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HomeMy WebLinkAboutRural Utility Business Advisor Program RUBA Quarterly Report Jan 1 - March 30 2010Rural Utility Business Advisor Program RUBA Quarterly Report January 1 - March 31, 2010 Third 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 January | — March 31, 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 January 1 through March 31, 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). The New Year brought new beginnings to a few staff members and created job openings in Bethel, Dillingham and Anchorage. After five years of valuable service to RUBA, Ralph Andrew, Dillingham LGS, resigned. Anchorage RUBA Julie Dirks also submitted her resignation after accepting the position of Atka City Administrator. Fred Broerman accepted the Bethel position of LGS II/RUBA and began work on January 19, 2010. Fred has lived in Bethel for nine years and worked for the Fish and Wildlife Service. His position included travel and assistance to all regional communities where he developed working relationships with community leaders and governing bodies. This assistance often included providing technical assistance and presentations of sometimes controversial subjects. Brice Eningowuk began work March 16, 2010 as an LGS II/RUBA in the Anchorage office. Brice most recently worked for Kawerak, Inc. as a Village Transportation Planner in Shishmaref. In that capacity, he provided facilitation and technical support to the Shishmaref Erosion and Relocation Coalition while coordinating with state, federal, and non- governmental agencies. He has also been employed by the Native Village of Shishmaref as an Environmental Program Manager. Brice is assigned to work with communities in the Aleutians and on the Alaska Peninsula as well as the road system north of Anchorage. RUBA Program Scope of Report Steve Brock accepted the Nome LGS II/RUBA position and began work on March 23, 2010. He will support Leroy Seppilu in providing technical, managerial, and financial assistance to local governments that provide sanitation services in the Nome region. Steve has lived in Nome and traveled to every community that the Nome regional office provides assistance. His prior networking and successful intergovernmental relationships will be a great asset to his new position with RUBA. He also brings a strong background in providing adult trainings and presentations. Two vacancies in the Bethel RUBA office occurred this quarter. Susan Charles vacated her position in January and Flora Olrun resigned in February. While one position was filled, recruitment continues for the other. 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 administered by 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. RUBA staff has stepped into the role of assisting those communities who are using the PCE funds to subsidize sanitation power expenses. Many of the 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 quarter, RUBA staff helped Chalkyitsik, Chignik Lake, Kobuk, Larsen Bay, Port Heiden, Saint George and Stevens Village. As an example of this assistance, Larsen Bay was able to return to compliance and receive $4,661 for two months submission of correct reports. Coordination/Communication Alaska Forum on the Environment: Anchorage RUBA staff participated in a session at the Alaska Forum on the Environment February 9, 2010. The forum addressed development of fee and collection systems for solid waste utilities. The recently developed Water Rate Calculator Guidebook was presented and the rate calculator was demonstrated for the group. RUBA staff also showed the group how the calculator can be used to structure fees for other services such as the landfill. Other speakers presented current fee structures in Nondalton, Chignik, and Igiugig as successful examples of how collections of fees for solid waste are working in their communities. Alaska Municipal League (AML): On February 10, 2010 the RUBA program manager and AML employee Ray Gillespie met with the AML Board of Directors to discuss a possible collaboration for presenting rural elected officials training. The RUBA program developed and presents elected officials training to rural communities with a population of 1,500 or less. These communities must provide the sanitation services and has a governing body who serves as the utility board. AML is exploring the idea of seeking funding to expand the training offered to rural communities to those who do not currently provide local sanitation — — = ee RUBA Quarterly Report — 3rd Quarter SFY10 -2- RUBA Program Scope of Report and/or communities of more than 1,500 population. RUBA and AML working in cooperation would promote a consistent training format across the state. Alaska Municipal League Joint Insurance Association (AMLJIA): The AMLJIA held an annual Risk Management conference in Anchorage February 1-3, 2010. RUBA was invited to give a presentation on the role management plays in safety. The RUBA management assessment is a tool to measure capacity in rural communities prior to receiving construction funds for sanitation projects. The assessment includes an indicator requiring management to ensure safety meetings are held and that an adopted safety manual is provided to all employees. In small communities with only one or two employees, alternate methods of meeting the safety meeting requirements were discussed. In addition, one of the essential indicators is that the entity has current workers compensation insurance. Both of these indicators are necessary for capacity. Juneau RUBA staff met with AMLJIA in January to discuss workers compensation insurance compliance. Workers compensation coverage is compulsory by State statutes, is a RUBA essential management indicator, and is a requirement to receiving state and federal grant funds. Discussion centered around increasing the awareness of municipalities in the importance of being adequately covered on a continual basis. 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 was 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 31, 2010 of 98%. RUBA and ANTHC also calculated the collection rate for Larsen Bay which is a community with a signed RUBA 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. 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. Alaska Water Wastewater Management Association (AWWMA): Juneau RUBA staff participated in a planning teleconference for the 50" Annual Statewide Training Conference for Alaska Water Wastewater Management Association (AWWMaA). The conference will be held in Sitka May 3-6, 2010. For four days, water and wastewater staff will be provided an opportunity to receive continuing education units (CEU) required for maintaining their water and wastewater operator certificates. Presentations and classes are organized into four learning tracts: Regulatory, Water, Wastewater, and Utility Management to focus the training efforts. RUBA Quarterly Report — 3rd Quarter SFY10 -3- RUBA Program Scope of Report Department of Environmental Conservation (DEC): 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. Environmental Protection Agency (EPA): The EPA Project Officer Martha Barber met with the RUBA Program Manager to discuss continued funding requests. Currently EPA funds 18 FTE positions that 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 meeting on January 6, 2010 was to discuss current services and to outline a sustainability plan for RUBA as the EPA funds decrease over the next five years. Ms. Barber also reminded the program manager of the grant criteria stating that RUBA assistance must be tied directly to creating and promoting managerial services in the rural sanitation service area. Internal Revenue Service (IRS): In the course of completing a RUBA management assessment of a rural municipality, RUBA was authorized to conduct an IRS compliance check. The information received from that compliance check revealed findings of non- compliance. The city administrator authorized RUBA to contact the Taxpayer Advocate’s Office to discuss a remedy to the situation. Following advice received, RUBA staff assisted the city in drafting a letter explaining the circumstances that created the problem and requested that the IRS waive the late filing penalties. The IRS initially responded by placing a hold on the account where no enforcement actions would be taken. On January 22, 2010, the IRS notified the city and RUBA that the city’s request to abate $26,000 in penalties was granted. Upon written notice of the action, this community will now meet all tax essential indicators for the RUBA assessment. Multi-Agency Meeting: RUBA staff attended a multi-agency meeting March 19, 2010 to discuss an incident report regarding the freeze-up of the water system in the community of St. Mary’s, which occurred January 8, 2010. Also attending the meeting were representatives from the City of St. Mary’s, State Emergency Coordination Center, DEC Remote Maintenance Program, Alaska Native Tribal Health Consortium, and the Office of the Governor. The St. Mary’s city manager reported that approximately $88,000 has been spent so far in thawing and repairing the system; however, he expected that the total cost will reach $100,000. He was concerned about the impact of this unplanned expense on the city’s finances and has been looking for sources of funding to ease the financial burden it has caused. The city was complimented on their response to the situation but since repairs were well underway before the Division of Emergency Services was called, they are unable to respond. The state is holding approximately $200,000 in Community Revenue Sharing and PILT payments and is awaiting receipt of a FY08 audit prior to releasing the funds. RUBA = —— = — Se RUBA Quarterly Report — 3rd Quarter SFY10 -4- RUBA Program Scope of Report staff will assist St, Mary’s staff in completing this document. A RUBA management assessment was completed last year and was briefly discussed. The city manager agreed to meet with RUBA staff to discuss how to correct the deficient indicators to ensure that the funded project moves forward on schedule. Regulatory Commission of Alaska (RCA): In January, RUBA staff participated in hearings regarding the regulation of electric services in Adak. The provision of electric service in Adak may soon become a rural energy emergency. The RCA held a hearing to investigate what solutions could be offered to supply grant funds quickly for new generation and distribution systems for the Adak electric utility. Taking part in the hearing were representatives of the temporary electric service provider, TDX Adak Generating LLC, the Aleut Corporation, RUBA and the City of Adak. The city was unable to provide reliable electricity with the obsolete and oversized equipment left by the military. TDX Adak Generating LLC took over power production in December 2008. TDX has been able to restore reliable power, but at a substantial financial loss which it can no longer sustain. The system needs a new diesel plant, sized for a smaller community and sited to take advantage of waste heat recovery opportunities presented by larger community buildings. The distribution system also needs to replace unreliable components that pose safety hazards. In the long run, there is potential for development of wind and hydro sources for electric generation. However, in the short term there is an immediate need for funding to solve Adak’s energy problems before it becomes a life and safety crisis. Southeast Alaska Regional Health Corporation (SEARHC): Juneau RUBA staff presented program information during a two-day rural Sanitation Deficiency System (SDS) planning meeting held in Juneau March 29-30, 2010. Other participants included representatives from Southeast rural communities, Alaska Department of Environmental Conservation (ADEC), Alaska Native Tribal Health Consortium (ANTHC), Village Safe Water (VSW, Remote Maintenance Worker (RMW) program, and SEARHC Environmental Health. The meeting objectives were to discuss how to maximize scoring for SDS funding. RUBA staff facilitated a discussion among the participants about community experiences managing utilities, current conditions, and identifying areas where communities need additional assistance or training. Southeast Conference Summit Meetings: RUBA staff attended the Southeast Conference mid-session summit meeting in Juneau in March. Southeast Conference members, including municipalities, Native corporations, village councils, regional and local businesses, civic organizations, and individuals from throughout the region met to discuss legislative priorities with their respective legislators. The topics discussed during the meetings centered on regional transportation, timber, energy, fisheries, tourism, economic development and sanitation infrastructure. Technical Assistance Providers (TAP): RUBA staff participated in a meeting with other rural sanitation professionals on February 10, 2010 to provide an intensive, coordinated, and ongoing technical assistance program 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 = = — = ee —=—— = RUBA Quarterly Report — 3rd Quarter SFY10 -5- RUBA Program Scope of Report receiving assistance from the group; these water systems include Gambell, Scammon Bay, Tununak, and Hydaburg. Village Safe Water (VSW): In January, Anchorage RUBA staff attended a meeting with VSW Engineer David Longtin and representatives from Kachemak Selo, Inc. The meeting was to view presentations made by three businesses wanting an opportunity to work on the water system to be constructed in Kachemak Selo. RUBA staff participated in the evaluation process of the presentations and recommendations of who .may.receive the contract. Anchorage RUBA staff also attended a VSW meeting regarding the progress on an itemized listing of construction tasks needed to complete the Voznesenka Water Plant. Village Safe Water Engineer Lynn Marino contacted the RUBA Program Manager in February to state her appreciation of assistance provided by the Nome RUBA staff to Teller. Last fall, Teller was not meeting essential management indicators, did not have a functioning city council, experienced a fuel shortage, the workers compensation insurance coverage was cancelled and the city had not provided honey bucket haul service for nine months due to lack of equipment and labor. VSW and RUBA outlined a work plan for the community and RUBA has made several trips to provide onsite assistance. There is now an actively involved city council, a dynamic city clerk and the community has honey bucket haul service reinstated. The VSW engineer credited and thanked Nome RUBA staff for his part in that transformation. Performance Goals Publications: A majority of municipalities providing the sanitation services do not have utility boards that make fiscal decisions. The local elected body serves as the utility board and has the authority for all management of the utility. To assist these elected officials, the publication Municipal Election Questions was recently updated and published. Along with some basic reorganizing and editing, RUBA included additional scenarios developed as a direct result of the last election season in October and November 2009. This newly updated version, dated January 2010, will soon be available electronically on the RUBA web page under publications. Staff Development: Staff teleconferences were held in January and March to introduce new RUBA staff and discuss staff roles and responsibilities. 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 51 trips to 28 communities during the second quarter of SFY10. Thirteen RUBA staff plus one part-time materials development RUBA staff traveled this quarter for a total of 162 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 RUBA Quarterly Report — 3rd Quarter SFY10 -6- RUBA Program Scope of Report utility work plans, attending community planning meetings, and assisting in the development of cooperative agreements between city, tribal, and community entities. Management Assessments and Follow-up Assistance: Nine RUBA management assessments were completed this quarter. Of the current 163 RUBA assessments, 60 are meeting 100% of the essential capacity indicators. 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 hotline. 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 1 through March 31, the helpline assisted 23 communities with 74 calls and the Internal Revenue Service with two calls. In addition, the utility clerk from Pilot Point traveled to Anchorage and met with the hot line contractor twice regarding billing issues in January. The helpline contractor also provided onsite assistance to Pilot Point on March 1-3, 2010 and onsite assistance March 3-6 to Port Heiden. Various RUBA staff traveled with the QuickBooks contractors to Old Harbor in January, Galena and Kake in February and Galena, Kake and Togiak in March. These trips were to provide QuickBooks conversions, installs and utility onsite training with accounting procedures. The contractors and RUBA staff will continue to work with utility staff to ensure that the QuickBooks file is customized to the community’s need and that the treasurer and utility clerk are trained properly. The QuickBooks contractor also completes a customized desktop procedure manual for each community after the third and final site visit to the community. RUBA Quarterly Report — 3rd Quarter SFY10 =F-— RUBA Program Scope of Report Training Classes Presented Fairbanks: On February 8-11, 2010 RUBA Fairbanks staff provided a 32-hour Introduction to Utility Management training in Fairbanks. This workshop is part of a series designed to promote effective management and sustainability for water/wastewater systems in rural Alaska. The workshop was sponsored by the Rural Utility Business Advisor Program in cooperation with the Tanana Chiefs Conference Office of Environmental Health. Ten participants representing city and tribal governments.-owning and operating water wastewater utilities in Alatna, Beaver, Hughes, Nulato, Noatak, Ruby, Tetlin, and Tanacross completed the course. Dillingham: RUBA staff presented the Clerk Management for Rural Utilities 32-hour course in Dillingham January 25-29, 2010. Ten students from Aleknagik, New Stuyahok, Ekuk, Goodnews Bay, Manokotak, Pilot Point, Dillingham, Egegik, Chignik and Togiak participated in the class. The material addresses tasks a utility clerk participates in and presents the relationship the clerk has with the customers, management and governing body. 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. This quarter, RUBA provided reimbursement to utility staff who attended the Clerks Management for Rural Utilities and Introduction to Rural Utility Management courses. The training funds require attendance and participation in the complete course prior to reimbursement being issued. Reimbursements for a total amount of $9, 360.54 were awarded to 11 rural utilities. = = = —— = a ae <== = RUBA Quarterly Report — 3rd Quarter SFY10 -8- RUBA Program Activity Map January 1 through March 30, 2010 Gakona Galena_ Golovin _ Goodnews Bay Holy Cross | Houston Hughes _ : _Kachemak Selo sake /Quinhagak Spb Soe Stevens Village | Tanaeross | ‘Teller 'Tetlin | Thome Bay _ | Togiak | Venetie I _ Vozneseka |Shishmaref ze 1 Falsé Pass rn RUBA Program Activity Map January 1 through March 30, 2010 January — February — March 2010 34 Quarter SFY10 - RUBA Report —_—_———— eee eee pore Table of Contents Akiachak TRA,.......csccscsssssssssssscsssscsscssesssssscesseesecssesessessessesssssessssssssessessessessacsenseseecens 7 Alakanuk........ Chalkyitsik.. Emmonak.... Hooper Bay. Kwigillingok..........sccecsssessessecsssesssesssssssssssssssssssesssessssssssesessecassececassecsesesecsesecaeseceesesess Larsen Bay......ssscsssecesesssrcssssssssesssssssessscsssssesssessssssssssssesssesssesececesscacsesesesesscassrseseseeees Nikolai... Nulato.... Pelican.. Port Lions Selawik.... January — February — March 2010 34 Quarter SFY10 - RUBA Report Table of Contents Non-RUBA Communities Holy CrS8........scssssssecesssssssssescscecsssscsssssssssssssssssssssnscesssesesesessessseseseres Kackemak Sel0.......scsccssssssssssssscssssccsssscssssssscessasescesessacessscecesesceees Napaskiak ...... Nelson Lagoon.. Port Heiden... Stevens Village.. January — February — March 2010 3” Quarter SFY10 - RUBA Report Community Activity Reports Third Quarter SFY10 January 1 — March 31, 2010 January — February — March 2010 3” Quarter SFY10 - RUBA Report Akiachak IRA Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2007 Population: 644 Region: Lower Yukon Local Government: Tribal Council ed Akiachak Native Community-IRA (ANC) operates the ; Pete, AP 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 RUBA staff traveled to Akiachak on February 22, 2010 and conducted a RUBA management assessment with ANC's administrative and finance staff. Subsequent to our visit numerous phone conversations and email exchanges occurred between RUBA staff and ANC's administrator, business manager, accountant and bookkeeper to resolve essential indicator issues. The report that follows reflects information provided by ANC as of April 1, 2010. Bethel RUBA staff also contacted the IRS concerning Akiakchak IRA Council's IRS tax problems. The community is listed on the December 2009 Lien Watch report. There is verification of a recent payroll tax deposit made by ANC, however the IRS states it did not cover the payroll liabilities due. In addition the payroll tax deposits have not been paid for the first quarter of 2010. ANC is working with the IRS to settle all unpaid payroll tax liabilities and planned to do this with gaming revenues. ANC currently does not hold a gaming permit. Gaming reports and taxes for a previous permit were not filed nor paid since 2002. The IRS filed a levy and is considering additional levies and penalties if these issues are not addressed by ANC. Bethel RUBA staff will facilitate a meeting with the IRS and ANC to draft and adopt a repayment plan. Sanitation construction funds are on hold until the IRS issue is settled. January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] All revenue and expenses for the utility are listed in the utility budget. I 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. 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. KK YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: ANC's FY 2010 budget and monthly financial statements do not include expenditure line items for: Payment schedule for their past due electric bill to Akiachak Limited; Projected fuel costs payment schedule for back taxes to IRS; Payment schedule for back gaming fees (2006-2009) to Alaska Department of Revenue; Payment schedule for their past due account to Crowley Petroleum Distribution for their 2009 fuel purchase; and Payment schedule for ANC's outstanding balance to Akiachak Bulk Fuel Tank Farm for its share in the farm's operational and maintenance and renewal and replacement costs. ANC's 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. However, these financial reports did not provide, as mentioned above, adequate detail to determine if the utility can be run without a deficit. ANC's 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 also need to be consistently documented in minutes of tribal meetings and a copy of the reports forwarded to RUBA's Bethel office. RUBA staff contacted Akiachak Limited (the community's electric company) on March 5, 2010 which indicated that ANC had made a payment to their account on January 26, 2007, however their remaining balance was four times the amount of their average monthly bill. Monthly electric charges for ANC's water and sewer plant are 50-60% of the tribe's total bill. Part of the delinquency is due to ANC's refusal to pay waste heat charges for their water treatment plant despite having a contract to do so. ANC's administrator informed us that they 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 their account. Crowley also indicated that they had not been contacted by ANC regarding the outstanding bill. The tribal business manager informed RUBA that ANC did not qualify for a bulk fuel loan from Alaska Energy Authority due to not having a current State of Alaska gaming permit. RUBA contacted the Department of Revenue regarding this matter and was informed that the tribe had not had a gaming permit since 2006 and was responsible for paying state gaming fees for the years they continued gaming without a permit. As of this writing, the tribe has contacted the Department of Revenue and is attempting to get into compliance. ANC also has a -8- January — February — March 2010 3” Quarter SFY10 - RUBA Report significant outstanding balance to the Akiachak Bulk Fuel Tank Farm for its share in the operational and maintenance and renewal and replacement costs of the plant. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. KX OF The utility bills customers on a regular basis. KX CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. Xl |_| An accounts payable system is in place. X 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. kl OO 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. & CO Monthly bank reconciliation’s have been completed for all utility accounts. Xi [] 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: ANC's accounting is done with QuickBooks Pro and they are on a calendar year fiscal cycle. Their 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 RUBA files in Bethel. ANC's water and sewer accounts receivable aging report showed only small.amounts owed to the utility 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 being entered into QuickBooks. ANC provided RUBA with December 2009 and January 2010 bank reconciliations for their water and sewer account. An example of a typical purchase order and invoice was provided for the purchase of safety glasses from California Contractors Supply. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. QR The utility is current on filing tax reports. QR 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: A signed repayment agreement dated March 31, 2010 is in place for past due IRS tax liabilities. ANC is now in compliance with all federal gaming filing requirements through February 2010 and Quarterly Employment Tax filing requirements through December 2009. As of this writing ANC does not have a State of Alaska gaming permit and is not current on the fees owed to the Department of Revenue for gaming activities conducted without a permit from 2006 through 2009. The tribe has contacted the Department of Revenue and is attempting to get into compliance. On March 5, 2010 RUBA verified that ANC was current on State of Alaska Employment Security Compensation taxes for the fourth quarter of 2009. January — February — March 2010 3” Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No X 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. X 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. 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. X The utility provides training opportunities to staff as needed and available. Him O Personnel System Comments: ANC currently has workers compensation coverage with Liberty Northwest Insurance Corporation through March 27, 2011. A copy of the policy is in Bethel RUBA files. A copy of Akiachak Native Community Personnel Policies adopted June 15, 2004 is on file with RUBA. Job descriptions for their tribe's 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 administrative staff also provided Bethel RUBA staff with two examples of their 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. However these evaluations were generic in nature and not directly tied to the employees' job descriptions. Organizational Management Essential Indicators Yes No Ri [] 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. & O The policy making body enforces utility policy. X The utility has an adequately trained manager. X The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). Xi 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. Xl The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. -10- January — February — March 2010 3” Quarter SFY10 - RUBA Report Organizational Management Comments: Akiachak Native Community 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 tribal 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 lead water and sewer operator currently has an Operator in Training (OIT) certificate 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. a a ‘ . Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators XxX 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. XX] 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. 1 The utility maintains an inventory control list. XK] The utility maintains a critical spare parts list. OOOkRRR w Operation of Utility Comments: A preventative maintenance plan is on file with Bethel RUBA. 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 their FY 2010 budget and monthly financial reports so they reflect a complete financial picture of the ANC's water and sewer utility. When these issues are resolved and ANC provides verification of gaming permit and payment of back gaming fees for 2006 to 2009 the finance essential indicators will be re-evaluated. -ll- January — February — March 2010 3” 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 ed 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 and monthly finance reports are not being completed; both documents are required to pass a RUBA management assessment and be able to access sanitation grant funds. In February 2010, Bethel RUBA staff received a letter with a notice of cancellation from the insurance broker who provided workers compensation insurance coverage for the City of Alakanuk. 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 their insurance coverage back in order. The new insurance coverage was later confirmed by the broker. In January, the city clerk called requesting assistance with an issue involving city staff and a local resident. The administrator was on travel status and unavailable for comment. After consulting with the Anchorage RUBA central office, RUBA informed the city clerk that the issue has to be treated as a confidential matter and the immediate supervisor should handle the issue. RUBA offered to assist the city in drafting personnel policies that would include evaluations, discipline, and grievance steps. Bethel RUBA staff continues to send reminders to the city administrator to send documentation for the RUBA assessment file. The city administrator explained they have 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 explained that he was waiting for the critical spare parts list from the water operator. -13- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility badges: KX The utility has adopted a balanced realistic budget. XI Monthly financial reports are prepared and submitted to the policy making body. Xl 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. Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators O &] 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. I YTD expenditures are at a level equal to or below those budgeted, X A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. 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 still 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 monthly meeting minutes. 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. stainable 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. HHXK WH Dn e hue -14- January — February — March 2010 3” Quarter SFY10 - 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 has recommended adjusting the grace period to 30 days. The city administrator contacted RUBA 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 turned in two or three days early with time included to the end of the pay period. This time is not always worked yet recorded as worked. The administrator questioned the time of acceptance of time sheets and check issuance. Assistance was provided by RUBA. The name, phone number, and available hours for contact were also provided for the RUBA sponsored QuickBooks Help Line contractor. Tax Problems Essential Indicators Yes No X [| The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl C1 The utility is current on filing tax reports. x C] 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: Internal Revenue Service deemed the city to be compliant with federal tax requirements. Alaska State Department of Labor also deemed the city compliant at this time. There are no reported tax liens in the December 2009 Lien Watch report. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Wx The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. C1 The utility has adequate written job descriptions for all positions. L] 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. Xl ; The utility provides training opportunities to staff as needed and available. X wk Ww IO Personnel System Comments: Alakanuk is covered for workers compensation insurance through Umialik Insurance Co. effective to October 2010. Job openings are posted in at least three public places. The probationary period is three months from the date of appointment. The city administrator provides on the job training for new employees and other training is given if funding is available. City staff took advantage of 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 -15- January — February — March 2010 3” Quarter SFY10 - RUBA Report maintain the city accounting functions. Shortly after, the city administrator and the city clerk attended the RUBA sponsored 32-hour course 'Utility Clerk Management' 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 during class. 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... .. 1 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. XXXRXRH Sustainable Indicators x The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. Xl The utility complies with the “Open Meetings Act” for all meetings. 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 a new council who are 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 RUBA sponsored QuickBooks for Beginners. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Ri The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Xi 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). KI 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. XRORXRRX w -16- January — February — March 2010 3” Quarter SFY10 - RUBA Report Operation of Utility Comments: Alakanuk Water System is on the significant non-compliance list for Surface Water Treatment Rule and Stage 1 violations. The last violation in February 2010 was a lack of DS Cl Residual reporting due to missed monthly bacti sampling. There is no known hardwear problem. Alakanuk water treatment system is currently a class 2 and the wastewater treatment system is class 1. They have one operator, Kevin Joseph, who is certified as a water operator 1 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. -17- January — February — March 2010 3” 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 od The Village Council operates the one central watering ‘ay, : ot point and washeteria. The Village Council is the Fenn, tM policy-making body for the utility. Most residents haul water from the new water treatment plant/washeteria and use honey buckets or outhouses for sewage disposal. The village provides water to the school. A master plan was completed to study improvements needed to provide a community system. Chalkyitsik has been funded by 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. They have also been funded by DEC/VSW for $192,400 for Phase 2, and USDA/RD funded them for Phase 3 for $405,700. RUBA Activity This Reporting Period Fairbanks RUBA staff traveled to Chalkyitsik on March 2-3, 2010 to provide onsite assistance to the administration and to conduct a RUBA management assessment. RUBA management assessments are required by sanitation project funding agencies to gauge the management capabilities of the community. The tribal administrator had questions regarding the QuickBooks accounting program and the assessment process. RUBA staff also answered questions concerning the budget process, how to enter the budget in QuickBooks, and the relationship of the budget to the financial reports presented to the council. RUBA staff received and reviewed documents of management practices that are compliant with RUBA indicators and formed an action plan for assistance to change the deficiencies noted. A detailed assessment will be completed and reviewed by the tribal council. RUBA staff was contacted by the Alaska Energy Authority concerning Chalkyitsik's current fuel loan. They have been unresponsive to AEA requests for payments. AEA requested RUBA contact the community and assessment of the situation. RUBA staff contacted the community and met with the same unsuccess regarding information of fuel loan repayment. -19- January — February — March 2010 3” 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. Oo 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. 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. O XJ YTD expenditures are at a level equal to or below those budgeted. & OO A monthly manager’s report is prepared. &) Budget amendments are completed and adopted as necessary. & Finances Comments: The village council does not have an entity budget and there is no utility specific budget. As such, a budget vs. actual report can not be provided to the council; no financial reports are provided to the council. RUBA is unable to determine if the utility is paying electric expenses as there is no budget and no accounts payable report showing a line item. The tribe also owns the electric utility but does not charge tribal facilities for power. The washeteria expenses are limited to payroll and taxes, nominal amounts for fees, parts, and supplies, and the expense line items of reimbursement and utilities actually have a credit. There is no washeteria expense for fuel. Fuel is flown in as needed, typically every four weeks (plus or minus depending on weather conditions). The council obtained a Bulk Fuel Loan from the State of Alaska and has been current on paying the bills, documentation showing payment history was obtained. Shortly after this visit, AEA contacted RUBA and asked for assistance in lack of repayment for the fuel loan. RUBA will research the documentation provided by the community and the request from AEA. Revenue is recorded in a useable manner but the expenses are not, so it is not possible to determine if revenue is sufficient to cover expenses. Customers prepay for electricity using the powerstat card system, the self haul 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 the above mentioned services in addition to other village services (maintenance services, equipment rental, rental income, State of Alaska elections, and so forth.). The total deposit is given to the bookkeeper who enters the amounts into QuickBooks. Again, as there is no budget, it is not possible to determine if the revenue or expenses are at a level equal to or above/below those budgeted. Monthly financial management reports, which are written narratives that explain the QuickBooks reports are prepared by the administrator and a verbal report by the administrator is given at the council meetings. -20- January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No (1 & Theutility has adopted a collection policy and actively follows it. X L| The utility bills customers on a regular basis. Ri An accounts receivable system is in place which track customers and reports past due accounts and amounts. (1 & Anaccounts payable system is in place. X 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. Cl & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl |_| Acchart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. X 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 contract between the tribe and school exists which outlines the rights, responsibilities, and rates. The school contract (which is sufficient for the first criteria of collection policy) is actively followed. The school pays monthly, for a 12 month period, a copy of the bill was located and is on file in Fairbanks. No other customers receive bills or 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 which reports customer past due (or credits as the case actually is). For the water utility, the school is not part of the accounts receivable system. The village uses QuickBooks so an accounts payable system is in place but it is not used. Invoices are not entered into the computer as they are received and payment is not reconciled against the bill. Payroll is accurate and QuickBooks is utilized for this function completely. The cash receipt system is a combination of manual and computer reporting. As customers prepay for electricity or pay for 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 is able to use the receipt book to accurately split the deposit out by electricity or washeteria income. Out going funds for the water utility are disbursed from the utility checking account and a description of what the money was spent on is provided. The chart of accounts is very inclusive. Monthly reconciliations have been done. The tribe does have a purchasing policy, as part of the larger Finance Policy and Procedures manual (copy on file in Fairbanks), which outlines the process. To summarize the procedure, a check request is submitted, the administrator reviews for appropriate coding, approves for signature, the bookkeeper authorizes that funds are available, the check is signed. The crucial step that is missing, in policy and action, is that funds are verified against the checking account and not the budget. 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. X QO &l (O The utility is current on making tax deposits. X O If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. -21- January — February — March 2010 3 Quarter SFY10 - RUBA Report 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 Xl 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. Xl 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. X The utility provides training opportunities to staff as needed and available. & k& 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 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 days, as stated in the personnel manual, during which job-training is occurring. 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. -22- January — February — March 2010 3” Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No Ri The entity that owns the utility is known and the entity that will operate the utility is set. XX] The policy making body is active in policy making of the utility. C1 The policy making body enforces utility policy. (1 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 XXX &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: 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 ultimate responsibility to ensure that a budget is created and that financial reports are provided rests with the council. As these functions have not been fulfilled RUBA has indicated that the policy making body is not active in policy making for the water utility. An attempted review of the last six months of meeting minutes to determine how involved the council is with the utility was difficult as meeting minutes for the last six months could only be found for the January 19, 2009 and February 19, 2009 meetings. The council is active in enforcing utility policy, specifically with regard to personnel issues and documentation to support this are on file. The utility manager, bookkeeper, and operator are adequate. The bookkeeper's adequacy should not be based solely upon the state of the financial reporting as it is up to the council to ensure that a budget is created and approved, although, between the bookkeeper and the private CPA the tribe should be able to have a budget created. The above three mentioned staff members have the skills necessary to fulfill the functions of the positions. An organizational chart for the tribe is in existence, the council meets monthly and those meetings are open to the public with the necessary public notice posting. Operation of Utility Essential Indicators Yes No Kl CO The utility operator(s) are actively working towards necessary certification. Kl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Xl [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. Xl The utility has a safety manual and holds safety meetings. i} [1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Ol & The utility is operating at the level of service that was proposed. Kl C1 The operator provides status reports to the manager on a routine basis. O XJ The utility has completed and distributed its Community Confidence Report (CCR). Ol & The utility is not on the Significant Non-Compliance (SNC) list. 4] [] The utility maintains an inventory control list. KX OC The utility maintains a critical spare parts list. -23- January — February — March 2010 3” Quarter SFY10 - RUBA Report 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 timesheet. 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 suffering from outages ey are not the result of management issues. At the time of the RUBA visit the sewer line was frozen which prevented the few flush toilets to work. The flush system is for the tribal office, washeteria and clinic. As the sewer line was frozen the water to the buildings was not operable. As an aside, the TCC Engineer told RUBA that the water lines in the tribal office have frozen due to a lack of fuel being delivered to the office, but that is not specifically related to management of the water utility. The utility is still making potable water and residents still have access to the self haul system. The sewer line and washeteria closure has been a chronic problem every winter. 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. 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 needed with building a budget being the main need for the community. -24- January — February — March 2010 3” Quarter SFY10 - RUBA Report Emmonak Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 796 w Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City od The City of Emmonak owns and operates the piped cn : wv water/sewer system. The city also owns and operates Pee, po OP the washeteria/sauna. A new washeteria construction is in the last stage of completion. The city council is the policy making body for this utility. Water is derived from the Yukon River and is treated. Piped water and sewer services are provided to most of the residents of Emmonak. Currently, there are 206 connected to this system. Out of those connected, there are 185 residential homes and 23 businesses in service. The next water/sewer Village Safe Water funding will connect six new Emmonak tribal housing units. RUBA Activity This Reporting Period RUBA staff called the city manager and discussed RUBA issues; he has been working hard to become RUBA compliant. There is a new water operator who will be attending operator training in Fairbanks and other staff who will be attending the RUBA sponsored QuickBooks training in Bethel which is scheduled for late April. RUBA staff also spoke briefly with the city clerk, who will be assisting the manager, about the assessment checklist of items that would need to be evaluated. Late in the quarter, Bethel RUBA staff was contacted by the city manager regarding fuel, election issues, and IRS filings. During an earlier visit, RUBA staff reviewed and discussed RUBA requirements and the possibility of conducting an assessment later in the next quarter. The City of Emmonak is considering joining ARUC billing and collection program this spring. They have requested that ARUC make a presentation to the council to explain the program and benefits. -25- January — February — March 2010 3 Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No xl All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. I Monthly financial reports are prepared and submitted to the policy making body. KI 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. Xl 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. XJ YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The FY 2010 budget is balanced and is on the DCRA website. The new city manager has previous experience as Emmonak's city manager and is trying to provide required documentation for the essential indicators. 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 A cash receipt system is in place that records incoming money and what it was for. OO The Utility has a cash disbursement system that records how money was spent. XeXXX Wem Sustainable Indicators Xi A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. Xl 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: Collections have been a problem in the past due to change in administrative staff. The city is considering joining ARUC billing and collections. -26- January — February — March 2010 3” Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Ol W& The utility is current on filing tax reports. Ol WW The utility is current on making tax deposits. [C1 W& [fthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: There are no reported tax liens on the Statewide lien watch, however, current tax status regarding filings and deposits was not available for lack of tax authorization form being received. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xl The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. C1 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. Kl The utility provides training opportunities to staff as needed and available. kX RK KW Personnel System Comments: The community of Emmonak has undergone significant staff and council turnover. A personnel policy includes sections for hiring, evaluation, and probation. Vacant positions are posted until filled. New hires are on probation for three months. The city manager and city council have authority to hire. The Emmonak city council screens and hires for the positions of manager, police chief, clerk, treasurer, and city attorney. Workers compensation insurance is provided by AMLJIA. -27- January — February — March 2010 3” 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 xl The utility has adopted an organizational chart that reflects the current structure. & C1 The policy making body meets as required. x The utility complies with the open meeting act for all meetings. Papa APA A Organizational Management Comments: The City of Emmonak is known as the provider of water and wastewater services and has adopted an ordinance authorizing it to operate. The city manager has held the position for a number of years, and the bookkeeper worked in accounts payable prior to taking the position as the city's full-time bookkeeper. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Xl 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. KI The utility has a safety manual and holds safety meetings. I Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. ‘KI The utility is operating at the level of service that was proposed. I The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). &X] The utility is not on the Significant Non-Compliance (SNC) list. LI The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. Operation of Utility Comments: The utility is listed on the Significant Non-Compliance list for Stage 1 violations. The city hired water wastewater operation staff and have arranged for training. Indicators will change as more information is available from the new operator. RUBA Activities for the Coming Quarter: RUBA staff is available to provide assistance with any management capacity indicators that are not being met. All RUBA documentation was reviewed and requested from the new city manager. -28- January — February — March 2010 3” Quarter SFY10 - RUBA Report 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 cece, oe PO” points within the village and a solid waste and wastewater lagoon. The residents self-haul their own garbage and honey buckets. 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 processed water from the new water treatment plant. The HPB 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 FY10 budget for the washeteria/water treatment plant is balanced with subsidies from sales tax and gaming revenue. But the FY10 budget needs to be amended to include the sales tax and gaming subsidies and the carry over grants funds from FY09. The city administrator contacted Bethel RUBA staff to question how to list categories, budget amounts and budget amendment formatting. It was recommended that he use the chart of accounts line items to list all amended categories so that the city council can see and understand what is being considered. RUBA also answered questions regarding the numbering system used by the city in their ordinances. Previously the city used the current year and number of ordinance being considered; an example of numbered ordinance would be 2010-01. In addition, the administrator stated that Hooper Bay received a call from Allen Joseph, Alaska Village Council Presidents (AVCP) concerning the relocation grant from Alaska Housing Finance Corporation (AHFC). This grant will be used to relocate the new homes on a temporary location back to the old townsite where all the homes burned several years ago. Apparently, AHFC would like to close out this grant. The new houses would require planning for water hookups and service. -29- January — February — March 2010 3 Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No O XJ All revenue and expenses for the utility are listed in the utility budget. u The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. x 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. Kl 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. Hex Finances Comments: FY10 budget for water and sewer is balanced, but the budget needs to be amended to include the sales tax and gaming subsidy and the carry over grant funds from FY09. Monthly financial reports are up to date to November 2009. Washeteria operating costs continue to be subsidized from sales tax and gaming. Electric bills are paid up and documented. Hooper Bay is also looking into waste heat recovery and wind generation for the new washeteria/water treatment plant. 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 || Acash receipt system is in place that records incoming money and what it was for. & (1 The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators xX 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. HRX WX Accounting System Comments: All of the above indicators are reviewed through reports received from the community on a monthly basis and are on file in the Bethel RUBA office. Water and wastewater billings are sent out the first of every month. Accounting is done with QuickBooks Pro. -30- January — February — March 2010 3” Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. & C1 Theutility 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 community continues to be in compliance with tax requirements. The city pays payroll tax deposits electronically and copies of deposit slips are on file in the RUBA Bethel office. IRS and Alaska State Department of Labor confirmed compliance of tax reports and deposits. Personnel System Essential Indicators Yes No Xi [] 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. XK] 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. XK] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl [1 The utility provides training opportunities to staff as needed and available. X Of} Personnel System Comments: RUBA has on file copies of documentation for the above indicators. Workers' compensation is through AMLJIA effective July 2009 to June 2010. Qualified long term staff in the city administration is a huge benefit to this organization. -31- January — February — March 2010 3 Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No HXXXeXRH oOo000 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 regulatigns) 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. Organizational Management Comments: The utility currently has an adopted ordinance, however a new water and sewer ordinance that meets the Regulatory Commission of Alaska's requirements is being considered for adoption by the city council. The administrative and finance staff are long term and are competent and that includes the water operator. The city continues to make sure the operators are current with certification. 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 Xl x x &) x wd & Xi 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: RUBA recommended to city staff that they request from CE2 consultants the preventive maintenance plan, inventory control list and critical spare parts list in the operations and maintenance manual for the new facility as well as the safety manual. January — February — March 2010 3” 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 for the new washeteria/water treatment plant needs to be located, as well as a preventive maintenance plan. January — February — March 2010 3” Quarter SFY10 - RUBA Report Hughes Activity Report Community Overview Lead RUBA Staff: Brendan Smyth, Fairbanks Regional Office 2007 Population: 76 Region: Interior Local Governments: 2" Class City od 4; In 1968, a community water distribution system and NV cece, ee PO 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 the community of Hughes on March 30-31, 2010 to conduct a RUBA management assessment of the utility policies and procedures. The assessment went well and was completed in a timely manner with all required documentation received. RUBA staff provided assistance with entering the adopted utility budget in QuickBooks and grant writing procedures. The draft assessment will be presented to Hughes for review and a final assessment will be completed after the ten day review period. All supporting documentation is maintained in the Fairbanks office for review. RUBA staff will continue to communicate with the city administrator and follow up on any lacking areas in the assessment. -35- January — February — March 2010 3 Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No QR All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. Xi Monthly financial reports are prepared and submitted to the policy making body. Xl 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. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating eX} penses. . Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. XX YTD expenditures are at a level equal to or below those budgeted. RX A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: The utility currently has revenue and expenses listed in the utility budget, though some areas of the budget are out of balance due to the fuel reporting being completed by hand and not entered into the QuickBooks data site. The utility has a budget in place for the utility and the city. 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 currently 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 at a level or above those budgeted while the YTD expenses are above those budgeted, though the fuel sales make up for these budget expenses. A written manager report is presented to the council every month, with the manager being in attendance to answer questions. When talking to the administrator about the monthly council meetings, RUBA learned that the council is active in passing amendments and adopting them when needed. Copies of meeting minutes are available in the Fairbanks office. January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No L| 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. CL] Anaccounts 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. Xl Cl) The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators Ri C1 A chart of accounts is used that identifies categories in a reasonable, usable manner. Ri 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. kX Wem Accounting System Comments: The utility has adopted a collection policy and follows it by mailing out and delivering bills the first of each month. The bookkeeper related to RUBA the city uses an accounts receivable system that tracks what customers owe to the city. 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 and the city keeps the required records of the payroll. The cash receipt system in place is used to track revenue from token washeteria sales and other random sales. The utility records how money is spent for the utility keeping track of these expenses in cash receipt books. The city has a chart of accounts in their QuickBooks program that identifies different categories that are easy to understand. Monthly bank reconciliations are completed by the city bookkeeper. The city should work towards writing a purchasing policy and follow the steps outlined in it. Tax Problems Essential Indicators Yes No Xi The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. Xl 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 Hughes is current on IRS reporting and the city has recently repaid late fees they had previously incurred. The IRS and Department of Labor have both deemed Hughes compliant with tax reporting and filing. Hughes has no recorded liens. -37- January — February — March 2010 3” Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xl 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. & The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X (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. Xl The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl The utility provides training opportunities to staff as needed and available. Personnel System Comments: Fairbanks RUBA staff viewed the city's workers compensation insurance posted in the office; they have it supplied through AMLJIA good 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 city employment positions. The city conducts personnel evaluations that follow their written job descriptions. They have an adequate hiring process, though the folders for employees only hold payroll information. The utility provides a probationary period for newly hired employees that include evaluations and training opportunities for city staff. 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 & The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. HRXRXXRH Organizational Management Comments: The utility owner is spelled out in the city ordinances as the City of Hughes owning the utility and having them operate it as well. The council meets regularly and gets reports on the utility operations. Fairbanks RUBA staff has copies of council meeting minutes located in the office. The council also enforces the utility policies when necessary. The bookkeeper stated that usually the drastic measures aren't needed after the first few warnings. The utility manager is trained and if more training is required or requested, the council approves the training if funds are available. The bookkeeper is very adequately trained as are the operators. The utility has the necessary ordinances to give authority to operate the -38- January — February — March 2010 3 Quarter SFY10 - RUBA Report utility. The utility does not currently have an organizational chart for people to reference. The policy making body meets 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 Yes No kl 1 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 ; ; (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. &] 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. KX) The utility maintains a critical spare parts list. DOXRRR wo Operation of Utility Comments: The utility operators are trained and actively work towards getting the correct certifications. The manager receives verbal reports from the operator concerning operations and maintenance reports of the utility. The operator also works closely with his machinery and spot checks the area while he is working. The utility does not currently have a safety manual or hold safety meetings. The Hughes facility has not had any problems due to management issues. The utility operates the service at the proposed operating level. The operator provides reports to the manager regularly, letting the manager know what is going on at the time and what may be coming up. The utility completes and distributes a Consumer Confidence Report; a copy of the recent one is on hand in the Fairbanks office. The utility currently is not on the latest Significant Non-Compliance list (February 2010). The utility does not have an inventory or critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff traveled to the community at the end of the third quarter and performed a new RUBA Assessment. RUBA staff will continue to update the assessment as information is provided. -39- January — February — March 2010 3” Quarter SFY10 - RUBA Report Hydaburg Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Regional Office 2007 Population: 353 Region: Southeast x Local Governments: 1* Class City od 43 The city operates a level 1 water distribution and cece, et PO 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 The City of Hydaburg still does not have all the necessary financial and management systems in place to pass the RUBA management assessment; however, the community has made significant strides towards addressing deficient essential indicators. The city has begun the first round of water service disconnections for water, sewer and garbage customers who are seriously delinquent. Local municipal code requires a service disconnection seven days following an account becoming delinquent. However, for many years this ordinance has not been enforced which resulted in a very low collection rate and utility customers owing the city in excess of $200,000. All delinquent customers have been notified of the impending service disconnections; however, due to the vast number of delinquent accounts, the city will first start disconnecting water users who are $1,000 or more past due and do not have a service agreement on file. RUBA staff assisted the community in clearing an Alaska Employment Security Tax (EST) lien from the public record. 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. However, the State Recorder's Office showed an active EST lien which was filed on 2/12/08. A lien release had never been recorded after the community became current with their EST liabilities. RUBA staff acquired the lien release from the State Department of Labor and ensured that the release was recorded. The city is now clear of all EST and IRS liens. RUBA staff will continue providing technical assistance and support the community in implementing the necessary changes. A follow-up RUBA assessment is scheduled in six-months to measure progress. -41- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No I All revenue and expenses for the utility are listed in the utility budget. KI The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. Xl 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. bd 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. (1 & yvDrevenues are at a level equal to or above those budgeted. Kl YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. KX] Budget amendments are completed and adopted as necessary. Finances Comments: The city has not yet adopted an FY10 annual budget. The budget is drafted and was scheduled to go to the council for first reading on December 8, 2009; however, the council failed to achieve a quorum and the meeting was postponed to an unfixed date. 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. Until recently, there were internal errors with the QuickBooks program which caused inaccurate information to appear on the financial reports. The city hired Tammy Stromberg, CPA of Aurora Corporate Enterprises Inc., as 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 is current with all electricity accounts for the water and wastewater utilities. 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 and the city attempts to keep the tanks locked 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 that are available to subsidize utility's operating expenses. The city has in the past had to resort to deferring payment of other city obligations to ensure the continued operations of the water treatment plant. The administrator and mayor have expressed their desire to start enforcing the city's collections policy and addressing the utility rates that have not been changed in several years. In December 2009, the mayor published and sent out a newsletter informing residents of the new utility bill collection -42- January — February — March 2010 3” Quarter SFY10 - RUBA Report procedures to be imposed starting January 1, 2010. The city administrator, who also serves as the utility manager gives both verbal and written status report to the council at monthly meetings. Written reports are usually timely and comprehensive. The administrator 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 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. (1 Anaccounts payable system is in place. The payroll system correctly calculates payroll and keeps records || Acash receipt system is in place that records incoming money and what it was for. C1) 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 Monthly bank reconciliation’s have been completed for all utility accounts. XX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. KKK WHO Accounting System Comments: The city has an adopted collection policy which is contained 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 cover conventional utility ordinance topics such as billing dates, delinquency notices, service charges, and charges to reconnect services. In the past, 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 is 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 whether it is 1-30 days, 30-60 days, 60-90 days, or over 90 days 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. Along with the cash receipt log, the city 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 procedural training to city finance personal 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 currently have a FY10 budget, the administrator attempts to prevent overspending by reviewing the cash balance report before approval. The city is completely caught up on their delinquent annual financial audits and auditor's are currently working on the city's 2009 annual financial audit. -43- January — February — March 2010 3 Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CO The utility is current on filing tax reports. X 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 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 941s (employer's quarterly federal tax returns) and verified electronic debits. The last four quarters' 941s were filed on time. On March 22, 2010, the 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 Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xl The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. XJ The utility has adequate written job descriptions for all positions. Xl The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X The utility has an adequate written hiring process. Xl The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. Xl The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Kl The utility provides training opportunities to staff as needed and available. Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska National Insurance Company. The policy is effective from 7/1/09 through 06/30/10. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Copies of the workers compensation policy is 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 their personnel policy. An updated policy has been drafted and is scheduled to be adopted at the next council meeting. The city keeps records relating to employees in a personnel file. 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 all files connected with an employee are considered strictly confidential. The city has plans to purchase new fire proof and 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. -44- January — February — March 2010 3” 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. (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). LI The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators O XX] The utility has adopted an organizational chart that reflects the current structure. Xi The policy making body meets as required. X [] The utility complies with the open meeting act for all meetings. WORRNHE Organizational Management Comments: The City of Hydaburg owns and operates the water and wastewater utilities. The council is the formal governing body and meeting minutes verify that it 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 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 city currently has only one uncertified operator working on the sanitary systems. The operator 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 subordinate however it does not accurately reflect the current organizational structure of the city. -45- January — February — March 2010 3” Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No KK] The utility operator(s) are actively working towards necessary certification. Xl 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. x The utility has a safety manual and holds safety meetings. Xl 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. x The utility maintains a critical spare parts list. ewok Operation of Utility Comments: The city operates the following sanitation systems: Level 2 Water Treatment Level 1 Water Distribution Level 1 Wastewater Collection 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 (2/3/10) Significant Non-Compliance List. The utility is receiving treatment technique violations for turbidity and monitoring which has resulted in a boil water notice for the community. The utility failed to provide quarterly TTHM/HAAS samples for 1st 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 polymer and chlorine. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the community 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 FY10 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 RUBA staff, at the request of the community, is also available for on-site assistance to provide training and assistance in improving and meeting the deficiencies identified in this assessment. - 46- January — February — March 2010 3” Quarter SFY10 - RUBA Report Koyuk Activity Report Community Overview Lead RUBA Staff: Steve Brock, Nome Regional Office 2007 Population: 347 Region: Southeast Local Governments: 2™ Class City od The City of Koyuk operates the water and sewer ery ol system and maintains a central watering point for residents to haul their own water. There are honey bucket pits but no sewage lagoon. The city council is the policy making body for the utility. The City of Koyuk is working with Village Safe Water on a number of future projects including the rehabilitation of the water sewer lines, a new solid waste site and water treatment plant. RUBA Activity This Reporting Period New RUBA staff was assigned to this community during this quarter; a letter of introduction was sent to the community. The utility clerk purchased a new computer for the utility department to use. The old computer crashed and RUBA staff recommended to have it replaced rather than repaired because of its age. During the quarter, RUBA staff assisted the city clerk with procedures for passing emergency ordinances, and a sample wage scale for consideration by the council. The utility clerk has expressed interest in attending a RUBA sponsored advanced level QuickBooks Pro training. In some cases, the utility clerk calls Intuit online services to ask for assistance on using QBP. -47- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. RX Monthly financial reports are prepared and submitted to the policy making body. Rl 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. X 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. xl YTD revenues are at a level equal to or above those budgeted. Xl YTD expenditures are at a level equal to or below those budgeted. xX (1 A monthly manager’s report is prepared. xX C1 Budget amendments are completed and adopted as necessary. Finances Comments: The utility clerk has extensive experience with QBP and uses it exclusively for keeping financial records and reports. The utility clerk makes comprehensive monthly financial reports using QBP and Excel Spreadsheet. Although the water and sewer collection rate is fairly high and adequately covers the expenses of the department, the washeteria operates at a loss of at least $3,500 a year. The city council feels that it should continue to subsidize washeteria services for the residents, as most do not own personal washers and dryers. Accounting Systems Essential Indicators Yes No X 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 [] 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. XXXe we Sustainable Indicators RX 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. Xl 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 regularly bills residential customers on a monthly basis using QBP. The city council is considering raising the water and sewer rates at least $10 more. The residents are currently charged $70 a month. Trash haul services is included in the water and sewer utility bill. - 48 - January — February — March 2010 34 Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No x The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. Xi The utility is current on making tax deposits. RX C1 If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility is current on all tax reports and deposits. QBP is used to make quarterly reports and electronic deposits are made for tax liabilities. The utility has its own Employer Identification Number (EIN). Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators xl 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. Xl The utility provides training opportunities to staff as needed and available. kX Wk WN Oo Personnel System Comments: The utility's workers' compensation coverage is through the city. The city uses AML-JIA for general liability and workers' compensation coverage. The city uses its old but comprehensive personnel policies. -49- January — February — March 2010 3” 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 a} The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. x (1 The utility complies with the open meeting act for all meetings. HRRRRRH Organizational Management Comments: The city council meets regularly and actively participates with the utility issues. The utility is included in the monthly city council meetings. The utility clerk and the city clerk take over each other's duties when one or the other is on leave. Both the city clerk and utility clerk are proficient with using QBP. Operation of Utility Essential Indicators Yes No Ri 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 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. Xl The utility has a safety manual and holds safety meetings. Xl Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Xl The utility is operating at the level of service that was proposed. Xl The operator provides status reports to the manager on a routine basis. Xl The utility has completed and distributed its Community Confidence Report (CCR). RX The utility is not on the Significant Non-Compliance (SNC) list. Xl The utility maintains an inventory control list. x The utility maintains a critical spare parts list. Operation of Utility Comments: The utility is not on the Significant Non-Complier list. The utility operator has extensive experience with operating and maintaining the city's water and sewer mains as well as the water plant and the sewer plant. He and the alternate operator have worked on and off for years as utility operators. They are certified to the level necessary for the level of the utility system. -50- January — February — March 2010 3” Quarter SFY10 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will provide telephonic assistance as needed and assist the clerk in registering for a QBP class when one is available. RUBA staff may travel at least once to introduce the new RUBA staff assigned to the community. -51- January — February — March 2010 34 Quarter SFY10 - RUBA Report Kwigillingok Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 361 Region: Lower Kuskokwim Local Governments: Tribal Council od The village council operates the central watering point V ceace, ot OO” and washeteria. Water is derived from snow, ice melt and a lake reservoir and treated. Water haul services are provided by the council from the washeteria. The water is not fit for human consumption. About fifty percent of the residents are on the flush haul system, the remainder use honey buckets. Honey buckets are disposed by residents at private pits. The school operates its own surface water treatment facility but shares the sewage lagoon with the washeteria. Infrastructure improvements are underway to develop a community system. RUBA Activity This Reporting Period Kwigillingok IRA faxed a copy of their business plan for their utility and emailed a request for assistance to update the plan. Attached to the fax was a copy of a letter from Department of Environmental Conservation, Division of Water, Lori Telfer, Planner III. The letter listed nine items that needed to be addressed to update the business plan, however the Bethel regional office was informed that was not the case anymore. The community requested a RUBA assessment during the quarter; the last assessment was conducted in May, 2008. New assessments should be done after about two years, unless there has been something significant, like staff turnover, or some other major change to management. A new assessment will be scheduled sometime next quarter. Kwigillingok's fiscal year is the calendar year. The budget for FY10 has not been submitted. A sample finance report that includes the budget, monthly revenue/expenditures, year to date and variance was sent to Kwigillingok. -53- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX] All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. X 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. Xi 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. XK] 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. Kl A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: Kwigillingok needs to submit the FY10 budget. Both the laundromat and the tribal office building are up to date with electrical bills. Their fuel capacity is 103,000 gallons. When needed, the utility is subsidized from heavy equipment rental income as well as the general fund. Equipment rental income can range between a high of $10,000 a month to zero. The budget includes a nominal amount for repair and replacement costs. The last financial statement (profit and loss by class, no budget figures) submitted is for the month ending February 2010. The laundromat budget is part of the tribal budget and the flush and haul system is under the Kwig Power Company budget. Both are subsidized from unrestricted sources within each budget. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. xl The utility bills customers on a regular basis. Xl 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. Xl The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. & (1 The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X 1 Achart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. Xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -54- January — February — March 2010 34 Quarter SFY10 - RUBA Report Accounting System Comments: The utility has a collection policy and actively follows it. When customer past due accounts reach ninety days, they no longer receive services until their outstanding bill is paid in full. A past due list of customers who no longer will receive services until their outstanding bill is paid was provided to RUBA. Customers are billed at the beginning of each month. A service order system is in place which tracks the amount of working hours for the utility operator and provides backup for customer billing. The tribe uses QuickBooks and it has the capacity to track customer's accounts, accounts payable and accounts receivable, correctly calculate payroll, and do financial reports. A chart of accounts was submitted to the Bethel regional office file for both the tribal and utility accounts. Bank reconciliations are done on a regular basis. A sample purchase order form, which requires prior approval before purchases are made, was also provided to RUBA. Tax Problems Essential Indicators Yes No x [] The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl (1 The utility is current on filing tax reports. X (1 The utility is current on making tax deposits. x C1 If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: On December 22, 2009 IRS reported that Kwigillingok has filed all required tax reports, is in compliance with deposit requirements and has no outstanding liens against them. Alaska Department of Labor and Workforce Development reported that Kwigillingok has filed all required employment security reports. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators 4} [] 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. xl L| The utility provides training opportunities to staff as needed and available. X We ww Personnel System Comments: Kwigillingok IRA submitted a current copy of their worker's compensation insurance coverage with Alaska National Insurance Company. The Bethel regional office has a copy of the personnel policy, which includes job descriptions. All staff are evaluated each year. The utilities director emphasized that the operators are on a performance based evaluation and their hours are based on their workload. The utility personnel files are complete and contain I-9s. The personnel policy contains provisions for an -55- January — February — March 2010 3” Quarter SFY10 - RUBA Report employee probation period which is followed. When training opportunities become available for employees, they are allowed to attend. 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. (1 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). XI The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X (1 The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. Xi The utility complies with the open meeting act for all meetings. e XRNXRR Organizational Management Comments: The utility is operated by the Native Village of Kwigillingok. The council meets regularly each month and is active in policy making for the utility. Although they are not required, the council complies with the Open Meetings Act for each regular meeting they hold. The meetings are advertised three days in advance by posting written flyers throughout the community. The utility manager has worked for the Native Village of Kwigillingok since 1983. The bookkeeper transferred from the Yukon Kuskokwim Health Corporation where she worked in payroll. The laundry operator has worked for Kwigillingok for approximately two years. The bookkeeper and utility operator attends training sessions when they become available. Utility Ordinance number 2005-10-01 was submitted to the Bethel regional office, as was an organizational chart, which is reflective of the current structure. These documents are in the community file. Operation of Utility Essential Indicators Yes No Ri 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 Xl 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. I The utility has a safety manual and holds safety meetings. 4 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. XXXHXO -56- January — February — March 2010 3” Quarter SFY10 - RUBA Report Operation of Utility Comments: The Native Village of Kwigillingok operates the laundromat. The water supply from the watering point in the laundromat is not safe for human consumption and there are signs posted throughout the community, including private homes. The signs prohibit the use of the water for drinking, and provides instruction on how to boil water to make it safe for human consumption. Community members use rain water and ice for drinking. The tribe provides services to evacuate sewer tanks and haul services. The Kwigillingok Washeteria is on the Environmental Protection Agency's Significant Noncompliance List which was dated February 2010. They may be able to return to compliance by September, 2010. The utility operator worked for the Native Village of Kwigillingok since 1983 and attends training sessions when they are available. The Bethel regional office file contains forms for annual, quarterly and monthly preventative maintenance reports. The utility manager does spot checks to the laundromat and verbally receives information on maintenance and other issues which is written and presented to the council at their monthly meetings. The utility manager stated he holds safety meetings once a week but did not submit a written safety manual. The utility has not suffered any major problems or outages due to management issues to date. The utility ordinance states that the primary service shall be to provide . water haul service and sewage tank evacuation of homes. Because the filtering system is not complete, the water service is limited to use for nonhuman consumption purposes such as for the laundromat. There is no water haul service offered yet. No Consumer Confidence Reports, inventory control or critical spare parts lists were provided. RUBA Activities For The Coming Quarter Kwigillingok has not passed all essential indicators. RUBA staff will conduct a RUBA assessment during the next quarter at the community's request and will continue to work with the utility manager on deficient indicators. -57- January — February — March 2010 3” 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 od v Bree, on pO 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 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 the Village Safe Water (VSW) program. RUBA Activity This Reporting Period On March 24, 2010, Anchorage RUBA staff traveled to the City of Larsen Bay to train the new city clerk. While onsite, RUBA staff provided training on various issues. Some of the significant tasks accomplished were assistance with the completion of the city's quarterly grant reports, the IRS 941 and Department of Labor reports for the city and the city's electric utility company. RUBA staff also worked with the city clerk to review the Power Cost Equalization (PCE) program and assist in completing the February PCE report. The City of Larsen Bay is scheduled to begin construction on their new water treatment plant this spring. RUBA staff will continue to work with the new city clerk to ensure she has the necessary training and resources to maintain the current level of sustainability the City of Larsen Bay demonstrates. RUBA staff also assisted Alaska Native Tribal Health Consortium (ANTHC) engineer Kelly Larson in calculating the City of Larsen Bay water/wastewater collection rates. The collection rates are required information when applying for several of the funding opportunities. The city had a 91% collection rate for their water/wastewater services in FY09. Due to local staff turnover, RUBA staff also provided assistance in completing the December and January PCE reports. The new utility clerk had no prior experience in completing these reports. Due to the assistance provided by RUBA, the city will receive a reimbursement of $4,661.31 for the two months. These funds are used to subsidize the water utility expenditures as user fees do not fully fund the utility. - 59. January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. & 1 The utility has adopted a balanced realistic budget. Xl Monthly financial reports are prepared and submitted to the policy making body. QR The utility is current in paying all water/wastewater electric bills. QR The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. x 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. X Budget amendments are completed and adopted as necessary. Xe Finances Comments: The City of Larsen Bay drafted and adopted a FY10 budget with RUBA assistance. RUBA staff trained the city clerk and billing clerk in preparing the proper financial reports which are submitted to the council monthly. The interfacility 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. It will be an adequate supply until mid-summer. 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; however the operator has daily contact with the mayor and/or city clerk. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. Xl 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. X The payroll system correctly calculates payroll and keeps records RX 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 Kl A chart of accounts is used that identifies categories in a reasonable, usable manner. Xi 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. - 60 - January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Comments: The city 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 and has been a tool in the past to reliably keep the city's finances in order. Currently bills are going out 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 for historical data. The city's purchasing system requires prior approval from the mayor or city clerk dependant on the purchase amount. Once approval has been given a purchase order is issued. Tax Problems Essential Indicators Yes No & OC Theutility 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. Xi [J 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 submitted 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. Personnel System Essential Indicators Yes No Ol The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XK 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. (1 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. C1 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. Xk XK ww Personnel System Comments: The City of Larsen Bay has a posted workers' compensation insurance policy in effect from 7/1/09 to 7/1/10 with AMLJIA. On December 9, 2008 the city council adopted a personnel policy. The city has contacted AMLJIA to request a review of the personnel policy. RUBA staff will also review the personnel policy and make recommendations. The city's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. Interested applicants apply at the city office. There is currently no probationary period for employees. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. -61- January — February — March 2010 3 Quarter SFY10 - RUBA Report Organizational Management Essential Indicators Yes No LJ 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 & C1 The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. RX The utility complies with the open meeting act for all meetings. HXXXXHR 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 and the current utility operator is trained and has passed the Provisional Level 1 test. The city and billing clerks attended a RUBA class for rural clerks held September 14-18, 2009 in Kodiak. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. & C1 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. Xl The utility has a safety manual and holds safety meetings. RX 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. XX The utility maintains an inventory control list. KX] The utility maintains a critical spare parts list. JO IX Operation of Utility Comments: In speaking with the Remote Maintenance Worker, Steve Evavold of Village Safe Water, there is a preventative maintenance plan for the existing system. The City of Larsen Bay is currently taking part in AMLJIA monthly safety meetings. The current utility operator is trained and can run the system and has passed the Provisional Level 1 test. Historically, the utility operator reports to the mayor, vice- mayor or city clerk when there is a problem or he can foresee one. The utility is not able to operate at the level of service that was proposed due to the inability to backwash the rapid sand filter and the Solo- valve being deemed a cross connection by Alaska Department of Environmental Conservation (ADEC); - 62- January — February — March 2010 3” Quarter SFY10 - RUBA Report 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. 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. - 63- January — February — March 2010 3” Quarter SFY10 - RUBA Report Nikolai Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 88 Region: Interior 2 Local Government: 2" Class City od All 47 households and facilities use individual wells; of v Pepine, pe PP these, only 2 units lack plumbing. Thirty-three homes, including 10 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 On February 8, 2010 Anchorage RUBA staff traveled to Nikolai to conduct a RUBA management assessment. Following the completion of the assessment, RUBA staff worked with the city clerk to set up their QuickBooks accounting processes for utility billing and the electric billing. The city recently took management of their electric utility back from a contractor they had hired to run that utility. The city subsidizes the wastewater department with the fuel and electric revenue. Once the December and January electric invoices were entered in QuickBooks, RUBA staff trained the clerk on how to create monthly statements for the customers. RUBA staff then worked with the clerk to reconcile October- December 2009 bank statements. RUBA will continue to monitor Nikolai and provide assistance to meet all management indicators of the assessment. -65- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. & CO The utility has adopted a balanced realistic budget. KI Monthly financial reports are prepared and submitted to the policy making body. Xl 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. Xi 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. I Budget amendments are completed and adopted as necessary. Xm Finances Comments: The City of Nikolai drafted and adopted the FY10 budget with RUBA assistance. The budget includes expenditures for the sewer department. However, the city council does not yet receive a monthly financial report that compares actual income and expenditures to the budgeted amounts. 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 via Brooks Fuel on an as needed basis. All fuel orders are paid in full upon arrival. As noted previously, the City of Nikolai does not charge residents for sewer service as only a small portion of the community is on the system. They have instead chosen to subsidize the sewer utility through the fuel and electric sales revenue. Although the council does not receive a prepared 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 from the council; however, because of the small labor pool in Nikolai, many council members either work for the city or donate time to the city to complete needed jobs or tasks. - 66- January — February — March 2010 3" 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. |_| An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. (1 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. Kl HHKK we Sustainable Indicators Xl OO Achart of accounts is used that identifies categories in a reasonable, usable manner. x 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. 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. Currently bills are issued on a regular basis by the 5th of every month in accordance to 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 purchasing system requires prior approval from the mayor or city clerk dependant on the purchase amount. Once approval has been given, a purchase order is issued; however, currently it is not compared to the budgeted amounts. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. KX C1 The utility is current on making tax deposits. RX 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 submitted monthly and the quarterly reports are completed and mailed to the IRS on time. Due to inactivity of the council from 2004 until 2008, the IRS deemed them non- compliant; however, since that time the city worked with the Tax Payers Advocate's office to clear up the issue. -67- January — February — March 2010 3” 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. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. tele asl 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. X The utility provides training opportunities to staff as needed and available. 2 2 we Personnel System Comments: The City of Nikolai has a posted workers' compensation insurance policy in effect from 7/1/09 to 7/1/10 with AMLJIA. The city's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. 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 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). & (C1 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. X The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. HRNRHX 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 council has been actively enforcing the fuel and electric utility policy. The clerk has attended a QuickBooks training class sponsored by the RUBA program. Employees that operate the various utilities 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. - 68 - January — February — March 2010 3 Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No X 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 Xl XXX WHOOO 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: Currently, the City of Nikolai does not have a utility operator that is actively working toward the necessary certification. In speaking with the Remote Maintenance Worker, Pat McAree, there is no preventative maintenance plan for the existing system. The City of Nikolai is currently not taking part in AMLJIA monthly safety meetings or other means of safety meetings. Historically, the utility operator reports to the mayor, vice-mayor or city clerk when there is a problem or he can foresee one. The utility operator and council attempt to keep needed critical spare parts on hand but they currently have no actual written list. RUBA Activities For The Coming Quarter DCRA staff will continue to work with the City of Nikolai as needed to ensure the council has all the necessary assistance to meet the essential management indicators. - 69- January — February — March 2010 3” Quarter SFY10 - RUBA Report — eee ee ee Nulato Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Anchorage Office 2007 Population: 274 Region: Interior Local Government: 2™ Class City od The City of Nulato operates two washeteria and a piped V seepee een water system to a portion of the residents. Water is derived from a well near the mouth of the Nulato River, pumped two miles to a treatment plant in the Old Townsite, and pumped an additional 1.5 miles to a 129,000 gallon holding tank in the New Townsite. Water treatment is minimal. The Old Townsite Washeteria, constructed in 1974, utilizes an independent well (separate from the well used for the piped system). In addition to washers and dryers, the facility has showers and a community watering point; a new sewage lagoon was completed in 2003. Approximately 30 homes in the Old Townsite lack piped water/sewer service and the residents haul water from the watering point or the Nulato River, and use honey buckets or outhouses. The New Townsite Laundromat was constructed in 1988 and the piped water and sewer system was constructed in 1996. Piped water/sewer service is provided to approximately 70 homes and 7 public facilities in the New Townsite, and to the school and teacher housing units in the Old Townsite. RUBA Activity This Reporting Period Fairbanks RUBA staff traveled to Nulato on February 23-26, 2010 to complete a RUBA management assessment and work with city staff on other issues. RUBA obtained documentation to support findings of current local policies and procedures. RUBA staff provided some recommendations to a consulting firm that is working for the Village Safewater (VSW) program to obtain site control for a water improvement project in Nulato. Significant improvements are planned for the well site that is located on a Native allotment. The city recently learned that it's land use permit to operate the city well has expired. Since the well is the most important source of water, it is considering seeking a purchase of the site from the allotter’s heirs. The city intends to begin discussions with the Bureau of Indian Affairs regarding the steps necessary to obtain approval for a purchase. -71- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. & 1 Theutility has adopted a balanced realistic budget. Xl Monthly financial reports are prepared and submitted to the policy making body. Kl 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. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &X C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X YTD revenues 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. & (1 Budget amendments are completed and adopted as necessary. Finances Comments: The utility budget includes all conceivable revenue and expenses. The budget has been adopted by the city and is realistic. The bookkeeper provides a monthly report, which compares the budget to the actual income and expenses, to the city council. According to the Accounts Payable report and also a review of the city's bills, the city and the water utility are current on payments. The utility has adequate heating fuel to last until the spring barge arrives and sufficient revenues to purchase additional fuel if necessary. The fuel depot attendant supplied the clerk with daily usage logs in order to maintain a current inventory of fuel. The utility has revenue from monthly customer water/wastewater bills and from the two washeterias. If additional revenue is necessary, the city owned liquor store provides the subsidy. Year-to-date revenues are $2,033 above what was budgeted, but the year to date expenses are more than what was budgeted by $7,446 (the liquor store covers the difference). Manager reports are provided to the council both in written format and verbally, the verbal reports are included in the meeting minutes. -72- January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. 4) An accounts receivable system is in place which track customers and reports past due accounts and amounts. & OO Anaccounts payable system is in place. & CO 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. XO The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl [1 A chart of accounts is used that identifies categories in a reasonable, usable manner. RX [] Monthly bank reconciliation’s have been completed for all utility accounts. [1 & Theutility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The collection policy is in the Nulato Code of Ordinance, Chapter 7.9, and the council actively follows it. Past due amounts are tracked in QuickBooks and delinquent customers are notified in writing by using an adopted collection form from the code of ordinances. The next step is to turn the delinquent accounts over to a collection agency; the final step is to disconnect the customer. Payroll is calculated in QuickBooks. The city uses a wire bound receipt book for recording cash transactions and reconciles the receipts to QuickBooks. Expenses are recorded and coded accurately in QuickBooks. The city has not used a purchasing system before but RUBA staff and the city staff started the process to develop a policy and purchase order. The purchase order that was created has a section to compare the proposed purchase to the budget and an area for the mayor to sign for approval. Since the purchase order was recently drafted it has not been formally adopted by the city, nor has a purchase policy, therefore this criteria is marked no. Tax Problems Essential Indicators Yes No & 1 _ Theutility has a system to accurately calculate, track, and report payroll tax liabilities. KX C1 Theutility is current on filing tax reports. Xl 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: QuickBooks accurately calculates and reports payroll taxes. Copies of the last four quarter for tax filings have been obtained. On March 22 and 23 both the IRS and The Alaska Department of Labor have deemed the city compliant. ~73- January — February — March 2010 3” Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes N 0 & CO Theutility hasa posted workers compensation insurance policy in effect. Sustainable Indicators Xl 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. X The utility has an adequate written hiring process. XJ The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. 4} The utility provides training opportunities to staff as needed and available. Personnel System Comments: The city has a worker's compensation insurance policy in effect and it is posted on the wall in the city office. The policy is through AMLJIA. The personnel policy manual was reviewed and is sufficient. RUBA and city staff made recommended updates to the manual and the updates will be presented to the council for adoption. Job descriptions exist for every position; RUBA reviewed the descriptions and some minor updates were recommended. Evaluations are done, for all full time and permanent part time employees, every June by the whole city council. The evaluation form and job descriptions are included in each council member's binder. Evaluations are based upon the duties listed in the job descriptions. The hiring process is also adequate and is described in the personnel policy. For example, the policy states the number of vacancy notices and location for posting, how the hiring committee will determine the best candidate, and that reference checks are required. The personnel folders do not contain an I-9 form or letter of acceptance; they all contain W-4s and payroll information but are sporadic about the other documentation. A three month probationary period is established for each position and the manager can extend the time. Job training is provided, both locally and out of town. 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. (1 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 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. XRXNeXww -74- January — February — March 2010 3” Quarter SFY10 - RUBA Report Organizational Management Comments: The city passed an ordinance providing the authority to own and operate the utility. The city council is the ultimate governing body for the utility. According to the city council meeting minutes they are active in policy making and enforcing existing policy. The manager and utility staff are adequate and perform their duties well. The city has an organizational chart in the standard chart format and it also has the chain of command in a text document; the mayor is the manager and there are so few employees that all employees are directly under the supervision of the mayor. The council meets every month and the meetings conform to the Open Meetings Act. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Xl 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. Xl The utility has a safety manual and holds safety meetings. Xl Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. x The utility is operating at the level of service that was proposed. ® The operator provides status reports to the manager on a routine basis. Xl The utility has completed and distributed its Community Confidence Report (CCR). Xl The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. XI = The utility maintains a critical spare parts list. Operation of Utility Comments: The water plant operator is current on his certifications and, based on the physical appearance of the document, the operator uses the preventative maintenance plan. Copies of the cover and title pages were made and RUBA staff reviewed the manuals. The water plant operator provides a daily activity log to the mayor and council member. The city clerk attends AMLJIA safety meetings and at the monthly employee meetings presents the topics. The utility has been operating at the level provided and is not suffering any outages. A copy of the last CCR was made and the utility is not on the SNC list. RUBA staff met with the operator to try and determine if lists of inventory or spare parts were used but the operator did not have any such list. He indicated that he has a good idea of inventory in his head but conceded that in his absence others would be at a disadvantage. RUBA Activities For The Coming Quarter RUBA will review the personnel manual that the clerk wanted to make changes to and continue to provide assistance as needed. -75- January — February — March 2010 3” Quarter SFY10 - RUBA Report Pelican Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Dillingham Regional Office 2007 Population: 110 Region: Southeast Local Governments: 1* Class City od Pelican is located on the northwest coast of Chichagof Island on Vee OO Lisianski Inlet. Most of the community is built on pilings over the tidelands. Pelican has a maritime climate characterized by cool summers and mild winters. Summer temperatures range from 51 to 62; winter temperatures range 21 to 39. The city recently acquired the piped water system from Pelican Seafood, A subsidiary of the Kake Tribal Corporation. City water is derived from a dam and reservoir system on Pelican Creek, and is treated with chlorine. 58 of 75 residences are connected to the piped system. The city completed a piped sewage system with ocean outfall in 1989; about 75% of homes are connected to it. The system uses four 10,000-gallon septic tanks and the city hires a disposal truck from Juneau to pump sludge about four times a year. The city provides garbage collection services, recycling, and incinerates the refuse at the landfill. Electricity is provided by Pelican Utility Company. RUBA Activity This Reporting Period Juneau RUBA staff traveled to Pelican and completed a RUBA assessment of management capacity indicators on March 31, 2010. The city had requested an updated RUBA assessment to fulfill a requirement for an ongoing Village Safe Water (VSW) grant-funded project. At the time of the assessment, the City of Pelican successfully met all essential management capacity indicators. The community's water system is still in the state of recovery after an extreme rainfall event that occurred in August, 2009. Flooding caused approximately thirty feet of the water supply flume to collapse leaving the community without drinking water and hydroelectric power. The community is currently using a temporary bypass line to continue water and hydroelectric service. A permanent fix will be made as part of the ongoing VSW funded upgrades to the water distribution system. RUBA staff will stay abreast of the situation and assist as necessary and requested. The community continues to submit supporting documentation on a quarterly basis consisting of monthly financial reports. Current worker's compensation coverage was verified through AMLJIA. =<71- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Yes No Xl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. Xi [] Monthly financial reports are prepared and submitted to the policy making body. QR The utility is current in paying all water/wastewater electric bills. Xi The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X 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. NHR Finances Comments: The City of Pelican is operating with a balanced and realistic FY10 budget. The water, sewer, and garbage budgets are part of the overall city budget. All utility revenues and expenses are listed in the utility portion of the budget. Both city and utility expenses and revenues are in line with budgeted projections. User fees do not produce sufficient income to cover operating expenses or repair and replacement (R and R) cost. Other sources, such as the general fund, are used to subsidize utility operating expenses and savings are used for unexpected repairs. The city engages the auditing firm Altman, Rogers and Co. on an annual basis. The city council is provided monthly financial reports including a monthly profit and loss statement, balance sheet, and budget vs. actual profit and loss. The community has a bulk fuel storage facility which is owned by Pelican Seafoods, a subdivision of Kake Tribal Corporation. The city has adequate funds available and purchases fuel as needed from Pelican Seafoods, which maintains a sufficient level of fuel reserves to accommodate the community's need. Accounting Systems Essential Indicators Yes No XI The utility has adopted a collection policy and actively follows it. xl The utility bills customers on a regular basis. XxX An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. Xl [] An accounts payable system is in place. BS 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. Cc] The utility has a cash disbursement system that records how money was spent. ainable Indicators 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. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. xX Dn = a + Nek - 78 - January — February — March 2010 34 Quarter SFY10 - RUBA Report Accounting System Comments: The City of Pelican has adopted and actively follows a collections policy. Utility bills are distributed on a monthly basis. The account receivables system documents customer payments and reports past due accounts with corresponding amounts. The city actively pursues delinquent utility accounts. The city is currently using QuickBooks Pro for their accounts receivable, accounts payable, and payroll. The city clerk and the assistant city clerk are both proficient in QuickBooks. The mayor recently attended a RUBA sponsored QuickBooks class and is now cross trained to assist when staff may be on travel status or personal leave. The city maintains a written receipt system to record incoming funds and other transactions as a backup for the QuickBooks system. The city clerk completes monthly bank reconciliations. The city uses a purchase order system for all purchases and maintains a cash disbursement system to track expenditures. The city provides water utility services to the local population for the following fees: Residential (unmetered) = $5.60 per month Commercial = $10.40 per month There are currently no fees for sewer use and the water rate is one of the lowest in Southeast Alaska. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. & (OF Theutility is current on filing tax reports. x 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 City of Pelican uses QuickBooks Pro to calculate, track, and report payroll liabilities. The City of Pelican is current with tax reports and tax deposits. The city uses direct deposit for federal payroll tax payments and RUBA staff visually inspected the city's last four quarters of 941 Federal Tax Returns. The city has not received any Department of Labor letters within the past year, however did receive an IRS letter because their deposit was applied to the wrong quarter. The situation with the IRS has since been resolved. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators 4} 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. kX kX We O -79- January — February — March 2010 3 Quarter SFY10 - RUBA Report Personnel System Comments: The city currently carries workers compensation insurance through AMLJIA. The policy runs from 07/01/09 through 06/30/10. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. A copy of the workers compensation policy is posted in accordance with state statute at the following locations: City Hall, City Shop, and the Community Library. Pelican has an implemented personnel policy. The city has written job descriptions for the utility department; however, they have not been updated for several years. The city is lacking in adequate job descriptions for all other municipal positions. The city has a formal evaluation process only for new hires and the evaluations are not necessarily tied to the job description. A satisfactory hiring process is documented in the city's municipal code. There are personnel folders for every municipal employee which contain recommended documentation including an I-9 and job application. The city only uses letters of acceptance for utility positions. The city has a probationary period for new hires that includes systematic orientation, job training, oversight, and performance evaluations. The city provides training opportunities as needed. 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 & OC Theutility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. K IKK x Heke Organizational Management Comments: The city council meets monthly, complies with open meeting requirements and is active in policy making for the utility. The city operates a small level T (treated) drinking water system. The city has two operators working on the utility systems who have the necessary level of certification. The operators have OIT level certifications, which is appropriate given the classification of the facility. The utility has adopted an organizational chart which is included in their utility business plan. -80- January — February — March 2010 3” Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No & C1 Theutility operator(s) are actively working towards necessary certification. Xl 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. Xl The utility has a safety manual and holds safety meetings. Xl Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. RX 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. Ri The utility has completed and distributed its Community Confidence Report (CCR). O KX] The utility is not on the Significant Non-Compliance (SNC) list. Oo XJ The utility maintains an inventory control list. O KX] The utility maintains a critical spare parts list. Operation of Utility Comments: The water utility operators have achieved the necessary certification to operate the utility and are considering further training. The current water system is experiencing some difficulties due to the age of the system, but is operating at the proposed level of service. Buildings attached to the water system need to run water constantly during the winter months so the main line will not freeze. Most of the city is served from a single water pipe. It is common to walk down the boardwalk and hear and see treated, unused water pouring from underneath city structures. The city recently had a major break in the water distribution system; however, the city had the financial resources to fix the problem without a significant interruption in service. The wastewater system is also experiencing problems due to the age of the system, types of pumps in the system, and the available power supply. The community is currently in the construction phase for upgrades to its water and wastewater systems which will solve many of the ongoing problems. The utility operators consult with the Mayor on a regular basis and provide verbal status reports monthly. The Mayor, who also serves as the utility manager does visit the facilities and conducts random spot checks for maintenance items. The utility completes and distributes its Community Confidence Report (CCR) in compliance with State and federal regulations. The operator maintains an adequate level of supplies and some spare parts for the utility, however does not maintain an inventory control or critical spare parts list. The operators have a safety manual and preventive maintenance plan for the sanitation facilities. These are included in the utility operations manual. The operators meet daily and conduct regular safety meetings on a monthly basis which is annotated in a safety log recording the date, topics discussed, and the personnel present at the meeting. In addition to the safety meetings, the operators routinely discuss potential risks and safety procedures before starting a job. -81- January — February — March 2010 3” Quarter SFY10 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will continue to provide assistance as requested. -82- January — February — March 2010 3” 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 od The BIA and Indian Health Service built the community Me on eo 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 On February 1, 2010 Anchorage RUBA staff traveled to Port Lions at the request of the mayor to present utility billing options to the council. Currently customers are unable to understand the billing statements and therefore are refusing to pay their bills. After meeting with the clerk and mayor to discuss issues with the customer billing, RUBA staff created examples of different statement options for the mayor to review. It was decided that the best solution would be to create one statement for the water/ wastewater/ refuse (W/W/R) and separate statements for the harbor and streets/roads. This would mean each customer would receive up to three statements per billing cycle however; any charges or payments made by the customer would be broken down per department and would be easier to read by the customer. RUBA staff assisted the clerk in setting up the new system. The final task completed before departing Port Lions was to review an actual vs. budget report with the Mayor and clerk to discuss recommended budget amendments. The council has been very proactive in reviewing in the city's financial status and planning accordingly. -83- January — February — March 2010 3 Quarter SFY10 - RUBA Report Capacity Indicators Finances Yes No Xl All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. Ri 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. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex) penses. . Sustainable Indicators Rl XH Oo Rk 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: As of October 1, 2008 The City of Port Lions changed the rates to: residents $71.73 ($51.76 for seniors) for water/sewer/garbage haul and 131.51 for commercial rates. The city clerk stated that rates were reviewed and raised with the assistance of the RUBA program to cover operating expenses. The Native Corporation is the community fuel supplier, and the city has budgeted funds to cover fuel purchase for the year. Each month the clerk supplies the council with a financial report, along with a written clerk report. The Mayor reports verbally. 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. Yes No Xl x xX O Xl Xl Xl Xx Sus x kK x tainable 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. -84- January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting System Comments: The city utilizes QuickBooks for accounting and payroll. The city budget is on an Excel spreadsheet. 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 &X C1 Theutility has a system to accurately calculate, track, and report payroll tax liabilities. & CF The utility is current on filing tax reports. Xl The utility is current on making tax deposits. Ol QW& [Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city signed a tax release form. The Internal Revenue Service is reporting they are currently in compliance. The State Department of Labor (ESC) is currently reporting that the City of Port Lions has not yet submitted the third quarter report or payment. RUBA staff will follow up with the city clerk. Personnel System Essential Indicators Yes No Xl 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. C1 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. Xl The utility provides training opportunities to staff as needed and available. kX WH ww 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 7/1/09 - 7/1/10. The clerk stated that the personnel policy the city has adopted and uses should be reviewed and updated in the future. Personnel folders on employees are thorough and complete. The utility's probationary period for new hires is three months. -85- January — February — March 2010 3” 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 1 The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. RRKKRR Organizational Management Comments: The policy making body is active and informed in the policies passed and also in enforcing them. The Mayor and Clerk were knowledgeable of the utility's policies, activities, and financial health. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. Xl 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. 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. HXXRReX w | Operation of Utility Comments: The city has two qualified water operators. The water operator submits a monthly report to the council and reports to the Mayor any significant activity immediately. The main operator is working toward receiving his Level | certification in water treatment. With the assistance of the RUBA program, the 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. - 86 - January — February — March 2010 3” Quarter SFY10 - 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, od The community has piped water and sewer throughout “ay, the entire community; 96% of the homes are fully Fie, pt OP 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 and fixed 95% of the glycol leaks. The waste heat system is also operating again. RUBA Activity This Quarter During this quarter, Kotzebue RUBA talked with the bookkeeper to get updated financial information and reviewed their March 2010 monthly financial report. RUBA staff received a letter from the city administrator stating that he and his council request my assistance and training on updating their 10 year old Code of Ordinances. -87- January — February — March 2010 3 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. 1 The utility is current in paying all water/wastewater electric bills. EK The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Ol & Theutility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators Ol & Theutility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. Xl YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: A realistic budget has been adopted that includes all revenues and expenses for the utility which are documented in a monthly financial report to the council every month. When the community joined ARUC, they provided fuel as in-kind, which should last until the next barge in late June, and they are receiving enough revenues to cover their expenses. Monthly financial reports are submitted to the council for review with the written administrator's report. Budget amendments are completed as needed. Because of emergency water/sewer problems over the years, the city has not been able to save funds for repair or replacement. Currently, the utility receives revenues equal to those budgeted as well as the expenses. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Kl The utility bills customers on a regular basis. Xl An accounts receivable system is in place which track customers and reports past due accounts and amounts. Xl An accounts payable system is in place. Kl The payroll system correctly calculates payroll and keeps records Kl A cash receipt system is in place that records incoming money and what it was for. Xl LJ] __ 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. Xl Monthly bank reconciliation’s have been completed for all utility accounts. Xl (1 The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. ~ 88 - January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Comments: The city has a collection policy. Now that they have an ARUC agreement, they will be able to make sure the council follows their collection policy who is billing customers on a monthly basis. Besides ARUC accounting of their water/sewer utility, the city utilizes QuickBooks for other customers which they use to provide the council with reports of accounts past due and all other accounting functions using their budget as a chart of accounts. Now that they are 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 Xl |] The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl [] The utility is current on filing tax reports. Xl || The utility is current on making tax deposits. RX If there 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 they are current in filing tax reports. They no longer have any outstanding debts to IRS. Personnel System Essential Indicators Yes No Xl 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. XK OC The utility provides training opportunities to staff as needed and available. Oo Kk ww x] O OO Personnel System Comments: The city has workmen's compensation coverage until June 30, 2010 that is posted in the city office. They still owe AML/JIA $5,000 with their payment plan but will be able to pay that off in April 2010. The city has not had recent turnover in personnel so all personnel folders are still current with written job descriptions. The city still utilizes the approved Alaska Municipal League policies that provides a written evaluation process, including probationary period. ARUC has done some operator training and will do cross-training of operators so they can do water, sewer and outside plumbing work if needed. -§89- January — February — March 2010 3” 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). XI The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators HRRNXY X The utility has adopted an organizational chart that reflects the current structure. & OO The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city has the necessary ordinances to give it authority and is the known entity to operate the utility. They have an adopted organizational chart that reflects the current structure and meets as required following the Open Meetings Act. The Alaska Rural Utility Cooperative 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 Xl The utility operator(s) are actively working towards necessary certification. & CO Theutility 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. 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). XK 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 Xl XX 0) Operation of Utility Comments: The operator is certified for wastewater treatment OIT, collection OIT, water distribution 1, water treatment 2 until 2011. ARUC is working on cross training three other operators to be able to assist the city as needed. The system still is on the SNC list because it needs new hardware to resolve the violations. This will require installation of a new recorder that records higher values. It 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. - 90 - January — February — March 2010 3” Quarter SFY10 - RUBA Report RUBA Activities For The Coming Quarter Kotzebue RUBA will make plans to travel to Selawik in late May to work with the staff and council in updating their Code of Ordinances and policies. -91- January — February — March 2010 3” Quarter SFY10 - RUBA Report Shaktoolik Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 214 Region: Bering Straits Local Governments: 2™ Class City, ed Water is pumped three miles from the Togoomenik River to the pump house, where it is treated and stored in an 848,000-gallon insulated tank adjacent to the washeteria. A piped water and sewage collection system services most homes. 75% of households have complete plumbing and kitchen facilities. The school is connected to city water, and has received funding to develop a sewage treatment system to serve the entire community. The city burns refuse in an incinerator. The landfill needs to be relocated; the current site is not permitted. RUBA Activity This Quarter At the request of the City of Shaktoolik, Nome RUBA staff traveled to the community on January 21, 2010, to conduct a RUBA management assessment. The assessment is a condition for funding of an on- going sanitation project to insulate a 100,000 gallon water storage tank. The city clerk has worked approximately 12 years and is very familiar with the management of the city office and water/wastewater services. Financial records are kept manually using the Division of Community and Regional Affairs (DCRA) Model Financial Recordkeeping System taught by Nome RUBA staff. The City of Shaktoolik currently does not meet all RUBA essential indicators. The city council needs to amend the FY10 budget to more accurately reflect the expected revenues for the water and wastewater department. Monthly finance reports have not been generated or provided to the city council. RUBA recommended that the water and wastewater employees attend the AMLJIA monthly safety meetings telephonically. RUBA staff will assist the city staff in changing procedures and meeting all unmet essential and sustainable management indicators. -93- January — February — March 2010 3” 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. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. 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. Kl YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: The FY10 budget was prepared and completed in a timely manner. However, the revenues from the water and sewer utility department were set at $47,000 and the expenditures were identified as $71,000. No subsidy for the excess expenditures was identified. RUBA staff reviewed and identified the number of residential, commercial and school customers and came up with $76,000 total revenue for the department. The city clerk stated that she was making monthly financial reports up until a few months ago, but has not done one lately. She said she uses the Excel spreadsheet format for her financial reports. RUBA will monitor her efforts and help with creating the reports. 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. KK] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XRXK WH = -94- January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Comments: The city clerk has had basic QuickBooks Pro training in the past, but does not currently use it for city accounting. She bills the water and sewer utility customers manually. She has an excellent and basic customer ledger filing system. All record keeping, financial, payroll and payroll reports, are done manually. Tax Problems Essential Indicators Yes No (1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. C1 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. HRKE Tax Problems Comments: The city is still listed on the latest Lien Watch as owing for Employment Security Contribution (ESC) taxes, but actually has a large amount of credit with Employment Security Division. RUBA will assist the clerk in having the recorded lien released. ESD had told the city clerk not to send any payments with the 4th quarter ESC report but she did anyway. So now, the city has a higher credit with ESD. The IRS has deemed the city compliant and states that it is current with 941 quarterly reports and payments. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Kl 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. C1 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. KX OF The utility provides training opportunities to staff as needed and available. Xk KR We Personnel System Comments: The city has one of the oldest and adequately used personnel policies in the Norton Sound region. All city employees, including the utility's use the city's personnel policies. The city clerk has worked as the utility clerk and now as city clerk. The duties of the city clerk and the utility clerk positions were combined to save money. -95- January — February — March 2010 3 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. 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 Xl The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HXXNeeH Organizational Management Comments: The city clerk informs the city council (the governing body for the utility) of any past due customers two or more months and the council then authorizes the utility operator to disconnect the water and sewer utility customers. The last time customers were disconnected was in September, 2009. The water plant operator is certified to Provisional 1 level with Water Treatment training and has earned other certifications. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. Xl 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. 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). XK] 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. HXHORRH w Operation of Utility Comments: The city is on the Significant Non-Complier list for Stage 1 violations. The city utility operator is working with Analytica and Remote Maintenance Worker to get off the SNC list. -96- January — February — March 2010 3” Quarter SFY10 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will work with the city to meet the essential indicators identified: ' Work with RUBA staff on preparing and amending budgets in the near future ' Prepare utility budget by including all anticipated revenues and expenditures ' Resume preparing and making monthly financial report. The sustainable indicators identified are: ' All the city/utility employees should attend the insurance providers (AML-JIA) monthly telephonic safety meetings ' Work with the Remote Maintenance Worker (RMW) to have the utility get off the Significant Non-Complier (SNC) list for Stage 1 violation. The new RUBA staff, Steve Brock, has been assigned to work with the City of Shaktoolik and will work with the city to meet the essential indicators. 97. January — February — March 2010 34 Quarter SFY10 - RUBA Report Teller Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 256 Region: Bering Straits Local Governments: 2" Class City, od Teller does not have a water/sewer utility. Water is “a, hauled from the Gold Run River (20 miles away) by the Nae ot AF city water truck, and delivered to home storage tanks, during the summer. In the winter, treated water is delivered from a large storage tank at the washeteria, or melt ice is used from area creeks. A few residents use their own ATV's or snow machines to haul water. The school operates its own sewer system. Sixty-seven residents and 15 businesses use honey buckets, which are hauled by the city. A few homes and facilities have septic tanks. RUBA Activity This Quarter Nome RUBA staff traveled to Teller twice during this quarter. The first trip RUBA staff traveled with two Village Safe Water engineers and the newly assigned engineer was introduced to the city council during the regular meeting. RUBA staff introduced a new monthly financial report that lists all the months for the fiscal year and is easier to compare with the current and previous months. Nome RUBA staff traveled to Teller March 10-12, 2010 to work with the city clerk to set up a new monthly financial report format in Excel. The city is in the process of restarting billing for the trash and honey-bucket haul services. The city has at least 64 residential customers charged at $35 a month and 10 commercial customers charged at $50 a month. These revenues will be included in the financial reports when the actual billing begins. The city is working with Alaska Municipal League-Joint Insurance Association (AMLJIA) to purchase general liability insurance and workers' compensation coverage. The city has also reported they have completely paid off the past due tax liabilities with IRS, using funds from Norton Sound Economic Development Corporation's Community Benefits Share Program. RUBA staff will work with the city and IRS to get the city's name off the Lien Watch publication. While onsite, RUBA staff learned that the Teller Native Corporation may run out of fuel oil again sometime in April, 2010. The corporation does not have enough fuel storage capacity to last through the year. This has been an on-going issue for the last several years. RUBA staff will monitor the situation. -99- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & O Allrevenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. & © Monthly financial reports are prepared and submitted to the policy making body. Ri The utility is current in paying all water/wastewater electric bills. Ol & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. [] & 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. Xl A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: The Teller City Council has reviewed the FY10 budget and is in the process of revising most of it. The city clerk has also been preparing basic monthly financial statements, starting from October, 2009, with revenues received and expenditures spent. There was sporadic earnings and spending for the months of July-September, with no records kept by the previous administration. The local fuel retailer is projected to run out of fuel oil by April 2010. All residents, businesses, and the city facilities are affected by this. The local store does not have enough fuel storage capacity to last until spring. When the road to Nome opens, the community is able to have fuel oil purchased and transported by a fuel provider from Nome using fuel trucks. The city's trash/honey-bucket haul services provides trash and honey-bucket haul to 64 households, at $35 a month, and 10 businesses, at $50 a month. At 100% collection, the total revenues would be $32,800. The city clerk is in the process of implementing the billing system from QuickBooks Pro accounting software program to start billing the customers. The city currently does not bill the customers as it is trying to figure out the finances from October 2008 to November 2009, when there were minimal financial activities then. - 100- January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Systems Essential Indicators Yes No C1 W& Theutility has adopted a collection policy and actively follows it. C1 & 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. Xl An accounts payable system is in place. & OC Thepayroll 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. ainable Indicators CL) 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. an MRE O Accounting Comments: The city is slowly but surely starting to implement the components of QuickBooks Pro accounting software program. Most of the city's financial recording keeping system is done manually. QuickBooks Pro is implemented to a limited degree. Tax Problems Essential Indicators Yes No xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CF The utility is current on filing tax reports. X The utility is current on making tax deposits. Oo If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city has paid almost all of the past due tax liabilities, other than an old past due account for the old gaming department from 2006. The city clerk was in the process of paying off that past due. RUBA staff is working with the city to get its name off the Lien Watch report. The city's Employment Security Compensation (ESC) employer rate was revised to 1.91% from 5.40%. At the request of the city, Employment Security Division staff from Fairbanks is planning to do an audit on the city's Employment Security Contributions (ESC) payroll records to determine if taxes are due for tax year 2008. - 101 - January — February — March 2010 3” Quarter SFY10 - RUBA Report Personnel System Essential Indicators Yes No XX The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators i} 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. Xx The utility provides training opportunities to staff as needed and available. X eX ww Personnel System Comments: The city is waiting for a quote from Alaska Municipal League-Joint Insurance Assoc. (AMLJIA) to obtain workers' compensation and general liability coverage. The city hopes to get workers! compensation and general liability coverage as soon as possible. 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. 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. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. XXXWORWN Organizational Management Comments: The city council is having the city provide honey-bucket/trash haul services at no cost to the customers as a'good for the health and welfare of the community’. But the city clerk is preparing to start billing all the trash/honey-bucket customers within the next few weeks. - 102 - January — February — March 2010 3” Quarter SFY10 - RUBA Report Operation of Utility Essential Indicators Yes No XK OC Theutility operator(s) are actively working towards necessary certification. Xl O 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. PS 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. INO RI WOO Operation of Utility Comments: Maintenance of the washeteria/water treatment plant is provided by Bering Strait School District. The city does not have a utility operator since the school treats and stores the water itself. The city lost its contract with Kawerak, Inc. to maintain the roads when it started having financial problems. The sanitation services were not provided due to the fact that employees could not be paid, the trash and honey-bucket containers were not being collected as the haul trucks broke down. The city council was down to two council members when most of them resigned for one reason or another. RUBA staff encouraged the remaining council members to make at least two more appointments per Title 29 when there is less than a quorum. As a result of inaction by the past city council, most of the services provided by the city, including the washeteria and the trash/honey bucket services failed. The new city council has made it a priority to provide the sanitation services. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the city clerk and city council to implement QuickBooks Pro; have the city clerk and office aide participate in the next RUBA-sponsored QuickBooks Pro training; continue implementation of the new monthly financial report format with complete usage by the first month of the new quarter; and review collection strategies for the sanitation services. - 103 - January — February — March 2010 34 Quarter SFY10 - RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council od The tribal council operates the washeteria, water treatment plant, container haul system, and electrical 7 services for the community. The tribal council is the policy making body for the utility services. Only one watering point, with storage capacity of 12,000 gallons, serves the entire community, washeteria, clinic, and the school. Residents haul honey-buckets to 21 bins located sparingly throughout the community. A feasibility study was completed to implement a piped water and sewer system in the future. A larger water storage tank, completion of a new lagoon, and water system improvements are the community's priorities. RUBA Activity This Quarter The FY 2010 budget is on file as well as finance reports to March 2010. In January, RUBA staff spoke with Noah Alexie who is the temporary tribal administrator. George Lamont is no longer employed at the tribe. When asked if their contract CPA was still under contract, Mr. Alexie stated that he was not sure and would be getting back to me after he contacted her. The Bethel RUBA office has since been receiving monthly financial reports and other documentation as requested to update the community's RUBA status. - 105 - January — February — March 2010 34 Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. Xx 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. x 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. (1 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. Xue Finances Comments: Tuluksak Native Community (TNC) sent their balanced 2010 budget to the Bethel regional office. Finance reports are up to date to March 2010. Tuluksak contracts with a Certified Public Account for accounting and the manager gives oral reports to the TNC. RUBA recommended a written manager's monthly report be provided and one was received indicating that budgets were reviewed by the council and tribal president and were signed off. Prepaid cards for electric ensure payment for other utility service. A new utility manager hired last January was called into active military duty. An assistant utility manager was hired until the utility manager returns in 2010. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. Xl An accounts receivable system is in place which track customers and reports past due accounts and amounts. Xl An accounts payable system is in place. & CO The payroll system correctly calculates payroll and keeps records Xi A cash 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. Xx Monthly bank reconciliation’s have been completed for all utility accounts. x The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 106 - January — February — March 2010 3” Quarter SFY10 - RUBA Report Accounting Comments: A billing system is set up with individual household accounts. The utility sent out a letter advising consumers that if they did not pay their bill, money would be taken from the electric pre-paid Power Stat cards. All accounting and billing is done with QuickBooks Pro, including payroll tax calculations. When making purchase orders, the purchase order is filled out, the bookkeeper checks it against the budget, and then it is submitted to the administrator for approval. Tax Problems Essential Indicators Yes No X (1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. X (1 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 deemed Tuluksak Native Community non-compliant with unpaid payroll tax liabilities for the third quarter of 2009. Personnel System Essential Indicators Yes No & O1 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. (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. 1 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. Xl The utility provides training opportunities to staff as needed and available. ® OF BR ] Personnel System Comments: Tuluksak has workers compensation insurance coverage through Umialik Insurance Co. effective to May 2010. The tribe provided a copy of the personnel policy and procedures manual with job descriptions. Tribal members that are residents are considered for first employment preference. There is a formal written hiring process and a 90 day probationary period. There were no personnel folders to view. The utility provides training to its employees when funds are available. - 107- January — February — March 2010 3” 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 Xl The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. xX The utility complies with the open meeting act for all meetings. HXXRXXN Organizational Management Comments: There are now two sets of utility ordinances. One is adopted for the sewer haul system. The second is a two part ordinance in anticipation of a piped water and sewer system and was adopted December 31, 2007. The first part of the ordinance establishes a utility board and the second part is for the utility procedures. An ordinance authorizing the implementation of a sewage haul collection fee was adopted June 20, 2006. The tribal administrator formerly worked with a federal grant program. The bookkeeper is proficient in QuickBooks. The city has three operators with certifications for water treatment Operator in Training (OIT) and water distribution OIT. The lead operator also has boiler maintenance training. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. We 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. 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. Xk ke NRX Operation of Utility Comments: The utility is on the Significant Non-Complier list. The violations were discussed at the special meeting of the council by Village Safe Water (VSW). The utility will need to complete monthly testing for twelve months to be removed from the SNC list. A copy of the preventive maintenance plan was provided. Verbal accounts of the operation are given to the manager on a day-to-day basis. If an emergency arises, the administrator is contacted immediately. A copy of the CCR completed in June of - 108 - January — February — March 2010 3” Quarter SFY10 - RUBA Report 2008 is the most recent received by RUBA. The water operator does not have an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will assist the city with deficient indicators at their request. Tasks that would satisfy indicators include: IRS release form; personnel files need to be developed with I-9, job application and letter of acceptance for every employee; all water testing requirements are to be met each and every month; develop inventory and critical spare parts lists; and obtain training for the alternate operator and advanced QuickBooks Pro training for administrative and finance staff. - 109- January — February — March 2010 3” Quarter SFY10 - RUBA Report White Mountain Activity Report Community Overview Lead RUBA Staff: Steve Brock, Nome Regional Office 2008 Population: 215 Region: Bering Straits wea v Local Governments: 2™ Class City od Water is derived from a well near the Fish River and is en treated. All households and facilities are connected to the piped water and sewer system. The school was completely destroyed in a fire and the new school is under construction and will also be connected to the city’s water sewer system. The city has also requested funding to relocate the landfill, the current site is not permitted. RUBA Activity This Quarter Late in this quarter, the City of White Mountain was assigned to new RUBA staff, Steve Brock. An introductory letter has been sent to the community, which will be followed up with further contact in the next quarter. -111- January — February — March 2010 3” Quarter SFY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. & CO Theutility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. Xl 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. Xl 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. Xl YTD revenues are at a level equal to or above those budgeted. Xx [] YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The water and sewer department's collection is now about 94%, which sufficiently covers the expenses for this fiscal year. The utility still has a fairly large amount of past dues from the water and sewer residential customers. Most of the past dues are several years old when 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 Xl The utility has adopted a collection policy and actively follows it. RX 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. Xl An accounts payable system is in place. & (C1 The payroll system correctly calculates payroll and keeps records Xl A cash 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 Xl 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. & CO Theutility 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 uses QuickBooks Pro and is at advanced level. She bills the customers consistently and regularly. She is in the process of taking some or most of the past due customers to small claims court. The utility clerk makes comprehensive monthly financial reports using QBP and Excel spreadsheet. Payroll and payroll records are reported and kept using QBP. -112- January — February — March 2010 3” Quarter SFY10 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xi (1 The utility is current on filing tax reports. Xi (1 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 QBP. Personnel System Essential Indicators Yes No xl 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. bX The utility provides training opportunities to staff as needed and available. WO OO O &% OR WW 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 uses the city's personnel policies. The city clerk supervises the utility clerk and the utility operators. 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. 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 x The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the open meeting act for all meetings. O WORN -113- January — February — March 2010 3” Quarter SFY10 - RUBA Report Organizational Management Comments: The city council enforces utility policy; they have told the utility clerk to collect on the past due water and sewer accounts. However, most of the past dues are over 7 years old and are being purged. The utility clerk will take the rest to small claims court. The utility operators are not currently certified at the level needed to maintain and operate the water and sewer utility. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. Xl 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. x 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. x The operator provides status reports to the manager on a routine basis. Xl The utility has completed and distributed its Community Confidence Report (CCR). Xl The utility is not on the Significant Non-Compliance (SNC) list. 4} (1 The utility maintains an inventory control list. x The utility maintains a critical spare parts list. Operation of Utility Comments: The utility operators are not currently certified at the level needed to maintain and operate the water and sewer utility. The main operator and his alternate need to be certified to Level 1. The utility employees do not hold safety meetings with and for its employees. RUBA staff has recommended to the utility clerk to have the utility employees attend AML-JIA sponsored safety meetings by teleconference. RUBA Activities For The Coming Quarter Nome RUBA staff will work with the utility clerk to make collection efforts on the past due accounts. -114- January — February — March 2010 34 Quarter SFY10 - RUBA Report ——— Eire Sport Non-RUBA Communities Adak Brice Eningowuk, LGS/RUBA, Anchorage Office A new RUBA staff member was hired and assigned to Adak during this quarter. The most recent documentation provided to RUBA includes the FY10 approved operating budget and financial statements from FY 08. The city council has requested city council member training and the city clerk has requested assistance with setting up QuickBooks to track utility transactions and budgets. A QuickBooks course is planned in Anchorage in the Spring of 2010 and a seat will be reserved for the Adak clerk to attend. Information regarding the QuickBooks contractor hotline was also provided to Adak to avail themselves of technical support. The provision of electric service in Adak may soon become a rural energy emergency. The Regulatory Commission of Alaska recently held a hearing to investigate what solutions could be offered to supply grant funds quickly for new generation and distribution systems for the Adak electric utility. Taking part in the hearing were representatives of the temporary electric service provider TDX Adak Generating LLC, the Aleut Corporation, and the City of Adak. The city was unable to provide reliable electric service with the obsolete and oversized equipment left by the military and TDX Adak Generating took over in December 2008. TDX has been able to restore reliable power, but at a substantial financial loss, which it cannot sustain any longer. The system needs a new diesel plant, sized for the smaller community and sited to take advantage of waste heat recovery opportunities presented by large community buildings. The distribution system also needs to replace unreliable components that pose safety hazards. In the long term, there is potential for development of wind and hydro sources for electric generation. However, in the short term there is an immediate need for funding to solve Adak's energy problem before it becomes a life and safety crisis Allakaket Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Allakaket March 29-30, 2010 to train the temporary city clerk/utility clerk and to assist with creating three years of budgets and two years of certified financial statements. These documents are required for Allakaket to access community revenue sharing funds which are used to subsidize sanitation departments. Much of the first day was spent in organizing vendor files to determine how much and to whom the city owed money. Once an approximate idea of the current financial status was determined, the financial reports, ordinances and resolutions for introduction at the next city council meeting were created. Unsigned leases were found and contact was made with the renters; payment will be processed when the leases are signed. Two grants were closed due to noncompliance but two grants that the city may still access were discovered and processed. The municipal boundaries were identified and it was suggested to annex the portion of 'New Allakaket' where residents moved after the 1994 flood. Currently, this population base is not included in the city count which receives community revenue sharing based on population. RUBA staff also assisted Allakaket complete and certify their regular election; the first regular election held in three years. The governing body also serves as the utility board. -115- January — February — March 2010 34 Quarter SFY10 - RUBA Report Ambler Margaret Hansen, LGS/RUBA, Anchorage Office Kotzebue RUBA staff traveled to Ambler January 13, 2010 to provide on site training and assistance on year end financial management and council training on roles and responsibilities using the RUBA Elected Officials training material. The city council is also the utility board for Ambler. In March, the city administrator contacted Kotzebue RUBA to state that the city council had to cut city staff hours worked and staff pay by $2/hr. They have had residential water/wastewater freezing problems requiring overtime for the operators and are using twice as much labor as they budgeted. RUBA advised the administrator to hold a public hearing to do a budget amendment for authorization of the changes. RUBA also recommended a rate analysis for possible rate increase and review the ordinance to see where the homeowner responsibility begins. The city needs to bill homeowners for work done to repair or thaw homeowner lines. It may be necessary to talk to the water operators to explain the situation regarding the cash flow problem. The operators also need to use the work order forms provided in the RUBA utility management class to ensure home owners sign for their liability. Anchor Point Earl Gibson, LGS/RUBA, Anchorage Office RUBA staff traveled to the community during the week of March 22, 2010 and met with the President of Anchor Point Safe Water. 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 communities would be an economic incentive for other business and households to locate there. The communities anticipate 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. Buckland Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Buckland February 22-24, 2010 to conduct a RUBA management assessment. Village Safe Water requires that essential indicators must be met prior to construction funds being released. While onsite, RUBA staff assisted the city staff in completing monthly finance reports. The city clerk had recently attended a RUBA sponsored QuickBooks accounting course in Kotzebue and was putting her new skills to the test. City staff had followed RUBA's advice in getting delinquent customers to sign repayment plans; these repayment plans require the customer pay against past due amounts and stay current with all new billings. In addition, RUBA reviewed the assessment with the mayor. A plan was proposed to request that all customer agreement forms for water/wastewater service require an assignment of rights form to one permanent dividend form per household for a portion of the utility cost. Two weeks later, the mayor contacted RUBA to state that a teleconference with the engineer had occurred. They expect to install a raw water line and lift station that will connect 19 homes in this phase. The mayor reported that during an annual meeting in Buckland, the priority was how to put the honey bucket in the museum. Senator Lisa Murkowski spoke to the annual meeting and promised to research how to move the project forward. - 116 - January — February — March 2010 3” Quarter SFY10 - RUBA Report Chefornak Earl Gibson, LGS/RUBA, Anchorage Office RUBA staff traveled to Chefornak, January 5-7, 2010, to assist the city administrator in reconciling bank statements and developing procedures for control of cash receipts. RUBA staff reviewed documentation for 2007, 2008, and 2009. After a review of some of the documentation, RUBA staff realized that the problems were not a matter of reconciling of statements, but the fact that there was poor documentation of financial transactions. In 2007, RUBA staff found that too much documentation was missing in order to provide a good review. In 2008 and 2009, RUBA staff found a disparity between revenues and deposits. Due to inadequate documenting of transactions, RUBA staff was only able to provide recommendations for future accounting procedures to prevent a reoccurrence. Based on RUBA staff review, the light plant did have procedures in place to monitor transactions, but the system failed to provide credible documentation on cash receipts. In most cases, this information was not clearly documented. As a recommendation, a system should be setup for proper documentation and control of cash receipts. RUBA staff will assist and provide examples of systems that could be used. One suggestion is the use of the manually maintained NEBS Pegboard System, which will help distinguish the amount cash received and the amount of the check received. Another system that may be available to assist the light plant is the system that the Native Corporation uses to control cash and checks received. RUBA staff also provided a copy of the state's Model Financial Record Keeping System and will monitor and provide guidance with filing and keeping other financial documentation in order. Chignik Lake . Barbara Higgins, LGS/RUBA, Dillingham Regional Office RUBA Staff visited the community on March 8, 2010 to provide assistance with Power Cost Equalization (PCE) reporting and tax issues at the request of the community. The tax and lien issues are affecting funding from the Alaska Native Tribal Health Consortium (ANTHC)for the sanitation project. Calls were made to the State of Alaska Department of Labor Tax office in Anchorage as well the Internal Revenue Service. The community is on the Lien Watch Documents. A single release was obtained from Employment Security Division. The other judgments combined are still owed. The community has indicated they are in contact with the council's attorney regarding the matter. RUBA will continue to work with the community and Alaska Rural Utility Collaborative (ARUC) in providing assistance upon their request. Chignik Lake signed an ARUC financial and managerial service agreement in January 2009. ARUC provides required documentation for the RUBA management assessment. Elim Steve Brock, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to Elim on January 28-30, 2010 to provide onsite training for the city bookkeeper. The bookkeeper had requested assistance to implement a new monthly financial format in Excel. The city was using basic QuickBooks Pro format monthly financial reports. The new format has a comprehensive and detailed month-by-month comparison of revenues and expenditures with balances and year-to-date columns. It also provides a column for the adopted budget. When RUBA staff recently completed a RUBA management assessment, the only deficiency noted was the essential indicator requiring a monthly finance report with revenues and expenses compared to adopted budget amounts. -117- January — February — March 2010 3” Quarter SFY10 - RUBA Report Galena Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Galena on March 29-31, 2010 with the RUBA contractor for QuickBooks installation and training. This was the third and final onsite QuickBooks initialization. The receptionist has been trained on many accounting aspects, which include: accounts payable, accounts receivable, billing, payroll, and tax deposits. Currently, a manual is being created specifically for the utility which will include all aspects from the three onsite visits. Assistance was also provided to the utility over the phone and email. RUBA staff also worked with the clerk on grant reporting, local sales tax reporting, and land records research. Golovin Leroy Seppilu, LGS/RUBA, Nome Regional Office Alaska Rural Utility Collaborative (ARUC), run by Alaska Native Tribal Health Consortium, took over the management responsibility of the City of Golovin's water and sewer utility department at the Golovin City Council's request. RUBA staff monitored the management of the water and sewer utility by talking with the city clerk. Although ARUC took over the management of the utility just five months ago, the city council has been generally pleased with ARUC's management performance. Nome RUBA staff made an onsite visit in March to review the municipal election held January 15, 2010. Due to a mix up involving the terms of vacant council seats, the regular election that was to be held in October 2009 had to be rescheduled as a special election in January. RUBA staff had worked with the city clerk to request preclearance by the U.S. Department of Justice for the special election. During this visit, RUBA worked with city administration staff to review the length of the terms and make corrections, review the municipal election ordinances, election timelines, and made recommendations on how to run a municipal election smoothly. Nome LGS staff will contact the clerk to ensure the next regular election in October is conducted smoothly. The elected city council also serves as the utility board. A city council member sits on the ARUC citizens advisory board and monitors the financial reports provided. - 118- January — February — March 2010 3” Quarter SFY10 - RUBA Report Holy Cross Ken Berlin, LGS/RUBA, Bethel Regional Office On February 16, 2010, Bethel RUBA staff traveled to Holy Cross and met with the city council and worked with two bingo workers who helped us in the city office to locate the city budget, finance reports, and other documents. We gathered the accounts payables and put together a list of unpaid bills for the community meeting that evening. RUBA staff went over the FY10 city budget and found math mistakes in the summary report. The last monthly finance report was in September 2009. The Community Revenue Sharing application and budget were not filed. The FY08 Certified Financial Statement and Payment in Lieu of Taxes resolution were not filed. The new city officials have not been elected yet, so the FY09 city officials are still intheir respective positions. Two city council members recently resigned; one of them was the Mayor so the city only has five members and they need to appoint two more members. City employees salaries are paid out of gaming funds. The city has no workers compensation insurance. Payroll tax liability deposits were paid, but only for the bingo workers and not the water and sewer operators or other city workers. The city uses QuickBooks Pro to do their accounting. RUBA staff attended the city meeting that evening and fielded questions about the last city election and how it was certified. Questions on the Alaska Rural Utility Collaborative utility management were also asked. It was recommended that the city hire a city clerk as soon as possible. The city is basically broke now. Quarterly tax reports have not been filed in 2008 for the 2nd and 3rd quarters. A letter from the IRS was discovered which stated the 2006 W-2s were not filed. We requested a Certified Revenue Sharing application and budget resolution template resolutions for the CRS and Payment in Lieu of Taxes (PILT). RUBA assisted city staff with the CRS application/budget and resolutions for CRS and PILT. Work was completed for the FY08 CFS that afternoon. RUBA staff met with acting mayor and went over the FY08 CFS and CRS application and resolutions for CRS and PILT. All are ready to be signed and sent to Juneau and the city should receive all funds available. A job opening was also posted for the city clerk's position. The city is planning to start updating it's code of ordinances and requested Bethel RUBA's assistance. The acting mayor further stated that the city received the community revenue sharing and PILT funds and that he was grateful for our assistance in training city staff on preparation of the required documents. Kackemak Selo Earl Gibson, LGS/RUBA, Anchorage Office RUBA staff was invited by Village Safe Water (VSW) Engineer David Longtin and Lazar Reutov of Kachemak Selo, Inc., to attend presentations in January by three different businesses wanting an opportunity to work on a water system for Kachemak Selo. Each business had a viable plan and after the presentation process, RUBA staff sat in on the evaluation process of the presentations. During the week of March 22, 2010, RUBA staff was invited to the community of Kachemak Selo to attend a meeting to discuss the community's water feasibility study. Project Engineer Loren Leman addressed the group to gather input of community desires for the project. RUBA staff was given an opportunity to be introduced to the community and explain what assistance the RUBA program can offer. During the course of the meeting, the community clearly stated that they do not want a chlorinated water system and would prefer a water source that requires minimum to no treatment. The total cost of the study is expected to be for the allotted grant amount of $200,000. RUBA staff will continue to monitor the project and work with the community to provide any needed assistance. -119- January — February — March 2010 3” Quarter SFY10 - RUBA Report Kake Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff accompanied the RUBA QuickBooks contractor to Kake twice this quarter. The visits were made to provide onsite installation, set-up and training of QuickBooks accounting. A third site visit will occur next quarter and a customized user manual will be provided. Juneau RUBA staff met with the mayor at a two-day rural Sanitation Deficiency System (SDS) planning meeting held in Juneau March 29-30, 2010. RUBA staff and the Alaska Native Tribal Health Consortium (ANTHC) engineer discussed with the mayor the current conditions of the water system and identified areas where the community needed additional assistance or training. RUBA staff and the ANTHC senior engineer have been working together to ensure that the grant requirements for a sanitation master plan are met. In order to receive funding for the master plan, the utility needed to show that it is financially sustainable. This was accomplished by separating out the utility's revenue and expenses in city's overall financial report. The city is also experiencing a serious cash flow problem. Projected FY10 expenses exceed projected revenues by over $100,000. The city is current with all pending obligations but is struggling with becoming current on past bills that were deferred because of lack of funds. RUBA staff will continue working with the mayor and council to identify ways where the city could possibly increase revenues or decrease operating costs. The city satisfied the criteria for a sustainable indicator by developing an organizational chart that reflects the current organizational structure. Kiana Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kiana signed and agreement and became an Alaska Rural Utilities Collaborative (ARUC) community this last quarter. This came very timely as another city administrator resigned so the clerk is the acting administrator right now and is overwhelmed. They did receive monetary assistance from the borough to fix the frozen main that left five homes without water/wastewater for a couple of weeks. Although they hired an outside firm to thaw the main, two are still frozen and will be repaired this summer. Klawock Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff had scheduled on-site assistance for the City of Klawock March 8-10, 2010 including a city council work session on utility rates and improving collections. RUBA staff was also prepared to assist city staff in addressing several deficient RUBA indicators, including review and updating the city's personal policy, organizational chart, and utility safety manual. Inclement weather prevented RUBA staff from reaching Klawock. RUBA staff has worked telephonically with the community and will also reschedule the council work session for April 2010. RUBA staff assisted the city in drafting a letter to the IRS requesting the IRS waive the late filing penalties and explaining the circumstances that resulted in late filings of their 1st and 2nd quarters 2008, and 1st quarter 2009 941 forms. This quarter, the city received official notification from the IRS revenue officer that the city's request to abate $26,000 in penalties was granted. The city is now compliant with all IRS and State EST filing and deposit requirements. - 120- January — February — March 2010 3” Quarter SFY10 - RUBA Report Kobuk Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Kobuk January 20, 2010 to provide onsite assistance on year-end tax reporting and training for the new utility clerk. Kobuk Valley Electric still has a large outstanding balance to Alaska Village Electric Cooperative (AVEC) and a payment plan of $26,000 with another payment due in February 2010. They had only enough fuel to last another five days for the water plant and no money to purchase more fuel. RUBA staff learned that the city owed Brooks Fuel $33,000 for the last two shipments but the IRS had levied all funds in the city bank accounts. The mayor explained that a letter had been received from the IRS holding the mayor and other check signers responsible for unpaid taxes from 2003 and 2006. RUBA staff explained the situation to the IRS, who agreed to lift the levy and return the funds. RUBA staff also helped the city recoup $19,500 from Maniilaq for CITGO fuel vouchers, $7,200 from the borough for rent and $11,000 of other funds. Before leaving Kobuk, RUBA staff completed the federal community economic stimulus application and arranged for AMLJIA to not cancel their workmen's compensation since the city will use stimulus funds to help pay what is owed. The administrator was also assisted in paying the fourth quarter taxes and writing a check for $33,000 for Brooks Fuel, who agreed to deliver fuel in time to save their water/sewer system. Kotzebue RUBA staff returned to Kobuk on March 3-5, 2010. Once again the city was having trouble paying for a new fuel order. Without fuel, the water/wastewater plant would freeze up. They dipped the tank and discovered they had enough fuel for five days. They quit selling fuel to the residents to save the fuel for the water plant and city office building. They agreed to shut down the washeteria to the public as well which will help cut back on heat loss. By the end of the day the account was reconciled and revenue sources were identified to pay for the fuel purchase in January of $15,504. The community was also out of gas. Napaskiak Ken Berlin, LGS/RUBA, Bethel Regional Office The City of Napaskiak took over management of the utilities from the tribe. They have completed the transfer of the accounting records and the process for the approval of the utility ordinance. A copy of their 2010 budget has been submitted to the Bethel regional office. The City of Napaskiak has met all RUBA essential management indicators for the third quarter of 2010. Nelson Lagoon Brice Eningowuk, LGS/RUBA, Anchorage Office On March 16, 2010, LGS Brice Eningowuk was assigned to Nelson Lagoon, filling the position that serves Nelson Lagoon and the surrounding communities. Anchorage RUBA staff traveled to Nelson Lagoon on March 23 to March 26, 2010 at the request of Paul 'Butch' Gunderson Jr., Nelson Lagoon Tribal Council President. The purpose of the trip was to assist with deficiencies found in the RUBA management assessment conducted October 28, 2009. The majority of the onsite visit focused on drafting a budget for all council activities and discussing personnel policies and procedures. Draft budgets were created for all Nelson Lagoon Tribal Council, VPSO, Streets and Roads, Harbor, Clinic, Electric Co-Op, and Environmental Programs. The first draft found that the council was operating at a deficit; however, after review by tribal staff and RUBA, a final balanced draft budget was made that can be presented to the council members at a meeting for an official review. On March 31, 2010 at 1320 hrs the tribal council held a meeting and passed a motion to comply with RUBA indicator requirements. Also during the meeting, the draft tribal council policy and procedures was discussed. Once the budget and minutes are verified, RUBA indicators will be changed accordingly to reflect documentation. -121- January — February — March 2010 3” Quarter SFY10 - RUBA Report Noorvik Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Noorvik January 25-29, 2010 at the city's request to provide needed training for the new administrator on year-end tax reporting issues and financial management. It was discovered that the 2008 W-3 had not been filed along with the W-2's, and that the W-2's were sent to the employees but not to the Social Security Administration. The 2008 W-3s were completed, and city staff was shown how to prepare a worksheet to ensure the Form 941's, payroll journal and W-2's all balance. The fourth quarter 941 had to be amended and then showed a credit due to the City of Noorvik. The 2009 year-end tax worksheet was then balanced with the Form 941's. In addition, an Excel monthly financial report format was completed to-provide the council with much needed reports on spending in comparison to their budget. RUBA staff also met with the water plant operator to discuss operating policies, water testing and landfill permitting with DEC and advised the administrator and a council member on an employment issue and the Open Meetings Act. Old Harbor Tammy Helms, LGS/RUBA, Anchorage Office On January 11, 2010 RUBA staff and the state QuickBooks contractor traveled to Old Harbor to complete the third and final installation and training of the QuickBooks accounting software for the city. RUBA staff and the contractor worked together in entering all transactions from November through the current data into the new company files to combine the utility, general funds and fuel accounts. This will allow for a more accurate financial report to the council and an easier system for reporting to funding agencies. RUBA staff will continue to work with the council to ensure the QuickBooks file created meets the needs of the community and will be available to answer any questions the council and treasurer have concerning the new QuickBooks system. RUBA will require monthly finance reports for a period of 12 months to ensure the accounting processes are accurate. Pilot Point Barbara Higgins, LGS/RUBA, Dillingham Regional Office On January 25-29, RUBA staff sponsored and presented a 32- hour Clerk's Management for Rural Utilities training in Dillingham. The city's clerk which is also responsible for utility billing attended and successfully completed the course. The new city manager was hired last quarter and continues to transition into his responsibilities. Dillingham RUBA staff visited the community on February 8, 2010 in conjunction with The Village Safe Water (VSW) Project Engineer and RUBA assessment grant conditions. A second onsite visit was made on March 2, 2010 with the RUBA QuickBooks contractor to assist in getting the city back on track with their accounting system. The city is pursuing a grant from VSW for new septics to some of the residences as well as a water softening system in residences. The city has been making upgrades to a residence it owns and rents as well as the city municipal building. The city well for city owned building has been under repair for failed pumps and bad test results; work continues on the project. - 122- January — February — March 2010 34 Quarter SFY10 - RUBA Report Port Heiden Barbara Higgins, LGS/RUBA, Dillingham Regional Office RUBA staff assisted the city several times this quarter with electric billing issues, Power Cost Equalization (PCE) reporting, and a federal tax payment issue. The RUBA sponsored QuickBooks contractor traveled to Port Heiden this quarter with RUBA staff to provide QuickBooks accounting assistance in resolving payroll issues, bank reconciliations, processing money in the cash drawer, payables, and receivables. The city is unable to meet all essential criteria in the RUBA management assessment and cannot apply for sanitation projects at this time. The tribe is working with Village Safe Water to secure funding for construction of a washeteria, treated watering point, and some type of system to reclaim/regenerate-water-filtering-systems. The triberhas decided to operate the new facility instead of signing a memorandum of agreement for the city to operate. RUBA will continue to make quarterly trips to Port Heiden to provide management training and assistance to both the city and tribal staff. Stevens Village Brendan Smyth, LGS/RUBA, Fairbanks Regional Office RUBA staff has had frequent contact with the tribal administrator during this quarter. The importance of getting a new RUBA management assessment completed was stressed by both RUBA staff and the proposed project engineer. A trip to Stevens Village was schedule to complete the assessment; however the community canceled the trip and requested it be rescheduled for the following quarter. Staff from the community did travel 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 continue to contact the community and make the village visit on April 19 to complete the assessment. Togiak Barbara Higgins, LGS/RUBA, Dillingham Regional Office On March 22-25, 2010 RUBA staff and the RUBA QuickBooks contractor traveled to Togiak to conduct an onsite visit and install QuickBooks computer accounting for city use. During the visit, RUBA staff and the assistant clerk worked on day-to-day office procedures and prioritizing the duties of the office. RUBA staff assisted the treasurer with bank reconciliations and organization of his office. Assistance was also provided to the temporary city administrator and mayor to determine what open grants currently exist for the city. Training was provided for the new administrator and the mayor regarding what the RUBA assessment meant to the city and how the information for the assessment was derived. RUBA staff then assisted the QuickBooks contractor with creating the chart of accounts, class setup, and the entry of customer balances, memorized transactions, payroll data and customer payments. RUBA staff also discussed the budget and the importance of entering the budget within QuickBooks with the treasurer, mayor, and city administrator and council members. Two follow-up trips will be conducted to provide further training and to create a customized manual for city staff use. On January 25-29, 2010 RUBA staff presented and sponsored a 32-hour Utility Clerks Training in Dillingham. The city clerk attended and successfully completed the course. - 123- January — February — March 2010 3 Quarter SFY10 - RUBA Report Voznesenka Earl Gibson, LGS/RUBA, Anchorage Office On March 23, 2010, RUBA staff traveled to Voznesenka to meet with the President and Vice President of the Voznesenka Community Council, Inc. During the onsite visit RUBA staff discussed the importance of communication between the council and the clerk in order for the utility to function smoothly. The group also discussed the importance of financial information being submitted to the clerk in a timely manner in order for financial reports to be accurately created for council review. The community's Remote Maintenance Worker was also in attendance and stated the utility had various pumps that needed to be replaced but overall, the operation of the plant was running well. A new punch list has been created'and‘needs to be completed inorder to fully turn the facility over to the community. RUBA staff was informed by VSW that construction of sewer piping will begin in the near future. RUBA staff will continue to follow up on activities in the community. -124-