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HomeMy WebLinkAboutRural Utility Business Advisor Program RUBA Quarterly Report July 1 - Dec 31 2010Rural Utility Business Advisor Program RUBA Quarterly Report July 1 - December 31, 2010 First and Second Quarter SFY11 WBA RURAL UTILITY BUSINESS ADVISOR Susan K. Bell, Commissioner Alaska Department of Commerce, Community, and Economic Development Scott Ruby, Director Division of Community and Regional Affairs Elizabeth Manfred RUBA Program Manager 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 July 1 — December 31, 2011 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 July 1 through December 31, 2010. This report describes the activities in two general areas. The first area is in 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). Ronalda Rude-Olivera accepted the position of Local Government Specialist III in Anchorage. Ronalda has previous experience with the Coastal Villages Region Fund (CVRF) as a program director involved with economic development in the Bethel region. She has traveled to many of the villages in the lower Kuskokwim coastal area to work with community leaders on a variety of programs including fisheries employment loans, community grants and fuel acquisition issues. She recently worked for the Kanatak Tribal Council as a business consultant and has lived in Ugashik and Pilot Point. Her experience delivering services to rural Alaska will be a welcome addition to our Anchorage staff and the mission of assisting utilities in the south-central region. Robert Madeson accepted the Local Government Specialist II position in the Dillingham regional office in September. He previously worked as a tax collector for the City of Dillingham. Robert has also provided an educational program to the Dillingham regional communities -for—-the—Bristol Bay Area Health Corporation and had traveled to each community in the region to deliver presentations. Jeffrey Congdon’s first day as a Local Government Specialist II in Fairbanks was September 9. His previous experience in construction and for-profit industry allowed him to travel to almost every community in both the Nome and Fairbanks regions. RUBA Program Scope of Report The Kotzebue RUBA office gained a new employee in December when Georgianna Phillips completed her first day as Local Government Specialist III. She will join Margaret Hansen in providing both RUBA and local government training and assistance to the Kotzebue regional communities. Georgianna brings an impressive background in local government positions including both as the Kotzebue City Clerk and the Northwest Arctic Borough Clerk. Turie Leahu joined the RUBA team in Nome on December 27, 2010. He met the criteria of Local Government Specialist III and will be able to hit the ground running so to speak. Nome was designated as a two person office, however it has been staffed by one person for the past six months. Jurie previously worked for Children’s Services in the Bethel region. Iurie’s educational background includes a Master’s in Public Administration. His writing and presentation skills are a welcome addition to the RUBA team. As of December 31, all other regional offices are currently fully staffed. Anchorage has one vacant LGS I, Il, II flex position was reclassified to the position of LGS IV. The recruitment process is underway with plans to hire in January 2011. The LGS IV will assume the responsibility of direct day-to-day supervision of Dillingham, Kotzebue, Nome, and Fairbanks RUBA staff. Maintaining staffing is becoming increasingly difficult. Applicants with the skill set required to provide financial, technical and managerial assistance to rural communities are offered more pay from non-profits. Prospective employees have completed the recruitment process and then turned down the offer of employment citing the lack of pay. Two of the five recent hires met LGS II qualifications in recruitment for a LGS I, LGS I, LGS III flex position. An employee hired in the LGS II status requires mentoring and their travel must accompanied by an LGS III. This additional supervision and travel limits the time available for the LGS III to service their individually assigned communities. In addition, the required supervision burdens the travel budget in sending two LGS to one community. LGS II hires are expected to meet LGS III criteria within one year of hire and be flexed into that level. Fuel Watch Initiative: In the fall, RUBA staff contacted rural communities statewide to identify communities with winter fuel supply needs and concerns. RUBA identified village councils and municipalities who provide fuel sales and/or sanitation utility services and who cannot receive fuel delivery via the road system. RUBA is maintaining a data base with information on which entities have fuel purchased or plans for purchase to ensure they do not freeze this winter due to lack of fuel. Elections Assistance: A majority of the rural water and wastewater services in rural Alaska are provided by municipalities. The governing bodies of those municipalities also serve as the utility board with the authority to enforce utility policies. October and November are the months that most cities schedule their regular election. RUBA has adopted a preventative maintenance program regarding elections to ensure the municipalities hold state required elections. Staff sends out an election calendar to each assigned community prior to the election and contacts each community with an offer of assistance. Southeast RUBA staff also held clerk classes for all communities on Prince of Wales Island. The result was that every RUBA Quarterly Report — I and 2™ SFY11 -2- RUBA Program Scope of Report community held a successful election even though three of the clerks had less than one year of experience. In addition, RUBA staff wrote and produced an election training video that identifies and addresses several of the procedures most often questioned. The video includes blank forms for each of the election steps and a clerk may adapt the forms for the community based on the adopted city code requirements. Power Cost Equalization (PCE): Rural Alaskan communities continue to request assistance from RUBA staff for training and assistance in completing PCE reports. The PCE program is currently performed within the Alaska Energy Authority (AEA). When communities are denied the PCE subsidy for lack of proper reporting, they are then told that AEA does not have the funds or staff to provide report writing training. During a presentation to the RUBA staff during our annual retreat, PCE staff stated that they are unable to provide training and requested that RUBA staff become responsible for PCE training. The PCE program is currently staffed by two people with no travel budget for onsite assistance. RUBA staff are not funded to provide onsite PCE assistance which is an issue to be addressed. Many rural communities receive PCE subsidy funds for their community facilities and community services such as the water treatment plants or washeterias. PCE staff explained annual and monthly report requirements and provided comments on how RUBA can assist rural communities with submission of their reports. This topic requires additional interagency meetings for discussion. Coordination/Communication Alaska Association of Municipal Clerks: Juneau and Anchorage RUBA staff presented information on Title 29 of the Alaska statutes to the ‘Nuts and Bolts’ workshop held prior to the Alaska Municipal Clerks Conference in Juneau on November 11. The training was designed to teach clerks the relationship of state statutes and local ordinances and how to use both when drafting local ordinances. Over half of the 49 participants have held their clerk position less than one year. Many of them also hold the dual responsibility of Clerk/Treasurer. They are responsible for drafting, reviewing, and maintaining the water/wastewater ordinances and billing and collecting water/wastewater payments. The ‘Nuts and Bolts’ training session was videotaped for use as a training tool to distribute to clerks who were unable to attend or those that are newly hired. Alaska Municipal League (AML): Juneau RUBA staff attended a meet-and-greet lunch with AML staff at the organization’s Juneau office on October 18. The lunch was also an opportunity for RUBA staff to discuss how to ensure that all southeast communities have updated community personnel policies. One of the sustainable indicators states “the utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or RUBA for topics and language.” The RUBA program manager presented a session to Alaska Municipal League (AML) participants in Juneau on November 18. 2010. AML assigned the title of the session as “I’m from the Government and I’m Here to Help You!” This session included a representative from Alaska Energy Authority (AEA) who explained the resources available regarding electricity and fuel assistance, a representative from Village Safe Water (VSW) who discussed the sanitation funding available and RUBA program manager who addressed the RUBA Quarterly Report — 1 and 2™ SFYI1 -3- RUBA Program Scope of Report criteria for the sanitation funding. An unexpected highlight of the presentation was receiving testimony from a Nulato resident stating the benefit of attending RUBA training and encouraging the rest of the audience to contact their assigned RUBA staff for on-site training. Alaska Native Tribal Health Consortium (ANTHC): Per the request of ANTHC’s project engineer, Bethel RUBA staff traveled to Toksook Bay on December 8, 2010 to provide information about establishment of a Memorandum of Agreement (MOA) between city and tribal governments. Potential construction of a new water treatment facility is proposed for 2011. ANTHC and Alaska Rural Utility Collaborative (ARUC) questioned which government would take ownership of the treatment plant when construction was completed. RUBA staff shared a handout regarding MOAs that generated discussion among community residents. Most community members thought that a MOA would result in ‘just one government’ and were not aware of the minimum legal requirements still in place for the city who would still retain ownership and control of its property and assets. Meeting attendees were informed that MOAs were not intended to merge two governments into one; MOAs are a tool that two governments could use to formally agree to share responsibilities so that they might better serve the community. In September, Bethel RUBA staff and the ANTHC project manager traveled to Scammon Bay to discuss several sanitation issues. The flow of raw sewage is entering into the local watershed. The utility’s water system is on the Significant Non-Complier (SNC) list for lack of required testing. A boil water notice has been in place since 2007. A new water treatment plant is in planning stages however, the community’s water distribution infrastructure is also in need of replacement. Bethel RUBA staff briefed the city council on the essential indicators of a RUBA assessment and their underlying principals. ANTHC explained the ARUC decision to deny the city membership at this time. ANTHC supplied a task list to be completed prior to ARUC membership being granted. The city will remain under ANTHC’s billing assistance program. Alaska Rural Utility Collaborative (ARUC): ARUC is a project to develop a statewide centralized utility management and accounting function for small rural member communities. ARUC. The pilot project has grown substantially and continues without monetary support from RUBA. ARUC must meet all RUBA essential management indicators and be assessed quarterly for the communities it manages. RUBA receives and evaluates the monthly finance reports that ARUC prepares for communities they provide water/wastewater management services. ARUC is currently managing 21 utilities statewide. ARUC has also worked closely with the Dillingham RUBA staff on the issues of management in Chignik Lake. ARUC staff asked RUBA staff to identify efforts to assist Chignik Lake Electric utility as well as tax issues prior to the time ARUC utility management began. ARUC discussed the ANTHC project in the community to establish curb stops to residences. This will allow the Remote Maintenance Worker (RMW) to shut off water service for non-payment. ARUC stated a concern for the low collection rate and requested an update from RUBA staff regarding efforts to assist the community. RUBA currently has a signed assistance agreement with Chignik Lake which assures quarterly onsite visits. RUBA Quarterly Report — 1“ and 2" SFYI1 -4- RUBA Program Scope of Report Alaska Tribal Conference on Environmental Management (ACTEM): Juneau RUBA staff traveled to Anchorage in October 2010 to make a presentation to the 16" Annual Alaska Tribal Conference on Environmental Management. The presentation was entitled ‘Working with Council, Boards, and Committees.’ The workshop was designed to promote effective interaction between environmental health staff and their governing bodies, e.g. city councils, tribal councils, utility boards, or utility advisory committees. Participants explored different organizational structures to gain a better understanding of the functions, duties, responsibilities, and the decision making process of governing bodies. The workshop reinforced how constructive communication between staff and the governing body is essential to their environmental health program. The workshop included 45-50 participants from various rural communities. Alaska Water Wastewater Management Association (AWWMA): AWWMaA continues to maintain a training data base for RUBA sponsored class participants. AWWMaA has placed a link on their web site that allows the public and funding agencies to query successful completion of RUBA management courses. AWWMA updates the data base with information provided by RUBA upon completion of each course. This training data base will also trigger the need to issue a utility manager certificate upon completion of all eight courses and the final exam administered by RUBA. Juneau RUBA staff continues to sit on the executive board of AWWMA and participate in - planning trainings for Alaskan rural utilities. Bristol Bay Area Health Corporation (BBAHC): On November 5, Dillingham RUBA staff met with the BBAHC staff. BBAHC was interested in how to incorporate the RUBA «quarterly information in their reports. The opportunity was taken to show the online RUBA ‘report and discuss its significance. BBAHC communities experiencing sanitation and management problems were also discussed. This meeting was a team building session between RUBA and BBAHC Environmental Health Corporation staff. City and Borough of Juneau: In November, Jim Heumann, PE, Water/Wastewater Utility Manager for the City and Borough of Juneau wrote “I recently read your Rural Utilities Business Management and Utility Management Training Program brochures and am interested in the possibility of taking some of your courses. Can you tell me if: (1) any of these courses are scheduled to occur in Juneau in the near future? (2) are they available by correspondence or long distance learning? and (3) can I be of any assistance in helping facilitate Juneau taught courses? Thank you for what you are doing to educate Alaska’s utility professionals.” RUBA and Mr. Heumann are now in negotiations to schedule a management class in Juneau with the City and Borough of Juneau as a cosponsor. Mr. Heumann has also graciously agreed to present a session during the class. CRW Engineers: CRW Engineers requested RUBA assistance in presenting a rate comparison to the Seldovia City Council. Village Safe Water (VSW) engineer and RUBA staff traveled with CRW to Seldovia in September to discuss the council concerns. The city has reached 35% completion of the design plans for the new water treatment plant and the council has concerns that the monthly fees for customers will be higher than the norm for RUBA Quarterly Report — 1“ and 2™ SFY11 -5- RUBA Program Scope of Report other communities. RUBA staff prepared a water and sewer rate comparison for the city using rates from communities of similar size, population, facility service and tourism activity. According to CRW Engineers, water system customers will see a 17% increase in their water bills. After reviewing the rate comparison, the city council voted that the proposed fees were reasonable and the change was necessary. Department of Environmental Conservation (DEC): In October, DEC Drinking Water Program staff contacted Bethel RUBA staff regarding Kwigillingok’s RUBA compliance. The inquiry was made because DEC is considering inviting Kwigillingok to join the Technical Assistance Provider (TAP) group for community assistance. TAP representatives had requested guidance regarding the community’s history of responding to RUBA guidelines and starting points for bringing them into compliance. Kwigillingok’s most recent RUBA assessment reveals deficiencies in the finance area. A copy of the assessment was provided to The DEC staff. On December 3, 2010, Bethel and Juneau RUBA staff co-presented training focused on the principle underlying the financial, accounting, tax and personnel RUBA essential management indicators. Twenty-six attendees to the Sustained Compliance Workshop in Fairbanks were from Anchorage, Bethel, Clear AFS, Delta Junction, Eielson AFB, Fairbanks, Galena, Ketchikan, Kotzebue, North Pole, Palmer, Tok, Wasilla and White Mountain. The presentation included two small group break-out sessions to play Finance Feud and RUBA Jeopardy. The competitive games lightened up the session, gave attendees the opportunity to mix and emphasized key points covered in the Power Point presentation. The training was previously presented to the DEC workshop in Anchorage on September 24. Dillingham City: In November, RUBA staff was invited to Dillingham City Hall to meet with the finance director and assistant finance director. Both finance staff were interested in multiple issues including the need to review city utility rates. They requested assistance in conducting a water/wastewater rate analysis. Copies of the “Water Rate Calculator Book” were provided and an offer to present training to the city council regarding rate setting was discussed. RUBA staff also shared information regarding RUBA management courses available. Division of Emergency Services (DES): RUBA staff maintains contact with DES staff regarding both erosion and fuel issues. Environmental Protection Agency (EPA): On July 27, 2010, RUBA staff and EPA Project Officer Martha Barber traveled to the village of Nanwalek to conduct a RUBA management assessment. The findings from the RUBA assessment will be presented in a written report that includes recommendations, and an offer of assistance will be provided for any capacity indicators that were noted deficient during the visit. The council and community realize the importance of community health, financial stability, effective management and sustainability. On December 15, 2010, the RUBA program manager attended a conference for the Region 10 (Washington, Idaho, Oregon and Alaska) EPA funding recipients. The topic of the conference was EPA’s State Revolving Funds (SRF) program. The RUBA program was RUBA Quarterly Report — 1“ and 2™ SFYI1 64 RUBA Program Scope of Report invited to explore the Loan Applicant Financial Capability Assessment and Credit Monitoring aspect of the SRF program. RUBA has staff statewide who already conduct management assessments for sanitation service providers; the additional task would be to determine the ability of a borrower to make loan payments on time and for the life of the loan. RUBA would not manage the loan program. RUBA staff would assume the responsibility of conducting the onsite assessments in addition to the onsite assessments currently being conducted for sanitation construction grants and receive funds for staff time and travel to complete the community assessment. Ilisagvik College: Ilisagvik College Work Force Development Coordinator Ben Glover contacted the RUBA Program Manager in October to request a regional QuickBooks for Beginners class. He offered the computer lab and assistance in recruiting attendees from the region. RUBA would be required to provide the instructors and materials. RUBA currently contracts Turnagain Press to provide four regional classes annually. The contract is funded to provide utility management staff computerized accounting skills. Mr. Glover was asked to research how many North Slope communities manage their own utilities and how many are staffed and managed by the North Slope Borough. No decision regarding the class request was made until additional information regarding management of utilities is received. Mr. Glover was also interested in scheduling the eight RUBA management courses for students to receive the Occupational Endorsement for Utility Managers certificate offered by the University of Alaska Fairbanks. Kodiak Archipelago Rural Regional Forum: On September 28, 2010, RUBA staff traveled to Kodiak to attend and present at the Kodiak Archipelago Rural Regional Leadership Forum. Forum members are individuals who have demonstrated commitment towards sustainable, healthy rural communities from eight Kodiak villages. RUBA staff updated community representatives of their sanitation project status and of the planned RUBA sponsored personnel for rural utility managers training scheduled for November 1-5 in Kodiak. The forum provided an opportunity for RUBA staff to relay program information and speak with members from each of the communities one-on-one and address the concerns and needs of the individual villages and Kodiak Island as a whole. Kotzebue Community Energy Task Force (CETF): Kotzebue RUBA staff assisted in coordination of CETF receiving a grant to install solar powered hot water systems. Three of the systems were installed in elder’s homes. A certified plumber was trained to install the systems and to either assist with future maintenance of creating a small business to install them throughout the region. Three additional elder’s home will receive the systems in Kotzebue and information will be recorded on how much energy savings the system provides. Norton Sound Health Corporation (NSHC): The RUBA program manager met with the Norton Sound Health Corporation Office of Environmental Health supervisor in Nome on July 27 to discuss operations and training needs of the regional utilities. NSHC offered to cosponsor a RUBA management class in Nome with a tentative date in October. It was noted that utility managers in this region were unable to access the extra training points available on sanitation funding applications for lack of attendance. Supervisor Zweifel also offered to RUBA Quarterly Report — 1“ and 2™ SFY11 -7- RUBA Program Scope of Report review the DCRA community profile sanitation overview data for the Norton Sound region and provide updated input where necessary. RUBA will also receive input from the NSHC Remote Maintenance Worker regarding the operations information documented on the RUBA quarterly reports. Regulatory Commission of Alaska (RCA): Fairbanks RUBA staff attended a public hearing of the Regulatory Commission of Alaska, held in Fairbanks on December 8, 2010. RUBA staff provided the commission members with a brief explanation of the Rural Utility Business Advisor (RUBA) program in helping to promote sustainability of rural Alaska water/wastewater utilities, and also provided some comments regarding the unique challenges faced by those utilities. Dillingham RUBA staff corresponded with RCA staff to discuss the deregulation process of Chignik Lake electric company. Chignik Lake has been suspended from receiving the Power Cost Equalization (PCE) subsidy payments which directly affects the water/wastewater billing. Deregulation of the local power company will allow electric rates to be changed locally and the reporting requirements are less severe. RUBA staff will complete the analysis of the findings regarding the reporting, billing, and management of the electric company and continue to work with RCA and Alaska Energy Authority Power Cost Equalization program to assist the community in stabilizing their electric utility company. On September 29, RUBA staff learned that the RCA has granted the City of Pelican exemption from further economic regulation. With those regulations now lifted, RUBA staff will be able to assist the utility in addressing its fee structure. The city had petitioned RCA to have the regulation requirement lifted as a result of the Pelican Seafoods ceasing operations for a period of twenty-four consecutive months. Remote Maintenance Worker (RMW): RMW Steve Evavold and Anchorage RUBA staff cooperated to publish a 2011 monthly calendar. The calendar includes pictures of rural communities and due dates for trainings, report requirements, holidays, and management alerts. The calendar is published and provided to a limited area of water/wastewater plants at this time, however, plans are to cooperate with additional RMW’s for calendars in their regions. On August 12, the Aleutian region RMW informed RUBA staff that Nikolski’s water utility has been reclassified as a non-public system by DEC and will not be regulated by EPA. Previously there were over 15 residential service connections and 25 people. Currently the system provides water for 12 connections and 18 permanent residents. DEC has recommended that the utility continue regular water testing to ensure safe water for the residents. Rural Alaska Pilot Project (RAPP): On September 9, 2010, RUBA staff attended a RAPP meeting in Anchorage. Also attending the meeting were staff from IRS collections, IRS Indian Tribal Government Specialists and the IRS Taxpayer’s Advocate office. Also attending were representatives from RUBA, Retirement and Benefits, EPA and the Denali Commission. IRS representatives reported that an Employment Tax Workshop is planned for RUBA Quarterly Report — 1“ and 2"! SFYI1 =8- RUBA Program Scope of Report October 19-21 in Fairbanks. RUBA staff reported on several utility management and QuickBooks accounting courses planned over the next three months. RUBA staff also proposed a year-end payroll class, similar to those conducted by RUBA in past years. There were also discussions regarding the IRS Trust Fund Recovery Penalty and a proposed IRS regulation change that would eliminate the use of paper coupons and require use of the Electronic Federal Tax Payment System (EFTPS) after December 31, 2010 for making federal tax deposits. Source Water Collaborative Workshop: The RUBA program manager attended a Source Water Collaborative Workshop in Anchorage on September 15, 2010. The goal of the workshop was to identify small water systems’ critical needs with highly susceptible source water protection areas. From input received, a Drinking Water/Source Operating Plan will be drafted and projected to be implemented within the year. Workshop invitations were extended to USEPA Region X staff, State Primacy Agency personnel, ADEC, local small water system personnel, and other state parties having substantial involvement for small water systems. RUBA was able to provide management information for several small water systems. Staff form Alaska Rural Water Association and RUBA collaborated on rural water management training needs. Southeast Conference: Juneau RUBA staff traveled to Petersburg September 14-16 to attend the Southeast Conference annual meeting and supported the event in several capacities. Due to RUBA’s level of contact with the southeast rural communities and the professional and personal knowledge of the attendees from businesses, municipalities, tribal, and non-profit organizations in the region, RUBA was also asked to assist with the registration and the election. Southeast Conference is a regional, non-profit corporation that advances the collective interests of the people, communities and businesses in southeast Alaska in the areas of economic development, health, education, social services, transportation, energy, and sanitation services. Tanana Chiefs Conference (TCC): Fairbanks RUBA staff met with Melva Traverso, Tanana Chiefs Conference, Office of Environmental Health Training Coordinator to discuss utility management training for the Fairbanks region. Ms. Traverso provided results of a survey she conducted in the TCC region regarding preferences for training courses and training dates. Based on the survey results, it was decided to offer a 32-hour RUBA Introduction to Rural Utility Management training course in Fairbanks October 25-28, 2010. Options for providing a second management course in March was also discussed and a date for the class be set after the October class is completed. Technical Assistance Providers (TAP): RUBA staff participated in a meeting with other tural sanitation professionals on August 18 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 receiving assistance from the group: Gambell, Scammon Bay, Tununak, and Hydaburg. At the August meeting, the group discussed the criteria and performance measures for placing an active community RUBA Quarterly Report — 1“ and 2"! SFYI1 -9- RUBA Program Scope of Report that is demonstrating adequate management in a lower level of technical assistance. The group entertained the possibility of adding Grayling and Napaskiak to the program. University of Anchorage Alaska: In September, staff from the University of Anchorage Alaska, University of Fairbanks, and Michael Hanzuk, Development Specialist, invited the RUBA program manager to a planning meeting regarding setting the agenda for the ‘Cooperative Development in Alaska Workshop.’ This workshop is proposed for October 15 and 16 in Anchorage. Topics to be addressed are the mechanics of operating a cooperative successfully, starting a cooperative, state and federal regulations impacting cooperatives, and examples of cooperatives in rural and urban Alaska. Funding opportunities for Alaska cooperatives will also be addressed. Electric and telephone cooperatives already exist in Alaska with some success. RUBA is interested in gaining information regarding the formation of cooperative rural sanitation projects. Village Safe Water (VSW): Village Safe Water engineers traveled to several communities with RUBA staff between July and December to address community staff as a united front. The goal of the cooperative travel is to emphasize the relationship between continuing to meet essential indicators and receiving construction funding. On September 21, Anchorage RUBA staff met with City of Adak staff, VSW Program Engineer, Drinking Water Program Environmental Specialist, and the Bristol Environmental and Engineering Corporation engineers at the Anchorage VSW office. The meeting was held to discuss the Adak water and wastewater improvement project. The original scope of project has changed and amended to include water main upgrades/downsizes and the removal of some projects that are no longer applicable. RUBA staff also received several financial documents necessary to update the RUBA assessment. Performance Goals Publications: Fairbanks RUBA staff began work on updating the Plain English Guide to Alaska Drinking Water and Wastewater Regulations. This publication is for rural utilities serving 25-1,500 people and was originally published in 1998. Regulations have been updated and new regulations adopted since the initial publication. RUBA staff is coordinating with the Department of Environmental Conservation staff on this effort. The goal is to publish and distribute the updated version by June 30, 2011. Staff Development: A RUBA staff member from Dillingham, Bethel, Juneau, and Anchorage each attended the QuickBooks for Beginners class in Anchorage on October 25-29, 2010. Attendance in this class is required for each RUBA staff during their first year of employment. Class participation develops skills to allow onsite financial assistance to the rural communities using this accounting program. A Fairbanks RUBA staff member attended the QuickBooks for Beginners class held in Nome December 6-10, 2010. RUBA Quarterly Report — 1“ and 2™ SFYI1 -10- RUBA Program Scope of Report Bethel RUBA staff attended an Employment and Pull Tab Tax Workshop in Bethel. The class was presented by two IRS agents working for the Office of Indian Tribal Governments; a tax auditor for the State of Alaska Department of Revenue and field auditors from Alaska Department of Labor. Most of the 25 attendees were council members, administrators, clerks, bookkeepers, accountants, bingo clerks, and bingo managers. Session topics included completing federal 941 and 1099 forms, gaming laws and required taxes, Alaska Employment Security Compensation taxes, electronic payment of federal taxes, independent contractors versus employees, and business travel reimbursements. The workshop provided RUBA staff with an opportunity to learn about administrative and financial problems of small rural Alaska communities and to establish relationships with tribal employee. Juneau and Anchorage RUBA staff attended the Small Water Treatment_and Distribution course in Fairbanks on August 23-26, this course was sponsored by the Tanana Chiefs Conference Office of Environmental Health and was instructed by a University of Alaska Southeast instructor. Subject matter included water treatment processes and provides a base of understanding of water treatment manager functions. November 28 — December 3, 2010, Fairbanks RUBA staff attended an Introduction to Small Water Systems training In Fort Yukon. The training focused on preparing attendees to pass the State of Alaska’s Level 1 Provisional Water Treatment and Water Distribution certification tests. Most of the 14 students who attended are working as water treatment plant operators for tribal or municipal governments in the area. RUBA staff was able to attend the class and use time outside of the classroom to visit people and organizations within the community. RUBA staff also presented a parliamentary procedures training session and how to run effective meetings lesson to the city council at their regular evening meeting. On October 18-21, 2010, Fairbanks RUBA staff attended an Internal Revenue Service (IRS) workshop hosted by the Tanana Chiefs Conference. The workshop included multiple sessions. The IRS personnel presented information on detection of fraud and theft, employment tax, payroll taxes, reimbursement of travel expenses, and definitions pertaining to IRS specifications. Session presenters also included Alaska Department of Labor and Alaska Department of Revenue Gaming personnel. Payroll tax reporting and payments are essential indicators on the RUBA management assessment. 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 109 trips to 74 communities during the first two quarters of SFY11. Fourteen RUBA staff traveled for a total of 343 days providing on-site assistance, conducting management assessments and follow-up assistance, providing guidance relating to utility rate setting, financial accounting and reporting, conducting elections training, developing utility work plans, attending community planning meetings, and assisting in the development of cooperative agreements between city, tribal, and community entities. RUBA Quarterly Report — 1“ and 2™ SFY11 -1l- RUBA Program Scope of Report Management Assessments and Follow-up Assistance: Fourteen RUBA management assessments were completed this quarter. Of the current 177 RUBA assessments completed, 68 are meeting 100% of the essential capacity indicators. Of the 177 assessments, twenty- one communities have requested non-active status and are not submitting documentation based on no funding project in the near future. These communities have not adopted the idea that a RUBA management assessment is a positive resource to gauge current management practices. Of note, 40 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 monthly 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 help line. Turnagain Press is available to assist communities with QuickBooks accounting problems Monday, Tuesday, and Thursday each week from 10 am to 3 pm by calling 907-440-0242. The contractor resolves accounting problems for rural sanitation utility staff concerning all aspects of the QuickBooks software program. The contractor anticipates that most problems will be resolved through phone calls. Assistance is also offered through use of email, review of community accounting files, and remote computer access. For more serious problems, the RUBA contract includes a travel budget to allow a maximum of 15 community site visits per year. This contract increases the management capacity of rural sanitation utilities by correcting accounting deficiencies while building capacity in training local staff. During July 1 through December 31, the helpline assisted 45 communities with 191 calls. In addition, the help line answered calls for assistance from the Internal Revenue Service and RUBA staff. On October 11-14, 2010, Fairbanks RUBA staff traveled with the QuickBooks contractor to Kaltag for the first of three community visits. The QuickBooks contractor installed QuickBooks accounting software and checked the balance sheets. Checking accounts had not been reconciled since 2008 so that became the starting point. The payroll advance function was also explained and practiced. The contractor completed the accounting system reconfiguration with local staff assistance. The QuickBooks contractor returned to Kaltag November 15-18, 2010. Tasks accomplished were development of monthly finance reports, accounts payable, reconciling all reports for 2010, input of all employee records and bringing the accounts current, and completing the process for electronic payment of payroll taxes. RUBA Quarterly Report — 1“ and 2" SFYI1 -12- RUBA Program Scope of Report On September 7-10, the QuickBooks contractor traveled to Chuathbaluk for the first site visit. Chuathbaluk was doing all accounting processes manually and had multiple ledgers and Excel spreadsheets with accounting information for both the city and the tribe. The city and tribal council are different fiscal entities and the contractor set up QuickBooks companies for each. The city and tribe have signed a memorandum of agreement for the city to provide all tribal payroll. The QuickBooks contractor trained both city and tribal staff while onsite. A second site visit by the contractor occurred on November 17-19, 2010. It was discovered that the staff reverted to using some of the old manual system and some of the new QuickBooks system. They are able to print all checks via QuickBooks. Again, one of the first major tasks was to reconcile all bank accounts with the main account listed as $100,000 “overdrawn.” Work was also completed on the budget, creating custom reports, and accounts receivable. Training Classes Presented Bethel: Fairbanks and Bethel RUBA staff presented Financial Management for Rural Utilities in Bethel on November 1-5. Fifteen students completed the 32-hour course. The students included administrators, bookkeepers, and accountants for the tribal governments of Alakanuk, Hamilton, Kipnuk, Kongiganak, Kotlik, Napaskiak, Nunakauyak-Toksook and Pilot Station. An accountant and two tribal operations specialists for the Association of Village Council Presidents also completed the course. The financial management course topics include budgets, chart of accounts, rate setting, collections, financial reporting and management reporting. The small class size allows ample opportunity for students to interact with instructors about unique situations or problems they may have experienced in their utility accounting systems. Anchorage: Turnagain Press presented QuickBooks Pro for Beginners in Anchorage on October 25-29. The class was taught by the RUBA program contractor in the computer lab of the Cook Inlet Tribal Council building. Eleven tribal and municipal employees from Mekoryuk, Nightmute, Nikolai, Kipnuk, Kaktovik, Pilot Point, Hydaburg, Nanwalek, Ekwok, and Chuathbaluk attended the course. Training sessions included: setting up accounts; classifying transactions; preparing balance sheets, profit and loss and budget reports; processing payroll; reconciling bank accounts; billing customers; tracking cash transactions; and backing up and creating portable files. The small class size allowed many opportunities for students to interact with instructors about unique situations or problems they were having with QuickBooks in their communities. The first-hand experience the instructors have working with users in small rural Alaska communities made the course relevant to all attendees. Dillingham: Fairbanks and Dillingham RUBA staff presented Financial Management for Rural Utilities in Dillingham on November 1-5. Fifteen students completed the 32-hour course. The students included administrators, bookkeepers, accountants and a water operator for the tribal governments of Chignik Lake, Manokotak, Nondalton, Pilot Point, Togiak, and Twin Hills. The financial management course topics include budgets, chart of accounts, rate setting, collections, financial reporting and management reporting. The class was requested RUBA Quarterly Report — 1“ and 2™ SFY11 =13- RUBA Program Scope of Report and co-sponsored by the Bristol Bay Area Health Corporation Environmental Health Program. Nome: Turnagain Press presented QuickBooks Pro for Beginners in Nome on December 6- 10. The class was taught by the RUBA program contractor in the computer lab of the University of Alaska computer lab. Bad weather prevented all registered participants from attending. Six tribal and municipal employees from Golovin, Teller, White Mountain, Manokotak, Saint Michaels, and Stebbins attended the course. Training sessions included: setting up accounts; classifying transactions; preparing balance sheets, profit and loss and budget reports; processing payroll; reconciling bank accounts; billing customers; tracking cash transactions; and backing up and creating portable files. The small class size allowed many opportunities for students to interact with instructors about unique situations or problems they were having with QuickBooks in their communities. The first-hand experience the instructors have working with users in small rural Alaska communities made the course relevant to all attendees. Fairbanks: On November 22-23, Fairbanks RUBA staff presented a 16-hour Elected Officials Management for Rural Utilities. The workshop was an abbreviated version of the 32-hour workshop series promoting management and sustainability of water and wastewater facilities throughout rural Alaska. The workshop was co-sponsored by Tanana Chiefs Conference, Office of Environmental Health. Ten students from Allakaket, Fort Yukon, Huslia, Kaktovik, Kaltag, Nulato, and Tanana attended. The students networked with each other and were introduced to the topics of Overview of Government, Role and Responsibilities, Meetings, Ordinances, Policies and Procedures, Financial Management, and Sustainability. Because of the abbreviated time for training, no training reimbursements were offered and class CEU’s were not awarded. Emmonak: Bethel and Dillingham RUBA staff conducted Elected Officials Management for Rural Utilities training in Emmonak on December 13-17. Registered participants from the City of Russian Mission and City of Nightmute were unable to attend due to bad weather. The class was held for three council members from Emmonak and three council members from Mountain Village. The attendees included those new to city government as well as seasoned council members. All stated that they were thankful for what they learned and appreciated the teaching format which allowed them the liberty to stop and ‘camp’ on topics they had questions about or needed further explanation. After the final session, Bethel staff toured Emmonak’s water and sewer treatment plant. Kodiak: RUBA staff from Anchorage, Fairbanks, and Juneau presented Personnel Management for Rural Utilities in Kodiak December 13-17. Ten municipal and tribal participants from Ouzinkie, Old Harbor, Akhiok, Larsen Bay and Nanwalek were in attendance. Topics covered during the training included Personnel Policies and Procedures, Safety Policies and Procedures, Recruiting, Interviewing and Selecting Staff, Orientation and Training, Regulations and the Law, People, Communication and Conflict, and Motivation and Management Skills. All lessons were delivered with a sequence of lectures, interactive discussions, group exercises, worksheets and action plans. Kodiak Island Native Association (KANA) cosponsored the class and provided the training room. RUBA Quarterly Report — 1“ and 2™ SFY11 -14- RUBA Program Scope of Report Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a training mini-grant program to provide airfare and lodging reimbursement to utility staff who attend RUBA sponsored classes. RUBA provided reimbursement to utility staff who attended the Clerks Management for Rural Utilities, Elected Officials Management _for Rural Utilities, Financial Management _for Rural, Personnel Management for Rural Utilities, and two regional QuickBooks for Beginners classes. The training funds require attendance and participation in the complete course prior to reimbursement being issued. Reimbursements for a total amount of $22,798.14 were awarded to 23 municipalities or tribal councils. Several of those 23 reimbursements were awarded for multiple participants representing their community’s sanitation service. RUBA Quarterly Report — 1“ and 2"' SFY11 -15- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report SOOO ee epee Table of Contents Igiugig... Kake ..... Kasaan... Larsen Bay McGrath... Nanwalek .........cscsscesseees Nikolai Ninilchik... Pilot Point Pilot Station 113 Port Heiden .........c.cssscssssccsssesssesssssssscesssscesssesssceseseesesesssscessasssesceseaseccecacessaces 119 Port Lio .........cccsssssscesssscsssscsseccsecsscececessscesensacescoseececeasssescacnacsceneescssecseses, 125 Saint Mary’s.. Shishmaref Tununak IRA Counci White Mountain July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report OE REDE EPO. Table of Contents Non-RUBA Communities Aleknagik ......ccccssscecssssssessssssessssesssssncscsessssssessssesecssenesecsesnssessesussessssusessesassneecusaesecases 171 Anchor POint.........ccsesssscsssessssssssssssescsssescssecescscecssscesssucucesesesscesscasacecesscacseasencecasasece 171 Anderson. Chignik Lake Deering Fort Yukon Hoonah........... Numapitchuk .......ssssessseseseseencesace Saint Michael. Scammon Bay.......scsscssssssesssssssssscssseecssssessescseseesssesseeussessesusscsussssussesnsassesesacaccececsesecee 177 Seldovia........ SHAKtOOK 0.0... secssssessessessessessssssssssecessessceessecsecsssassaeeassscescsnsssessesssensesssecnesusaecnssecsecs 177 Shungnak... Toksook Bay July — August — September — October — November — December 2010 1'* 2" Quarter SFY11 - RUBA Report LOE eee ee Community Activity Reports First and Second Quarter SFY11 July 1 — December 31, 2010 1 na 1 July — August — September — October — November — December 2010 1°'“ 2"4 Quarter SFY11 - RUBA Report SS tr SITLL -~ RUBA Repro Adak Activity Report Community Overview Lead RUBA Staff: Brice Eningowuk, Anchorage Office oy, 2009 Population: 165 Region: Aleutians Local Government: 2™ Class City od Oe The City of Adak operates and manages a piped water Pen OP and sewer system. The city council is the policy making body for the utility. The surface water is derived from Lake Bonnie Rose, which is located approximately three miles southwest of the core town site. The water utility is operated as a Class A public water system and operates under filtration avoidance (Public Water System Identification Number 260595); therefore, the only treatment provided is chlorination with required detention for disinfection. Water is treated, stored in two 450,000-gallon tanks, and piped to facilities and housing units. If needed, two 500,000-gallon storage tanks provide additional water storage. The wastewater treatment system discharges through a marine outfall line to Kuluk Bay. One-hundred percent of homes have complete plumbing. The city collects and deposits refuse at a municipal landfill, Roberts Landfill, which is a permitted Class three landfill with balefil. The city also provides road maintenance, airport maintenance, and a small boat harbor facility. Bulk fuel is provided by the Aleut Corporation, which maintains nine underground tanks with a total capacity of approximately 18,000,000 gallons of marine diesel, gasoline, and jet fuel. Cable television is provided by Adak Eagle Enterprises; electricity is provided by TDX Adak Generating, LLC. A feasibility study to provide recommendations for water and wastewater utility downsizing, upgrading, and future utility project planning for the City of Adak is underway with the Alaska Department of Environmental Conservation: Village Safe Water. As of April 2010 the feasibility study is 95% complete. The study is contracted to the Bristol Environmental and Engineering Services Corporation, which is located in Anchorage. Although the water treatment plant is operating and provides adequate potable water, the City of Adak is attempting to address numerous water and wastewater utility concerns including aging infrastructure, chronic leakage, and maintaining a water/wastewater utility designed a large user/customer base as the military installation has been closed and the population has dropped dramatically. The City of Adak uses the fiscal year that starts on July 1. RUBA Activity This Reporting Period Anchorage RUBA staff met with Village Safe Water (VSW) staff in July regarding the need for a RUBA management assessment. VSW sent a letter to the community stating that the water and wastewater improvement project design phase was near completion. Additional funds for the project to downsize the infrastructure would require all essential indicators of an assessment to be met prior to release of funds. The project is necessary to downsize the original infrastructure built for military service when the general population was several thousand. Current population fluctuates between 100 and 300. In August, RUBA staff received a letter mailed to the City of Adak from VSW regarding the water/wastewater improvement grant. The grant has $1.1 million remaining for improvements. A grant condition to access these funds is for the utility to meet all essential indicators of a RUBA assessment. The city has several indicators marked deficient at this time. RUBA scheduled a trip to the community only to have the city staff cancel the trip at the last minute. In September, RUBA staff met with Adak city staff, VSW, a Drinking Water Environmental Specialist and engineers in Anchorage. The original scope of the project has been amended to include the water main upgrades and downsize some of the -7- July — August — September — October — November — December 2010 1°‘* 2" Quarter SFY11 - RUBA Report projects no longer applicable. Further design aspects associated to the VSW construction phase were discussed. In November, RUBA staff was contacted by the city manager in regards to a tariff revision with the Regulatory Commission of Alaska (RCA) for a rate increase of 136.38% for residential, commercial and self-generation services in Adak. The city manager requested assistance from RUBA in contacting the Alaska Department of Transportation and Public Facilities (ADOTPF), who is a major consumer for airport lighting, in order to submit comments to the tariff proposal. RUBA provided contacted RCA, ADOTPF and Adak city staff with information on how to submit public comments. On November 14, 2010, Anchorage RUBA staff traveled to Adak and conducted an on-site management assessment. City council training was also provided three evenings to five of the seven city council members at their request. Training topics covered were roles and responsibilities, utility rate setting, and effective meetings. Capacity Indicators Finances Essential Indicators Yes No & CO Allrevenue and expenses for the utility are listed in the utility budget. & OC The utility has adopted a balanced realistic budget. & (O Monthly financial reports are prepared and submitted to the policy making body. & OF The utility is current in paying all water/wastewater electric bills. & CO The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. ee eennseenesteeeeneeeeeeneenneeaeeneenenee Sustainable Indicators : Oo KI The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & O YTDrevenues are ata level equal to or above those budgeted. & O yYTDexpenditures are at a level equal to or below those budgeted. & OO A monthly manager’s report is prepared. & (1 Budget amendments are completed and adopted as necessary. Finances Comments: The City of Adak adopted an amended FY11 utility budget on December 15, 2010. There is a utility budget of $81,428 and the expenses are $81,428. A transfer from the General fund is properly documented at an amount of $6,628 and also a transfer in the amount of $14,800 from the garbage was also properly documented. July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ae RR EEL RUD A KPO Accounting Systems Essential Indicators Yes No KX OF The utility has adopted a collection policy and actively follows it. Ke OF The utility bills customers on a regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. K CO The payroll system correctly calculates payroll and keeps records a a 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. le Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. wn 5 s & 5 5 s 10 ] XR Accounting System Comments: The collection policy for the Adak utilities is located in Chapter 4.11 of the City of Adak Code of Ordinances. The City of Adak utilizes QuickBooks Pro 2009 for the accounts payable, accounts receivable and payroll entries. The cash disbursement, cash receipt system is also entered into QuickBooks and has a manual receipt system. Adak also has a firm contracted to handle all payroll tax liabilities along with the QuickBooks entries. A chart of accounts was generated from QuickBooks that shows all income, expenses, liabilities, assets, accounts receivable/payable and bank accounts. Monthly bank reconciliations are made by the clerk and manager, with cash flow statements provided to the council. There is a purchasing policy in the City of Adak Code of Ordinances, Chapter 4.05. Tax Problems Essential Indicators Yes No Kl OF Theutility has a system to accurately calculate, track, and report payroll tax liabilities. & OF The utility is current on filing tax reports. & CO The utility is current on making tax deposits. & OC Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The tax authorization report from November 24, 2010 states that the city is in compliance with federal tax filing, federal tax deposits and has no lien recorded. They are deemed compliant at this time. State Employment Security Division (ESD) has granted a tax clearance for the City of Adak in October 4, 2010. They are deemed compliant at this time. July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No C] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & OC The utility has adopted and uses a Personnel Policy, which has been reviewed by an attomey, AML, or DCED for topics and language. O The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. KX We O OO Ww X O Personnel System Comments: The City of Adak has workers’ compensation with AMLJIA from July 1, 2010 to July 1, 2011. Title V in the code of ordinances provides the hiring process and the probationary period for the city. The manager has the authority to appoint, supervise, and remove employees with council approval. The probationary period is six months. The manager has all employee folders filed in a fireproof locked cabinet within the city office. Training is offered to employees; due to the cost of travel, this is not always available. The city manager is working on updating job descriptions and the evaluation process with AML. 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. LJ} The policy making body is active in policy making of the utility. [] 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). (J The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & OC The utility has adopted an organizational chart that reflects the current structure. y The policy making body meets as required. x The utility complies with the “Open Meetings Act” for all meetings. HRXRRRR Organizational Management Comments: The city owns the utility and updates the ordinances as needed. The council directs employees to enforce the policies and ordinances. The utility manager is the public works director. The director updates the city manager as requested and oversees the operator that has passed the water treatment and distribution exams in the past but allowed the certification to lapse. The operator and city plan for the operator to retake the course and exam as he had excelled in the past. The council meets every first and third Wednesdays and has a posting notice in ordinance of 24 hours. The city has an organizational chart and is under review with Anchorage RUBA staff to verify placement of each employee. -10- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report OOOO Oe ee ee Operation of Utility Essential Indicators Yes No ® [J] The utility operator(s) are actively working towards necessary certification. & CF The utility has a preventative maintenance plan developed for the existing sanitation facilities. —_—_—_—_———— Sustainable Indicators Ch W The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. WO OO DOOwwWOX Wk Rie Operation of Utility Comments: The public works director managed a privately owned water plant in Anchor Point for over 12 years before moving to Adak. The water operator has a Provisional Water Distribution certification due to expire 12/31/2011. The public works director provided information on the cost of chlorine in the meeting on November 17, 2010 to the council and addressed the issue of the amount of chlorine that had to remain in the system to disinfect the water. The manager stated that a safety meeting was held recently with all city employees and this was documented in the minutes of the meeting. No major incidents have occurred with the utility. VSW did upgrade PRV-1 recently. There is a possible line loss as there are areas within the service area that that have connections to vacant and unusable housing. The public works director presented updates to the manager and council ina meeting on November 17, 2010. RUBA staff requested the minutes from that meeting. The water system is not on the SNC list, dated 11/23/2010. The city manager is working on finalizing a critical spare parts and inventory lists as these are in draft form. The Navy did leave behind an excess amount of parts but it is currently unorganized and needs to be inventoried. RUBA Activities For The Coming Quarter Maintain contact with the City of Adak and provide assistance as requested. City manager plans to provide RUBA staff with the budget amendment on December 15, 2010. -11- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report OTE RODA Kepo Akiachak IRA Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office oy, 2009 Population: 645 Region: Lower Yukon Local Government: Tribal Council ry fw Akiachak Native Community-IRA (ANC) operates the Fe AF 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 The Bethel Regional Office sent out information requests on September 21, 2010 and December 21, 2010 so the community's RUBA status could be updated. However, RUBA staff has not received correspondence from Akiachak Native Community IRA (ANC) since July 24, 2010, therefore all essential indicators requiring updated documentation are found deficient. ANC hired a new tribal administrator in late November 2010 who seems willing to work through some of the community's financial problems. The community enrolled in ARUC's billing assistance program in June of 2010 and has expressed interest in full ARUC membership. The community continues to have tax problems. The September-October 2010 Lien Watch indicates ANC has unpaid payroll and gambling taxes from 2009 back to 2003 and is delinquent in depositing federal payroll taxes in 2010. A January 3, 2011 email correspondence from Alaska Department of Labor verified ANC is current with their Employment Security Compensation payments. The community subsidizes its water and sewer operations through gaming proceeds. ANC has not had a State of Alaska Gaming permit since 1990 but continues to hold gaming activities. The tribe applied for a gaming permit in 2006 and it was not granted. On January 3, 2011, the State of Alaska Gaming website indicated that a June 1, 2010 gaming application remained in a pending status for 2010; and there is no current gaming permit on file for the ANC for 2011. A January 4, 2011 email correspondence from Alaska National Insurance Company indicated that ANC’s workers compensation policy is pending cancellation due to payments not being current. After being denied a bulk fuel loan from Alaska Energy Authority, ANC applied for and received a Rural Alaska Fuel Services (RAFS) Bridge Loan which was paid directly to Crowley Petroleum Distribution for their fall of 2010 bulk fuel delivery. A January 4, 2011 phone conversation with RAFS indicated that ANC was past due on their December 2010 and January 2011 Bridge Loan payments. There is also a significant outstanding balance to the Akiachak Bulk Fuel Tank Farm for ANC's share in the operational and maintenance and renewal and replacement costs of the fuel facility. -13- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. sO, Sustainable Indicators KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating O expenses and Repair & Replacement (R&R) costs. Cl W& yvTDrevenues are at a level equal to or above those budgeted. O O O wWwoooo O XXX {J 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. q Finances Comments: ANC has not provided the Bethel RUBA office with an FY11 adopted budget or monthly financial reports since July 2010. On October 4, 2011 the community received an $88K Rural Alaska Fuel Services (RAFS) Bridge Loan which paid for their fall 2010 bulk fuel delivery. A January 4, 2011 phone conversation with RAFS indicated that ANC was past due on their December 2010 and January 2011 Bridge Loan payments. A January 4, 2011 phone conversation with Akiachak Bulk Fuel Tank Farm revealed that ANC has a significant outstanding balance for the tribe's share in the operational and maintenance and renewal and replacement costs of the fuel facility. On January 3, 2011 Akiachak Limited (the community's electric utility) indicated that ANC was five months past due on their water treatment plant, pump station and Laundromat electric bills. ANC did not qualify for a bulk fuel loan from Alaska Energy Authority because it does not have a current State of Alaska gaming permit. RUBA staff contacted the Department of Revenue regarding this matter and was informed that the tribe has not had a gaming permit since 1990 and is responsible for paying state gaming fees for the years they continued gaming without a permit. -14- July — August — September - October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report OE OEE AUDA REPO Accounting Systems Essential Indicators Yes No C1 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. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. O O O Sustainable Indicators O O Xk WHR a 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. C1 The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. WHE Accounting System Comments: The ANC accounting is using QuickBooks Pro. ANC is on a calendar year fiscal cycle. The accountant and bookkeeper are long-term employees and skilled workers who easily accessed records and provided verification needed for the accounting indicators. An example of a water and sewer billing statement, an accounts receivable aging summary, and a collections policy were provided and are in the RUBA files in Bethel. ANC's water and wastewater accounts receivable aging report showed only small amounts that were over 90 days past due. However, other services provided by ANC showed larger amounts 90 days past due. A cash receipt book is used for receiving cash and transactions are entered into QuickBooks. ANC provided RUBA staff with the December 2009 and January 2010 bank reconciliations for the water and wastewater account. An example of a typical purchase order and invoice was provided to RUBA staff. Tax Problems Essential Indicators Kl OF The utility has a system to accurately calculate, track, and report payroll tax liabilities. KI The utility is current on filing tax reports. KJ The utility is current on making tax deposits. 1] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: ANC is not current on filing federal tax reports and making tax deposits. The September-October 2010 Lien Watch indicates the tribe has unpaid payroll and gambling taxes from 2009 back to 2003 and is delinquent in depositing federal payroll taxes in 2010. A January 3, 2011 email correspondence from Alaska Department of Labor verified ANC is current with their Employment Security Compensation payments. -15- July — August — September — October — November — December 2010 I°'* 2" Quarter SFY11 - RUBA Report a PS Personnel System Essential Indicators Yes No O W 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. QR The utility provides training opportunities to staff as needed and available. WoO O Wk Of &® OO Personnel System Comments: ANC workers compensation policy for March 27, 2010 through March 27, 2011 with Liberty Northwest Insurance Corporation was cancelled on June 15, 2010 because of failure to provide tax information for an audit. The State of Alaska Workers Compensation data base indicates that the tribe now has coverage through Alaska National Insurance Company. However, a January 4, 2011 email correspondence from Alaska National indicated that ANC's policy is pending cancellation due to payments not being current. A copy of ANC's personnel policies adopted June 15, 2004 is on file with RUBA. Job descriptions for the tribal administrator, business manager, accountant, bookkeeper, water manager and water operator, along with copies of three 1-9s, were provided and are in RUBA files. ANC's also provided Bethel RUBA staff with two examples of employment verification forms which contained similar information as a letter of acceptance. Evaluations are not mentioned in the tribe's personnel policy and employees indicated evaluations do not occur. ANC should adopt and follow a written personnel evaluation process for their employees that ties job descriptions to the evaluation. An employee's performance should be reviewed and/or evaluated at least once a year. ANC provided the Bethel RUBA office with performance evaluations of two employees that were conducted on March 26, 2010. These evaluations were generic in nature and not directly tied to the employees’ job descriptions. Organizational Management Essential Indicators Yes No O 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. (1 The utility has an adequately trained manager. [] The utility has an adequately trained bookkeeper. C1 The utility has an adequately trained operator(s). (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators C1 & The utility has adopted an organizational chart that reflects the current structure. & (0 The policy making body meets as required. Kl OF The utility complies with the “Open Meetings Act” for all meetings. HRRRRHe -16- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report OE ADA KEpO Organizational Management Comments: A copy of the ANC water and sewer ordinance as well as Akiachak Piped Water and Sewer System Business Plan are in RUBA files. The business plan was completed in January of 2005 and contains the business manager's resume on page 33 and a utility organization chart on page 4. The ANC staff also provided a more current organization chart. However, verification that either chart had been adopted by the tribal council was not provided. ANC's primary water and sewer operator has Operator in Training (OIT) certification for water treatment and water distribution. His certification needs to be upgraded to the new provisional level certificate. ANC's assistant water and sewer operator has a provisional certificate. Both operators need to take the level II test to be in compliance for operating ANC's Class II water treatment facility. Operation of Utility Essential Indicators Yes No &® O The utility operator(s) are actively working towards necessary certification. & OC The utility has a preventative maintenance plan developed for the existing sanitation facilities. neers Sustainable Indicators O The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OOWORR WoO HWONOO Of Operation of Utility Comments: A preventative maintenance plan is on file with Bethel RUBA staff. The water and sewer facility has capacity to service seventy more residences. Construction to connect these residences was scheduled to start in the summer of 2010 but was delayed due to non-compliance with RUBA assessment standards. 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. ANC needs to provide documentation that its Consumer Confidence Report is current. RUBA Activities For The Coming Quarter Bethel RUBA staff is available to assist ANC as requested. RUBA essential indicators will be re- evaluated when ANC provides verification that it has a valid 2011 State of Alaska gaming permit and is current on its repayment agreement with IRS for past due payroll and gaming tax liabilities. The tribe also needs to provide the Bethel RUBA office with an adopted budget for FY11; and monthly financial reports since October 2010, along with minutes from tribal council meetings that verify monthly financial reports have be reviewed and approved by council members. -17- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eee APO. Eek Activity Report Community Overview Lead RUBA Staff: Eli Jacobson, Bethel Regional Office 2009 Population: 282 ~ Region: Lower Kuskokwim Local Governments: 2" Class City od The City of Eek, Public Works Department, operates “a oF the washeteria, water treatment plant, and provides Pretty ot AP honey-bucket services to the community. The City Council is the policy making body for the utility services. Water is derived from the Eek River. The plant is the city’s sole source of potable water for its 282 residents. The plant has water and sewer lines to the school as well as the health clinic. The rest of the town can get water by use of a coin operated watering point located at the plant. The sewage from the health clinic and school is piped into a sewage lagoon. It is filtered, treated, and stored in a holding tank by the water treatment plant/washeteria. A new water treatment plant is complete and is in use. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Eek on August 24-25, 2010. The purpose of the trip was to complete a RUBA management assessment required for sanitation project funding at the request of the community. The city clerk answered most questions and provided documentation that demonstrated Eek meets many of the essential indicators and half of the sustainable ones. Currently there is a washeteria with five industrial washers and dryers. There is also plumbing to the school and health clinic. RUBA staff received a tour of the washeteria and the clinic. Identified essential indicator deficiencies noted in the areas of utility finance, accounting, taxes and organizational management will be identified in a work plan and RUBA staff will provide the necessary assistance for corrections to be made. -19- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No I [] All revenue and expenses for the utility are listed in the utility budget. (1 ®& The utility has adopted a balanced realistic budget. & OO Monthly financial reports are prepared and submitted to the policy making body. & OF The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Ol ®& The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators K] The utility is receiving revenues (user fees or other sources) sufficient to cover operating O expenses and Repair & Replacement (R&R) costs. & CO YTD revenues are ata level equal to or above those budgeted. &: 1 YTDexpenditures are at a level equal to or below those budgeted. & CO A monthly manager’s report is prepared. (1 Budget amendments are completed and adopted as necessary. i Finances Comments: RUBA has received Eek's monthly financial statements through August 31, 2010. The city of Eek adopted the 2011 fiscal budget, but they detected an error. On September 17, 2010 a public hearing was held amending the ordinance, after which it was adopted. Eek's utility FY 10 expenses were $114,251 and the revenue was $112,162. It was explained that they had to replace a $6,000 part during this period which caused a slight budget deficit. The council is provided with monthly financial reports. The meeting minutes reflect the reports are provided by the city clerk. All electric bills for Eek are current, verified by AVEC on December 29, 2010. The city has, on hand, a one year supply of fuel. The city's total budget has not been provided as requested by RUBA staff. Because of this, the city's other sources of income cannot be determined. 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. OO The Utility has a cash disbursement system that records how money was spent. wo IK BOR HRWO O O Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. Cl & Monthly bank reconciliation’s have been completed for all utility accounts. C) & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -20- July — August — September — October — November — December 2010 1°‘ 2" Quarter SFY11 - RUBA Report EY Accounting System Comments: The City of Eek has a written utility collection policy, which they are enforcing, however the ordinance has never been adopted into city code. RUBA staff was shown cash receipts from the washeteria. QuickBooks is used to do payroll and taxes. The city clerk uses a manual system for some of the accounting. The city clerk enters expenses into QuickBooks and has an informal system of comparing it to their bank account by phone. The city clerk makes purchases with verbal approval from the mayor but there is not a written policy. Eek has a detailed chart of accounts. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. & C1 The utility is current on filing tax reports. Kl OF The utility is current on making tax deposits. N I If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: An Authorization to Request Federal Tax Information form was filled out and sent to the IRS. The IRS verified that Eek is current on taxes through December 31, 2010. Eek is current on employment security contributions as verified by the Anchorage ESC office. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Oo The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. X OOH Ol &% we WH X q Personnel System Comments: Eek's workers compensation insurance is through the Alaska Municipal League Joint Insurance Association, Inc for the period from July 1, 2010 through July 1, 2011. Portions of the personnel policy were found in the parks and recreation instruction manual. Written job descriptions were not available. Eek does a written evaluation of all personnel at the end of a ninety day probationary period. Eek did not have a written hiring policy. Personnel folders used to be kept but this stopped three years ago. On the job training and additional training is provided as necessary. Staff are encouraged to pursue further training opportunities. -21- July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - 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. ba C) W& 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. O O The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). u EJ The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators KJ The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. The utility complies with the open meeting act for all meetings. Xe Organizational Management Comments: The city owns the washeteria and water plant. City employees operate these utilities. The city council is the policy making body. The current personnel policy needs to be adopted. The city clerk, Fritz Petluska, performs managerial and bookkeeping duties and also supervises the utility operators and answers to the city council. Fritz Petluska has been to QuickBooks training. RUBA staff was shown an organizational chart that provides the current structure but there was no documentation of its adoption. The policy making body meets the second Thursday of each month which is open to the public. Meetings are posted in the post office, washeteria, clinic, and the main store permanently and not routinely posted. Because of this, special meetings might not be given sufficient notice. Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. x CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & OF 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. Ol & The utility has a safety manual and holds safety meetings. KX OC Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. KX CF 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. | The utility has completed and distributed its Consumer Confidence Report (CCR). & OO The utility is not on the Significant Non-Compliance (SNC) list. (1 W The utility maintains an inventory control list. KO The utility maintains a critical spare parts list. Operation of Utility Comments: The utility has two operators. Adolph Carter is a full time employee and has his level one certification. Fritz Petluska said he will be sending him to level two training in the spring. Joshua James is a part time employee who is provisional. Fritz said he will be sending him to level one training in the spring. The utility operators provided a copy of the preventative maintenance plan. The city clerk is in daily contact -22- July — August — September — October — November — December 2010 I°'* 2" Quarter SFY11 - RUBA Report eee EEO with the utility operators who report to him. The utility has a safety manual but regular safety meetings are not held. The utility is functioning as intended and no major outages have occurred. The CCR has been posted and a copy has been provided to RUBA. The city is not on the SNC list dated July 2010. The utility does not have an inventory control list but does maintain a critical spare parts list in their operation and maintenance manual. RUBA Activities for the Coming Quarter: Ruba staff will continue to work with the City of Eek on the recommended essential and sustainable indicators that need to be resolved. -23- July — August — September — October — November — December 2010 1°‘ 2" Quarter SFY11 - RUBA Report — ————————————————eeSEOOSOOeEO ee epee Ekwok Activity Report Community Overview Lead RUBA Staff: Robert Madeson, Dillingham Regional Office 2009 Population: 109 Region: Dillingham Local Governments: 2™ Class City od Individual wells provide water for the majority of the cn community. Approximately 20 HUD homes have individual wells and are connected to a piped septic system. The city operates a piped sewage system with sewage lift station, which connects to a portion of the community, roughly 16 residences. The remaining homes use septic systems or a flush/haul system. The city operates a sewage pumper. Roughly thirty six of 42 homes have complete plumbing. Landfill services are available at no charge. Ekwok Electric, a city-owned utility, provides electricity services. RUBA Activity This Reporting Period On August 6, 2010, RUBA staff met with Village Safe Water Engineer Lynn Marino regarding the water/wastewater project in Ekwok. Ekwok is currently not passing the essential indicators of the RUBA management assessment. VSW will speak to Ekwok to advise them of the ramifications of not meeting the essential indicators. On August 10-12, 2010 RUBA staff traveled to Ekwok to assist the city with meeting the essential indicators. A request was made by the city to have RUBA staff travel with the VSW engineer. VSW is at 65% completion of the design phase of the wastewater lagoon project slated for construction in 2011. VSW contacted the city to request a meeting with the city council and public to advise the community of the progress made on the project and discuss the next step prior to construction which involves meeting the essential RUBA indicators. The city was advised that they will lose the opportunity for funding if they are unable to meet the indicators and prove local capacity. RUBA staff provides support to the city administrator and assessed what would be needed. A work plan was discussed and timelines were given to complete tasks to increase the scores of the indicators. At the request of the city, RUBA contacted the QuickBooks contractor for assistance in getting Ekwok enrolled in the electronic payroll subscription. Ekwok will need to submit the 941's and quarterly reports to the QuickBooks contractor. RUBA staff contacted the IRS on behalf of Ekwok. RUBA staff had discovered that the Excel spreadsheet used by Ekwok had a formula missing which resulted in incorrect tax submittals. RUBA staff fixed the formula and locked all formulas on the spreadsheet. RUBA staff also discussed the possibility of waiving tax penalties that had incurred due to this issue. On November 30-December 2, RUBA staff traveled to Ekwok and conducted a RUBA assessment. Council training was provided during the trip and additional tax reporting items were addressed. The City of Ekwok was able to meet their essential indicators. Now that the City of Ekwok has met their essential indicators, RUBA staff will continue to help Ekwok work on their sustainable indicators by providing appropriate work plans and support. The City of Ekwok will send RUBA staff confirmation of their IRS Pin number and when the RUBA QuickBooks contractors set up their payroll. Once the VSW project is started, a rate analysis will need to be done, utility billing set up, and appropriate ordinances to cover rates, billing, and collection will be drafted. On November 26, 2010, RUBA staff contacted Ekwok staff regarding the issue of the delivery of their winter fuel, which was flown in on November 23-29. The City of Ekwok has enough fuel for the winter. -25- July — August — September — October — November — December 2010 1°'“ 2"4 Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & (CO Allrevenue and expenses for the utility are listed in the utility budget. 1 The utility has adopted a balanced realistic budget. & OC Monthly financial reports are prepared and submitted to the policy making body. Kl [] The utility is current in paying all water/wastewater electric bills. & CF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Kl || The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. nen ah nanan eae ee Sustainable Indicators O O H & & Oo The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The FY 10 water/wastewater budget is balanced and realistic. Expenditures are balanced with the budget. Monthly finance reports are submitted to the council; these reports compare the adopted budget to the expenses and revenues. Documentation was received showing the city is current in paying the electric bills. The city administrator reported on November 23, 2010 that he had received the winter fuel order. It was air lifted to the community. 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 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. Yes No ® O X CO X kX QO x O MO & Sustainabl O Wf O wf O le Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -26- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report eee ae Accounting System Comments: Currently the City of Ekwok is using a manual ledger system for keeping track of accounts payable. Ledgers are maintained for Bulk Fuel, General Expenses, Utilities, and Deposits and Checks. A ledger is also maintained for bills that are received. Electricity is a pay as you go system. A customer comes in and buys electricity, information is entered on a magnetic card. The card is then used on local meters. Receipts of electrical payments are maintained by the City Administrator. Money and receipts from the Bulk Fuel Farm are brought to the City Administrator on a weekly basis. Receipts are stored at City Hall and a ledger is maintained at the Bulk Fuel Farm. The City of Ekwok will be working with RUBA QuickBooks contractors to set up accounts payable in QuickBooks. The City of Ekwok is looking into grants to update their pay as you go system. Tax Problems Essential Indicators Yes No & C1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. X [J The utility is current on filing tax reports. & CO The utility is current on making tax deposits. & C0 [If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: On January 4, 2011 the IRS Tax Payer Advocate deemed Ekwok compliant. On January 3, 2011 the Alaska Department of Labor (DOL) reported compliance with Alaska ESC tax obligations. Personnel System Essential Indicators Yes No Xl CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ( W® 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 O 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. & (1 The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OF The utility provides training opportunities to staff as needed and available. HH Of Personnel System Comments: The Division of Worker's Compensation web-site verifies current coverage on December 27, 2010. The utility uses the city's personnel handbook. The city ordinances include job descriptions for utility staff. RUBA recommends job descriptions be reviewed at least annually. The city administrator and RUBA reviewed employee files onsite during the quarter. The administrator has updated personnel files and personal data is locked in a file cabinet with a hasp. -27- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Organizational Management Essential Indicators Yes No (1 The entity that owns the utility is known and the entity that will operate the utility is set. C1 The policy making body is active in policy making of the utility. 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). C1 The utility has adopted thé necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX) The utility has adopted an organizational chart that reflects the current structure. J The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. HRNRRRR Organizational Management Comments: The city council serves as the utility board and operates under a water/wastewater ordinance. The administrator is trained, experienced in the role, and serves as utility manager. The electric utility manager is also trained and serves as the primary water operator. Operation of Utility Essential Indicators Yes No ® 1 The utility operator(s) are actively working towards necessary certification. & OC The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X IO oOo OK Rh g Operation of Utility Comments: The city is not required to have a certified water operator or wastewater operator at this time. Sanitation utility staff has been trained in the use of heavy equipment. RUBA recommends staff providing septic pumping services receive basic training including safety procedures. A preventative maintenance plan is in place. RUBA recommends safety meetings be held no less than monthly. The village council operates a summer-only watering point located centrally in Ekwok. RUBA recommends the city stock and maintain a more comprehensive inventory and critical spare parts list including spare tires for the septic pumper. -28 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ee Repo RUBA Activities for the Coming Quarter: Now that Ekwok is meeting the essential indicators, RUBA staff will continue to help Ekwok work on their sustainable indicators by providing appropriate work plans and support. RUBA staff will continue to monitor the City of Ekwok. The City of Ekwok will send RUBA staff confirmation of their IRS Pin number and when the RUBA QuickBooks contractors set up their payroll. The City of Ekwok will notify RUBA staff when they submit payroll taxes. RUBA staff discussed the importance of staying current on paying payroll taxes and providing timely budget reports. RUBA staff will continue to work closely with the City of Ekwok. Once the VSW projected is started, a rate analysis will need to be done, utility billing set up, and appropriate ordinances to cover rates, billing, and collection. -29- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Galena Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Regional Office 2009 Population: 564 Region: Interior Local Governments: 1* Class City od Water is derived from wells and is treated. There is a ‘a, 200,000 gallon reservoir and a community leach field. Pree, AP Sixty one customers are connected to the fully piped system and fifty four customers have water delivered. Some customers only have water delivered as they have private septic systems while others pay the city to dispose of waste water on an as needed basis. The city began operating the landfill, located on the former Campion AFS grounds, in 1997. RUBA Activity This Reporting Period Fairbanks RUBA staff traveled to Galena June 29-July 2, 2010 to complete a RUBA management assessment. The assessment report will be ready for public dissemination in approximately one month. The city population has fallen within range to be eligible for water/wastewater projects funded by the State of Alaska Village Safe Water program, or Alaska Native Tribal Health Consortium (ANTHC). Collection of the information for the assessment was a smooth process as the city clerk and utility billing clerk are both detail oriented and organized. The utility board, also the city council, is active in making decisions for the utilities and all ordinances are codified after passage Fairbanks RUBA staff temained in frequent contact with the community following the assessment. There was no repeat onsite visit this quarter but the city has a very good working relationship with RUBA staff and keeps in contact via phone and email multiple times a month. Topics of support include, but are not limited to: assistance with receiving community revenue sharing and PILT funds, QuickBooks technical troubleshooting, proof reading and editing official city documents prior to submission to the federal government, and creating graphs of data for presentation to the city council/utility board. -31- July — August — September — October — November — December 2010 1° 2"4 Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl [] Allrevenue and expenses for the utility are listed in the utility budget. & 1 The utility has adopted a balanced realistic budget. C) W& Monthly financial reports are prepared and submitted to the policy making body. KX OF The utility is current in paying all water/wastewater electric bills. & OC The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. O W& The utility is receiving revenues (user fees or other sources) sufficient to cover operating EXPENSES. Sustainable Indicators Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. (1 & ytTDrevenues are at a level equal to or above those budgeted. () W& ytTDexpenditures are at a level equal to or below those budgeted. & CO A monthly manager’s report is prepared. (1 W& Budget amendments are completed and adopted as necessary. Finances Comments: The FY11 enterprise budget is balanced and appears realistic. The council is not provided with monthly financial reports, although, the city manager provides a financial interpretation to the council. The meeting minutes reflect the reports from the manager. According to the QuickBooks accounts payable report the city is current in paying its bills. City departments are now being charged for city services. The city has fuel on hand to last into the fall of 2011, the fuel supply was from the Air Force at the time of base decommission. As the fuel was not purchased, the city is not receiving Power Cost Equalization (PCE). The city stated that by summer 2011 enough revenue will be generated to purchase fuel and be eligible to return to PCE. The city revenues are below what was budgeted, for this period 1.4 million is budgeted but actual revenue is 1.1 million so the city is short $381,525. Not all utility customers are paying their bills, for the last three months there is $260,230 owed to the city. Expenses are $187,145 over budget. -32- July — August — September ~ October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eS ee Accounting Systems Essential Indicators Yes No Ol W& The utility has adopted a collection policy and actively follows it. & OC The utility bills customers on a regular basis. & OF Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & OC The payroll system correctly calculates payroll and keeps records & O Acash receipt system is in place that records incoming money and what it was for. Xl [] The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & OF 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. & C1 The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. The accounting staff consists of two people, a temporary financial director from Anchorage and an accounting assistant that are located in Galena. A collection policy is in place; city ordinance states that all city services will be discontinued until payment is made and the city is reinstating a finance charge on delinquent accounts although the Accounts Receivable report indicates that there are a number of customers who are not paying their bills yet are still receiving services. For the last three months outstanding customer payments totals $260,230. The Accounts Payable Aging Summary report for FY 11 shows that the city is current with bills, which is an improvement from the last assessment in 2008 which showed the city as being delinquent with vendors. The city has outstanding debt, primarily a . result of the base closure, but successfully received a one percent, 15 year loan, with the Alaska Municipal Bond Bank for a total amount of $2.45 million. As is standard with all QuickBooks products an adequate system is in place for tracking, recording, and reporting transactions. A wire bound receipt book is used for all customer payments and the receipt is given to the customer while they are in the office. The receipt book is used to enter payments against the customer balance into QuickBooks; this is a daily occurrence. Day-do-day purchases have been restricted; the city is taking a firm stance on purchases to control expenses. All purchase requests must be approved by the city manager who, along with the clerk, are the only employees with access to city debit cards. Tax Problems Essential Indicators & OCF The utility has a system to accurately calculate, track, and report payroll tax liabilities. Kl C1 The utility is current on filing tax reports. 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: QuickBooks accurately calculates and reports payroll taxes. As of December 27, 2010 the Department of Labor deems Galena to be compliant. On December 28 the IRS deems the city non-compliant. -33- July — August — September — October — November — December 2010 r4éy Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No & (O1 Theutility 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. 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 (1 The utility provides training opportunities to staff as needed and available. kh WO Ww O Of Personnel System Comments: Workers compensation insurance is provided through the Alaska Municipal League-Joint Insurance Association and is in effect until July 2011. RUBA has a faxed copy of the notice of workers compensation insurance coverage in the Fairbanks office. The personnel policy and procedure manual is comprehensive; a copy is provided to each new hire with a signature page that acknowledges receipt and is filed in the employee's personnel folder. RUBA staff has copies of job descriptions for city positions. The annual evaluations are based on the job description. RUBA staff and city staff were not able to locate a specific written hiring process. The current process is that a vacancy notice is posted in town at four locations and the notice is read on the local public radio station for ten days. Applicants submit their application and if there is more than one applicant, a list of interview questions is created for the interviewer. Galena Personnel Policies and Procedures Title 15.10.430 (A)(1) (this Title 15 document is separate from the Galena Code of Ordinances as Title 15 in the code has to do with building and construction) states that there are to be two separate personnel files for each employee, one public and one confidential. Between the two files, all necessary documents are retained. Included in the confidential files are evaluations, which are done after the six-month probationary period. New hires are provided with orientation and job-training, to the extent needed for the position. The personnel manual states that ‘the city encourage[s] employees to avail themselves of training and educational opportunities directly applicable to their city positions in order that they may provide more effective service to the public.’ ~34- July — August — September — October — November — December 2010 1°'“ 2"4 Quarter SFY11 - RUBA Report OE OTE DS KEPO Organizational Management Essential Indicators Yes No (The entity that owns the utility is known and the entity that will operate the utility is set. C1 The policy making body is active in policy making of the utility. C1 The policy making body enforces utility policy. The utility has an adequately trained manager. OO The utility has an adequately trained bookkeeper. OO 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 & O The utility has adopted an organizational chart that reflects the current structure. &® CO The policy making body meets as required. & OO The utility complies with the open meeting act for all meetings. HRW Organizational Management Comments: The city is the owner of the water and electrical plants (Galena Code Title 13) and city employees operate both utilities. The city council is the policy making body, the city manager oversees the day-to- day management of staff. Mr. Ben Koontz is the utility manager, not necessarily in title but he essentially fulfills the duties. The city council is very active in setting and enforcing utility policy, as is supported by council meeting minutes. The city manager and ‘utility manager' are fulfilling the job duties. The city uses an Anchorage based person to assist in completing the financial director duties. The cost for the service is large and the time necessary to fulfill the job functions cannot be met on a periodic, visiting basis. The financial billing clerk has attended QuickBooks training and is adequate, to assure that details are not missed it is recommended that bills, payroll, and other minutia oriented functions be carried out away from distractions. The city has an organizational chart that shows the current structure, the policy making body (city council) meetings are open to the public with the exception of executive sessions as allowable by law. Operation of Utility Essential Indicators Yes No Ol & The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. ents 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. 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. q HHXXRX ew OOOOO +352 July — August — September — October — November — December 2010 1°'“ 2"¢ Quarter SFY11 - RUBA Report ssn sameness eee nacaenaneninencenn toe, Operation of Utility Comments: Both water operators (Mr. Beasley and Mr. Miller) have level two water treatment certificates but neither operator has a water distribution certificate. During the last quarterly report at least one operator had a distribution certificate. A preventative maintenance plan is located in the plant. The utility manager provides operation and maintenance reports to the city manager who includes them into a report for the council. AMLJIA provides telephonic safety meeting which are attended by city staff. Operations of the utility are functioning as intended and no major outages have occurred. The most recent CCR has been completed and RUBA obtained a copy. The city is not on the SNC list dated November 23. RUBA Activities for the Coming Quarter: Phone and email help as needed, no travel currently scheduled. -36- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report — OL OE TEL - RUBA Kepo Hooper Bay Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2009 Population: 1158 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City os 4 The City of Hooper Bay operates multiple watering Vanna, et 0m . points within the village and a solid waste site and wastewater lagoon. The residents self-haul their own garbage and honey buckets. The Hooper Bay Utility Advisory Board advises the city council on utility operations and management. The new school, teacher housing, old clinic, head start building and washeteria are connected to the piped water and wastewater. The new washeteria/water treatment plant is now operational. The watering point at the old town site is connected to the new water treatment plant. The Traditional Council is pursuing a solid waste management grant to upgrade the existing lagoon. Over 75 homes were to be connected to the water and sewer lines by the end of FY08. The water and sewer project was planned to be completed in 2010. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Hooper Bay on July 12-14, 2010. The city had not submitted their FY09 Certified Financial Statement, FY1 1 Budget, or FY11 Payment in Lieu of Taxes resolution. RUBA assisted the bookkeeper in viewing data and printing certified financial statement (CFS) and budget manual files. RUBA discussed the benefits of providing detailed revenue and expenditure information in formats similar to those provided in the State's CFS and annual budget manuals. RUBA also provided examples of detailed monthly financial reports and explained that financial reports should be listed as agenda items and presented at regular council meetings and documented in meeting minutes. The city's electric bills were reviewed and Alaska Energy Authority (AEA) was contacted to determine if any of the city facilities might be eligible for Power Cost Equalization (PCE) credits. The city is now aware of which facilities are not currently receiving PCE credits and were provided with application forms to submit to AEA for consideration. The city will realize approximately $80,000 per year in adding the water treatment plant and wastewater lift stations to the PCE report. Assistance was provided with preparing their FY11 PILT resolution. The administrator also reviewed the C ommunity Sanitation Overview section of city's RUBA assessment and provided corrections and updates. RUBA staff toured the water treatment plant and took photos of the city's new water treatment facility and washeteria. Before departing, RUBA had the opportunity to visit with former city administrator Rafael Murran who had worked for the city for many years before retiring in June 2010. He gave an overview of his efforts to secure funding and alternate energy sources to cover the long term operating costs of city’s new water treatment facility. -37- July — August — September — October — November — December 2010 1'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No {& (1 Allrevenue and expenses for the utility are listed in the utility budget. & CO The utility has adopted a balanced realistic budget. & CO Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. & (1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. eens Sustainable Indicators KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating O expenses and Repair & Replacement (R&R) costs. & O YTDrevenues are at a level equal to or above those budgeted. | YTD expenditures are at a level equal to or below those budgeted. & OA monthly manager’s report is prepared. [J Budget amendments are completed and adopted as necessary. Xl Finances Comments: The city has submitted an adequate FY 2011 Budget which was adopted on June 22, 2010. Bethel RUBA office has received monthly financial reports regularly from the city for the last four years. In June and July of 2010 the city added more detail to their monthly reports which will be very helpful. Minutes from August and September council meetings documented that the city council reviewed financial reports from July and August of 2010. An October 14, 2010 correspondence from AVEC indicated that the city is current with all its electric accounts. The city consumes approximately 40,000 gallons of fuel oil annually. An October 13, 2010 correspondence from the city administrator indicated that the city has 50,212 gallons stored at the water treatment plant tank farm and that should be enough fuel to last until the first fuel delivery of 2011. 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. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators x) C1 A chart of accounts is used that identifies categories in a reasonable, usable manner. x (1 Monthly bank reconciliation’s have been completed for all utility accounts. O KX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXX WRN X OOOO -38- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report —_—_—_—————— ise se_. HU RT ee Accounting System Comments: A January 2005, 'City of Hooper Bay Water, Sewer and Solid Waste Business Plan’ is on file at the Bethel Regional Office. Sections 11-17 outlines the city's collection policy. All of the above indicators are reviewed through reports received from the community on a monthly and quarterly basis and are on file in the Bethel RUBA office. Water and wastewater billings are sent out the first of every month. The utility uses QuickBooks Pro 10 for its financial accounting. 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. Kl CO The utility is current on making tax deposits. iv) [1 If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility uses QuickBooks Pro 10 for its payroll accounting. A September 30, 2010 correspondence from the IRS indicated that the city is compliant with its federal tax filings and deposits. The payroll tax deposits are made electronically and copies of deposit slips are on file in the RUBA Bethel office. An October 14, 2010 phone conversation with the Alaska State Department of Labor confirmed compliance of tax reports and deposits through the second quarter of 2010. Personnel System Essential Indicators Yes No Xl [] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ® (1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. | [1 The utility provides training opportunities to staff as needed and available. O OW Of &% WO WO Personnel System Comments: An October 13, 2010 phone conversation with the city's workers’ compensation carrier, Alaska Public Entity Insurance, indicated the city was current through June 2011. The insurance company indicated the city had coverage for 23 full time employees. RUBA staff has copies of documentation for the above indicators on file. -39- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eee ABE KPO Organizational Management Essential Indicators Yes No Xx (1) The entity that owns the utility is known and the entity that will operate the utility is set. C1 The policy making body is active in policy making of the utility. (The policy making body enforces utility policy. (The utility has an adequately trained manager. C1 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 x (1 The utility has adopted an organizational chart that reflects the current structure. Xl (1 The policy making body meets as required. Xl C1 The utility complies with the open meeting act for all meetings. WHNXR Organizational Management Comments: The utility has an adopted ordinance, however a new water and wastewater ordinance that meets the requirements of the Regulatory Commission of Alaska (RCA) is being considered for adoption by the city council. The administrative, finance staff and water operator are competent long term employees. The city continues to make sure the operators are current with certification. Operation of Utility Essential Indicators Yes No & 1 The utility operator(s) are actively working towards necessary certification. X 1 The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators C1 The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X IO Of OWWRR WO HHO Operation of Utility Comments: On October 22, 2010, CE2 Engineers emailed the city (and Bethel RUBA staff) a copy of 'City of Hooper Bay Water Treatment Plant and Washeteria Preventive Maintenance Plan and Records and Reporting’ for review and approval. In the email CE2's engineer mentioned that the Preventive Maintenance Plan will eventually be included in the larger Operation and Maintenance (OM) Manual for the city's water treatment plant and washeteria. The OM Manual will also include a Health and Safety Plan, an Inventory Control List and a Critical Spare Parts List. However, no projected date of completion was given for OM Manual. The city was not on the July 20, 2010 Significant Non-Complier (SNC) list. - 40 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ———————————— EL OE TLL A RUDA Repo RUBA Activities For The Coming Quarter A complete operation and maintenance manual plan is needed for the new washeteria/water treatment plant. An inventory control list, safety manual, and a critical spare parts list need to be included in the OM Manual. -41- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ———— OSE ee Hydaburg Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Regional Office 2009 Population: 353 Region: Southeast Local Governments: 1“ Class City od The city operates a level | water distribution and © ncaa, pe Om 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, own and operate diesel power systems in Hydaburg and Craig, which provide electricity to many Island communities. RUBA Activity This Reporting Period In July, RUBA staff met with the city administrator to discuss progress made on a RUBA work plan to address deficient essential and sustainable management indicators. RUBA staff scheduled a travel date in August to visit the community and conduct a current assessment subject to certain goals. The agreed upon goals include that the water operator receive formal training and actively pursue the necessary certifications, continued enforcement of the utility ordinance and collection policy, and adoption of the FY11 budget. The city administrator and mayor have drafted the budget, however it has not been introduced at a public hearing. On August 4 and 5, 2010, Juneau RUBA staff traveled to Hydaburg to meet with city officials and complete a RUBA management assessment. The city administrator, city clerk, contracted CPA, and water operator were able to provide RUBA staff with documentation that they are meeting all essential indicators for the first time in many years. Additionally, the city has made significant improvements in the utility collection rate and is due to install updated piping and metering equipment at the water treatment plant next month. The city will continue to work actively towards obtaining the necessary certification for the utility operators and to put systems in place to ensure the utility's long-term sustainability. The city's ability to pass the RUBA assessment is an important achievement because it establishes the city's eligibility to apply for and receive sanitation project funding. As a condition for maintaining their current RUBA status, the city will need to submit financial and management documents to the RUBA program on a quarterly basis. Effective September 10, 2010, the Department of Environmental Conservation's Drinking Water Program rescinded the Boil Water Notice issued for Hydaburg's Public Water System in October 2008. The lifting of the boil water notice is another step in the city's efforts to advance their financial, managerial, and technical capacity in the administration of public sanitation facilities. The lifting of the boil water notice also allows the water system to meet an additional RUBA sustainable indicator. The water system is now assessed as operating at the proposed level of service. In November, RUBA staff assisted the clerk in the development of an appeals process for utility customers who believe that their utility services were disconnected unfairly. The city recently began enforcing the utility billing collection policy by disconnecting water services for non-payment in accordance with their utility ordinance. In response to the service disconnections, there have been several instances where aggrieved customers have threatened and verbally abused utility staff. With input from the mayor, RUBA staff and the city clerk have initiated the drafting of an ordinance establishing an appeals process for the city council to consider. -~43- July — August — September — October — November — December 2010 1°'* 2"¢ Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XJ (© Allrevenue and expenses for the utility are listed in the utility budget. & OF The utility has adopted a balanced realistic budget. & © Monthly financial reports are prepared and submitted to the policy making body. & CF The utility is current in paying all water/wastewater electric bills. & OF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators x || The utility is receiving revenues (user fees or other sources) sufficient to‘cover operating expenses and Repair & Replacement (R&R) costs. & O YTDrevenues are ata level equal to or above those budgeted. & (1) yYTDexpenditures are at a level equal to or below those budgeted. bd A monthly manager’s report is prepared. & C1 Budget amendments are completed and adopted as necessary. Finances Comments: The City of Hydaburg uses the fiscal year of July 1 through June 30; however, the municipal code stipulates a fiscal year of January 1 through December 31. The fiscal year 2011 budget was adopted by anon-code ordinance on July 20, 2010. The budget is separated by funds with each fund listing proposed revenues and expenses. The funds included in the FY11 budget are: general fund, capital project fund, harbor deferred maintenance, water sewer upgrade, water sewer and garbage, and harbor and docks. The budget ordinance compares the proposed FY11 budget to the adopted FY 10 budget; however, it fails to include a comparative statement of actual expenditures and revenues for the preceding fiscal year, which is recommended by RUBA and required by Hydaburg Municipal Code. Recent city council meeting minutes show that financial information is being reported on a monthly basis. The monthly financial statements include a balance sheet and a budget verses actual profit and loss. 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. The city usually maintains a one to three month fuel supply. 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 costs. It has been a general practice for the city to subsidize the utility's operating expenses and repair and replacement costs through other sources. The adequacy of the subsidy and the council's willingness to supplement the water, sewer, and garbage funds is evidenced through a $31,000 general fund transfer into the FY11 utility budget and the allocation of $50,000 from the FY11 Community Revenue Sharing payment. FY11 revenues and expenses are in line with budgeted projections. The council continuously monitors the budget and makes occasional budget amendments to accommodate for increased or decreased revenue and/or expenditures. The last budget amendment adopted by the governing body was on July 20, 2010. A review of city council meeting minutes for the last year shows that the mayor, administrator, city clerk, and public works foreman routinely provide both written and verbal reports on operational and financial issues surrounding the water, sewer and garbage utilities. -44- July — August — September — October — November - December 2010 1°‘ 2" Quarter SFY11 - RUBA Report — nett SETTLE RUBA Repo Accounting Systems Essential Indicators Yes No & CO The utility has adopted a collection policy and actively follows it. X C2 The utility bills customers ona regular basis. Kl O Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & © Anaccounts payable system is in place. & C1 The payroll system correctly calculates payroll and keeps records PS a 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. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. = a > = s a Hew OO0 Accounting System Comments: The city has an adopted collection policy that is contained in Title 13 of the Hydaburg Municipal Code. In February 2010, the city council committed to enforcing collections on utility bills and discontinuing water service to past due customers. This increased effort on collections has produced a stable source of income for the utility. The collection rate calculated from February 1, 2010, through July 31, 2010, was 94%. 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 city uses a cash receipt log to record incoming cash payments and checks not accompanied with an invoice. Along with the cash receipt log, the customer is provided proof of payment through written receipts. The city uses three different receipt books to separate funds and places account codes on all receipts to ensure incoming cash payments are recorded properly. The city clerk reports that all bank accounts have been reconciled. The city uses a purchase order system, which requires review and signature by the administrator or mayor. To prevent overspending, the approving official compares the proposed purchase against remaining FY11 appropriations prior to approval. Tax Problems Essential Indicators Yes No Kl OF Theutility has a system to accurately calculate, track, and report payroll tax liabilities. KX CO The utility is current on filing tax reports. KX CO The utility is current on making tax deposits. Kl C1 Ifthere 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. 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 (ADOLWD). -~45- July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report The City of Hydaburg is deemed compliant with Federal and State tax reporting and deposits requirements. Personnel System Essential Indicators Yes No & Cl 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: 1-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X (1 The utility provides training opportunities to staff as needed and available. &X Wk ww O OOF oO Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska National Insurance Company. The policy is effective from July 1, 2010 through June 30, 2011. 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 at city hall, harbormaster office, and water treatment plant. The personnel policy was last reviewed and updated by the city council in January 2010. 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 city clerk 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. The city clerk and accounts receivable clerk attended a 32-hour Utility Clerks training in April 2010. 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 Xl (1 The utility has adopted an organizational chart that reflects the current structure. X (1 The policy making body meets as required. x (1 The utility complies with the open meeting act for all meetings. HXNMXXR - 46- July — August — September — October — November —- December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report eee EE APO Organizational Management Comments: The City of Hydaburg owns and operates the water and wastewater utilities. The city council is the governing body for the water and wastewater utilities. A review of meeting minutes for the last six months verifies that the council is actively engaged in decision making on behalf of the utilities. The council meets on the first and third Tuesday of each month and 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 day-to-day bookkeeping duties are accomplished by the city clerk. The accounting contractor from Aurora Corporate Enterprises reviews the city clerk's work and provides ongoing bookkeeping training. The contractor also prepares and presents financial statements to the city council, prepares the city for financial audits, and prepares grant progress and financial reports. In addition to formal operator training courses, the water operator is receiving ongoing hands-on training from the remote maintenance worker (RMW). 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. Operation of Utility Essential Indicators Yes No 1 The utility operator(s) are actively working towards necessary certification. & C1 The utility has a preventative maintenance plan developed for the existing sanitation facilities. eee neeeeenenennsneenensessenennnstensesennsessnsnnsnnenn 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. 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X g WORRReX ww OWOOO Operation of Utility Comments: The city operates the following sanitation systems: Level 2 Water Treatment Level 1 Water Distribution Level | Wastewater Collection The water operator, Douglas Mathena, has achieved the following certifications: Water Treatment Provisional Expires 12/31/2012 Water Distribution Provisional Expires 12/31/2012 The water operator is working towards achieving the necessary certifications. The operator's provisional water treatment certificate can be upgraded once he meets the level | eligibility requirements. In addition to the level | water treatment training and testing, the operator completed the intermediate water treatment course on March 18, 2010. The Hydaburg public water system is no longer listed as a 'Significant Non-Complier' as of October 2010. Effective September 10, 2010, the Department of Environmental Conservation s Drinking Water Program rescinded the Boil Water Notice issued for Hydaburg's Public Water System in October 2008. The utility completed and distributed its Consumer Confidence Report (CCR), as required by the Safe Drinking Water Act, on February 2, 2010. In previous two years, the utility had failed to distribute the required Consumer Confidence Reports. To address this deficiency, the utility included both 2008 and 2009 water testing data in the current CCR. -47- July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report 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. RUBA Activities For The Coming Quarter RUBA staff will provide ongoing support to help the utility maintain its current level of management capacity and provided assistance for the unmet sustainable indicator. As a condition for maintaining their current RUBA status, the City will need to submit financial and management documents to the RUBA program on a quarterly basis. Goals for this quarter include: Reviewing water utility rates, and schedule the billing clerk for RUBA QuickBooks training. -48- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ———————— — ————————————eeeeeEeESSOOE—E eee Pe Igiugig Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2009 Population: 65 Region: Dillingham Local Government: Tribal Council ed Igiugig is a village located within the Lake and Peninsula Me, Borough and is at the south end of Lake Iliamna and at the headwaters of the Kvichak River. Igiugig is home to 65 year round residents, 20 who are school age children attending the Igiugig School which is part of the Lake and Peninsula school district. Igiugig is the hub for seven lodges and was reported to have as many as 15-20 air carriers a day during peak fishing season transporting fishers to and from the lodges. The village council provides a flowing water and sewer system to 13 residences and businesses and 17 homes are on the sewer system that pumps into a 2 lagoon holding system. The system has 2 lift stations. In the newer part of the community the homes are on individual water and septic systems and considered too far from town to be placed on the piped system. It was noted by residences of the newer part of town, it takes a great deal of treatment to the water to have good water. The systems are quite elaborate and cost a great deal of electricity and added cost in the filtering systems. There is a local watering point at the pump house in town. The village council owns and operates the washeteria, fuel distribution and sales, provides electricity, a library, has a class 3 landfill, vehicle rentals, a community green house, gravel sales, a building that houses the clinic and a very modern and self contained construction man camp. The village rents the state owned Maintenance/Airport building as the council offices and village maintenance shop. The village has a grocery store, post office, school operated by the Lake and Peninsula Borough and a Russian Orthodox Church and cemetery. The runway is a state owned facility and is 3,000 feet in length. The village council owns various pieces of heavy equipment, a roller, two dump trucks, a loader and grader, a rock crusher, dozer, 3 fuel trucks and a'septic pumper trailer that is towed behind a village owned truck. The power plant is owned by the village council and produces electricity that is sold to the community. All the power lines are underground and at the new end of town three wind turbines are on line and feed into the power grid. A community green house is under construction and power for the green house will be generated from the wind turbines. The community water which is ground water had higher than allowable levels of arsenic and other metals. An elaborative system was installed by the ANTHC to specifically address and remove the arsenic levels in the current ground water that is piped, to meet required regulations and standards. There were problems in getting the system to operate correctly but has been corrected and is working to the extent and purpose intended. The operator is certified and looking to continue certification. There is a backup person trained and is a certified operator that lives in the community. The village council is currently in the design phase through ANTHC for a water/sewer project. This project will utilize surface water out of the Kvichak River system. The project will be a surface water intake system with a 50,000 gallon water storage tank with a membrane filter. RUBA Activity This Reporting Period Dillingham RUBA staff traveled to Igiugig on July 19-21, 2010 to conduct a RUBA management assessment. The village council staff was well prepared and had all documentation available during the site visit. This preparation was in part due to a visit the Alaska Native Tribal Health Consortium (ANTHC) had made prior to RUBA's visit. During the RUBA site visit, the village council -~49- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report administrator gave RUBA staff a tour of the community and projects that are currently underway in the village. Igiugig is a progressive community striving to be ecologically responsible as well as planning and providing for sustainability of the culture and infrastructure in the community. The power cost equalization program has provided some challenges to the utility clerk who is working through the request of the Alaska Energy Authority (AEA). RUBA staff has provided assistance with these reports. The tribal council has many active grants and projects that are either in design or feasibility stages. The Bureau of Land Management's Division of Cadastral Survey contacted staff to announce they will conduct surveying and platting of Igiugig's ANCSA 14(c) lands this coming summer. Upon completion of the surveying, the Igiugig Village Corporation will be able to make land transfers to homes, businesses, non-profits and the community itself. Land will be identified and deeded for the infrastructure including the water plant. Capacity Indicators Finances Essential Indicators Yes No & (1 Allrevenue and expenses for the utility are listed in the utility budget. & (1 Theutility has adopted a balanced realistic budget. & © Monthly financial reports are prepared and submitted to the policy making body. & C1 The utility is current in paying all water/wastewater electric bills. & OCF Theutility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & (1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & 1 YTDrevenues are at a level equal to or above those budgeted. & CO YtTDexpenditures are at a level equal to or below those budgeted. & OC A monthly manager’s report is prepared. & 1 Budget amendments are completed and adopted as necessary. Finances Comments: The utility has adopted a balanced and realistic budget which is part of the General Fund and classed as community services. The village council operates its accounting system on the accrual basis. Revenues are exceeding expenditures for the time period ending November 30, 2010. The overall accounting procedures shows revenues are recorded when earned and expenses are recorded when a liability is incurred. The council adopts budgets for grant funds, but is not required to adopt a budget for its General Fund. The administrator is exploring adopting a General Fund Budget. Monthly financial reports are prepared and submitted to the village council board. The utility is subsidized from the borough revenue sharing program, cash dividends and income from bulk fuel sales. The village council operates the bulk fuel storage distribution and sales. Capacity is 110,400 gallons for storage which includes heating oil, gas, avgas, and another storage exists for propane which exceeds a 5,000 pound capacity. Purchases for bulk fuel are made on a cash basis. Fuel previously was barged in, but due to changes in federal and state regulations for transporting fuel and added reporting requirements, the village council has elected to have fuel flown in by Everts Fuel Service. Currently the community has requested 2,000 gallons per day until capacity is reached. It is reported Igiugig Village Council's primary source of revenues (excluding separately held special revenue funds) are generated from fuel sales. July — August — September - October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report a ea cpremeen — Mactober— Sovember = December 2010 Ty 2 Quarter SFY11 - RUBA Repo Accounting Systems Essential Indicators Yes No ® ‘The utility has adopted a collection policy and actively follows it. & (1 The utility bills customers ona regular basis. XK OF Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. Kl (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. XO 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. & OO Monthly bank reconciliation’s have been completed for all utility accounts. & OF Theutility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The utility has a collection policy and the bookkeeper reports an 8% profit margin during this November 30, 2010 reporting period. QuickBooks is used for all accounting functions as shown by the chart of accounts. Bank reconciliations are done monthly. The utility provides receipts to customers upon payment. In addition, payments are recorded manually and then entered into QuickBooks. Customers are billed on a monthly basis through QuickBooks. There is a cash drawer which is used as petty cash and to cash checks. There is no bank in the village and it was reported that the cash drawer is balanced each day but in most cases, a check for cash is sent into the bank for cash. Deposits are made weekly. Purchase requisitions are the mandatory method of procurement. The village council has a procurement policy and procedure manual and adheres to it. Tax Problems Essential Indicators Yes No XI The utility has a system to accurately calculate, track, and report payroll tax liabilities. & (1 The utility is current on filing tax reports. XK C2 The utility is current on making tax deposits. 4} [] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Tax Payer Advocate report received January 3, 2011 deemed the taxpayer compliant. No recorded Notice of Federal Tax Liens was reported. On December 22, 2010, the State of Alaska Department of Labor and Workforce Development, Employment Security Division granted the tax payer tax clearance through September 30, 2010. The entity was not found on the State's Lien Watch list. July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No Xi The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators xX The utility has adopted and uses a Personnel Policy, which has been reviewed by an attomey, 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. C1 The utility provides training opportunities to staff as needed and available. KX WX Xe O OO XI Personnel System Comments: The village council has a personnel policy and has all jobs listed with a position title, pay range, objective, qualifications, duties and responsibilities, who the employee reports to and the duty station of that employee. A code of ethics has been adopted that is used for guidance of the village council employees as well as village council member treatment of employees. There is oversight of the employees and a probation period as well as a regularly scheduled evaluation period. The village council is the largest employer of the village. All employees are encouraged to further their education and, whenever training opportunities are available, they are encouraged to attend. Personnel files were viewed and are orderly with certifications, job descriptions, I-9, job application, letter of acceptance, W-2's, W-4's and time cards. The personnel files are kept in a locked cabinet. The utility has a posted worker compensation insurance policy through the Alaska National Insurance Company in effect. The Division of Worker's Compensation website verified policy #10KWW88329 is current on December 23, 2010. 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. Kl (1 The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. 10000 HRXXNRE OO July — August — September — October — November ~ December 2010 1°'“ 2" Quarter SFY11 - RUBA Report eee EAPO Organizational Management Comments: The Igiugig Tribal Village Council is known as the entity that operates the utility and has an organizational chart with a five member board. The water and wastewater system falls under community services and supports three part-time positions who answer to the village administrator. There are two operators with current certifications. The financial officer of 20 years does the billing and collections for the utility. The utility has an ordinance that sets fees, regulations and penalties. Currently under review by the board, is a more comprehensive utility regulatory ordinance that addresses operations and maintenance as well as establishes service areas, rates, description of services and rules and regulations of the utility. The board meets as required, follows the open meetings act and uses Roberts Rule of Order for parliamentary procedures. Operation of Utility Essential Indicators Yes No & CO 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 : LJ 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. be oo XRWXNkK Ww ooo0o0 Operation of Utility Comments: The utility manager is the operator, is certified and has requested to participate in the RUBA utility management trainings. The utility has a preventative maintenance plan that was developed for the system by Bristol Bay Health Corporation. There are regular site visits made by the remote maintenance worker assigned to Igiugig. The utility has a spare parts inventory list and an operations and maintenance log. The utility has not suffered any major problems or outages due to management. The 2009 Consumer Confidence Report is posted and is on file with the Dillingham Regional Office. The utility is not on the Significant Non-Compliance List. The village council has a safety manual for the utility. A safety walk-through with the remote maintenance worker occurs during each quarterly visit. RUBA Activities For The Coming Quarter RUBA staff will continue to be available to the tribal office upon réquest. July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ——— Oe SITLL RUBDA Repo Kake Activity Report Community Overview Lead RUBA Staff: Glen Hamburg, Juneau Regional Office 2009 Population: 497 Region: Southeast Local Government: 1" Class City ed The City of Kake is located on the northwest coast of Se, pm Kupreanof Island along Keku Strait, 38 air miles northwest of Petersburg and 95 air miles southwest of Juneau. The city operates a water treatment, water distribution, and piped sewer system in addition to providing refuse collection, recycling, and hazardous waste disposal. The Inside Passage Electric Cooperative (IPEC), a non-profit subdivision of the State of Alaska, provides electrical services to the city with three diesel-fueled generators RUBA Activity This Reporting Period Juneau RUBA staff traveled to Kake on July 20, 2010 and conducted a RUBA management assessment. It was discovered that Kake had not adopted the FY11 budget and did not actively follow the collection policies found in the city code. These two items prevented Kake from meeting all essential management indicators. Kake, however, has made significant progress in developing the accounting system and was active in seeking training for the utility operators. While in Kake, RUBA staff met with the city manager to develop a RUBA assistance work plan. The plan's short term goals include adopting the budget and updating the personnel policy. Staff also recommended the city code of ordinances be updated to allow for changes in the utility payment collection policy. After these key issues are addressed, the city is interested in exploring new utility rates using data collected by RUBA. RUBA staff contacted Mark Spafford, Alaska Native Tribal Health Consortium (ANTHC) engineer concerning Kake's Sanitation Master Plan that was recently completed. RUBA requested a copy for the Juneau office. Juneau RUBA staff contacted the city manager with information on four city facilities that were not receiving power cost equalization (PCE) subsidy due to not being correctly identified on the monthly PCE report. RUBA staff explained that the city dock, sewer lift station, water treatment plant, and city shop may be eligible for both future PCE subsidies and retroactive funding. The city manager was provided the necessary PCE application instructions and materials. RUBA staff contacted the lead water operator to obtain figures necessary for a water rate analysis. The city manager had requested RUBA assistance in updating the utility rate structure. RUBA staff will first determine the true cost of water production in the community with data provided by the utility operator, then work with the community to develop a rate that covers these expenses. In September, Kake signed a RUBA assistance agreement. The agreement is to ensure that RUBA staff is able to meet with city employees and city council members, obtain city documents, and assess city utility management practices. RUBA staff will maintain a copy of the agreement with Kake's RUBA supporting documents and records. RUBA staff will make quarterly trips to the community to provide assistance. RUBA staff made two trips to the City of Kake this past quarter to continue the process of updating the Kake Code of Ordinances (KCO). The city has a disorganized and incomplete set of city codes. Further, many provisions in the KCO relating to the city’s utilities, personnel, elections, and municipal property are contradictory, preventing the city from adopting sound policy in these areas. RUBA staff traveled to the community in October and November to finish compiling all of the city's ordinances and disparate code sections. The pieces were then scanned into PDF format from which RUBA staff arranged and retyped all of the pieces into one -55- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report cohesive, electronic document. During the process, RUBA staff also noted numerous sections that were out-of-date or otherwise need to be addressed by the city during the update process. After working closely with city staff and city officials on this update both in Kake and in Juneau, RUBA staff is scheduled to present a first draft of the retyped KCO to the Kake City Council on January 18, 2011. Capacity Indicators Finances Essential Indicators Yes No & OC Allrevenue and expenses for the utility are listed in the utility budget. & CO The utility has adopted a balanced realistic budget. & © Monthly financial reports are prepared and submitted to the policy making body. & C1 The utility is current in paying all water/wastewater electric bills. & (1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. &K C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating eX) penses. - Sustainable Indicators Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. O) QW yTDrevenues are at a level equal to or above those budgeted. C1) W& ytTDexpenditures are at a level equal to or below those budgeted. CJ & A monthly manager’s report is prepared. & © Budget amendments are completed and adopted as necessary. Finances Comments: The City of Kake adopted its FY11 budget on July 30, 2010. However, this budget required an amendment shortly thereafter in order to adopt more realistic projections for outside funding and building rental revenue. The amended budget projects that water, sewer, garbage, and landfill expenditures will outweigh the revenue these utilities generate by approximately $147,000. No interfund transfer is provided in the FY11 budget to fill this gap. Rather, utility cost overruns are folded into the city's general finances which are supported by state revenue sharing and federal government grants/payment in lieu of taxes (PILT) funds. The city's November financial reports indicate that actual utility revenues exceeded the FY11 budget's projected figures for the month by $2,400. These figures, however, are due mostly in part to new utility bill collection policies implemented by the city and include back payments from utility customers. Continued implementation of the city's new collection policy and continued monitoring of the city's finances will show more meaningful trends in the amount of revenue generated by Kake's utilities. The Kake Code of Ordinances requires that monthly financial reports be prepared by the bookkeeper for the council and include a summary statement, a reconciliation statement, and a statement of expenses. Monthly financial reports are indeed being prepared, though because the city was late in adopting its FY11 budget, budget vs. actual financial statements do not meaningfully project whether year-to-date revenues and expenditures for the utilities are on target. When compared to the FY10 budget, the FY11 budget provides for significant increases in funding for operator training, treatment supplies, equipment maintenance, and testing. However, the budget does not plan for repair and replacement costs or facility maintenance. The utility's last water/wastewater electric bill was paid in full in December and they are not behind in any other payments. The FY11 budget allocates sufficient funding for the city to continue purchasing fuel from Kake Tribal Fuel (KTF). KTF receives fuel shipments as needed (about once a month) and stores it in four 20,000-gallon tanks and eight 10,000-gallon tanks. ' an an ' July — August — September — October — November — December 2010 1°‘ 2"4 Quarter SFY11 - RUBA Report OE EL AUDA REPO Accounting Systems Essential Indicators Yes No &l OF The utility has adopted a collection policy and actively follows it. KX OF The utility bills customers ona regular basis. KX OF Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & CO The payroll system correctly calculates payroll and keeps records 7 oF 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 & CO Achart of accounts is used that identifies categories in a reasonable, usable manner. & OO Monthly bank reconciliation’s have been completed for all utility accounts. KX OF The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Kake's accounting system has made significant progress toward ensuring that city utilities are operational and sustainable. Bills are sent out to all 210 accounts on the last day of the month (or within five days if the scheduled billing date falls on a weekend). The account holder's name, their address, the payment due date, an invoice number, and a utility use description are included on each bill. While these utility bills still combine the separate water, sewer, and garbage fees into one monthly rate of $36, city officials hope to eventually separate these charges so services can be paid separately. A QuickBooks accounts receivable system run by the city bookkeeper keeps track of all payments efficiently and accurately. The bookkeeper scans copies of issued bills and links them directly to their respective QuickBooks account. This new scanning process has made it easier for the bookkeeper to reference specific account histories and to better organize data. In practice, utility bills are considered ‘late’ if a payment has not been made by the 15th of the following month. However, the city code does not clearly indicate when these bills are officially considered late. This is a problem that both the utility manager and members of the council are working to address and have already begun formulating new payment policies. Along with the accounts receivable system, the bookkeeper is also in charge of the accounts payable system using purchase orders that are reviewed for initial approval by the utility manager. Though the general appropriateness of each purchase is considered, no department or account codes are used on the purchase orders. Therefore, it is up to the bookkeeper to determine on a case by case basis where to charge purchase requests. Kake's utility cash receipt system involves the bookkeeper issuing individual receipts to utility customers and recording the payments in QuickBooks. Other duties of the bookkeeper include conducting the monthly bank reconciliations (currently reconciled up to December 30, 2010) and completing payroll. The bookkeeper also maintains a detailed, alphabetical chart of accounts that clearly identifies the name of the account, the account type, and the account balance. Tax Problems Essential Indicators Yes No KX CO The utility has a system to accurately calculate, track, and report payroll tax liabilities. KX CO The utility is current on filing tax reports. KX OO The utility is current on making tax deposits. Kl C1 ffthere are any past tax liabilities, a repayment agreement has been signed and Tepayments are current. ' mn x , July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Tax Problems Comments: The Department of Labor and Workforce Development, Employment Security Division granted tax clearance on December 29, 2010 to the City of Kake, assuring that the city is current in filing state tax reports and in making state tax deposits. On December 30, 2010, the Internal Revenue Service's Taxpayer Advocate Service deemed the City of Kake in compliance with federal tax filing and deposit requirements as well. There are currently no tax liens against the city. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators O 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. 1 The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OC The utility provides training opportunities to staff as needed and available. X O Kw wh Personnel System Comments: The City of Kake has a workers' compensation insurance policy with AMLJIA valid through June 30, 2011. This policy is posted in three areas including the main bulletin board at City Hall. The city manager has begun completing an AMLJIA personnel survey for the adoption of a personnel policy for all city employees, including the utility operators. Personnel folders for the operators are already in place, though there is no set requirement for what is to be included in those files. One operator's file includes an employment contract, a leave application/report, a job description and all training certificates. The other operator's file includes an I-9, discipline letters, and a job announcement. Currently, there is no evaluation process for the two positions, either. Both files do contain an employment policy that addresses payroll, attendance, and drug testing. The city also has on hand general format job application forms, complaint forms, incident reports, and a staff schedule that was last updated on September 9, 2009. July — August — September — October — November — December 2010 1°‘ 2"¢ Quarter SFY11 - RUBA Report er TEE RUBA Repo Organizational Management Essential Indicators & CO The entity that owns the utility is known and the entity that will operate the utility is set. & CO The policy making body is active in policy making of the utility. R CO Thepolicy making body enforces utility policy. Kl OC The utility has an adequately trained manager. & OF The utility has an adequately trained bookkeeper. & O The utility has an adequately trained operator(s). [] & The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & O The utility has adopted an organizational chart that reflects the current structure. KX O The policy making body meets as required. KK 1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: Kake's utilities are owned, employed, and operated by the City of Kake. Chapter 54 of the Kake Code of Ordinances (KCO) makes clear that the city will be responsible for providing water processing and distribution, sewer collection and processing, and garbage collection. The KCO also grants the city the authority to set service rates and to collect payment. In September, the city acquired the necessary equipment and supplies to shut off water service to past-due customers. Notices posted around the community warned customers that they had until October 1 to pay utility balances or face termination of service. Some delinquent customers have already been shut off and city staff report a dramatic increase in the utility bill collection rate since September. While these efforts are certainly positive, they are not entirely in keeping with the enforcement policies set forth by the KCO. The city manager and members of the city council are interested in updating the code so that the policies on the books are in line with the successful policies being enforced. The Kake City Council is the city governing body and meets publicly on the first and third Tuesday of every month. Meeting notices are posted in public locations prior to each meeting to comply with the Open Meetings Act and meetings are postponed if the notices cannot be posted at least five days in advance. While there is no utility management system in the city code, an organization chart has been adopted by the city and indicates that the city manager, Bill Lee, is the manager of the utilities. Mr. Lee has a long history of management experience from his time in the military, law enforcement, and as a city official outside of Alaska. Mr. Lee is also taking coursework towards a Masters of Public Administration. Selma Jackson, the utility's bookkeeper, is also highly trained. She has years of experience working for the City of Kake and has undertaken critical RUBA and QuickBooks training courses to be proficient in the city's accounting system. The city's lead utility operator, Clifton 'Kip' Howard, is properly certified to operate the city's Class 1 water distribution system, but is still under-certified for the city's Class 2 water treatment system and Class 1 wastewater collection system. Mr. Howard and a water operator trainee have demonstrated the ability to run Kake's utilities effectively and reliably while actively pursuing new training opportunities. July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Operation of Utility Essential Indicators Yes No & O The utility operator(s) are actively working towards necessary certification. & OO Theutility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & C1 The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OOOkXkXR WN HXwWOOoO of Operation of Utility Comments: Kake's two water/wastewater utility operators have not yet achieved the necessary certification level in all areas, but continue to make meaningful progress. The head operator has met Kake's Class | water distribution system certification requirements, though both are still under-certified in operating the Class 2 water treatment system and the Class | wastewater collection system. The utility manager is kept abreast of utility issues with verbal monthly reports and status reports. The utility manager also makes monthly utility facility site visits to review maintenance issues. The utility's preventative maintenance plan consists of the operators examining all equipment on a monthly basis and unloading sewer tanks every two-four weeks. The remote maintenance worker staff also assists with equipment and facility review. Consumer Confidence Reports (CCRs) are issued regularly. The operation of Kake's water utilities does face sustainability challenges. Kake Municipal Water is still listed on the EPA's Significant Non-Complier (SNC) list for its high levels of halo acetic acid (HAAS) disinfectant by-products (DBPs). Air scour upgrades have been underway in an attempt to address the problem and continued testing between January 1 and June 30, 2011 will determine whether the utility remains on the SNC list. Finally, while certain critical spare parts such as electric motors and sensors are kept on hand, the utility does not maintain a full critical spare parts list or an inventory control list. A safety manual is available, though utility operator safety meetings are not held. RUBA Activities For The Coming Quarter In the coming quarter, RUBA staff will continue to work with city officials to fully update the Kake Code of Ordinances. After a draft code is presented to the city council on January 18, RUBA staff can work with the council to amend sections that are inconsistent or out-of- date, with particular attention the KCO's utility and personnel titles. RUBA staff is scheduled to conduct an eight-hour newly-elected officials training for the Kake City Council on January 19. The training will examine council roles and responsibilities, municipal acts, Title 29, parliamentary procedure, conflict of interest, fiduciary responsibility, and Alaska's Open Meetings Act. As soon as a new clerk is hired in the city, RUBA staff will also be available to provide a clerks training seminar. - 60- July — August — September — October — November — December 2010 I'* 2" Quarter SFY11 - RUBA Report ig P. -_-_ er TLL RUBA Repro Kasaan Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Regional Office 2009 Population: 63 Region: Southeast Local Government: 2™ Class City ed The City of Kasaan operates and manages a piped water Vane, no ee . system. The city council is the policy making body for the utility. Water is derived from a water infiltration gallery (impoundment) at Linkum Creek, is treated, and piped to all homes in the core area. Homes use individual septic tanks and 95% are fully plumbed. The city collects and deposits refuse weekly at the Thorne Bay landfill. Electricity is provided by Alaska Power and Telephone Company. Kasaan is connected via gravel road to the Prince of Wales Island road system. RUBA Activity This Reporting Period RUBA staff traveled to Kasaan on August 25-26, 2010 to provide onsite assistance. After applying for a grant through Alaska Native Tribal Health Consortium (ANTHC) to construct a new water treatment : facility and water storage tank, the community was notified that a current water utility business plan was required to receive project funding. Using the RUBA provided business plan template and financial - workbook, RUBA staff assisted the mayor in drafting an up-to-date business plan for the water ' treatment and water distribution systems. The draft business plan was submitted to Village Safe Water * (VSW) for a courtesy review prior to submitting it to the city council for approval. In addition to meeting requirements for grant funding, city staff recognized the value of having a current business plan as a planning tool for their utility. Juneau RUBA staff traveled to Kasaan December 7-9, 2010 and then again on December 14 to provide onsite assistance. RUBA staff work with the newly hired utility clerk by provided initial training on retention schedules, elections, codifying ordinances, and other clerk duties. The city clerk is inexperienced with municipal government and has never held the position of clerk before. RUBA staff also provided assistance to the clerk in drafting several resolutions, ordinances, and a non-code budget amendment ordinance in preparation for the next city council meeting. On December 14, RUBA staff provided city council training. The training consisted of ordinance procedures and parliamentary procedure which was presented at a work session prior to the regular council meeting. The training was reinforced during the council meeting with the council practicing the proper procedures for amending several resolutions and ordinances that were on the meeting agenda. The city council now has a better understanding of their legal obligations for public notices, the types of ordinances, and their ability to amend ordinances and resolutions. The city currently meets all essential management indicators with only two sustainable indicators still unmet. -61- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. 9 Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. 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. Xe WRN O00 OOO XRRW Finances Comments: The fiscal year for the city is July | through June 30. The FY 11 budget was adopted by a non-code ordinance on June 25, 2010. The utility budget is part of the overall city budget. The FY11 city budget is balanced and all utility-related revenues and expenditures are reasonably listed. Anticipated utility- related expenses exceed revenues, however; the governing body elected to subsidize the water utility. Projected water revenues, which are exclusively user fees, are $13,950. The projected water related expenses are $28,196. The mayor, who also serves as the utility manager, gives both written and verbal operational and financial reports to the council at monthly meetings. Financial reports consist of a current balance sheet and a year-to-date budget vs. actual profit and loss statement. Electricity is provided through Alaska Power and Telephone Company. A visual inspection of the most recent electricity billings verifies that the utility is current with all electricity accounts for the water utility. The community has a city-owned bulk fuel facility, which is comprised of propane, gasoline, and diesel storage tanks. The city receives fuel deliveries from Petro Marine in Craig, and then retails this fuel to community members on a break-even basis. The city has adequate funds available and purchases fuel as needed. The city usually maintains a one to three month fuel supply in the summer months and a slightly higher level of fuel reserve during the winter. 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 other sources, such as the general fund, to subsidize utility operating expenses. The council's willingness to subsidize the water utility is evidenced by the inclusion of $15,000 on the FY11 Community Revenue Sharing budget. The community has adequate savings for unexpected repairs and equipment replacement. The city offsets the cost of providing water and solid waste collection services by charging monthly user fees. Residential is $60/month for water and $20/month for garbage collection. Senior Residential is $40/month for water and $13.75/month for garbage. Commercial is $70/month for water and $20/month for garbage. Garbage rates were last adjusted in December 2008, and it has been several years since water rates were last modified. ye July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report OO BU REPO Accounting Systems Essential Indicators Yes No 1 The utility has adopted a collection policy and actively follows it. OO 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. XHKeR WR O000 Sustainable Indicators X 1 Achart of accounts is used that identifies categories in a reasonable, usable manner. & OO Monthly bank reconciliation’s have been completed for all utility accounts. KX OF Theutility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The city is currently using QuickBooks Pro for their accounts receivable, accounts payable, and payroll. It was originally installed through a RUBA-sponsored QuickBooks onsite installation and training grant. Since the original QuickBooks install, the city has upgraded to QuickBooks Pro 2008. The city has an adopted collection policy, which is contained in Title 7 of the Kasaan Municipal Code. The city follows the collection policy and actively pursues delinquent utility accounts. Collection actions include the establishment of payment agreements, service charges to restore service, and a 7.5% monthly service charge on delinquent accounts. The 7.5% monthly service charge exceeds the Alaska statutory limit of 10.5% per year but has never been enforced. Disconnection notices are sent to customers five days after the account becomes delinquent, including the date of intended service disconnection. Service disconnections are imposed when possible but, for the most part, are an unenforceable provision of their collection policy. Due to the age and condition of the distribution system and lack of adequate planning and utility easements, a large proportion of the curb stops are inaccessible, inoperable, or unable to be located. The community has placed an increased emphasis on pursuing delinquent accounts and has resorted to using a collection agency for customers that have moved out of town. The increased emphasis on collections has resulted in an improved collection rate from 40% a year ago to the current 97%. The utility bills customers each month in the form of a statement that includes water, garbage, and any rental fees, along with invoices for services rendered. Bills are sent out on the first of each month. The statement clearly shows both current and past due amounts but fails to provide a due date. 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 city has an adequate chart of accounts. They use a customized version of the standard QuickBooks chart of accounts. Some accounts have been added to accommodate the enterprise funds and to allow financial transactions to be properly classified. The chart of accounts lists all the accounts in the general ledger; they are identified by a four digit reference number. The bookkeeper reports that all bank accounts have been reconciled. The city uses a purchase order system for all purchases and maintains a cash disbursement system to track expenditures. Employees complete purchase orders, which are then submitted to the mayor for an approval after it has been compared with remaining budgeted funds. The invoice is attached to the appropriate purchase order, and checks are cut once a week. -63- July — August — September — October — November — December 2010 1°‘ 2"4 Quarter SFY11 - RUBA Report Tax Problems Essential Indicators Yes No | [] The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX CO The utility is current on filing tax reports. (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 City of Kasaan uses QuickBooks Pro to calculate, track, and report payroll liabilities and makes electronic payments using the Electronic Federal.Tax Payment System (EFTPS). The community was deemed in compliance with taxes and reporting requirements by both the Internal Revenue Service (IRS) and the Alaska Department of Labor and Workforce Development (ADOLWD) within the last year. Personnel System Essential Indicators Yes No & [] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & CF The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 7 The utility has adequate written job descriptions for all positions. C1 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. y [] The utility provides training opportunities to staff as needed and available. kX we Be J Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska Municipal League Joint Insurance Association (AMLJIA). The policy is effective from July 1, 2010 through June 30, 2011. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Copies of the workers' compensation policy are posted in accordance with state statute in all public buildings and in areas easily accessible to employees. Kasaan has a new personnel policy that was developed with the help of RUBA and AMLJIA. The employee handbook provides adequate guidance for the community and employees in the areas of hiring, conditions of employment, compensation, evaluation, discipline, grievances, employee benefits, and travel and training. The personnel policy contained in the municipal code covers hiring policies and the employment of city council members. Personnel evaluations are normally conducted after 30 days and six months for new hires and annually for permanent employees. The city keeps records relating to employees in a personnel file. The personnel files are well-organized and contain all the necessary employee documents. RUBA staff reviewed personnel files and found all current employees contained required documentation. The mayor reported that all files connected with an employee are considered strictly confidential, yet, upon inspection, the files were found in an unlocked filing cabinet. The mayor -64- July — August — September - October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report — OEE RUDA Repo made an on-the-spot correction by having utility staff place a hasp and lock on the filing cabinet, thereby securing the files and limiting access. 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. (1 The policy making body enforces utility policy. 1 The utility has an adequately trained manager. OO The utility has an adequately trained bookkeeper. 1 The utility has an adequately trained operator(s). (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XK OF) The utility has adopted an organizational chart that reflects the current structure. & C1 The policy making body meets as required. KX OF The utility complies with the open meeting act for all meetings. HWeXRXRRN Organizational Management Comments: The City of Kasaan owns and operates the water and bulk fuel 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 meets the second Tuesday of each month and holds 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 mayor. Her applicable experience and training includes being a former business owner, and she has management experience with the Kasaan Bay water shed. She recently completed a 32-hour Organizational Management course and is planning on taking the remainder of the utility management courses necessary to become a certified utility manager within the next two years. The bookkeeper is responsible for the maintenance of the books for all community services. This employee has only held the position since 2009; however, she has over 40 years of bookkeeping experience. She has completed several QuickBooks trainings and has worked as a bookkeeper for the U.S. Forest Service and the City of Thome Bay. The city operates a small] level T (treated) drinking water system. The city has one certified operator working on the sanitary systems. The operator is adequately trained given the classification of the facility. The utility operator Michael Escoffon has the following certificates: Water Treatment 1 Exp. 12/31/12 Water Distribution P Exp. 12/31/12 the council has adopted all the ordinances necessary to own and operate the utility services. Title 7, Chapter 2 of the Kasaan Municipal code establishes the policies and procedures for the operation and maintenance of the community water supply system; Title 7, Chapter 1 for garbage collection; and Title 7, Chapter 3 for the bulk fuel utility. The utility has adopted an organizational chart which is included in their utility business plan. - 65 - July — August — September - October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Operation of Utility Essential Indicators Yes No C1 The utility operator(s) are actively working towards necessary certification. & OO) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & (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. H The utility has a safety manual and holds safety meetings. KX C1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. KX CO 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. & CO The utility has completed and distributed its Consumer Confidence Report (CCR). & (O Theutility is not on the Significant Non-Compliance (SNC) list. X The utility maintains an inventory control list. CO) & The utility maintains a critical spare parts list. Operation of Utility Comments: The operator's provisional water treatment and water distribution certifications exceed State of Alaska licensing requirement for a Small T water system. The operator is working towards his Level 1 certification; however, the next level of certification requires 1950 hours of on-the-job experience. The operator only spends two hours a day on water treatment and one hour a day with the water distribution system. The utility operator consults with the mayor on a regular basis and provides both verbal and written status reports. RUBA staff reviewed samples of the monthly written report. The report is a simple, well thought out, pre-prepared, fill-in-the-blank form that allows the operator to report a standardized set of information points. The report includes water treatment and consumption information, fuel consumption, personnel utilization, customer complaints, problems resolved, new problems identified, and preventative maintenance tasks not completed. The city participates in the AMLIIA safety and risk reduction program and has recently adopted a new safety manual. RUBA staff reviewed the most recent training documents, sign-in sheets, and meeting notes. The city keeps records on the types of training completed, the materials used, and the employees who attended the training. Recent trainings included 'Early return to work program,’ 'Holiday fun, stress, and accidents,’ and "Back injury prevention and safe lifting.’ The water operator reports that the water utility is operating at the proposed level of service and has not suffered any major problems or outages due to management issues. The utility completes and distributes its Community Confidence Report (CCR) providing drinking water quality information as required by the Safe Drinking Water Act and State regulations. The last CCR was reviewed by the ADEC drinking water program for completeness and was distributed to customers on June 17, 2009, by means of direct mail, posting in several public places, and delivering to other community organizations. The utility does not have a critical spare parts list but does maintain an inventory control list. 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 level of critical spare parts may be inadequate to prevent a service outage. The FY09 utility budget has allocated zero dollars towards repairs and maintenance. The City is not listed on the Significant Non-Compliance (SNC) list as of October 2010. RUBA Activities For The Coming Quarter RUBA staff will continue to provide assistance as requested to maintain essential and sustainable indicators. RUBA staff will provide assistance with developing a critical spare parts list for the water and bulk fuel utilities. - 66 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report aS———— OE EE UDA REPO Kasigluk Activity Report Community Overview Lead RUBA Staff: Eli Jacobson, Juneau Regional Office 2009 Population: 534 Region: Yukon-Kuskokwim Delta Local Government: Traditional Council ry The washeteria in the old village site of Kasigluk was v APene, 0 OP closed for good. The residents at the old village site rely on rain water for drinking and haul raw river water for washing every day house cleaning needs. The new village area known as Akula Heights uses the school well. Honey buckets are dumped into sewage bins and hauled to the lagoon. Homes are not plumbed, and residents were reliant on the washeteria for bathing and laundry. Major infrastructure improvements have been funded, including two new wells, water treatment plant, a 100,000-gal. storage tank, a new washeteria and sewage lagoon. Electricity is provided by AVEC. AVEC installed three wind generators in 2006. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Kasigluk in August to conduct a RUBA management assessment for the Kasigluk Traditional Council (KTC). During the visit, Administrator Natalia Brink and Bookkeeper Ruth Beaver answered questions and provided requested documentation.KTC is meeting a majority of the essential indicators at this time. Essential indicators found deficient were in the area of finances and » accounting. The current project is related to sewer haul and garbage removal. They also have a washeteria under construction but is not yet online. The onsite superintendent (Dave Roland) provided a preventative maintenance plan for the sewer and garbage haul project. Bethel RUBA staff was contacted in December regarding the deficient essential indicators. Alaska Native Tribal Health Consortium (ANTHC) engineer Shad Schoppert called to ask questions about the status of the assessment and what steps were outlined to meet those indicators. A site visit by RUBA was scheduled for January 2011. -67- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & O Allrevenue and expenses for the utility are listed in the utility budget. (1 W& The utility has adopted a balanced realistic budget. & CO Monthly financial reports are prepared and submitted to the policy making body. & C2 The utility is current in paying all water/wastewater electric bills. & OC The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Kl CO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. SS Sustainable Indicators QO & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & (1 yYTDrevenues are at a level equal to or above those budgeted. Kl 1 YTDexpenditures are at a level equal to or below those budgeted. () W® A monthly manager’s report is prepared. (1) W& Budget amendments are completed and adopted as necessary. Finances Comments: KTC's monthly finance report lists revenues and expenditures. A copy of calendar FY10 budget and documentation of its adoption by KTC was not provided when requested. All electric bills for KTC are current, verified by AVEC on December 29, 2010. The monthly financial reports for 2008, 2009, and 2010 up through the month of October have been received and are well organized. The monthly reports contain expenditures and revenues that show year-to-date expenses being reasonable, however documentation that the budget was adopted needs to be provided. Past financial reports show excess funds that could be used for repair and replacement although it is not budgeted that way or accounted for separately. Either a copy of a monthly manager's report or meeting minutes showing it being addressed to the council are acceptable documentation for the managers report. Accounting Systems Essential Indicators Yes No | The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators (C1 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. OO Wow Hk xX O% WO - 68 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ——————————————————————————— SESOO—cO———eeeeeee Pe Accounting Comments: KTC does not have an adopted written collection policy. Copies of past utility bills were provided and, while the assessment was being conducted, customers were coming in and paying bills. They were issued hand written receipts. KTC staff generated a billing statement they would be sending out for August. QuickBooks is being used for some accounting functions, but not for accounts receivable or payable. Their monthly reports and 941 forms demonstrate they have a payroll system. The cash receipts system was manual with carbon copies. They were not able to show how their cash was spent. Bank reconciliations are not done on a monthly basis. The tribal administrator submits purchase requisition requests to KTC for supplies needed. Tax Problems Essential Indicators Yes No 1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. (1 = The utility is current on filing tax reports. C1 The utility is current on making tax deposits. (1 If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Xe Tax Problems Comments: On September 1, 2010 Bethel RUBA office received correspondence from IRS indicating KTC was in compliance for federal taxes from July 2007 through June 2010. A form requesting release of federal tax information from January 2008 to December 2010 was sent to the IRS in January 2011. The state Department of Labor was contacted and learned that KTC was current with a $600 credit on their Employment Security Contributions account. Personnel System Essential Indicators Yes No & [] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators C1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. KX C0 The utility provides training opportunities to staff as needed and available. X oO x] k Wh O Personnel System Comments: A copy of KTC's personnel policy was provided. It describes job classifications, performance evaluations, orientation/training, and reassignment/probation periods. KTC's personnel files were spot checked. The bookkeeper and tribal administrator have both received multiple kinds of training. - 69 - July — August — September — October — November — December 2010 1''“ 2" Quarter SFY11 - RUBA Report Workers compensation is provided by Umialik Insurance Company and is current for the period January 4, 2010 through January 4, 2011. Organizational Management Essential Indicators Yes No (1 The entity that owns the utility is known and the entity that will operate the utility is set. (The policy making body is active in policy making of the utility. [] The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. (The utility has an adequately trained operator(s). 1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators CL] & The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. WHONNRRe Organizational Management Comments: KTC owns and operates the utility. KTC has weekly meetings in which they make policy. The tribal administrator has been working for KTC for over a year, and has an Associate's degree. The administrator stated she had training in orientation, BIA, at the Providers Conference and in administration. The bookkeeper has been working for KTC for eleven years. She has had QuickBooks and grant writing training and is competent with QuickBooks. The utility operators currently just collect garbage and sewage. There is no formal training for this, however these duties are performed on a daily basis. The council has not adopted an organizational chart. Operation of Utility Essential Indicators Yes No xX The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & C1 The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. 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 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OWXRRR WO MOOOOO Operation of Utility Comments: The utility operator currently collects garbage and sewer. There is no formal training for this but these duties are conducted on a daily basis. A preventative maintenance plan for the honey bucket haul system was provided by Dave Roland, the onsite superintendent. A copy of meeting minutes that document the manager addressing the council about the monthly operations and maintenance report -70- July — August — September — October — November - December 2010 1°'* 24 Quarter SFY11 - RUBA Report SSeS APO meets this sustainable indicator. A safety manual and regular safety meetings are needed. The utility operators report to the tribal administrator and give her verbal reports. KTC is not on the SNC list. They currently do not have a Consumer Confidence Report posted and one was not provided. However, the water plant is no longer providing potable water to the community. When a new water plant comes on line, a Consumer Confidence Report will be required. The utility operator provided an inventory control list that mainly focused on tools. It had a detailed account of all the tools they have and use but no spare parts. The critical spare parts list had only one entry. RUBA Activities For The Coming Quarter KTC has met twenty-four of the twenty-seven essential indicators necessary to be in RUBA compliance. RUBA staff will continue to work KTC staff on the budget, the collection policy, and the accounts receivable system. -71- July — August — September — October — November — December 2010 1°‘* 2" Quarter SFY11 - RUBA Report SOOO eee ep Kotlik Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2009 Population: 600 Region: Lower Yukon Local Government: 2™ Class City od ie Kotlik has a piped vacuum sewer and circulating water \ Pree, FP utilidor, including plumbing for 51 homes. Nineteen households and facilities away from the city core area are not yet served, and these residents haul treated water from the washeteria across the Kotlik Slough, collect rainwater or melt ice, and haul honey buckets to containers. Since trenching and burying is difficult in the area, the city is considering an incinerator and recycling to reduce the quantity of solid waste. The existing landfill is being closed. A Master Plan is underway to examine needed improvements. Electricity is provided by Kotlik Electric Service. RUBA Activity This Reporting Period Management of the water and sewer system was taken over by ANTHC/ARUC in June 2010. aaa! July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators QO & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xk Xe O00 OOO & © yYTDrevenues are at a level equal to or above those budgeted. XK YTD expenditures are at a level equal to or below those budgeted. ZX (©) A monthly manager’s report is prepared. Kl Budget amendments are completed and adopted as necessary. Finances Comments: Alaska Native Tribal Health Consortium (ANTHC) took over billing and collection procedures for the water and sewer system in January 2010. Alaska Rural Utility Collaborative (ARUC) assumed management of the water/wastewater system in June 2010. ARUC ensures that adequate fuel supplies are maintained. They also ensure that electric bills for the utility are paid monthly. The FY11 budget is on file _ in the Bethel Regional Office. ARUC provides monthly finance reports that compare the adopted budget to expenditures and revenues. Accounting Systems Essential Indicators Yes No & CF Theutility has adopted a collection policy and actively follows it. & O The utility bills customers on a regular basis. K CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & OC The payroll system correctly calculates payroll and keeps records & (O Acash receipt system is in place that records incoming money and what it was for. Qi The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. QR Monthly bank reconciliation’s have been completed for all utility accounts. & CO The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Billings and collection was taken over by ANTHC in January 2010 and ARUC took over Management of the water and wastewater system in June 2010. ARUC is a statewide utility management system with accurate accounting practices. u74e July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eee 00 EPO Tax Problems Essential Indicators & CO The utility has a system to accurately calculate, track, and report payroll tax liabilities. 1 The utility is current on filing tax reports. C1 The utility is current on making tax deposits. KX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: ARUC operates the water and sewer system in Kotlik. Although the city owns the water and sewer system, the ARUC takes care of the administration/finance and all operation/maintenance costs. IRS deemed ANTHC/ARUC compliant on November 2010. The Kotlik City Council is on the September- October 2010 Lien Watch. Also the IRS deemed the City of Kotlik non-compliant for unpaid taxes on IRS form 941 for the 2nd quarter of 2009. Personnel System Essential Indicators Yes No & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xx C1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. : The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. (1 The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. KX OC Theutility provides training opportunities to staff as needed and available. X We we I Personnel System Comments: Workers Compensation Insurance is secured by ANTHC through Alaska National Insurance Company to October 1, 2010. ANTHC/ARUC personnel policies apply to utility employees. -75- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Organizational Management Essential Indicators Yes No i) 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. & (C1 Thepolicy making body enforces utility policy. & CO The utility has an adequately trained manager. (1 The utility has an adequately trained bookkeeper. & CO The utility has an adequately trained operator(s). & (1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators CL] & The utility has adopted an organizational chart that reflects the current structure. & (CO The policy making body meets as required. & CF The utility complies with the open meeting act for all meetings. Organizational Management Comments: ANTHC is doing billings and collections as of January 2010. ARUC took over the water and sewer system in June 2010. Kotlik City Council is active and meets each and every month. Enforcement of policy is top priority. The primary operator is certified and he has two trained alternates. The alternates are signed up for certification training. Operation of Utility Essential Indicators Yes No & OC The utility operator(s) are actively working towards necessary certification. ———x}—-E} The utility -has-a-preventative maintenance-plan developed for-the-existing-sanitation facilities Sustainable Indicators [J 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X INO OO XROKKR WX OO Operation of Utility Comments: The utility must address SNC listing as a condition of sanitation grant funding requires not being listed on the SNC list. RUBA Activities For The Coming Quarter Monitor ARUC activities. -76 - July — August — September — October — November — December 2010 rey Quarter SFY11 - RUBA Report epee a oe ee ae eS eee TEL -RUBA REPO Larsen Bay Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2009 Population: 79 Region: Kodiak Island Local Government: 2™ Class City located within the Kodiak Island Borough, Tribal Council od “\ Nene, ay Water is supplied from two groundwater sources--gravity feed from the hydro plant, and a well as backup, and stored in a 200,000 gallon tank. A water supply line is connected to the penstock of the hydroelectric plant and used a majority of the time to reduce utility expenses to both the service plant and the customer. All 40 homes are connected to the piped water system. A community septic tank with an outfall line serves these homes, and the majority of them are fully plumbed. Weekly refuse collection services are provided. The community incinerator is currently unusable and all refuse is deposited at the landfill site. The city has been funded for a water treatment plant project from Village Safe Water (VSW). RUBA Activity This Reporting Period RUBA staff traveled June 29, 2010 to the City of Larsen Bay to assist the billing clerk with required monthly and quarterly reporting. Upon arrival in Larsen Bay, RUBA staff met with the mayor and billing clerk about the on-site goals. The tasks completed during the on-site visit included assistance in completing 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 assisted the billing clerk in completing the May and June PCE reports which will result in a reimbursement of $1993 for May and $2137 for June. Payroll assistance, paying payroll liabilities, reviewing and correcting the memorized transactions within QuickBooks, training on how to itemize the phone bill payment per department, clarifying child support deductions and payment questions were also accomplished while on-site. RUBA staff received a tour of the construction site for the new water treatment plant by ANTHC staff before departing the community. RUBA staff also received numerous calls from the Larsen Bay city clerk requesting assistance. RUBA staff assisted in completing their FY10 Certified Financial Statement (CFS). RUBA staff reviewed what had been completed then assisted the clerk in completing the remainder of the statement. RUBA staff also supplied a copy of their Title 13 Electrical Utility Regulations amended ordinance passed in 1991. The city was unable to find their copy. They needed to reference it as well as have it in their files. RUBA staff has kept an accumulative file on all City of Larsen Bay ordinances and was able to supply them with a copy of the needed ordinance. On December 13, 2010 the RUBA program co-sponsored a personnel training in Kodiak. The City of Larsen Bay sent the clerk, a council member and an employee to represent the city at the training. Topics covered during the training included Personnel Policies and Procedures, Safety Policy and Resources, Recruiting, Interviewing and Selecting Staff, Orientation and Training, Regulations and the Law, People, Communication and Conflict, and Motivation and Management Skills. All lessons were delivered with a sequence of lectures, interactive discussions, group exercises, worksheets, and action plans. The city representatives were engaged in the training and participated in insightful group discussion. -77- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & 1 Aillrevenue and expenses for the utility are listed in the utility budget. & (C1 The utility has adopted a balanced realistic budget. & CO 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 supply. xX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators (1 W& The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & O) YTDrevenues are at a level equal to or above those budgeted. & yYtTDexpenditures are at a level equal to or below those budgeted. & CO A monthly manager’s report is prepared. [1 & Budget amendments are completed and adopted as necessary. Finances Comments: The City of Larsen Bay drafted and adopted the FY11 budget with RUBA assistance. RUBA staff trained the city clerk and billing clerk in preparing the proper monthly finance reports for the city council. The 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. Although water and wastewater revenues are not sufficient to cover operating expenses, the city subsidizes its water and wastewater utility service through the electric sales. This subsidy is listed as a line item on the budget. Manager/operator reports are given verbally when requested from the council. The operator also has daily contact with the mayor and/or city clerk. Accounting Systems Essential Indicators Yes No 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. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. OOO OOO RHkeK kh e He OO -78 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report OO eres Se Accounting Comments: The city council has an adopted collection policy and has been actively and consistently enforcing it. The city utilizes QuickBooks for accounts receivable, accounts payable and payroll. The QuickBooks system is set up properly to reliably keep the city's finances in order. Bills are issued on a regular basis by the fifth of every month in accordance with the city's billing and collection policy. Monthly bank reconciliations are completed for each bank account then printed and filed for historical data. The city's purchasing system requires prior approval from the mayor or city clerk depending on the purchase amount. Once approval has been given a purchase order is issued. Tax Problems Essential Indicators Yes No & CO The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & CO The utility is current on making tax deposits. & (C1 [If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city uses the QuickBooks accounting program to accurately track, calculate and report payroll tax liabilities. Liabilities are paid monthly and the quarterly reports are completed and mailed to the IRS on time. The city has not received any non-compliance notices from the IRS or DOL. Both IRS and DOL have deemed the city compliant at this time. Personnel System Essential Indicators Yes No XK CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & (C1 Theutility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Kl OF Theutility has adequate written job descriptions for all positions. Xi [] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & OF Theutility has an adequate written hiring process. & OC The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. XJ 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. Personnel System Comments: The City of Larsen Bay has a posted workers compensation insurance policy with AMLJIA in effect from July 1, 2010 to July 1, 2011. On December 9, 2008 the city council adopted a personnel policy. The city's current hiring process is historical and is not written. Job notices are posted for ten days and include the job title and description. Interested applicants apply at the city office. There is no probationary period for employees. Training opportunities are provided as funds allow or opportunities by other sponsors come available. -79- July — August — September — October — November — December 2010 1‘ 2" Quarter SFY11 - 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 & CO The utility has adopted an organizational chart that reflects the current structure. & O The policy making body meets as required. Xi The utility complies with the open meeting act for all meetings. HRRRRRH OoOoooo0o0 Organizational Management Comments: The City of Larsen Bay is known as the entity that owns and operates the utility, and is active in policy making for the utility. The city clerk, with city council backing, has been actively enforcing utility policy. The clerk has attended a QuickBooks training class sponsored by the RUBA program. The utility operator is trained and has passed the Provisional Level | test. Operation of Utility Essential Indicators Yes No (1 The utility operator(s) are actively working towards necessary certification. x —~—X}-—E} Fhe 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. X The utility has a safety manual and holds safety meetings. H 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. O Operation of Utility Comments: Kk WwOOOk Oo The utility has a preventative maintenance plan for the existing system. The City of Larsen Bay participates in AMLJIA monthly safety meetings. The utility operator is trained and can run the system and has passed the Provisional Level | test. The utility operator reports to the mayor, vice-mayor or city clerk when there is a problem or when he can foresee one. The utility is not able to operate at the level of service that was proposed because it is unable to backwash the rapid sand filter. The Solo-valve was deemed a cross connection by the Alaska Department of Environmental Conservation (ADEC); however, the city is currently not on the SNC list. The utility operator and council attempt to keep needed critical spare parts on hand but they currently have no actual written list. -80- July — August — September — October — November — December 2010 1''* 2"4 Quarter SFY11 - RUBA Report — eee BE APO 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. -81- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report -82- July — August — September ~ October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eee nA APO. McGrath Activity Report Community Overview Lead RUBA Staff: Brice Eningowuk, Anchorage Office 2009 Population: 315 Region: Interior Local Government: 2™ Class City od “3 McGrath operates a piped water system that serves nearly all 178 households; a few homes have individual wells or haul water. The FAA operates its own water system. The majority of residents use individual septic tanks; a limited city sewage system serves approximately 34 homes. Funds have been requested to expand the piped sewer system to the 144 houses and businesses currently using septic tanks. A private firm, McGrath Trash and Refuse, collects refuse for disposal at the city landfill. RUBA Activity This Reporting Period On September 20, 2010, RUBA staff traveled to McGrath to conduct a RUBA management assessment of the public water system owned by the City of McGrath. A new assessment had been requested by the city as the last full on-site assessment had been completed four years prior. The community has received grants for water and wastewater improvements. The current water/wastewater project is now in the preliminary stage from Village Safe Water in the grant cycle of July 1, 2009 to June 30, 2014. An assessment will be drafted for review by the city. Initial findings of the management assessment show that all essential indicators are being met. While onsite, RUBA staff toured the community and the water treatment plant. On October 19, 2010, RUBA staff finalized and distributed to Tanana Chief's Remote Maintenance Worker, Village Safe Water Program Engineer, RUBA Program Manager and the city a copy of the assessment. The assessment showed that all essential indicators are currently being met. The only sustainable indicator deficient involves the adoption of budget amendments by the council. This community has very stable employees and a strong involved city council. -83- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. Xl -O The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators Kl CO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & O yYTDrevenues are ata level equal to or above those budgeted. & C1 YTDexpenditures are at a level equal to or below those budgeted. & CO A monthly manager’s report is prepared. (1 W& Budget amendments are completed and adopted as necessary. We Xew O00 000 Finances Comments: McGrath has adopted the FY11 operating budget with Ordinance 11-01. It is balanced and realistic with revenues and expenditures well defined for the utility department. The water utility revenues total $335,500 and the expenses total $297,218 for a surplus of $38,282. The water utility has a Repairs and Maintenance line item within the Water Utility Expenses. The surplus is due to an increase of service ~ ‘Tine hookups and additional customers to the service line. The sewer utility revenue totals $50,000 and the expenses total $79,847 for a deficit of $29,847. The deficit is due to a Village Safe Water (VSW) upgrade that has been prolonged and the sewer facility has been extended beyond its useful life with major repairs from the city while waiting for VSW to complete the project. The sewer utility has a high Repairs and Maintenance line item within the expenses that explains the majority of the deficit. Repair and Maintenance is projected to be $15,000. The washeteria revenue totals $22,000 with the expenses of $21,658, for a surplus of $342. The washeteria has a Repairs and Maintenance line item within the washeteria expenses. It has been stated that the excess revenue from the water utility and fund transfers from the General Fund, if needed, will be utilized to cover the costs of the sewer utility. Minutes, from July 29, 2010 council meeting, state that the certified financial reports have been adopted with Resolution 11-1. The meeting packet from August 24, 2010 shows that the Profit and Loss July 2009 to June 2010 Budget vs. Actual report for the entire entity with separate columns for the Water, Sewer, Washeteria utilities and other city programs were on the agenda. During the generation of recent financial reports, an issue was found on the QuickBooks installation. The city administrator stated that the QuickBooks consultant removed some classifications and added others to attempt to clear up redundant names and categories. In the process, some categories were broken out that should not have been. This has slowed the generation of the financial report as the bookkeeper and the administrator make corrections to the report that QuickBooks generates automatically. The Tanana Chiefs Conference (TCC) Remote Maintenance Worker (RMW) position assigned to McGrath is currently vacant and is receiving assistance from a RMW assigned other communities. It was stated by the city administrator that budget amendments were not completed by the council. The council re-appropriates funds from the general fund as needed and without a budget amendment. -84- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report SOOO eee ee 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. XRRK WHR OOOO oO Sustainable Indicators & OF Achart of accounts is used that identifies categories in a reasonable, usable manner. & C1 Monthly bank reconciliation’s have been completed for all utility accounts. KX OF 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 Title 13 of the McGrath Code of Ordinances. The city utilizes colored paper for delinquent customer notices to remind them of the overdue bill and also a colored door hanger notice of disconnect. During the onsite visit, a sample water utility bill was collected from the city administrator. McGrath utilizes QuickBooks Premier 2009, as a nonprofit, for tracking all financial transactions of the utility and other city finances are in separate classes within QuickBooks. The RUBA contracted QuickBooks consultant traveled to McGrath to provide assistance with a QuickBooks program rebuild. The city administrator stated that the consultant removed some classifications and added others to attempt to clear up redundant names and categories. In the process, some categories were broken out that should have not been. This issue is in the works to be fixed, but the time needed to do this is limited. A chart of accounts was also generated from QuickBooks for the McGrath and is able to track the utility revenue and expenditure transactions. Monthly bank reconciliations are made with the check register from QuickBooks and bank statements by the city administrator and the practice was verified by RUBA staff during the onsite visit. Purchases for the utility are discussed by the administrator and program lead to confirm if the purchase is necessary and that funds are available in the budget. Decisions made for purchases outside of budgetary line items are determined by the level of necessity and availability of the general funds. Although discussions are done with the mayor, the mayor has stated that this is not necessary. Emergency purchases are made on the spot and utilizes the city's general fund. Past emergency utility purchases include a replacement heat exchanger and sewer tank. Tax Problems Essential Indicators Yes No & (C1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. Kl CO The utility is current on filing tax reports. H L} The utility is current on making tax deposits. KOC If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. -85- July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Tax Problems Comments: A signed Authorization to Request Federal Tax Information was collected and sent to the Tax Payer Advocate Service. IRS reports that the City of McGrath is compliant with tax liabilities and has no record of a lien against the city. State ESC has also granted the City of McGrath a tax clearance. Personnel System Essential Indicators Yes No Xi 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 attomey, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. a &h We ww O OO o§“foO“ oO X Oo Personnel System Comments: McGrath has purchased workers compensation insurance with the Alaska Municipal League Joint Insurance Agency (AMLJIA). Coverage is from July 1, 2010 to June 30, 2011. McGrath has an employee handbook provided by AMLJIA that has a hiring and evaluation process; reference to personnel folders, a 90-day probationary period for all new hires and promotions or transfers and other important information for a newly hired or rehired city employee. The city encourages employee training for city employees. Organizational Management Essential Indicators Yes No O 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. Kl & C2 The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HRRRNRH OOOOO Organizational Management Comments: McGrath owns the utility and has an ordinance code 13.04.010 which addresses service provided standards for the water utility and clearly states what and how services are provided. The McGrath city - 86- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report — OEE ARUBA Keep council members are active in policy making for the utility and enforces those polices. The city administrator acts as the utility manager, the utility foreman reports to the city administrator. The city administrator has over six years experience with the City of McGrath. The administrator has been awarded the 2005 AWWMA System Manager of the Year and has been recognized by Tanana Chiefs Conference for outstanding dedication to the McGrath Water System. The utility foreman has three plus years of experience and has been with the city for the last year. There are two water operators employed by the city. One operator has certification in Water Treatment | and Water Distribution 1 due to expire December 31, 2012. The other operator has certification in Water Distribution Provisional and Water Treatment 1 due to expire on December 31, 2012 and has met the required continuing education units. The second operator was a water operator for McGrath, but left the community then returned after allowing the water certification to lapse. He is classified as an Operator In Training (OIT) for the City of McGrath. The bookkeeper has been at the position for over two years and is a certified municipal clerk with the Alaska Association of Municipal Clerks and also has clerks training from the Alaska Municipal League (AML). Operation of Utility Essential Indicators Yes No & CO The utility operator(s) are actively working towards necessary certification. KO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & CO The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & OF The utility has a safety manual and holds safety meetings. xX Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. & OF The utility is operating at the level of service that was proposed. KI = The operator provides status reports to the manager on a routine basis. & OF The utility has completed and distributed its Consumer Confidence Report (CCR). & O The utility is not on the Significant Non-Compliance (SNC) list. & OF The utility maintains an inventory control list. K) OF The utility maintains a critical spare parts list. Operation of Utility Comments: The City of McGrath has provided training funds within the utility budgets and actively ensures employee participation in training opportunities provided by outside agencies, such as TCC. A monthly preventative maintenance check list is generated for the water utility. The check list includes maintenance for the pumps, alarm battery backup system, exercising of unused valves, clean the chlorination injection point, chlorination vat of sentiment every six months and other maintenance of the utility equipment and facility. AMLJIA has provided the water utility with a safety check list and it is available in the utility and administrator's office. This is used as a guide for safety meetings. There have been no major problems or outages to date with the current utility employees. The operators and foreman report to the administrator or directly the council when the administrator deems it is appropriate. The foreman or operator reports to the council when clarity is needed on specific information regarding the utility plant. Routine operations are reported to the administrator and then forwarded to the council at a council meeting. The City of McGrath has a current distributed CCR and a copy is on file at the utility. The City of McGrath is not on the current SNC list. The utility has an inventory control list and critical spare parts list and copies were provided. -87- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eee ee RUBA Activities For The Coming Quarter RUBA staff will continue work with the city staff as requested by the administrator and council to meet any management capacity indicators that are not currently being met. - 88 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ——————— ——————————————————eeeeeeeeeSeeOSOOO EAPO. Nanwalek Activity Report Community Overview Lead RUBA Staff: Ronalda Olivera, Anchorage Office 2009 Population: 226 Region: Kenai Peninsula Local Government: Tribal Council od Water is derived from a surface stream and is treated; a new surface water source is under development. Nanwalek has a piped water and sewer system which serves all homes in the village; most are completely plumbed. The village needs a larger water storage tank, new water and sewer mains, new fire hydrants, and a landfill expansion. RUBA Activity This Reporting Period On July 27, 2010, RUBA staff and EPA Project Officer Martha Barber traveled to the village of Nanwalek to conduct a RUBA management assessment. The findings from the RUBA assessment will be presented in a written report that includes recommendations, and an offer of assistance will be provided for any capacity indicators that were not met during the visit. The council and community realize the importance of community health, financial stability, effective utility management practice and sustainability. RUBA staff spoke with the Soldotna Alaska Department of Environmental Conservation Drinking Water Program Manager concerning the Nanwalek IRA water system. The system has been consistently on the Significant Non-Complier (SNC) list. ADEC is concerned about the frequency and type of violations because each of the violations represents a failure to operate and manage the water system in a manner that is consistent with public health protection. ADEC is requesting Nanwalek work with them in developing a written bilateral compliance agreement (BCA) in which Nanwalek outlines what steps are being taken to address the utility's deficiencies to include not only the monitoring and reporting violations, but also the deficiencies noted in the most recent Rural Utility Business Advisor (RUBA) assessment for Nanwalek. Addressing the deficiencies will ultimately improve the community's ability to sustain regulatory compliance and better protect public health for the long term. If Nanwalek does not take actions to address the problem with regulatory violations, the Drinking Water Program will take steps to pursue the administrative and monetary penalties. In November, Anchorage RUBA staff met with Nanwalek staff in Anchorage to answer questions about the new election ordinance and the next council election. Nanwalek staff requested advice on a schedule for passing the election ordinance so that the procedures will be followed for the next election. RUBA staff and the RUBA QuickBooks contractor traveled to Nanwalek in December to assist in setting up the utility accounting process. - 89 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No —& C$ Allrevenue and expenses for the utility are listed in the utility budget. & C1 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. & (C1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KX C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenscs- a eer sc nanan Nene NARS H Nee NE Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & 1 yYTDrevenues are at a level equal to or above those budgeted. & © yYTDexpenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. (1 W& Budget amendments are completed and adopted as necessary. Finances Comments: The Nanwalek IRA Tribal Council operated with a FY 10 budget until September 30, 2011. They have adopted the Federal fiscal year or October 1 through September 30. Revenue and expenses for the water/wastewater utility are listed within the budget. It is anticipated that the water/wastewater utility will be once again subsidized with Indian Health Service (IHS) funds. Monthly financial reports are prepared and submitted to the policy making body each month. The utility is current in paying all water/wastewater electric bills. The bookkeeper provided a current statement from Homer Electric showing a zero balance. Through an agreement with the Nanwalek IRA, the North Pacific Rim Housing Authority manages the fuel sales for the community. The North Pacific Rim Housing Authority is an Indian Housing Authority authorized by state law to engage in or assist in the development of low- income housing for Alaska Native/American Indian families. The bookkeeper stated the bulk fuel facilities have a 24,000 gallon diesel tank and a 12,000 gallon gas tank. Each tank is kept at an adequate supply of fuel year round. Year-to-date revenues are at a level equal to or above those budgeted, however the water and sewer revenues are not sufficient to cover operating expenses. The utility receives revenues to cover wages for the operator but fails to secure user fees or other sources to sufficiently cover operating expenses and repair and replacement costs. Therefore, the tribe subsidizes its water and wastewater utility with funds received from Indian Health Services (IHS) passed through Chugachmiut. Year-to-date expenditures are at a level equal to or below those budgeted. -90 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report OEE RUA REPO! 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. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Keke WOO OOOO OB =e & XR 00 Accounting Comments: The Nanwalek IRA Tribal Council has an adopted collection policy but does not actively follow it. A customer accounts receivable report was provided showing a balance outstanding of over $160,000. In the community, not all of the homes have curb stops and those homes cannot be disconnected. The homes that do have stops are not being disconnected for non-payment. Customers are not billed on a . Yegular basis (monthly). Billing is done on an irregular basis although all customers are being tracked through their QuickBooks accounting system. RUBA staff found that customer billing had been completed with errors and RUBA staff will work with the bookkeeper to resolve those issues. QuickBooks monitors accounts payable, accounts receivable, and calculates payroll and keeps records on file in the system. The bookkeeper provided a chart of accounts that identifies categories in a reasonable, usable manner. Monthly bank reconciliations are being completed for accounts. The current system for cash receipts to record incoming money is for staff to write a receipt of payment to the customer and enter the payment on the customer's account in QuickBooks. The bookkeeper then makes a deposit to the bank. The utility has a purchasing system that requires approval through the tribal administrator. Any item purchases over $5,000 must be approved by the council. Tax Problems Essential Indicators Yes No X [J The utility has a system to accurately calculate, track, and report payroll tax liabilities. Kl OF The utility is current on filing tax reports. &} =O The utility is current on making tax deposits. &) (1 [If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Nanwalek IRA Tribal Council does have a system in place to accurately calculate, track and report payroll tax liabilities. The bookkeeper files taxes online each pay period. The Council's First Chief signed a tax release form for the IRS. The IRS reported back that they are current on making all federal deposits. There are no past tax liabilities or liens on file. -91- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No & O The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & CF The utility has adopted and uses a Personnel Policy, which has been reviewed by an attomey, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XI The utility provides training opportunities to staff as needed and available. O OO KX we ww cy Personnel System Comments: The Nanwalek IRA Tribal Council has a posted worker's compensation insurance policy from Liberty Northwest Insurance Corporation that is in effect from March 21, 2010 to March 21, 2011. The Tribal Administrator states they follow their written personnel policy closely. The original policy was reviewed by Chugachmiut however, the administrator stated an updating and revising process is underway for all current written job descriptions within the tribal staff. The utility's personnel folders are orderly and contain a check list cover for each personnel file. Included on the check list is job application, job description, offer letter, payroll action form, W-4, I-9 with proper documentation, Alaska new hire reporting form, and drug free workplace agreement. There is a 90-day probation period for new hires. The staff is given opportunity to attend training and are allowed if funds are available or when opportunities by other sponsors become available. Organizational Management Essential Indicators Yes No (1 The entity that owns the utility is known and the entity that will operate the utility is set. (1 The policy making body is active in policy making of the utility. KK] The policy making body enforces utility policy. CL] The utility has an adequately trained manager. (1 The utility has an adequately trained bookkeeper. 1 The utility has an adequately trained operator(s). [] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. & | O The policy making body meets as required. Kl O The utility complies with the open meeting act for all meetings. XHXNWOkm Organizational Management Comments: The Nanwalek IRA owns the utility and is known as the entity that operates the utility. The council is active in policy making of the utility and has adopted ordinances for the utility. However, they are not always enforcing their policy; an example of non-enforcement is the collection policy. The utility has adopted the required ordinances that authorize it to operate. A Provisional Certificate of Public -92- July — August — September — October — November — December 2010 1°‘ 2" Quarter SFY11 - RUBA Report OOOO Kepe Convenience and Necessity has been issued for water and wastewater service from the Regulatory Commission of Alaska. The Nanwalek IRA Tribal Council has an adequately trained bookkeeper who has worked there for more than 11 years and is currently training a backup bookkeeper. The tribe also has an adequately trained administrator/manager. The operator received his provisional certification in April 2010. The operator is working with the Remote Maintenance Worker (RMW) to continue his training for the Nanwalek facility. Currently, Nanwalek Water Plant has been designated a Level 2 plant. The utility has adopted an organizational chart that reflects the current structure. The council is not required to by law, however it meets as required and complies with the open meeting act for all meetings. Operation of Utility Essential Indicators Yes No & OF Theutility operator(s) are actively working towards necessary certification. XO) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators (The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X OOOKOwW wo KXRRORO Of Operation of Utility Comments: The Nanwalek Utility Operator has completed and passed the Provisional level 1 exam in water treatment and wastewater treatment. The utility operator is being assisted by the Remote Maintenance Worker, Steve Evavold, from Village Safe Water. The utility also received a Provisional Certification from the Regulatory Commission of Alaska and is working at the level of service proposed. The utility uses the Operation and Maintenance manual as the safety manual, however, there are no official meetings. The utility operator provides status reports only when there is a problem or he can foresee a problem. A CCR for 2009 has been completed and distributed to the community residents. The Nanwalek Utility does not meet all required drinking water regulations and is on the Significant Non- Compliance List. They are on the current listing dated May 20, 2010, for Total Coliform Rule (TCR), Surface Water Treatment Rule (SWTR), stage one violations and monitoring. A written list of inventory or critical spare parts is not available. RUBA staff was informed that the utility tries to buy what is needed but does not always have the funding. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the Nanwalek IRA Council as requested to assist them in meeting all of the unmet management indicators. -93- July — August — September ~ October — November ~ December 2010 1I°'* 2" Quarter SFY11 - RUBA Report S————— OE OEE UDA REPO Nikolai Activity Report Community Overview Lead RUBA Staff: Ronalda Olivera, Anchorage Office 2009 Population: 88 Region: Interior Local Government: 2™ Class City od All 47 households and facilities use individual wells; of Naa ts these, only two units lack plumbing. Thirty-three homes, including ten new HUD housing units north of the airport, are connected to the piped sewage system. The remaining 15 homes use septic tanks. Funds have been requested for a master plan to rehabilitate the washeteria, develop two new wells, upgrade the landfill and expand the piped sewer system. RUBA Activity This Reporting Period On July 7, 2010 RUBA staff traveled to the City of Nikolai to provide on-site assistance. Upon arrival in Nikolai, RUBA staff walked to the city office with the QuickBooks consultant and spoke to the city ‘clerk about the goals for the onsite visit. Tasks completed during the trip included assistance with revisions and corrections of the uncategorized income and expenses within the QuickBooks accounting system, reconciliation of accounts payable, reconciling the December - June bank statements in QuickBooks, calculating and creating the FY 11 budget, entering the proposed FY11 budget into QuickBooks, setting up a memorized budget vs. actual report, and completing the quarterly 941 and Department of Labor reports. RUBA staff will follow up with city staff and provide further assistance upon request. On December 28-30, 2010, RUBA staff traveled to Nikolai to assist office staff and attend a city council meeting. The city utilizes QuickBooks for their accounting needs. RUBA staff assisted in catching up on bank reconciliations, fixing other accounting issues and researching the city ordinances regarding if a secretary-treasurer is required on the city council, and what duties are specific to each council position. The Nikolai city ordinances do not call specifically for a secretary-treasurer, but do require a clerk-treasurer. RUBA staff attended a city council meeting on the evening of the December 28, 2010 and answered questions concerning the role of a secretary-treasurer, and the city clerk/treasurer as outlined in the City of Nikolai's Code of Ordinances. -95- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report NS Sees seen ae eae enema Capacity Indicators Finances Essential Indicators Yes No & (C1 Allrevenue and expenses for the utility are listed in the utility budget. & (The utility has adopted a balanced realistic budget. & CO Monthly financial reports are prepared and submitted to the policy making body. XX CF The utility is current in paying all water/wastewater electric bills. & C1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KX OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. ans Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. (1 YTDrevenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. C] A monthly manager’s report is prepared. XX Budget amendments are completed and adopted as necessary. Ok O Finances Comments: The City of Nikolai drafted and adopted the FY 11 budget with RUBA assistance. The budget includes expenditures for the wastewater department. The city's budget has been entered into QuickBooks and the city clerk prepares a monthly financial report that compares actual income and expenditures to the budget. The City of Nikolai owns and operates the electric utility; they are current with the electric bill for the septic system. The City of Nikolai receives fuel from Brooks Fuel, Inc. on an as needed basis. All fuel orders are paid in full upon arrival. The City of Nikolai does not'charge residents for wastewater service because only a small portion of the community is on the system. The city has instead chosen to subsidize the wastewater utility through the fuel and electric sales revenue. Although the council does not receive a monthly financial report that compares actual income and expenditures to the budgeted amounts, the office provides this information with separate reports that, when compared, show the utility's year-to-date figures are at a level equal to those budgeted. Manager/operator reports are given verbally when requested by the council. Because of the small labor pool in Nikolai, many city council members either work for the city or donate time to the city to complete needed jobs or tasks. -96- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ee EAPO Accounting Systems Essential Indicators Yes No X O The utility has adopted a collection policy and actively follows it. Xl OF The utility bills customers ona regular basis. & OF Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & 1 Anaccounts payable system is in place. & CO The payroll system correctly calculates payroll and keeps records & CO Acash receipt system is in place that records incoming money and what it was for. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators &) O A chart of accounts is used that identifies categories in a reasonable, usable manner. O) W& Monthly bank reconciliation’s have been completed for all utility accounts. O W The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The city does not have an adopted collection policy for the sewer utility because they do not charge the customers. They do, however, have an adopted collection policy that they actively and consistently enforce for the electric and fuel utilities; these utilities subsidize the sewer utility. The city utilizes QuickBooks for accounts receivable, accounts payable and payroll. The QuickBooks system is set up properly and has been a tool to reliably keep the city's finances in order. Bills are issued on a regular basis by the Sth of every month in accordance with the city's billing and collection policy. Monthly bank reconciliations are not being completed for each bank account. Bank reconciliations have been completed through June 2010. RUBA staff will contact the QuickBooks consultant to assist in catching up reconciliations. The city purchasing system requires prior approval from the mayor or city clerk depending on the purchase amount. Once approval has been given, a purchase order is issued; however, requests are not compared to the budgeted amounts. Tax Problems Essential Indicators Yes No Kl OF The utility has a system to accurately calculate, track, and report payroll tax liabilities. Ol QW The utility is current on filing tax reports. Ol W 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 uses the QuickBooks accounting program to accurately track, calculate and report payroll tax liabilities. Liabilities are paid monthly. The IRS is reporting the City of Nikolai is not current with their payroll liabilities. The QuickBooks consultant and the RUBA staff assigned to the community is working with the community to resolve the issue. Alaska Department of Labor deemed the City of Nikolai compliant at this time. -97- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No KX OO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators 1) = & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. KX] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OC The utility provides training opportunities to staff as needed and available. & wo O Wo Personnel System Comments: The City of Nikolai has a posted workers’ compensation insurance policy in effect from July 1, 2010 to July 1, 2011 with Alaska Municipal League Joint Insurance Association (AMLJIA). The city's current hiring process is historical and is not written. Job notices are posted for ten days with the job title and description. Interested applicants apply at the city office. There is currently no probationary period for employees. Personnel folders contain: I-9, Job Application and Letter of Acceptance. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. Organizational Management Essential Indicators Yes No [] 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. O H The policy making body meets as required. y The utility complies with the open meeting act for all meetings. XXXRXRRH Organizational Management Comments: The City of Nikolai is known as the entity that owns and operates the utility, and is active in policy making for the utility. The city council has been actively enforcing the fuel and electric utility policy. The city clerk has attended a QuickBooks training class sponsored by the RUBA program. Utility operators have completed trainings that have adequately prepared them to operate the utilities. The City of Nikolai has adopted the necessary ordinance to give it the authority to operate. The Nikolai City Council meets as required and complies with the Open Meeting Act for all meetings. - 98 - July — August — September — October — November - December 2010 1°‘ 2"4 Quarter SFY11 - RUBA Report ee EE REPO. Operation of Utility Essential Indicators Yes No & CO The utility operator(s) are actively working towards necessary certification. & OC The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X O DOOWWXN wo WWOOOO Of Operation of Utility Comments: The utility operator is not certified and is actively working toward the necessary certification. A preventative maintenance plan for the existing system is on file in the city office. The City of Nikolai does not participate in AMLJIA monthly safety meetings or conduct other means of safety meetings. The utility operator reports to the mayor, vice-mayor or city clerk when there is a problem or when he can foresee one. The utility operator and council attempt to keep needed critical spare parts on hand but they currently have no written critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the City of Nikolai as needed to ensure the council has all the necessary assistance to meet the sustainable management indicators. QuickBooks consultants will continue to provide QuickBooks assistance as requested. Once the reconciliations are complete, a new financial report will be requested. -99- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ee 0 Oe APO Ninilchik Activity Report Community Overview Lead RUBA Staff: Ronalda Olivera, Anchorage Office 2009 Population: 824 Region: Kenai Peninsula Local Government: Non-Profit od The majority of homes use individual water wells or have water delivered. Two-thirds of all residences have individual septic systems and full plumbing; others use privies. The school operates its own well and water treatment facility. Many homes in this area are used only seasonally. The Water and Sewer Association has requested funding to construct a piped sewer system for homes in the Old Historic Ninilchik Subdivision. Lots are too small for both individual wells and septic systems. The VSW has identified a potential water source. The source is a well located in the old historic subdivision. A borough refuse transfer site is located in Ninilchik, at mile 138.5 Sterling Hwy. RUBA Activity This Reporting Period On August 30, RUBA staff conducted an on-site visit with the Ninilchik Water and Sewer Association (NWSA) staff. Assessment was completed September 27, 2010. Letters were sent to the community requesting the financial reports, as well as any other pertinent reports on the utility. Email was sent offering assistance in working on the unmet indicators when the organization is ready. - 101 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No —& CO Altrevenue and expenses for the utility are listed in the utility budget. & C1 The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. & OF The utility is current in paying all water/wastewater electric bills. & (C2 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. XK C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating EXPenses- Sustainable Indicators & C1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. xX YTD revenues are at a level equal to or above those budgeted. & 1 yYTDexpenditures are at a level equal to or below those budgeted. & © A monthly manager’s report is prepared. & (©) Budget amendments are completed and adopted as necessary. Finances Comments: The Ninilchik Water and Sewer Association currently doesn't have a constructed utility system. The association has funding allocated through the Village Safe Water (VSW) program, but construction is pending RUBA compliance. All financial documents are projections. The association has approved the projected calendar fiscal year 2012 budget and the manager stated that budgets are available through fiscal year 2014 on hand. VSW and Michael L. Foster and Associates (MLFA) engineers provided the NWSA with separate operating budget proposals and from the two budget proposals, NWSA was able to create the projected budgets. The projected budgets show that revenues to be generated will be sufficient to cover maintenance and operation costs, including repair and replacement costs. A Homer Electric Association, Inc. bill for the Ninilchik Water and Sewer Association was provided and is current. The bill is for the UV sewer treatment for the NWSA. Monthly financial reports with actual figures are not available as the association has not begun to bill customers. Once the system is constructed the bookkeeper, who has attended QuickBooks training, will generate reports using QuickBooks. The utility manager provides a managers report and projected financial reports to the utility board at the meetings. The manager's report consists of projected financial reports and correspondence with VSW and RUBA staff regarding the water and sewer project. Financial reports show projected income and expense figures against the proposed budget. Minutes need to be approved that reflect this. It is recommended that the minutes be typed. The association is actively planning for the new system and has gone through various discussions and budget variations that will best serve the community. YTD revenues and expenditures cannot be generated because the association does not bill for services at this time. The association board can only project these figures. The manager does have a sample bill that needs to be approved by the board and will be utilized once the system is constructed and ready for customer use. Budget amendments are completed and adopted as figures from the engineer have changed at various times. The association board makes amendments to the proposed budget as needed. - 102 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report en eseeeeroe renee eee ems Soe nL RUBA Repo: Accounting Systems Essential Indicators Yes No & CO The utility has adopted a collection policy and actively follows it. & OF The utility bills customers on a regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & O Anaccounts payable system is in place. J LJ The payroll system correctly calculates payroll and keeps records & CO Acash receipt system is in place that records incoming money and what it was for. xX The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & OO Achart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. & CO The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Although the system has not been constructed, the association does have a sewer and water ordinance that has a Billing and Payment section that defines Delinquent Bills, Administration and Enforcement. Other sections that are listed but not yet defined are Discontinuance, Restoration of Services, Unusual Demands, and other non financial sections. The utility does not issue bills as the system has not been constructed. However, the utility will utilize QuickBooks to generate customer bills once constructed. The bookkeeper does have projected accounts receivable in QuickBooks even though no billing has taken place. This is to show the association board what revenues to expect during the budgeting process and help generate realistic projections. The association accounting system is QuickBooks, which is capable of calculating payroll. Currently there is no need for a payroll system. All bookkeeper / manager / operator time has been voluntary to date as these positions are currently under the same person. A chart of accounts has been generated with the projected utility assets, incomes and liabilities. Once the system is constructed, the association will use QuickBooks as a cash receipt and disbursement system. Tax Problems Essential Indicators Yes No 1 ~The utility has a system to accurately calculate, track, and report payroll tax liabilities. 1 The utility is current on filing tax reports. [] The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Nok Tax Problems Comments: As this is a newly formed association, the board does not have any employees beyond community volunteers. All bookkeeping / manager / operator time has been voluntary. The Ninilchik Water and Sewer Association has filed for and obtained an Employer Identification Number (EIN) from the IRS. The association plans to utilize QuickBooks for payroll accounting. - 103 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No & OO 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. I The utility has adopted and follows a written personnel evaluation process that ties the job X 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. O WO Of Personnel System Comments: There are no employees, therefore no need for worker's compensation insurance at this time. The association does have a Personnel Policy Manual. Within the manual there is no evaluation process, hiring process, or probationary periods stated within the policies. The manager stated that there is a probationary period of 90 days, documentation regarding this is needed. There is a training section stated in the business plan and the association board has supported training opportunities when possible. Job descriptions and assignment of duties are listed in the Ninilchik Water and Sewer Utility Business Plan. 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. (1 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 & O The utility has adopted an organizational chart that reflects the current structure. Xl [] The policy making body meets as required. & © The utility complies with the open meeting act for all meetings. XHXXXXRH Organizational Management Comments: The Ninilchik Water and Sewer Association has been incorporated with the State of Alaska and has been given legal authority to operate a water and sewer utility. The association was created to be eligible for a water and sewer project from VSW for the Old Townsite residents. The policy making body is active in policy making of the utility planning process. They have held multiple meetings to prepare for the management of the utility once constructed. The manager / bookkeeper / operator has attended QuickBooks training and has obtained certification as a Small Water Treatment T operator. Also, as manager, the same person has 30 years work experience and is proficient in the duties - 104 - July — August — September — October — November — December 2010 I°'* 2" Quarter SFY11 - RUBA Report SOOO et Kepe necessary for a utility manager. The association has regular scheduled meetings and special meetings that comply with the Open Meetings Act, although as the association is a non-profit, this is not required. Operation of Utility Essential Indicators Yes No & OF The utility operator(s) are actively working towards necessary certification. & O The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators (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. 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X KKKNXY ke OOOOOO oO Operation of Utility Comments: The operator has certification in Small Water Treatment T that expires 12/31/12. As the system is not constructed to date, there is no preventative maintenance plan. A plan will be created during construction of the system. There is no current facility to provide an O and M report. The manager is also the operator so monthly reports go to the president of the association. At this time there is no need for safety meetings or CCR reporting. The utility will begin routine water testing once the system is constructed in order to meet all required regulations. There is no inventory or spare parts list at this time. These lists will need to be created once the system is constructed. RUBA Activities For The Coming Quarter RUBA staff requests financial and operation reports monthly, and continues to be available to provide assistance for any management capacity indicators that are not being met. - 105 - July — August — September — October — November - December 2010 1°“ 2" Quarter SFY11 - RUBA Report eNO a Kepe Pilot Point Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2009 Population: 61 ~ Region: Alaska Peninsula Local Governments: 2" Class City a Individual wells, cisterns, septic tanks and outhouses are used in . a od Pilot Point. There is no central water or sewer system, but all occupied homes have complete plumbing. The city provides septic pumping services and maintains a sewage lagoon. Over half of homes are used only seasonally, and a community landfill was completed recently. A wind turbine supplements the community's electrical supply, and there is a project underway to install a second wind turbine. Pilot Point Electric provides electricity. RUBA Activity This Reporting Period Dillingham RUBA staff received a signed RUBA Assistance Agreement and City Council Resolution from the mayor and city council of Pilot Point. The RUBA Program Manager also signed the agreement which will allow Dillingham RUBA staff to make quarterly site visits to Pilot Point and help them with various community issues. The assistance agreement states that the city will ensure city staff and city financial records will be available when travel is agreed upon by both parties. One of the first site visits will be to work with Pilot Point staff to develop a work plan with specific goals to accomplish. Currently Pilot Point is unable to meet all essential management indicators necessary to receive sanitation funding for construction projects. RUBA staff and city staff will work closely to correct those deficiencies. RUBA staff was contacted by Village Safe Water regarding a grant the engineer was writing to complete the work that was started last construction season to replace/repair individual wells and septics. In question was the RUBA management assessment and the deficiencies noted. RUBA staff explained the recent staff turnover and the concern that the RUBA assessment will not receive high priority locally for the months ahead. The new mayor is also new to municipal government; the city is currently seeking to hire a manager and a city clerk. The Village Safe Water engineer stated she was going to request a waiver regarding the requirement for an assessment during this interim time based on all the staffing changes and the effects that it will have on the assessment. RUBA staff explained that the efforts that were being realized in the quarterly reports were due to a strong manager who is no longer there, however the city's ability and requirement to meet the essential indicators remained the same to RUBA staff's observation. During this reporting period, Village Safe Water/CRW continued construction work in the community replacing wells, septic tanks and leech fields. The city held and certified the municipal election, voted in officers and a new mayor and adopted an FY11 budget. Staffing issues are an issue for the city as they continue to look for a city clerk and a manager. The office staff continues to have contact with the RUBA QuickBooks contractors. Staff from both the city and the tribe attended and successfully completed the RUBA Financial Management for Rural Utilities training in Dillingham this quarter. - 107 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Capacity Indicators Finances Yes No & O Allrevenue and expenses for the utility are listed in the utility budget. & (C1 The utility has adopted a balanced realistic budget. & CO Monthly financial reports are prepared and submitted to the policy making body. & C1 The utility is current in paying all water/wastewater electric bills. KI C1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KH OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expense: S. Sustainable Indicators Ol & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xx YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. & C1 Budget amendments are completed and adopted as necessary. Finances Comments: The FY 11 budget has been adopted and is balanced and realistic. Accounting functions are conducted using QuickBooks Pro. A monthly manager's report is prepared and submitted to the council. Revenues are exceeding expenditures for September, October and November 2010. The city has an Alaska Energy Authority fuel loan and has fuel sufficient for winter. Accounting Systems Essential Indicators Yes No Xl) The utility has adopted a collection policy and actively follows it. & CO The utility bills customers on a regular basis. Q [] An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. & (1 The payroll system correctly calculates payroll and keeps records & CO Acash receipt system is in place that records incoming money and what it was for. X OO 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. [] W& The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The city has a sanitation utility ordinance that was adopted May 8, 2007, which includes appropriate sections for the service provided, including a collection policy. The city has completed, with the assistance of the RUBA QuickBooks contractors, getting all customer balances updated and entered into QuickBooks. Regular monthly billing is now occurring on the scheduled dates. Accounting functions are conducted using QuickBooks Pro accounting software and include billing, accounts - 108 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report eee SEA AUDA REPO! receivable, accounts payable, payroll, and cash receipt disbursement. The city has not adopted written purchasing policies and procedures; however, an informal system exists. Tax Problems Essential Indicators Yes No & OC The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Hk OOO Tax Problems Comments: Staff maintains an accurate payroll processing system based on QuickBooks accounting software. On January 4, 2011, the Internal Revenue Service Taxpayer Advocate verified that the city is compliant with federal tax deposits. There is no recorded Notice of Federal Tax Lien against the city. On December 22, 2010, the Alaska Department of Labor and Workforce Development Employment Security, granted tax clearance. Personnel System Essential Indicators Yes N 0 & CO The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators KX OF 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. Kl OO The utility provides training opportunities to staff as needed and available. O Oo & X O kX OO Rw Personnel System Comments: The Employer's Notice of Insurance provided by AMLJIA for the period July 1, 2010 through July 1, 2011 is posted in the city office. The Division of Worker's Compensation website indicates Policy #72 is active on December 23, 2010. Title 7 of the Code of Ordinances contains a personnel policy, and includes a process for hiring, performance evaluation, and a probationary period. City staff is in the process of creating job descriptions for all positions. Completed are those for clerk, treasurer, airport manager, and fuel delivery. Descriptions for other positions, such as city manager, electric utility clerk, electric utility operator, sanitation operator, and others need to be written. The provisions for performance evaluations and the probationary period are not followed currently. Personnel folders for each employee are maintained. - 109 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Organizational Management Essential Indicators Yes No & OC The entity that owns the utility is known and the entity that will operate the utility is set. & OC The policy making body is active in policy making of the utility. Ol & The policy making body enforces utility policy. XX The utility has an adequately trained manager. Ol & The utility has an adequately trained bookkeeper. C1 The utility has an adequately trained operator(s). & CF The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & CO The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & CO The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Pilot Point is known as the entity that operates the utility. The city council meets regularly. A sanitation utility ordinance that was adopted May 8, 2007 includes appropriate sections for the service provided including a collections policy and service fees. Power Stat meters are now being used to collect past due amounts for electric and to keep residential customer accounts current by requiring payment in advance. Meetings are posted and comply with the Open Meetings Act. An organizational chart was adopted and is on file. Operation of Utility Essential Indicators Yes No & C1 The utility operator(s) are actively working towards necessary certification. & LJ} 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. & (0 The utility has a safety manual and holds safety meetings. EK C1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. WN The utility is operating at the level of service that was proposed. & C0 The operator provides status reports to the manager on a routine basis. & C0 The utility has completed and distributed its Consumer Confidence Report (CCR). HX CF The utility is not on the Significant Non-Compliance (SNC) list. () W& The utility maintains an inventory control list. O) & The utility maintains a critical spare parts list. Operation of Utility Comments: The community does not have a public wastewater collection/treatment system. Residents use septic tanks with drain fields, and the sanitation utility is responsible for pumping out those septic tanks and disposing of the sludge. There has been no effort to certify the operator involved with this service because there is no requirement to be wastewater certified for this activity. A preventative maintenance plan for the community's pumping equipment includes a list of maintenance tasks to be completed monthly and annually. There is no critical spare parts list nor is there a safety manual or safety meetings held. Since there is no public water system, CCR requirements and water regulations are not applicable. - 110- July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report SEO eee Ape With the exception of a fuel inventory for the fuel sales enterprise, there is not an inventory control list for the city’s utilities. RUBA Activities For The Coming Quarter RUBA staff will continue to provide assistance upon request and will remain available to assist. -111- July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Oe TEE RUDA Repo. Pilot Station Activity Report Community Overview Lead RUBA Staff: Eli Jacobson, Bethel Regional Office 2009 Population: 587 Region: Lower Yukon Local Governments: 2” Class City Py The City of Pilot Station operates the water and wastewater system. Most of the residential customers are now connected to the community's piped water and sewer system, as well as the City, Tribal, and Headstart buildings. The treatment station has two independent circulatory water lines controlled from the pump house. A few occupied houses which are old were not able to be connected to the system due to their condition. The sewage is piped into a lagoon that is located in the center of town. Relocation of the landfill/lagoon is being proposed. They are also attempting to get the older water/sewer lines replaced. RUBA Activity This Reporting Period RUBA staff traveled to Pilot Station October 12-14, 2010 to conduct a RUBA management assessment at the city's request. RUBA staff met with City Clerk Ruth Borromeo, Utility Clerk Anita Myers, and Utility Operator Rex Nick who answered questions and provided source documents that demonstrated the city had met all of the essential indicators and most of the sustainable indicators. On the second day of the visit, follow-up questions were answered and the remaining sustainable indicators that were not being met were discussed. A work plan was developed to satisfy the remaining sustainable indicators and RUBA staff will assist the clerk in making the necessary changes. The city clerk submitted an adopted organizational chart and the amended budget in December which allows RUBA staff to change two previously deficient sustainable indicators. RUBA and city staff will continue to correct additional sustainable indicators. - 113 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & OC The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. ee Sustainable Indicators O KK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & CO YTDrevenves are ata level equal to or above those budgeted. & XR OOO000 &X LJ 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. Finances Comments: RUBA has received Pilot Station's monthly financial statements through November 2010. The City of Pilot Station adopted its fiscal budget properly. The budget has a positive net income and is realistic. The November 2010 monthly financial report shows the revenues exceeding expenditures by $54,550. The council is provided with monthly financial reports by the city clerk and the meeting minutes reflect this. According to Alaska Village Electric Cooperative (AVEC) billing statements the city is current on paying the electric bill. The city has on hand a one year supply of fuel. There appears to be sufficient revenues to cover repair and replacement, however there is no repair and replacement line item in the budget. The year to date expenditures are below the December 13, 2010 adopted/amended budget. The revenues are also above the budget. The city clerk gives a monthly report to the council documented in the meeting minutes. City council meetings are set for the first Tuesday of each month and budget amendments are adopted as necessary. Accounting Systems Essential Indicators Yes No & C0 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. ReReXN BR OOO OO The utility has a cash disbursement system that records how money was spent. Sustainable Indicators & OF A chart of accounts is used that identifies categories in a reasonable, usable manner. & O Monthly bank reconciliation’s have been completed for all utility accounts. & oO The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 114 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report eee APO Accounting System Comments: Pilot Station uses a detailed manual system for all of its accounting. Pilot Station has a written and adopted utility collection policy, which they are enforcing. Customers are billed on a regular basis. Accounts receivable is done manually with cash separated from checks on different ledgers. Accounts payable is also manually maintained. A receipt book is used for all customer payments. Receipts are given directly or sent out for payments received. The receipt book is then used to enter the transactions on the ledgers. Pilot Station provided bank reconciliations. A sample purchase order was also provided. Tax Problems Essential Indicators & C0 The utility has a system to accurately calculate, track, and report payroll tax liabilities. & OF The utility is current on filing tax reports. & OF The utility is current on making tax deposits. & C0 If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Pilot Station uses a manual system to calculate and report payroll taxes. The Authorization to Request Federal Tax Information form was filled out and sent to the IRS. They were deemed compliant. They are also compliant with the State of Alaska tax reports and filing. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Ri 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. RX The utility provides training opportunities to staff as needed and available. O O OO oOo Kk WX We Personnel System Comments: Pilot Station's workers compensation insurance is through the Alaska Municipal League Joint Insurance Association, Inc for the period from July 1, 2010 through July 1, 2011. A personnel policy has been adopted and is in use. Some components should be added to the personnel policy such as written job descriptions, personnel evaluations, and the hiring process. Personnel folders that include I-9's, job application, and letters of acceptance should also be created. A probationary period for new employees should be established and practiced. On-the-job training and additional training is provided as necessary. Staff are encouraged to pursue further training opportunities. - 115 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - 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. [] 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). & OC The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators () & The utility has adopted an organizational chart that reflects the current structure. & C1 The policy making body meets as required. & OO The utility complies with the open meeting act for all meetings. KWH 0000 Organizational Management Comments: The City of Pilot Station owns the water treatment plant. City council acts as the policy making body and makes sure the policy is enforced. The utility is operated by city employees. The city clerk has twenty-six years of experience and is very organized. Additionally, the duties of manager and bookkeeper are performed by the city clerk. The city clerk also supervises the utility clerk and the operator. Both the city clerk and utility clerk are interested in QuickBooks training. They are good candidates and have this writer's recommendation for the training. The operator has been employed for eighteen months and is working on his certifications; the ordinances provide the city staff the authority they need for operation. The organizational structure is informally known however an organizational chart has not been adopted. The policy making body meets the first Tuesday of each month which is open to the public. Meetings are posted in the post office, city office and Native store. Operation of Utility Essential Indicators Yes No & (C0 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 & OC The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OOWXRR wo HHOOOO Of Operation of Utility Comments: The utility's operator Rex Nick is a permanent part-time employee. The operator has been sent to provisional training but did not pass the first time, however he is being sent again. The utility operator provided a copy of the preventative maintenance plan which has a daily check list. The city clerk is in daily contact with the utility operator. The utility should create a safety manual and hold regular safety - 116- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eI Repo. meetings. The utility is functioning as intended and no major outages have occurred. The CCR has been posted and a copy has been provided to RUBA. The city is not on the SNC list dated November 23, 2010. The utility does not have an inventory control, or critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with Pilot Station's staff on the remaining sustainable indicators. -117- July — August — September — October — November — December 2010 rit 2nd Quarter SFY11 - RUBA Report ee SEE UDA REPO! Port Heiden Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2009 Population: 83 Region: Alaska Peninsula Local Governments: 2" Class City 7 Individual wells and septic tank systems are used by most . homes in Port Heiden. The school operates its own well and treatment system. There are 31 of 37 occupied households that are fully plumbed. The city currently provides septic pumping services, and collects refuse three times a week. The landfill is located 6.5 miles northeast of the community. A VSW project is currently underway to replace aging septic tanks, and provide a new septic pumper truck. RUBA Activity This Reporting Period On November 29 through December 2, 2010 Dillingham RUBA staff traveled to Port Heiden for the RUBA agreement quarterly visit. The City of Port Heiden has been suspended from the Power Cost Equalization (PCE) program since 2009 due to the Annual PCE annual reports not being submitted to the Regulatory Commission of Alaska (RCA). RUBA staff assisted with completing the reporting requirements and helping the community regain active status in the PCE program. The dollar value to the community is $120,000 in lost revenuesa portion of which has been used to subsidize water/wastewater services. One fiscal year's report was completed onsite and the second report will be forthcoming upon some adjustments made to the QuickBooks file. The city is current on monthly PCE reporting forms; however, inconsistencies and irregularities are occurring in the reporting. Analysis of the reports showed where the inconsistencies were happening. RUBA staff is creating a method to assist the clerk in detecting inconsistencies in the reports at a quick glance, before they are submitted. Also, the city has not collected Community Revenue Sharing money due to not having created a Certified Financial Statement and RUBA staff is providing assistance with the statement. A new RUBA work plan was established and tasks were delegated between the RUBA staff and city staff. The city conducted and certified their municipal elections; the council elected their officers and voted in a mayor. The city council acts as the utility board. - 119 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. & & WOR ] OWOO oO | Oo Oo O X DOOR Finances Comments: QuickBooks Pro is used for accounting functions. It is unknown if revenues are exceeding expenditures without the monthly financial reports. The city provides garbage hauling, septic pumping, electric and fuel services. The city operates the sale of fuel and electrical services on a cash bases. The clerk has been working with the RUBA QuickBooks contractor on a regular basis to enter fuel inventories into QuickBooks and the continued tax liability issues. The city applied for and received a Rural Alaska Fuel Services (RAFS) bulk fuel loan and has taken delivery of the fuel. Supplies are sufficient for winter. Accounting Systems Essential Indicators Yes No XJ 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. (1 Anaccounts payable system is in place. (1 The payroll system correctly calculates payroll and keeps records LI A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. ainable Indicators 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. Ol & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXX wWwO wn = a os - 120 - July — August — September - October — November — December 2010 1°‘ 2"4 Quarter SFY11 - RUBA Report ee _ EO0C—— em EO Accounting System Comments: There is no collection policy for septic pump outs included in the Code of Ordinances provided to RUBA staff. Charges for electric services are paid using the PowerStat system, which requires payment in advance, and is an effective way of ensuring payments. Customers pay for heating oil at the time of purchase and septic pump-outs are billed at the end of the month in which the service was provided. City staff was unaware of a written purchasing policy. All accounting is recorded in QuickBooks 2010 that is installed on a single computer. A chart of accounts is used and with the new fiscal budget is being pared down to better match the budget. Monthly bank reconciliations are current. Tax Problems Essential Indicators Yes No i The utility has a system to accurately calculate, track, and report payroll tax liabilities. Ol BW The utility is current on filing tax reports. KX OF The utility is current on making tax deposits. Ol & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Alaska Department of Labor confirmed that the city is meeting Alaska ESC tax obligations for the period ending 09/30/10. The authorization to request federal tax information was sent for a signature from the city on 12/22/10 to determine if the taxpayer is compliant with Federal Tax Deposits and that the city does not have a recorded notice of federal tax liens. RUBA staff is awaiting its return. Personnel System Essential Indicators Yes No Xl CO 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. oO The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. IK Wh Xk WwW WO O -121- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Personnel System Comments: The current workers compensation insurance coverage is provided through Alaska Municipal League Joint Insurance Association (AMLJIA). The Division of Workers Compensation website indicates that the policy was active on December 23, 2010. The Code of Ordinances supplied to RUBA staff includes a basic personnel policy, however it does not include written job descriptions, nor does it include a hiring process or a probationary period for city employees. The policy does provide for annual evaluations. Folders for each employee include W-4's, I-9's and pay records. City personnel are offered training opportunities as finances allow. The Remote Maintenance Worker (RMW) and RUBA staff provide onsite training regularly. 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. (1 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). 1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators {I The utility has adopted an organizational chart that reflects the current structure. Oo & OC The policy making body meets as required. H OF The utility complies with the open meeting act for all meetings. OWXXRwO Organizational Management Comments: The City of Port Heiden owns and operates the community's utilities, however, the city's code of ordinances has no utility ordinance to authorize or set out guidelines for management of the utilities. City staff is working with RUBA staff to develop a utility ordinance as well establishing an organizational chart for the city. The clerk/administrator/treasurer is adequately trained. The utility does not require trained operators, however employees keep updated in hazmat training, CPR and safety classes. The city council meets as required and complies with the open meetings act. - 122- July — August — September — October — November — December 2010 1°‘ 2" Quarter SFY11 - RUBA Report —————— ———— —— ————— ————————————————————————e Operation of Utility Essential Indicators Yes No & CO The utility operator(s) are actively working towards necessary certification. O & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & 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. CO) W®& The utility has a safety manual and holds safety meetings. EX C1 Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. i The utility is operating at the level of service that was proposed. C0 = & The operator provides status reports to the manager on a routine basis. & CO The utility has completed and distributed its Consumer Confidence Report (CCR). & C1 The utility is not on the Significant Non-Compliance (SNC) list. (1 W& The utility maintains an inventory control list. QO & The utility maintains a critical spare parts list. Operation of Utility Comments: The utilities and services offered by the City of Port Heiden do not require certification of its operators, however preventative maintenance plans for septic pumpout services should be created and implemented. The City of Port Heiden does not operate a water utility so regulations regarding water quality and reporting do not apply. Management of the utilities and services offered by the city would be improved with monthly operations and maintenance reports from the operators and the use of separate lists for inventory control and critical spare parts. Implementing a safety manual and holding regular safety meetings would enhance safety. RUBA Activities For The Coming Quarter RUBA staff and Port Heiden city have developed a workplan for assistance. RUBA assistance will be provided as requested to help the city clerk in performing his duties and completing the work plan tasks. - 123 - July — August — September — October — November — December 2010 rig Quarter SFY11 - RUBA Report — ccc reo rT arter SEY 11 - RUBA Repo Port Lions Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2009 Population: 200 Region: Kodiak Island Local Governments: 2” Class City ad The BIA and Indian Health Service built the community sanitation system in 1965. Over 100 residences are connected to the city's piped water and sewer systems and 95% of these have complete plumbing. The Branchwater Creek Reservoir provides water, which is treated and stored in a 125,000-gallon tank. The existing dam is weakening; funding has been provided to make repairs. A local priority is to construct a new 500,000-gal. dam on the creek. A new landfill site has been identified. Kodiak Electric Association provides electricity. RUBA Activity This Reporting Period RUBA staff received calls from the City of Port Lions regarding drug testing for city employees and referred the city to Alaska statues 23.10.600- 23.10.699 which addresses drug and alcohol testing. It is important the city understands testing costs would be an expense of the city and before testing could take place the council would have to adopt a written policy for the testing, retesting and informing employees of the policy. RUBA staff received a call from the City of Port Lions requesting information on assistance drafting a resolution to support the City of Port Lions participating in the State of Alaska Political Subdivision Group Health and Life Plans. RUBA staff made contact with the Division of Retirement and Benefits to clarify what the city needed to submit and provided a resolution template to the City of Port Lions - 125 - July — August — September — October — November — December 2010 1°‘ 2"4 Quarter SFY11 - RUBA Report Capacity Indicators Finances Yes No RX Oo eX O RO xX O = ® O All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating Expenses. nnn Sustainable Indicators O & i) X O oO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: In October 2008 the City of Port Lions revised the water/sewer/garbage rates to ensure they were charging enough to cover the operating expenses. The Native Corporation is the community fuel supplier, and the city has budgeted funds to cover fuel purchases for the year. Each month the city clerk supplies the council with a financial report, along with a written clerk's report. The mayor reports verbally to the council. Accounting Systems Essential Indicators The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. ainable Indicators Yes No ml — MO X ml = ® O XR O & Sust: &® O XH Oo x A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 126 - July — August — September — October — November — December 2010 1°‘ 2" Quarter SFY11 - RUBA Report ee A Repo. Accounting System Comments: The city utilizes QuickBooks for accounting and payroll. The city budget is on an Excel spreadsheet and it is reviewed and updated monthly. The city has a collection policy, which it actively follows, and customers are billed on a regular basis. A purchasing system is in place which requires a purchase order to be submitted to the clerk, who reviews it with the mayor; a decision is made to approve or deny the request based on the budget. Tax Problems Essential Indicators & CO The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CO The utility is current on filing tax reports. [1] W& The utility is current on making tax deposits. & C1 [Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city signed a tax information release form. The Internal Revenue Service responded that the city currently is out of compliance and owes for the last quarter. The State Department of Labor (ESC) reported that the City of Port Lions is in compliance. Personnel System Essential Indicators Yes No XC 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 attomey, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Kl OF Theutility provides training opportunities to staff as needed and available. % we ww El EI); BIE] Personnel System Comments: The city has a posted worker's compensation insurance policy in effect. It was posted on a community bulletin board in the city office. The policy is in effect from July 1, 2010 - June 30, 2011. The clerk stated the city has an adopted personnel policy. Employee personnel folders are thorough and complete. The utility's probationary period for new hires is three months. - 127- July — August — September — October — November — December 2010 I°'“ 2" Quarter SFY11 - RUBA Report 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. C1 The policy making body enforces utility policy. CL] The utility has an adequately trained manager. (1 The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). & Oo The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators O & 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. HXXRRH Organizational Management Comments: The policy making body is active and informed in making and enforcing utility policies. The mayor and clerk are knowledgeable about the utility's policies, activities, and financial health. Operation of Utility Essential Indicators Yes No & CO 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 & 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. 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 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. O RRRRRX wo OOOO Operation of Utility Comments: The city has two qualified water operators. The water operator submits a monthly report to the city council and reports any significant activity immediately to the mayor. The main operator is working toward receiving his Level | certification in water treatment. With the assistance of the RUBA program, the Regulatory Commission of Alaska (RCA) Provisional Certification application was completed and approved. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the community to mantain sustainability of the utility. - 128 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report EOE ee Saint Mary’s Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2009 Population: 553 Region: Lower Yukon Local Governments: 1* Class City, od Water is derived from Alstrom Creek reservoir and is treated. The majority of the city (156 homes and facilities) have complete plumbing and are connected to the piped water and sewer system. Waste heat from the power plant supports the circulating water system. A 1.7 million-gallon sewage lagoon provides waste treatment. Approximately 6 residences haul water and use honey buckets; the city provides hauling services. The community is slated for funding for a water system upgrade which will include replacing water mains, hydrants and service lines during the summer of 2010. RUBA Activity This Quarter As of September 2010, Saint Mary’ billing for its water and sewer services have been handled by Alaska Native Tribal Health Consortium's Billing Assistance Service. Documentation was provided this quarter to bring the city into compliance with all RUBA essential indicators. - 129 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & CO Aillrevenue and expenses for the utility are listed in the utility budget. & OC The utility has adopted a balanced realistic budget. & © Monthly financial reports are prepared and submitted to the policy making body. & OC The utility is current in paying all water/wastewater electric bills. & OCF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & CO The utility is receiving revenues (user fees or other sources) sufficient to cover operating EXPENSES. Sustainable Indicators K CO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Hi YTD revenues are at a level equal to or above those budgeted. & O) yYTDexpenditures are at a level equal to or below those budgeted. & xX (1 A monthly manager’s report is prepared. (1 Budget amendments are completed and adopted as necessary. Finances Comments: The city's FY11 budget was adopted on July 6, 2010 and appears to be balanced, detailed and realistic; a copy is on file at the Bethel RUBA office. Monthly financial reports for June, July and August of 2010 were provided along with minutes from a September 7, 2010 city council meeting documenting they were reviewed and approved by the council. An October 8, 2010 correspondence from Alaska Village Electric Cooperative (AVEC) indicated that the city was current in paying all their electric accounts. The city purchases fuel from Crowley, which has a fuel distribution tank farm located on city property. On October 8, 2010 Saint Mary's city manager indicated that the city has approximately 23,000 gallons of fuel on hand which should be enough for the winter. Bethel RUBA staff contacted Crowley Petroleum Distribution by phone on October 8, 2010. Crowley indicated that Saint Mary's has a significant outstanding balance for fuel delivered on July 17, 2010 and that it will not be extending additional credit to the city until their outstanding balance is paid off. Saint Mary's is expecting payment for gravel deliveries it made during the summer to pay the Crowley fuel bill. The city will also be eligible for Community Revenue Sharing (CRS) and Payment in Lieu of Taxes (PILT) funds once their FY 2009 Audit is complete. The water and sewer utility is significantly subsidized by the city's rock crushing operation. A monthly manager's report is briefly mentioned in the minutes for the September 7, 2010 council meeting and written reports from previous meetings have been provided. - 130 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report —_——————— Be Eee ee ee Accounting Systems Essential Indicators Yes No & CO The utility has adopted a collection policy and actively follows it. & CO The utility bills customers on a regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & OO Anaccounts payable system is in place. Kl OF The payroll system correctly calculates payroll and keeps records 7 O] Acash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators OO A chart of accounts is used that identifies categories in a reasonable, usable manner. C1 Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. eZ RR Accounting Comments: There is a collection policy located in the city's code of ordinances. A copy of the ordinance is in the community file located in the Bethel regional office. As of September 2010, Saint Mary's billing for water and sewer services has been handled by Alaska Native Tribal Health Consortium's Billing Assistance Service. A September 2010 accounts receivable aging report for the utility indicates there are no accounts past due for more than 60 days. A copy of a customer billing has been provided and is sent out on a monthly basis. Billing statements contain a starting balance, current billing for water, sewer and garbage collection. Past due sections for current amount due, 30 days, 60 days, 90 days and over 90 days past due are also included in the monthly statement. The city uses QuickBooks Pro for their accounting system and for tracking payroll taxes. A cash receipt journal is used for receiving check and cash payments; transactions, are entered into QuickBooks. A copy of the chart of accounts was provided and is actively being used. A copy of their procurement policy, Chapter 4.05 was also submitted and is on file. Bank reconciliations for April and May of 2010 were provided. Copies of purchase orders were provided which reflect a pre-approval requirement for purchases. The city has hired a CPA and an accounting firm to get audits completed for FY 2009 and 2010. Tax Problems Essential Indicators Yes No & C2 The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. Xl || The utility is current on making tax deposits. Kl C1 Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: An October 11, 2010 phone conversation with a field auditor with the Alaska Department of Labor indicated the city is current with its filings and deposits for Employment Security Taxes. On October 13, 2010, Bethel RUBA office received correspondence from the IRS indicating Saint Mary's was in compliance for federal taxes from 2008 through 2010. The city was not listed on the July-August 2010 LIEN WATCH: A Review of Small Community Liens. - 131 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report Personnel System Essential Indicators Yes No KO 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. CO) W& The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. Ol & The utility has an adequate written hiring process. [] & The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & CO The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & C1 The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of St. Mary's is insured by Alaska Municipal League Joint Insurance Association, Inc (AMLIJIA). Proof of the workers compensation insurance coverage was verified on October 8, 2010 from the Department of Labor, Worker's Compensation website. A certificate of coverage for the city valid through July 11, 2011 is also on file at the Bethel RUBA office. A 'City of St. Mary's Employee Handbook' was adopted in 1996 and needs to be reviewed and updated. Job descriptions for the following positions were provided: water and sewer utilities operator and assistant operator for the water and sewer services. A copy of City Ordinance Chapter 2.05 stipulating the powers, duties and responsibilities of the city clerk and city manager is on file. The city manager gives informal employee evaluations but not written evaluations. A written hiring process was not found in the Employee Handbook or the city's code of ordinances. The city's personnel files do not contain letters of acceptance; about half the files do not contain applications; and a few files lacked I-9s. The city's employee handbook briefly mentions a probationary period for evaluating new employees. Informal interviews with employees in May of 2010 indicated training opportunities are provided by the city and staff are encouraged to develop and increase their skills. Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. KX (CO The policy making body is active in policy making of the utility. & CO The policy making body enforces utility policy. & [] The utility has an adequately trained manager. & CF The utility has an adequately trained bookkeeper. & OF The utility has an adequately trained operator(s). X L} The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & (O The utility has adopted an organizational chart that reflects the current structure. & (CO The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. - 132 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Ei EO OE Eee ep Organizational Management Comments: A copy of Saint Mary's Code of Ordinances Chapter 2.13 Division of Freshwater and Wastewater Utilities System is on file. As of July 2010, billing for their water and sewer services has been handled by Alaska Native Tribal Health Consortium's Billing Assistance Service. A September 2010 accounts receivable aging report for the utility indicates there are no accounts past due for more than 60 days. The council meets monthly at which time they receive status reports from the city manager and the water and wastewater operator about the utility's equipment, infrastructure and services. The city manager was hired in June of 2010 and has 15 years experience working with tribal and city governments and bachelor's degrees in accounting, business administration, and economics. The Deputy Clerk/Treasurer has 16 years experience in the banking industry; 18 months experience as a city clerk in arural Alaska community; a bachelor’s degree in Public Administration; and is QuickBooks certified. The lead utility worker is well qualified; has a bachelor's degree in aquatic resources and an associate's degree in fisheries technologies and has worked for the city for sixteen years. He also has the following state certificates: Water Treatment Level 3, Water Distribution Level 2 and a Wastewater Treatment Level 1, all expiring on December 31, 2010. He also holds a Wastewater Collection Level | Certificate which expires on December 31, 2011. A recently adopted organization chart for the city government was provided by the interim city manager. The city council holds regular meetings on the first Tuesday of each month and the meetings are open to the public. The meeting agendas are posted prior to council meetings. Operation of Utility Essential Indicators Yes. No Xi LJ The utility operator(s) are actively working towards necessary certification. KI C1 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 t checks” the facilities to see that the maintenance items are being completed. (1 W® 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. & OCF 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. & C2 The utility has completed and distributed its Consumer Confidence Report (CCR). 1 =O The utility is not on the Significant Non-Compliance (SNC) list. & CO The utility maintains an inventory control list. & =O The utility maintains a critical spare parts list. Operation of Utility Comments: The utility worker has many training certificates including Water Distribution Level 4 with an expiration date of December 31, 2010. A sample of the inventory control list and task description for the water and sewer system for 2007 and 2008 was submitted. It was not clear whether or not safety meetings had been held. Saint Mary's is not on the July 2010 Significant Non-Complier list. Copies of the Consumer Confidence Report and critical spare parts list are on file in the Bethel regional office. RUBA Activities For The Coming Quarter Bethel RUBA staff will be working with Saint Mary's city manager to help the city comply with remaining Sustainable Indicators. - 133 - July — August — September — October — November — December 2010 1°'* 2"4 Quarter SFY11 - RUBA Report OOOO PO Shishmaref Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2009 Population: 606 Region: Bering Straits Local Governments: 2"* Class City, a The City of Shishmaref operates a central watering “Re 4 point, a water truck delivery service, multiple watering Pe AF points, a washeteria, and a honey bucket service. The city council is the policy making body for the utility. Water is derived from a surface source; it is treated and stored in a new tank. Shishmaref is undergoing major improvements, with the construction of a flush/haul system and household plumbing. No homes have piped water at this time. Many residents continue to haul their own water. The city hauls honey buckets and services the new flush tanks. Flush systems are functional in 17 residential homes. The school, clinic, city hall and fire hall are connected to a sewage lagoon. RUBA Activity This Quarter The city clerk acts as the supervisor of all the city employees, including the utility operators. The city clerk's hours were cut back to four hours a day to accommodate a new grant writer position, but the city council decided it would be better to retain the original hours of seven hours a day for the clerk to keep up with supervision of the city employees. RUBA staff had recommended that the city clerk should retain her original work hours to keep up with departmental issues because federal and State grants are now less available and harder to get. The City of Shishmaref signed a RUBA assistance agreement in May 2010. RUBA staff assigned to Shishmaref resigned shortly after the agreement was signed and the vacancy resulted in RUBA being unable to make the quarterly onsite visit for assistance. After an extended recruitment process, RUBA has filled the position and onsite assistance will resume in January 2011. - 135 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & CO Allrevenue and expenses for the utility are listed in the utility budget. ~K (1 The utility has adopted a balanced realistic budget. & 1 Monthly financial reports are prepared and submitted to the policy making body. & CO The utility is current in paying all water/wastewater electric bills. & OF Theutility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & CO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. A Sustainable Indicators Kl CO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & O YTDrevenues are at a level equal to or above those budgeted. & © YTDexpenditures are at a level equal to or below those budgeted. & OO A monthly manager’s report is prepared. OO W& Budget amendments are completed and adopted as necessary. Finances Comments: The city bookkeeper continues to make excellent, comprehensive and complete monthly financial reports. The city made a balanced and realistic budget for FY 11, including the utility department. The bookkeeper uses Excel spreadsheet format to make the monthly financial reports. Accounting Systems Essential Indicators Yes No & (0 The utility has adopted a collection policy and actively follows it. & (1 The utility bills customers on a regular basis. & © Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & OO Anaccounts payable system is in place. & (The payroll system correctly calculates payroll and keeps records & OO Aceash 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. 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. 1 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 bookkeeper is familiar with and uses QuickBooks Pro for the city's finances. The QuickBooks Pro monthly financial reports are converted to Excel spreadsheet format with ease which makes them much easier for council members to read and understand. - 136 - July — August — September — October — November ~ December 2010 1°'* 2" Quarter SFY11 - RUBA Report EL RUBA Repo Tax Problems Essential Indicators Yes No & OC The utility has a system to accurately calculate, track, and report payroll tax liabilities. & OF The utility is current on filing tax reports. KX OF The utility is current on making tax deposits. & C1 [If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city uses QuickBooks Pro to make tax deposits immediately after payroll is completed. All quarterly tax reports are done timely. Tax reports and records are done using QuickBooks Pro. Personnel System Essential Indicators Yes No & (1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators KX OF 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. Kl OF The utility provides training opportunities to staff as needed and available. &h OX Ww O w8O OOF Personnel System Comments: The city is current with general liability and workers’ compensation coverage. Alaska Municipal League-Joint Insurance Association provides workers’ compensation coverage. The city posts workers’ compensation coverage currently in effect. - 137 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report 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. & C1 The policy making body is active in policy making of the utility. & OC The policy making body enforces utility policy. & OF The utility has an adequately trained manager. Xl The utility has an adequately trained bookkeeper. & CO The utility has an adequately trained operator(s). x [] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators OO) & The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city council acts as the utility board and is active with the utility issues. This coming municipal election on the first Tuesday of October, there will be two city council seats vacancies. The mayor resigned his mayor ship but retained his city council seat. Karla Nayokpuk took over as mayor and is very active with utility issues. Operation of Utility Essential Indicators Yes No & CO The utility operator(s) are actively working towards necessary certification. & CO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators (1 W& The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xi OOOOkKR wo RReRRO Operation of Utility Comments: The utility operators are working towards obtaining the necessary certification to adequately operate at the necessary level of the utility system. The utility still does not hold safety meetings or have a formal safety manual. The utility has not completed the annual CCR for 2009. The utility is currently on the SNC list for stage 1 violations. The utility has not missed a monthly sample in the past twelve months but the system still exceeds the TTHM RAA MCL. - 138 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ee Repo. RUBA Activities For The Coming Quarter Nome RUBA staff will make at least one trip to the city to work with the city council and city staff to meet the essential and sustainable indicators identified in the quarterly RUBA report. - 139 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report OE EA AUDA REPO Stevens Village Activity Report Community Overview Lead RUBA Staff: Brendan Smyth, Fairbanks Regional Office 2009 Population: 64 Region: Interior Local Governments: IRA Council od Stevens Village has a small washeteria with three “2, a washers, two dryers, two showers, and two bathrooms. Fain, pF The washeteria was upgraded in 2002. The water plant provides service to the school and to the health clinic. Residents haul water from a watering point, and use honey buckets and outhouses for sewage disposal. Sewage from the washeteria, clinic and school is disposed of in a lagoon. The lagoon is probably filled near capacity and should be discharged. A VSW sanitation planning feasibility study was completed in 2002, but was not approved. The scope of the new feasibility study has been changed several times to include additional alternatives in an effort to try to identify options that are affordable to the community. Stevens Village had planned on constructing a new multi-use facility to include a Denali Commission funded Clinic and a Hygiene Center with public showers and restroom facilities, but may be looking at renovating existing facilities as a more viable option. A design for a new solid waste facility has been completed. RUBA Activity This Quarter Fairbanks RUBA staff traveled to Stevens Village November 15-16, 2010. The purpose of the trip was to conduct financial and budget training with the tribal office staff and to review the RUBA assessment essential indicators. The village accountant in Fairbanks had let the community know that the firm will no longer be representing the community’s interests. The community will need training to complete a budget and to complete other financial reports. While onsite, RUBA staff created an Excel form that the utility clerk can use to report the income from the washeteria. In addition, RUBA staff gathered documentation regarding meeting agendas, billing practices, and cash receipts. The only customer billed is the school and when the utility clerk provided documentation of current billing, that essential indicator was corrected. RUBA staff contacted the community administrator to discuss the operator status for the utility in the village. RUBA staff received an email from the Department of Environmental Conservation (DEC) concemed with water conditions in the village. RUBA staff brought those concerns up with the administrator and asked for an update on who is doing the operator duties in the village. RUBA staff will travel to Stevens Village in January to assist with installation and training of QuickBooks Pro for the utility accounting system. - 141 - July — August — September — October — November — December 2010 1°‘* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No CO) ®& Allrevenue and expenses for the utility are listed in the utility budget. Ol & The utility has adopted a balanced realistic budget. 1 & Monthly financial reports are prepared and submitted to the policy making body. Ol & The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. as SS 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. XX A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. OOOO Finances Comments: The revenues are not listed in the budget, there is no budget yet to look at and see if it is realistic or not. Basic monthly finance reports are given to the council, though since no budget is created they can garner only rudimentary information. The utility has, on hand, a year’s supply of fuel. The utility receives revenue but does not track expenses so it cannot be determined if they cover the operating expenses. Without a budget, the YTD expenditures and revenues cannot be seen to be below or equal to those budgeted. No monthly reports have been sent to the RUBA office, RUBA staff will attempt to gather the reports. Accounting Systems Essential Indicators Yes No & CO The utility has adopted a collection policy and actively follows it. & CO The utility bills customers on a regular basis. & CO Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. & CO Anaccounts payable system is in place. Kl [] The payroll system correctly calculates payroll and keeps records & CO Acash receipt system is in place that records incoming money and what it was for. Ol & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & CO A chart of accounts is used that identifies categories in a reasonable, usable manner. i) Monthly bank reconciliation’s have been completed for all utility accounts. Ol & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 142 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report EEE Accounting Comments: The village has adopted a collection policy and follows it. The only customer they have is the school and RUBA staff has seen the invoice history and knows they are billed regularly. The accounts receivable is in place and tracks the customer and does report past due amounts. The accounts payable system tracks the bills the utility owes. The payroll system is correct and records are kept. A cash receipt system is in place; the clerk uses a receipt book that RUBA staff looked through. The utility does not have a cash disbursement system that records how money was spent. The chart of accounts is located with the accountant in Fairbanks and RUBA staff has observed that it is reasonable and usable as well as the monthly bank reconciliations being done. There is no purchasing system in place for the utility. Tax Problems Essential Indicators Yes No & O The utility has a system to accurately calculate, track, and report payroll tax liabilities. & CO The utility is current on filing tax reports. Ol W& The utility is current on making tax deposits. QO ® I there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS deems the village compliant at this time. The State of Alaska, Department of Labor reports that Stevens Village is not current on making tax deposits. Personnel System Essential Indicators Yes » No & 01 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators KX CO The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &) The utility provides training opportunities to staff as needed and available. O OO Of ® We wo Personnel System Comments: The utility has a posted a notice of workers compensation insurance policy with Alaska National Insurance Company that is effective until July 2011. The utility has a personnel policy and a copy of it is located in the Fairbanks RUBA office. The utility does have job descriptions that were shown to RUBA staff though the utility does not have any job evaluations that are done regularly that follow the job descriptions. The utility does not have a written hiring process and does not keep employee files. The utility has a 90-day probationary period but does not conduct evaluations of employees. The utility provides training opportunities for employees when needed. - 143 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ees Organizational Management Essential Indicators Yes No & C0 The entity that owns the utility is known and the entity that will operate the utility is set. OO) W®& The policy making body is active in policy making of the utility. CO & The policy making body enforces utility policy. & OF The utility has an adequately trained manager. Xi The utility has an adequately trained bookkeeper. XK =O The utility has an adequately trained operator(s). & OC The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators OO) @& The utility has adopted an organizational chart that reflects the current structure. Ol & The policy making body meets as required. Ol ®& The utility complies with the open meeting act for all meetings. Organizational Management Comments: The village recently adopted the necessary bylaws to give it authority to run the utility, though the tribal council is not active in policy making. There is no utility policy to enforce, and the only billed entity is the school. The clerk (who does the job of clerk and post master) acts as the utility manager. Stevens Village has a trained bookkeeper in Fairbanks. RUBA staff has been informed there is a substitute operator who has attended classes, yet needs to complete additional classes to renew old certifications. The village has adopted the necessary regulations to give it authority to operate the utility. The utility has not adopted an organizational chart. The policy making body does not meet on a regular schedule. RUBA staff recommends that the policy making body keep to a planned schedule of meeting dates and times. Operation of Utility Essential Indicators Yes No & OC The utility operator(s) are actively working towards necessary certification. & C) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Ol W& The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. OOOOOkX Wo HHO Of Operation of Utility Comments: RUBA staff was informed that a member of the community conducts the duties of the water operator. More training is needed and the individual is scheduled to attend the next available training. The utility has a preventative maintenance plan developed for the existing facility. The manager does not receive an operation and maintenance report as no operator is working regularly in the utility. The utility does -144- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ———— OE OEE TC RUDA Rep. not have a safety manual and does not hold safety meetings for the operators and staff. The utility facilities have not suffered any major problems/outages due to management issues. The utility is currently operating at levels that are proposed, the school has not complained about service and residents have received enough treated water. The operator does not provide status reports because there is no regular operator and no records are being kept of any operator work that is completed. The utility has not distributed a Consumer Confidence Report (CCR) for the last year of operation. The utility has received a letter from DEC stating they have 120 days from December 15, 2010 to complete required changes to their utility. The changes are outlined in the letter sent to the community. The utility does not maintain either an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter During the upcoming quarter RUBA staff plan on traveling to the community to assist in setting up a QuickBooks file for the utility clerk to better report the finances to the accountant in Fairbanks. Also to correct the remaining issues in the RUBA assessment essential indicators. RUBA staff will continue to discuss these things with the administrator, clerk and accountant. - 145 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report OOOO Eee Teller Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2009 Population: 261 Region: Bering Straits Local Governments: 2" Class City od Teller does not have a piped water/wastewater utility. te, . : Vee, During the summer, water is hauled from the Gold Run ‘ River (20 miles away) by the City water truck, and delivered to home storage tanks. In the winter, treated water is delivered from a large storage tank at the washeteria, or residents use melted ice from area creeks. A few residents use their own ATV's or 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 September 1-2, 2010 to assist the city clerk in reviewing the draft FY11 budget, completing the FY09 Certified Financial Statement, resolution for FY11 Community Revenue Sharing (CRS), and resolution for Payment in Lieu of Taxes (PILT). A public hearing for the budget was set for September 7. It is expected that the resolutions will be passed at the same meeting and will be forwarded to Juneau soon after to receive CRS and PILT payments. RUBA staff also reviewed the timeline and requirements for the upcoming municipal election to be held on October 5. There will be two vacant council seats this year and RUBA staff will provide assistance with the election, including travel to the community if requested. While onsite, RUBA staff also encouraged the Teller Native Corporation president to apply for funding to obtain a 20k gallon capacity fuel oil tank so the community will not run out of fuel oil to sell to Teller residents. The corporation has been running out of fuel oil about March of each year for several years before the road to Nome opens for fuel trucks to deliver. In late September, City Clerk Carolyn Oquilluk called to report the Teller City Council met and passed the FY11 budget. The city council also passed the FY11 Payment-In-Lieu-of Taxes (PILT) resolution and filled out the FY11 Community Revenue Sharing (CRS) application. The city council will pass the FY09 Certified Financial Statement resolution in the near future when some of the numbers in the form are clarified. The city is eligible to receive $109,090 CRS funds and $30,754 PILT funds. The City of Teller uses funds from the state's Community Revenue Sharing program and Payment-In-Lieu-of Taxes (PILT) program to subsidize the trash and honey-bucket haul services. At the request of the city clerk, RUBA staff traveled in September to Teller to work with her to complete the resolutions, budget and application. Nome RUBA staff was invited by Village Safe Water engineer Emily Kloc, and CE2 engineer Lloyd Persson, to travel to Teller to discuss the on-going water and sewer project with the city council and the community members. RUBA staff discussed current issues affecting the city and community. The city will be holding a municipal election on October 5, and has three vacant city council seats open; the city completed its FY11 budget late, but is holding off on passing the completed FY09 Certified Financial Statement until a couple of issues are resolved; the Teller Native Corporation is still expected to run out of fuel oil for sale early March 2011 due to not having enough fuel storage capacity with its tank farm. Nome RUBA staff is working with the community seeking funds to purchase at least 25,000 gallon capacity tank. RUBA staff also showed the clerk how to generate a comprehensive monthly financial statement in Excel spreadsheet format for financial reports to the city council and public. - 147- July — August — September — October — November — December 2010 rit 2nd Quarter SFY11 - RUBA Report eee Ee PO Capacity Indicators Finances Essential Indicators Yes No & (O Allrevenue and expenses for the utility are listed in the utility budget. KX O The utility has adopted a balanced realistic budget. C) & Monthly financial reports are prepared and submitted to the policy making body. & OF The utility is current in paying all water/wastewater electric bills. 4] The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. & OF 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. YTD revenues are at a level equal to or above those budgeted. oO YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. & C1 Budget amendments are completed and adopted as necessary. OR Finances Comments: The city completed and passed the FY11 budget mid-September, with assistance of RUBA staff and former city bookkeepers from the community. There were several factors in the delay of passing the budget, which includes trash and honey-bucket haul services. The city clerk took a leave of absence for a month and the city council could not find anyone to complete the budget. The city also used the monthly financial format in Excel spreadsheet recommended and provided by Nome RUBA staff. Another winter is approaching in which the city, and the whole community, might run out of fuel oil if heavy snowfall occurs. Late last winter, the Alaska Department of Transpiration and Public Facilities was able to plow the snow off of the Nome-Teller Road early and fuel oil was delivered using fuel tank vehicles. The city purchases fuel oil from Teller Native Corporation's fuel sales. The city uses part of the DCCED's Community Revenue Sharing Program funds to pay most of the expenses incurred for the operation of the trash and honey-bucket haul services. Accounting Systems Essential Indicators Yes No O W& The utility has adopted a collection policy and actively follows it. O & The utility bills customers on a regular basis. O W Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. ® 1 Anaccounts payable system is in place. X (1) The payroll system correctly calculates payroll and keeps records X C] 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 & 1 A chart of accounts is used that identifies categories in a reasonable, usable manner. x (1 Monthly bank reconciliation’s have been completed for all utility accounts. Hi The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 148 - July — August — September — October — November — December 2010 1“ 2" Quarter SFY11 - RUBA Report ————— ———————————————— _ __L—— OE DO Accounting Comments: The city still does not bill customers for trash and honey-bucket haul services. RUBA staff continues to recommend that the city clerk bill the customers so that the services can pay for themselves. The city is supposed to charge the residential customer at least $35 a month. Tax Problems Essential Indicators Yes No & C1] The utility has a system to accurately calculate, track, and report payroll tax liabilities. x [] The utility is current on filing tax reports. O XX The utility is current on making tax deposits. O If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city is current with its tax reports. They are listed on the Lien Watch report for reporting issues in 1998, 1999 and 2001. Personnel System Essential Indicators Yes No Ol &l The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators KX . CO Theutility 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. ; 0 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. Ri The utility provides training opportunities to staff as needed and available. ® ®e ww Personnel System Comments: Nome RUBA staff continues to encourage the city council to purchase workers’ compensation coverage as required by state law. The city clerk has passed her probationary period. - 149 - July — August — September — October — November — December 2010 1°‘* 2" Quarter SFY11 - RUBA Report 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. C1 The policy making body is active in policy making of the utility. KX] The policy making body enforces utility policy. C1 The utility has an adequately trained manager. [] The utility has an adequately trained bookkeeper. (1 The utility has an adequately trained operator(s). [1 The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Cl) & The utility has adopted an organizational chart that reflects the current structure. & OC The policy making body meets as required. & OC The utility complies with the open meeting act for all meetings. HXXWORW Organizational Management Comments: There are two vacancies for city council seats this coming election to be held first Tuesday of October. One of the seats is a write-in. The city clerk was given basic municipal election training by RUBA staff. The timelines are being followed by the city clerk and no major elections issues are expected this year. The city council acts as the utility board and has been very active dealing with utility issues. The mayor resigned due to health issues this summer and the vice-mayor is now the acting mayor until the municipal election. Operation of Utility Essential Indicators Yes No Xi [] 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 & (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. DX 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. RXXXAK WO OOOOOO Operation of Utility Comments: The city operates a washeteria that is attached to the water plant maintained and operated by the local school. The washeteria employs two part-time washeteria attendants. - 150 - July — August — September — October — November - December 2010 I°'* 2" Quarter SFY11 - RUBA Report EE cece ee ee ee pe RUBA Activities For The Coming Quarter RUBA staff will work with the city on the following issues: Y Have the city purchase workers' compensation coverage as required by State law. v Have the city clerk trained with QuickBooks Pro in the upcoming RUBA sponsored QBP training in Nome. The city can then exclusively use QBP for all its financial record keeping system. Y¥ Start billing trash/honey-bucket service customers on a regular monthly basis, preferably using QBP. Y Work with Teller's local entities to seek funding to purchase at least a 25,000 gallon capacity fuel tank for the local fuel vendor. The city purchases fuel oil and gasoline from the fuel vendor to operate the utility services. July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report ————— —— ——— —— ——— —— ——OEOOEOOOQOE ee ee Togiak Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2009 Population: 820 Region: Dillingham Local Governments: 2" Class City, od Water is derived from a well, is treated and stored ina “A 4 500,000-gal. tank. Approximately 125 households are Fe AP connected to the piped water and sewer system installed in 1976; the remaining homes have new individual wells and septic tanks. Roughly 61 units with private wells and septic systems are in the Togiak heights subdivision north of the main village. In all, approximately 200 homes are plumbed and 14 lack plumbing. The water system is 30 to 35 years old however, trained public works staff continue to effectively maintain and renovate the system. RUBA Activity This Quarter Dillingham RUBA staff traveled to Togiak in October to provide assistance with certification of the regular election. This was the first election held by the city clerk and it contained a few irregularities. RUBA staff and the city clerk researched the city code and Alaska statutes and presented the citations to the city council who then certified the election. During the onsite visit, assistance was also provided with completing the Certified Financial Statement as well as providing assistance with developing a records management system. Both utility and city records from the 1970's were set for disposal and training was provided about the length of time certain records must be kept. The QuickBooks contractor was contacted by RUBA and the utility staff regarding questions about maintaining the cash drawer accounts. City staff attended the Financial Management for Utilities in Dillingham and successfully completed the course. There has been a staffing change this quarter. The city administrator quit her position and the job is being done by the Public Works Director who has served as the acting administrator in the past. - 153 - July — August — September — October — November — December 2010 qtt4on Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & CO Allrevenue and expenses for the utility are listed in the utility budget. & OC The utility has adopted a balanced realistic budget. x] [] Monthly financial reports are prepared and submitted to the policy making body. & OF The utility is current in paying all water/wastewater electric bills. & OF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. x [] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. pe Sustainable Indicators Ol W The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. C1 & yD revenues are at a level equal to or above those budgeted. (C1 & YTDexpenditures are at a level equal to or below those budgeted. & (O A monthly manager’s report is prepared. & C1 Budget amendments are completed and adopted as necessary. Finances.Comments: The FY11 budget has been adopted. The budget is balanced and realistic. The city administrator provides a verbal operational report to the city council. A monthly financial report is submitted to the council for approval. Expenditures are exceeding revenues for the period September, October and November 2010. This is due to purchasing of parts and freight. Also associated to this is revenues from repair services to private households has been down due to the warmer weather. In addition to customer utility fees, revenue for payment of water/wastewater repair services to private households not connected to the public water/wastewater system is used to subsidize the utility. The city has purchased and had delivered sufficient diesel and heating fuel for the winter. City gasoline supplies are also sufficient. 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 HRXe HR Oo 1 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 & O A chart of accounts is used that identifies categories in a reasonable, usable manner. & =O Monthly bank reconciliation’s have been completed for all utility accounts. & OC The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 154- July — August — September — October — November — December 2010 1*'* 2" Quarter SFY11 - RUBA Report a —— — —————————————————OSOOOOOOO Kepe. Accounting Comments: The city council serves as the utility's governing body and enforces the utility ordinance. Staff uses QuickBooks for bookkeeping including customer billing, accounts payable, and payroll processing. The city clerk supplements QuickBooks financial reports with spreadsheet-based financial reports that present monthly and year-to-date activity and balances for all city departments. The utility bills water/wastewater customers regularly and consistently and issues disconnection notices to non-paying customers. The utility also bills for repair and maintenance services rendered to residents with private water and wastewater located in the heights subdivision. City staff utilize QuickBooks for tracking accounts payable and accounts receivable. City staff reconciles bank accounts on a monthly basis. The city clerk and utility clerk maintain cash receipt and disbursement records and continue to share and improve coordination of QuickBooks data entry. Tax Problems Essential Indicators Yes No & C0 The utility has a system to accurately calculate, track, and report payroll tax liabilities. X oO The utility is current on filing tax reports. Xi LJ The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Utility staff use QuickBooks for payroll and payroll tax processing. The IRS Taxpayer Advocate Service reports that the city is presently in compliance with federal tax obligations. The city is not found on the Tax Lien Watch list. The Alaska Department of Labor (DOL) confirmed that the city is meeting Alaska ESC tax obligations. Personnel System Essential Indicators Yes No ® [] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Kl (1 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. 1 The utility has an adequate written hiring process. J 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. Kl (C1 The utility provides training opportunities to staff as needed and available. Re ww Personnel System Comments: The city's workers compensation policy is purchased through AMLJIA. The Division of Worker's Compensation website shows that the policy was active on December 23, 2010. RUBA staff has a copy of the Employer Notice of Insurance form that expires on July 1, 2011. Utility staff abide by a well- written personnel policy and maintain comprehensive personnel files. The policy includes a written - 155 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report evaluation and hiring process. Employee files are well maintained and contain I-9 forms and related documentation. New hires are placed on a probationary period and staff development and training opportunities are made available to all staff. Organizational Management Essential Indicators Yes 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. (1 The utility has an adequately trained bookkeeper. (1 The utility has an adequately trained operator(s). [] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators [] W& The utility has adopted an organizational chart that reflects the current structure. & (1 The policy making body meets as required. Kl OC The utility complies with the open meeting act for all meetings. WHXRRee Organizational Management Comments: The utility enforces a utility policy as outlined in city ordinance. The public works director oversees several programs and projects and serves as the utility manager. The city has a financial audit conducted annually. The primary bookkeeper also serves as the city clerk and is gaining experience and training to be effective in both positions. The utility employs a utility clerk to manage customer billing, vendor relations, and to provide sanitation project management support. The utility employs trained and certified water operators. RUBA continues to recommend an update to the water/wastewater ordinance and provided a sample ordinance published by the Regulatory Commission of Alaska (RCA). The city council meets as required and maintains an organization chart. Operation of Utility Essential Indicators Yes No &! CO The utility operator(s) are actively working towards necessary certification. KO The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. WORE RR OWOOOO oO Operation of Utility Comments: Utility operators possess necessary certification and participate regularly in operator training. The utility has a preventative maintenance plan and operators perform routine maintenance. The public - 156- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report See eee ee works director works closely with Alaska Native Tribal Health Consortium engineers to obtain water/wastewater project funding. The utility has not suffered any major problems or outages due to management issues. The utility is not found on the Significant Non-Complier (SNC) list. The utility provided a copy of the Consumer Confidence Report for 2009 and it has been mailed to all customers. The public works director reports monthly at city council meetings, holds regular staff meetings and covers the topics of safety and day to day operational matters. The utility maintains a critical spare parts list, and ensures parts remain available on the shelf for use when needed. RUBA Activities For The Coming Quarter RUBA will maintain contact with the city and continue providing assistance upon request. - 157 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report ee ABE REPO! Tununak IRA Council Activity Report Community Overview Lead RUBA Staff: Fred Broerman, Bethel Regional Office 2009 Population: 330 Region: Yukon-Kuskokwim Delta Local Governments: Tribal Council od The Native Village of Tununak (TNK) water and sewer “ ea department provides flush/haul water and sewer services Fee AP to twenty-five residences and five commercial customers. Those living in the remaining 60 residences haul their drinking water and sewage by hand. TNK also operates and manages the community's landfill. The source of all potable water for the community is the BIA well. Water from this well is treated by the Lower Kuskokwim School District's plant and a public watering point is provided near the teacher housing building. The school district's sewage discharges to the village drain field. Water use from the BIA was intended only for the school and teacher housing. However, since the community's water treatment plant has not provided drinkable water for over ten years, water from the BIA well provides all the community's potable water. Water drawn from Unnamed Creek and treated by TNK's water treatment plant is piped to nine watering points distributed throughout the community. However, this water is used only for the toilets at the Tununak Health Clinic and doing laundry. A flush/haul system began construction in 1992. The community has two sewage bunkers in the village that are still in use by 41 residential homes for disposing of honey buckets. The bunkers are made of ditches and do not have liners. Electricity is provided by Alaska Village Electric Cooperative (AVEC). RUBA Activity This Quarter July 27-29, 2010 Bethel RUBA staff traveled to Tununak to conduct a RUBA management assessment for the community's IRA council. The village's only current potable water source is the Bureau of Indian Affairs (BIA) well. The treatment plant for the well is operated by the Lower Kukokwim School District primarily to supply water to the Paul T. Albert Memorial School and teacher housing. The water treatment plant previously provided potable water for the community residents and businesses, but due to several Significant Non-Complier (SNC) list issues, the water is no longer deemed potable. Water drawn from Unnamed Creek and treated at the plant is piped to nine watering points distributed throughout the community. The water is used only for toilets at the Tununak Health Clinic and for doing laundry. Currently TNK does provide drinking water and sewer haul services to customers on an as needed basis. Tribal employees use four-wheelers to transport drinking water via portable tanks from the BIA well to fill tanks at residents houses and businesses. Sewage is transported to underground tanks in similar manner. Preliminary review of the IRA's RUBA status indicates that because the tribe subsidizes their water and sewer department from outside sources, TNK will be required to develop a budget that lists all the tribe's revenues and expenses for FY11. The community is eligible for construction funds for a flush tank and haul system. Bethel RUBA staff will renew efforts to monitor the utility service and offer assistance. July — August — September — October — November — December 2010 I°'* 2" Quarter SFY11 - RUBA Report eel Capacity Indicators Finances Essential Indicators Yes No [] & Allrevenue and expenses for the utility are listed in the utility budget. OO) WB The utility has adopted a balanced realistic budget. (1 W Monthly financial reports are prepared and submitted to the policy making body. & OC The utility is current in paying all water/wastewater electric bills. & CF The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. [1] & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. eee Sustainable Indicators KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. [] W yYTDrevenues are at a level equal to or above those budgeted. CO) & yYTDexpenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. CO W& Budget amendments are completed and adopted as necessary. Finances Comments: According to the IRA's Financial Management System Policies and Procedures, TNK's financial statements are audited annually by a Certified Public Accountant. TNK has hired Far North Accounting and accountant consultant Brad Cage to assist with the tribe's finances. TNK depends on gaming revenues to subsidize their water and sewer haul operations. Therefore all the tribe's finances need to be considered in this assessment. TNK did not provide a budget listing all the IRA's revenue and expenses for the FY 10 budget or evidence that such budgets had been adopted by the tribal council. Bethel RUBA staff provided the tribe's administrative staff with an Excel spreadsheet containing a budget format and a budget resolution template so they have the tools needed to work toward meeting the budget essential indicators. Minutes of Tununak IRA Council's January 12, February 18, March 18, and May 6, 2010 meetings were provided. Each of the minute write-ups included one or two comments on the status of the water and sewer department. However, they contained no mention of the council reviewing monthly financial reports nor were financial reports provided to Bethel RUBA staff. The tribe's administrative assistant was briefed on the importance of providing the council with monthly financial reports at their meetings and this being documented in their minutes. Formats for monthly financial reports were provided by RUBA staff. During a July 29, 2010 phone conversation with Alaska Village Electric Cooperative (AVEC), Bethel RUBA staff verified that TNK was current in paying all six of their electric accounts. According to TNK's administrative assistant the IRA purchases approximately 5,000 gallons of stove oil a year from Tununrmiut Rinit Corporation (TRC). Approximately 3,000 to 4,000 gallons is used for the Public Health Service (PHS) facility which houses the community's washeteria and water treatment plant. A July 29, 2010 phone conversation with TRC's general manager indicated that they had received a shipment of fuel in July. TRC expected to receive another shipment in the fall of 2010 to top off their tanks, which he indicated should be enough to supply the community's needs for winter. TNK relies on Community Revenue Sharing funds for annual fuel purchases from TRC. Because TNK did not provide RUBA staff with an adopted budget or monthly financial reports all the Utility Finance sustainable indicators were marked ‘No’ regarding their compliance. - 160 - July — August — September — October — November — December 2010 1°'© 2" Quarter SFY11 - RUBA Report eee EAPO Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators 1 Achart of accounts is used that identifies categories in a reasonable, usable manner. 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. Hee wWwoO OOO OO X a OR Accounting Comments: TNK did not provide RUBA staff with a written collections policy stating the action the tribe would take if past due amounts are not received. The tribe's administrative assistant provided copies of their monthly statement bill and water and sewer overdue bill forms. An Excel spreadsheet titled 'master water sewer.xls' was also provided. The spreadsheet tracks customer balances, along with payment dates and receipt numbers as well as billing numbers and dates as far back as March 2006. Copies of two cash receipts for water and sewer bill payments in June of 2010 were provided. The tribe uses QuickBooks for payroll record keeping and tracking most of its expenditures and revenues. A chart of accounts was provided using the software. Water (120 gallons) and sewer haul rates are $25 for residential and $50 commercial customers. Reconciliations for the TNK's First National Bank Alaska ‘Water and Sewer' checking account for March and April of 2010 and their Wells Fargo Business Cash Management Account Public Fund’ checking account for March and April of 2010 were provided. These were reconciled with QuickBooks. TNK's administrative assistant provided a copy of Tununak IRA Council Check Request Form. This form is similar to a purchase order and requires approval by the tribal manager prior to purchases being made through the tribe's checking accounts. However, without an adopted budget and monthly financial reports detailing budget projections, to date spending, and remaining balances for their departments, it is hard to know how the tribal administrator determines if adequate funds are budgeted and available for purchases. Tax Problems Essential Indicators Yes No & OF The utility has a system to accurately calculate, track, and report payroll tax liabilities. x [] The utility is current on filing tax reports. KX CO The utility is current on making tax deposits. Kl (C1 If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: TNK uses QuickBooks software and is currently working with Far North Accounting and CPA Brad Cage to complete their annual audits. On August 16, 2010 Bethel RUBA staff contacted the Fairbanks office of Alaska Department of Labor and Workforce Development. They indicated that TNK was current in paying employment security taxes and had filed all required reports through the second - 161 - July — August — September — October — November — December 2010 1°‘ 2"4 Quarter SFY11 - RUBA Report eee quarter of 2010. However, their taxable wages were not calculated correctly for the fourth quarter of 2009 and needed further research. On August 8, 2010 Bethel RUBA office received correspondence from IRS indicating TNK was in compliance for federal taxes from January 2008 through July 2010. The most recent Lien Watch (May-June 2010) lists no liens for earlier periods. Personnel System Essential Indicators Yes No Ri C1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & CO The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. 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. 4) The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & OC The utility provides training opportunities to staff as needed and available. O } Ke Ww Personnel System Comments: An October 14, 2010 phone conversation with Liberty Northwest, the tribe's workers compensation carrier, indicated that TNK has coverage through September 1, 2011. TNK's policies manual, on file at the Bethe! RUBA office, contains sections for recruiting and staffing; orientation and training and probationary employment period (90 days) that specify job training/oversight and evaluations. Only three position descriptions were provided (administrator, custodian and finance director), however the tribe's un-adopted organization chart shows nine employees. TNK provided blank personnel/payroll action and employee evaluation forms. However, two of TNK's employees indicated that their supervisor had not given them an annual written evaluation or a private discussion regarding their performance. TNK's policies manual does not outline the development of a job notice or the posting/advertising, application evaluation, selection of committee members and evaluation process; all of which should be included in a written hiring process. TNK's administrative assistant indicated that employee personnel folders do not contain federal I-9 forms or letters of acceptance. The water utility operator attended a small water systems training in Bethel in April of 2010. The tribal administrator will be attending a sustained compliance workshop in September of 2010. - 162 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report — OE ETS RUBA Repo. 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 OO) ®& The utility has adopted an organizational chart that reflects the current structure. & OF The policy making body meets as required. & (OF The utility complies with the open meeting act for all meetings. OWWWOOR HOOOkRwoO Organizational Management Comments: TNK does not have an adopted water and sewer ordinance; a draft ordinance is on file at the Bethel RUBA office. TNK does have a Memorandum of Agreement (MOA) with Tununak Traditional Council to 'Transfer the Administration of all Tununak Sanitation Services and to Lease all Sanitation-Related Property’. The MOA, also on file, was initiated on December 7, 2007 and ends in twenty years, with two additional five year extensions available. The community's water and sewer utility was originally owned by the City of Tununak. After the city was dissolved, the utility was turned over to Tununak Traditional Council which now leases it to TNK. TNK is in the process of attaining full ownership of the washeteria, water plant and sewer facilities. TNK's water and sewer ordinance has not been adopted; so they do not have an ‘official’ written collections policy. Customers are billed monthly. However, the tribal administrator said that customers are given a year's grace period to pay past due accounts. A blank billing statement and overdue bill notice were provided. TNK has an undated policies manual that specifies hiring practices. Minutes from past council meetings did not provide necessary detail to document that the policy making body is active in policy making for the utility. The tribal administrator has been working for the tribe in his position for over nine years. TNK also employs an administrative assistant and a bookkeeper that work with the payroll system, customer billings, accounts receivable and accounts payable. The accountant has worked in his position for nine years and the bookkeeper for ten. The administrative assistant was trained in accounting in a job corps program. The tribe has hired a financial consultant and an auditor who have been working closely with the IRA's administrative staff. TNK's water plant operator holds a Small Water System Treatment Certificate and TNK's water plant facility currently has the same classification. As stated earlier TNK has not adopted a water and sewer ordinance, however a draft ordinance is on file as well as a copy of TNK's MOA with Tununak Traditional Council. Bethel RUBA staff was not provided with an adopted organization chart for TNK. TNK is a tribal entity and not required to comply with the Alaska 'Open Meetings Act’. Meeting minutes were provided for January, February, March and May of 2010, but the tribal administrator indicated that council meetings are suspended during the summer months due to subsistence activities. - 163 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Operation of Utility Essential Indicators Yes No & C1 The utility operator(s) are actively working towards necessary certification. O WW The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators QR 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. TT] 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 Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Oo O 100 XXkXee we & Operation of Utility Comments: TNK's operator has certification equivalent to the classification of service the IRA's treatment plant is operating, but their part-time operators are not certified. A preventative maintenance plan for the sanitation facilities was not available at the time of this writing. Minutes from four council meetings that were provided contained brief reports on the current status of the water and sewer facilities. No documentation was provided that the water and sewer utility held safety meetings. A safety manual for the utility was not provided. A Consumer Confidence Report (CCR) was not provided at the time of this writing. TNK's water treatment plant has been on the Significant Non-Complier (SNC) list for several years. The plant is not providing the community with potable water; nor is it operating at the service level originally proposed. Surface water violations will not be cleared up without significant upgrades to the water plant infrastructure or new construction. Coliform violations are due to intermittent water sampling due to freeze-ups from January to June 2010. An inventory control list was not provided at the time of this writing. A critical parts list was developed for TNK's water treatment plant by Yukon Kuskokwim Health Corporation's (YKHC) remote maintenance worker and field environmental health officer on August 17, 2010. RUBA Activities For The Coming Quarter RUBA staff will assist the Tununak IRA at their request. - 164 - July — August — September — October — November -— December 2010 1I°'“ 2" Quarter SFY11 - RUBA Report ———— OOS Eee ee White Mountain Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2009 Population: 202 Region: Bering Straits Local Governments: 2" Class City od Water is derived from a well near the Fish River and is Nasa oe nm 7 treated. All households and facilities are connected to the piped water and sewer system. The new school was completed in August 2009 and is connected to the city's water and sewer system. The city has also requested funding to relocate the landfill. The current site is not permitted. The city is waiting on the Village Corporation to transfer the 1280 acres that will become the city's land site. Until this transfer is completed, the location of new landfill site cannot be determined. RUBA Activity This Quarter At the recommendation of Nome RUBA staff, White Mountain Utilities initiated the small claims procedures for water and sewer past due accounts, starting with past due dates that are near the seven- year statute of limitations. The utility clerk sent in the small claims paperwork to the State of Alaska Magistrate's office in Nome to process. Once the city gets judgment in its favor, the city will pursue to claim part of the past due account holders Permanent Fund Dividends each year until all are paid off. The City of White Mountain signed a RUBA assistance agreement in June 2010. Shortly after there was a vacancy and recruitment process for RUBA staff, therefore the quarterly onsite assistance was not provided. A new RUBA staff member started employment in December and will schedule a visit to White Mountain in January 2011 to resume onsite management assistance. - 165 - July — August — September - October — November - December 2010 1°'* 2" Quarter SFY11 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & XkXRwR OO000 All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources) sufficient to cover operating EXPENSE: S. ane ee Sustainable Indicators XH Oo OO B® O & RX QO The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The city passed its FY 11 budget, which includes the water and sewer utility department, before the end of the fiscal year. RUBA staff made some recommendations to pursue past due accounts, especially the ones that are close to the seven-year statute of limitations. The utility clerk will submit to small claims court all or most of the other past dues for collections in the near future. The city purchased fuel oil using funds from Norton Sound Economic Development Corporation's Community Benefits Share Program. The heating oil supply ordered is adequate for the winter, although the barge that was going up the Fish River to deliver the city's fuel got stuck for a couple of days just a couple of hundred yards downriver from the city. The barge managed to get itself unstuck and was able to deliver the fuel for the city. Accounting Systems Essential Indicators Yes No ® Qa & O O O XeRX & 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. LJ] The Utility has a cash disbursement system that records how money was spent. Sustaina' RX O x) ® O ble 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. - 166 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report a — ee OOOO ee ee Accounting System Comments: The utility clerk is proficient in the use of QuickBooks Pro. She regularly bills the water and sewer customers. Some of the past due water and sewer accounts have been submitted to small claims court. The utility clerk makes fairly comprehensive monthly financial reports using QuickBooks Pro and Excel Spreadsheet. Payroll and payroll records are calculated and tracked using QuickBooks Pro. Tax Problems Essential Indicators Yes No & C1 The utility has a system to accurately calculate, track, and report payroll tax liabilities. & ( The utility is current on filing tax reports. & OF The utility is current on making tax deposits. Kl CO 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 all tax reports and tax deposits. All tax reports and electronic deposits are completed using QuickBooks Pro. The use of QuickBooks Pro makes the reporting much quicker and easier to do and both the city and utility department take advantage of this to the city's advantage. Personnel System Essential Indicators Yes No & OO The utility has a posted workers compensation insurance policy in effect. . Sustainable Indicators XX. C1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, x AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & CF The utility provides training opportunities to staff as needed and available. ® OW OO O WO Ww Personnel System Comments: The utility is current with its coverage of general liability insurance and workers compensation with the Alaska Municipal League Joint Insurance Association (AMLJIA). The utility does not have written job descriptions for all current positions. The utility still uses a generic evaluation form for all it's employees, one not really tied to the job description. - 167 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Organizational Management Essential Indicators Yes No [] The entity that owns the utility is known and the entity that will operate the utility is set. 1 The policy making body is active in policy making of the utility. 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 & 1 The utility has adopted an organizational chart that reflects the current structure. & (C1 The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. XXX Organizational Management Comments: The city council does try to enforce the utility policies as much as it can. It took a while for the utility to implement, but it has now taken some of the past due accounts to small claims court. The utility is putting itself in an excellent position to collect some or most of the past due accounts, although some of them may not ever be collected because of deaths, moves and/or other factors. The city council acts as the utility board. This coming municipal election, on Ist Tuesday of October, there will be three city council vacancies on ballot. Operation of Utility Essential Indicators Yes No XI (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 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. ® (1 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. x [] The utility is operating at the level of service that was proposed. X (1 The operator provides status reports to the manager on a routine basis. kX The utility has completed and distributed its Consumer Confidence Report (CCR). Xl The utility is not on the Significant Non-Compliance (SNC) list. O The utility maintains an inventory control list. O KX] The utility maintains a critical spare parts list. Operation of Utility Comments: The utility continues to hold safety meetings with and for its employees. The RUBA staff continues to recommend to the utility clerk and mayor that utility employees should attend AML/JIA sponsored safety meetings by teleconference. The manager does not receive a monthly operations and maintenance report. The utility does not maintain an inventory control list or a critical spare parts list. - 168 - July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report OE OEE AUDA REPO RUBA Activities For The Coming Quarter Nome RUBA staff will work with the utility to update its water and sewer utility ordinance and its job descriptions for all its employees in the next quarter. - 169 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report eee Non-RUBA Communities Aleknagik Barbara Higgins, LGS/RUBA, Dillingham Regional Office RUBA staff traveled to Aleknagik in July to assist the office staff with developing the annual budget. A hand written budget had been submitted to Juneau with a request to release the community revenue sharing funds. The totals for revenues and expenditures did not add up and the document included corrections hand written. The city is in transition with no administrator or clerk. RUBA staff and the acting clerk completed a correct budget for the city council to review and adopt. Additional RUBA " assistance has included elections training, council vacancy research, bank reconciliations, fuel purchases, and financial accounting procedures. Information was provided regarding the QuickBooks Help Line. The city conducted and certified the municipal elections, elected officers and a mayor this quarter. A new city clerk has taken office. Staffing continues to be an issue for the city office in regards to an administrator. A petition regarding local option was received from local lodge owners. RUBA staff provided assistance with the process. However local option law has been found to not cover the type of license being requested by the lodge. So for now the petition has been put on hold until the Alcohol Beverage Control Board can make a determination regarding the option and the need for an election. Anchor Point Ronalda Olivera, LGS/RUBA, Anchorage Office Anchor Point continues to comply with RUBA essential indicators, including federal tax requirements. Anchor Point Energy LLC will be completing a natural gas line to transport gas north to Ninilchik in 2010. Anchor Point has an active water utility that could run the project for the community. Having natural gas in the community will be an economic incentive for other business and households to locate there. The community anticipates that the cost for natural gas would be significantly less than other forms of energy; therefore, fewer families would rely on energy-heating assistance, a win-win situation for all involved. RUBA staff will continue to follow-up with the community on this project. RUBA staff continues to work with the community via email and telephone calls as needed. Staff has requested and received regular updated documentation for the RUBA report. Anderson Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Anderson on October 7, 2010. Currently, the City of Anderson limits sales tax to utility service only. RUBA staff assisted the city in reviewing the sales tax code and proposing amendments and ballot language to raise the sales tax from 6% to 8%. The tax is also proposed for additional items other than utilities. While on-site, RUBA staff also assisted the bookkeeper with questions concerning the financial statements and monthly reports. The sales tax issue was included in the November election and failed to pass. -171- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Beaver Brendan Smyth, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Beaver in September to assist with QuickBooks and other financial questions the First Chief had. RUBA staff assisted with QuickBooks and Excel programs and discussed the customer ledger with the First Chief of Beaver. RUBA staff also discussed the management the utility facilities. RUBA staff offered to conduct a RUBA management assessment, however as they are not required to have one at this time, the offer was declined. RUBA staff will remain in contact with the community to assist as needed and for a possible RUBA management assessment in the future. Fairbanks RUBA staff was contacted by the Department of Environmental Conservation (DEC) representative for Beaver concerning some applications for waivers the utility needs to operate. RUBA staff will contact the community to help complete the forms and submit them to DEC. Chignik Lake Barbara Higgins, LGS/RUBA, Dillingham Regional Office RUBA staff visited the community in December and continued efforts to assist Chignik Lake with returning to compliance with the Power Cost Equalization (PCE) program as well beginning the process for conducting a deregulation election to deregulate the utility with the Regulatory Commission of Alaska. With LGS staff efforts, the community will regain active PCE status and $176,400 subsidy payments; this is representative of what has been lost due to lack of reporting. Annually the utility has the potential to receive $88,200 through the PCE program. The Alaska Native Tribal Health Consortium water/wastewater project is pending until the utility meets all RUBA essential indicators. The village council has settled a majority of the tax liens with only two smaller amounts remaining. They also received release of tax of liens from the Alaska Department of Labor Employment Security. The Authorization to Request Federal Tax Information was received regarding the Chignik Lake Village Council and for the time period of December 2007 to December 2010. Staff from the village council attended and successfully completed the Financial Management for Utilities training held in Dillingham during this quarter. In September the Alaska Rural Utility Collaborative (ARUC) contacted Dillingham RUBA staff regarding Chignik Lake. ARUC staff was concerned with the efforts to assist the Chignik Lake Electric Utility as well as tax issues dating from before ARUC utility management began. Discussed was the inability of the electric utility to create reports necessary to receive Power Cost Equalization (PCE) payments. Customer balances were discussed as well as the power stat meters currently being used, which are outdated and in disrepair with no available parts. The Chignik Lake village council administrator reported last week that the Bristol Bay Native Association recently worked with the administrator on budgets and reporting so the village council could receive two years of compact money that has been withheld due to lack of an adopted operating budget. ARUC discussed their work in the community this summer, which is nearly complete, that established curb stops at all the residences. This will allow the remote maintenance worker to shut off water service for nonpayment. ARUC management is concerned with the current 10% collection rate for community water/sewer services and requested an update by RUBA staff regarding efforts to assist the community. -172- July — August — September — October — November — December 2010 1°'“ 2" Quarter SFY11 - RUBA Report Oe ETL ~ RUBA Repo Deering Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA traveled to Deering on August 11-13 and September 29-October 1, 2010. While onsite, RUBA staff provided the city clerk with assistance in preparing for the regular election, completing documents to qualify for the Community Revenue Sharing, setting up monthly finance report, formatting QuickBooks files, and amending federal tax reports. The clerk training in August quit and a return visit was made in September to retrain the newest clerk on elections, financial reports and payroll. RUBA staff also met with the utility manager regarding the Bulk Fuel Bridge Loan application. An application for fuel loan to Alaska Energy Authority had been denied as the utility had not submitted Regulatory Commission of Alaska (RCA) reports for two years. Power Cost Equalization (PCE) subsidies have not been received for lack of these reports, however the utility is still required to provide customers with the PCE credit. RUBA will assist the community in completing the reports to allow them reinstatement on the PCE program. Kotzebue RUBA staff has also provided assistance to the community on several deficient RUBA essential indicators. The constant turnover in staff has made progress in meeting RUBA indicators a challenge. Fort Yukon Jeff Congdon, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff contacted the city clerk in October regarding management of the utility. Previously Alaska Rural Utility Collaborative (ARUC) managed the utility, however the community ended the contract on October 1, 2010. Fort Yukon will once again handle all aspects of their utilities. The City of Fort Yukon currently does not have certified utility workers employed and the water system is marginal. In October the water was over chlorinated on one occasion and discolored on another occasion. The fire hydrants froze on October 13. City staff and contractors were able to thaw the hydrants. The city manager is working on rectifying these and other sanitation problems. The city struggles with compliance issues, but is currently maintaining and operating the old water treatment system competently while waiting for the new water treatment plant to come online. RUBA staff attended a week long Introduction to Small Water Systems class in Fort Yukon this November and toured the existing facilities and the facilities under construction as part of the course. Fort Yukon staff provided RUBA personnel with the requested financial documentation for this quarter. Hoonah Glen Hamburg, LGS/RUBA, Juneau Regional Office Juneau RUBA staff traveled to Hoonah on August 17-18 to provide training for the new city clerk. Topics covered include Alaska’s Open Meetings Act, parliamentary procedure, and the Hoonah C ity Code with attention to the Utility chapter and billing and collection procedures. Hoonah's municipal elections process was also reviewed with particular attention paid to absentee voting procedures, ballot formatting, and records retention. RUBA staff will continue to assist the city clerk to meet elections deadlines and to develop a consistent records retention process. RUBA staff also traveled to Hoonah from December 5 to 7, 2010 to conduct a two-day newly-elected officials training for the Hoonah City Council, with members of the harbor board and city staff also in attendance. The training covered the roles and responsibilities of members of the city council and provided strategies for how council members could serve purposefully, appropriately, and successfully. Other topics covered by the training include Title 29, the Hoonah Municipal Code, municipal acts, budgeting, parliamentary procedure, conflict of interest, and Alaska's Open Meetings Act. The city council serves as the utility board. Throughout the quarter, RUBA staff helped the city to resolve elections and payroll tax issues. Additionally, RUBA staff began helping the city to develop an employee handbook to take the place of the city's current personnel policy (a RUBA management sustainable indicator) provided in the Hoonah Municipal Code. - 173 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Kaktovik Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office RUBA staff traveled to Kaktovik in July and again in November. The community requested assistance in how to draft and adopt ordinances and resolutions, duties of the clerk, how to prepare and conduct meetings, and how to conduct elections. Assistance was also provided on both essential and sustainable management indicators such as preparing financial reports, entering the budget into QuickBooks accounting, establishing a salary schedule, evaluations, job descriptions, and establishing travel procedures and policies. A review of the city code indicated some areas that need to be updated. RUBA staff is working with the city staff to update and codify the city code after ensuring that all city departments are identified, established, and included in the code. Kaltag Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff and the QuickBooks contractor traveled to Kaltag on October 11-14, 2010 for the first of three onsite visits to install QuickBooks and train local staff. The city provides water and wastewater services to the community and has been doing most accounting functions manually. The purpose of the three visits is to create an efficient accounting process using the computer. Some of the tasks completed during this first visit were to reconcile all bank accounts, reconcile the payroll liabilities, enroll the city into EFTPS (online payment of IRS taxes) and enter the FY11 budget in QuickBooks. Two more trips are planned to finish setting up QuickBooks for payroll, billing and collections and all other accounting functions. The contractor will also create a customized user manual for Kaltag. Fairbanks RUBA staff also conducted a two day class for newly elected officials in Fairbanks November 22 and 23. Two of the seven Kaltag council members attended this course. Klawock Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff traveled to the City of Klawock December 14-16, 2010 to provide Utility Clerk training. Training topics included State and Federal single audits, codifying ordinances and developing a records system for managing the storage, retrieval, and disposal of municipal and utility files. RUBA staff also secured the documents necessary for the community to receive their FY11 Payment in Lieu of Taxes (PILT) and Community Revenue Sharing payments. On December 15, 2010, the clerk attended a RUBA class on using MS Excel forms and spreadsheets to automate many of the clerk's administrative and reporting duties. RUBA staff will continue to provide assistance as needed and requested. Koyuk Iurie Leahu, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to Koyuk on November 17-19, 2010 at the request of the Koyuk city council. The purpose of the visit was to work with the city clerk to revise the city code with emphasis on the water and sewer departments and to include authority for the washeteria. While onsite, RUBA staff reviewed the ordinances with both the clerk and the city council. RUBA staff met with the city council to discuss the process of revising the code and drafted a work plan to meet the goals agreed upon. The utility clerk was appointed to the city clerk position. RUBA staff assisted with reviewing the utility clerk job description and getting the vacancy posted. A new RUBA staff member was hired in December and will begin providing assistance to Koyuk in January. An onsite visit will be scheduled to introduce RUBA staff to city staff and conduct a RUBA management assessment. -174- July — August — September — October — November — December 2010 1°“ 2" Quarter SFY11 - RUBA Report eee Oe? Koyukuk Brendan Smyth, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to the city of Koyukuk in July and conducted training for the new city administrator. The new administrator has not dealt with State of Alaska laws and requested training with Title 29 and other aspects of the state statutes. RUBA staff also informed the administrator of our program involvement in the rural communities and what our program offers in terms of assistance and training. RUBA staff was able to discuss the steps the community will need to work towards accessing the Community Revenue Sharing. Working on the budget showed how unreliable the current QuickBooks file is. The need for the administrator to work on rebuilding an accurate QuickBooks file that reflects the current financial situation of the community and the connection monthly finance reports have to the RUBA management assessment was discussed. RUBA staff remains in contact with the administrator and the community to receive updates on their budget and financial situation. Following that visit, RUBA staff has worked with the administrator concerning questions dealing with city employees being elected to the council. RUBA staff is working with the city council to arrange a date for presenting onsite council training. The city contacted the Fairbanks office concerning finance assistance and CDBG grant application questions that were answered. RUBA staff shared training opportunity information for a water training course. RUBA staff has also contacted the community to assist in budget creation so they can receive the Community Revenue Sharing funds. Metlakatla Lawrence Blood, LGS/RUBA, Juneau Regional Office On July 27-28, 2010, RUBA staff traveled to Metlakatla Indian Community to begin a utility rate analysis for the water, wastewater, and solid waste utilities. RUBA staff will use the RUBA water rate calculator guidebook as part of the analysis, however, the current operating structure of the sanitation services is creating some challenges. They are all billed as one utility. None of the utility customers are metered which makes it difficult to determine the percentage of water usage in the different customer classes. Overall utility expenses are significantly greater than revenues with a FY 10 deficit of more than $343,000. RUBA staff is in contact with the city treasurer to clarify items on the budget and compile the information needed for the requested rate analysis. RUBA staff will continue to work with the community to develop fair and adequate rates. Napaskiak : Eli Jacobson, LGS/RUBA, Bethel Regional Office Recently RUBA staff traveled to Napaskiak to participate in the 'No More Honey Buckets’ celebration. The engineering firm CoWater System was the prime sponsor of the ceremony. The City of Napaskiak, Napaskiak Traditional Council, Napaskiak School and the local Native Corporation all contributed to the festivities. Speaker Mark Baron delivered the welcome speech and related the history of the project for indoor plumbing. Bethel RUBA staff spoke to the cooperation experienced between the community and RUBA. The city has had multiple turnover in the administrative staff during the last few months which has made things difficult for the city's management. The city owns the electric utility. The utility is overseen by a three member advisory board. Both the city and the utility worked on two separate personnel policies. The policies were the same except for the staff members mentioned in the policies. RUBA recommended the two policies be combined into one. RUBA staff also explained the roles of advisory boards and that all city policies and other major decisions are acted upon and passed or rejected only by the city council. The FY11 adopted city budget needs to be submitted and financial reports from March 2010 to present should be completed. - 175 - July — August — September — October — November — December 2010 1°“ 2"4 Quarter SFY11 - RUBA Report Noorvik Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA traveled to Noovik in September to provide onsite assistance to the new administrator regarding financial reporting, tax reporting, and reviewing their sales tax ordinance to check for compliance. Research was also done to identify alternative revenue sources. It was discovered that Noorvik could have been charging Crowley Incorporated lighterage fees. RUBA staff assisted in writing a letter requiring they pay those fees. We also worked on their accounts receivable for garbage and landfill fees and a form to notify delinquent customers to work out a payment plan. RUBA staff worked with Noorvik staff to create a fuel inventory form to monitor how much they are using to allow charges to the correct departments. The accuracy of water rates is dependent upon certifying all expenses to provide the water. The Department of Environmental Conservation (DEC) Water Monitoring Summary for the year was reviewed to make sure they keep up with the required sampling and dates. Staff provided assistance via phone coordinating with the Department of Environmental Conservation (DEC) after reviewing the Significant Non-Compliance (SNC) list, the water report on sampling. They had a copper first draw action level exceedance. DEC reported that it was slightly above normal. Nunapitchuk Eli Jacobson, LGS/RUBA, Bethel Regional Office Bethel RUBA staff traveled to Nunapitchuk on December 9, 2010. The purpose of the trip was to attend a community meeting with Village Safe Water (VS W) personnel and discuss the water construction project. Continued funding of the project requires successfully meeting all essential indicators of the RUBA management assessment. The VSW engineer is concerned that the community has not received an assessment stating they have local capacity. While onsite, RUBA staff gathered a majority of the required documentation and will schedule a return trip in January. During the city council meeting, the council asked questions concerning the correlation of the assessment and funding requirements. The city clerk and RUBA staff developed a work plan to meet and complete the management assessment. Saint Michael Leroy Seppilu, LGS/RUBA, Nome Regional Office Alaska Rural Utilities Collaborative (ARUC) manages the city's water and sewer utility and took over this management approximately a year ago at the request of Saint Michael City Council. The city council acts as the utility board. Nome RUBA staff provided assistance to the city with the logistics of holding the municipal election. After the new city council members were sworn in, Mayor Milton 'Smitty' Cheemuk was re-elected by the city council as a mayor. City Bookkeeper, Gilbert Lockwood, successfully attended the RUBA-sponsored basic QuickBooks Pro training class held in Nome. The city's furnace building burned down and the city filed a claim through its insurance provider. At the insurance provider's recommendation, the city office was closed until a payment plan was made and agreed to. The city re-opened about a week and a half later after agreeing to a payment plan. At the request of the mayor and city administrator, Nome RUBA staff traveled to the City of Saint Michael on September 22-24, 2010, to review municipal election issues, personnel and financial issues. The municipal election is held on the first Tuesday of November in Saint Michael. There were some city council resignations, so there may be four or five vacant council seats. The city clerk has submitted his resignation, and the city council plans to do an emergency city clerk hire to have that person prepare and run the election. The city is facing some serious financial issues. The city office was moved to the old school after it was donated by the school district to the city but is now having to pay at least $6,000 or more in utilities per month. The council is looking to see if it can move the city office back to the old location, but needs to renovate it first. The city may face a fuel shortage as a result of this and may need at least another 6,000 gallons of fuel oil in addition to what it already has. Nome RUBA staff will assist with applying for fuel loans. -176 - July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Scammon Bay Fred Broerman, LGS/RUBA, Bethel Regional Office On September 9, 2010 Bethel RUBA staff travelled to Scammon Bay and met with the city administrator and city clerk to explain the types of assistance available to help the city meet RUBA essential indicators. The council was also briefed on the essential indicators of a RUBA assessment and their underlying principles. On September 23, 2010 Bethel RUBA staff emailed an information request for documents needed to update their RUBA assessment. At the time of this writing Scammon Bay has not provided the necessary documents for essential indicator compliance. The city needs to get current on their electric bills and filing their state and federal payroll taxes. Scammon Bay needs to provide the Bethel RUBA office with monthly financial reports along with council meeting minutes documenting that reports have been reviewed and accepted. City administrative staff also need to submit an accounts receivable aging report for water and sewer customers' status for 30, 60, and 90 days. The city is listed on the July, 2010 Significant Non-Complier (SNC) list due to not having a water filtration system necessary for a surface water source. Bethel RUBA staff participated in the Technical Assistance Providers (TAP) conference calls in August and November for the city of Scammon Bay. Participants included various sanitation agency representatives, however the city manager was not available. Sanitation construction was halted due to safety concerns for Alaska Native Tribal Health Consortium (ANTHC) workers in September and resumed in October. The project focuses on repairing failures to the community's sewage infrastructure. Seldovia Ronalda Olivera, LGS/RUBA, Anchorage Office On September 8, 2010 RUBA staff traveled to Seldovia to present a rate comparison to the council. The City of Seldovia has reached the 35% point with design plans for the new water treatment plant and the council has concerns that the monthly fees for customers are higher than the norm across the state. RUBA and project engineers were invited to meet with the council to discuss their concerns. RUBA staff prepared a water and wastewater rate comparison for the city council using communities comparable to Seldovia in size, population, facilities (i.e.: ferry service), and tourism activity and listed the current water and sewer rates. The communities selected were Port Lions, Larsen Bay, Ouzinkie, and Port Graham. Each of these communities either has a new water treatment plant recently completed or a project is currently under construction. According to CRW Engineers, by using the overall 2009 annual expenditures for the water system ($112,413) as a comparison, water system customers will see a 17% increase in their water bills. The bill for a single family residence will increase approximately $7/month, from $39.13 to $45.78. The estimated monthly bill for Seldovia customers is comparable to the fees paid by the communities used in the water and sewer rate comparison. After reviewing the rate comparison, the council voiced that the proposed fees were reasonable and the change was necessary. This community has been assigned to new RUBA staff during this reporting period. An introductory letter and follow up phone calls were made. Shaktoolik Leroy Seppilu, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to Shaktooolik in October to assist with the election. The city council sits as the utility board in this community. While onsite, RUBA staff also reviewed the monthly finance reports and made recommendations for improvements to the reporting format. The city ordered fuel and had it delivered in September. The fuel supply is adequate for the winter. The city also completed its FY11 budget a little late. RUBA staff had recommended changes to the mayor to make the budget a little more detailed and complete. These changes were reflected in the final adopted budget. -177- July — August — September — October — November — December 2010 1°'* 2" Quarter SFY11 - RUBA Report Shungnak Margaret Hansen, LGS/RUBA, Kotzebue Regional Office RUBA staff traveled to Shungnak September 1-3, 2010 to provide financial management training to the city administrator. The administrator has not been able to complete monthly finance reports which is one of the essential management indicators required to receive sanitation funding. While on site, RUBA staff also assisted with research of tax issues as the city's name appeared on the recent lien watch which created another deficient essential indicator. RUBA staff and the city administrator called insurance providers for quotes to obtain coverage for employees and city facilities. RUBA staff also researched a legislative grant appropriated for dumpsite improvements, a disputed telephone bill, a land issue, and the Alaska Energy Authority weatherization grant. It was also discovered that the city was awarded $31,500 to repair community buildings which will be used in part for the water treatment building. The administrator took a large amount of sick leave and was unable to complete all tasks on the work plan laid out by RUBA staff to correct deficient indicators. RUBA staff will monitor progress, request documentation and change the indicators as proof is received. Toksook Bay Fred Broerman, LGS/RUBA, Bethel Regional Office On December 8, 2010 Bethel RUBA staff visited Toksook Bay to provide information about what Alaska statutes allow when establishing a MOA between city and tribal governments. CE2 Engineers made a presentation to the community in November about the benefits of combining tribal and city government entities. This had generated curiosity among community leaders and ANTHC personnel dealing directly with the community regarding their Alaska Rural Utility Collaborative (ARUC) membership and potential construction of a new water treatment facility in 2011. ANTHC's project engineer and ARUC's manager (by phone) also presented the meeting. ARUC's Manager stated the community was a role model for other rural communities based on the hard work they have accomplished. ANTHC expressed concerns about how a MOA might affect city finances while still in the planning stages of the construction of a seven million dollar treatment plant. Because it had been suggested at the November meeting that the MOA be in place by July 2010, ANTHC also questioned what government would take ownership of the new plant once construction was complete. Bethel RUBA staff shared a four page informational handout titled ‘Contractual Agreements between Municipal and Tribal Governments or Non-profits’ from the Department of Commerce's website. The hand-out generated much discussion as key points were highlighted. Most community members thought that a MOA would result in 'just one community government’ and were not aware that the minimum legal requirements of the city would still be in place and the city would retain ownership and control of its property and assets. Meeting attendees were informed that MOAs were not intended to merge two governments into one; but a tool that two governments could use to formally agree to share responsibilities so that they might better serve their community. Attendees were interested in reviewing MOAs from other Alaska communities. Toksook Bay's city and tribal governments have been holding joint meetings for over 15 years and the community has benefited as a result. - 178 -