking. Staff enjoyed the opportunity to :- RUBA Quarterly Report — 3rd Quarter SFY10 -7- RUBA Program Scope of Report observe inter-agency staff presentations, trainings, government speakers, and hands-on exercises. Former Senator Arliss Sturgulerski addressed the group and shared her experiences in government and her views of the mission of Local Government Specialist staff in providing service to rural Alaska. Alaska Constitution Delegate Vic Fischer- shared his experiences in writing the Alaska Constitution and his belief of the intent of the delegates. He was gracious with his time and answered several questions from RUBA staff. Additional presentations included Alternative Revenue Sources, Power Cost Equalization (PCE) program and the -benefits-of utility’s participation in statewide contracts. The next annual retreat is planned to coincide with the Village Safe Water and Remote Maintenance Workers retreat in order to allow interaction with staff that provide sanitation technical, managerial, and financial assistance to rural Alaska. Bethel RUBA staff attended an Employment and Pull Tab Tax Workshop in Bethel. The class was presented by two IRS agents working for the Office of Indian Tribal Governments; a tax auditor for the State of Alaska Department of Revenue and field auditors from Alaska Department of Labor. Most of the 25 attendees were council members, administrators, clerks, bookkeepers, accountants, bingo clerks, and bingo managers. Session topics included completing federal 941 and 1099 forms, gaming laws and required taxes, Alaska Employment Security Compensation taxes, electronic payment of federal taxes, independent contractors versus employees, and business travel reimbursements. The workshop provided RUBA staff with an opportunity to learn about administrative and financial problems of small rural Alaska communities and to establish relationships with tribal employee. April 5-9, 2010, Bethel RUBA staff attended an Introduction to Small Water Systems training sponsored by Yukon Kuskokwim Health Corporation’s (YKHC) Office of Environmental Health and Engineering (OEHE). The training was taught be OEHE’s Remote Maintenance Workers and Environmental Officers. The training focused on preparing attendees to pass the State of Alaska’s Level 1 Provisional Water Treatment and Water Distribution certification tests. Most of the 25 students who attended are working as water treatment plant operators for tribal or municipal governments in the area. Anchorage and Nome RUBA staff attended the same course presented by Tanana Chief’s Conference (TCC) in Fairbanks. Travel to Communities On-site Management Assistance: While not formally listed as a performance standard, travel to communities is a critical component of the RUBA program. Upon invitation from communities, RUBA staff completed 68 trips to 39 communities during the final quarter of SFY10. Thirteen RUBA staff plus one part-time materials development RUBA staff traveled this quarter for a total of 188 days providing on-site assistance, conducting management assessments and follow-up assistance, providing guidance relating to utility rate setting, financial accounting and reporting, conducting elections training, developing utility work plans, attending community planning meetings, and assisting in the development of cooperative agreements between city, tribal, and community entities. RUBA Quarterly Report — 3rd Quarter SFY10 -8- RUBA Program Scope of Report Management Assessments and Follow-up Assistance: Twelve RUBA management assessments were completed this quarter. Of the current 176 RUBA assessments completed, 62 are meeting 100% of the essential capacity indicators. Of the 176 assessments, twenty three communities have requested non-active status and are not submitting documentation based on no possible funding project in the near future. These communities have not adopted the idea that a RUBA management is a positive resource to gauge current management practices. Of note, 31 communities increased essential indicator counts to demonstrate improved capacity. After the initial assessment is completed, monthly contact is made with the“ utility to receive a current finance report and, in several instances, additional documentation to assess management capacity. If these documents are not provided, RUBA changes the essential indicator to no until documentation is received. Increased On-Site Assistance through Use of Contractual Staff QuickBooks Pro Assistance: Many of the communities served by RUBA staff use QuickBooks Pro for accounting but often need assistance with the program. The technical nature of the questions and problems require time and an understanding of the QuickBooks program. To assist communities with QuickBooks accounting problems, RUBA continues to contract Turnagain Press who are the instructors for RUBA sponsored classes and were the authors of the RUBA publication Introduction to QuickBooks for Sanitation Utilities. RUBA also supports a QuickBooks assistance hot line. Turnagain Press is available to assist communities with QuickBooks accounting problems Monday, Tuesday, and Thursday each week from 10 am to 3 pm by calling 907-440-0242. The contractor resolves accounting problems for rural sanitation utility staff concerning all aspects of the QuickBooks software program. The contractor anticipates that most problems will be resolved through phone calls. Assistance is also offered through use of email, review of community accounting files, and remote computer access. For more serious problems, the RUBA contract includes a travel budget to allow a maximum of 15 community site visits per year. This contract increases the management capacity of rural sanitation utilities by correcting accounting deficiencies while building capacity in training local staff. From January | through March 31, the helpline assisted 30 communities with 82 calls and the Internal Revenue Service with four calls. On June 21-25, 2010 Juneau RUBA staff traveled with the QuickBooks contractor to Kake for the final of three community visits. The QuickBooks contractor has completed the accounting system reconfiguration and staff training for the QuickBooks program. The QuickBooks technical assistance and staff training has substantially increased the local government’s capacity in the area of financial management. RUBA receives monthly finance reports from Kake which include documentation to indicate that their collection rate has increased from 17% to 83% in the six months of RUBA staff and QuickBooks onsite assistance. Dillingham RUBA staff traveled to Togiak with the QuickBooks contractor on June 15, 2010 for the final trip of three scheduled community visits. Utility office staff had continued to build on past training and were very knowledgeable with the functions of ES RUBA Quarterly Report — 3rd Quarter SFY10 -9- RUBA Program Scope of Report QuickBooks in relation to their specific jobs. The QuickBooks contractor will complete the customized user’s manual with screen shots of Togiak accounting functions within two weeks of this final visit. Training Classes Presented Bethel: Turnagain Press presented QuickBooks Pro for Beginners in Bethel on April 26-30, 2010. Fourteen tribal. and.municipal employees from Akiachak, Chefornak, Chuathbaluk, Hooper Bay, Kipnuk, Kotlik, Kwethluk, Lower Kalslag, Mekoryuk, Napaskiak, and Upper Kalskag attended. Sessions included training in setting up accounts, classifying transactions, preparing balance sheets, profit and loss and budget reports, processing payroll, reconciling bank accounts, billing customers, tracking cash transactions, backing up and creating portable files. The small class size allows ample opportunity for students to interact with instructors about unique situations or problems they may have experienced in their utility files. Anchorage: Turnagain Press presented QuickBooks Pro for Beginners in Anchorage on May 17-21, 2010. The class was taught by the RUBA program contractor in the computer _ lab of the Cook Inlet Tribal Council building. Twelve tribal and municipal employees from Ruby, Kalskag, Twin Hills, Voznesenka, Ouzinkie, Allakaket, Larsen Bay, Noatak, Katovik, Nelson Lagoon, Chignik Lake, and Adak attended the course. Training sessions included: setting up accounts; classifying transactions; preparing balance sheets, profit and loss and budget reports; processing payroll; reconciling bank accounts; billing customers; tracking cash transactions; and backing up and creating portable files. The small class size allowed many opportunities for students to interact with instructors about unique situations or problems they were having with QuickBooks in their communities. The first-hand experience the instructors have working with users in small rural Alaska communities made the course relevant to all attendees. Kotzebue: The RUBA program sponsored and presented a 32-hour Financial Management for Utility Managers in Kotzebue on May 17-21, 2010. Juneau and Kotzebue RUBA staff presented information on budgeting, utility collections, rate setting, and financial reporting. Eleven students from eight Northwest Arctic Borough communities participated in the course which was designed to build skills, knowledge, and capacity associated with the safe and efficient operation of water and wastewater utilities in rural Alaska. Communities represented at the training included Ambler, Buckland, Point Hope, Selawik, Kobuk, Kivalina, Deering, and Shungnak. The class was well received and participants had lots of questions, which lead to discussion and increased learning for the participants. Klawock: RUBA staff from Juneau and Fairbanks presented the Clerk Management for Rural Utilities 32-hour course in Klawock April 19-23, 2010. The course was co-sponsored by the City of Klawock and RUBA. Nine students from six Southeast communities successfully completed the course which is designed to build skills, knowledge, and capacity associated with the safe and efficient operation of water and wastewater utilities in rural Alaska. Communities represented at the training included Thorne Bay, Klawock, Hydaburg, Coffman Cove, Elfin Cove, Kake, and Naukati. The material addresses tasks a ES RUBA Quarterly Report — 3rd Quarter SFY10 -10- RUBA Program Scope of Report utility clerk experiences and presents the relationship the clerk has with the customers, management and governing body. Kodiak: Anchorage RUBA staff traveled to Kodiak to present the Elected Officials Management for Rural Utilities course April 19-23, 2010. Nine municipal and tribal representatives representing Port Lions, Ouzinkie, Old Harbor, Akhiok and Larsen Bay attended the training. Topics covered during the training included an overview of government, roles and responsibilities of elected officials, meetings, ordinances and resolutions, policies” and procedures, financial management, and sustainability of water/wastewater utilities in rural Alaska. The topics that generated the most discussion dealt with budgeting, rate setting, and reasonable accommodations under the Americans with Disabilities Act. Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a training mini-grant program to provide airfare and lodging reimbursement to utility staff who attend RUBA sponsored classes. RUBA provided reimbursement to utility staff who attended the Clerks Management for Rural Utilities Elected Officials Management for Rural Utilities, Financial Management for Rural, two regional QuickBooks for Beginners, and one utility manager to attend the Southeast Sanitation meeting this quarter. The training funds require attendance and participation in the complete course prior to reimbursement being issued. Reimbursements for a total amount of $33,045.40 were awarded to 42 rural utilities. eS RUBA Quarterly Report — 3rd Quarter SFY10 -ll- Adak Ahkiok Akiachak Allakaket Ambler Atkiachak Bethel Buckland Chefornak Chignik Lake Chuathbaluk Coffman Cove Deering Diomede Ekuk Ekwok Elfin Cove Galena Gambell Grayling Hooper Bay Houston Hydaburg Kake Kaktovik Kaltag Kasaan Kiana Kipnuk Kivalina Klawock Kobuk Kotlik Koyukuk Kwethluk Larsen Bay RUBA Program Activity Map April 1 through June 30, 2010 Levelock Lower Kalskag Mekoryuk Mountain Village Nanwalek Napaskiak Naukati Nelson Lagoon Nikolai Noatak Noorvik Nuiqsut Old Harbor Ouzinkie Pilot Point Pitka’s Point Platinum Point Hope Port Heiden Port Lions Ruby Selawik Shishmaref Shungnak St. Mary’s Stebbins Stevens Village Teller Thorne Bay Togiak Toksook Bay Twin Hills . Upper Kalskag Voznesenka Wales White Mountain RUBA Program Activity Map April 1 through June 30, 2010 April — May — June 2010 4" Quarter SFY10 - RUBA Report Table of Contents Akiachak TRA. Alakanuk...... Chalkyitsik Galena... Gambell. Hydaburg. Larsen Bay Levelock... Nanwalek .. Nikolai... Platinum Port Heiden.. Port Lions Saint Mary’s Selawik..... Shishmaref. Stebbins........ Stevens Village Teller..... Togiak.. White Mountain... April — May — June 2010 4" Quarter SFY10 - RUBA Report April — May — June 2010 4" Quarter SFY10 - RUBA Report eee Table of Contents Non-RUBA Communities Adak.. Ambler .... Anchor Point... = Chignik Lake... 150 Diomede .. Elim... 149 Kaktovik.. Kiana.... Klawock Kobuk... Koyukuk... Mountain Village Napaskiak ... Nuigqsut......... Pilot Point ...... Point Hope April — May — June 2010 4" Quarter SFY10 - RUBA Report April — May — June 2010 4" Quarter SFY10- RUBA Report eee Ee OE Community Activity Reports Four Quarter SFY10 April 1 — June 30, 2010 April — May — June 2010 4" Quarter SFY10 - RUBA Report eee Report Akhiok Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office %\ 2007 Population: 33 Region: Kodiak Island Local Government: 2™ Class City ry “A, oe Water is derived from a dam and reservoir on a small Pe AP stream, is treated and stored. Akhiok provides piped gravity water and sewer system that serves all 25 homes in the community. Electricity is provided by City of Akhiok. RUBA Activity This Reporting Period RUBA staff has been working with the City of Ahkiok over four years and in that time the city has made amazing progress, especially in the last year. The council and community realize the importance of community health, financial stability, effective utility management, and sustainability. Two participants from Akiok attended and completed the Elected Officials Management for Rural Utilities course presented in Kodiak by RUBA staff on April 19-23, 2010. On May 12, 2010, RUBA staff traveled to Akhiok to conduct a RUBA management assessment. When RUBA staff arrived onsite, the mayor and vice mayor were well prepared to conduct the assessment and had all the necessary documentation ready. The City of Akhiok is currently meeting all essential indicators. There are nine sustainable indicators that are not being met. RUBA staff will continue to work with the community to meet those sustainable indicators. April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No ® All revenue and expenses for the utility are listed in the utility budget. K The utility has adopted a balanced realistic budget. & CO Monthly financial reports are prepared and submitted to the policy making body. & CF The utility is current in paying all water/wastewater electric bills. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators KK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. {) Budget amendments are completed and adopted as necessary. Ok Finances Comments: The City of Akhiok drafted, adopted and submitted a realistic balanced FY 10 budget. All revenue and expenses for the water/wastewater utility are listed within the budget. The council has drafted a FY11 budget that includes a line item for the subsidy of the water/wastewater utility. The FY11 budget will be adopted and submitted to Juneau before June 30, 2010 RUBA staff has worked with the vice-mayor to create a manual reporting system and financial reports are being prepared and submitted to the policy making body. The financial reports will compare actual income and expenditures to the budgeted amounts. The city owns the electric generator that supplies electricity to the community and the water treatment plant. In the fall of 2009, the city purchased a full order of diesel fuel for the generators. The community should be congratulated on purchasing the fuel independently without an outside lending source. The council plans to make another full order this fall with payment once again in full. The water and wastewater revenues are not sufficient to cover operating expenses; therefore the city subsidizes its 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. April — May — June 2010 4” Quarter SFY10 - RUBA Report Spr EGY A A A Seaarter SEI - RUBA Report Accounting Systems Essential Indicators Yes No (1 The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records O) Acash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. itainable Indicators OO A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. & OF The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXX WKH n o a im Accounting System Comments: The city council recently 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. Until recently the city utilized Corel WordPerfect for the monthly billing but the system was discontinued due to staff tumover. RUBA staff helped the city create a manual system that will be easier to use and help 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. Tax Problems Essential Indicators Yes No & OF Theutility has a system to accurately calculate, track, and report payroll tax liabilities. & 0 The utility is current on filing tax reports. & OCF The utility is current on making tax deposits. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility keeps a manual ledger for payroll. On May 13, 2010 the IRS and the Department of Labor stated that the city is current with all reports and deposits. April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No & (The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators OO & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. Oo The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OC The utility provides training opportunities to staff as needed and available. kh we HR Personnel System Comments: The City of Akhiok currently has a workers compensation insurance policy through Alaska Municipal League/Joint Insurance Association valid until 7/1/10. 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. Organizational Management Essential Indicators Yes No (1 The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. LJ The policy making body enforces utility policy. The utility has an adequately trained manager. C1 The utility has an adequately trained bookkeeper. (1 The utility has an adequately trained operator(s). (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators C) W The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. Xl The utility complies with the “Open Meetings Act” for all meetings. HRRXXRH Organizational Management Comments: 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 vice-mayor/utility operator attended the Elected Officials Management for Rural Utilities training class in April 2010 as well as an Organizational Management for Rural Utilities training in 2007. The Mayor attended a Financial Management for Rural Utilities training in 2006 and a QuickBooks training -10- April — May — June 2010 4" Quarter SFY10 - RUBA Report eS Eee eee Or in 2008. All trainings were provided by the RUBA program. The current utility operator is trained and holds a Provisional Level | certificates in both water treatment and water distribution. The city recently adopted a water/wastewater utility ordinance that is based on the Regulatory Commission of Alaska (RCA) model utility ordinance. Operation of Utility Essential Indicators Yes No & OC The utility operator(s) are actively working towards necessary certification. H The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X OR XRRRRR WO DOwOO Operation of Utility Comments: The preventative maintenance plan for the existing system is on file. The utility operator is trained and holds Provisional Level | certificates in both water treatment and water distribution, which expire on 12/31/2010. The utility operator reports to the council when there is a problem or he can foresee one. The utility does not meet all required drinking water regulations. The city is currently on the SNC list for monitoring violations for Stage 1 Disinfectants and Disinfectant by Products Rule and the Surface Water Treatment Rule. 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. RUBA Activities For The Coming Quarter The City of Akhiok is currently meeting all of the essential capacity indicators. RUBA staff is available to provide assistance to help meet any sustainable capacity indicators that are currently not being met. -1l1- April — May — June 2010 4" Quarter SFY10 - RUBA Report -12- April — May — June 2010 4" Quarter SFY10 - RUBA Report ees er’ Akiachak IRA Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2007 Population: 644 Region: Lower Yukon Local Government: Tribal Council od Akiachak Native Community-IRA (ANC) operates the washeteria, water treatment plant, garbage collection, and the honey-bucket haul system. ANC's council is the policy making body for the utility. A new well, water tank, water treatment plant and a road to the new lagoon have been completed. Currently, 72 homes and the school and teacher's housing are served by a piped system; other residents haul water from the community's watering point and ANC provides container haul (hoppers) for sewage. RUBA Activity This Reporting Period Akiachak was sent a correspondence on April 12, 2010 from State of Alaska Village Safe Water (VSW) notifying the Council that the water and sewer project would be removed from the Village Safe Water's Multi-Year Priority List unless the community elected to join Alaska Rural Utility Cooperative (ARUC). The community enrolled in ARUC's billing assistance program in June of 2010 and has expressed interest in full ARUC membership. The community continues to have tax problems. It is delinquent for federal payroll taxes in 2010. The March-April 2010 Lien Watch indicates ANC has unpaid payroll taxes for 2009. ANC is delinquent in depositing federal payroll taxes in 2010. A July 9, 2010 phone call to Alaska Department of Labor verified ANC is current with their Employment Security Compensation payments. The community subsidizes its water and sewer operations through gaming proceeds. ANC has not had a State of Alaska Gaming permit since 1990 but continues to hold gaming activities. The tribe applied for a gaming permit in 2006 and it was not granted. A June 1, 2010 application is pending. Their worker's compensation policy for March 27, 2010 through March 27, 2011 with Liberty Northwest Insurance Corporation was cancelled on June 15, 2010 because of failure to provide tax information for an audit. -~13- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. {C1 & Monthly financial reports are prepared and submitted to the policy making body. KI) The utility is current in paying all water/wastewater electric bills. ® The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. I The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. erie maeehebiatnaiemameataantnteaaeeeenetnaatneemniaeemenmeemmenmenaenamnemetaneeammamanel Sustainable Indicators Ol WB The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Oo XJ YTD revenues are at a level equal to or above those budgeted. KJ YTD expenditures are at a level equal to or below those budgeted. J A monthly manager’s report is prepared. & (1 Budget amendments are completed and adopted as necessary. Finances Comments: Akiachak's FY10 budget and monthly financial statements do not include the following expenses: past due electric bill to Akiachak Limited, past due accounts to Crowley Petroleum Distribution for their 2009 fuel purchase, projected fuel costs, amounts for back taxes to IRS, accounts payable for back gaming fees (2006-2009), and payments to Akiachak Bulk Fuel Tank Farm for its share in the farm's operational and maintenance and renewal and replacement costs. The business manager and accountant indicated that verbal and written financial reports are submitted at their tribal meetings, but minutes from the December 2009 tribal meeting fail to mention a financial report. Hard copies of the December 2009 and January 2010 monthly financial reports were provided to RUBA and are on file. The financial reports do not provide adequate detail to determine if the utility can be run without a deficit. The tribal council should be provided with monthly financial statements that give a complete picture of the tribe's revenues and obligations. The council's review of the monthly financial reports should be consistently documented in the minutes of tribal meetings and a copy of the reports should be forwarded to RUBA's Bethel office. RUBA staff contacted Akiachak Limited (the community's electric company) on March 5, 2010 and was informed that a payment was made to their account on January 26, 2010, however, their remaining balance was four times the amount of the average monthly bill. Monthly expenses for electricity for the water and wastewater plant are 50-60% of the tribe's total bill. Part of the delinquency is due to the refusal to pay waste heat charges for the water treatment plant despite having a contract to do so. The administrator informed RUBA staff that ANC had 30,000 gallons of bulk fuel available which he projected would last until September of 2010. Bethel RUBA staff contacted Crowley Petroleum Distribution on March 5, 2010 and was informed that ANC had a substantial past due balance and was accruing significant late charges on the account. Crowley also indicated that they had not been contacted regarding the outstanding bill. The tribal business manager informed RUBA staff that ANC did not qualify for a bulk fuel loan from Alaska Energy Authority because AN does not have a current State of Alaska gaming permit. RUBA staff contacted the Department of Revenue regarding this matter and was informed that the tribe has not had a gaming permit since 2006 and is responsible for paying state gaming fees for the years they continued gaming without a permit. The tribe has contacted the Department of Revenue and is attempting to get into compliance. There is also a significant outstanding balance to the Akiachak Bulk Fuel Tank Farm for ANC's share in the operational and maintenance and renewal and replacement costs of the fuel facility. ~14- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee Kp ort Accounting Systems Essential Indicators Yes No & C2 The utility has adopted a collection policy and actively follows it. & OCF The utility bills customers ona regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. & C2 The payroll system correctly calculates payroll and keeps records eS = A cash receipt system is in place that records incoming money and what it was for. X<] The utility has a cash disbursement system that records how money was spent. Sustainable Indicators H (OA chart of accounts is used that identifies categories in a reasonable, usable manner. ® Monthly bank reconciliation’s have been completed for all utility accounts. | The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The ANC accounting is using QuickBooks Pro. ANC is on a calendar year fiscal cycle. The accountant and bookkeeper are competent long-term employees and skilled workers who easily accessed records and provided verification needed for the accounting indicators. An example of a water and sewer billing statement, an accounts receivable aging summary, and a collections policy were provided and are in the RUBA files in Bethel. ANC's water and wastewater accounts receivable aging report showed only small amounts that were over 90 days past due. However, other services provided by ANC showed larger amounts 90 days past due. A cash receipt book is used for receiving cash and transactions are eventually entered into QuickBooks. ANC provided RUBA staff with the December 2009 and January 2010 bank reconciliations for the water and wastewater account. An example of a typical purchase order and invoice was provided to RUBA staff. Tax Problems Essential Indicators Yes No & C2 The utility has a system to accurately calculate, track, and report payroll tax liabilities. OO & The utility is current on filing tax reports. [CL] & The utility is current on making tax deposits. Ol & I fthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: ANC is not current on filing tax reports and making tax deposits. The March-April 2010 Lien Watch indicates ANC has unpaid payroll taxes for 2009.ANC is also delinquent in depositing federal taxes in 2010. A July 9, 2010 contact with Alaska Department of Labor verified that ANC is current with Employment Security Compensation payments. A July 9, 2010 phone call to Alaska Department of Labor verified the community was current with their Employment Security Compensation payments. ~15- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No Ol & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. ® The utility has adequate written job descriptions for all positions. & The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & CF The utility provides training opportunities to staff as needed and available. O Ww Oo Personnel System Comments: ANC workers compensation policy for March 27, 2010 through March 27, 2011 with Liberty Northwest Insurance Corporation was cancelled on June 15, 2010 because of failure to provide tax information for an audit. A copy of ANC's personnel policies adopted June 15, 2004 is on file with RUBA. Job descriptions for the tribal administrator, business manager, accountant, bookkeeper, water manager and water operator, along with copies of three 1-9s, were provided and are in RUBA files. ANC's also provided Bethel RUBA staff with two examples of employment verification forms which contained similar information as a letter of acceptance. Evaluations are not mentioned in the tribe's personnel policy and employees indicated evaluations do not occur. ANC should adopt and follow a written personnel evaluation process for their employees that ties job descriptions to the evaluation. An employee's performance should be reviewed and/or evaluated at least once a year. ANC provided the Bethel RUBA office with performance evaluations of two employees that were conducted on March 26, 2010. These evaluations were generic in nature and not directly tied to the employees' job descriptions. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. Cs The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. (1 The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators . OO) & The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. XRKERRRN -16- April — May — June 2010 4" Quarter SFY10-RUBA Report ——[—$—$—————————— EE ee—ccScS EE eee eee eon Organizational Management Comments: A copy of the ANC water and sewer ordinance as well as Akiachak Piped Water and Sewer System Business Plan are in RUBA files. The business plan was completed in January of 2005 and contains the business manager's resume on page 33 and a utility organization chart on page 4. The ANC staff also provided a more current organization chart. However, verification that either chart had been adopted by the tribal council was not provided. ANC's primary water and sewer operator has Operator in Training (OIT) certification for water treatment and water distribution. His certification needs to be upgraded to the new provisional level certificate. ANC's assistant water and sewer operator has a provisional certificate. Both operators need to take the level II test to be in compliance for operating ANC's Class II water treatment facility. Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. & OCF The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & OC 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xx HekK & MwWOOOO O Operation of Utility Comments: A preventative maintenance plan is on file with Bethel RUBA staff. The water and sewer facility has capacity to service seventy more residences. Construction to connect these residences is scheduled to start in the summer of 2010. An operator report was noted in the minutes of the January 2010 council meeting. On March 15, 2010 Bethel RUBA Staff contacted Akiachak's Remote Maintenance Worker (RMW) who indicated that ANC's water and sewer facility does not have a safety manual, inventory control list, or a critical spare parts list. A 2008 Consumer Confidence Report has been filed and the 2009 report is due in July. RUBA Activities For The Coming Quarter Bethel RUBA staff will continue assisting ANC with the FY10 budget and monthly financial reports so they reflect a complete financial picture of ANC's water and sewer utility. When these issues are resolved and ANC provides verification that it has a valid gaming permit and made payment of back gaming fees since 1990, the finance essential indicators will be re-evaluated. -~17- April — May — June 2010 4" Quarter SFY10 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 681 Region: Lower Yukon Local Government: 2™ Class City The City of Alakanuk operates the piped water and sewer system, the central watering point, flush tank and haul system, and washeteria/sauna service. The city council is the policy making body for the utility. There are 135 utility customers hooked up to the system. Water is derived from the slough, treated, stored in a tank, and piped to most of the community. New facilities include a water treatment plant, heated 300,000-gallon water storage tank, vacuum sewage plant, sewage lagoon, arctic piping and household plumbing. The new subdivision has been completed with all homes connected to the piped system. RUBA Activity This Reporting Period Bethel RUBA staff continues to offer assistance to Alakanuk staff in drafting and adopting a balanced realistic budget. The budget is not realistic and requires an amendment and monthly finance reports are not being completed; both documents are required to pass a RUBA management assessment and to be able to access sanitation grant funds. In February 2010, Bethel RUBA staff received a letter with a notice of cancellation of the workers compensation insurance coverage for the City of Alakanuk. RUBA staff contacted the city administrator and offered to assist the city in obtaining new coverage. The administrator contacted the insurance broker and submitted a check to get the insurance coverage back in order. The new insurance coverage was later confirmed by the broker. RUBA staff offered to assist the city in drafting personnel policies that include procedures for evaluations, discipline, and grievances. Bethel RUBA staff continues to send reminders to the city administrator requesting documentation for the RUBA assessment file. The city administrator explained that the city office has been having internet and phone problems. The fax machine is also working intermittently. It was agreed that the documents would be mailed as they are required to ensure continued funding for sanitation construction projects in the community. The administrator is waiting for the critical spare parts list from the water operator. -19- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & OCF Allrevenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. C1 The utility is current in paying all water/wastewater electric bills. X ® The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Oo KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. EK) Budget amendments are completed and adopted as necessary. woo Finances Comments: A budget was adopted and passed for FY10 (July 1 thru June 30). The budget listed the community revenue sharing funds in two places and will require an amendment. The city failed to file the monthly finance reports required as an essential management indicator. The administrator reported that nine thousand gallons of fuel was ordered and received in September 2009 and it is expected to be sufficient for winter needs. Alakanuk has money budgeted for fuel purchase if additional fuel is necessary. The City Administrator provides verbal reports to the council and these are recorded in the monthly meeting minutes. Accounting Systems Essential Indicators Yes No & OC The utility has adopted a collection policy and actively follows it. & C0 The utility bills customers on a regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. Ri An accounts payable system is in place. ® [] The payroll system correctly calculates payroll and keeps records Ri A cash receipt system is in place that records incoming money and what it was for. QR The utility has a cash disbursement system that records how money was spent. Sustainable Indicators QR OO A chart of accounts is used that identifies categories in a reasonable, usable manner. & C1 Monthly bank reconciliation’s have been completed for all utility accounts. i} The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -20- April — May — June 2010 4" Quarter SFY10 - RUBA Report aE ee Lert SFI - RUBA Report Accounting System Comments: The city utility ordinance was effective as of March 2008 and includes a collection policy. The collection policy identifies a grace period of 45 days for past due utility bills. RUBA staff has recommended adjusting the grace period to 30 days. The city administrator contacted RUBA staff with questions regarding how QuickBooks processes payroll tax liabilities. He reported that due to QuickBooks taking two days to deposit payroll into employee accounts, timesheets are submitted two or three days before the end of the pay period, and employees enter hours for time not yet worked. RUBA staff provided assistance regarding how to enter hours and issue checks, and also provided contact information for the RUBA sponsored QuickBooks Help Line contractor. Tax Problems Essential Indicators Yes No & CO The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CF The utility is current on filing tax reports. KX OF The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Based on contact with Internal Revenue Service and the Alaska State Department of Labor, the city is deemed to be compliant with all tax requirements. There are no reported tax liens in the April 2010 Lien Watch report. Personnel System Essential Indicators Yes No &X CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & OC The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & OF The utility has adequate written job descriptions for all positions. & CC The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. CO The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OC The utility provides training opportunities to staff as needed and available. xX kX w Personnel System Comments: Alakanuk did not have workers compensation insurance for the fourth quarter of FY 10 according to the State web site. RUBA staff contacted the community and the insurance broker and assisted with resolving the issues. Job openings are posted in at least three public places. There is a probationary period of three months for new hires. The City Administrator provides on the job training for new employees and other training is given when funds are available. City staff participated in two RUBA sponsored trainings recently. The new city clerk/treasurer attended the QuickBooks accounting course offered in Anchorage. She is quickly adapting to her position and able to use the skills learned to -21- April — May — June 2010 4" Quarter SFY10 - RUBA Report maintain the city accounting functions. The city administrator and the city clerk attended the RUBA sponsored 32-hour course 'Clerk Management for Rural Utilities’ course in Anchorage. City staff participated fully in both classes and were awarded airfare and lodging reimbursement from the RUBA training fund. Upon return to the community, the clerk assumed more of the responsibilities for meetings and ordinances using the skills learned. Organizational Management Essential Indicators Yes No (1 The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators ® The utility has adopted an organizational chart that reflects the current structure. | The policy making body meets as required. N The utility complies with the “Open Meetings Act” for all meetings. HHRXXXRH Organizational Management Comments: The city of Alakanuk provides water/wastewater services and operates a washeteria. The washeteria includes showers and saunas. The city held elections and certified the election results. The city council is active in reviewing and monitoring utility policies. The administrator has been in his position for over two years and has received grant writing training, QuickBooks training, and attended three RUBA utility management trainings. His personal goal is to attend all eight of the management courses and become a certified utility manager. The city has a city clerk/treasurer who is now responsible for monthly billings and collections. She is new to the position but has previous financial management experience and has completed the RUBA sponsored QuickBooks for Beginners course. Operation of Utility Essential Indicators Yes No & C0 The utility operator(s) are actively working towards necessary certification. & OCF The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X X OWOOO KHORRER B -~22- April — May - June 2010 ° 4" Quarter SFY10 - RUBA Report ne NO EAL ES RUBE Report Operation of Utility Comments: The Alakanuk Water System is on the significant non-complier list for violations of the Surface Water Treatment Rule and Stage | violations. The last violation in February 2010 was due to a missed monthly bacti sampling. There is no known hardwear problem. Alakanuk water treatment system is a Class 2 and the wastewater treatment system is Class 1. They have one operator, Kevin Joseph, who is certified as a water operator | and wastewater operator 1. He continues to attend training when possible. RUBA Activities For The Coming Quarter RUBA staff will monitor the utility and provide assistance when requested. -23- April — May — June 2010 4" Quarter SFY10- RUBA Report Chalkyitsik Activity Report Community Overview Lead RUBA Staff: Brendan Smyth, Fairbanks Regional Office 2007 Population: 79 Region: Interior Local Governments: Tribal Council rT The Chalykitsik Village Council owns and operates the * A central watering point and washeteria. The Village eae, Council is the policy-making body for the utility. Residents haul water from the watering point and use honeybuckets or outhouses for sewage disposal. The utility provides piped water service to the school. A utility master plan was completed to study improvements needed to provide a community system. Chalkyitsik has been funded by Alaska Native Tribal Health Consortium (ANTHC) for $799,690 for water treatment improvements, connecting the school and ten homes on the west side to piped water and sewer, and a community watering point. The utility has also been awarded a DEC/VSW grant of $192,400 for Phase 2, and a USDA/RD grant for Phase 3 in the amount of $405,700. RUBA Activity This Reporting Period Fairbanks RUBA staff contacted the tribal administrator and to discuss the current RUBA assessment. RUBA staff explained the essential indicators and what was required to correct the current deficiencies. The administrator agreed to submit the necessary documentation to the Fairbanks office. RUBA staff also provided information about available QuickBooks training both on and off site. RUBA staff contacted the administrator in May and June regarding the preparation of the FY11 budget. As of this writing, the draft budget has not been completed. ~25- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No {All revenue and expenses for the utility are listed in the utility budget. OO & The utility has adopted a balanced realistic budget. & CO Monthly financial reports are prepared and submitted to the policy making body. & OF The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. ( W = yvTDrevenues are at a level equal to or above those budgeted. XX) YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. XX Budget amendments are completed and adopted as necessary. Finances Comments: The village council does not have an entity budget or a utility specific budget. The tribal administrator reports on the finances of the village during the monthly meetings. The utility is current on paying electric bills. The washeteria expenses recorded in the financial reports are limited to payroll and taxes and nominal amounts for fees, parts, and supplies. Expenses for electricity and fuel are not recorded by department. Fuel is flown in as needed approximately every four weeks. The council obtained a Bulk Fuel Loan from the State of Alaska. In April 2010, Alaska Energy Authority (AEA) contacted RUBA staff and asked for assistance in getting Chalkyitsik to make payments for the fuel loan. RUBA will research the documentation provided by the community and the request from AEA. Revenue is recorded in a usable manner but the expenses are not so it is not possible to determine if revenue is sufficient enough to cover expenses. Customers prepay for electricity using the powerstat card system, the self hauling watering point is free, and the washeteria uses tokens. Each token is $2.50. The washers, dryers, and showers each take two tokens per cycle. The tribal administrator collects payment for electricity, tokens, and for other services provided (maintenance services, equipment, building rental, State of Elections). Revenue is given to the bookkeeper who enters the amounts into QuickBooks. Since there is no budget, it is not possible to determine if revenue and expenses are at a level equal to, above, or below budgeted amounts. At the council meetings, the administrator provides written and verbal management reports that explain the QuickBooks reports. -26- April — May — June 2010 an Quarter SFY10 - RUBA Report Oe Report Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. QR The utility bills customers on a regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. KX] An accounts payable system is in place. & (0 The payroll system correctly calculates payroll and keeps records & CO Acash receipt system is in place that records incoming money and what it was for. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators [] & A chart of accounts is used that identifies categories in a reasonable, usable manner. QR Monthly bank reconciliation’s have been completed for all utility accounts. XK] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The school is the water utility's only billed customer. A service agreement between the tribe and school exists which outlines the rights, responsibilities, and rates. The school pays monthly, 12 months per year. A copy of the bill is on file in Fairbanks. No other customers are subject to collections because all utility services are either prepaid or paid for at the time of service. Accounts receivable are tracked for the electric utility. The school is not part of the accounts receivable system. Chalkyitsik does not use an accounts payable system; expenses are entered when bills are paid. QuickBooks is utilized for the payroll system. The cash receipt system is a combination of manual and computer reporting. As customers prepay for electricity or buy washeteria tokens, the tribal administrator receives the money and writes a receipt, a copy of which is permanently retained in the wire bound receipt book. The bookkeeper uses the receipt book to accurately post the amounts to the electricity or washeteria income accounts. Expenses for the water utility are disbursed from the utility checking account and a description of what the money was spent on is provided. Before checks are written, a check request is submitted, the administrator reviews the request and the bookkeeper confirms that funds are available. The crucial step that is missing is that funds are not verified in the budget. The chart of accounts is very inclusive. Monthly bank reconciliations are completed. The tribal council has a purchasing policy as part of its Finance Policy and Procedures Manual (a copy is on file in the Fairbanks office). -27- April — May — June 2010 4" Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No H The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CF The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: RUBA staff has copies of the payment statements for the IRS on hand in Fairbanks, no further tax issues are seen at this time. The IRS and Alaska State DOL deem Chalkyitsik compliant with taxes at this time. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & CO The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. ® The utility has adequate written job descriptions for all positions. KX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. (1 The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. bd The utility provides training opportunities to staff as needed and available. & we Personnel System Comments: Workers compensation insurance is through Alaska National Insurance, valid until November 2010. The policy is posted on the council wall and RUBA staff obtained a copy. The village has a personnel policy which is adequate; the policy outlines the hiring process and describes the probationary period. Job descriptions exist for the utility positions. Formal written evaluations are not done, as verbally told to RUBA staff, and no evaluations were noticed in employee files. Letters of reprimand, or warning, are provided to employees and corrective performance meetings between employee and the village council are done (as documented by letters between the tribal administrator and employees but which RUBA staff did not take copies). The personnel policy and procedures manual outlines the hiring process starting with the recruitment notice, selection, and even an interview summary sheet. Personnel files contain the necessary documentation of I-9, application, and letter of acceptance. The probationary period is 90 day, during which job-training occurs. Training opportunities are available to staff through Tanana Chiefs Council (TCC) and RUBA; the administrator has taken advantage of these in the past and is currently scheduled to attend a TCC training in May. -28- April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No (1 The entity that owns the utility is known and the entity that will operate the utility is set. C1 The policy making body is active in policy making of the utility. (The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Xl The utility has adopted an organizational chart that reflects the current structure. & (1 The policy making body meets as required. X C= The utility complies with the open meeting act for all meetings. HRRReee Organizational Management Comments: A signed ordinance stating that the tribe has responsibility of the utility and tribal bylaws allow for the tribe to assume this power, both of which RUBA has a copy of in the Fairbanks office. The tribal council is the policy making body for the utility. The policy making body enforces the policies in place. The manager currently working for the village is the interim manager, the council is looking for a replacement after the old manager resigned in June 2010. The village does not have a bookkeeper at the moment and only has a few employees working in the office. The operators are trained though they have been lax in taking samples for the state agencies. The necessary ordinances necessary to give authority are in place and signed by the city council. The utility has adopted an organizational chart that reflects the power structure of the utility. The policy making body has been meeting as required. The community is not a municipality so is not required to follow the open meetings act. -~29- April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. & OC The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 4} 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. oO The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to-the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. | XROOk DOORWOR Operation of Utility Comments: The primary operator, Larry Henry, has a water treatment and distribution OIT level certification which is valid until 2010. The utility has a preventative maintenance plan, as part of the larger operations and maintenance manual. The utility manager, who the tribal administrator informally identified as Willie Salmon, receives verbal updates from the water operator and Mr. Salmon does make routine checks on the facility in addition to periodically working in the utility. Mr. Henry, the operator, provides a list of daily activities and notes to the administrator when he submits his time sheet. The list identifies work completed and operations issues. The administrator was unsure if a safety manual existed but stated that safety meetings between the tribal council and the employee to discuss drinking issues occur. The utility has been operating at the proposed levels for the community. The utility provides reports to the council monthly during the council meetings. The most recently required CCR is from 2007, RUBA took a copy of the first page of the report. Currently, the utility is on the SNC list for a stage 1 violation. As of March 2010 the utility has not turned in any samples to get back in compliance DEC require 12 straight months of reporting to become compliant for Stage 1. Water operator, Larry Henry, was able to provide a hand written list of parts and supplies to RUBA. An email request to the ANTHC engineer asking for assistance in obtaining a formal list, which would have been created specific to the utility, has not been returned. RUBA Activities for the Coming Quarter: RUBA staff will continue to assist the community as requested. RUBA staff strongly suggest the administrator attend a QuickBooks training class or will be nominated for a QuickBooks visit. -30- April — May — June 2010 4" Quarter SFY10 - RUBA Report ee re eae aes EE Galena Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Regional Office 2007 Population: 580 Region: Interior Local Governments: |* Class City od Water is derived from wells and is treated. There is a a 200,000 gallon reservoir and a community leach field PN gol There is a 200,000 gallon reservoir and a community leach field. Sixty one customers are connected to the fully piped system and fifty four customers have water delivered. Some customers only have water delivered as they have private septic systems while others pay the city to dispose of waste water on an as needed basis. The City began operating the landfill, located on the former Campion AFS grounds, in 1997. RUBA Activity This Reporting Period Fairbanks RUBA staff traveled to Galena on June 29 through July 2, 2010 to conduct a RUBA management assessment and provide assistance with records retention. The assessment will be finalized this quarter and the online report will reflect the analysis. RUBA staff also traveled to Galena in April to assist the clerk with a variety of projects and to obtain the monthly finance reports required for the RUBA assessment. RUBA had sponsored onsite training by the QuickBooks Pro contractor and Galena remains responsible for sharing twelve months of monthly finance reports generated by QuickBooks. RUBA also assisted in locating financial data for an upcoming audit, locating various permits and fuel spill response manuals for EPA, and completing the Alaska Municipal League Joint Insurance Association (AMLJIA) insurance exposure questionnaire. -31- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Hi All revenue and expenses for the utility are listed in the utility budget. [1 W& The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. 1 The utility is current in paying all water/wastewater electric bills. & CF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. KI] YTD revenues are at a level equal to or above those budgeted. KI YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. KK Budget amendments are completed and adopted as necessary. oOo Finances Comments: RUBA has financial reports as current as June 30, 2010. The FY11 budget has been introduced and will be passed in July 2010. The FY10 budget was adopted with a negative net income, therefore it is not balanced, although, financial reports for the end of FY 10 show that the city exceeded the negative net The FY 10 budget was not balanced or realistic but the recently passed FY11 budget projects a net income of $1.39 million. As the RUBA assessment is specifically interested in the financial stability of the water/wastewater utilities the city has three enterprise classes: base water (the former Air Force base), sewer, and water. The base water class projects $74,853 in surplus, the sewer will be negative $4,704 and the water class will be negative $14,697, because two of the three classes that RUBA is specific to, the essential indicator is marked 'no'. The council is not provided with monthly financial reports, although, the city manager provides a financial interpretation to the council. The meeting minutes reflect the reports from the manager; RUBA has copies of the last three months of minutes. According to the QuickBooks accounts payable report the city is current in paying its bills. As the manager noted to RUBA staff, city departments are not charged for city services and it is his desire to make that change in the accounting procedures. The city has fuel on hand to last into the fall of 2011, the fuel supply was from the air force at the time of base decommission. As the fuel was not purchased, the city is not receiving Power Cost Equalization (PCE). The city stated that by summer 2011 enough revenue will be generated to purchase fuel and be eligible to return to PCE. At the end of the fiscal year the utility income was $3,244,564 and utility expenses were $352,120, a net surplus of $2.8 million, therefore, it appears that the city is receiving revenue sufficient to cover operating and repair and replacement expenses. The actual revenue is $3,211,564 while budgeted revenue was $3,335,450, a shortfall of $90,885 which is why the sustainable indicator, "YTD revenues are at a level equal to or above those budgeted’, is marked no. The utility expenditures are under budget by $725,379. The city has not passed any budget amendments. Due to the wide variance between the budgeted and actual amounts an amendment is recommended. ~32- April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records (1 Acash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators OO Achart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. (1 The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. KKK ww a WORX Accounting System Comments: The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. A collection policy is in city ordinance and states that all city services will be discontinued until payment is made. This appears to have been very effective, as the collection rate was quite high. With The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. The accounting staff consists of two people, a temporary financial director from Anchorage and an accounting assistant who is located in Galena. A collection policy is in place; city ordinance states that all city services will be discontinued until payment is made and the city is reinstating a finance charge on delinquent accounts. The Accounts Payable Aging Summary report for FY 10 shows that the city is current with bills, which is an improvement from the last assessment in 2008 as the city was delinquent with vendors. The city has outstanding debt, primarily a result of the base closure, but successfully received a one percent, 15 year loan, with the Alaska Municipal Bond Bank for a total amount of $2.45 million. As is standard with all QuickBooks products an adequate system is in place for tracking, recording, and reporting transactions. A wire bound receipt book is used for all customer payments and the receipt is given to the customer while they are in the office. The receipt book is used to enter payments against the customer balance into QuickBooks; this is a daily occurrence. Day-do-day purchases have been restricted; the city is taking a firm stance on purchases to control expenses. All purchase requests must be approved by the city manager who, along with the clerk, are the only employees with access to city debit cards. Tax Problems Essential Indicators Yes No {& 1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. Ol ®& The utility is current on filing tax reports. O & The utility is current on making tax deposits. (1 & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: QuickBooks accurately calculates and reports payroll taxes. As of a July 1, 2010 phone conversation the Department of Labor deems Galena to be out of compliance. As of June 22, 2010 the IRS deems Galena to be out of compliance. Galena is listed on the January-February tax lien report. -33- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No x} The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators (1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Xl The utility has adequate written job descriptions for all positions. Ri [1 The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. Ol & The utility has an adequate written hiring process. X x | The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. (1 The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. xX The utility provides training opportunities to staff as needed and available. Personnel System Comments: Workers compensation insurance is provided through the Alaska Municipal League-Joint Insurance Association and is in effect until July 2011. RUBA has a faxed copy of the notice of workers compensation insurance coverage in the Fairbanks office. The personnel policy and procedure manual is comprehensive; a copy is provided to each new hire with a signature page that acknowledges receipt and is filed in the employee's personnel folder. RUBA staff has copies of job descriptions for city positions. The annual evaluations are based on the job description. RUBA staff and city staff were not able to locate a specific written hiring process. The current process is that a vacancy notice is posted in town at four locations and the notice is read on the local public radio station for ten days. Applicants submit their application and if there is more than one applicant, a list of interview questions is created for the interviewer. Galena Personnel Policies and Procedures Title 15.10.430 (A)(1) (this Title 15 document is separate from the Galena Code of Ordinances as Title 15 in the code has to do with building and construction) states that there are to be two separate personnel files for each employee, one public and one confidential. Between the two files, all necessary documents are retained. Included in the confidential files are evaluations, which are done after the six-month probationary period. New hires are provided with orientation and job-training, to the extent needed for the position. The personnel manual states that 'the city encourage[s] employees to avail themselves of training and educational opportunities directly applicable to their city positions in order that they may provide more effective service to the public.’ The new city clerk was in Fairbanks for computer classes and spent approximately three days of intensive one-on-one training with RUBA staff. -~34- April — May — June 2010 4" Quarter SFY10- RUBA Report ee Oe eportl Organizational Management Essential Indicators Yes No (] The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. X] The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). (The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & CO The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & The utility complies with the open meeting act for all meetings. HWAHHORW Organizational Management Comments: The city is the owner of the water and electrical plants (Galena Code Title 13) and city employees operate both utilities. The city council is the policy making body, the city manager oversees the day-to- day management of staff. Mr. Ben Koontz is the utility manager, not necessarily in title but he essentially fulfills the duties. The city council is very active in setting and enforcing utility policy, as is supported by council meeting minutes. The city manager and ‘utility manager’ are fulfilling the job duties. The city uses an Anchorage based person to assist in completing the financial director duties, at a large expense to the city, the time necessary to fulfill the job functions cannot be met on a periodic, visiting basis and, while adequate, it is suggested to have a full time Galena based employee. The financial billing clerk has attended QuickBooks training and is doing well, to assure that details are not missed it is recommended that bills, payroll, and other minutia oriented functions be carried out away from distractions. The city has an organizational chart that shows the current structure, the policy making body (city council) meetings are open to the public with the exception of executive sessions as allowable by law. Operation of Utility Essential Indicators Yes No & OF The utility operator(s) are actively working towards necessary certification. BH OCF The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators i} 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. & C2 The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. & OC The utility is operating at the level of service that was proposed. QR The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Community Confidence Report (CCR). & (1 The utility is not on the Significant Non-Compliance (SNC) list. & © The utility maintains an inventory control list. X The utility maintains a critical spare parts list. April — May - June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Comments: One water operator has a level one wastewater treatment certificate and a level two water treatment and water distribution certificate. The other water operator has a level two water treatment certificate. A preventative maintenance plan is located in the plant. The utility manager provides operation and maintenance reports to the city manager who includes them into a report for the council. AMLJIA provides telephonic safety meeting which are attended by city staff. Operations of the utility are functioning as intended and no major outages have occurred. The most recent CCR has been completed and RUBA obtained a copy. The city is not on the SNC list dated May 2010. RUBA Activities for the Coming Quarter: Phone and email help as needed. -36- April — May — June 2010 4" Quarter SFY10 - RUBA Report Eee ee port Gambell Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 662 a Region: Bering Straits Local Governments: 2™ Class City od Water is derived from a shallow aquifer at the base of cS Sivuokuk Mountain, and is treated and stored in three Pre, AP storage tanks. One hundred twenty-one homes and 13 public and commercial buildings, including the school and washeteria, are now connected to the piped water and sewer system. Forty three homes in the original townsite still are not connected to the piped system; their residents haul water and use honeybuckets. A feasibility study is complete. A new water source and additional water storage tanks are needed to ensure no shortages will occur. Significant infrastructure growth is proposed over the next 5 years. The first phase of improvements upgraded the existing infrastructure, including water treatment, lift station upgrades, and a 2.2 million gallon water storage tank. The second phase will be to develop a well field 2 miles outside of town at the south end of Troutman Lake, and construct a summer only raw water transmission line. The third phase will be to provide water and wastewater service to Old Town (approximately 43 service connections). Ultimately, there will be 174 service connections. 174 residential service connections. RUBA Activity This Reporting Period Nome RUBA staff, Steve Brock and Leroy Seppilu, travelled to Gambell to perform a RUBA management assessment on May 5-6. Gambell utilities did not meet five essential indicators. Nome RUBA staff returned to Gambell on May 26-27 at the request of the city to provide assistance with completing a U.S. American Recovery and Reinvestment Act grant application for funds to match a VSW grant to repair water and wastewater mains that freeze up during the winter. RUBA staff reviewed the grant requirements and searched city records to find necessary documentation. RUBA staff also discussed fuel and food issues with the mayor and other community members. Mayor Booshu said the assistance provided by the local Native Corporation to lower the cost of fuel was running out and that the store was setting the fuel price at $9.70 per gallon until the barge arrives with new fuel. The concern is that high fuel prices may affect the ability of residents to pay their water and wastewater bills. The trip proved unsuccessful because there was a death in the utility clerk's family and RUBA staff was not able to obtain the necessary information to complete the sanitation grant application. -~37- April — May - June 2010 a Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & ( Allrevenue and expenses for the utility are listed in the utility budget. KK] The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. x) 1 The utility is current in paying all water/wastewater electric bills. Q The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. [YTD revenues are at a level equal to or above those budgeted. Ol & yvTDexpenditures are at a level equal to or below those budgeted. & OC A monthly manager’s report is prepared. ] Budget amendments are completed and adopted as necessary. Finances Comments: The Gambell City Council passed the water and sewer utility's FY10 budget: expenditures of ($193,750) exceed expected revenues ($188,000) by $5,750. The washeteria's expenditures ($17,700) exceed expected revenues ($8,400) by $9,300. Overall, the combined water/wastewater/washeteria budget has a deficit of $15,050. The Garbage/Landfill budget has zero revenues and expenditures of $12,250. One of the council members RUBA staff talked to said that it was very important for the city to provide washeteria and landfill services. The utility's past due account receivables are $10,000 annually. The utility has contacted a collections agency to collect some of the past due amounts. The collection agency will keep at least 30% of the amounts collected. Currently 110 residential customers are billed $97 a month for water and wastewater services. Six commercial customers pay $185 a month. Sivugaq Lodge pays $850 a month. The school district pays $0.22 a gallon for treated water. The city uses all of its $100,000 from Norton Sound Economic Development Community Benefits Share Program to purchase heating oil for the washeteria and the water and wastewater utilities use. -38- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee RA Report Accounting Systems Essential Indicators Yes No & OC The utility has adopted a collection policy and actively follows it. x C1 The utility bills customers on a regular basis. i} An accounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & OC The payroll system correctly calculates payroll and keeps records & OO Acash receipt system is in place that records incoming money and what it was for. px 1 The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators R $A chart of accounts is used that identifies categories in a reasonable, usable manner. a Monthly bank reconciliation’s have been completed for all utility accounts. (CO The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The Gambell Water and Wastewater Department has referred past due accounts to a collections agency. The agency will be paid 30% of the past due amounts collected. QuickBooks Pro is used for billing and for most others aspects of financial management of the utility. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. Kl The utility is current on filing tax reports. & (CO The utility is current on making tax deposits. & (If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility uses QuickBooks Pro for payroll, payroll reports and taxes. The city is current on filing federal and state tax reports and tax deposits. The city’s Employment Security Contribution (ESC) rate for 2010 is 1.15%. IRS and DOL have deemed Gambell to be compliant at this time. -~39- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & C2 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. (1 The utility provides training opportunities to staff as needed and available. X wR ww O OOF oO©8OF X Personnel System Comments: The utility department's workers compensation coverage and general liability insurance has lapsed. The utility's insurer was Alaska Municipal League Joint Insurance Association (AMLJIA). The city stated that the lapse in insurance is due to lack of funds to pay for the coverage. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. (1 The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators (1 & The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. R The utility complies with the open meeting act for all meetings. RRXRHR Organizational Management Comments: The Gambell Utility Board, which was created by the city council through Chapter 36 of the city's code of ordinances, is currently not active and has not met for months. The Gambell City Council, however, is very involved with the utility issues and has utility issues in its regular monthly meeting agenda. - 40 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No XK CO The utility operator(s) are actively working towards necessary certification. Ol & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators (1 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. KK] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. (1 The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). KK] The utility is not on the Significant Non-Compliance (SNC) list. (1 The utility maintains an inventory control list. The utility maintains a critical spare parts list. OBORRB Operation of Utility Comments: The water plant operator is certified at the level necessary to operate and maintain the utility facilities and has several certifications from passing Remote Maintenance Worker training programs. A preventative maintenance plan was unable to be located at this time. RUBA Activities for the Coming Quarter: The City of Gambell does not meet all of the essential capacity indicators. In order to meet them, the utility must take the following actions: amend the FY 10 budget to balance the revenues and expenditures for the water and sewer utility, washeteria and landfill, secure workers compensation coverage, locate the preventative maintenance plan or develop a new one. The rates charged to all customers should be sufficient to cover any unforeseen emergencies, such as the incidents with gasoline and grease in the water mains and the increase in water sampling costs. The utility should include funds in the utility budget for parts and labor due to unscheduled events. The total past due receivables are over $18,000, including $10,000 that is past due more than a year. The utility clerk has contacted a collections agency and the utility is expecting to pay the agency about 30% of the past dues collected. This may or may not be effective. Another collection method is to have the utility take the customers to small claims court. Once the judgment is made in favor of the utility, the utility can try to garnish some of the customers Permanent Fund Dividend checks. It may take a while and cost some money, but the utility can get its money back for water and sewer services provided. Pay the past due of $7,000 to AML-JIA for workers compensation coverage and renew workers comp. coverage or piggy-back with the City of Gambell with its workers compensation coverage to save on general liability insurance and workers compensation coverage. State law requires employers to have workers compensation coverage for its employees. Work with the DECs Village Safe Water engineer or Norton Sound Health Corporations Remote Maintenance Worker Program to set up a preventative maintenance plan for the water and sewer facilities. Develop a contingency fund in the utility budget for parts and labor due to unscheduled events. -~41- April — May — June 2010 4" Quarter SFY10 - RUBA Report -~42- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee eo Hooper Bay Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2007 Population: 1149 . Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City od The City of Hooper Bay operates multiple watering A ee, oP points within the village and a solid waste site and wastewater lagoon. The residents self-haul their own garbage and honey buckets. The Hooper Bay Utility Advisory Board advises the city council on utility operations and management. The new school, teacher housing, old clinic, head start building and washeteria are connected to the piped water and wastewater. The new washeteria/water treatment plant is now operational. The watering point at the old town site is connected to the new water treatment plant. The Traditional Council is pursuing a solid waste management grant to upgrade the existing lagoon. Over 75 homes were to be connected to the water and sewer lines by the end of FY08. The water and sewer project is planned to be completed in 2010. RUBA Activity This Reporting Period The community continues to faithfully fax in IRS 941 deposit slips to Bethel RUBA office twice a month. On June 1, 2010 long time City Administrator Rafael Murran resigned and Bosco Olson will be taking his place. A July 8, 2010 phone call from Alaska Public Entity Insurance verified that the city has renewed it's workers compensation insurance coverage until June 30, 2011. A July 7, 2010 correspondence from the Alaska Department of Labor indicates that the city is current with its Employment Security Compensation payments. The city is also current with its IRS 941 deposits. The community has a piped water and wastewater system design and construction project that will continue through 2014. On July 8, 2010 the project engineer indicated that he was waiting to hear if the community will be awarded a $300,000 EPA Grant that would extend the 2010 construction season into November instead of terminating in August. RUBA essential indicators will have to be met for the funds to be released. The City Administrator contacted Bethel RUBA staff to discuss the spring fuel order for the city facilities. He also reported that the new wood burning furnace was installed, however the city did not have any wood to bum. The city is researching sources of wood supply. -43- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. () & Monthly financial reports are prepared and submitted to the policy making body. ® The utility is current in paying all water/wastewater electric bills. ® The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KX C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators O 1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X CO YTD revenues are at a level equal to or above those budgeted. X [] YTD expenditures are at a level equal to or below those budgeted. X 1 A monthly manager’s report is prepared. KK] Budget amendments are completed and adopted as necessary. Finances Comments: Bethel RUBA staff has not received monthly financial reports from the city since April 2010. The format of the report needs to be more detailed and verification is needed that the reports are presented to the city council at the regularly scheduled monthly meetings. Accounting Systems Essential Indicators Yes No & (1 The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. KI An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. RRA OO00 O Sustainable Indicators QR A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. Oo KX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: RUBA staff determined whether or not the above indicators are met by reviewing reports received from the community on a monthly basis. The reports are on file in the Bethel RUBA office. Water and wastewater billings are sent out the first of every month. The utility uses QuickBooks Pro for its financial accounting. -44- April — May — June 2010 4" Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No [] The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Kee Tax Problems Comments: The community continues to be in compliance with tax requirements. The payroll tax deposits are made electronically and copies of deposit slips are on file in the RUBA Bethel office. IRS and the Alaska State Department of Labor confirmed compliance of tax reports and deposits. Personnel System Essential Indicators Yes N fu C1) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XJ The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. ® The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. O ® X WO WO X O Personnel System Comments: RUBA staff has copies of documentation for the above indicators on file. Workers compensation is provided through AMLJIA and the coverage is effective July 2009 to June 2010. The qualified long term staff in the city administration is a huge benefit to this organization. ~45- April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No (1s The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators (1s The utility has adopted an organizational chart that reflects the current structure. Xl & The policy making body meets as required. & The utility complies with the open meeting act for all meetings. HRRXNAH Organizational Management Comments: The utility has an adopted ordinance, however a new water and wastewater ordinance that meets the requirements of the Regulatory Commission of Alaska's (RCA) is being considered for adoption by the city council. The administrative, finance staff, and water operator are competent long term employees. The city continues to make sure the operators are current with certification. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. oO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators (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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. | OW WO XMXKROOO OR Operation of Utility Comments: On July 21, 2010 Bethel RUBA staff contacted CE2 Engineers and requested they provide the city a preventive maintenance plan. An inventory control list; a critical spare parts list; and a safety manual On July 21, 2010 Bethel RUBA staff contacted CE2 Engineers and requested they provide the city a preventive maintenance plan. An inventory control list; a critical spare parts list; and a safety manual also need to be included in the operations and maintenance manual for the new facility. -~46- April — May — June 2010 4" Quarter SFY10 - RUBA Report RUBA Activities For The Coming Quarter The FY 10 budget needs to be amended to include the sales tax and gaming subsidies and the carry over funds from FY 09 grants. An operation and maintenance manual and a preventative maintenance plan is needed for the new washeteria/water treatment plant. ~47- April — May — June 2010 4" Quarter SFY10 - RUBA Report ———— Se ee Report Hughes Activity Report Community Overview Lead RUBA Staff: Brendan Smyth, Fairbanks Regional Office 2007 Population: 76 Region: Interior Local Governments: 2™ Class City ed In 1968, a community water distribution system and Vee ot individual household septic tanks were constructed. Initially the system worked well, and was expanded in 1973, however, the system froze during 1983 leaving only a few facilities operational. Thirty outhouses were constructed in 1984 to replace the frozen septic systems. Many Hughes residents currently haul treated water from the central watering point. Most homes still use honeybuckets and outhouses. Eleven homes on the North Side of town, plus the school, teacher's apartments, the clinic and the city/tribal offices have piped water and sceptic tanks. Several additional homes are expected to be connected this summer. Preliminary work on a new landfill site, new sewage lagoon, and water treatment improvements is also expected to be completed this year. Electricity is provided by Hughes Power and Light. There is one school in the community, attended by approximately 17 students. A local clinic is located in Hughes, tended by a health aide. RUBA Activity This Reporting Period Fairbanks RUBA staff traveled to Hughes on March 30-31, 2010 to conduct a RUBA management assessment. While on site, RUBA staff provided assistance with entering the adopted utility budget into QuickBooks and with grant writing procedures. The draft assessment was presented to Hughes for review and then finalized in April. All supporting documentation is available in the Fairbanks office for review. During the quarter, RUBA staff also helped the community staff with issues concerning the FY11 Community Revenue Sharing and Payment in Lieu of Taxes (PILT) process. -~49- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No ® O & &X Xl ® O ® O All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators ® P| ® O & Oo The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: Revenue and expenses are listed in the utility budget, though some areas of the budget are out of balance because fuel reporting is completed by hand and not entered into the QuickBooks data site. Monthly financial reports are completed and presented at every council meeting, and the preparer is present during these meetings to answer any questions asked by the council. The utility is current in paying the bills. The utility has fuel on hand and, when necessary, gets fuel deliveries monthly. The utility is receiving revenue from user fees and other sources to cover the operating costs. The utility receives revenue sufficient to cover repair and replacement costs. The YTD Revenues are equal to or greater than those budgeted after adjusting fuel expenses which were not included in the QuickBooks records. The YTD expenses are above the budgeted amounts. A written managerial report is presented to the council every month, with the manager being in attendance to answer questions. According to the administrator the council is active in passing amendments and adopting them when needed. Copies of meeting minutes are available in the Fairbanks office. April — May — June 2010 4" Quarter SFY10 - RUBA Report —— ae en an eee ae OE Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. [] _ The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators 1 A chart of accounts is used that identifies categories in a reasonable, usable manner. &) (J Monthly bank reconciliation’s have been completed for all utility accounts. KX The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. KHIR We eS q Accounting System Comments: The utility has adopted a collection policy and follows it. The bookkeeper uses an accounts receivable system that tracks what customers owe to the city. The bookkeeper stated that past due customers usually pay after the first few warnings and that drastic measures aren't needed. The accounts payable system is in place though it tracks a limited amount of bills. The payroll system is calculated correctly using the QuickBooks program tracks revenue from the sale of washeteria tokens and other sales are entered in cash receipt books. The city has a chart of accounts in its QuickBooks program that is easy to understand. Monthly bank reconciliations are completed by the city bookkeeper. The city should adopt a purchasing policy and follow the steps outlined in it. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. Ol & The utility is current on making tax deposits. C)) Q& Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city has a balance due for a late filing of the first quarter 2010 taxes with IRS. The Alaska Department of Labor has not yet responded to RUBA staff's request for information. -~51- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators X O_ The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators QR The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. QR C1 The utility provides training opportunities to staff as needed and available. &% OW O wo Personnel System Comments: Fairbanks RUBA staff confirmed that the city has a notice of current workers compensation insurance coverage posted in the office; they have it supplied through AMLJIA and it is valid through July 1, 2010. The utility has a personnel policy in place and a copy of the policy is located in the Fairbanks office. The utility has written job descriptions for the different employment positions. The city conducts personnel evaluations that are based on the written job descriptions. The city has an adequate hiring process. Personnel folders for employees only hold payroll information. The utility provides a probationary period for newly hired employees that includes evaluations and training opportunities. Organizational Management Essential Indicators Yes No R C1 The entity that owns the utility is known and the entity that will operate the utility is set. & C1 The policy making body is active in policy making of the utility. X The policy making body enforces utility policy. Xl 1 The utility has an adequately trained manager. QR The utility has an adequately trained bookkeeper. & OC The utility has an adequately trained operator(s). & (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators 1 The utility has adopted an organizational chart that reflects the current structure. RX (1 The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city's ordinances identify the city of Hughes as the owner and operator of the utility. The city council meets regularly and receives reports on the utility operations. Fairbanks RUBA staff has copies of council meeting minutes on file. The city council enforces the utility policies when necessary. The utility manager is trained and the council approves the additional training if funds are available. The bookkeeper and operators are adequately trained. The utility has the necessary ordinances to give it the authority to operate. The utility does not have an organizational chart. The policy making body meets -~52- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee eer” monthly and is involved in the utility management. The city complies with all sections of the open meetings act for all meetings. Operation of Utility Essential Indicators The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Yes No X O x X xX B® QO Y® Od xX QO eX Oo O Wf O ® 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility operators are trained and actively work towards getting the required certifications. The utility has a preventative maintenance plan. The utility does not have a safety manual or hold safety meetings. The utility has not had any problems due to management issues and operates the service at the proposed level of service. The operator provides regular verbal reports to the manager, letting the manager know what is going on at the time and what may be coming up. A copy of the most recent Consumer Confidence Report is available in the Fairbanks office. The utility is not on the latest Significant Non-Compliance list (May 2010). The utility does not have an inventory or critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to assist as needed and will work towards full Essential and Sustainable indicator compliance. -53- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee ee eet Hydaburg Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Regional Office 2007 Population: 353 Region: Southeast Local Governments: 1* Class City ed The City operates a level | water distribution and A ae oe wastewater collection system and a level 2 water treatment system. The Hydaburg River provides city water, which is treated and piped throughout the City. Piped gravity sewage is treated at a secondary treatment plant with an 800' outfall to Sukkwaw Strait. Over 95% of all homes are plumbed. Funds have been requested to construct a new dam to increase the water supply. The City is exploring options to improve waste disposal. Alaska Power and Telephone Co., based in Skagway, owns and operates diesel power systems in Hydaburg and Craig, which provide electricity to many Island communities. RUBA Activity This Reporting Period Two utility employees successfully completed a 32-hour Clerk Management for Rural Utilities class held in Klawock, April 19-23, 2010. The course was co-sponsored by the City of Klawock and the Division of Community and Regional Affairs’ RUBA program. The class is designed to build skills, knowledge, and capacity associated with the safe and efficient operation of water and wastewater utilities in rural Alaska. The community has made significant strides towards addressing deficient essential indicators. The City has completed the first round of water service disconnections for water, wastewater and garbage customers who are seriously delinquent. The extra effort made in enforcing the utility collection policy resulted in the utility collection rate for 4th quarter 2010 exceeding 100%! April — May — June 2010 y se Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No C1 W& Aillrevenue and expenses for the utility are listed in the utility budget. EK] The utility has adopted a balanced realistic budget. & O Monthly financial reports are prepared and submitted to the policy making body. & OC The utility is current in paying all water/wastewater electric bills. & (C1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. {I YTD revenues are at a level equal to or above those budgeted. {YTD expenditures are at a level equal to or below those budgeted. & CO A monthly manager’s report is prepared. KK] Budget amendments are completed and adopted as necessary. Finances Comments: The city has not yet adopted an FY11 budget. Until the budget is finalized and adopted by the council, the city does not meet any essential or sustainable indicators involving the budget. The administrator has previously made only verbal financial reports to the council on a monthly basis. There were internal errors with the QuickBooks program which caused inaccurate information to appear on the financial reports. The city hired an independent contractor to correct the problems with the QuickBooks program. After months of working on the accounting system, the contractor reports that there are still a few problems but the accounting system is now generally accurate and useful. The city has started using three separate profit and loss statements to communicate financial information to the council on the enterprise funds, general fund, and capital projects. The administrator understands that as a condition for passing the monthly financial report essential indicator, the utility budget information must be entered into the accounting system. This will make it possible to provide budget versus actual financial reports to the council on a monthly basis. Electricity is provided through Alaska Power and Telephone Company. A visual inspection of the most recent electricity billings verifies that the city has paid all electricity accounts for the water and wastewater utilities through November 2009. The city has two 275 gallon fuel tanks for heating fuel, located at city hall and the water treatment plant. The city receives fuel deliveries from Petro Marine in Craig on an as needed basis. The city usually maintains a one to three month fuel supply however theft of fuel from the city tanks has become an increasing problem. There are locking caps on the tanks however, on occasion, they have found the locks cut. The administrator recently replaced the locks with a higher security type which he hopes will solve the fuel theft problem. The city has adequate funds available and purchases fuel as needed. The governing body is fully aware that user fees do not produce sufficient income to cover operating expenses or repair and replacement (R and R) costs. It has been a general practice for the city to use whatever sources of money are available to subsidize utility's operating expenses. The city has had to resort to deferring payment of other city obligations to ensure the continued operations of the water treatment plant. The utility rates have not been raised in several years. The administrator and mayor have expressed their desire to start enforcing the city's collections policy and to address the utility rates. The city administrator, who also serves as the utility manager gives both verbal and written status reports to the council at monthly meetings. Written reports are usually timely and comprehensive. The administrator -56- April — May — June 2010 4" Quarter SFY10 - RUBA Report recently completed a 44-page report identifying financial and maintenance concerns with the water, wastewater, and solid waste utilities. Accounting Systems Essential Indicators Yes No I The utility has adopted a collection policy and actively follows it. C1 The utility bills customers on a regular basis. (1 An accounts receivable system is in place which track customers and reports past due O accounts and amounts. C1 An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records O A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. XRXK WHO Sustainable Indicators & OC A chart of accounts is used that identifies categories in a reasonable, usable manner. & C1 Monthly bank reconciliation’s have been completed for all utility accounts. () W& The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The city has a collection policy in Title 13 of the Hydaburg Municipal Code. The collection policy is no more than a single provision to discontinue service to any customer who is more than 60 days past due. The policy does not address topics such as billing dates, delinquency notices, service charges, and charges to reconnect services. The city has been inconsistent with sending out monthly bills and there has been little enforcement on past due accounts. The collection rate calculated from July 1, 2009 through December 7, 2009 was 24.5%. Over the last few months, the utility has become diligent about billing its customers on a regular basis and has committed to enforcing collections and discontinuing service to past due customers. This increased effort will hopefully produce a stable source of income for the utility. The city is currently using QuickBooks Pro for their accounts receivable, accounts payable, and payroll. The account receivables system documents customer payments and reports past due accounts with the corresponding monetary amounts. The aging report includes all customers and shows total amounts due as well as how long the amounts have been past due. The administrator and accounting contractor were in the initial stages of developing a cash receipt log to record incoming cash payments and checks not accompanied with an invoice. The city also recently started using two separate receipt books to provide customers with proof of payment, one for utility payments and one for other incoming funds. The accounting contractor is providing training to city finance personnel and is in the process of developing and implementing other internal financial controls. The city uses a purchase order system, which requires review and signature by the administrator. Because the city does not have a FY10 budget, the administrator attempts to prevent overspending by reviewing the cash balance report before approving expenditures. The city is completely caught up on delinquent annual financial audits and is currently working on the city's 2009 annual financial audit. April — May — June 2010 4" Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Hydaburg uses QuickBooks Pro to calculate, track, and report payroll liabilities and makes electronic payments using the Electronic Federal Tax Payment System (EFTPS). RUBA staff visually inspected the community's last four employer's quarterly federal tax returns and verified electronic debits. On June 25, 2010, the city administrator authorized RUBA staff to obtain federal tax information from the Internal Revenue Service (IRS) and employment security information from the Alaska Department of Labor and Workforce Development. Compliance checks with the Internal Revenue Service (IRS) and State Department of Labor showed that the city was in compliance with all State and Federal tax reporting and deposit requirements. Personnel System Essential Indicators Yes No & O_ The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. (The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Xl oO &% kX Ww Oo Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska National Insurance Company. The policy is effective from 7/1/10 through 06/30/11. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Notices of the workers compensation coverage are posted in accordance with state statute in all public buildings and in areas easily accessible to employees. The city council recently addressed several issues in its personnel policy. An updated policy has been drafted and is scheduled to be adopted at the next council meeting. RUBA staff reviewed personnel files on a sample basis and found that the files were well-organized and contain all the necessary employee documents. The administrator reported that employee personnel files are considered strictly confidential. The city has plans to purchase new fire proof locking cabinets for document storage. The utility has a written hiring procedure with a six month probationary period for new hires. The job descriptions are up to date and expressly outline each employee's required duties. The city provides training opportunities when outside sources of training funds are available. -58- April — May — June 2010 4" Quarter SFY10 - RUBA Report Sees Organizational Management Essential Indicators Yes No (The entity that owns the utility is known and the entity that will operate the utility is set. (The policy making body is active in policy making of the utility. (The policy making body enforces utility policy. (The utility has an adequately trained manager. & The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). Cs The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators C1 & The utility has adopted an organizational chart that reflects the current structure. ® CO . The policy making body meets as required. 4] Os The utility complies with the open meeting act for all meetings. WOWNKNRH Organizational Management Comments: The City of Hydaburg owns and operates the water and wastewater utilities. The city council is the formal governing body. Meeting minutes verify that the city council is actively engaged in making decisions on behalf of the utilities. The council attempts to meet on the first and third Tuesday of each month; however they have recently had problems obtaining a quorum for scheduled meetings. The council holds special meetings and additional work sessions if necessary. The city complies with open meeting requirements and posts meetings notices in accordance with local code and state statutes. The manager for the sanitation utilities is the city administrator. He is adequately trained in the administration and management of the utility. Due to staffing limitations, the bookkeeping responsibilities are not well defined. The duties are generally split between the city administrator and city clerk. The administrator has attended several RUBA sponsored QuickBooks trainings and the accounting contractor is providing ongoing training to both the administrator and city clerk. When the city is financially able to do so, the city plans to hire a fulltime bookkeeper. The utility operator is not certified but has received some hands-on training from the former operator and the remote maintenance worker is providing additional training working towards the operator receiving his provisional certification. The city currently operates a level 2 drinking water system. The council has adopted all the ordinances necessary to own and operate the utility services. Title 13 of the Hydaburg Municipal Code establishes the policies and procedures for the operation and maintenance of the community water supply system. The city has an organizational chart contained it the personnel policy. The chart depicts the direct relationship between supervisor and subordinates however it does not accurately reflect the current organizational structure of the city. -59- April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No Oo The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Q 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. & The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. KX] The utility is operating at the level of service that was proposed. & The operator provides status reports to the manager on a routine basis. CJ The utility has completed and distributed its Community Confidence Report (CCR). Oo EX The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. x4} The utility maintains a critical spare parts list. Operation of Utility Comments: The City operates a Level 2 water treatment system, a Level 1 water distribution system, and a Level 1 wastewater collection system. The water operator has completed the Introduction to Small Water Systems, Provisional Level training but failed to pass the State certification exam. The Hydaburg public water system is listed on the most recent Significant Non-Compliance List for turbidity and monitoring violations which has resulted in a boil water notice for the community. The utility failed to provide quarterly TTHM/HAAS samples for Ist quarter FY10. The utility has not completed and distributed its Consumer Confidence Report (CCR) as required by the Safe Drinking Water Act. The utility has a critical spare parts list but does not maintain an inventory control list. The administrator reports that the utility maintains a sufficient level of supplies and tools but due to the community's island location and dependence on air and ferry service, the current level of critical spare parts may be inadequate to prevent a service outage. The utility has experienced recent outages due to running out of treatment chemicals (polymer and chlorine). RUBA Activities For The Coming Quarter RUBA staff will provide ongoing technical support to help the utility in the area of financial management. RUBA staff will also continue to work with the utility on the accomplishment of identified goals along with providing ongoing technical support. The identified goals are: 1. Complete the FY11 budget and FY09 audit 2. Identify all sources of revenues for the utility. 3. Complete an accurate estimate of expenditures for the coming year. 4. Review and update the existing collections policy A follow-up RUBA assessment is scheduled for August 2, 2010 to measure progress. - 60 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Larsen Bay Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 83 Region: Kodiak Island Local Government: 2" Class City located within the Kodiak Island Borough, Tribal Council wo Ne, poe Om : Water is supplied from two groundwater sources--gravity feed from the hydro plant, and a well as backup, and stored in a 200,000 gallon tank. A water supply line is connected to the penstock of the hydroelectric plant and used a majority of the time to reduce utility expenses to both the service plant and the customer. All 40 homes are connected to the piped water system. A community septic tank with an outfall line serves these homes, and the majority of them are fully plumbed. Weekly refuse collection services are provided. The community incinerator is currently unusable and all refuse is deposited at the landfill site. The city has been funded for a water treatment plant project from Village Safe Water (VSW). RUBA Activity This Reporting Period On June 29, 2010 RUBA staff traveled to Larsen Bay to assist the water/wastewater billing clerk with required monthly and quarterly reporting. RUBA staff met with the mayor and billing clerk and helped the clerk complete the city's quarterly grant reports, and the IRS 941 and Department of Labor tax reports for the city and the city's electric utility company. RUBA staff also assisted the billing clerk in completing the May and June Power Cost Equalization (PCE) reports which will result in a reimbursement of $1,993 for May and $2,137 for June. RUBA staff also provided training on payroll assistance, payroll liabilities, review and correction memorized transactions within QuickBooks, how to itemize the phone bill payment per department, clarification of child support deductions and payment questions. RUBA staff received a tour of the new water treatment plant by ANTHC staff before departing the community. Earlier in the quarter, RUBA staff received a call from the Larsen Bay City Clerk requesting assistance in reviewing their draft FY11 budget. RUBA discovered that although the majority of the budget was complete, there were a few lines items in both the income and expense pages that had been over looked. RUBA staff discussed those items with the clerk in detail. The clerk made the proposed changes and then forwarded the budget to RUBA for a final review prior to submitting it to the city council. -61- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No {& C1 Allrevenue and expenses for the utility are listed in the utility budget. 4 The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Xl [The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators OO Bl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & 1 yYtTDrevenues are at a level equal to or above those budgeted. i} YTD expenditures are at a level equal to or below those budgeted. XJ C1 A monthly manager’s report is prepared. (1 & Budget amendments are completed and adopted as necessary. Finances Comments: The City of Larsen Bay drafted and adopted the FY11 budget with RUBA assistance. RUBA staff trained the city clerk and billing clerk in preparing the proper monthly finance reports for the city council. The interfaculty bills are being paid on a quarterly basis to allow accurate tracking of all expenses. The City of Larsen Bay received a large fuel order in November 2009 and has an adequate supply until late summer when another order will arrive. Although water and wastewater revenues are not sufficient to cover operating expenses, the City subsidizes its water and wastewater utility service through the electric sales. This subsidy is listed as a line item on the budget. Manager/operator reports are given verbally when requested from the council. The operator also has daily contact with the mayor and/or city clerk. Accounting Systems Essential Indicators Yes No & OC Theutility has adopted a collection policy and actively follows it. & (O The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. ° X An accounts payable system is in place. & OC Thepayroll system correctly calculates payroll and keeps records & UO Acash receipt system is in place that records incoming money and what it was for. & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. & OC Theutility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. April — May — June 2010 4" Quarter SFY10 - RUBA Report eer Accounting Comments: The city council has an adopted collection policy and has been actively and consistently enforcing it. The city utilizes QuickBooks for accounts receivable, accounts payable and payroll. The QuickBooks system is set up properly to reliably keep the city's finances in order. Bills are issued on a regular basis by the fifth of every month in accordance with the city's billing and collection policy. Monthly bank reconciliations are completed for each bank account then printed and filed for historical data. The city's purchasing system requires prior approval from the mayor or city clerk depending on the purchase amount. Once approval has been given.a purchase order is.issued. Tax Problems Essential Indicators Yes No RX The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. & C$ The utility is current on making tax deposits. | If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city uses the QuickBooks accounting program to accurately track, calculate and report payroll tax liabilities. Liabilities are paid monthly and the quarterly reports are completed and mailed to the IRS on “time. The city has not received any non-compliance notices from the IRS or DOL. Both IRS and DOL have deemed the city compliant at this time. Personnel System Essential Indicators Yes No KIC) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XX The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Applicatio and Letter of Acceptance. : The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. (1 The utility provides training opportunities to staff as needed and available. O O oO &® Wek WH ® Personnel System Comments: The City of Larsen Bay has a posted workers compensation insurance policy with AMLJIA in effect from 7/1/09 to 7/1/10. On December 9, 2008 the city council adopted a personnel policy. The city's current hiring process is historical and is not written. Job notices are posted for 10 days and include the job title and description. Interested applicants apply at the city office. There is no probationary period for employees. Training opportunities are provided as funds allow or opportunities by other sponsors come available. other sponsors come available. -63- April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. (1 The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. (1s The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators HHXNXNXR X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Larsen Bay is known as the entity that owns and operates the utility, and is active in policy making for the utility. The city clerk, with city council backing, has been actively enforcing utility policy. The clerk has attended a QuickBooks training class sponsored by the RUBA program. The utility operator is trained and has passed the Provisional Level | test. The city clerk attended a 32-hour RUBA training course for elected officials held April 19-23, 2010 in Kodiak. Operation of Utility Essential Indicators Yes No & OF Theutility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. RXRXO Ww BWWOOOR a Operation of Utility Comments: The utility has a preventative maintenance plan for the existing system. The City of Larsen Bay participates in AML/JIA monthly safety meetings. The utility operator is trained and can run the system and has passed the Provisional Level | test. The utility operator reports to the mayor, vice-mayor or city clerk when there is a problem or when he can foresee one. The utility is not able to operate at the level of service that was proposed because it is unable to backwash the rapid sand filter. The Solo-valve was deemed a cross connection by the Alaska Department of Environmental Conservation (ADEC); however, the city is currently not on the SNC list. The utility operator and council attempt to keep needed critical spare parts on hand but they currently have no actual written list. -64- April — May — June 2010 4" Quarter SFY10- RUBA Report ——_ OO Eee ort RUBA Activities For The Coming Quarter The city council has a signed RUBA assistance agreement. RUBA staff will continue onsite visits quarterly to assist the community to meet all of the unmet management indicators. -65- April — May — June 2010 4" Quarter SFY10 - RUBA Report - 66- April — May — June 2010 4" Quarter SFY10 - RUBA Report Levelock Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2007 Population: 84 Region: Dillingham Local Government: Tribal Council we The Village of Levelock is a progressive community Nn, ot oP providing a variety of services to 36 households and approximately 84 residents. Those services include septic pumping, garbage haul, a public washeteria, electricity and fuel sales. All the homes and infrastructure are serviced by private wells and septic systems. The landfill is an unclassified dump and is operated by a solid waste manager. Garbage is collected three times a week. The solid waste management is part of the IGAP grant program. Sewage is pumped from the septic systems and dumped into a trench within a fenced area just the landfill. Lime is added to the trench. The costs of these services are subsidized by the Lake and Peninsula Borough Community Revenue Sharing funds to help prevent the septic systems from becoming a problem for the community. An active survey of the community, listing the age of each home, age of the septic system, and if there is a known problem, is maintained at the village office and is said to be current. There are currently 11 homes in need of new septic tanks and repairs to leach fields. Water in this area has a high mineral content. In recent years the community has had new infrastructure and housing projects. New wells that were drilled to a depth lower than in past projects. The new water tables appear to be producing a higher than normal mineral content. The Village Council has an active and current Alaska Energy Authority Revolving Fuel Loan. RUBA Activity This Reporting Period On April 19, 2010 RUBA staff visited the community to conduct a RUBA management assessment. The assessment was at the request of the Village Council in preparations for requesting construction funding for replacement of failing septic tanks and leach fields and well water softeners on individual wells. RUBA staff met with the village staff and received documentation required for the assessment. The village council office is well staffed and organized. Recently a new administrator was hired and is creating the budget in QuickBooks. She has also completed eight months of bank reconciliations. The IGAP program funds are used to manage the community's solid waste program. RUBA staff met with the Bristol Bay Area Health Corporation staff regarding projects in the region and learned that Levelock was reported to have funding for planning for new wells, septic systems leech fields and a sewage lagoon. -67- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. & (1 The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. & (1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Xi The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators EK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & 1 YTDrevenues are at a level equal to or above those budgeted. & Xl YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. & (1 Budget amendments are completed and adopted as necessary. Finances Comments: The council adopts a solid waste management budget yearly. Administrative staff provides the council with a detailed monthly financial report using QuickBooks accounting software with year-to-date amounts compared to the budget. Budget amendments are completed and submitted as necessary. Funding for the utility is from the Indian Environmental General Assistance Program (IGAP). The utility does not charge user fees and is subsidized by community revenue sharing money received from the Lake and Peninsula Borough. The village council administrator is developing an entity-wide budget to include all funding sources and programs. The council has a revolving Alaska Energy Authority loan that is utilized for fuel. Fuel is traditionally received in the spring and fuel tanks are topped off with the last barge of the season. Residents purchase gasoline and heating fuel from the village council fuel facility. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. & CO The utility bills customers on a regular basis. Xi An accounts receivable system is in place which track customers and reports past due accounts and amounts. & O Anaccounts payable system is in place. | The payroll system correctly calculates payroll and keeps records Xx A cash receipt system is in place that records incoming money and what it was for. QR The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & CO Achart of accounts is used that identifies categories in a reasonable, usable manner. & CO Monthly bank reconciliation’s have been completed for all utility accounts. & OC The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 68 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting Comments: Some of the essential indicators are not marked because they do not apply to the management of the village's accounting system. The residents are not billed for the garbage haul or the septic pumping, as it was the vote of the council to subsidize the services for the residents with general funds. The decision was made to haul garbage in order to keep the community clean and assist in preventing residents from self hauling, and burning or placing things in the dump that should not be put there. The fire hazard and uncontrolled burn threat to the community during summer months is high. The thought is to stay proactive to provide the level of service deemed necessary to keep the community safe and healthy. The septic hauling was subsidized to assist with maintaining the septic and leach fields and to better be able to monitor those systems that are failing before it becomes a problem for the community. The council staff does bill for fuel services and electricity. The village council has adopted and actively adheres to its Policies and Procedures Manual which covers Administration, Council Members, Employees, Finance, Procurement and Property and a Council Code of Ethics. QuickBooks Premium is utilized for all accounting practices. Bank reconciliations are up to date and balanced. Pay as you go electric metering is being looked at for the electric utility. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. ® The utility is current on making tax deposits. & C1 Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Staff maintains an effective and accurate payroll processing system based on QuickBooks accounting software. On May 15, 2010 Levelock was deemed non-compliant by the IRS for not filing tax retums for the two periods. On June 22, 2010 the State of Alaska Department of Labor Employment Security Division has granted tax clearance through the time period ending March 31, 2010. -~69- April — May - June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No & OO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. (1 The utility has adequate written job descriptions for all positions. The utility has adopted and follows-a written personnel evaluation process that ties the job description to the evaluation. : The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. (1s The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & CO The utility provides training opportunities to staff as needed and available. kh Wk wm [ Personnel System Comments: Workers compensation insurance is purchased through Alaska National Insurance Company with a coverage period through October 1, 2010. The employer's notice was posted as required. On July 8, 2010 the Division of Workers Compensation verified coverage was active. RUBA viewed the personnel and office procedures manual adopted by the council with assistance from the EPA Indian Government Assistance Program. The manual was prepared and presented to the council in a training workshop of the Acturus Group LLC. The procurement section of the manual was prepared and presented in a training workshop by SCS LLC. The manual is well written and includes a safety policy section, allows for a probationary period for new hires and allows and supports training opportunities for all employees and council members. Personnel files contained an I-9, job application and letter of acceptance or the section of the council minutes offering the job. The policy is adequate and appropriate for the level of staffing in the council office. Organizational Management Essential Indicators Yes No C1 The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. (The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. C1 The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & (The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. & The utility complies with the open meeting act for all meetings. OWRXRROW Organizational Management Comments: The decision was made to subsidize garbage haul by a council motion and vote. The village council staff provided the organizational chart. The council has adopted and adheres to a work plan. The utility manager is also the trained operator. RUBA staff spent time with the manager and discussed his -70- April — May — June 2010 4" Quarter SFY10 - RUBA Report participation in training as well his membership in the Tribal Solid Waste Advisory Network group that provides on going college courses. The utility bookkeeper has received training and actively stays current with updates to computer software through the Bristol Bay Native Association and other federal programs. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. & 2) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. RWHRRHK ww RWOOOk O Operation of Utility Comments: The village provides septic pumping services and maintains the sewage trench. The village council is not required to have a certified water operator or wastewater operator or provide the community with a consumer confidence report. Levelock is not on the Significant Non-Compliance (SNC) list. The solid waste operator does maintain solid waste management certifications, is an active member of the Tribal Solid Waste Advisory Network, and stays current on college courses offered in solid waste management. The designated operator for the sewage pumping service maintains direct contact with the administrator before and after service is rendered. Safety meetings between the solid waste manager and the septic pumping contractor occur on a regular basis with reports to the council. The utility has an inventory list and maintains an active file of critical spare parts for the septic pumper. RUBA Activities For The Coming Quarter RUBA staff will remain available to provide assistance per the request of the council. -71- April — May — June 2010 4" Quarter SFY10 - RUBA Report -~72- April — May — June 2010 4" Quarter SFY10 - RUBA Report Nanwalek Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 222 Region: Kenai Peninsula Local Government: 2” Tribal Council ry Water is derived from a surface stream and is treated; a NY ease, oe oP new surface water source is under development. Nanwalek has a piped water and sewer system which serves all homes in the village; most are completely plumbed. The village needs a larger water storage tank, new water and sewer mains, new fire hydrants, and a landfill expansion. RUBA Activity This Reporting Period Anchorage RUBA staff traveled to Nanwalek on June 15, 2010, to conduct a RUBA management assessment of the community's management capacity, which is a funding requirement for sanitation projects. RUBA staff met with the tribal administrator, bookkeeper, and the new replacement bookkeeper, who was the former administrator, in the Nanwalek Community Center. A representative from the Alaska Native Tribal Health Consortium (ANTHC) was also available to provide assistance and answer questions regarding the sanitation project. The staff provided general information on the community, and answered questions pertaining to the Utility Finances, Accounting Systems, Tax Problems, Personnel System, Organizational Management, and Operation of Utility. The bookkeeper provided answers to the majority of questions from the assessment with some assistance from the tribal administrator. The assessment revealed management deficiencies in the areas of budgeting and finance. RUBA staff reviewed ordinances and a majority of other required documents pertaining to RUBA management capacity indicators. A tax authorization request form was left for the required signature because no one was available to sign the form during the onsite visit. The findings from the RUBA assessment will be presented in a written report that includes recommendations, and an offer of assistance will be provided for any capacity indicators that were not met during the visit. -73- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No (1 @& Allrevenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. CJ & yTDrevenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. CJ W® A monthly manager’s report is prepared. EJ Budget amendments are completed and adopted as necessary. Finances Comments: RUBA staff has not received a copy of the adopted FY 10 budget from the Nanwalek IRA Tribal Council for the water/wastewater budget. Without documentation, RUBA staff is unable to verify if the utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. The Housing Authority manages the fuel sales for the community. The bulk fuel facilities consist of a 24,000 gallon diesel tank and a 12,000 gallon gas tank, which are kept with an adequate supply of fuel year round. The Nanwalek IRA Tribal Council receives Indian Health Service (IHS) funds passed through Chugachmiut. The tribe has used those funds to subsidize the water and wastewater enterprise. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. Kl An accounts receivable system is in place which track customers and reports past due accounts and amounis. An accounts payable system is in place. C1 The payroll system correctly calculates payroll and keeps records [11 Acash receipt system is in place that records incoming money and what it was for. O_ The Utility has a cash disbursement system that records how money was spent. uN Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. & CO Monthly bank reconciliation’s have been completed for all utility accounts. & OC The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -~74- April — May — June 2010 4" Quarter SFY10 - RUBA Report ——————— OO eee eee PO Accounting Comments: The tribe has adopted a collection policy but does not actively follow it. Although not all of the homes have curb stops that allow disconnection, some of the homes do, and are not being disconnected for non-payment. In the past, customers were being billed through the ANTHC billing program. Due to lack of payments, ANTHC discontinued the service and customers have not been billed since that time. A few customers continued to pay monthly and those payments were tracked through the tribe's QuickBooks accounting system. This system is used for both accounts receivable and accounts payable. When supplies are needed for.the utility, the operator notifies. the.bookkeeper then submits a check request to the administrator, who either approves or denies the request. Any purchase exceeding $5,000 must be pre-approved by the council. Tax Problems Essential Indicators Yes No & C1 Theutility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. wwO OO Tax Problems Comments: The tribe has signed a tax release form; DOL responded that the tribe is currently compliant with all reports and deposits. The IRS reported the tribe is not current with filings. All payroll is calculated and tracked; payroll tax liabilities reports are completed through QuickBooks. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & OC The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. CO The utility provides training opportunities to staff as needed and available. oO oO &% Wk WH Kl Personnel System Comments: The Nanwalek IRA Tribal Council has a posted workers compensation insurance policy in effect from March 21, 2010 to March 21, 2010 with Liberty Northwest Insurance Corporation. The tribe reports that it follows their written personnel policy closely. The tribe is updating and revising the written job descriptions for all positions. The probation period for a new hire is 90 days. Training opportunities to staff are provided as funds allow or as opportunities by other sponsors come available. -75- April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No &X The entity that owns the utility is known and the entity that will operate the utility is set. C1 W& The policy making body is active in policy making of the utility. XX The policy making body enforces utility policy. X The utility has an adequately trained manager. ® The utility has an adequately trained bookkeeper. & OC The utility has an adequately trained operator(s)....... Xl The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XK The utility has adopted an organizational chart that reflects the current structure. x} The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. Organizational Management Comments: The council meets monthly and is active in policymaking when needed, although t is not always active in enforcing the policy. The bookkeeper was the prior utility operator and although he is not currently certified, he helps the current operator when necessary. This experience helps him in being knowledgeable and well versed in all aspects of the utility, from billing to the obstacles the utility faces. The tribe does not have a certificated utility operator, although the current operator is trained to competently run the water system. The system is rated by the State of Alaska as a level 2 plant. Due to the hour requirements that a level 2 operator must submit to obtain certification, Nanwalek cannot afford to pay the operator to meet the requirements. The utility has adopted an ordinance that authorizes it to operate, however tribal staff members were not aware that the water and sewer ordinance existed. The utility has also received their Provisional Certificate from the Regulatory Commission of Alaska. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. & OO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators O 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. | IOBeX WO HWewwWOO Of 10 Operation of Utility Comments: The Nanwalek IRA Tribal Council has applied for and has received the Provisional Certification from the Regulatory Commission of Alaska (RCA). The tribe has a preventative maintenance plan for the existing system. The utility operator verbally provides status reports to the tribal administrator when -76- April — May — June 2010 4" Quarter SFY10 - RUBA Report eect there is a problem, when she foresees a problem, or when the system is running well. The last CCR shown to RUBA staff was a CCR completed for 2007 with the help of ANTHC. The utility does not meet all required drinking water regulations. The tribe is currently on the SNC list for Stage One violations and monitoring violations for SWTR. The utility operator and council try to keep needed critical spare parts on hand but supplies and parts are not recorded on a written list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the Nanwalek IRA Council as requested to assist them in meeting all of the unmet management indicators. -77- April — May — June 2010 4" Quarter SFY10 - RUBA Report OO Report Nikolai Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 88 Region: Interior Local Government: 2™ Class City ry All 47 households and facilities use individual wells; of Mane these, only two units lack plumbing. Thirty-three homes, including ten new HUD housing units north of the airport, are connected to the piped sewage system. The remaining 15 homes use septic tanks. Funds have been requested for a master plan to rehabilitate the washeteria, develop two new wells, upgrade the landfill and expand the piped sewer system. RUBA Activity This Reporting Period Nikolai has signed a RUBA assistance agreement and continues to receive help with accounting processes from both RUBA and the RUBA QuickBooks contractor. An on-site visit by both is scheduled for early July. Anchorage RUBA staff was contacted by the Power Cost Equalization (PCE) program staff to assist with the City of Nikolai's PCE reporting. A current invoice copy and proof of payment for the community center building was needed to enable verification of community facilities eligibility and to receive retroactive PCE credit. RUBA assisted Nikolai staff in creating a journal entry which served as proof of payment for the community center and which met the PCE requirement. RUBA assistance and documentation provided enabled the city to receive approximately $3500 in retroactive credit. -79- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & (CO Allrevenue and expenses for the utility are listed in the utility budget. & CF The utility has adopted a balanced realistic budget. & (Monthly financial reports are prepared and submitted to the policy making body. ® The utility is current in paying all water/wastewater electric bills. & (C) The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. (1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. es OW WOOO Finances Comments: The City of Nikolai drafted and adopted the FY10 budget with RUBA assistance. The budget includes expenditures for the wastewater department. The city's budget has been entered into QuickBooks and the city clerk prepares a monthly financial report that compares actual income and expenditures to the budget The City of Nikolai owns and operates the electric utility; they are current with the electric bill for the septic system. The City of Nikolai receives fuel from Brooks Fuel, Inc. on an as needed basis. All fuel orders are paid in full upon arrival. The City of Nikolai does not charge residents for wastewater service because only a small portion of the community is on the system. The city has instead chosen to subsidize the wastewater utility through the fuel and electric sales revenue. Although the council does not receive a monthly financial report that compares actual income and expenditures to the budgeted amounts, the office has separate reports that, when compared, show the utility's year-to- date figures are at a level equal to those budgeted. Manager/operator reports are given verbally when requested by the council. Because of the small labor pool in Nikolai, many city council members either work for the city or donate time to the city to complete needed jobs or tasks. -~80- April — May — June 2010 4 Quarter SFY10 - RUBA Report Spray ne a Csarrter SFYIO - RUBA Report Accounting Systems Essential Indicators Yes No & CO The utility has adopted a collection policy and actively follows it. & CO The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & CO The payroll system correctly calculates payroll and keeps records. - & OF Acash receipt system is in place that records incoming money and what it was for. Xi The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators ir OA chart of accounts is used that identifies categories in a reasonable, usable manner. QR 5 Monthly bank reconciliation’s have been completed for all utility accounts. Oo The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The city does not have an adopted collection policy for the sewer utility because they do not charge the customers. They do, however, have an adopted collection policy that they actively and consistently enforce for the electric and fuel utilities; these utilities subsidize the sewer utility. The city utilizes QuickBooks for accounts receivable, accounts payable and payroll. The QuickBooks system is set up properly and has been a tool to reliably keep the city's finances in order. Bills are issued on a regular basis by the Sth of every month in accordance with the city's billing and collection policy. Monthly bank reconciliations are completed for each bank account then printed and filed. The city purchasing system requires prior approval from the mayor or city clerk depending on the purchase amount. Once approval has been given, a purchase order is issued; however, requests are not compared to the budgeted amounts. Tax Problems Essential Indicators Yes No & (C1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. KX O21 The utility is current on making tax deposits. & OC Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city uses the QuickBooks accounting program to accurately track, calculate and report payroll tax liabilities. Liabilities are paid monthly and the quarterly reports are completed and mailed to the IRS on time. The IRS and DOL deem the City of Nikolai compliant at this time. -81- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators QR The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a-written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. &% kk ww Oo x ] Personnel System Comments: The City of Nikolai has a posted workers’ compensation insurance policy in effect from July 1, 2009 to July 1, 2010 with Alaska Municipal League Joint Insurance Association (AMLJIA). The city's current hiring process is historical and is not written. Job notices are posted for ten days with the job title and description. Interested applicants apply at the city office. There is currently no probationary period for employees. Personnel folders contain: I-9, Job Application and Letter of Acceptance. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. Organizational Management Essential Indicators Yes No C$ The entity that owns the utility is known and the entity that will operate the utility is set. (1 The policy making body is active in policy making of the utility. (1 The policy making body enforces utility policy. 1 The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. OO The utility has an adequately trained operator(s). (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainabie Indicators & The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & OC Theutility complies with the open meeting act for all meetings. HHKRRe Organizational Management Comments: The City of Nikolai is known as the entity that owns and operates the utility, and is active in policy making for the utility. The city council has been actively enforcing the fuel and electric utility policy. The city clerk has attended a QuickBooks training class sponsored by the RUBA program. Utility operators have completed trainings that have adequately prepared them to operate the utilities. The City of Nikolai has adopted the necessary ordinance to give it the authority to operate. The Nikolai City Council meets as required and complies with the Open Meeting Act for all meetings. ~82- April — May — June 2010 4" Quarter SFY10 - RUBA Report ae eee Lert SEF YI - RUBA Report Operation of Utility Essential Indicators Yes ® oO No The utility operator(s) are actively working towards necessary certification. & O The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X OORXRXR WO XwWOOOO es 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. The utility has a safety manual and holds safety meetings. L Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility operator is not certified and is actively working toward the necessary certification. A preventative maintenance plan for the existing system is on file in the city office. The City of Nikolai does not participate in AMLJIA monthly safety meetings or conduct other means of safety meetings. The utility operator reports to the mayor, vice-mayor or city clerk when there is a problem or when he can foresee one. The utility operator and council attempt to keep needed critical spare parts on hand but they currently have no written critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the City of Nikolai as needed to ensure the council has all the necessary assistance to meet the sustainable management indicators. -83- April — May — June 2010 4" Quarter SFY10 - RUBA Report ~84- April — May — June 2010 4" Quarter SFY10 - RUBA Report een STI - RUBA Report Platinum Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2007 Population: 35 Region: Dillingham Local Governments: Tribal Council od Nine households and the public school are connected to a piped Money water system and operate private septic sewage systems. The remaining households, roughly eight, access water from public watering points and dispose of honeybucket waste in private seepage pits. The public water system distributes untreated water. A washeteria constructed in recent years is not in use but may be completed as early as summer 2008. A state Village Safe Water Water/Sewer and Solid Waste Feasibility Study was funded in FY 2003 to assess water, sewer and solid waste needs including a water storage tank, new water treatment plant, connections and plumbing, sludge disposal site, and landfill. The water/sewer system renovation project, with assistance from Village Safe Water, is in design and construction will start as early as summer 2009. The City operates the electric utility and landfill. Community fuel storage capacity is as follows: Arviq village corporation. (67,100 gals.); City Power Plant (5,600); Lower Kuskokwim Schools (7,000). RUBA Activity This Reporting Period Dillingham RUBA staff traveled to Platinum on May 18 and 19 to conduct a RUBA management assessment. The assessment was unable to be completed because the administrator was just returning to her job after many months of being ill. Mail and other thing are extremely backed up. A great deal of time was spent looking for documents only to find they were incomplete and undone. RUBA staff assisted the administrator in completing a few of the tasks. It was agreed that we would continue to work together on the assessment over the internet. There was a recent power surge that damaged a great deal of equipment in the office including the administrator's computer. A backup QuickBooks was available on another older computer that survived the surge. Information was provided about the city office that needs to be forwarded to the supervisor and managers. The city is writing checks that are insufficient to the tribe and corporation for fuel and rent. The power plant, owned and ran by the city, is almost out of fuel and no one in the community will sell fuel to the city due to the city's lack of funds. The tribal administrator stated that the city is in jeopardy of having to shut down the power plant due to lack of fuel. The mayor was not available to RUBA staff during the visit. The trip to conduct the RUBA management assessment was to be in coordination with the Village Safe Water Project Engineer's site visit however the engineer was weathered out and unable to make it to Platinum. We spoke by phone and it was questioned as to the whether or not the Traditional Council would pass an assessment. RUBA staff declined making presumptions on the assessment until all information was complied. The reason for the requested assessment was that Platinum received funding for a community sanitation project. On February 21, 2006 the Alaska Department of Environmental Conservation (ADEC) awarded the Platinum Traditional Council a grant for the design and construction of water and sewer improvements. Funding remains in place to complete project design work; however the traditional council has been told that because of delays in meeting construction funding conditions, construction funds have been reallocated at this time. Platinum can re-apply for construction funds at a later date once the stipulations are achieved, which are to complete a Rural Utility Business Advisor assessment and adequately address any outstanding requirements relating to essential capacity. RUBA staff has -$5- April — May — June 2010 4" Quarter SFY10 - RUBA Report been unsuccessful in contacting the tribal council by email or phone to continue work on a recent assessment. Continued work and travel needs to occur to assist the tribal council to meet the essential indicators. Capacity Indicators Finances Yes No Ol WB Allrevenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. (1 W& Monthly financial reports are prepared and submitted to the policy making body. KK] The utility is current in paying all water/wastewater electric bills. & OC The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. [11 W& The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. SS Sustainable Indicators KK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. KK] YTD expenditures are at a level equal to or below those budgeted. QR A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: RUBA staff was provided the budget from last year and was told it does not change from year to year. It was unclear by what process or procedures the provided budget was adopted if in fact it was. RUBA staff awaits receipt of a monthly financial report to confirm bills are being recorded and paid timely. In prior fiscal quarters, tribal staff provided consistent financial and operational reports to the council. There have been staffing changes in the bookkeeping department. It is unknown if the position has been reposted or if the position is going to be filled. Staff reported fuel supplies are sufficient. The City of Platinum, a separate entity, operates the electric utility. In past quarters, staff used QuickBooks accounting software and generated some spreadsheet financial reports for bookkeeping. During this visit, RUBA staff discovered that updates had not been made since last year and bank statements were stacked up on a desk unopened for an undetermined amount of time. RUBA staff was unable to determine if regular meetings are being held. -86- April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No [1 & The utility has adopted a collection policy and actively follows it. C1 & The utility bills customers on a regular basis. { Anaccounts receivable system is in place which tracks customers and reports past due accounts and amounts. KK] An accounts payable system is in place. (0 & The payroll system correctly calculates payroll and keeps records C1 & A cash receipt system is in place that records incoming money and what it was for. KI] The utility has a cash disbursement system that records how money was spent. Sustainable Indicators 4] CO A chart of accounts is used that identifies categories in a reasonable, usable manner. [1] & Monthly bank reconciliation’s have been completed for all utility accounts. C) & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The village council serves as the utility board and, in prior quarters, enforced the water/wastewater ordinance including a collections policy. RUBA staff continues to request confirmation that customer billing, collections, and policy enforcement are underway and consistent. Utility staff use QuickBooks accounting software for bookkeeping including utility billing, accounts payable, and payroll processing. The utility utilizes a written procurement policy that requires approval prior to purchase. RUBA staff continues to recommend that the utility staff reconcile bank accounts monthly. Tax Problems Essential Indicators Yes No & (C0 The utility has a system to accurately calculate, track, and report payroll tax liabilities. Ol W The utility is current on filing tax reports. C1 & The utility is current on making tax deposits. & CF [Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility uses QuickBooks and manual accounting systems to process payroll. On May 26, 2010 the IRS Taxpayer Advocate Service reported that no recorded notice of federal tax lien was located but deemed the tribal council as non-compliant for not filing tax returns for the 4th quarter of 2009. On June 22, 2010, the Alaska Department of Labor Employment Security Division also deemed the Tribal Council non-compliant. -87- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & C0 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & CO The utility has adequate written job descriptions for all positions. RX The utility has adopted and follows a written personnel evaluation process that ties the job & description to the evaluation. The utility has an adequate written hiring process. KI The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. ® The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. H The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Division of Worker's Compensation verified that a policy with Alaska National Insurance Company is effective through June 30, 2010. Tribal staff utilizes a comprehensive personnel policy and are presently reviewing its content to ensure it meets current standards. The policy includes a written evaluation and hiring process. Organizational Management Essential Indicators Yes No & (CO The entity that owns the utility is known and the entity that will operate the utility is set. ® The policy making body is active in policy making of the utility. KX) The policy making body enforces utility policy. XX The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. x The utility has an adequately trained operator(s). R The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators x The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & OC The utility complies with the open meeting act for all meetings. Organizational Management Comments: The council actively sets utility policy through ordinance. RUBA continues to await confirmation from village council staff that the utility policies including collections are being enforced. The village council meets as required. -~ 88 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ee A eae Operation of Utility Essential Indicators Yes No & OF The utility operator(s) are actively working towards necessary certification. & OO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. ® xX OOORRO wo HXWOOR Operation of Utility Comments: The utility has a trained water operator who also serves as the tribal administrator. In prior quarters the operator was seeking out an alternate operator to ensure continuity but it is unclear if an alternate has been hired. Utility staff utilizes a preventative maintenance plan that includes a checklist of operational requirements, an inventory control list, and critical spare parts list. The operator maintains contact with the Remote Maintenance Worker based in the Yukon-Kuskokwim region. The utility is listed on an Alaska Department of Environmental Conservation Significant Non-Complier (SNC) report for violations of the Total Coliform Rule. The last violation was in March 2010 for missed monthly bacti samples. The utility is unable to meet surface water treatment requirements with the current configuration. To return to compliance by September 2010, continued monitoring and reporting of monthly total coliform bacteria sample is required, install Surface Water treatment and begin monitoring and reporting required Surface Water treatment data, and a GWUDIS system with no filtration or disinfection equipment must be corrected. A Village Safe Water project is in progress to address the issue. The utility reported it submitted the 2009 Consumer Confidence Report. RUBA recommends safety meetings be held regularly. RUBA Activities For The Coming Quarter RUBA will continue offering assistance as the village council continues preparing for sanitation system improvements. -~89- April — May — June 2010 4" Quarter SFY10 - RUBA Report - 90- April — May — June 2010 4" Quarter SFY10 - RUBA Report Port Heiden Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2007 Population: 87 Region: Alaska Peninsula Local Governments: 2™ Class City of Individual wells and septic tank systems are used by most homes in Port Heiden. The school operates its own well and treatment system. 31 of 37 occupied households are fully plumbed. The City currently provides septic pumping services, and collects refuse three times a week. The landfill is located 6.5 miles northeast of the community. A VSW project is currently underway to replace aging septic tanks, and provide a new septic pumper truck. RUBA Activity This Reporting Period Dillingham RUBA staff traveled to Port Heiden on June 22-25 to assist the City Clerk/Administrator with the FY11 budget and the FY09 certified financial statement. Other tasks included updating the Employer's Notice of Insurance with calls to the AMLJIA, calls to locate and update the Alaska Labor Law poster, a review of the city code of ordinances, calls to the RUBA QuickBooks contractor for financial reports needed and for information on how to set up and make entries into QuickBooks for tracking fuel inventories. RUBA staff also assisted Port Heiden with accessing the FY09 Fish Tax money. The trip is a quarterly trip as the city has a current RUBA agreement to provide ongoing management assistance. RUBA staff also fielded a call from Port Heiden regarding the fuel loan application and problems with receiving a quote for fuel cost. RUBA staff provided alternate contacts at Crowley and Delta Western. RUBA staff also discussed the Power Cost Equalization (PCE) reports and the clerk's concern that they were selling more kilowatts than they are producing. Port Heiden is participating in an Alaska Energy Authority (AEA) grant and having an audit performed on their generators. In May, RUBA staff met with Bryan Reed, Environmental Health Director for Bristol Bay Area Health Corporation to discuss funding and projects for communities in the region regarding funding and projects. Port Heiden is the only regional community on the project list and will participate in a pilot study of home water treatment. -91- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Yes No & OCF Allrevenue and expenses for the utility are listed in the utility budget. & CO The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & CF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. (1 YTD expenditures are at a level equal to or below those budgeted. (1 A monthly manager’s report is prepared. (1 Budget amendments are completed and adopted as necessary. Heke Finances Comments: QuickBooks Pro is presently used for most accounting functions. The city applied for and received this quarter a Rural Alaska Fuel Services (RAFS) bulk fuel loan and has taken delivery of the fuel. Budget amendments were made during the quarterly visit and will be presented to council at the next regular meeting for introduction and first reading. The clerk has not been providing a regular monthly financial report. During the visit training was provided on how to produce a monthly financial report. The QuickBooks file needs work and the entity could benefit from starting a new file. Revenues are exceeding expenditures representative of the clerk reducing the charges occurring and keeping more to a cash basis. More pay as you go meters have been installed again assisting with payment for services. The clerk has been working with the RUBA QuickBooks contractor on a regular basis to enter fuel inventories into QuickBooks. Monitoring of the city's use of fuel will begin to be entered into QuickBooks. Accounting Systems Essential Indicators Yes No Ol WB The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. & An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & OC The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. XO The utility has a cash disbursement system that records how money was spent. Sustainable Indicators & OF Achart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -~92- April — May — June 2010 4" Quarter SFY10 - RUBA Report OE eee pO Accounting System Comments: There is no collection policy for septic pump outs included in the Code of Ordinances provided to RUBA staff. Charges for electric and landfill service are paid using the PowerStat system, which requires payment in advance, and is an effective way of ensuring payments. Customers pay for heating oil at the time of purchase and septic pump-outs are billed at the end of the month in which the service was provided. City staff was unaware of a written purchasing policy. All accounting is recorded in QuickBooks 2010 that is installed on a single computer. A chart of accounts is used and with the new fiscal budget is being pared down to better match the budget. Monthly bank reconciliations are current. Tax Problems Essential Indicators Yes No & CO The utility has a system to accurately calculate, track, and report payroll tax liabilities. XK] The utility is current on filing tax reports. & CF The utility is current on making tax deposits. QO) W® [fthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Alaska Department of Labor confirmed that the city is meeting Alaska ESC tax obligations for the time frame of January | - May 31, 2010. The IRS Tax Payer Advocate advised RUBA staff that the city does not have a recorded notice of federal tax liens but the city is not deemed compliant as the city owes federal taxes for 2010 and a report was not filed in 2008. The IRS stated that there may have been no requirement to file the report. It is the city's responsibility to research the missing report issue and obtain a letter from the IRS that there was no requirement to file. The City of Port Heiden has a recorded lien for Default Judgment. RUBA will offer assistance in requesting a repayment agreement to release this lien. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & CO The utility has adopted and uses a Personnel Policy, which has been reviewed by an attomey, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. O O O©OF Of kX ® RK -93- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Comments: The current workers compensation insurance coverage is provided through Alaska Municipal League Joint Insurance Association (AMLJIA). The Division of Workers Compensation website indicates that the policy was active on June 30, 2010. The Code of Ordinances supplied to RUBA staff includes a basic personnel policy, however it does not include written job descriptions, nor does it include a hiring process or a probationary period for city employees. The policy does provide for annual evaluations. Folders for each employee include W-4's, I-9's and pay records. City personnel are offered training opportunities as finances allow. The Remote Maintenance Worker and RUBA staff provide on site training regularly. Organizational Management Essential Indicators Yes No CL] W& The entity that owns the utility is known and the entity that will operate the utility is set. & OC The policy making body is active in policy making of the utility. & OC The policy making body enforces utility policy. KK) The utility has an adequately trained manager. & The utility has an adequately trained bookkeeper. KK] The utility has an adequately trained operator(s). OO & The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. CO) WB The policy making body meets as required. Oo KK] The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Port Heiden owns and operates the community's utilities, however, their Code of Ordinances has no utility ordinance to authorize or set out guidelines for management of the utilities. City staff is working with RUBA staff on introduction of a utility ordinance as well establishing an organizational chart for the city. The clerk/administrator/treasurer is adequately trained. The utility at this time does not require trained operators, however employees keep updated in hazmat training, CPR The City of Port Heiden owns and operates the community's utilities, however, the city's code of ordinances has no utility ordinance to authorize or set out guidelines for management of the utilities. City staff is working with RUBA staff to develop a utility ordinance as well establishing an organizational chart for the city. The clerk/administrator/treasurer is adequately trained. The utility does not require trained operators, however employees keep updated in hazmat training, CPR and safety classes. The city council meets as required and complies with the open meetings act. -~94- April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No & CO The utility operator(s) are actively working towards necessary certification. Ol & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & CO 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. &] The utility has a safety manual and holds safety meetings. -. . ‘ Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. (1 The utility is operating at the level of service that was proposed. LJ The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. XX The utility maintains an inventory control list. The utility maintains a critical spare parts list. DOXRROR Operation of Utility Comments: The utilities and services offered by the City of Port Heiden do not require certification of its operators, however preventative maintenance plans should be created and implemented. The City of Port Heiden does not operate a water utility so regulations regarding water quality and reporting do not apply. Management of the utilities and services offered by the city would be improved with monthly operations and maintenance reports from the operators and the use of separate lists for inventory control and critical spare parts. Implementing a safety manual and holding regular safety meetings would enhance safety. RUBA Activities For The Coming Quarter RUBA staff and Port Heiden city have developed a workplan for assistance. RUBA assistance will be provided as requested to help the city clerk in performing his duties and completing the work plan tasks. -95- April — May — June 2010 4" Quarter SFY10 - RUBA Report Port Lions Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 179 Region: Kodiak Island Local Governments: 2" Class City of The BIA and Indian Health Service built the community sanitation system in 1965. Over 100 residences are connected to the City's piped water and sewer systems and 95% of these have complete plumbing. The Branchwater Creek Reservoir provides water, which is treated and stored in a 125,000-gallon tank. The existing dam is weakening; funding has been provided to make repairs. A local priority is to construct a new 500,000-gal. dam on the creek. A new landfill site has been identified. Kodiak Electric Association provides electricity. RUBA Activity This Reporting Period RUBA staff has had frequent communication with both the city and a community member. RUBA staff has advised both parties concerning an issue of council employment with the city. Alaska Statute 29.20.620 prohibits compensation to council members unless provided by ordinance. However, Section 2.01.050 Compensation of Council Members of the Port Lions code allows for compensation of council members if the council passes a resolution for the employment. RUBA staff advised the council to follow the code and introduce a resolution to the council. RUBA staff advised the community member to request that the city council review the subject as an agenda item at a council meeting if they felt the code and hiring practices were objectionable before pursuing the powers of initiative and referendum. RUBA staff was contacted by the City of Port Lions grants coordinator for assistance in drafting a resolution in connection with the new EDA grant the city received. The council was in need of a resolution that would give authorization to the mayor to act as the manager and purchasing agent for the EDA Project. The city will be expending large amounts of money, and the mayor needs to have the ability make decisions without waiting until there is a meeting. RUBA staff worked with the grants coordinator to create a draft resolution to present to the council. -~97- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Yes No ® O BW QO & X Xx Oo ® O All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators O kX | Oo The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: In October 2008 the City of Port Lions revised the water/sewer/garbage rates to ensure they were charging enough to cover the operating expenses. The Native Corporation is the community fuel supplier, and the City has budgeted funds to cover fuel purchases for the year. Each month the city clerk supplies the council with a financial report, along with a written clerk's report. The mayor reports verbally to the council. Accounting Systems Essential Indicators The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. ainable Indicators Yes No ® O ® O RO B® O ® Oo & BM Oo Sust 4) | O A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 98 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting System Comments: The city utilizes QuickBooks for accounting and payroll. The city budget is on an Excel spreadsheet and it is reviewed and updated monthly. The city has a collection policy, which it actively follows, and customers are billed on a regular basis. A purchasing system is in place which requires a purchase order to be submitted to the clerk, who reviews it with the mayor; a decision is made to approve or deny the request based on the budget. Tax Problems Essential Indicators Yes No Xi The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CF The utility is current on filing tax reports. & CF The utility is current on making tax deposits. H If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City signed a tax information release form. The Internal Revenue Service responded that the city currently in compliance. The State Department of Labor (ESC) also reported that the City of Port Lions is in compliance. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & OC The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & OC The utility has adequate written job descriptions for all positions. & OC The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & C2 The utility has an adequate written hiring process. & OC The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. QR The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Kl OO The utility provides training opportunities to staff as needed and available. Personnel System Comments: The city has a posted worker's compensation insurance policy in effect. It was posted on a community bulletin board in the city office. The policy is in effect from July 1, 2010 - June 30, 2011. The clerk stated the city has an adopted personnel policy. Employee personnel folders are thorough and complete. The utility's probationary period for new hires is three months. -99- April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No CO The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. (The utility has an adequately trained operator(s). . . lk The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &] The utility has adopted an organizational chart that reflects the current structure. & (1 The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HRKXRXR Organizational Management Comments: The policy making body is active and informed in making and enforcing utility policies. The mayor and clerk are knowledgeable about the utility's policies, activities, and financial health. Operation of Utility Essential Indicators Yes No & OC The utility operator(s) are actively working towards necessary certification. ® O]_ The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & CF The manager receives a monthly O&M réport from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. XX] The utility has a safety manual and holds safety meetings. 1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. WHReRReX OO0000 Operation of Utility Comments: The City has two qualified water operators. The water operator submits a monthly report to the city council and reports any significant activity immediately to the mayor. The main operator is working toward receiving his Level | certification in water treatment. With the assistance of the RUBA program, the Regulatory Commission of Alaska (RCA) Provisional Certification application was completed and approved. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the community to maintain sustainability. - 100 - April — May — June 2010 4” Quarter SFY10 - RUBA Report —— eee eee ee port Saint Mary’s Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2007 Population: 549 Region: Lower Yukon Local Governments: 1* Class City, of Water is derived from Alstrom Creek reservoir and is a, treated. The majority of the city (156 homes and facilities) Pen, ot APT have complete plumbing and are connected to the piped water and sewer system. Waste heat from the power plant supports the circulating water system. A 1.7 million-gallon sewage lagoon provides waste treatment. Approximately 6 residences haul water and use honeybuckets; the city provides hauling services. The community is slated for funding for a water system upgrade which will include replacing water mains, hydrants and service lines during the summer of 2010. RUBA Activity This Quarter Bethel RUBA staff visited Saint Mary's from May 18-21, 2010. The only first class city of the Yukon Kuskokwim Delta is recovering from an unfortunate frigid January. Three leaks occurred in the city's main water lines, causing pipes to freeze in numerous services lines and leaving many homes without water for ten days. The community is slated for funding for a water system upgrade which will include replacing water mains, hydrants, and service lines during the summer of 2010. Despite all the problems associated with the freeze ups, the city's utility operator has done well in restoring normal service to the community. The water treatment plant was clean and well maintained, the lab was neat and orderly, and water sampling was up to date. The format of the city's current FY10 budget does not break out revenues and expenses for each of the city's departments, therefore it was difficult to determine how much subsidy was required to cover expenditures for the water/wastewater utility. An accounts receivable aging summary for the utility revealed that of 206 accounts listed, 104 were 90 days past due. The city's main checking account has not been reconciling in over a year and monthly financial reports are not completed or provided to the council. An Anchorage based accounting firm was hired in January 2010 to get the city's books ready for the FY09 audit. A temporary clerk has also been hired to help with entering transactions so that bank statements can be reconciled. Bethel staff was asked to present preliminary RUBA findings at a May 21, 2010 special council meeting. Council members and the city manager were very appreciative of the on site visit, being informed of the findings, and of the advice and recommendations offered to correct the deficiencies identified. -101- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No [1] §& Allrevenue and expenses for the utility are listed in the utility budget. {J The utility has adopted a balanced realistic budget. 1 W& Monthly financial reports are prepared and submitted to the policy making body. J The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. EK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. 1 YTD revenues are at a level equal to or above those budgeted. Ol W& ytTD expenditures are at a level equal to or below those budgeted. 1 W& A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The format of the FY10 budget adopted on July 7, 2009 does not break out revenues and expenses for each of the city's departments, therefore it is difficult to determine how much outside revenue might be required to cover operating expenses for their water and sewer utility. Monthly financial reports have not been provided to the city council for over a year. The city's FY08 audit was submitted to DCRA's Juneau office in late March of 2010. On June 1, 2010, Alaska Village Electric Cooperative (AVEC), the electric utility for the community, indicated that Saint Mary's was more than 30 days past due for invoices of the booster pumping station and water service accounts. The city purchases fuel from Crowley, which has a fuel distribution tank farm located on city property. The city orders fuel twice a year, in the spring and in the fall. On April 4, 2010 the city ordered 23,000 gallons of heating oil for delivery during the spring and another 23,000 gallons for delivery in the fall of 2010. On May 18, 2010 the community had 2,400 gallons of heating oil at its disposal. In the past, Saint Mary's has subsidized the utility services with income from the general fund, specifically from gravel haul services and equipment rental income. This has allowed the city to purchase heating oil without bulk fuel loans. Minutes from past city council meetings were requested but not provided, therefore it wasn't possible to ascertain the content of monthly manager's reports. - 102 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ———— ees eee ee a eport Accounting Systems Essential Indicators Yes No XX The utility has adopted a collection policy and actively follows it. (1 The utility bills customers on a regular basis. 1 Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. , An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. C1 W& Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval Process compares proposed purchases to budgeted amounts. OH XXRX WwO X Accounting Comments: There is a collection policy located in the city’s code of ordinances. A copy of the ordinance is in the community file located in the Bethel regional office. The May 2010 accounts receivable aging summary for the utility revealed that of 206 accounts listed, 57 were 90 days past due for more than $200; 29 were 90 days past due for more than $500 and 18 accounts were 90 days past due for over $1000. A copy of a customer billing was provided, which is sent out on a monthly basis. Billing statements contain a starting balance, current billing for water, sewer and garbage collection. Past due sections for current amount due, 30 days, 60 days, 90 days and over 90 days past due are also included in the monthly statement. The city uses QuickBooks Pro for their accounting system and for tracking payroll taxes. A cash receipt journal is used for receiving check and cash payments; transactions are entered into QuickBooks. A copy of the chart of accounts was provided and is actively being used. A copy of their procurement policy, Chapter 4.05 was also submitted and is on file. The city's main checking account has not been reconciled for over a year. Copies of purchase orders were provided which reflect a pre-approval requirement for purchases; however without up-to-date monthly financial reports it would be difficult to determine if funds were available to cover the costs of potential purchases. An Anchorage based accounting consulting firm was hired on January 11, 2010 to get the city's books ready for the FY 2009 audit. A temporary clerk has also been hired to help with entering transactions so that bank statements can be reconciled. Tax Problems Essential Indicators Yes No & (1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. RX The utility is current on making tax deposits. & OC Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: On January 27, 2010 Bethel RUBA office received correspondence from the IRS indicating Saint Mary's was in compliance for federal taxes from January 2007 through January 2010. The Alaska Department of Labor and Workforce Development reported that Saint Mary's had filed all required reports and deposits for the employment security taxes. - 103 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No | The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & OC The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. O The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. ba The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. O Wk Ww Personnel System Comments: The City of St. Mary's is insured by Alaska Municipal League Joint Insurance Association, Inc (AMLIJIA). Proof of the workers compensation insurance coverage was verified from the Department of Labor, Worker's Compensation website. A June 2, 2010 phone call to AMLJIA from RUBA staff confirmed that Saint Mary's is in good standing with coverage through July 1, 2010. A City of St. Mary's Employee Handbook was adopted in 1996 and needs to be reviewed and updated. Job descriptions for the following positions were provided: water and sewer utilities operator and assistant operator for the water and sewer services. A copy of City Ordinance Chapter 2.05 stipulating the powers, duties and responsibilities of the city clerk and city manager is on file. The city manager gives informal employee evaluations but not written evaluations. A written hiring process was not found in the Employee Handbook or the city's code of ordinances. The city's personnel files do not contain letters of acceptance; about half the files do not contain applications; and a few files lacked I-9s. The city's employee handbook briefly mentions a probationary period for evaluating new employees. Informal interviews with employees indicated training opportunities are provided by the city and staff are encouraged to develop and increase their skills. - 104 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & OC The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & The utility complies with the open meeting act for all meetings. OOwoOoO XRXWOWR Organizational Management Comments: A copy of Saint Mary's Code of Ordinances Chapter 2.13 Division of Freshwater and Wastewater Utilities System is on file. The city council is active in policy making for the utility, however they are not enforcing the collections policy. The council meets monthly at which time they receive status reports from the city manager and the water and wastewater operator about the utility's equipment, infrastructure and services. The May 19, 2010 accounts receivable aging summary indicates that the utility's billing and payment policy are not strictly enforced. Due to the recruiting efforts of the interim city manager, a new city manager has recently been hired and starts to work on June 7, 2010. The interim manager was hired in June of 2009 and will be leaving in June of 2010, but will continue on as a consultant until the new city manager gets settled in. The city clerk/treasurer was hired in November of 2008 and had taken a QuickBooks class prior to her city employment. She recently attended QuickBooks Intermediate and Payroll workshops held in the community. The Anchorage based accounting consultant hired by the city has been training and working very closely with the clerk/treasurer to set up QuickBooks in a format better suited for tracking the city's enterprises. The consultant has over 20 years of experience working with Alaska non-profit organizations. A second full time bookkeeper with QuickBooks experience may be required in order to handle the city's administrative and financial work load. The lead utility worker is well qualified; he has a bachelor's degree in aquatic resources and an associate's degree in fisheries technologies and has worked for the city for sixteen years. He also has the following state certificates: Water Treatment Level 3, Water Distribution Level 2 and a Wastewater Treatment Level 1, all expiring on December 31, 2010. He also holds a Wastewater Collection Level 1 Certificate which expires on December 31, 2011. A recently adopted organization chart for the city government was provided by the interim city manager. The city council holds regular meetings on the first Tuesday of each month and the meetings are open to the public. The meeting agendas are posted prior to council meetings. - 105 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No Kl CF The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & C1 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. The utility has a safety manual and holds.safety meetings: Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. HRRRRR OoOoOooo of Operation of Utility Comments: The utility worker has many training certificates including Water Distribution Level 4 with an expiration date of December 31, 2010. A sample of the inventory control list and task description for the water and sewer system for 2007 and 2008 was submitted. It was not clear whether or not safety meetings had been held. Saint Mary's is not on the Significant Non-Complier list. Copies of the Consumer Confidence Report and critical spare parts list are on file in the Bethel regional office. RUBA Activities For The Coming Quarter Bethel RUBA staff will be working with Saint Mary's new city manager to help the city meet the financial and accounting essential indicators. - 106 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ee ee enh ert ETO - RUBA Report Selawik Activity Report Community Overview Lead RUBA Staff: Margaret Hansen, Kotzebue Regional Office 2007 Population: 828 Region: Northwest Arctic Local Governments: 2" Class City, of The community has piped water and sewer throughout “*, the entire community; 96% of the homes are fully ee F plumbed. Water plant upgrades and the river pump system are being evaluated now for possible future projects. DEC has been in Selawik to do a comprehensive evaluation of the water quality, which will be helpful in determining what changes need to be implemented. The city signed an agreement with the Alaska Rural Utilities Collaborative (ARUC). ARUC took over operation of the utility and fixed 95% of the glycol leaks. The waste heat system is also operating again. RUBA Activity This Quarter This community signed a Alaska Rural Utilities Collaborative (ARUC) management agreement through September 30, 2012. The administrator is still requesting training and assistance for the staff and council in updating the old code of ordinances which she received in a letter this last quarter. RUBA staff reviewed financial information provided. - 107 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX OO000 & All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses . Sustainable Indicators X oO Beak The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The city have adopted a FY11 balanced budget that includes all revenues and expenses for the utility which are documented in a monthly financial reports to the council. ARUC has ordered the fuel for the utility and for the city owned facilities. No repair and replacement fund was identified in the budget. The monthly financial reports reveal that all revenues are equal to or above those budgeted and the expenditures are at or below those budgeted. The city has not had to do any budget amendments as reported in the monthly manager's report. Accounting Systems Essential Indicators Yes No ® O &X O X ® O P| ® QO & The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. O O n Wkwe ainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 108 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ee port Accounting Comments: The city has a collection policy which will be updated by ARUC and reviewed by the council to increase their rates. ARUC provides accounting for the water/wastewater utility. The city utilizes QuickBooks for accounting to provide the council with reports of accounts past due and all other accounting functions. The administration is caught up with bank reconciliations and monthly reports; they use purchase orders that are approved after reviewing the monthly financial report and any outstanding purchase orders. Tax Problems Essential Indicators Yes No . ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CO The utility is current on filing tax reports. & [] The utility is current on making tax deposits. & (C1 Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: QuickBooks accurately calculates and tracks payroll tax liabilities and the city is current in filing tax reports. ARUC is deemed compliant by both IRS and ESC. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & C1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. (1 The utility provides training opportunities to staff as needed and available. & wk ww O OOF oF Personnel System Comments: The city has workers compensation coverage until June 30, 2011. A notice of coverage is posted in the city office. The city staff has not had any recent turnover in personnel. All personnel folders are still current and include written job descriptions. The city utilizes the approved Alaska Municipal League personnel policies that provides a written evaluation process and include a probationary period. ARUC provided some operator training and will cross-train operators so they can do water, wastewater and outside plumbing work if needed. - 109 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. (1 The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & CO The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & OCF The utility complies with the open meeting act for all meetings. HRHRRH Organizational Management Comments: The city has the necessary ordinances to give it authority and is the known entity to operate the utility. The city has a signed Memorandum of Agreement for utility management to be provided by ARUC. The city has an organizational chart that reflects the current structure. The city council complies with the Open Meetings Act. ARUC is active in making sure the council follows and enforces their utility policy. The City Administrator has held the position for approximately five years. The bookkeeper and certified operator are also long term employees. Operation of Utility Essential Indicators Yes No & C0 The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® 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. & The utility has a safety manual and holds safety meetings. Xi Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. 1 The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). KJ The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. (1 The utility maintains a critical spare parts list. RWORN Operation of Utility Comments: The operator has held the position for ten years and is certified for wastewater treatment OIT, collection OIT, water distribution 1, and water treatment 2 until 2011. One alternate has two years experience and is certified in wastewater collection, and the other alternate is certified in water distribution and treatment, wastewater collection and treatment. ARUC is working on cross training three other operators to be able to assist the city as needed. ARUC has held safety meetings and since ARUC took over there are no known problems that are due to management issues still unresolved. The system is still on the SNC list because it needs new hardware to resolve the violations. This will require - 110- April — May — June 2010 4" Quarter SFY10 - RUBA Report installation of a new recorder that can record higher values. The water treatment plant is a direct filtration system with two filters. A new water treatment plant is in the early stages of design but insufficient funding has stopped progress for now. Inadequate operator attention combined with lack of automation and inadequate treatment capacity have resulted in the majority of the treated water quality problems. RUBA Activities For The Coming Quarter -11l- April — May — June 2010 4" Quarter SFY10 - RUBA Report a —— eee ee ee eport Shishmaref Activity Report Community Overview Lead RUBA Staff: Steve Brock, Nome Regional Office 2007 Population: 609 Region: Bering Straits Local Governments: 2™ Class City, The City of Shishmaref operates a central watering point, a water truck delivery service, multiple watering points, a washeteria, and a honey bucket service. The city council is the policy making body for the utility. Water is derived from a surface source; it is treated and stored in a new tank. Shishmaref is undergoing major improvements, with the construction of a flush/haul system and household plumbing. No homes have piped water at this time. Many residents continue to haul their own water. The City hauls honey buckets and services the new flush tanks. Flush systems are functional in 17 residential homes. The school, clinic, city hall and fire hall are connected to a sewage lagoon. RUBA Activity This Quarter At the request of the Shishmaref City Council, Nome RUBA staff traveled to Shishmaref on May 27 and 28, 2010 to conduct the RUBA assessment. RUBA staff met with the city council to discuss the RUBA assistance agreements and management assessments. The council approved the agreement unanimously and RUBA staff will schedule travel quarterly travel to Shishmaref to provide on site assistance. RUBA staff toured the water plant with the plant operator to become familiar with the layout of the system. The RUBA assessment was completed during the visit. The utility did not meet all the essential indicators. RUBA staff also provided assistance during the quarter with several personnel issues, questions concerning local option laws, and possible drug testing requirements. Per an informal request from the city council, the mayor resigned as mayor but retained his city council seat until the fall regular scheduled election. - 113 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Ri All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. ® The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators RX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. RR woo Finances Comments: The city bookkeeper is skilled in the use of QuickBooks Pro and has a detailed chart of accounts that lists all revenues and expenses for the utility. Neither the utility budget nor the overall city budget were originally adopted as a balanced budgets. Both budgets had revenues that exceeded expenditures. Using QuickBooks and Excel, the city bookkeeper provides the city council with monthly profit and loss statements that compare income and expenses to the adopted budget. RUBA staff confirmed that the utility electric bills were tracked in the accounts payable system and were current with the invoices received from Alaska Village Electric Cooperative (AVEC). At the end of May, the utility still had 3,000 gallons of fuel remaining, which will last until the fuel barge arrives. The utility continues to operate in the black. Year-to-date revenues were $193,314 while expenditures were $172,730. Repair and Replacement costs were less year-to-date than budgeted; $15,000 was budgeted for repair and replacement and only $3,875 had been spent. With revenues of $193,314 and projected revenues to be $159,775, year-to-date expenditures are 88% of the forecast budget amount. The monthly managers report is presented to the governing body. A copy of the report from the most recent meeting was provided to the RUBA staff. No budget amendments had been made for FY 10 as of May 2010. -114- April — May — June 2010 4" Quarter SFY10 - RUBA Report es en eh rer SEAT - RUDA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators (A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. QR OO The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XRXX WRN IoO0 OO e oO Accounting Comments: The city bookkeeper has excellent financial management experience and uses it to the advantage of the city. The utility bills and records are accurate and kept up to date. A NEBS cash receipt system is used to record cash receipts. The bookkeeper has developed a functional chart of accounts that adequately covers the operations of the utility. All incoming revenues are identified and properly credited to the revenue category. Monthly bank statements are reconciled as soon as they are received. The city clerk and the bookkeeper ensure that all purchases are made in accordance with items identified in the city budget. The mayor has the final signatory authority on the checks, also verbally verifies with the bookkeeper to assure that the funds being spent are not in excess of the budgeted amounts. The profit and loss statements confirm that actual expenditures have not exceeded the budgeted amounts. Tax Problems Essential Indicators Yes No : & C1 Theutility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & CO The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility bookkeeper utilizes QuickBooks Pro to calculate, track and report payroll tax liabilities. The bookkeeper presented to RUBA staff the current tax filing reports. The utility makes tax deposits at each payroll event as evidenced by the accounts payable journal entries. RUBA staff contacted the IRS and confirmed that the utility and city are current with tax reports and tax deposits. RUBA also contacted the Department of Labor to learn that the city is deemed compliant at this time. -115- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators H Xi Be oO O oO oO The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The notice of workers compensation coverage was posted in plain view in the city office. The city is insured through AMLJIA. Their policy ran from July 1, 2009 to June 30, 2010. The utility has written job descriptions for each position on file in their personnel policy handbook. These job descriptions are utilized to complete both the probationary and routine evaluations. The utility uses the hiring process outlined in the city's ordinances and restated in the personnel policy handbook. The utility has personnel folders for all employees, however some folders are more complete than others. The I-9 forms and letters of acceptance were the primary documents not included in the folders. The manager was unaware that these documents were required. The standard probationary period for all new hires is six months. - 116- April — May — June 2010 4" Quarter SFY10 - RUBA Report SO eee prone Organizational Management Essential Indicators Yes No %J (1 The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. (1 The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. (1 The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators () & The utility has adopted an organizational chart that reflects the current structure. & C1 The policy making body meets as required. & OC The utility complies with the open meeting act for all meetings. RHRRRwH Organizational Management Comments: The City of Shishmaref owns and operates the utility. The manager, bookkeeper and operator have all been in their positions over two years. The operator is certified at the classification level for the system he operates. The operator is successfully running a complex water treatment and distribution system. The operator takes pride in producing a quality water product for the community. The city council meets as scheduled on the Ist and 3rd Tuesday of each month and includes the utility issues as part of the regular agenda. The city council has made no amendments to the 2010 budget as of this assessment. The city needs to develop additional ordinances to cover the activities that they are currently practicing. The utility has no codification of sewer and water rates for either commercial or residential accounts. The utility does not have a written organizational chart. The lack of this documentation has generated some animosity among citizens of Shishmaref, who have only verbal information to go by. The city councils the policy making body, and meets the Ist and 3rd Tuesday of each month as prescribed in the city ordinances. The utility is vigilant in complying with the open meetings act. RUBA staff observed posted notices displayed in three different locations in town announcing a special meeting of the city council. Operation of Utility Essential Indicators Yes No & CF The utility operator(s) are actively working towards necessary certification. EC) _ The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators (1 W& 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OR} DOOOORK ®& BRwwO -117- April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Comments: The operator is pursing his CEU's to maintain his certification. The Preventive Maintenance Plan is clearly posted on the water plant wall. The operator does not generate a formal operations and maintenance report, nor is the manager doing spot checks. The utility does not hold safety meetings or have a formal safety manual. The utility has not completed the annual CCR. The utility is currently on the SNC list for stage 1 violations. The utility has not missed a monthly sample in the past twelve months but the system still exceeds the TTHM RAA MCL. The Remote Maintenance Worker is working with the city's utility operators to get the utility off the SNC list. The utility does not have an inventory control list or a critical spare parts list. The operator is very knowledgeable and does keep the critical spare parts on hand. He also orders replacement spare parts as needed. RUBA Activities For The Coming Quarter Nome RUBA staff will develop a work plan with the city to help the utility pass the essential and sustainable indicators that have not been met. A site visit will be scheduled for this coming quarter to assist the city with implementing the work plan. - 118 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Stebbins Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 598 Region: Bering Straits Local Governments: 2" Class City, od Major improvements have been funded and planned for ‘a. many years to provide a piped water and sewer system, with household plumbing. Residents currently haul water and deposit honeybucket waste in bins. During the summer, water is derived from Big Clear Creek and is treated and stored in a 1,000,000- gallon and 500,000-gallon steel water storage tank. There is a central watering point at the washeteria, distributed from the tanks via plastic pipelines. A reservoir is planned in order to alleviate winter water shortages. DEC has approved the landfill for use, although it is not permitted. Refuse is collected by the City from central bins. Electricity is provided by Alaska Village Electric Cooperative. Pn, et RUBA Activity This Quarter At the request of the mayor and city clerk, Nome RUBA staff, Steve Brock and Leroy Seppilu, traveled to Stebbins on May 13 and 14 to perform a RUBA management assessment. The city did not pass the assessment. The essential indicators that were found to be deficient are (1) adopt a balanced realistic budget, (2) monthly financial reports are prepared and submitted to the policy making body, (3) the utility has adopted a collection policy and actively follows it, and (4) the utility customers are billed on a regular basis. RUBA staff reviewed the assessment with the city administrator and recommended that the city work with RUBA staff to pass the essential indicators within the next two months. RUBA will continue to monitor Stebbins and provide assistance to correct the essential indicators. -119- April — May — June 2010 4” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & (O Allrevenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. 1 The utility is current in paying all water/wastewater electric bills. O The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. I YTD revenues are at a level equal to or above those budgeted. Kl YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. X C1 Budget amendments are completed and adopted as necessary. w w Finances Comments: Total utility revenues exceed total utility expenditures by $71,687. The City of Stebbins subsidizes the utilities with gaming revenues and other locally generated revenues. Monthly profit and loss financial reports are made using QuickBooks Pro. The reports do not compare actual income and expenses to the budget. The city purchased fuel oil using funds from Norton Sound Economic Development Corporation's Community Benefits Share Program. The heating oil supply ordered is adequate for one year. - 120 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No oO The utility has adopted a collection policy and actively follows it. 1) & The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. & © Anaccounts payable system is in place. & OC The payroll system correctly calculates payroll and keeps records & OC Acash receipt system is in place that records incoming money and what it was for. & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators 1 Acchart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. sa 0) Accounting Comments: The city has not actively followed its collection policy, although it continues to provide trash and honey bucket haul services. The customers have not been billed for the services for at least a year. The city administrator said she was not billing the trash/honey-bucket haul service customers because the council did not order it. In relation to this issue, a customer requested a copy of the city's trash/honey- bucket haul service ordinance. RUBA staff recommended the city give him a copy, and added that the city can charge a fee for making a copy. The customer complained that the trash and honey bucket bins were overflowing and causing a health hazard to the children and people. Tax Problems Essential Indicators Yes No RX The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. & C1 The utility is current on making tax deposits. & C1 ffthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city keeps current on depositing payroll tax liabilities to IRS and Employment Security Contributions (ESC). All quarterly reports are completed and submitted in a timely manner. The IRS and DOL have deemed the city is compliant at this time. -121- April — May — June 2010 4" Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators | The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. KK] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & The utility has an adequate written hiring process. KK] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. i The utility provides training opportunities to staff as needed and available. Personnel System Comments: The city’s insurance and workers compensation coverage is through Alaska Municipal League Joint Insurance Association (AMLJIA). The city uses funds from the Norton Sound Economic Development Corporation's Community Benefits Share program to pay for the coverage. The city administrator is setting up comprehensive personnel files. She has been working on that since she was hired. Organizational Management Essential Indicators Yes No ® The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. KI The policy making body enforces utility policy. C1 The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators KK] The utility has adopted an organizational chart that reflects the current structure. Kl CO The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Heke Organizational Management Comments: The city council acts as the utility board. The utility operator's certifications have expired and he will need to be recertified. The city administrator has previous experience as a tribal administrator and is familiar with most of her duties. The policy making body is not enforcing the billing policy. April — May — June 2010 4" Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No & |_| The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X 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. The utility has a safety manual and holds safety meetings. LJ Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. (0 The utility has completed and distributed its Community Confidence Report (CCR). KI] The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. (1 The utility maintains a critical spare parts list. MWORKR w& O Operation of Utility Comments: The utility operator is working toward renewing his sanitation certificates that expired a few years ago. The city is still on the Significant Non-Complier list for a Stage 1 violation and for SWTR. RUBA Activities For The Coming Quarter Nome RUBA staff will work with the Stebbins city administrator to help the city meet the essential indicators it did not pass and to adopt a balanced realistic budget. The FY 10 is just about over, the revenues should equal to or be greater than expenditures. The city council should increase some of the utility rates charged for services. The utilities should be able to pay for most or all of the expenses they incur, with the revenues generated by the rates and fees paid by utility customers. Monthly financial reports should include each revenue and expense account and should compare actual year-to-date income and expenditures to the budget. It is recommended to use an Excel Spreadsheet for making comprehensive monthly financial reports. A majority of the utility customers are behind with their bills and the city is not actively seeking to collect the past dues. The city administrator will need to start billing the trash and honey-bucket haul customers once a month for the services provided as specified in the city's utility ordinance. There are very few utility customers current with their haul services bills, because the customers have not been billed for at least a year. The city does not have job descriptions for all utility employees. A sample utility operator job description was provided. The city council should review, modify and adopt the job description, including one for the alternate operator and a job description that identifies who will act as the utility manager. The city administrator acts as a utility manager. The city's personnel policies will need to be revised and updated, including personnel evaluation process that uses forms for evaluation of each employee. A retention system should also be set up and the filing system regularly maintained and updated to keep from cluttering. RUBA staff will work with the city to set up a comprehensive personnel filing system for all its employees. The city employs up to 25 people each year. The city does not have an organizational chart that outlines current structure. The city's insurance provider is Alaska Municipal League Joint Insurance Association. AMLIJIA hold quarterly safety teleconferences. The city council should require all city employees, including utility employees, to participate in these teleconferences. RUBA staff will work with the city to meet all the essential and sustainable indicators. The city administrator is a self-starter and learns easily. - 123 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ——— — Stevens Village Activity Report Community Overview Lead RUBA Staff: Brendan Smyth, Fairbanks Regional Office 2007 Population: 63 Region: Interior Local Governments: IRA Council od Stevens Village has a small washateria with three “Ae washers, two dryers, two showers, and two bathrooms. The washateria was upgraded in 2002. The water plant provides service to the school and to the health clinic. Residents haul water from a watering point, and use honey buckets and outhouses for sewage disposal. Sewage from the washateria, clinic and school is disposed of in a lagoon. The lagoon is probably filled near capacity and should be discharged. A VSW sanitation planning feasibility study was completed in 2002, but was not approved. The scope of the new feasibility study has been changed several times to include additional alternatives in an effort to try to identify options that are affordable to the community. Stevens Village had planned on constructing a new multi-use facility to include a Denali Commission funded Clinic and a Hygiene Center with public showers and restroom facilities, but may be looking at renovating existing facilities as a more viable option. A design for a new solid waste facility has been completed. RUBA Activity This Quarter On April 19 - 20, 2010 Fairbanks RUBA staff travelled to Stevens Village to conduct a RUBA management assessment and to meet with the tribal council to discuss the RUBA assessment and utility management issues. RUBA staff met onsite with the tribal administrator and collected available information and data from the administrator and clerk. Deficient essential indicators were found in the areas of utility finances, accounting systems, personnel systems, organizational management, and the operation of the utility. A RUBA assessment report will be completed and presented to Stevens Village for comment. While in Stevens Village, RUBA staff was informed that the scheduled meeting was cancelled because the first chief and second chief were not available for the meeting. RUBA staff discussed utility management concerns with the tribal administrator. A follow-up meeting with the tribal administrator and the Stevens Village accountant was scheduled to be held in Fairbanks. Fairbanks RUBA staff met with Randy Mayo (Stevens Village tribal administrator) and Howard Taylor (Fairbanks based accountant for Stevens Village) in Mr. Taylor's office on April 21, 2010 to discuss concerns regarding the Stevens Village washeteria budget and financial report. RUBA staff has had frequent contact with the tribal administrator during this quarter. The importance of getting the RUBA management assessment completed was stressed by both RUBA staff and the proposed project engineer. The tribal administrator traveled to Fairbanks and met with RUBA at the regional office. RUBA staff will also arrange to meet with the village accountant who is based in Fairbanks. RUBA staff will also arrange to meet with the village accountant who is based in Fairbanks. -125- April — May — June 2010 4" Quarter SFY10- RUBA Report Capacity Indicators Finances Essential Indicators Yes No & O Allrevenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. &] Monthly financial reports are prepared and submitted to the policy making body. KK CO The utility is current in paying all water/wastewater electric bills. &) The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators C1 W& The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. KI YTD revenues are at a level equal to or above those budgeted. () W& yYtTDexpenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The utility budget shows the revenue and expenses for the village water utility, but it is not a balanced budget. Expenses for the utility are being subsidized by the electric utility, though the revenue from the electric utility is not enough to balance the budget. Monthly finance reports are prepared by the accountant. These reports do not compare actual revenue and expenses to budgeted amounts, and it is hard at this time to know if the tribal council sees the reports because of a lack of regular meetings. The utility is current on paying the electric bills. The utility has fuel flown in as needed and uses a delivery truck to get it from the airfield to the tank farm. The utility does not receive enough revenue to cover the operating expenses. The utility does not currently have revenues to pay for any repair and replacement costs and the year-to-date revenues and expenditures are not at levels budgeted. The monthly manager's report is prepared, though again, since the utility is not meeting regularly it is hard to determine how accurate and useful it is. Accounting Systems Essential Indicators Yes No &] The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. &] Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. C1 The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. ® Rew Oh W® The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & OCF A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 126- April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting Comments: The Stevens Village tribal council has not adopted collection policy. The utility does send invoices to the only billed water customer which is the school. The school currently pays a flat rate of $1280.00 each month. There is no accounts receivable system in place. The accountant pays bills when they are received, so no bills stack up. The payroll is calculated and paid by the accountant who keeps the records and pays the taxes. The cash receipt system used tracks the washeteria token purchases. and marks down how much is received and for what. The utility does not disburse any cash because it does not have a safe to keep cash on site. The Stevens Village tribal council does not have a purchasing policy. Tax Problems Essential Indicators Yes No X (The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. & (1 The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS and State of Alaska, Department of Labor deem Stevens Village Tribal Council compliant at this time. Personnel System Essential Indicators Yes N o & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & OC The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. O oO O O OO QO Q O Personnel System Comments: The utility has a posted a notice of workers compensation insurance policy with AMLJIA that is effective until July 2010. The utility has a personnel policy and a copy of it is located in the Fairbanks RUBA office. The utility does not have any job descriptions that were shown to RUBA staff and the utility does not have any job evaluations that are done regularly and follow the job descriptions. The utility does not have a written hiring process and does not keep employee files. The utility has a 90 day probationary period but does not conduct evaluations of employees. The utility provides training opportunities for employees when needed. - 127- April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No (1 &) The entity that owns the utility is known and the entity that will operate the utility is set. [11 ®& The policy making body is active in policy making of the utility. The policy making body enforces utility policy. & OF The utility has an adequately trained manager. & C2 The utility has an adequately trained bookkeeper. & O The utility has an adequately trained operator(s). KK] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX The utility has adopted an organizational chart that reflects the current structure. (1 &) The policy making body meets as required. & OC The utility complies with the open meeting act for all meetings. Organizational Management Comments: Currently there are no adopted regulations or bylaws stating the utility is owned and operated by the village. The Tribal council is not active in policy making. There is no utility policy to enforce, and the only billed entity is the school. The clerk (who does the job of clerk and post master) acts as the utility manager. The trained accountant is located in Fairbanks. RUBA staff has been informed there is a substitute operator who has attended classes, yet needs to complete additional classes to renew old certifications. The village has not adopted the necessary regulations to give it authority to operate the utility, though it has been operated by the village since its completion. The utility has not adopted an organizational chart. The policy making body does not meet on a regular schedule, and is a tribal government so does not need to comply with open meeting act requirements. RUBA staff recommends that the policy making body keep to a planned schedule of meeting dates and times. Operation of Utility Essential Indicators Yes No & CC The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators {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. The utility has a safety manual and holds safety meetings. (1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. DOOROOk WoO WORN Operation of Utility Comments: RUBA staff was informed that a member of the community completes the duties of the water operator. More training is needed and the individual is scheduled to attend the next available training. The utility has a preventative maintenance plan developed for the existing facility. The manager does not receive an operation and maintenance report as no operator is working regularly in the utility. The utility does - 128 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ee ee Rep OTE not have a safety manual and does not hold safety meetings for the operators and staff. The utility facilities have not suffered and major problems/outages due to management issues. The utility is currently operating at levels that are proposed, the school has not complained about service and residents have received enough treated water. The operator does not provide status reports because there is no regular operator and no records are being kept of any operator work that is completed. The utility has not distributed a Consumer Confidence Report (CCR) for the last year of operation, and the community is on the May 2010 SNC list for a Stage | violation. The utility does not maintain either an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff completed the RUBA assessment in April and will work with the community to create a plan of action to correct the current issues identified in the RUBA assessment. A meeting that included the VSW engineer from Anchorage occurred on June 28. After discussing RUBA assessment with the tribal council, VSW was able to get some action accomplished. With RUBA assistance a plan has been developed to help the utility meet all the essential indicators. - 129 - April — May — June 2010 4" Quarter SFY10 - RUBA Report ——— OE Eee ese’ Teller Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 256 Region: Bering Straits Local Governments: 2™ Class City Py Teller does not have a piped water/wastewater utility. "a, 04 During the summer, water is hauled from the Gold Run et 7 River (20 miles away) by the City water truck, and delivered to home storage tanks. In the winter, treated water is delivered from a large storage tank at the washeteria, or residents use melted ice from area creeks. A few residents use their own ATV's or snowmachines to haul water. The school operates its own sewer system. Sixty-seven residents and 15 businesses use honeybuckets, which are hauled by the City. A few homes and facilities have septic tanks. RUBA Activity This Quarter At the request of the city, Nome RUBA staff traveled to Teller to provide budget training for the city clerk and office aide. The City of Teller uses funds from DCCED's Community Revenue Sharing Program and Payment-In-Lieu-of Taxes (PILT) Program to subsidize the trash and honey-bucket haul services. RUBA staff also showed how to use a comprehensive monthly financial statement in Excel Spreadsheet format for financial reports to the city council and public. - 131- April — May — June 2010 4” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] All revenue and expenses for the utility are listed in the utility budget. & CO The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. & CO The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KX OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. OW’ HOLE Finances Comments: The city purchases heating oil from Teller Native Store. The city has a 300 gallon day tank that is filled up at least once every six weeks. The city pays for fuel oil and pays electric bills using funds from the Norton Sound Economic Development Corporations’ Community Benefits Share Program. The city has an FY10 budget, however, has not yet completed its FY11 budget due to a medical emergency with the city clerk's family. RUBA staff provided training for her to work on and complete a city budget, including the utility department's budget. Accounting Systems Essential Indicators Yes No (1 & The utility has adopted a collection policy and actively follows it. XK] The utility bills customers on a regular basis. & Anaccounts receivable system is in place which track customers and reports past due accounts Oo and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. (The Utility has a cash disbursement system that records how money was spent. RRAW Sustainable Indicators X OA chart of accounts is used that identifies categories in a reasonable, usable manner. Qi Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The city has not billed its trash and honey-bucket haul services. RUBA staff has recommended that the city clerk bill the customers so that the services can pay for themselves. The city has two operators to - 132- April - May — June 2010 4" Quarter SFY10 - RUBA Report collect trash and honey-bucket containers around the community daily, five days a week. The hours are as needed. Tax Problems Essential Indicators Yes No C1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. C1 The utility is current on filing tax reports. The utility is current on making tax deposits. [] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. hWew Tax Problems Comments: The city is current with its tax reports and deposits. Funds from the Norton Sound Economic Development Community Benefits Share Program were used to pay off all past due tax liabilities. The payments and reports have been confirmed with IRS and DOL. Personnel System Essential Indicators Yes No L] & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OC The utility provides training opportunities to staff as needed and available. O X Wk we O OO oO Personnel System Comments: The city still hasn't purchased workers compensation. RUBA staff has and still is recommending to the city to purchase workers compensation coverage for its employees. RUBA staff has recommended that the city 'shop' around and get quotes from at least three insurance and workers’ compensation providers for affordable and comprehensive coverage for its employees. - 133 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes | (1 The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). ir The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators [CL] & The utility has adopted an organizational chart that reflects the current structure. & UO The policy making body meets as required. & OC The utility complies with the open meeting act for all meetings. HeXwWOw OOOW Organizational Management Comments: The Teller City Council is very active with making sure the trash/honey-bucket haul services are run as well as possible. The utility services are on the city council meeting agenda each month, discussed and decisions are made for implementation. The city does not employ utility operator(s), since the Bering Strait School District treats the drinking water. Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & OC 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. 1 The utility maintains an inventory control list. (1 The utility maintains a critical spare parts list. KHHRXRX WO Oo Operation of Utility Comments: The city does not employ a utility operator, since the water treatment plant is owned and operated by the Bering Straights School District. The sanitation truck driver and the other sanitation worker took the sanitation truck to Nome recently to have it serviced. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the city clerk and city council to implement a computerized accounting system and to have the city clerk and office aide participate in the next RUBA-sponsored QuickBooks Pro training. RUBA staff will help drat a sample billing statement for the city to bill - 134- April — May — June 2010 4" Quarter SFY10 - RUBA Report customer for the trash and honeybucket haul services and help set up a record-keeping system for the sanitation customers. RUBA staff will also review collection strategies for the sanitation services. -135- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee Searrter SFYVI0- RUBA Report Togiak Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2007 Population: 787 Region: Dillingham Local Governments: 2™ Class City, od Water is derived from a well, is treated and stored ina a. 500,000-gal. tank. Approximately 125 households are PNB got connected to the piped water and sewer system installed in 1976; the remaining homes have new individual wells and septic tanks. Roughly 61 units with private wells and septic systems are in the Togiak heights subdivision north of the main village. In all, approximately 200 homes are plumbed and 14 lack plumbing. The water system is 25 to 30 years old however, trained public works staff continue to effectively maintain and renovate the system. RUBA Activity This Quarter RUBA staff traveled with the RUBA QuickBooks contractor May 25-28, 2010 to complete the second of three trips to Togiak as part of a RUBA contract that provides QuickBooks installation, training and support for the city's computer accounting system. The trips are typically 30 days apart and help to promote sustainability of the utility by creating a viable accounting system with which the staff can bill its customers and provide monthly financial reports to its governing body. During the visit, RUBA staff provided other assistance to the city administrator during the visit that dealt with personnel policies, pay raises, the budget and organizational questions. A briefing was given to the mayor of the accomplishments of the visit. RUBA staff traveled to Togiak on June 15, 2010 with the RUBA QuickBooks contractor for the third and final trip to complete the installation, training and support of the QuickBooks programs. As a result of the training, city staff have become very knowledgeable with the functions of QuickBooks in relation to their specific jobs. Time was spent making adjustments to accounts, addressing the 2% sales tax, updating files and addressing RUBA reporting requirements. The RUBA contractor is completing a customized manual of utility accounting procedures and that describes how to complete the day-to-day functions in QuickBooks. In May, RUBA staff met with the Bristol Bay Area Health Corporation Environmental Health Director to discuss funding and projects for the communities in the Bristol Bay region. A project is currently in the design phase: Togiak has ‘scattered sites' money and the project is close to construction, however Togiak is not meeting all essential indicators on the RUBA assessment. The project in place was discussed and the installation and training of QuickBooks will allow them to meet the accounting requirements of the management assessment. During this quarter several staffing changes have taken place, a new city administrator was hired and the utility clerk position changed. -137- April — May — June 2010 4" Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. y [] The utility has adopted a balanced.realistic budget. Qi Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & CO) The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 1 = The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. (1 YTD revenues are at a level equal to or above those budgeted. (] YTD expenditures are at a level equal to or below those budgeted. OA monthly manager’s report is prepared. (1 Budget amendments are completed and adopted as necessary. RRR Finances Comments: The FY 10 budget has been amended and adopted. Revenues are less than the expenditures. The city administrator provides a verbal operational report to the city council. For 2010, in addition to customer utility fees, revenue for payment of water/wastewater repair services to private households not connected to the public water/wastewater system is used to subsidize the utility. The city purchased sufficient diesel and heating fuel to get through until the fall barge. City gasoline supplies are also sufficient. Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. & The payroll system correctly calculates payroll and keeps records & CO Acash receipt system is in place that records incoming money and what it was for. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 138 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Accounting Comments: The city council serves as the utility's governing body and enforces the utility ordinance. Staff uses QuickBooks for bookkeeping including customer billing, accounts payable, and payroll processing. The city clerk supplements QuickBooks financial reports with spreadsheet-based financial reports that present monthly and year-to-date activity and balances for all city departments. The utility bills water/wastewater customers regularly and consistently and issues disconnection notices to non-paying customers. The utility also bills for repair and maintenance services rendered to residents with private water and wastewater located in the heights subdivision. City staff utilize QuickBooks for tracking accounts payable and accounts receivable. City staff reconciles bank accounts on a monthly basis. The city clerk and utility clerk maintain cash receipt and disbursement records and continue to share and improve coordination of QuickBooks data entry. Tax Problems Essential Indicators & C1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. & CO The utility is current on making tax deposits. ® O If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Utility staff use QuickBooks for payroll and payroll tax processing. The IRS Taxpayer Advocate Service advised that the city is presently in compliance with federal tax obligations. The Alaska Department of Labor (DOL) confirmed that the city is meeting Alaska ESC tax obligations for the time frame ending May 31, 2010. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators 1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. C1 The utility provides training opportunities to staff as needed and available. Xl O OO X wk ww Personnel System Comments: The city's workers compensation policy is purchased through AMLJIA. The Division of Worker's Compensation website shows that the policy was active on June 30, 2010. RUBA staff has a copy of the Employer Notice of Insurance form that expires on July 1, 2010. Utility staff abides by a well-written personnel policy and maintain comprehensive personnel files. The policy includes a written evaluation - 139- April — May — June 2010 4" Quarter SFY10 - RUBA Report and hiring process. Employee files are well maintained and contain I-9 forms and related documentation. New hires are placed on a probationary period and staff development and training opportunities are made available to all staff. Organizational Management Essential Indicators Yes KHRRRXRH No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. (1 The utility has an adequately trained bookkeeper. (1 The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators O y KJ The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: The utility enforces utility policy as outlined in city ordinance. The public works director oversees several programs and projects and serves as the utility manager. The city has a financial audit conducted annually. The primary bookkeeper also serves as the city clerk and is gaining experience and training to be effective in both positions. The utility employs a utility clerk to manage customer billing, vendor relations, and to provide sanitation project management support. The utility employs trained and certified water operators. RUBA continues to recommend an update to the water/wastewater ordinance and provided a sample ordinance published by the Regulatory Commission of Alaska (RCA). The city council meets as required and maintains an organization chart in policy. Operation of Utility Essential Indicators Yes | No (1 The utility operator(s) are actively working towards necessary certification. & OC The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X HRRKRER Ww 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. The utility has a safety manual and holds safety meetings. (1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. C1 The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: Utility operators possess necessary certification and participate regularly in operator training. The utility has a preventative maintenance plan and operators perform routine maintenance. The public - 140 - April — May — June 2010 4" Quarter SFY10 - RUBA Report works director works closely with Alaska Native Tribal Health Consortium engineers to obtain water/wastewater project funding. The utility has not suffered any major problems or outages due to management issues. The utility provided a copy of the Consumer Confidence Report for 2009 and it has been mailed to all customers. The public works director reports monthly at city council meetings, holds regular staff meetings and covers the topics of safety and day to day operational matters. The utility maintains an inventory control list, a critical spare parts list, and ensures parts remain available on the shelf for use when needed. RUBA Activities For The Coming Quarter RUBA will maintain contact with city officials and continue providing assistance upon request. - 141 - April — May — June 2010 4" Quarter SFY10 - RUBA Report White Mountain Activity Report Community Overview Lead RUBA Staff: Steve Brock, Nome Regional Office "2008 Population: 215 Region: Bering Straits Local Governments: 2™ Class City ef Water is derived from a well near the Fish River and is v eT cael treated. All households and facilities are connected to the piped water and sewer system. The new school was completed in August 2009 and is connected to the city's water and sewer system. The City has also requested funding to relocate the landfill. The current site is not permitted. The City is waiting on the Village Corporation to transfer the 1280 acres that will become the City's land site. Until this transfer is completed, the location of new landfill site cannot be determined. RUBA Activity This Quarter At the request of the White Mountain Mayor, Nome RUBA staff traveled to White Mountain on June 15, 2010 to conduct a RUBA management assessment. RUBA staff met with the city council to discuss RUBA assistance agreements and assessments. The council approved the agreement unanimously and the mayor signed said agreement. RUBA staff toured the water plant with the plant operator to become familiar with the layout of the system. The RUBA assessment was completed during the visit. The utility was found in non-compliance because it did not have a balanced budget. RUBA staff recommended adjustments to the chart of accounts and the budgeting process to easily allow the utility to become compliant. The city ordinances have not been updated and will require review and codification. It should be noted that the council and entire staff of White Mountain were very helpful throughout the on site visit. - 143 - April — May — June 2010 4 Quarter SFY10 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No 4) & & ® O ® O Xl All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & Xd & & X O The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The utility does not have a balanced annual budget. Budgeted and year-to-date revenues exceed expenditures. The utility still has a fairly large amount of past due accounts receivable from the water and wastewater residential customers. Most of the past due amounts are several years old and no efforts were made by the previous utility clerk to collect them. The city council is planning to take the past due accounts to small claims court to collect them. Accounting Systems Essential Indicators Yes No & C2 The utility has adopted a collection policy and actively follows it. HReRR Ww O The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. 2 a Hk tainab’ O le Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The utility clerk is proficient in the use of QuickBooks Pro. She bills the customers consistently and regularly. She is in the process of submitting the past due customers to small claims court. The utility clerk makes comprehensive monthly financial reports using QuickBooks Pro and Excel Spreadsheet. Payroll and payroll records are calculated and tracked using QuickBooks Pro. -144- April — May — June 2010 4" Quarter SFY10 - RUBA Report eee ert SET IO- RUBA Report Tax Problems Essential Indicators Yes No & C2 The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. & CO The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility is current with filing tax reports and tax deposits. All tax reports and electronic deposits are completed using QuickBooks Pro. Both the IRS and DOL have deemed White Mountain compliant at this time. Personnel System Essential Indicators Yes No & C1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ® The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. QR The utility provides training opportunities to staff as needed and available. Oo ® OW a O BO && Personnel System Comments: The utility is current with its payment of insurance and workers compensation coverage with the Alaska Municipal League Joint Insurance Association (AMLJIA). The utility does not have written job descriptions for all current positions. The utility uses a generic evaluation form for all it's employees, not one tied to the job description. The city clerk supervises the utility clerk who in turn supervises the utility operators. - 145 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. X The policy making body is active in policy making of the utility. 4) The policy making body enforces utility policy. Xl The utility has an adequately trained manager. & CO The utility has an adequately trained bookkeeper. & The utility has an adequately trained operator(s). & (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. & (1 The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city council is trying to enforce the utility policy; they have told the utility clerk to collect on the past due water and wastewater accounts. However, most of the past due amounts are over seven years old and are being purged. The utility clerk will take the rest to small claims court. The utility operators are currently certified at the level needed to maintain and operate the water and sewer utility. Operation of Utility Essential Indicators Yes No RX The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators [X]_ 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. C1 The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OKARX kw BwWOoOoOo Operation of Utility Comments: The utility holds safety meetings with and for its employees. RUBA staff recommended to the utility clerk that utility employees should attend AML/JIA sponsored safety meetings by teleconference. The manager does not receive a monthly operations and maintenance report. The utility does not maintain an inventory control list or a critical spare parts list. - 146 - April — May — June 2010 4"" Quarter SFY10 - RUBA Report a EO ee eee pore RUBA Activities For The Coming Quarter Nome RUBA staff will develop a work plan with the city to help the utility pass the essential and sustainable indicators that have not been met. A site visit will be scheduled for this coming quarter to assist the city with implementing the work plan. - 147- April — May — June 2010 4" Quarter SFY10 - RUBA Report - 148 - April — May — June 2010 4" Quarter SFY10 - RUBA Report nee ET DENIC = BUDA Report Non-RUBA Communities Adak Brice Eningowuk, LGS/RUBA, Anchorage Office On June 18, 2010 the Adak City Manager met with RUBA staff in Bethel provided documentation to confirm that six previously deficient essential indicators are now being met. The FY11 Budget was received on June 25, 2010 and the general fund and garbage budgets are balanced or have excess funds. The utility budget has a deficit, but there is a plan to address the deficit by increasing the customer fees and shutting down of a few lift stations. The city council has requested council training. The clerk attended a QuickBooks course in Anchorage from May 17-21, 2010. Information regarding the QuickBooks contractor hotline was also provided to Adak to avail them of technical support. The City Manager submitted his resignation on June 29, 2010. The manager will continue to provide assistance with grants and funding opportunities until the city fills the position. RUBA staff was scheduled to travel to Adak on July 18-22, 2010; travel was then canceled at the request of the Mayor. Plans to reschedule are in effect. Ambler Margaret Hansen, LGS/RUBA, Anchorage Office Kotzebue RUBA staff travelled to Ambler in May to provide training to the council and staff on budgeting, certified financial statements, monthly financial reporting and bank reconciliations. The budget and monthly finance reports are essential indicators of the RUBA management assessment. During the quarter RUBA staff also provided assistance via phone, email and fax on fuel usage and cost for the water plant this fiscal year. RUBA staff also, read through the city's sales tax ordinance on elder exempt status for electric and water and sewer bills, and reviewed with the administrator a letter she received on federal audit requirements. The requirements for an audit were explained: there is no need for an audit since the city did not receive more that $500,000 in one fiscal year to trigger an audit. RUBA followed up to ensure the monthly water and sewer rate and customer agreement and policies are reviewed, and to make sure that the operators follow through with homeowners being responsible for any service line problems that arise from the main thorough the home and bill them accordingly. Anchor Point Earl Gibson, LGS/RUBA, Anchorage Office Anchor Point continues to comply with RUBA essential indicators, including federal tax requirements. Anchor Point Energy LLC will be completing a natural gas line to transport gas north to Ninilchik in 2010. Anchor Point has an active water utility that could run the project for the community. Having natural gas in the community will be an economic incentive for other business and households to locate there. The community anticipates that the cost for natural gas would be significantly less than other forms of energy; therefore, fewer families would rely on energy-heating assistance, a win-win situation for all involved. RUBA staff will continue to follow-up with the community on this project. - 149 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Chignik Lake Barbara Higgins, LGS/RUBA, Dillingham Regional Office RUBA staff conducted a QuickBooks Class in Anchorage this quarter. The Chignik Lake administrator attended and successfully completed the week long training. A great deal of effort has been put in by RUBA staff to assist Chignik Lake with returning to compliance with the Power Cost Equalization (PCE) program. Continued work by a CPA and administrator on the lien issues has been underway. RUBA has been working with the CPA and the Lake and Peninsula Borough regarding the challenges the community is having with the electric utility billings. The water/wastewater project is still pending awaiting meeting all RUBA essential indicators. The biggest issue is the tax liens. The Village Council entered into a new Consolidated Financial and Managerial Services Agreement with the Alaska Rural Utility Collaborative (ARUC) on 06/03/10. Diomede Leroy Seppilu, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to Diomede with personnel from Military and Veterans Affairs personnel to meet with some of the Diomede city and tribal council members. The purpose of the trip was to discuss the lack of passenger services during summer or when an ice airport is not available because ice is not thick enough. While there, RUBA staff made attempts to meet and talk with the Diomede Joint Utilities manager, Gabriel Ozenna about sanitation issues. RUBA staff was not able to meet with him due to.time constraints, but did talk with the mayor about sanitation issues. A short tour was made of the washeteria, and the water tank in which treated water is stored for the watetreria and for sale to the local school. There is also a watering point where residents can get treated water to carry home. Elim Steve Brock, LGS/RUBA, Nome Regional Office The City of Elim emailed a copy of the newly completed financial report with the inclusion of financial reports from July 2009 to March 2010. The new format was introduced to the city several months ago by RUBA staff. The QuickBooks monthly finance report format is not inclusive enough and a sample format exporting information to an Excel spreadsheet had been recommended. The city clerk is adapting the new format successfully. With the submittal of the monthly finance reports, Elim now meets all essential indicators. Grayling Fred Broerman, LGS/RUBA, Bethel Regional Office On June 23, 2010 Bethel RUBA and a Fairbanks grants administrator traveled to Grayling. Bethel RUBA staff met with city staff to explain the specifics of the land settlement using detailed maps and explained parliamentary procedures, public notices, and public hearings required to pass a non-code ordinance regarding the ANSCA 14(c) (3) land settlement. City staff also discussed concerns about the water treatment plant and faulty water mains and service lines. Some residences have been without running water since November 2009. The mayor requested assistance with providing training to local water operators to obtain required certifications. Grayling was a charter member of the Alaska Rural Utility Collaborative (ARUC) however the membership was terminated in June 2009. The City of Grayling is now responsible for all utility management and operations. - 150 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Kake Lawrence Blood, LGS/RUBA, Juneau Regional Office On June 21-25, 2010, the QuickBooks contractor sponsored by RUBA funds, traveled to the City of Kake for the final of three community training visits. The QuickBooks contractor has completed the accounting system reconfiguration and staff training for the QuickBooks accounting system. The QuickBooks technical assistance and staff training has substantially increased the local government's capacity in the area of financial management. The city can receive future QuickBooks support by contacting the RUBA sponsored QuickBooks Hotline. RUBA staff receives monthly finance reports from Kake which indicates that the collection rate has increased from 17% to 83% in the six months during which onsite assistance has been provided the QuickBooks contractor and RUBA staff. Kaktovik Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Kaktovik on April 5-6to provide financial training to the new clerk. The city uses a combination of QuickBooks, Excel and manual reports for record keeping which creates a redundant process. The process is good for identifying errors, but it causes simple tasks to be time consuming. The city is not using QuickBooks to its fullest extent. The clerk was encouraged to attend the RUBA funded QuickBooks class during the week of May 17 in Anchorage. The bookkeeper and the mayor both scheduled for one-on-one training in Anchorage with the QuickBooks contractor, however the mayor traveled to Anchorage and did not contact the trainer while the bookkeeper did not leave Katovik. Other areas of RUBA assistance provided while on site in Kaktovik included assistance with grant reporting and reimbursement, creating the FY11 budget, ordinance processes, creating agendas, and writing meeting minutes. Kiana Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Kiana in June to provide onsite training and assistance to the council and staff on financial management and budgeting. The May 2010 monthly finance report required revision after reconciliation was completed. RUBA and Kiana staff also closed out the federal economic stimulus grant, updated the workers compensation policy, and processed a fuel order and price information which they used to apply for an Alaska Energy Loan. RUBA staff also reviewed the city ordinances to assist in amending the organizational chart. RUBA staff also contacted the city regarding budgeted amounts for fuel and gas that shows a $264,000 surplus at the end of FY11. The city's goal is to save enough funds to purchase fuel next year to prevent having to take out a loan and pay interest. Kotzebue RUBA was also contacted by the city to discuss staffing needs, local option board advice and to request on site assistance. The administrator stayed in Kotzebue an extra day after attending a week long Financial Management for Rural Utilities class held in Kotzebue for help with her budget. -151- April — May — June 2010 4 Quarter SFY10 - RUBA Report Klawock Lawrence Blood, LGS/RUBA, Juneau Regional Office The city clerk successfully completed a 32-hour Utility Clerks class held in Klawock, April 19-23, 2010. The course was co-sponsored by the City of Klawock and the Division of Community and Regional Affairs' RUBA program. The Utility Clerks class is designed to build skills, knowledge, and capacity associated with the safe and efficient operation of water and sewer utilities in rural Alaska. RUBA staff assisted with the repair of the Wastewater Control Unit. The computerized control system used to automate the Klawock's wastewater treatment process and maintain safe environmental conditions inside the treatment plant was out of service and needed to be repaired-by.Boreal.Controls Inc. located in Juneau. The computer contained critical control programming and was vital to the operation of the treatment plant. RUBA staff was informed of the problem while in Klawock on other business but offered to take the control unit and personally deliver it to Boreal Controls saving the utility shipping costs and most importantly, reducing the turn around time in getting the system repaired and the wastewater treatment plant back online. Kobuk Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Kobuk in June to provide on site training and assistance regarding budgets and financial reports as well as a Federal Economic Stimulus grant, Community Development Grant, and the Kobuk Valley Electric Company annual report to the Regulatory Commission of Alaska report. Training was also provided to the staff and city council on drafting and adopting the FY11 budget. During the quarter RUBA staff provided assistance in coordinating a teleconference call to get the Community Development Block Grant under agreement by including Alaska Energy Authority (who owns the tie line from Shungak), Alaska Village Electric (who sells the electricity to Kobuk), the Northwest Arctic Borough School District, grant staff and RUBA to discuss the project and get advice to make sure the generator is the right fit for the community with all safeguards in place. Kotzebue RUBA staff also assisted in completing monthly financial reports by fixing all formula problems and providing training to the administrator. Koyukuk Brendan Smyth, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to the community April 26-28 and assisted with addressing the Organizational Management indicators. RUBA staff assisted the temporary administrator in finding a copy of the city’s Code of Ordinances. RUBA staff also assisted in organizing the city office and figuring out the city's financial situation. A new administrator is traveling to the community from Arizona and will begin the position on May 24. RUBA staff will continue to assist the current administrator with any questions concerning the work required. RUBA staff researched the lack of charges to the school for water/wastewater in the last seven months. RUBA staff and city staff were able to find the necessary paperwork stating they could operate the utilities. Fairbanks RUBA staff will continue discussions with the community and strive to meet the new administrator in Fairbanks before she heads to the community. A follow up on site trip will be scheduled next quarter. - 152 - April — May — June 2010 4" Quarter SFY10- RUBA Report rs aa eee nn UCP OTE Mountain Village Ken Berlin, LGS/RUBA, Bethel Regional Office Bethel RUBA staff traveled to Mountain Village June 1-2, 2010 at the city's request to attend a city council meeting. RUBA staff has been assisting the community with a petition to change the local option law. The community currently prohibits the importation and possession of alcohol. The signed petition seeks to legalize importation and possession but not local sale. While in White Mountain, RUBA staff worked with the bookkeeper to update monthly finance reports which are a required element for RUBA assessments. The City has a balanced FY 10 budget on file and finance reports were completed through February. Monthly finance reports from March - June 2010 are required. RUBA staff received a budget amendment for the FY 10 budget. The new bookkeeper worked for the city previously and has returned to the position. Napaskiak Eli Jacobson, LGS/RUBA, Bethel Regional Office On May 25, 2010 RUBA staff attended a city council and utility board work session in Napaskiak concerning personnel policies. The city owns the electric utility. The utility is overseen by a three member advisory board. The problem is that both the city and the utility worked on two separate personnel policies. The policies were the same except for the staff members mentioned in the policies. RUBA recommended the two policies be combined into one. RUBA staff also explained the roles of advisory boards and that all city policies and other major decisions are acted upon and passed or rejected only by the city council. In addition, RUBA staff received a balanced FY 10 budget, and finance reports up to February 2010. RUBA will assist staff in completing the March - June monthly finance reports. Nuiqsut Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Nuiqsut in April and June to assist the city with codifying its ordinances and assuring that the utility ordinance is complete. The visits were prompted, in part, by a meeting with the City of Nuiqsut attorney who stated that there are multiple, conflicting, versions of the city code at city hall and that some are questionable. City services, authority, and billing and collection procedures may be questioned without proper ordinances in place. During the on-site visits, RUBA staff assisted with codifying the ordinances and provided general assistance training. The code is now current and both the city and RUBA have an identical version which will give the two entities a more efficient working relationship. A second issue addressed by RUBA staff was training on the use of a Memorandum of Agreement between the city and Native village. Joint city and borough projects for the future were identified, and personnel issues, such as retention and absenteeism were discussed. The city also asked for information regarding the differences between mayor, manager, or administrator forms of government. - 153 - April — May — June 2010 4" Quarter SFY10 - RUBA Report Pilot Point Barbara Higgins, LGS/RUBA, Dillingham Regional Office During the quarter RUBA staff provided assistance with budgets, personnel issues and QuickBooks. Village Safe Water has a project started in the community that replaces wells, septic tanks and leech fields. The city has had staff turnover this quarter. The city clerk resigned and the position is currently posted and being filled by temporary assistance. Half a year of fuel tickets and billings have not been entered or send out to the customers. Temporary staff are trying to catch up on the billing, on past due tax liabilities and deposits, and on bank reconciliations. RUBA staff continues to encourage contact with the RUBA QuickBooks contractors. The city administrator has amended the FY 10 budget and is moving forward with the FY11 budget. There has been quite a bit of construction and projects in the community, including BLA road projects and the VSW project for septic tanks and wells. RUBA staff has nominated the city for the grant for QuickBooks installation, training and upgrades to the current QuickBooks software. RUBA staff is encouraging the city to enter into the RUBA agreement that provides quarterly visits: this would greatly assist the city with a work plan back on track with the duties of the clerk's office and to provide continued assistance with financial management. Point Hope Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Point Hope April 27-29, 2010. The purpose of the trip was to train the new mayor on how to include all revenue and expense line items connected to the installation of water/wastewater to the city office building. Additional on site assistance included preparation to qualify for community revenue sharing and how to complete the application for the Federal Community Economic Stimulus funds. RUBA and city staff reviewed the Non-NPRA grant budget which included a project for repairs to the city office structure and which will provide water/wastewater hookup. This process was discussed with city council members also during a council workshop on financial issues. - 154 -