The URL can be used to link to this page

Home My WebLink AboutRural Utility Business Advisor Program 1 Oct-Dec 30 2009 Rural Utility Business Advisor Program RUBA Quarterly Report October 1 - December 31, 2009 Second Quarter FY10 WBA RURAL UTILITY BUSINESS ADVISOR RUBA Program Manager Elizabeth Manfred 550 W. 7th Ave., Suite 1770 Anchorage, AK 99501-3569 [Elizabeth's office is on the 16th floor in Suite 1640] 907-269-4556 (phone) 907-269-4563 (fax) elizabeth.manfred@alaska.gov Rural Utility Business Advisor (RUBA) Program Activity Report October 1 — December 31, 2009 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 October 1 through December 31, 2009. This report describes the activities in two general areas. The first area is program activity not specifically associated with direct community assistance. The second part of the report is divided into RUBA and non-RUBA community reporting which describes the status and activity of specific communities. The RUBA communities have signed RUBA agreements requesting assistance and 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 The Dillingham regional office lost a valuable asset when Ralph Andrew resigned this quarter. From his date of hire in 2004 until his final day December 31, 2009, Ralph championed his region and the RUBA program. He demonstrated a sincere desire to provide technical assistance and training to empower rural communities. When he wasn’t traveling to provide onsite assistance, Ralph took the lead in writing and editing training materials, arranging and presenting regional management classes, coordinating and attending inter- agency meetings and mentoring new hires. Recently Ralph coordinated and wrote the Rural Fuel Watch reports which eared notice and praise from the Governor. Ralph stated that he will continue to support rural Alaska and the RUBA program in whatever position he accepts. Recruitment closed for the Nome position and interviews of the top applicants were scheduled. The job should be offered and a new hire will begin in the next quarter. Fuel Watch Initiative: RUBA staff continued monitoring rural communities statewide to identify communities with winter fuel supply needs and concerns. RUBA identified 606 entities that cannot receive fuel delivery via the road system. These entities include cities, village councils, corporations and schools that stockpile large amounts of fuel for winter use. As of December 9, 2009, RUBA had contacted all of these entities and confirmed that at least 593 reported they had received their winter supply or were in their normal cyclic delivery schedule. RUBA’s goal is to monitor sanitation service providers to ensure they do not freeze up this winter due to lack of fuel. RUBA Program Scope of Report Elections Assistance: A majority of the rural water and wastewater services in rural Alaska are provided by municipalities. The governing bodies of these 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 elections. RUBA staff received a higher number of requests for election assistance than in previous years. Many of the city clerks were new in their position and had not received election training prior to the election. Eight cities did not hold the regular election and have requested assistance in scheduling and conducting a special election. Holding elections is a state law and a requirement for receiving community revenue sharing which is often used to subsidize water services. Coordination/Communication Alaska Association of Municipal Clerks (AAMC): RUBA staff recently updated Alaska Statute Title 29 which is the chapter that governs municipalities. A majority of sanitation service providers are municipalities and Title 29 provides their authority. RUBA incorporated appropriate changes made by the 26" Legislature regular session and the August 2009 special session. AAMC invited the RUBA Program Manager (and former municipal clerk) to make a presentation regarding these updates and the relationship of Title 29 in drafting local ordinances; water and wastewater department is required to be adopted by ordinance. Approximately 50 clerks attended the training on November 16 and received copies of the updated Title 29 in both hard copy and on disk. They used the printed copy to complete a training exercise researching issues pertaining to their duties as clerks. Alaska Department of Environmental Conservation Significant Non-Compliance (ADEC SNC): ADEC issues the SNC list of communities who do not meet all regulations for providing safe water to community residents. RUBA staff reviews the list and contacts communities with violations to offer assistance in returning to compliance. The SNC list is a significant indicator identified on the RUBA management assessment tool. If the community is listed on the SNC list, they are determined deficient for that indicator. Alaska Energy Authority (AEA): Anchorage RUBA staff continues to meet with the AEA Power Cost Equalization (PCE) Program Manager and staff regarding monthly PCE reports. AEA returns monthly and annual reports to rural communities stating they have not submitted complete information. The problem is that AEA does not explain how to correct the problem nor do they offer training or assistance. Many smaller communities depend upon receiving the PCE subsidy from AEA to maintain their level of sanitation service as user fees and collections are not enough. Loss of the subsidy is passed on to the customers in the need to raise rates for other services including water and wastewater. RUBA offered to incorporate a day for PCE training with the planned utility clerk training in Anchorage and other utility management trainings as they occur. Alaska Municipal League (AML): The RUBA Program Manager met with Ray Gillespie to discuss a partnership in the area of management trainings offered to communities. Mr. Gillespie has been contracted by AML to identify current sources of training available. He asked RUBA to share which areas of training are most often requested and if any are unmet. We discussed the need for Power Cost Equalization (PCE) training as many communities are RUBA Quarterly Report — 2nd Quarter SFY10 -2- RUBA Program Scope of Report unable to complete reports correctly or timely, thereby losing a valuable subsidy. Business plans, grant applications, elections, and asset management were also discussed as unmet areas of management training. AML and RUBA will continue discussions regarding how to meet additional training needs. Alaska Native Tribal Health Consortium (ANTHC): Anchorage RUBA staff traveled to Ahkiok on October 1, 2009 with ANTHC and Village Safe Water (VSW). The Ahkiok water plant is dilapidated and it has become a priority of ANTHC and VSW to secure funding to build a new plant. The community must meet all RUBA essential management indicators prior to receiving funding. The group met with city officials and citizens to discuss the unmet indicators and how to correct deficiencies. Ahkiok had many positive and proactive ideas to solve issues and involve the community. RUBA staff will work directly with utility staff to find a manual financial management system that can effectively account for all income and expenditures as well as track customer accounts. ANTHC engineer Kurt Sauers notified Dillingham RUBA that the Goodnews Bay water/sewer system was recently provided an interim approval to operate by ADEC. During the project planning, design, and construction of this project, RUBA staff in Dillingham and Anchorage have provided sanitation and utility management support to the city, village council, and utility board. At the present time ANTHC ARUC is managing the water/sewer utility. Dillingham RUBA is maintaining contact with the village council regarding their ‘proposal to transfer the management of the washeteria to the City of Goodnews Bay. Alaska Rural Utility Collaborative (ARUC): ARUC is a project to develop a statewide centralized utility management and accounting function for small rural member communities. Originally, RUBA provided grant funds to hire the manager of the ARUC pilot project. The RUBA grant was awarded with the requirement for submittal of monthly finance reports for all communities managed by ARUC. The monthly finance reports must list all sources of revenue and expense with a comparison to the adopted budget. This requirement extends to also providing the finance reports to the governing body of each utility. The pilot project has grown substantially and continues without monetary support from RUBA. ARUC continues to share monthly finance reports of communities they provide water/wastewater management services. ARUC and RUBA discussed the essential and sustainable criteria and if additional criteria should be identified and required. There was also discussion as to the tax information required and how the tax lien watch information should be entered on the management assessments. The City of Graying contacted Bethel RUBA staff with a request for assistance after being notified that ARUC has terminated their contract because of numerous unmet operation and maintenance issues involving the city’s water plant operator. The city was given until October | to resolve the issues in order to continue with ARUC; the issues were not resolved. RUBA will schedule a trip to Graying to conduct an assessment and provide assistance. Alaska Tribal Conference on Environmental Management (ATCEM): Juneau RUBA staff conducted two four-hour financial management training sessions at the 15" Annual ATCEM held November 16-20, 2009. The ATCEM is hosted every year by the U.S. aD eeeemeemeememeeemeeeeeeeeeeeeeeeee ees RUBA Quarterly Report — 2nd Quarter SFY10 -3- RUBA Program Scope of Report Environmental Protection Agency and the Alaska Native Tribal Health Consortium to provide an opportunity for tribal organizations to build capacity so that they can formulate solutions to the environmental challenges faced in rural Alaskan communities. RUBA conducted training sessions focused on the basics of financial accounting, with an emphasis on managing a community environmental program, such as solid waste, water, or wastewater enterprise. Participants learned the components of a good accounting system, budgeting process, and the use of financial and managerial reports. Anchorage RUBA staff presented a four-hour class on rate setting for water and wastewater utilities at the ATCEM. After presenting a simple method for calculating rates, the group applied what they learned by completing two exercises and lesson review questions. RUBA staff then presented and demonstrated the Excel based rate calculator on disk that was developed by a contractor for the RUBA program. The rate calculator simplifies the process of determining rates for water utilities and is accompanied by a step-by-step guidebook. Each participant received the rate setting lesson as a hand-out as well as a copy of the rate setting calculator and guidebook. Alaska Water Wastewater Management Association (AWWMA): RUBA signed a grant with AWWMA to maintain the training data base for RUBA sponsored class participants. AWWMA has placed a link on their web site that allows public and funding agencies access to query successful participation in the RUBA utility management courses. They update the data source with information provided by RUBA at the completion of each regional class. RUBA provides student participation information upon successful completion of a RUBA utility management class. This training data source will also trigger the need to issue a utility manager certificate upon completion of all eight courses and when the student has taken the final exam. Bristol Bay Area Health Corporation (BBAHC): Dillingham RUBA staff met with BBAHC Environmental Health staff in an effort to maintain communications with other service providers in the Bristol Bay region. BBAHC provides primary health care services in the region; their environmental health staff provides water/wastewater services. BBAHC has oversight of the Remote Maintenance Worker (RMW) who provides technical assistance to public water systems and Field Sanitarians who provide support to public water systems on tasks including sanitary surveys. Topics discussed were training opportunities, sanitation project updates, reports of sanitation-related events including the E. coli outbreak in Pilot Point, and methods to share community related information. BBAHC has co-sponsored regional RUBA training classes in Dillingham and King Salmon and plans are being made to offer another RUBA course in February 2010. Bristol Bay Native Association (BBNA): Susan Flensburg, BBNA, contacted Dillingham RUBA staff requesting information regarding our QuickBooks training program and materials offered. She was given a brief description of the class with the explanation that only an introductory class is offered. The course is specifically designed for governmental entities to assist with financial management. A secondary goal is to provide continuity of reports being submitted to funding agencies. Ms. Flensburg has also contracted a RUBA Quarterly Report — 2nd Quarter SFY10 -4- RUBA Program Scope of Report QuickBooks provider for training in the region. She requested a copy of our training manual to avoid duplication of services and consistency in delivery. Community Development Block Grant (CDBG) Training: Twenty participants from the Kotzebue region attended a three day CDBG workshop. Kotzebue RUBA staff provided the participants with additional resource material concerning possible funding for sanitation projects and spoke to them about working with their municipal, tribal and other local entities to maximize their opportunities to accomplish projects. Kotzebue RUBA staff continued contact with representatives from four of the communities in attendance who have stated they will be applying for CDBG funds for water/wastewater projects. Power Cost Equalization (PCE): Anchorage RUBA staff met with PCE program staff in Anchorage on November 10, 2009 to discuss the requirements for community reports. Many of the rural communities receive PCE subsidy funds for their community facilities and community services such as the water treatment plants or washeterias. PCE staff explained annual and monthly report requirements and provided comments on how RUBA can assist rural communities with submission of their reports. Rural Alaska Pilot Project (RAPP): RUBA staff attended a meeting of RAPP at the Internal Revenue Service (IRS) office in Anchorage December 10, 2009. 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 the Alaska Department of Commerce, Community, and Economic Development, the U.S. Environmental Protection Agency, and Senator Begich’s office. RAPP meetings are held quarterly to discuss how rural Alaskan tribal and municipal governments can be assisted with their financial and tax problems. IRS representatives reported on two employment tax and gaming pull-tab workshops that have been held since September in Kotzebue and Kodiak. Two other tax workshops were held in Anchorage. RUBA staff presented information to the group regarding assistance offered to communities with the QuickBooks accounting system. The RUBA program provides installation, training, system troubleshooting and classroom instruction for QuickBooks. Discussions also covered reporting requirements for the EPA IGAP program and the Federal Payment Levy Program. Rural Sub-Cabinet Public Hearing: On November 23-24, the Governor’s Rural Sub- Cabinet held public hearings in Naknek and Dillingham. Dillingham RUBA staff attended the public hearing in Dillingham. Community leaders and residents presented concerns about a wide range of topics including fuel prices, alternate energy, health and safety, transportation, workforce development, access to banking services, mining development and clean water. Technical Assistance Providers (TAP): The December 9, 2009 Technical Assistance Provider (TAP) business meeting held at the Department of Environmental Conservation (DEC) Anchorage conference room was facilitated by the RUBA program manager. The TAP group consists of representatives of sanitation service providers who meet to coordinate assistance provided to rural service providers experiencing management, construction, or regulatory difficulties. Currently the group is assisting Scammon Bay, Tununak, Gambell, Sn eeeemmeeeeeeee eee RUBA Quarterly Report — 2nd Quarter SFY10 -5- RUBA Program Scope of Report and Hydaburg. Potential additional systems and their present status considered by TAP members are Adak, Emmonak, and Akiachak. An update of the TeleOp Project to provide operator training via video camera was shared stating the cameras and video materials are purchased and the names of operators with access to a computer and internet are being recruited. The video training is an attempt to provide training required to maintain operator certification without the expense of travel. University Of Alaska Fairbanks (UAF): Dr. Tony Nakazawa, College of Rural Alaska, Cooperative Extension Service requested that the RUBA program manager review the update of their publication The Chair Recognizes, A Booklet _of Parliamentary Procedure. The intended audience of this publication is the general public, community groups, and elected/appointed officials. This booklet is designed to ease the burden of interpreting and reinterpreting the intricacies of parliamentary procedure. It is not meant to be definitive or complete, but it should answer most questions raised on parliamentary procedures. Copies of this publication are provided free to RUBA for use when presenting trainings. Performance Goals Publications: The 2009: updated version of Title 29 is now available on the Division of Community and Regional Affairs, RUBA web site. Title 29 is the Alaska Statute that addresses municipal governments. Updates include the first and second session of the 26" Alaska Legislature. RUBA distributed hard copies and compact discs of Title 29 during the recent Alaska Municipal League annual conference. One great feature of the online or electronic version is that a person can click on a section in the table of contents and immediately zoom to the passage within the document. The publication is available to all municipalities who provide sanitation services within their communities. Staff Development: One of the RUBA staff development requirements is for each hire to attend the Introduction to Small Water Systems training. Dillingham staff Barbara Higgins attended this course in Palmer the week of November 16-20, 2010. Tim Anderson, UAS Sitka Campus, presented the class for water operator certification. Attending this course was a great opportunity to learn the basic concepts of water, types of water sources, water treatment, pumping systems, water safety issues, regulations, and monitoring. Another benefit was gaining a general understanding of what is necessary to make a plant operate and then looking for those components in relationship to budgets and other management indicators of the RUBA management assessment. As presenters of utility management training, this course also provides a better understanding of the operator’s role and how it supports managers. A Fairbanks RUBA staff member attended the annual Alaska Municipal League (AML) conference held in Anchorage November 16-20, 2010. The conference started with two days of Newly Elected Officials training. RUBA has developed a 32-hour course for elected officials that is presented in regional hubs to rural community members who cannot travel to AML. RUBA staff will glean information from the AML presentation and incorporate it in our training material if applicable. Sustainable Housing, Empowerment of your RUBA Quarterly Report — 2nd Quarter SFY10 =6= RUBA Program Scope of Report Communities, and the Programs of Alaska Energy Authority were other workshops attended with information that affects sanitation service in rural Alaska. Anchorage RUBA staff took advantage of the 19" Annual Tribal Providers Conference courses November 30-December 4, 2009 held at the Egan Center in Anchorage. RUBA staff was able to attend the Internal Revenue Service (IRS) Year-End Employment Tax Reporting, Procurement Technical Assistance, Emergency Planning for Rural Alaska Villages, Water and Sewer System, and Tribal Council Roles and Responsibilities Code Drafting sessions. The information learned will increase the training skills and information provided by RUBA when interfacing with tribal entities who deliver sanitation services. 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 46 trips to 38 communities during the second quarter of SFY10. Sixteen RUBA staff plus the two part-time materials development RUBA staff traveled this quarter for a total of 130 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. Management Assessments and Follow-up Assistance: Nine RUBA management assessments were completed this quarter. Of the current 160 RUBA assessments, only 57 are meeting 100% of the essential capacity indicators. Of note, 27 communities increased essential indicator counts to demonstrate improved capacity. After the initial assessment is completed, monthly contact is made with the utility to receive a current finance report and, in several instances, additional documentation to assess management capacity. If these documents are not provided, RUBA changes the essential indicator to no until documentation is received. Increased On-Site Assistance through Use of Contractual Staff QuickBooks Pro Assistance: Many of the communities served by RUBA staff use QuickBooks Pro for accounting but often need assistance with the program. The technical nature of the questions and problems require time and an understanding of the QuickBooks program. To assist communities with QuickBooks accounting problems, RUBA continues to contract Turnagain Press who are the instructors for RUBA sponsored classes and were the authors of the RUBA publication ‘Introduction to QuickBooks for Sanitation Utilities.’ RUBA also supports a QuickBooks assistance hot line. Turnagain Press is available to assist communities with QuickBooks accounting problems Monday, Tuesday, and Thursday each week from 10 am to 3 pm by calling 907-440-0242. The contractor resolves accounting problems for rural sanitation utility staff concerning all aspects of the QuickBooks software program. The contractor anticipates that most problems will be RUBA Quarterly Report — 2nd Quarter SFY10 -7- RUBA Program Scope of Report resolved through phone calls. Assistance is also offered through use of email, review of community accounting files, and remote computer access. For more serious problems, the RUBA contract includes a travel budget to allow a maximum of 15 community site visits per year. This contract increases the management capacity of rural sanitation utilities by correcting accounting deficiencies while building capacity in training local staff. From October 1 through December 31, the helpline assisted 10 communities with 29 calls and the Internal Revenue Service with two calls. In addition, the utility clerk from Pilot Point traveled to Anchorage and met with the hot line contractor twice regarding billing issues. RUBA staff traveled with the QuickBooks contractor October 26-28 and December 1-4, 2009 to Old Harbor to continue installation and training of the QuickBooks accounting software. Initially the administrator and mayor opposed combining the general fund and enterprise funds into one company file even though they shared the same tax identifier. They were under the impression that combining the funds on paper meant combining all funds in the same bank account and not provide a method to track fuel reserves and savings accounts. The contractor and RUBA staff will continue to work with city staff to ensure that the QuickBooks file is customized to the community’s need and that the treasurer and utility clerk are trained properly. RUBA staff traveled with the QuickBooks contractor December 14-17, 2009 to Galena on the first of three onsite visits to install and train city staff with the QuickBooks accounting program. There will be two more onsite visits with the QuickBooks contractor to finish installation and training of the accounting program. The second visit is scheduled for February 2010 and the third one will be four to six weeks later. Training Classes Presented Fairbanks: Eighteen participants representing city and tribal governments in Chalkyitsik, Hughes, Huslia, Kaltag, Koyukuk, Northway, Nulato, Ruby and Tanana successfully completed a RUBA utility management training course in Fairbanks during the month of October. This training Elected Officials Management for Rural Utilities was provided by Fairbanks RUBA staff and co-sponsored by Tanana Chiefs Conference, Office of Environmental Health. Topics of training included the following: Overview of Government, Roles and Responsibilities of Elected Officials, Effective Meetings, Ordinances and Resolutions, Policies and Procedures, Financial Management, and Utility Management and Sustainability. Dillingham: RUBA has contracted Turnagain Press to present beginning QuickBooks Pro classes in four regional settings each year. On December 7-11, 2009, the four day QuickBooks Pro for Beginners course was presented in Dillingham. This week long class focuses on the unique aspects of maintaining accurate governmental financial records and helps address the problem of maintaining qualified bookkeeping staff in small rural communities. The regional QuickBooks class continues to be one of the most requested training classes that the RUBA program offers. RUBA routinely partners with training organizations and regional health corporations to maximize the benefit to rural communities. RUBA also provides scholarships for travel and lodging to assist with the RUBA Quarterly Report — 2nd Quarter SFY10 -8- RUBA Program Scope of Report expense of training. Ten students from Fairbanks, Dillingham, Aleknagik, Togiak, and Chignik completed the course. A RUBA staff member from Fairbanks and one from Dillingham also completed the training as RUBA staff is often required to provide QuickBooks assistance to their assigned communities. RUBA provides reimbursement for travel and lodging to assist with the expense of training for students who successfully complete these courses. Kotzebue: Kotzebue, Fairbanks, and Anchorage RUBA staff presented Elected Officials Management for Rural Utilities November 30-December 4, 2009 in Kotzebue. Due to bad weather and a death in one community, only seven of the thirteen registered students actually participated in the 32-hour course. Mayors and council members from Buckland, Noatak, Kobuk, Selawik, and Noorvik attended. Those in attendance shared many concerns on how to change procedures to meet essential and sustainable management indicators. Evaluations completed by participants also expressed surprise in learning of their role and responsibility in enforcing billings and collections for a utility service. Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a training mini-grant program to provide airfare and lodging reimbursement to utility staff who attend RUBA sponsored classes. This quarter, RUBA » provided reimbursement to utility staff who attended the QuickBooks Pro Beginner’s Class, and two Elected Officials Management for Rural Utilities courses this quarter. The training funds require attendance and participation in the complete course prior to reimbursement being issued. A total of $22,494.11 was awarded to 25 participants requesting reimbursement. EE RUBA Quarterly Report — 2nd Quarter SFY10 -9- Pe at Legend On-Site Visits QuickBooks Helpline UTM Students Assesments RUBA Program Activity Map October 1 through December 31, 2009 October — November — December 2009 2" Quarter FY10 - RUBA Report Table of Contents Alakanuk ANGELSON.....scsessssssessssssesessenssssscnesscssesenesesncsesnsscsssnessseseseesessseeucasseacaeseseesssesesesecsescseseeas 13 EMMonak.........cccscssesesesseseseseeessesesssssensecssnssssssesssssesesseaeseeseaeeeesesescsesesscssaseseasaceesacacsees 19 Hooper Bay Hydaburg.. Kasaan... Klawock 43 Koyuk.... 49 Kwigillingok. 55 Larsen Bay 61 Mekoryuk.. 67 Napaskiak.... 73 Nelson Lagoon. 79 Nunapitchuk 85 Oscarville .. 91 Port Heiden... 97 Scammon Bay.. 103 Selawik... ---107 Tuluksak ... +113 White Mountain...... 119 October — November — December 2009 2" Quarter FY10 - RUBA Report Table of Contents Non-RUBA Communities Aleknagik. Allakaket...... Anaktuvuk Pass.. Deering.. Galena... Koyukuk. Nikolai... Old Harbor .......sccssccssssssssesssessseessssecsessssssssssssssssesesesessesseseseacssscseesesseseseseessessesscesenee Pilot Point . Port Lions .. Shishmaref October — November — December 2009 2" Quarter FY10 - RUBA Report ——$—$——————————— EEO pont Community Activity Reports Second Quarter FY10 October 1 — December 31, 2009 October — November — December 2009 2“ Quarter FY10 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Regional Office 2007 Population: 681 Region: Lower Yukon Local Government: 2" Class City od The City of Alakanuk operates the piped water and sewer system, the central watering point, flush tank and haul system, and washeteria/sauna service. The city council is the policy making body for the utility. There are 135 utility customers hooked up to the system. Water is derived from the slough, treated, stored in a tank, and piped to most of the community. New facilities include a water treatment plant, heated 300,000-gallon water storage tank, vacuum sewage plant, sewage lagoon, arctic piping and household plumbing. The new subdivision has been airport construction is on-going. RUBA Activity This Reporting Period Bethel RUBA staff contacted the City of Alakanuk regarding required documentation for the RUBA managment assessment. Alakanuk provided a list of newly elected officials and the certificate of elections. They did not provide the required monthly finance reports. A checklist was faxed identifying documentation needed to meet essential and sustainable indicators to evaluate their management capacity. The city administrator and city clerk attended the RUBA sponsored 32-hour 'Utility Clerk Management’ course held November 2-6, 2009 in Anchorage. Topics covered included public relations, meetings, time management, records management, elections, financial management, ordinancess and resolutions. The new city clerk/utility clerk also attended the RUBA sponsored QuickBooks class in Anchorage. As direct responsibility for utility billings and collections, this course provided her the initial skills to continue routine monthly billings and to record collections properly. October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. {] Monthly financial reports are prepared and submitted to the policy making body. 4] The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators x 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. &X A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: A budget was adopted and passed for FY10 (July 1 thru June 30). The budget is balanced and realistic. The city administrator was busy with elections and failed to file the monthly finance reports required as an essential management indicator. He reported that nine thousand gallons of fuel was ordered and received in September 2009 and is expected to be sufficient for winter needs. Alakanuk has money budgeted for fuel purchase if additional fuel is necessary. The City Administrator provides verbal reports to the council and these are recorded in monthly meeting minutes. The administrator has completed budget amendments when additional sources of revenue or expenditures require such. Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. RX The utility bills customers on a regular basis. Xi An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. x The payroll system correctly calculates payroll and keeps records xl A cash receipt system is in place that records incoming money and what it was for. X 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. X 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. October — November — December 2009 2" Quarter FY10 - RUBA Report ——[—[—_——— wv eee _—_ ce ge pore Accounting System Comments: The city utility ordinance was effective as of March 2008 and includes a collection policy. The collection policy identifies a grace period of 45 days for past due utility bills. RUBA has recommended adjusting the grace period to 30 days. The city administrator contacted RUBA to questions how QuickBooks processes payroll tax liabilities. He reported that due to QuickBooks taking two days to deposit payroll into employee accounts, timesheets are turned in two or three days early with time included to the end of the pay period. This time is not always worked yet recorded as worked. The administrator questioned the time of acceptance of time sheets and check issuance. Assistance was provided by RUBA. The name, phone number, and available hours for contact were also provided. Tax Problems Essential Indicators Yes No a} The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. ® The utility is current on making tax deposits. ® If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Internal Revenue Service deemed the city to be compliant with federal tax requirements. The IRS Tax Advocate reported the the unpaid tax due for December 2006 has been paid. Alaska State Department of Labor also deemed the city compliant at this time. There are no reported tax liens in the December 2009 Lien Watch report. Personnel System Essential Indicators Yes No ® The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Kk wx Xx Personnel System Comments: Alakanuk is covered for workers compensation insurance through Umialik Insurance Co. effective to February 2010. Job openings are posted in at least three public places. The probationary period is three months from the date of appointment. The city administrator provides on the job training for new employees and other training is given if funding is available. City staff took advantage of two RUBA sponsored trainings recently. The new city clerk/treasurer attended the QuickBooks accounting course offered in Anchorage. Shortly after, the city administrator and the city clerk attended the RUBA -9- October — November — December 2009 2"4 Quarter FY10 - RUBA Report sponsored 32-hour course Utility Clerk Management’ course in Anchorage. City staff particpated fully in both classes and were awarded airfare and lodging reimbursement from the RUBA training fund. 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 &X The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. ® The utility complies with the “Open Meetings Act” for all meetings. RRRXRAN Organizational Management Comments: The City of Alakanuk provides water/wastewater services and operates a washeteria. The washeteria includes showers and saunas. The city recently held elections and certified a new council who will review and monitor utility policies. The administrator has been in his position for over two years and has received grant writing training, QuickBooks training, and attended three RUBA utility management trainings. His personal goal is to attend all six of the management courses and become a certified utility manager. The city has a city clerk/treaurer who is also responsible for monthly billings and collections. She is new to the position but has previous financial managment experience. Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] 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). I 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. XWORRK & -10- October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Comments: Alakanuk Water System is on the significant non-compliance list for Surface Water Treatment Rule and Stage 1 violations. The last violation in November 2009 was a lack of DS Cl Residual reporting due to missed monthly bacti sampling. There is no known hardware problem. Alakanuk water treatment system is currently a class 2 and the wastewater treatment system is class 1. They have one operator, Kevin Joseph, who is certified as a water operator 1 and wastewater operator 1. He continues to attend training when possible. RUBA Activities For The Coming Quarter RUBA staff will monitor the utility and provide assistance when requested. -i1- October — November — December 2009 2" Quarter FY10 - RUBA Report eset Anderson Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Regional Office 2007 Population: 295 Region: Interior Local Government: 2" Class City ed All homes have individual wells, septic systems, and plumbing. Water is also derived from a well at the Anderson School. A permitted recreation vehicle (RV) disposal lagoon and sludge disposal site is provided by the city. Residents hire a private septic pumping company when their systems need maintenance; the company deposits the waste into the city owned lagoon. There is a Village Safe Water project proposed to connect all building to a piped wastewater system. Construction of this has not started. RUBA Activity This Reporting Period On October 8, 2009 Fairbanks RUBA staff members, Jeremy Johnson and Brendan Smyth, met with City of Anderson staff to complete a RUBA Assessment of Management Capacity Indicators. Gathering information for the assessment was an extremely easy process for a number of reasons, three of which are (1) the office staff is very well organized; (2) there are few distractions in the office; and, (3) the city currently does not provide any utility services so some criteria were not applicable. RUBA staff made paper and electronic copies of necessary documentation for analysis when creating the actual assessment. Specific documents used in this report are on file in the Fairbanks office. The City of Anderson has requested that RUBA continue assistance in the areas of codifying the city ordinances and providing oversight for the November regular election. City council members are the governing board for the soon to be piped wastewater system. October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. ® The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. ® The utility is current in paying all water/wastewater electric bills. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X 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. X) Budget amendments are completed and adopted as necessary. Finances Comments: The City of Anderson has a budget that is easy to read and lists all the revenue and expenses by department. The budget is balanced and realistic. Based on last fiscal year, the budget is appropriate. Costs are assigned to each department to pay their share and, as a helpful tool, the current budget line items are compared to the previous fiscal year amended totals. Monthly financial reports are created and prepared for the policy making body. The city has not entered the budget into QuickBooks so it is not using the standard reports that QuickBooks can generate. Instead, the city exports income and expense reports into Excel and the provided report contains all the necessary information: the budget, monthly totals, year-to-date, and the balance. In fact, the report which show the monthly income/expenses provides more information than the standard QuickBooks report as those do not show financials by month. Another report that the treasurer provides is one titled Bills to be paid. This report shows which invoices need to get paid and also any purchase orders that need to be authorized. The report details the vendor, purpose, amount, and which city department is responsible for payment. The treasurer does not attend city council meetings (the council does not want to pay overtime) so the financial reports are provided by the city clerk who also gives a verbal report. RUBA staff suggested that the treasurer provide a written report to accompany the financials as this will benefit both the city clerk and the entire council. The city does not have any outstanding bills to be paid, bills are entered into QuickBooks as they are received and the accounts payable report is zero. Fuel is purchased from a local (Nenana) vendor as needed. Since Anderson is on the road system, it has the benefit of lower fuel costs and immediate access. The city has plenty of money allocated for heating fuel purchase and the city is receiving revenue to cover operating expenses. The only utility the city currently has is the lagoon and it is on track to stay within the budget. The lagoon budget has a 10% savings line item ($10,000) allocated. The lagoon department (environmental) is expected to cost $25,605 with sewage lagoon revenue fees expected to be $80,000. The FY10 financial reports that RUBA has reflect data for July and August only. By annualizing the current financial reports and comparing them to the budget and the last certified financial statement, it indicates that the community is on the right track. Year-to-date (YTD) revenues are above those budgeted but YTD expenditures are not below what is budgeted. For two months of data, the city should be at 16% of budget but they are at 23.68%. A drawback to only having two months of current data does not allow for a trend to easily be established or mitigate any -14- October — November — December 2009 2" Quarter FY10 - RUBA Report — sD ee poe seasonal anomalies. Based on historical financial analysis, the City of Anderson will stay within the budget and revenues and expenditures will equal the budged amounts. 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 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 XX] 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 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. XK XXm X Accounting System Comments: In preparation of the wastewater construction project, the city passed Ordinance 08-06 Providing Sewer Service to the City of Anderson which included a section on a collection policy. The council has not yet had the opportunity to follow the collection policy since the utility has not been constructed. As the proposed piped wastewater utility does not exist, all supporting material is being based on the existing accounting practices of the lagoon, the assumption being that the same practices will be applied to the . utility upon completion. Unlike other communities which have many customers that are billed monthly, the City of Anderson has very few consistent customers. The monthly customers the city does have are billed regularly. The city rents out space to the Alaska Department of Motor Vehicles, and to the US Postal Service, bills are mailed monthly. According to the QuickBooks accounts receivable (A/R) report, a private company rented a building from the city, bills were created monthly but not always paid. The last bill created was in June 2009. In addition to A/R, QuickBooks is utilized for accounts payable and payroll. The city has few cash transactions, mostly for the occasional soda, fax, or copy sale but there is no receipt system in place. This has been identified separately by an auditor from the CPA firm Wilson and Wilson, located in Fairbanks. RUBA understands the perspective of the city, that there are so few sales it is not worth the time to implement a receipt system, the FY10 budget estimates that the copier and fax will each collect $25 (soda sales is not even budgeted). While RUBA understands the hesitance to write receipts for $0.25 or more transactions, since this assessment is extrapolating the current practices onto the future wastewater system, it is imperative to develop a receipt system. It will be most crucial to have this system in place before the first wastewater customer bills are mailed. The city, by using QuickBooks, has a system in place to record how money was spent. For the size of the city and number of services, the chart of accounts is extensive and would benefit from being reduced to a more manageable number of accounts. The city has created a utility account but it has not been accessed, there is nothing to reconcile. The city has four other bank accounts which were last reconciled on August 31, 2008 (NBA Savings), July 30, 2009 (General Fund Savings), August 31, 2009 (General Fund FNB), and September 30, 2009 (Grant Fund FNB). The approval process for purchases depends on the dollar amount to purchase. For purchases less than $1,500 the employee can make the purchase directly (with a purchase order), for purchases between $1,500 and $5,000 the council member who is designated the department head authorizes the expense. Expenses greater than $5,000 would need to be approved by the entire council and according to the budget. October — November — December 2009 2" Quarter FY10 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. ® 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: Copies of the last four quarters of payments, along with the reports have been obtained for both the IRS and Department of Labor. On December 29, 2009 both the IRS and DOL deemed Anderson to be compliant. Personnel System Essential Indicators Yes No X 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. Xi The utility has adequate written job descriptions for all positions. XX] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. &X The utility has an adequate written hiring process. XJ] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. Xi The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: The workers compensation insurance policy is posted in the kitchen/employee break room and is purchased through AMLJIA for the period of July 1, 2009 through July 1, 2010. The personnel policy is part of the Anderson Code of Ordinances 2.50 and is complete, as are the job descriptions for city positions. According to the clerk and lack of evaluations in the personnel folders reflects that evaluations have not occurred in a number of years. The personnel policies state that they must occur on the employee anniversary date of hire (AO 2.565.5(b)) in addition to other times. The personnel policy has a written hiring process, which provides the mayor the ability to create the device or devices to be used in evaluating applicants, if they wish. Personnel folders contained every document except for the letter of acceptance. According to the personnel policy, the probationary period is 90 days and it is up to the department head to provide job training, oversight, and evaluations. Training opportunities are available and have been utilized. The treasurer recently attended the RUBA sponsored QuickBooks training in Anchorage during the week of September 21-25, 2009. -16- October — November — December 2009 2" Quarter FY10 - RUBA Report ——$——_—— et _F emm Pe 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 RRXRRR ® The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. Xx The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: As established in the wastewater utility ordinance 08-06, the City of Anderson shall own and operate the utility. As before, since the utility has not been created all indicators are being based on the actions of the city council (also the utility board) with respect to management of the existing lagoon. The city council meets regularly and is an active participant in discussions with the Village Safe water engineer and was active in passing the utility ordinance. The city council enforces the existing ordinances for the sewage lagoon. Mr. Scott Thompson is the city maintenance foreman who will assume the duties of the operator; Councilman Mike McKenzie is the Public Works Director and immediate supervisor to Mr. Thompson. Councilman McKenzie would fulfill the duties of the manager. Ordinance 08-06 sections 3 and 5 give the city the authority to operate the system. An organizational chart was printed from the clerk's computer and it shows the current structure and lines of authority. The city council meets every month and those meetings are open to the public to attend. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. XX] 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. X Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. Ri 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. X The utility maintains a critical spare parts list. -17- October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Comments: Mr. Thompson has current wastewater treatment and collection certificates which will expire 12/31/2010. When asked if the sewer lagoon has a preventative maintenance plan, the response was ‘yes and no’. RUBA staff had also inquired with the VSW project engineer, in an email dated October 16, 2009 about the existence of a plan; no response was given. The manager does get monthly reports, or if there is anything of a pressing nature he is provided with updates as necessary. The manager also made onsite visits to view productivity and to inspect the maintenance books. Mr. Thompson gives safety meetings according to the standard operating procedures for the lagoon. There have not been any major problems; the utility is operating as designed. Each building has its own water well; the city does not provide public water and does not have a Consumer Confidence Report. The city is not on the SNC list. The city has on hand some essential parts. It also retains fencing and parts to repair the liner. As the city currently only has a lagoon there are very few parts to keep on hand, when compared to a piped water system. RUBA Activities For The Coming Quarter As a road system community I anticipate a day visit to assist in updating their code book. I have been working on this project independently and hope to schedule a visit in January for one on one training and project review. -18- October — November — December 2009 2" Quarter FY10 - RUBA Report Emmonak Activity Report Community Overview Lead RUBA Staff: Susan Charles, Bethel Regional Office 2007 Population: 796 & Region: Yukon-Kuskokwim Delta Local Governments: 2"! Class City ae The City of Emmonak owns and operates the piped a, water/sewer system. The city also owns and operates Pe AO the washeteria/sauna. A new washeteria construction is in the last stage of completion. The city council is the policy making body for this utility. Water is derived from the Yukon River and is treated. Piped water and sewer services are provided to most of the residents of Emmonak. Currently, there are 206 connected to this system. Out of those connected, there are 185 residential homes and 23 businesses in service. The next water/sewer Village Safe Water funding will connect six new Emmonak tribal housing units. RUBA Activity This Reporting Period Bethel RUBA staff was contacted by the city manager later in this quarter on fuel, election issues, and IRS filings. During the earlier visit, RUBA staff reviewed and discussed RUBA requirements and the possibility of conducting an assessment later in the next quarter. The city has undergone staff and council turnover and is recovering from severe flood damage in the spring. These factors have delayed the assessment. In preparation of an on-site visit a check list was faxed identifying all indicators that would be evaluated to determine Emmonak's management capacity. This list was faxed a number of times during this quarter and discussed with the city staff. -19- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X 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. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating eX) penses . Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XK] YTD revenues are at a level equal to or above those budgeted. I YTD expenditures are at a level equal to or below those budgeted. ) A monthly manager’s report is prepared. KX] Budget amendments are completed and adopted as necessary. Finances Comments: The new city manager is trying to provide required documentation for the essential indicators. He has previous experience as Emmonak's city manager and should be able to provide documentation to substantiate all essential indicators during the next quarter. The city owes $57,000 to the electric utility and is in the process of entering into a repayment plan agreement. Accounting Systems Essential Indicators Yes No 4 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 & x accounts and amounts. ® An accounts payable system is in place. &X & X 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. X 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. -20- October — November — December 2009 2"! Quarter FY10 - RUBA Report —[—}— —— OO eee OT Accounting System Comments: The city has been preparing records for a single audit this last quarter. Collections have been a problem in the last quarter due to change in administration. Notice was posted that all delinquent account holders had to November 13, 2009 to get current. Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX The utility is current on filing tax reports. &] The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: There are no reported tax liens on the statewide lien watch. The IRS Tax Advocate indicates that third quarter returns have not been filed for 2009. The city manager was notified and reminded to send documentation for deficient indicators. Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. ble Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. 8 BY oe we Personnel System Comments: The community of Emmonak has undergone significant staff and council tumover. All staff are newly hired. There is a personnel policy that includes sections for hiring, evaluation, and probation. Vacant positions are posted until filled. New hires are on probation for three months. The city manager and city council have authority to hire. The Emmonak city council screens and hires for the positions of manager, police chief, clerk, treasurer, and city attorney. Workers compensation insurance is provided by AML/JIA. -21- October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Xl The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. x The utility complies with the open meeting act for all meetings. NXXRRR Organizational Management Comments: The City of Emmonak is known as the provider for water and wastewater services and has adopted an ordinance that authorizes it to operate. A previous city manager réturned to become acting city manager. The bookkeeper worked in accounts payable prior to taking the position as the city's full-time bookkeeper. Operation of Utility Essential Indicators Yes No XK) 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 {The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. {&] The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. &] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). I The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility is listed on the Significant Non-Compliance list for Stage 1 violations. The city hired water wastewater operation staff and have arranged for training. Indicators will change as more information is available from the new operator. RUBA Activities for the Coming Quarter: RUBA staff is available to provide assistance with any management capacity indicators that are not being met. All RUBA documentation was reviewed and requested from the new city manager. -22- October — November — December 2009 2" Quarter FY10 - RUBA Report Hooper Bay Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Reginal Office 2007 Population: 1149 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City ed The City of Hooper Bay operates multiple watering ¥ Peng, PO points within the village and a solid waste and wastewater lagoon. The residents self-haul their own garbage and honey buckets. Hooper Bay Utility Advisory Board advises the city council on utility operations and management. The new school, teacher housing, old clinic, head start building and washeteria are connected to the piped water and wastewater. The new washeteria/water treatment plant is now operational. The watering point at the old town site is connected to processed water from the new water treatment plant. The HPB Traditional Council is pursuing a solid waste management grant to upgrade the existing lagoon. Over 75 homes were to be connected to the water and sewer lines by the end of FY08. The water and sewer project is planned to be completed in 2010. RUBA Activity This Reporting Period The city staff are stable long term employees and are competent. A piped water and sewer system has been constructed and the school, teacher housing, old clinic, Head Start building and washeteria are now hooked up to the system. All other homes and businesses self haul water and honey buckets. Currently, a problem preventing extension of the piped system is in the old town site area where houses are very close together and in no particular order, making it hard to put in the water and wastewater distribution system. The new washeteria/water treatment plant is complete and operational and it is impressive. There are two watering points, one at the washeteria and the other in the middle of the village. RUBA received copies of the FY 2010 budget and monthly financial reports through November 2009, a user fee collection report, and tax deposit payment confirmations. The FY10 budget for the washeteria/water treatment plant is balanced with subsidies from sales tax and gaming revenue. But the FY 10 budget needs to be amended to include the sales tax and gaming subsidies and the carry over grants funds from FY09. A wind generator and a waste heat recovery project from Alaska Village Electric Cooperative (AVEC) are planned for the new washeteria/water treatment plant. When connected, the two projects will displace 29,000 gallons of fuel currently used by the plant, according to the administrator's calculations. October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. Xl 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. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators J 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. HERR Finances Comments: FY 2010 budget for water and sewer is balanced, but the budget needs to be amended to include the sales tax and gaming subsidy and the carry over grant funds from FY09. Monthly financial reports are up to date to November 2009. Washeteria operating costs continue to be subsidized from sales tax and gaming. Electric bills are paid up and documented. Hooper Bay is also looking into waste heat recovery and wind generation for the new washeteria/water treatment plant. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. x An accounts payable system is in place. x 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. Xx 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. Xm Accounting System Comments: All of the above indicators are reviewed through reports received from the community on a monthly basis and are on file in the Bethel RUBA office. Water and wastewater billings are sent out the first of every month. Accounting is done with QuickBooks Pro. -24- October — November — December 2009 2" Quarter FY10 - RUBA Report Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. ® 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: The community continues to be in compliance with tax requirements. The city pays payroll tax deposits electronically and copies of deposit slips are on file in the RUBA Bethel office. IRS and Alaska State Department of Labor confirmed compliance of tax reports and deposits. Personnel System Essential Indicators Yes No XI The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &® The utility has adequate written job descriptions for all positions. &] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. ® The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &) The utility provides training opportunities to staff as needed and available. &X & Personnel System Comments: RUBA has on file copies of documentation for the above indicators. Workers' compensation is through AML/JIA effective July 2009 to June 2010. Qualified long term staff in the city administration is a huge benefit to this organization. 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). [J The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Rl The utility has adopted an organizational chart that reflects the current structure. &® The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. XRXRRRRR -2 a October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Comments: The utility currently has an adopted ordinance, however a new water and sewer ordinance that meets the Regulatory Commission of Alaska's requirements is being considered for adoption by the city council. The administrative and finance staff are long term and are competent and that includes the water operator. The city continues to make sure the operators are current with certification. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. XK] The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). KI] The utility is not on the Significant Non-Compliance (SNC) list. 1 The utility maintains an inventory control list. XK] The utility maintains a critical spare parts list. XeR w Operation of Utility Comments: RUBA recommended to city staff that they request from CE2 consultants the preventive maintenance plan, inventory control list and critical spare parts list in the operations and maintenance manual for the new facility as well as the safety manual. The SNC lists a Stage 1 violation in February 2009. RUBA Activities For The Coming Quarter The FY 10 budget needs to be amended to include the sales tax and gaming subsidies and the carry over funds from FY 09 grants. An operation and maintenance manual for the new washeteria/water treatment plant needs to be located, as well as a preventive maintenance plan. -26- October — November — December 2009 2" Quarter FY10 - RUBA Report Hydaburg Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Regional Office 2007 Population: 353 Region: Southeast Local Governments: 1‘ Class City od *2 The city operates a level 1 water distribution and V eee, PO wastewater collection system and a level 2 water treatment system. The Hydaburg River provides city water, which is treated and piped throughout the city. Piped gravity sewage is treated at a secondary treatment plant with an 800' outfall to Sukkwaw Strait. Over 95% of all homes are plumbed. Funds have been requested to construct a new dam to increase the water supply. The city is exploring options to improve waste disposal. Alaska Power and Telephone Co., based in Skagway, owns and operates diesel power systems in Hydaburg and Craig, which provide electricity to many Island communities. RUBA Activity This Reporting Period Juneau RUBA staff traveled to Hydaburg on December 7 - 8, 2009 to meet with city staff and complete a RUBA management assessment. The assessment was completed at the request of the community to demonstrate the current level of financial and management capacity and to establish the community's eligibility to receive Alaska Native Tribal Health Consortium (ANTHC) project funding. ANTHC has allocated funds for significant upgrades to the community's water and wastewater systems. However, the community has been unable to meet the criteria for all the RUBA assessment essential indicators which are requirements for receiving the funding. The community still does not have all the necessary financial and management system in place to pass the RUBA assessment; however, the community has made significant improvements in their financial processes and internal controls. These improvements will allow additional long-term and meaningful improvements to happen. RUBA staff will continue providing technical assistance and support the community in implementing the necessary changes. A follow-up RUBA assessment is scheduled in six-months to measure progress. RUBA staff, at the request of the community, is also available for on-site assistance to provide training and assistance in improving and meeting the deficiencies identified in this assessment. -27- October — November — December 2009 2" Quarter FY10 - 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. KK] Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. X & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. J The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. EK Budget amendments are completed and adopted as necessary. Finances Comments: The city has not yet adopted an FY10 annual budget. The budget is drafted and was scheduled to go to the council for first reading on December 8, 2009; however, the council failed to achieve a quorum and the meeting was postponed to an unfixed date. Until the budget is finalized and adopted by the council, the city does not meet any essential or sustainable indicators involving the budget. The administrator has previously made only verbal financial reports to the council on a monthly basis. Until recently, there were internal errors with the QuickBooks program which caused inaccurate information to appear on the financial reports. The city hired Tammy Stromberg, CPA of Aurora Corporate Enterprises Inc., as an independent contractor to correct the problems with the QuickBooks program. After months of working on the accounting system, the contractor reports that there are still a few problems but the accounting system is now generally accurate and useful. The city has started using three separate profit and loss statements to communicate financial information to the council on the enterprise funds, general fund, and capital projects. The Administrator understands that as a condition for passing the monthly financial report essential indicator, the utility budget information must be entered into the accounting system. This will make it possible to provide budget versus actual financial reports to the council on a monthly basis. Electricity is provided through Alaska Power and Telephone Company. A visual inspection of the most recent electricity billings verifies that the city is current with all electricity accounts for the water and wastewater utilities through November 2009. The city has two 275 gallon fuel tanks for heating fuel, located at city hall and the water treatment plant. The city receives fuel deliveries from Petro Marine in Craig on an as needed basis. The city usually maintains a one to three month fuel supply however theft of fuel from the city tanks has become an increasing problem. There are locking caps on the tanks and the city attempts to keep the tanks locked however on occasion they have found the locks cut. The administrator recently replaced the locks with a higher security type which he hopes will solve the fuel theft problem. The city has adequate funds available and purchases fuel as needed. The governing body is fully aware that user fees do not produce sufficient income to cover operating expenses or repair and replacement (R and R) costs. It has been a general practice for the city to use whatever sources of money that are available to subsidize utility's operating expenses. The city has in the past had to resort to deferring payment of other city obligations to ensure the continued operations of the water treatment plant. The administrator and mayor have expressed their desire to start enforcing the city's collections policy and addressing the utility rates that have not been changed in several years. In December 2009, the mayor published and sent out a newsletter informing -28- October — November — December 2009 2" Quarter FY10 - RUBA Report ———— EEO AUDA Report residents of the new utility bill collection procedures that will be imposed starting January 1, 2010. The city administrator, who also serves as the utility manager gives both verbal and written status reports to the council at monthly meetings. Written reports are usually timely and comprehensive. The administrator recently completed a 44-page report identifying financial and maintenance concerns with the water, wastewater, and solid waste utilities. Accounting Systems Essential Indicators Yes No XX 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. XX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. ReKK WH XX Accounting System Comments: The city has an adopted collection policy which is contained in Title 13 of the Hydaburg Municipal Code. The collection policy is no more than a single provision to discontinue service to any customer who is more than 60 days past due. The policy does not cover conventional utility ordinance topics such as billing dates, delinquency notices, service charges, and charges to reconnect services. In the past, the city has been inconsistent with sending out monthly bills and there has been little enforcement on past due accounts. The current collect rate calculated from July 1, 2009 through December 7, 2009 is 24.5%. Over the last few months, the utility has become diligent about billing its customers on a regular basis and has committed to enforcing collections and discontinuing service to past due customers. This increased effort will hopefully produce a stable source of income for the utility. The city is currently using QuickBooks Pro for their accounts receivable, accounts payable, and payroll. The account receivables system documents customer payments and reports past due accounts with the corresponding monetary amounts. The aging report includes all customers and shows total amounts due as well as whether it is 1-30 days, 30-60 days, 60-90 days, or over 90 days past due. The administrator and accounting contractor were in the initial stages of developing a cash receipt log to record incoming cash payments and checks not accompanied with an invoice. Along with the cash receipt log, the city recently started using two separate receipt books to provide customers with proof of payment, one for utility payments and one for other incoming funds. The accounting contractor is providing procedural training to city finance personnel and is in the process of developing and implementing other internal financial controls. The accounting contractor reports that all bank accounts have been reconciled through October 2009. The city uses a purchase order system, which requires review and signature by the administrator. Because the city does not currently have a FY-10 budget, the administrator attempts to prevent overspending by reviewing the cash balance report before approval. The city is completely caught up on their delinquent annual financial audits and auditors are currently working on the city's 2009 annual financial audit. -29- October — November — December 2009 2 Quarter FY10 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. X The utility is current on making tax deposits. x If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of 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. In August, 2009 the city was placed in collection status with the IRS for delinquent payroll taxes. Since that time, the city has become current on payroll tax deposits as well as paying all past due taxes, penalties and interest. On December 7, 2009, 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). The City of Hydaburg is deemed compliant with tax reporting and deposits requirements. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. kX Wk ww Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska National Insurance Company. The policy is effective from 7/1/09 through 06/30/10. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Copies of the workers compensation policy is posted in accordance with state statute in all public buildings and in areas easily accessible to employees. The city council recently addressed several issues in their personnel policy. An updated policy has been drafted and is scheduled to be adopted at the next council meeting. The city keeps records relating to employees in a personnel file. RUBA staff reviewed personnel files on a sample basis and found that the files were well-organized and contain all the necessary employee documents. The administrator reported that all files connected with an employee are considered strictly confidential. The city has plans to purchase new fire proof and locking cabinets for document storage. The utility has a written hiring procedure with a 6-month probationary period for new hires. The job descriptions are up to date and expressly outline each employee's required duties. -30- October — November — December 2009 2" Quarter FY10 - RUBA Report a i ds_._, 0 ee pore The city provides training opportunities when outside sources of training funds are available. Administrator has attended RUBA classes. Organizational Management Essential Indicators Yes No x The entity that owns the utility is known and the entity that will operate the utility is set. & The policy making body is active in policy making of the utility. The policy making body enforces utility policy. XK) The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. XX] The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. &X The policy making body meets as required. & The utility complies with the open meeting act for all meetings. be Organizational Management Comments: The City of Hydaburg owns and operates the water and wastewater utilities. The council is the formal governing body and meeting minutes verify that it is actively engaged in making decisions on behalf of the utilities. The council attempts to meet on the first and third Tuesday of each month; however they have recently had problems obtaining a quorum for scheduled meetings. The council holds special meetings and additional work sessions if necessary. The city complies with open meeting requirements and posts meetings in accordance with local code and state statutes. The manager for the sanitation utilities is the city administrator. He is adequately trained in the administration and management of the utility. Due to staffing limitations, the bookkeeping responsibilities are not well defined. The duties are generally split between the city administrator and city clerk. The administrator has attended several RUBA sponsored QuickBooks trainings and the accounting contractor is providing ongoing training to both the administrator and city clerk. When the city. is financially able to do so, the city plans to hire a fulltime bookkeeper. The city currently has only one uncertified operator working on the sanitary systems. The operator has received some hands-on training from the former operator and the remote maintenance worker is providing additional training working towards the operator receiving his provisional certification. The city currently operates a level 2 drinking water system. The council has adopted all the ordinances necessary to own and operate the utility services. Title 13 of the Hydaburg Municipal Code establishes the policies and procedures for the operation and maintenance of the community water supply system. The city has an organizational chart contained in the personnel policy. The chart depicts the direct relationship between supervisors and subordinates however it does not accurately reflect the current organizational structure of the city. -31- October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & 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. a) The utility has a safety manual and holds safety meetings. ® Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. ® The utility maintains a critical spare parts list. XXWOR Operation of Utility Comments: The city operates the following sanitation systems: Level 2 Water Treatment Level 1 Water Distribution Level 1 Wastewater Collection The water operator has completed the Introduction to Small Water Systems, Provisional Level training but failed to pass the State certification exam. The Hydaburg public water system is listed on the most recent (11/9/09) Significant Non-Compliance List. The utility is receiving treatment technique violations for turbidity and monitoring which has resulted in a boil water notice for the community. The utility failed to provide quarterly TTHM/HAAS samples for 1st quarter FY10. The utility has not completed and distributed its Consumer Confidence Report (CCR) as required by the Safe Drinking Water Act. The utility has a critical spare parts list but does not maintain an inventory control list. The administrator reports that the utility maintains a sufficient level of supplies and tools but due to the community's island location and dependence on air and ferry service, the current level of critical spare parts may be inadequate to prevent a service outage. The utility has experienced recent outages due to running out of polymer and chorine. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the community in the area of financial management. RUBA staff will also continue to work with the utility on the accomplishment of identified goals along with providing ongoing technical support. The identified goals are: 1. Complete the FY10 budget and FY09 audit 2. Identify all sources of revenues for the utility. 3. Complete an accurate estimate of expenditures for the coming year. 4. Review and update the existing collections policy. -32- October — November — December 2009 2" Quarter FY10 - RUBA Report Kasaan Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Reginal Office 2007 Population: 63 Region: Southeast Local Governments: 2" Class City od The City of Kasaan operates and manages a piped A ee, a no water 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 Juneau RUBA staff traveled to Kasaan, December 9 -10 to provide training to the Kasaan and Klawock city clerks. Both city clerks are new to their positions and neither has worked as a city clerk or in the local government field before. The two-day training included topics such as meetings, agendas, minutes, ordinances, filing, codification, and the Open Meeting Act. RUBA staff also assisted with payroll issues and the policy on how to calculate an employee's final paycheck. The bookkeeper has contacted and received assistance from the RUBA QuickBooks hotline on three occasions this quarter. The QuickBooks contractor assisted the bookkeeper in inputting budget information so budget versus actual financial reports could be created which satisfies the criteria for the financial report essential indicator. The city currently meets all essential management indicators with only two sustainable indicators still unmet. Utility billing statements, and bank reconciliations. October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No ® All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. ® 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. x The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. 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. NHMNX Finances Comments: The fiscal year for the city is July 1 through June 30. The fiscal year 2010 budget was adopted by a non-code ordinance on June 19, 2009. The utility budget is part of the overall city budget. The FY10 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 $28,195.94. 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 FY10 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. -34- October — November — December 2009 2"! Quarter FY10 - RUBA Report Accounting Systems Essential Indicators Yes No &X The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records _ 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. HHkK we Rkw Accounting System 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 through August 2009. 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. ' Ge wm 1 October — November — December 2009 2" Quarter FY10 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & The utility is current on making tax deposits. & 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). 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 community has not received any derogatory correspondence from the Internal Revenue Service (IRS) or from the Alaska Department of Labor and Workforce Development (ADOLWD) within the last year. Personnel System Essential Indicators Yes No 4] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators x) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. ® The utility provides training opportunities to staff as needed and available. Xk kX Be Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska Municipal League Joint Insurance Association (AMLJIA). The policy is effective from 7/1/09 through 6/30/10. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Copies of the workers' compensation policy 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 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 made -36- October — November — December 2009 2" Quarter FY10 - RUBA Report 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. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators ® The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. 4} The utility complies with the open meeting act for all meetings. KMRNXRR 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 Thorne 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 P Exp. 12/31/09 Water Distribution P Exp. 12/31/09 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. -37- October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Essential Indicators Yes No &X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. &] The utility maintains a critical spare parts list. XI MXRKR Ww 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 AMLJJIA 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 do 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 no longer listed on the Significant Non-Compliance (SNC) list. - 38 - October — November — December 2009 2“ Quarter FY10 - RUBA Report 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. -39- October — November — December 2009 ane Quarter FY10 - RUBA Report Klawock Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Regional Office 2007 Population: 743 Region: Southeast Local Governments: 1* Class City od Over 90% of homes are fully plumbed. Water is Sana, ae j derived from a dam on Half Mile Creek, then is treated, stored in a tank, and piped throughout Klawock. Most homes have piped sewage collection, which receives secondary treatment. The city provides refuse collection, which is hauled to a permitted landfill shared with Craig and other island residents. The Tlingit-Haida Regional Electric Authority purchases electricity from Alaska Power and Telephone over the Craig/Klawock intertie. THREA also owns four standby diesel generators in Klawock. RUBA Activity This Reporting Period Juneau RUBA staff traveled to Klawock, December 10, 2009 to provide training and follow-up assistance on addressing deficient RUBA management assessment essential indicators and delinquent grant progress reporting. RUBA staff worked with the city administrator to bring delinquent grant progress reporting up to date. The city does not currently meet the criteria for all the essential indicators. The administrator is still struggling with problems with the accounting system that resulted when the city switched accounting programs. RUBA staff will continue providing technical assistance and support the community in implementing necessary changes to meet all essential indicators. -41- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. xX 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. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. Xl YTD expenditures are at a level equal to or below those budgeted. x) A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: Juneau RUBA staff traveled to Klawock, December 10, 2009 to provide training and follow-up assistance on addressing deficient RUBA management assessment essential indicators and delinquent grant progress reporting. RUBA staff worked with the city administrator to bring delinquent grant progress reporting up to date. The city does not currently meet the criteria for all the essential indicators. The administrator is still struggling with problems with the accounting system that resulted when the city switched accounting programs. RUBA staff will continue providing technical assistance and support the community in implementing necessary changes to meet all essential indicators. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. Xl An accounts payable system is in place. & The payroll system correctly calculates payroll and keeps records i} A cash receipt system is in place that records incoming money and what it was for. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators x A chart of accounts is used that identifies categories in a reasonable, usable manner. xX Monthly bank reconciliation’s have been completed for all utility accounts. LJ = 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 an adopted collection policy which is contained in Title 10 of the Klawock Municipal Code. The city follows the collection policy and actively pursues delinquent utility accounts. The collection -42- October — November — December 2009 2" Quarter FY10 - RUBA Report ——— eS OOOO EOE Oe eee port policy is somewhat flexible and contains two discretionary methods for collection of past due accounts. Any customer more than 60 days past due, at the discretion of the city, may either be turned over for collection or the water service will be disconnected. Of the two methods, the community does not favor water service disconnections and will do so only as a last resort. The city uses Ketchikan Credit Bureau Inc. when turning customer accounts over for collections. In addition to the consequences found in the collections policy, the city encourages payment plans and Permanent Fund Dividend (PFD) assignments to avoid collection actions. The utility bills customers each month. Bills normally go out on or around the 5th of the month. The Administrator acknowledged that bills are periodically delayed due to staff availability to read the water meters prior to the mailing deadline. The city is currently using accounting software by Cougar Mountain. Cougar Mountain is designed for nonprofit and government entities needing basic general ledger fund accounting. General ledger functionality includes an unlimited number of funds, departments, or grants, as well as inter-fund transfers, fund balancing, and allows multiple grants with varied year ends. A bank reconciliation function is included for reconciling bank statements with actual checks and deposits. The program consists of five integrated modules: General Ledger, Accounts Receivable, Accounts Payable, Inventory, and Order Entry. The city also purchased the Payroll and Purchase Orders modules separately. Each module has standard reports such as income statements, balance sheets, cash requirement and cash flow statements that adequately provide financial information, but are not easily customized without an additional report generating add-on. The General Ledger contains internal controls such as permission settings and audit trails. Accounts Payable Section issues checks, manages vendor information and interfaces with Purchase Orders and General Ledger modules to enable full encumbrance accounting. Accounts receivable module maintains customer account and payment information, documents customer payments and reports past due accounts. Accounts Payable Section issues checks, manages vendor information and prints 1099 and 1096 tax forms. The payroll module automatically posts payroll expenses to the General Ledger and allows direct output printing for 941, W-2, and W-3 forms, and meets payroll reporting requirements for Alaska. The program maintains payroll history for five quarters to allow processing of the current year's payroll before finishing W-2s for the prior year. The company continues to support the software with updates and provides annual IRS Circular E updates for current tax requirements at an extra cost. The city uses a purchase order system for all purchases and maintains a cash disbursement system to track expenditures. Department heads complete purchase orders which are then submitted for approval. Purchase orders are not always compared with remaining budgeted funds. This has caused a few occasions where purchases have exceeded budgeted amounts. The administrator completes monthly bank reconciliations and reports reconciling all bank accounts through February 2009. Tax Problems Essential Indicators Yes No XK The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX] The utility is current on filing tax reports. XX] The utility is current on making tax deposits. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The administrator authorized RUBA staff to obtain federal tax information from the Internal Revenue Service (IRS) and employment security tax information from the Alaska Department of Labor and Workforce Development (ADOLWD). Based upon information received from the IRS and ADOLWD, there is no record of a federal tax lien being filed against the taxpayer and a tax clearance letter for Alaska employment security tax was issued. The Taxpayer Advocate Office did report that the City of Klawock is deemed non-compliant with employment tax filing and deposit requirements. Taxpayer advocate records show that the city owes federal taxes for Ist and 2nd quarters 2008, and failed to file information returns for 1st quarter 2009. The city disputes the IRS findings and has provided proof of payment. RUBA staff visually inspected the community's last four 941's Employer quarterly federal tax -43- October — November — December 2009 2" Quarter FY10 - RUBA Report returns and verified electronic debits. It appeared that the last four quarters of 941's were filed timely. The city is working directly with the Taxpayer Advocate Office to either correct the information being reported or if it is found to be accurate, resolve the tax deposit and payment deficiencies. The City of Klawock was released from an Alaska Employment Security Tax lien on 2/17/09. The city has not received any derogatory correspondence from 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 XX] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job 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 BR wR X Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska Public Entity Insurance Company (APEI). The policy is effective from 7/1/09 through 6/30/10. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Copies of the workers compensation policy is posted in accordance with state statute in all public buildings. In addition to workers compensation insurance, the APEI municipality insurance program includes general liability, automobile and property insurance and coverage for public officials and law enforcement officers. The city has an adopted personnel policy handbook. Every employee is expected to follow the personal policies but are not required to submit a signed statement that they have read and understand the handbook. The administrator admits to it being outdated and in need of review and some revising. The city has recently contracted with a consultant to review the employee handbook and bring the existing material in line with applicable State and federal laws. The city has job descriptions to aid in the staffing, wage and salary administration, and training for all positions. The job descriptions are up to date and clearly outline each employee's required duties. Personnel files are well organized and in most cases, contain all the necessary employment documents. The city does not use acceptance letters when offering employment. All files connected with an employee are considered strictly confidential, and are kept in the city clerk’s office in a locked filing cabinet. To limit access, the key to the filing cabinet is kept in the office safe. The city clerk reports that access to the personnel records are limited to only the employee, to those who have a job-related need to know, and to those who have been authorized by the employee to see the file. A probationary period for new employees lasts up to 90 days from the date of hire. During the probationary period, an employee may be terminated without advance notice and without cause. Upon satisfactory completion of the probationary period the employee becomes a permanent employee. The probationary period also includes work place orientation, job training, oversight, and performance evaluations. -44- October — November — December 2009 2 Quarter FY10 - 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. XX] 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 XK] The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. HkXWORN Organizational Management Comments: The City of Klawock owns and operates the water, wastewater and solid waste 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. They meet the first Tuesday of each month and hold additional work sessions if necessary. Overall, the council supports and enforces established utility policies. However, once the policies are set, there is no annual review to ensure that the policies are still up to date and are meeting the needs of the community. RUBA staff received information that it has been several years since the council has reviewed utility policies such as ordinances, personnel policy, and water rates. By city ordinance, the mayor is the chief administrative officer of the city, however he has delegated the majority of the administrative officer functions and authority to the city administrator. The city administrator, under the direction of the mayor and council performs administrative duties, supervises administrative staff, and is responsible for managing daily operations. The administrator is in a multiple responsibility position. In addition to his administrator duties, he serves as the city accountant, responsible for the maintenance of the books and as the utility manager. The administrator shares some of his utility management duties with the public works director. His duties include supervision of operational utility staff and the daily operations and maintenance of the sanitary facilities including water, sewage, garbage collection and maintenance of the sanitary landfill. The council has adopted all the ordinances necessary to own and operate utility services. Title 10, Chapter 1 of the Klawock Municipal code establishes the policies and procedures for the operation, regulation and maintenance of the water and sewer facilities. The city has an organizational chart; however the chart is very basic and does not effectively show the direct relationship between supervisor and subordinate. It does not accurately reflect the organizational structure of the city and fails to define either lines of authority or lines of communication. ' S wn ' October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Essential Indicators Yes No a) The utility operator(s) are actively working towards necessary certification. &J The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. &X 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 Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. HH Operation of Utility Comments: The city operates the following sanitation systems: Level 2 Water Treatment Level 1 Water Distribution Level 1 Wastewater Treatment Level 1 Wastewater Collection The city encourages professional development training and the utility operators are adequately trained given the classification of the sanitation facilities. There are three operators responsible for operating and maintaining the sanitary systems with the following certifications: Bennet Charles, Water/Wastewater Operator Water Treatment 2 Exp. 12/31/2011 Wastewater Collection 1 Exp. 12/31/2009 Sam Nickerson, Water/Wastewater Operator Water Distribution OIT Exp. 12/31/2009 Wastewater Collection 1 Exp. 12/31/2010 Water Treatment 1 Exp. 12/31/2011 Wastewater Treatment 2 Exp. 12/31/2009 Harry Jackson, Water/Wastewater Operator Water Distribution P Exp. 12/31/2010 Wastewater Collection OIT Exp. 12/31/2010 Water Treatment 1 Exp. 12/31/2010 Wastewater Treatment 1 Exp. 12/31/2009. Utility staff was unable to produce a preventative maintenance plan, however, the administrator reports that daily preventative maintenance is completed and the sanitary facilities have not suffered any major problems or outages. The Klawock public water system is not listed on the most recent (11/09/09) Significant Non-Compliance List, however, the last Consumer Confidence Report (CCR) providing drinking water quality information as required by the Safe Drinking Water Act was completed and distributed in 2006. The utility does not maintain an inventory control or critical spare parts 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 FY10 utility budget has allocated zero dollars towards repairs and maintenance. RUBA Activities For The Coming Quarter City and RUBA staff will work together to develop a work plan to prioritize and set timelines for corrective actions on essential indicators. . -46- October — November — December 2009 2" Quarter FY10 - RUBA Report Koyuk Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 347 Region: Southeast Local Governments: 1‘ Class City od The City of Koyuk operates the water and sewer system and maintains a central watering point for residents to haul their own water. There are honey bucket pits but no sewage lagoon. The city council is the policy making body for the utility. The City of Koyuk is working with Village Safe Water on a number of future projects including the rehabilitation of the water sewer lines, a new solid waste site and water treatment plant. RUBA Activity This Reporting Period Nome RUBA staff traveled to Koyuk on October 14 and 15, 2009 at the request of the Koyuk city council. The purpose of the trip was to complete a RUBA management assessment necessary to receive sanitation construction funds. The utility's computer had crashed approximately two months prior and the utility clerk had been manually keeping records and preparing utility bills manually. The city and the utility used the community benefits share funds from Norton Sound Economic Development Corporation (NSEDC) to purchase fuel oil, which substantially lowered the expenses for the utility. The city council is planning to raise the utility rates. A feasibility study completed the Alaska Native Tribal Health Consortium recommended raising the residential rates for the current rate of $70/month to $120/month. The city council revised the personnel policies after RUBA recommended that the policies be updated. The next project will be to review and revise the city's code of ordinances. Requested documentation of management processes was received and all essential indicators are met. -47- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes & XX ® 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. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X w w 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 Water and Sewer Utility Department's finances are: Revenues: Water/Sewer Utility: $110,000; Washeteria: $2,658; Trash Haul: $22,204. Expenditures: Water/Sewer Utility: $88,638; Washeteria: $6,178; Trash Haul: $22,322. The water/sewer utility rate for residents is $70 a month; commercial rate is $150 a month; school is charged $3,700. The utilities consume approximately 12,000 gallons of fuel oil a year. The city purchases its fuel by using Norton Sound Economic Development Corporation Community Benefits Share Program funds. The city received $100,000 from the CBS Program this year. This program enables the utility to pass on the savings to its residential customers. The city clerk is preparing an amendment ordinance for the city council to approve. The amendment includes some of the utility's budget figures. Accounting Systems Essential Indicators Yes HkXRX WH 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. Su a Wem tainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 48 - October — November — December 2009 2"! Quarter FY10 - RUBA Report ————— eS OOOO eee esse port Accounting System Comments: The utility has an updated water/sewer utility ordinance. Utility bills are sent monthly to customers using QuickBooks Pro. The utility computer crashed about two months ago. It was about six years old. The utility clerk is in the process of purchasing a new desktop. Fortunately, the utility clerk had made it a habit of backing up its QuickBooks Pro files on a weekly basis. In the meantime, the utility clerk is keeping records manually. She has been able to keep up with everything, even though it is more time consuming. The utility clerk has sent out past due and disconnect notices to the customers who are behind with their water/sewer bills. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. Xl The utility is current on making tax deposits. x If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility has its own Employer Identification Number (EIN). All tax liabilities are paid electronically. The utility was a little late with making an electronic payment in August 2009, but did pay it. The 941 quarterly tax reports for 3rd quarter was submitted on time. The utility has an excellent Employment Security Contribution (ESC) employer rate of 1% for calendar year 2009. This is one of the indications that the utility sends it quarterly ESC tax reports and payments in timely manner. The utility is deemed compliant at this time. Personnel System Essential Indicators Yes No XJ The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. kX ® BR WH -49- October — November — December 2009 2" Quarter FY10 - RUBA Report Personnel System Comments: The utility employee records are very comprehensive and complete. Although the city's personnel policies are old, the city council makes amendments to meet the needs of the city and its employees. Training opportunities are provided to the employees and made available as needed. New hires are given orientation with their jobs duties and given the city's personnel policies as part of the reading material when hired. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. 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 HRRRXYH & The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. XK The utility complies with the open meeting act for all meetings. Organizational Management Comments: The utility clerk has worked for the utility for at least six years. She has attended and participated in various RUBA-sponsored Utility Management Training workshops. The two water/sewer plant operators are certified and are also long-time employees. The city council acts as the utility board. The utility issues are on the monthly meeting agenda and the utility clerk make regular reports to the council. All city council meetings are open to the public Operation of Utility Essential Indicators Yes No RX The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. be XRRKKK WN October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Comments: The utility is no longer on the Significant Non-Complier list. All the city employees are required to attend the safety teleconference meeting sponsored by its insurance and workers compensation provider. Both the primary and alternate operators are certified to Level 1 Water Treatment certification and hold various certifications for water/sewer plant operators. RUBA Activities For The Coming Quarter The utility clerk is in the process of purchasing a desktop to replace the computer that crashed about two months ago. RUBA staff recommends to the utility to purchase a business-grade computer with a minimum of 4 gb memory and at least 400-500 gb hard drive, to meet the needs of managing the utility. Use QuickBooks Helpline to reinstall updated QuickBooks Pro into the new computer and to reinstall the QBP backups. October — November — December 2009 2" Quarter FY10 - RUBA Report October — November — December 2009 2" Quarter FY10 - RUBA Report Kwigillingok Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Regional Office 2007 Population: 361 Region: Lower Kuskokwim Local Governments: Tribal Council ed The village council operates the central watering point and washeteria. Water is derived from snow, ice melt and a lake reservoir and treated. Water haul services are provided by the council from the washeteria. The water is not fit for human consumption. About fifty percent of the residents are on the flush haul system, the remainder use honey buckets. Honey buckets are disposed by residents at private pits. The school operates its own surface water treatment facility but shares the sewage lagoon with the washeteria. Infrastructure improvements are underway to develop a community system. RUBA Activity This Reporting Period Kwigillingok did not pass all essential indicators for second quarter 2010 because monthly financial statements for October through December, 2009 have not been submitted to the Bethel regional office. Their fiscal year is the calendar year. A budget for FY09 and financial statements to month ending September 2009 have been submitted to the Bethel regional office. Their worker's compensation insurance coverage with Alaska National Insurance Company is current. The Kwigillingok Washeteria is on the Environmental Protection Agency's Significant Noncompliance List which was dated October 2009. They are compliant with IRS and employment security taxes. October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No X X X x x 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. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators ba w ® wy | 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: Kwigillingok submitted the FY09 budget which uses the calendar year. The budget did not contain an expense line item for chemicals and testing which is due to the fact this system prohibits human consumption of the water and their filtering system is not complete. Based on this information, the water, sewer and laundromat budget for FY09 contained all operating items for the operation of the utilities. The Native Village of Kwigillingok adopts the annual budget, approves amendments, and receives monthly financial statements and progress reports from the utility manager. Both the laundromat and the tribal office building are up to date with electrical bills. Their fuel capacity is 103,000 gallons. When needed, the utility is subsidized from heavy equipment rental income as well as the general fund. Equipment rental income can range between a high of $10,000 a month to zero. They have bobcats, dozers, a front-end loader and a tiller. Other smaller equipment is available for rent like trailers and fuel carts. The budget includes a nominal amount for repair and replacement costs. The last financial statement submitted to the Bethel regional office is for the month ending September 09. Because of the lack of current financial information, year-to-date revenues and expenses can not be analyzed. The laundromat budget is part of the Tribal budget and the flush and haul system is under the Kwig Power Company budget. Both are subsidized from unrestricted sources within each budget. October — November — December 2009 2 Quarter FY10 - RUBA Report Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. & An accounts receivable system is in place which track customers and reports past due accounts and amounts. X 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. Xx 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. 4} Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The utility has a collection policy and actively follows it. When customer past due accounts reach ninety days, they no longer receive services until their outstanding bill is paid in full. A past due list of customers who no longer will receive services until their outstanding bill is paid was provided to RUBA. Customers are billed at the beginning of each month. A service order system is in place which tracks the amount of working hours for the utility operator and provides backup for customer billing. The tribe uses QuickBooks 2008 and it has the capacity to track customer's accounts, accounts payable and accounts receivable, correctly calculate payroll, and do financial reports. A chart of accounts was submitted to the Bethel regional office file for both the tribal and utility accounts. Bank reconciliations are done on a regular basis. A sample purchase order form, which requires prior approval before purchases are made, was also provided to RUBA. Tax Problems Essential Indicators Yes No & 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. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: On December 22, 2009 IRS reported that Kwigillingok has filed all required tax reports, is in compliance with deposit requirements and has no outstanding liens against them. Alaska Department of Labor and Workforce Development reported that Kwigillingok has filed all required employment security reports. October — November — December 2009 2" Quarter FY10 - RUBA Report Personnel System Essential Indicators Yes No &) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every euuleyee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. xX The utility provides training opportunities to staff as needed and available. kX XR We Personnel System Comments: Kwigillingok IRA submitted a current copy of their worker's compensation insurance coverage. The Bethel regional office has a copy of the personnel policy as well as job descriptions for the tribal administrator, primary laundry attendant, utilities director and tribal accountant. All staff are evaluated each year. The utilities director emphasized that the operators are on a performance based evaluation and their hours are based on their workload. The utility personnel files are complete and contain I-9s. The personnel policy does contain provisions for an employee probation period which is followed. When training opportunities become available for employees, they are allowed to attend. 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. & The policy making body meets as required. 4] The utility complies with the open meeting act for all meetings. XXX Organizational Management Comments: The utility is operated by the Native Village of Kwigillingok. The council meets regularly each month and is active in policy making for the utility. Although they are not required, the council complies with the Open Meetings Act for each regular meeting they hold. The meetings are advertised three days in advance by posting written flyers throughout the community. The utility manager has worked for the Native Village of Kwigillingok since 1983. The bookkeeper transferred from the Yukon Kuskokwim Health Corporation where she worked in payroll. The laundry operator has worked for Kwigillingok for approximately two years. The bookkeeper and utility operator attends training sessions when they -56- October — November — December 2009 2"! Quarter FY10 - RUBA Report become available. Utility Ordinance number 2005-10-01 was submitted to the Bethel regional office as was an organizational chart, which is reflective of the current structure. These documents are in the community file. Operation of Utility Essential Indicators Yes No &) The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & 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. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. XJ The utility maintains a critical spare parts list. HWKO Operation of Utility Comments: The Native Village of Kwigillingok operates the laundromat. The water supply from the watering point in the laundromat is not safe for human consumption and there are signs posted throughout the community, including private homes. The signs prohibit the use of the water for drinking, and provides instruction on how to boil water to make it safe for human consumption. Community members use rain water and ice for drinking. The tribe provides services to evacuate sewer tanks and haul services. Kwigillingok is on the SNC List dated October, 2009. They may be able to return to compliance by September, 2010. The utility operator worked for the Native Village of Kwigillingok since 1983 and attends training sessions when they are available. The Bethel regional office file contains forms for annual, quarterly and monthly preventative maintenance reports. The utility manager does spot checks to the laundromat and verbally receives information on maintenance and other issues which is written and presented to the council at their monthly meetings. The utility manager stated he holds safety meetings once a week but did not submit a written safety manual. The utility has not suffered any major problems or outages due to management issues to date. The utility ordinance states that the primary service shall be to provide water haul service and sewage tank evacuation of homes. Because the filtering system is not complete, the water service is limited to use for nonhuman consumption purposes such as for the laundromat. There is no water haul service offered yet. No Consumer Confidence Reports, inventory control or critical spare parts lists were provided. RUBA Activities For The Coming Quarter Kwigillingok has not passed all essential indicators for second quarter of 2010. RUBA staff will continue to work with the utility manager on deficient sustainable indicators. October — November — December 2009 2 Quarter FY10 - RUBA Report Larsen Bay Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 83 Region: Kodiak Island Local Government: 2"™ Class City located within the Kodiak Island Borough, Tribal Council od Water is supplied from two groundwater sources- gravity feed from the hydro plant, and a well as backup, and stored in a 200,000 gallon tank. A water supply line is connected to the penstock of the hydroelectric plant and used a majority of the time to reduce utility expenses to both the service plant and the customer. All 40 homes are connected to the piped water system. A community septic tank with an outfall line serves these homes, and the majority are fully plumbed. Weekly refuse collection services are provided. The community incinerator is currently unusable and all refuse is deposited at the landfill site. The city has been funded for a water treatment plant project from the Village Safe Water (VSW) program. RUBA Activity This Reporting Period On December 7, 2009, RUBA staff traveled to the City of Larsen Bay to conduct Newly Elected Officials (NEO) training and work with the city and utility clerk on accounting issues. Five of the council members attended the evening NEO training. The members were engaged and participated actively in the training. Many other accounting tasks were completed with the city and billing clerks during the on-site visit, such as corrections of Excel billing sheets for the electric utility and Power Cost Equalization reports for the months of August, September, October and November. RUBA staff also assisted with the Certified Financial Statement, creating IRS 941 reports for the first and third quarter of the current year and reconciliation of the cash and cash register accounts. RUBA staff will continue to work with the council and city staff to ensure they have all the needed resources to continue to be a sustainable community. RUBA also provided assistance to the city in reapplying for the Provisional Certificate of Public Convenience and Necessity. In April 2009, the Regulatory Commission of Alaska (RCA) sent the City of Larsen Bay a letter requesting follow up information to an application for Provisional Certificate of Public Convenience and Necessity that RUBA staff had assisted in compiling in 2006. Due to high turnover within the city, the follow up information was never returned to RCA. The city staff has since stabilized and has once again requested RUBA assistance in completing the application. RCA required a new application as the timeline had expired for the first application. RUBA staff transferred and updated the information from the first application onto the new application as well as supplied all back up documentation. The application was then sent to the city for review and signature. -59- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. ® The utility has adopted a balanced realistic budget. 4) Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. XK The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. x YTD expenditures are at a level equal to or below those budgeted. Xx A monthly manager’s report is prepared. XX Budget amendments are completed and adopted as necessary. Finances Comments: — The City of Larsen Bay drafted and adopted a FY10 budget with RUBA assistance. RUBA staff trained the city clerk and billing clerk in preparing the proper financial reports which are submitted to the council monthly. The interfacility bills are being paid on a quarterly basis to allow accurate tracking of all expenses. In the fall of 2009, the City of Larsen Bay placed a large fuel order. The fuel arrived in November and will be an adequate supply for the remainder of the winter. Although water and wastewater revenues are not sufficient to cover operating expenses, the city subsidizes its water and wastewater utility service through the electric sales. This subsidy is listed as a line item on the budget. Manager/operator reports are given verbally when requested from the council; however the operator has daily contact with the mayor and/or city clerk. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. & 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 X A cash receipt system is in place that records incoming money and what it was for. &X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & 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. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 60 - October — November — December 2009 2"! Quarter FY10 - RUBA Report Accounting Comments: The city has an adopted collection policy and has been actively and consistently enforcing it. The city utilizes QuickBooks for accounts receivable, accounts payable and payroll. The QuickBooks system is set up properly and has been a tool in the past to reliably keep the city's finances in order. Currently bills are going out on a regular basis by the Sth of every month in accordance with the city's billing and collection policy. Monthly bank reconciliations are completed for each bank account then printed and filed for historical data. The city's purchasing system requires prior approval from the mayor or city clerk, dependant on the purchase amount. Once approval has been given, a purchase order is issued. Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. RX The utility is current on filing tax reports. Xl The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city uses the QuickBooks accounting program to accurately track, calculate and report payroll tax liabilities. Liabilities are submitted monthly and the quarterly reports are completed and mailed to the IRS on time. The city has not received any non-compliance notices from the IRS or DOL. Personnel System Essential Indicators Yes No a} The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. kX kX RX RW -61- October — November — December 2009 2" Quarter FY10 - RUBA Report Personnel System Comments: The City of Larsen Bay has a posted workers' compensation insurance policy in effect from 7/1/09 to 7/1/10 with AMLJIA. On December 9, 2008, the city council adopted a personnel policy. The city has contacted AMLJIA to request a review of the personnel policy. RUBA staff will also review the personnel policy and make recommendations. The city's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. Interested applicants apply at the city office. There is currently no probationary period for employees. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. 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 HXNNHRX XK) The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. kK The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Larsen Bay is known as the entity that owns and operates the utility, and is active in policy making for the utility. The city clerk, with city council backing, has been actively enforcing utility policy. The clerk has attended a QuickBooks training class sponsored by the RUBA program and the current utility operator is trained and has passed the Provisional Level 1 test. The city and billing clerks attended a RUBA class for rural clerks held September 14-18, 2009 in Kodiak. -62- October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® 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. ® Utility facilities have not suffered any major problems/otitages due to management issues that are still unresolved. XX] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. &X The utility maintains an inventory control list. XX The utility maintains a critical spare parts list. hkw Operation of Utility Comments: In speaking with the Remote Maintenance Worker, Steve Evavold of Village Safe Water, there is a preventative maintenance plan for the existing system. The City of Larsen Bay is currently taking part in AMLJIA monthly safety meetings. The current utility operator is trained and can run the system and has passed the Provisional Level 1 test. Historically, the utility operator reports to the Mayor, Vice- Mayor or City Clerk when there is a problem or he can foresee one. The utility is not able to operate at the level of service that was proposed due to the inability to backwash the rapid sand filter and the Solo- valve being deemed a cross connection by 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. 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. October — November — December 2009 2" Quarter FY10 - RUBA Report ee A Report Mekoryuk Activity Report Community Overview Lead RUBA Staff: Susan Charles, Bethel Regional Office 2007 Population: 208 Region: Lower Kuskokwim Local Government: 2" Class City ed The City of Mekoryuk manages the water and sewer utility. Individual flush tank and haul systems are in 96 homes and 11 commercial/public facilities. There is a water treatment and storage system, 9,000,000 gallon lined reservoir, water treatment plant, and a 125,000 gallon water storage tank, a washeteria with laundry facilities, public showers and a 4.2 acre sewage lagoon. The Lower Kuskokwim School District has its own well but uses the city's sewage lagoon. RUBA Activity This Reporting Period On December 1, 2009, Anchorage and Bethel staff traveled to Mekoryuk to conduct a RUBA management assessment at the request of the city administrator. A Memorandum of Agreement between the city and the tribe was recently terminated and management of the utility services was resumed by the city. The administrator was interested in assessing the city's management capacity now that the city and tribe no longer share administrative duties. Upon arrival in Mekoryuk, RUBA was met by the city administrator, city clerk, and a city council Member. A list of items needed to document RUBA compliance had been previously faxed to the city and nearly all items were provided prior to the visit. The administrator was current on providing financial and managerial reports through the last quarter. Related items discussed during the visit included the wastewater service agreement between the Lower Kuskokwim School District and the City of Mekoryuk. The school maintains its own water well and uses the city's wastewater system. The agreement reached between the two entities was to charge a flat rate rather than metered rate. The use of a meter was left open for future consideration. Community Revenue Sharing and Payment in Lieu of Taxes were discussed and an amended FY 10 budget was provided that included the newly received revenues. The administrator questioned the collections process and asked how other communities were handling collections. Also discussed was ordinances, election of officers by the council, and a personnel policy. ' a wm 1 October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes Xk Rw = 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. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &X X w 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 of Mekoryuk passed an amended FY10 budget and has been consistent in providing monthly financial reports. The monthly financial reports show the budget, month and year-to-date, and remaining balance figures. The city provided Alaska Village Electric Cooperative (AVEC) statements that provided the documentation that they are current with payments for all utilities and city owned facilities. The city has line items in the budget for maintenance and equipment for the existing washeteria and has budgeted for equipment parts for sewage and water tanks. Line items also include repair and replacement costs. The manager's reports are provided at monthly meetings. Accounting Systems Essential Indicators Yes XERRR WN 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. Ss i WH stainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 66- October — November — December 2009 2" Quarter FY10 - RUBA Report Accounting Comments: The city keeps records in the computer as soon as a financial transaction is complete. They use Windows XP and QuickBooks Pro 05. They also record receipts. When cash is received, the customer receives a receipt and it is recorded. Purchases are first checked to see if sufficient funds are available. If the request is approved, a check is cut and the invoice and check stub are stapled together and filed. Tax Problems Essential Indicators Yes No The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. XI 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. kw X Tax Problems Comments: The Taxpayer Advocate deemed the City of Mekoryuk compliant with filing reports and making deposits, but reported that form 941 was delinquent for June 2009. This was brought to the attention of the city administrator and he states that the 941 was filed October 25, 2009. On January 11, 2010, the Bethel office received verification that the 941 for the quarter in question was filed and deposited. The State of Alaska, Department of Labor-ESC tax reported the city is in compliance and have a credit balance with the state. Personnel System Essential Indicators - Yes No _& The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. 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 kX Wk MX x Personnel System Comments: Worker's compensation insurance through Liberty Northwest Insurance Company is current through November 22, 2010. Job descriptions were provided for the city personnel. The personnel policies are used to manage employee issues. A vacancy is advertised for 15 days locally when one is open. Hiring’s and promotions are based on merit and ability. All personnel folders contain I-9's, job applications and letter of acceptance. There is a 90-day probationary period for new hires. The Personnel Policy has been reviewed and is being revised. -67- October — November — December 2009 2" Quarter FY10 - 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). | a The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators WXRRXRNN ® The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Mekoryuk has hired the IRA Council's previous executive director to be the city s full-time administrator. The bookkeeper/city clerk position is currently open and is being temporarily staffed. The water plant operator has a Level I certificate in Water Distribution and Treatment, and is Operator in Training certified in Wastewater and Wastewater Treatment. He has also received training in electrical workshop and boiler maintenance. The alternate plant operator has an OIT certificate in Water Distribution and a Level 1 Certificate in Water Treatment. The city is active in the policy making of the utility. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. Xl The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. KX] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). I] 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. WHOkRW Operation of Utility Comments: The utility operators have certification for Water Distribution. Water maintenance plan for existing water and sewer facilities was provided. The water operators report to the city administrator on daily facilities operations. The city provided the most recent Consumer Confidence Report. The Mekoryuk Washeteria is on the SNC list for Stage 1 last violation 12/08 reported lack of annual monitoring for - 68 - October — November — December 2009 2" Quarter FY10 - RUBA Report TTHM/HAAS.7 of 12 months towards Stage 1 RTC by December 2009 with a 12 month violation-free monitoring for DS CI residual levels and collection of annual TTHM/HAAS in 2009. No actual written list. RUBA Activities For The Coming Quarter RUBA staff will continue providing technical assistance when requested and keep records current. - 69 - October — November — December 2009 2" Quarter FY10 - RUBA Report Pp. Napaskiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Regional Office 2007 Population: 434 Region: Yukon- Kuskokwim Delta Local Government: 2" Class City od « Flush/haul services are available to some households. Vee, ot OP Other residents haul treated water from one of two watering points. There are occasional water shortages when residents must haul water from ponds, the river, or collect rainwater. Some homes have tanks with running water for the kitchen, but very few have complete plumbing. Honey buckets are disposed of by residents in bunkers at various locations. Sewage is then pumped from the bunkers and transported to the sewage lagoon. The school has its own well, but needs a new water treatment system. RUBA Activity This Reporting Period The City of Napaskiak took over management of the utilities from the tribe. They have completed the transfer of the accounting records and the process for the approval of the utility ordinance. A copy of their 2010 budget has been submitted to the Bethel regional office. The City of Napaskiak has met all RUBA essential management indicators for the second quarter of 2010. -71- October — November — December 2009 2"4 Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No | All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. ® Monthly financial reports are prepared and submitted to the policy making body. X 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. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &®) The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. ® YTD revenues are at a level equal to or above those budgeted. &X 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: The budget for fiscal year 2010 has been submitted to the Bethel regional office. The utility budget is balanced when subsidized from pull-tab and bingo income. Estimated FY10 pull-tab/bingo income is more than adequate to cover the estimated subsidized needs of the utility. The FY10 pull-tab/bingo estimated income was based on FY09 actual income. The last financial statement submitted to the Bethel regional office was for the month ending November, 2009. The utility is current in paying all water/wastewater electric bills. The village corporation purchases bulk fuel for the community. The city submitted a payment receipt for their last purchase from the village corporation for fuel which was purchased on 7/23/09. With the Bingo subsidy, the utility receives revenues sufficient to cover operating expenses. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. &X An accounts receivable system is in place which track customers and reports past due accounts and amounts. x An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. a} The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -72- October — November — December 2009 2" Quarter FY10 - RUBA Report —————— eee Accounting Comments: The utility ordinance has been approved by the city council and submitted to the Bethel regional office. The accounting system for utility customers has been set up. Customers are being billed, records are maintained and payroll is being processed. The city has general, gaming and utility accounts in two different banks and both accounts are reconciled each month to monitor available cash. The city submitted a chart of accounts and a copy of the purchase order for purchase approvals. Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. Kl 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 IRS reported that the City of Napaskiak has no outstanding lien and their tax deposits and reports are up to date. Alaska Department of Labor and Workforce Development has reported that the City of Napaskiak has complied with employment security reports but several of the reports are out of balance and that they may have an outstanding amount due after the quarters are balanced. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &X The utility has adequate written job descriptions for all positions. & The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. ® [] The utility has an adequate written hiring process. & x Xl The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of Napaskiak has worker's compensation insurance coverage with Alaska Municipal League through 7/1/2010. A personnel policy has been submitted to the Bethel regional office. The personnel policy contains a probationary period for new employees and performance evaluation procedures which are being followed. Job descriptions for the electric utility manager, clerk, plant operator, haul system operator and utility board advisory chairman have been submitted. Personnel files contain I-9s and job descriptions are up to date. Training opportunities are provided to employees when there is available funding. October — November — December 2009 2"4 Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes No X) The entity that owns the utility is known and the entity that will operate the utility is set. XK) The policy making body is active in policy making of the utility. 4} The policy making body enforces utility policy. & X X The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). XK The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XK] The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city recently took over the operation of the utility from the local tribe. The process to approve the utility ordinance has been completed. The manager and bookkeeper are adequately trained and experienced with their respective job duties. The operator was transferred from the tribe to the city and has worked in that capacity for three years. The city has no approved organizational chart; however, the utility manager is in the process of developing an organizational chart for council consideration. The city council meets regularly each month and complies with the Open Meetings Act. Operation of Utility Essential Indicators Yes No X 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 bX] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XRee Operation of Utility Comments: The utility worker submitted a Regulatory Commission of Alaska certificate for Provisional Water Distribution with an expiration date of 12/31/10 and preventative maintenance logs for the water treatment system. A copy of the operation and maintenance manual is in the Bethel regional office file. The utility supervisor has yet to meet with the utility worker and report back to the full council on utility management issues. A safety manual has not been submitted to the Bethel regional office but Napaskiak does hold safety meetings with the Alaska Municipal League Joint Insurance Association. Napaskiak is not on the Significant Non-Complier list. A copy of their Consumer Confidence Report -74- October — November — December 2009 2"! Quarter FY10 - RUBA Report ——— —— — ww a po for 2008 is on file in the Bethel regional office. Napaskiak did not submit an inventory control list and spare parts list. RUBA Activities For The Coming Quarter The City of Napaskiak currently meets all the essential capacity indicators for 2010 second quarter. RUBA staff will continue to work with the City of Napaskiak staff on sustainable indicators. 1 ~ wm ' October — November — December 2009 2" Quarter FY10 - RUBA Report Nelson Lagoon Activity Report Community Overview Lead RUBA Staff: Julie Dirks, Anchorage Office 2007 Population: 69 Region: Aleutians Local Government: Traditional Council ed Water is derived from a lake about 10 miles from Nelson Mea Lagoon and is treated. Water storage capacity is 850,000 gallons. All homes are connected to the piped water system. Individual septic systems enable households to have complete plumbing. A new washeteria was completed in August 1999. The water system needs major improvements, including repair of the distribution system, replacement of about 3 miles of distribution line, and a new storage tank. There are no garbage collection services, but a landfill is available. Construction on water intake and a pump house is due to begin construction in 2010. RUBA Activity This Reporting Period Anchorage RUBA staff traveled to Nelson Lagoon on October 27-30, 2009 at the request of Justine Gunderson, Administrator of the Nelson Lagoon Village Council. The purpose of the trip was to conduct a RUBA management assessment and provide on-site training. Documentation received from village council staff does not support essential indicator requirements at this time. On December 4, 2009 the final report was released and distributed and a work plan will be drafted to provide assistance in meeting noted deficient indicators. RUBA staff prepared an organizational chart, draft utility budget, and draft utility ordinance for the Nelson Lagoon Village Council to consider. Example personnel policies, job descriptions, preventative maintenance plan, and a template for compiling a spare parts inventory was provided to the administrator. Additional indicators will be addressed as soon as possible. No response from the village council was received regarding the assessment or additional information provided as of the end of the quarter. RUBA staff will continue to contact Nelson Lagoon and offer assistance as their funded project will not continue without input from council staff. -77- October — November — December 2009 2" Quarter FY10 - 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. XX] 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. Finances Comments: The Nelson Lagoon Village Council has included the water utility with the Nelson Lagoon Electrical Co-op. No budgets are prepared or approved by the village council for the water utility. A set of books for the co-op are maintained separate from the village council operations. Revenue and expenses for the water utility are tracked separately from those of the electric utility within the utility accounting system. A profit and loss statement by class indicates that as of October 28, 2009 the water utility had revenue in the amount of $2,100 and expenses totaling $42,797.33. Because of the low revenue that was posted, it may be that water utility revenue is not being classified correctly when cash receipts are recorded in the accounting system. From the information provided, it cannot be determined whether the utility is bringing in enough money to cover operating expenses for the water utility. The majority of the expenses are for wages and payroll taxes. There is no indication of where the money to cover the excess expenses was derived. Fuel is delivered to the village annually. Sales and distribution are managed by the Nelson Lagoon Corporation. The administrator reported that they have difficulty making payments to the Corporation for fuel purchased to support the water utility. -78- October — November — December 2009 2"! Quarter FY10 - RUBA Report Accounting Systems Essential Indicators Yes No XX The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. Xl An accounts receivable system is in place which track customers and reports past due accounts and amounts. & Anaccounts payable system is in place. XX] The payroll system correctly calculates payroll and keeps records &X A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. KX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. X J Accounting Comments: The village council collects payments for water through a pre-paid metering system that was installed for use by the electric utility. There are no account receivables for the water utility since no bills are required to be issued. Customers purchase cards from the utility. The amount of the card is scanned to the customer's meter. The water utility charges a flat $99 per month for water service. Each day the pre- pay meter will deduct $3.30 for water service from the customer's balance. The system rates are set through system software by the utility and the customers’ meters are reset whenever there is a change through the scanning of a 'penny' card. QuickBooks is used to perform accounting for the Nelson Lagoon Village Council. The village council has several sets of books or data files set up for various functions of the council. Only the financial reports for the electrical co-op were provided. The reports _ provided indicate that the electrical co-op revenue and expenses are tracked separately from the water utility. However, the low amount of posted revenue for the period January through October may be an indication that revenue is not being correctly classified to the water utility when cash receipts are posted to the accounting system. The balance sheet shows that utility assets, liabilities, and equities are combined for both utilities. There is no formal written purchasing policy. Annual orders and repairs are all authorized and approved by the administrator. The village council operates on a calendar fiscal year with the new fiscal year to begin January 1, 2010. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. X The utility is current on making tax deposits. x) If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: IRS 941 quarterly reports indicate that payroll tax deposits are made and no payments are required with the reports. On November 16, 2009 the Alaska Department of Labor reported that the Nelson Lagoon Village Council had filed all quarterly ESC reports through September 30, 2009 and had a very small credit balance on account. On November 17, 2009 the Internal Revenue Services reports that the Nelson -79- October — November — December 2009 2" Quarter FY10 - RUBA Report Lagoon Village Council is in compliance with federal employment tax filings and deposits. There are no tax liens against the village council. Personnel System Essential Indicators Yes No Kl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XJ = The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Sree 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 XR Ww Personnel System Comments: The administrator reports that workers compensation coverage through Pippel is current from 11/1/09 through 11/1/10. However, no documentation of coverage was provided or made available at the time the assessment was completed. The village council has not adopted personnel policies or approved job descriptions for employees. Some positions have specific requirements and certifications which are considered when hiring employees. Training for utility staff is provided as opportunities and funding is 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. XK] 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). KX] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &] The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. & The utility complies with the open meeting act for all meetings. Xwe -80- October — November — December 2009 2" Quarter FY10 - RUBA Report ——[—— i ' eC§ wa Wk Per Organizational Management Comments: The Nelson Lagoon Village Council is a traditional tribal council. No elections are held for seats on the council. Members are appointed by the remaining members until they resign or are otherwise unavailable to serve as council members. The village council meets as there is a need to meet. All council operations are managed by the administrator who has 30 plus years of experience managing the organization. Bookkeeping is performed by a bookkeeper with a certified public accounting firm based in Anchorage and is available as a backup for the local bookkeeper. The present bookkeeper has held the position for five years. The village council has not adopted utility regulations to give it authority to operate the water utility. Meeting minutes that document activity of the policy making body were not provided. Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. XX 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. 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 Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. &X The utility maintains a critical spare parts list. KX XK Operation of Utility Comments: A trained primary and backup operator are employed by the village council. The primary operator has held the position for three plus years. The primary operator holds certification at the Water Distribution P level until 12/31/09. The administrator reports that the water operator provides her with regular verbal reports. It is not known whether the village council receives a report on the status of the water system. The Nelson Lagoon water utility appears on the August, 2009 Significant Non-Compliance (SNC) list with a Stage 1 distribution chlorine reporting violation. A preventative maintenance plan for the existing water treatment system has not been adopted. RUBA Activities For The Coming Quarter RUBA staff will follow-up to see if any of recommendations have been implemented. maintain regular contact with community, and provide technical assistance as requested. -81- October — November — December 2009 2" Quarter FY10 - RUBA Report —[—— ee A Report Nunapitchuk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 545 Region: Lower Kuskokwim Local Government: 2" Class City ed The City of Nunapitchuk operates the washeteria, water treatment plant, garbage collection, landfill/lagoon, and the flush haul system for the community. The utility services provide water deliveries and septic haul-out to residential customers connected to the flush haul system. Those not connected to the flush haul, utilize the container haul system. Sewage containers are emptied into one of two sewage lagoons (one on each side of the River). The city provides piped water to the school. Teacher's housing, located in the old school, has an independent water and sewer system that still needs improvements. Plans are underway for a piped watering point for the other half of the community located on the other side of the river, and close and fill in old sewage bunkers and lagoon. RUBA Activity This Reporting Period On December 16, 2009, Bethel RUBA staff traveled to Nunapitchuk and met with the new city clerk to review the RUBA management assessment. The clerk was hired on November 24, 2009 by the city of Nunapitchuk. Previously he worked as a store manager for the Nunapitchuk Limited Corporation for six years. He worked his way up from being an assistant accountant to the manager's position. He is well experienced and confident in his present position. He already made some changes in the administrative and finance department and plans to computerize everything. Currently, the city has a manual accounting system, payroll, and billing system. He provided a current finance report and provided documentation that all payroll reporting criteria is met. The clerk is getting comfortable in his new position and says there are similarities in both this and his previous management position. October — November — December 2009 2“ Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. ® The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses 5 Sustainable Indicators x 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. HR Finances Comments: A balanced copy of the 2010 budget is on file and the finance reports are current to November 2009. Electric bills were paid in full. An adequate supply of fuel was bought last fall to last until next spring barge for the water and sewer system. The water and sewer is subsidized approximately forty percent by gaming receipts. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. : Xl An accounts payable system is in place. x The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. & 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. x Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Billings are done manually on a monthly basis and the collection policy is enforced by the city council. The water and wastewater department has its own utility clerk to do billings and collections. The city bookkeeper is responsible for all city accounting processes. In 1995 the city adopted a water and wastewater ordinance which contains a collection policy and it is enforced by the city council. -~84- October — November — December 2009 2" Quarter FY10 - RUBA Report —[——$= —— ——— —— ——— —_&uuttttttii Cv” veporE 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. ® 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: Both the Internal Revenue Service and the Alaska Department of Labor confirmed compliance with tax filing deposits and reports. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XK) The utility provides training opportunities to staff as needed and available. &X wk ww Personnel System Comments: Nunapitchuk is insured through Alaska Municipal League/Joint Insurance Association to July 2010. All of the personnel policies are in place and enforced by the city council. The utility provides training opportunities as opportunities and revenues are 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 X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. WHKReReR -8 a October — November — December 2009 2 Quarter FY10 - RUBA Report Organizational Management Comments: The new city clerk was hired in November 2009, but he has six years experience in administration and finance as a store manager for the Nunapitchuk Limited Corporation. The city clerk is the main manager of services and personnel for the city. The city's bookkeeper is experienced and competent and takes care of all the accounting needs of the utility. The utility clerk's responsibilities include the operation and maintenance of the water treatment plant and water and sewer haul system. The main water operator is certified at level 1 as required. The policy making body is very proactive in the operation and maintenance of the utility services. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. ® Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). KK 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. Rw Operation of Utility Comments: The utility operator is certified at level 1 as required by DEC and has years of experience. The alternate operator needs to get her certificate. RUBA Activities For The Coming Quarter Get bookkeeper in QuickBooks Pro training. - 86 - October — November — December 2009 2" Quarter FY10 - RUBA Report Oscarville Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 95 Region: Lower Kuskokwim Local Governments: Traditional Council Treated well water is hauled from the washeteria. A few homes have individual systems that collect and use rainwater. About one-fourth of homes have running water to the kitchen, but no homes have complete plumbing. The school has its own well and sewage lagoon. Honey buckets are disposed of by residents in the sewage lagoon. An electrical transmission line from Bethel supplies power. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Oscarville in November to complete a RUBA management assessment. The assessment is the first step in gaining funding for planning and constructing sanitation services. Upon arrival in the community, RUBA worked with administration and financial staff of the Oscarville Traditional Council. Currently the Oscarville Traditional Council does not provide any utility services. The administration and finance staff are hired by Alaska Village Council Presidents (AVCP) and are paid by them. The employees are covered under the AVCP worker's compensation insurance and follow the AVCP personnel policies. A water treatment plant was built in the early 1980's but was closed in 2007. A water/wastewater feasibility study was funded and completed by the Alaska Native Tribal Health Consortium. The assessment was completed using information gathered from management practices within the community. It is difficult to assess management where no direct utility services are currently provided. Some indicators do no not apply or easily transfer to fit the criteria required. Oscarville Traditional Council is fortunate to have the support of AVCP. -87- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No {All revenue and expenses for the utility are listed in the utility budget. KI The utility has adopted a balanced realistic budget. Xl 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. XK) 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. XRR Finances Comments: The OTC does not have any type of utility services so the budget does not include a utility department. There are no outstanding utility electric bills nor fuel needs or operating expenses. OTC had compacted with AVCP and the Tribal Priority Allocation FY09 budget. AVCP related finance reports through September 2009 were provided. Budget based finance reports are given quarterly to AVCP and OTC. Separate FY09 and FY10 State Community Revenue Sharing budgets were completed and adopted and on file. The FY09 budgeted items have no recorded expenditures to date. Administrative and finance staff were hired in June 2009 and paid directly from AVCP. The washeteria/water treatment plant closed in 2007. The administrator provides oral reports during OTC meetings and the report is recorded in the minutes. Accounting Systems Essential Indicators Yes No XK] The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. KX] 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. Xx The utility has a cash disbursement system that records how money was spent. Sustainable Indicators &] 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. Xx - 88 - October — November — December 2009 2 Quarter FY10 - RUBA Report Accounting Systems Comments: OTC accounting is processed using QuickBooks Pro. There are no collections or any other policies dealing with utility services because none of these services were charged or billed previously. The OTC currently does not provide any type of utility services. OTC uses the AVCP purchasing system. Tax Problems Essential Indicators Yes No XX] The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX] The utility is current on filing tax reports. XX] The utility is current on making tax deposits. &] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Oscarville Tribal Council is noted in the November-December 2009 Lien Watch report for Alaska Employment Security Tax issues. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. 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. -B kX we ww X Personnel System Comments: Because all OTC staff were hired and are paid by AVCP, the OTC staff are insured through the AVCP insurance coverage. The probationary period begins at the time of employment and is effective for ninety calendar days. The OTC uses AVCP personnel policies. -89- October — November — December 2009 2" Quarter FY10 - 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. The policy making body is active in policy making of the utility. KI The policy making body enforces utility policy. KK] The utility has an adequately trained manager. XX The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: The washeteria/water plant was closed in 2007 and OTC does not operate any type of utility service at this time. There are no policies related to utility services now or in the past. OTC was inactive from 2006 to May 2009. The administrative and finance staff were hired by AVCP in June 2009 and received AVCP training. The administrator needs to attend a RUBA utility management training class and the bookkeeper needs additional training in accounting and QuickBooks Pro. There is no utility operator at this time, however previously the washeteria/wastewater treatment plant had certified operators. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. XK] 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 on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X XXReKeRR Ww Operation of Utility Comments: OTC recently sent two people for water operator training to become certified. Both people failed the test. OTC is planning to send in a couple more to the same training/certification program. Currently there is no water treatment plant or utility service provided. -90- October — November — December 2009 2" Quarter FY10 - RUBA Report Ve RUBA Activities For The Coming Quarter RUBA will provide assistance if requested and monitor the essentials noted as deficient. -91- October — November — December 2009 2" Quarter FY10 - RUBA Report —[$—[— — — ——— ———— CU eseepore Port Heiden Activity Report Community Overview Lead RUBA Staff: Barbara Higgins, Dillingham Regional Office 2007 Population: 87 Region: Alaska Peninsula Local Governments: 2" Class City ed Individual wells and septic tank systems are used by most homes in Port Heiden. The school operates its own well and treatment system. Of 37 occupied households, 31 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 recent VSW project replaced septic tanks, and a new septic pumper truck was purchased and is operated by the tribal council, replacing the service previously offered by the city. Another VSW grant will provide funds to construct a washeteria. RUBA Activity This Reporting Period The city applied for and received a Bulk Fuel Bridge Loan. The fuel will be used for electrical generation, heating buildings, heavy equipment, and retail sales to residents. The city has applied for and received loans from the Bridge Fuel Loan program for the past four years. The city successfully conducted and certified the 2009 elections. RUBA staff assisted the city with Power Cost Equalization (PCE) reporting, elections and connecting the city to RUBA's QuickBooks contractors for assistance in resolving payroll issues. RUBA offered a seat in the QuickBooks class scheduled for Dillingham this quarter, however representatives from Port Heiden were not available to attend. The tribe is working with Village Safe Water to secure funding for construction of a washeteria, treated watering point, and some type of system to reclaim/regenerate water filtering systems. The tribe has decided to operate the new facility instead of signing a memorandum of agreement for the city to operate. The city is unable to meet all essential criteria in the RUBA management assessment and cannot apply for sanitation projects at this time. RUBA will continue to make quarterly trips to Port Heiden to provide management training and assistance to both the city and tribal staff. October — November — December 2009 2" Quarter FY10 - 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. KK] 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. 1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses . Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. J Budget amendments are completed and adopted as necessary. Finances Comments: RUBA has no recent information on the city's finances. RUBA made several requests for information but nothing has been received. QuickBooks Pro is presently used for most accounting functions. A new data file and chart of accounts has been set up to be used beginning with the fiscal year beginning July 1, 2009. The approved operating budget will also be entered into QuickBooks. Some bookkeeping training was also provided during the most recent site visit. Accounting Systems Essential Indicators Yes No KK] 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. 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. WHkXR Wh & -94- October — November — December 2009 2" Quarter FY10 - RUBA Report Accounting System Comments: There is no collection policy included in the Code of Ordinances supplied to RUBA staff. Charges for electric and landfill are paid using the PowerStat system, which requires payment in advance, and is an effective way of ensuring collections. There is a similar debit card system for gasoline. Customers pay at the time of purchase for heating oil and septic pump-outs or are billed at the end of each month. City staff was unaware of a written purchasing policy. All accounting is recorded in QuickBooks 2009 that is installed on a single computer. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. KX] The utility is current on filing tax reports. XJ The utility is current on making tax deposits. XX If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: On December 18, 2009 the Alaska Department of Labor confirmed the city is meeting Alaska ESC tax obligations for the quarter ending September 30, 2009. The City of Port Heiden has a recorded lien for Default Judgment in the amount of $89,582. RUBA will offer assistance in requesting a repayment agreement to release this lien. Personnel System Essential Indicators Yes No &) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. 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. XX] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XX] The utility provides training opportunities to staff as needed and available. Xi XI Personnel System Comments: Current workers' compensation insurance coverage is provided through Alaska Municipal League Joint Insurance Association and was in effect on 01/04/2010 as verified on the Division of Worker's Compensation website. 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 also provides for annual evaluations, however city staff was unable to provide any examples. Folders for each employee are kept with W-4's, I-9's and pay records. City personnel are offered training opportunities as finances allow. The Remote Maintenance Worker and RUBA staff provide onsite training regularly. -~95- October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes No J The entity that owns the utility is known and the entity that will operate the utility is set. | The policy making body is active in policy making of the utility. &® The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &] The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. & The utility complies with the open meeting act for all meetings. RRR Organizational Management Comments: The City of Port Heiden owns and operates the community's utilities, however, their Code of Ordinances has no utility ordinance to authorize or set out guidelines for management of the utilities. RUBA has no current information on the city's organizational management. Operation of Utility Essential Indicators Yes No The utility operator(s) are actively working towards necessary certification. &l 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. XK] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). &] The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. &) The utility maintains a critical spare parts list. Operation of Utility Comments: The utilities and services offered by the City of Port Heiden do not require certification of its operators, however preventative maintenance plans should be created and implemented. Similarly, 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. - 96 - October — November — December 2009 2" Quarter FY10 - RUBA Report a ——————— OOOO es Report RUBA Activities For The Coming Quarter Port Heiden has a work plan in place. Assistance will be provided to the city clerk as requested in performing his duties and completing the work plan. Indicators on the RUBA Assessment regarding budgets and monthly financial reports will remain no until such time as the utility provides RUBA with the current budget and a monthly financial report. If deemed to be sufficient and realistic and the indicators are satisfied the no will tum to yes. -97- October — November — December 2009 2" Quarter FY10 - RUBA Report - 98 - October — November — December 2009 2" Quarter FY10 - RUBA Report Scammon Bay Activity Report Community Overview Lead RUBA Staff: Susan Charles, Bethel Regional Office 2007 Population: 517 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City, ad The city operates the piped water and sewer system. “Ae Water is derived from an infiltration gallery located on a Fe ot AP small stream south of the city. The existing water system has been in place for about 30 years. The city serves a total of 62 residents and 9 commercial buildings. Six newly constructed homes have not been connected to the piped water and sewer system. The city has been able to maintain the system successfully; however, due to the design and age, it has had many problems. A boil water notice has been in effect since 2007. The city is treating the water with chlorine but does not filter the water because there is no filtration system. The utilities water storage tank pump is not working, and residents experience loss of water in the winter due to freezing of the distribution lines. The city does not have a washeteria. The city council is the policy making body for the utility. RUBA Activity This Quarter Bethel RUBA staff offered assistance to meet the deficient management indicators. Scammon Bay recently hired Niles Aguchak as the city administrator. He contacted Bethel RUBA staff and requested an explanation and status report of RUBA assistance available. A copy of the Consumer Confidence Report (CCR) and water quality report was filed with DEC and provided to RUBA staff. A tentative date to complete a new assessment was set for January 27, 2010. A list of all required documentation was provided to the city administrator. RUBA staff also addressed some issues raised regarding recent elections and ordinances. The city has contracted with Alaska Rural Utility Collaborative (ARUC) billing program. This is a management service that will generate and track customer utility bills. -~99- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX All revenue and expenses for the utility are listed in the utility budget. XX] The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. KX] 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. XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XX YTD revenues are at a level equal to or above those budgeted. XX] YTD expenditures are at a level equal to or below those budgeted. XX A monthly manager’s report is prepared. XX Budget amendments are completed and adopted as necessary. Finances Comments: The City of Scammon Bay operates on a state fiscal year. A copy of the FY10 budget and monthly financial reports have been requested. The city ordered and received 9,500 gallons of fuel. They indicated that they need new storage tanks. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. &X The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. & 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. X Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: City of Scammon Bay entered into an agreement with ARUC effective August 10, 2009 to take care of their utility billings. - 100 - October — November — December 2009 2" Quarter FY10 - RUBA Report Tax Problems Essential Indicators Yes No ® 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. ® If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: As of 10/16/09, the IRS reports Scammon Bay is in compliance with filing and deposit requirements and there are no tax liens. They are also deemed in compliance with the State of Alaska, Department of Employment tax reports. Personnel System Essential Indicators Yes No &) 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. The utility provides training opportunities to staff as needed and available. &% wk ww x Personnel System Comments: The city water operators recently received water operators training through Yukon Kuskokwim Health Corporation Office of Environmental Health in Bethel. The city has a new city administrator. A new water operator was hired who has 14 years of water operator experience. He is working on his certification. - 101 - October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. RX The policy making body is active in policy making of the utility. QR The policy making body enforces utility policy. I The utility has an adequately trained manager. XX The utility has an adequately trained bookkeeper. X 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 XX The utility has adopted an organizational chart that reflects the current structure. Xi The policy making body meets as required. QR The utility complies with the open meeting act for all meetings. Organizational Management Comments: Documentation has been requested for deficient indicators. There is a new council and new city administrator. Operation of Utility Essential Indicators Yes No 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 The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X& kX & KRXRRN Operation of Utility Comments: The utility's water system is on the significant non-compliance list because the system does not have filtration equipment to comply with safe water regulations. ANTHC is working with the system to address this issue, but completion of the project is still 1-2 years out. The utility needs a certified operator at the level the water treatment plant is classified. Documentation has been requested for all deficient indicators. RUBA Activities For The Coming Quarter Provide on-site RUBA management assessment and assist with indicators that are not being met on request. October — November — December 2009 2" Quarter FY10 - RUBA Report Selawik Activity Report Community Overview Lead RUBA Staff: Margaret Hansen, Kotzebue Regional Office 2007 Population: 828 Region: Northwest Arctic Local Governments: 2" Class City, ad The community has piped water and sewer throughout “he the entire community; 96% of the homes are full Pty AP y; 96% re fully plumbed. Water plant upgrades and the river pump system are being evaluated now for possible future projects. DEC has been in Selawik to do a comprehensive evaluation of the water quality, which will be helpful in determining what changes need to be implemented. The city signed an agreement with the Alaska Rural Utilities Collaborative (ARUC). ARUC took over in July and fixed 95% of the glycol leaks. 8100 gallons of fuel has been delivered leaving the water/sewer system with about 30,000 gallons of fuel on hand which is 5,000 more gallons that should be needed. The waste heat system is also operating again. RUBA Activity This Quarter RUBA staff contacted the city for an updated financial monthly report, a payment plan for Alaska Village Electric Cooperative (AVCP) and a copy of workers compensation coverage. RUBA staff also provided technical assistance to the city on their regular election. RUBA advised the utility staff to attend the Employment Tax Workshop in Kotzebue and the bookkeeper did attend with successful participation. - 103 - October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX All revenue and expenses for the utility are listed in the utility budget. XK] The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. XX] 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. KX] 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. XX YTD expenditures are at a level equal to or below those budgeted. XA monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The city adopted a balanced realistic budget listing revenues and expenses for the utility. These revenues will be used to pay utility Alaska Village Electric Cooperative (AVEC) past debt since Alaska Rural Utility Collaborative (ARUC) has taken over the operations of the utility. ARUC's collection for the first month was low but they have received and paid for their fuel for the winter. Monthly financial reports are submitted to the council for review with the written administrator's report. Budget amendments are completed as needed. Because of glycol leaks this last winter and freezing of mains, the city exhausted all their funds to keep the system from failing so do not have any funds for repair and replacement. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. &X An accounts receivable system is in place which track customers and reports past due accounts and amounts. QR An accounts payable system is in place. X 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 A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. XX The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 104 - October — November — December 2009 2" Quarter FY10 - RUBA Report Accounting Comments: Although the utility utilizes QuickBooks for their budget and as their chart of accounts which track customers receivables, payables, payroll, cash receipts and cash disbursements how money was received and spent, they did not follow their policies for disconnection trying to save their water/sewer system. Now that ARUC has taken over, they will follow the policy as adopted by the council. Monthly bank reconciliations were completed and monthly reports were completed but since they had to save their water/sewer system, purchasing went out of control. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. &X The utility is current on filing tax reports. ® 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 tracks their payroll tax liabilities and they are current in filing tax reports. Due to cash flow problems they have been unable to keep current in making tax deposits and are on a repayment agreement. Now that ARUC has taken over all the utility accounting, they are current in making tax deposits and have no past liability. Personnel System Essential Indicators Yes No x] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. Q The utility provides training opportunities to staff as needed and available. &% Wk ww Personnel System Comments: The city has workmen's compensation coverage until June 30, 2010 that is posted in the city office. They are waiting for Permanent Fund Dividend payments for past due accounts to pay the entire insurance bill next month. Again the city has not had any turnover in personnel so all personnel folders are still current with written job descriptions. The city still utilizes the approved Alaska Municipal League policies that provides a written evaluation process, including probationary period. ARUC has done some operator training and will do cross-training of operators so they can do water, sewer and outside plumbing work if needed. October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes No QR The entity that owns the utility is known and the entity that will operate the utility is set. ® The policy making body is active in policy making of the utility. X The policy making body enforces utility policy. Wx The utility has an adequately trained manager. QR The utility has an adequately trained bookkeeper. X The utility has an adequately trained operator(s). Xi The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city has the necessary ordinances to give it authority and is the known entity to operate the utility. They have an adopted organizational chart that reflects the current structure and meets as required following the open meetings act. The Alaska Rural Utility Collaborative is active in making sure the council follows and enforces their utility policy. They are the policy making body but did not enforce their policy to disconnect customers delinquent since January 2009 to April 2009 in an effort to save their entire system from freezing. The city administrator has held the position for approximately five years. The bookkeeper and certified operator are also long term employees. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & 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. XX The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XX XwRORR X Operation of Utility Comments: The utility has a preventative maintenance plan in place but is not following it or using it to do the maintenance needed before winter. This may have been the cause for the problems the city faced last winter. The operator is certified for wastewater treatment OIT, collection OIT, water distribution 1, water treatment 2 until 2011. ARUC is working on cross training three other operators to be able to assist the city as needed. The system still is on the SNC list because it needs new hardware to resolve the violations. This will require installation of a new recorder that records higher values. A new water treatment plant is in the early stages of design but insufficient funding has stopped progress for now. - 106 - October — November — December 2009 2" Quarter FY10 - RUBA Report Inadequate operator attention combined with lack of automation and inadequate treatment capacity have resulted in the majority of the treated water quality problems. RUBA Activities For The Coming Quarter RUBA has been in contact with ARUC and has received the necessary documentation to show that Selawik is now meeting all essential indicators. - 107 - October — November — December 2009 2" Quarter FY10 - RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council ad The tribal council operates the washeteria, water treatment plant, container haul system, and electrical services for the community. The tribal council is the policy making body for the utility services. Only one watering point, with storage capacity of 12,000 gallons, serves the entire community, washeteria, clinic, and the school. Residents haul honey-buckets to 21 bins located sparingly throughout the community. A feasibility study was completed to implement a piped water and sewer system in the future. A larger water storage tank, completion of a new lagoon, and water system improvements are the community's priorities. RUBA Activity This Quarter During this quarter Mr. Lamont, Tribal Administrator contacted the Bethel office to discuss fuel delivery issues. Low water prevented fuel delivery and the community, school and village corporation worked together to fund the dredging of the mouth of the river to Tuluksak. There are some issues related to the dredging that are being finalized. In November, the administrator called to discuss the financial reports that were recently submitted. RUBA stated that we still require copies of the manager's report or copies of minutes from the last council meeting. We discussed briefly the accounts payable procedures and suggested that the staff be reminded of the process. There was some concern that some expenditures were not properly processed. The Bethel office has since been receiving monthly financial reports and other documentation as requested to update RUBA. - 109 - October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xx All revenue and expenses for the utility are listed in the utility budget. ® The utility has adopted a balanced realistic budget. & 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. & 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. MXR Finances Comments: Tuluksak Native Community (TNC) completed a balanced 2009 budget. Finance reports are up to date to November 2009. Tuluksak contracts with a Certified Public Account for accounting practices. The manager gives oral reports to the TNC. RUBA recommended a written manager's monthly report be provided and one was received indicating that budgets were reviewed by the council and president and were signed off. Receipt of the FY10 is still pending. Prepaid cards had to be replaced to ensure prepayment of utilities. A new utility manager was hired last January but was called into active military duty. An assistant utility manager was hired until the utility manager returns in early 2010. Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. & An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators xX A chart of accounts is used that identifies categories in a reasonable, usable manner. ® 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. -110- October — November — December 2009 2" Quarter FY10 - RUBA Report Accounting Comments: A billing system is set up with individual household accounts. The utility had sent out a letter in the previous quarter advising the consumers that if they did not pay their bill, money would be taken from the electric pre-paid power stat cards. All accounting and billing is done with QuickBooks Pro. Their payroll tax calculations are done through QuickBooks Pro. When making purchase orders, the purchase order is filled out, the bookkeeper checks it against the budget, and then it is submitted to the administrator for approval. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX The utility is current on filing tax reports. KK] The utility is current on making tax deposits. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The TNC was sent a fax request for release of information. Verification is pending. Indicators will be changed to reflect the current status upon receipt of request. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. XX] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. i} The utility provides training opportunities to staff as needed and available. KK Xx Personnel System Comments: Tuluksak has workers compensation insurance coverage through Umialik Insurance Co. effective to May 2010. The tribe provided a copy of the personnel policy and procedures manual with job descriptions. Tribal members that are residents are considered for first employment preference. There is a formal written hiring process and a 90 day probationary period. There were no personnel folders to view. The utility provides training to its employees when funds are available. -111- October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes XRRXXXR 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 x] XX] X The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: There are now two sets of utility ordinances. One is adopted for the sewer haul system. The second is a two part ordinance in anticipation of a piped water and sewer system and was signed by the council on December 31, 2007. The first part of the ordinance establishes a utility board and the second part is for the utility procedures. An ordinance authorizing the implementation of a sewage haul collection fee was adopted on June 20, 2006. The tribal administrator worked with a federal grant program before taking on the position in January of 2008. The bookkeeper is proficient in QuickBooks. The city has three operators with certifications for water treatment Operator in Training (OIT) and water distribution OIT. The lead operator also has boiler maintenance training. October — November — December 2009 2" Quarter FY10 - RUBA Report Operation of Utility Essential Indicators Yes & No The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X XRX ww w w & The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility is on the Significant Non-Complier list. The violations were discussed at the special meeting to the council by Village Safe Water (VSW). The utility will need to complete monthly testing for twelve months to be removed from the SNC list. A copy of the preventive maintenance plan was provided. Verbal accounts of the operation are given to the manager on a day-to-day basis. If an emergency arises, the administrator is contacted immediately. A copy of the CCR was completed in June of 2008. The water operator does not have an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will assist the city with deficient indicators at their request. Tasks that would satisfy indicators include: personnel files need to be developed with I-9, job application and letter of acceptance for every employee, make sure all water testing requirements are met each and every month, develop an inventory list, develop a critical spare parts list, sign up alternate operator for training, get advanced QuickBooks Pro training for administrative and finance staff. - 113 - October — November — December 2009 a Quarter FY10 - RUBA Report White Mountain Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2008 Population: 215 Region: Bering Straits Q Local Governments: 2"™ Class City a « Water is derived from a well near the Fish River and is Mcrae, Om treated. All households and facilities are connected to the piped water and sewer system. The school was completely destroyed in a fire and the new school is under construction and will also be connected to the cities water sewer system. The city has also requested funding to relocate the landfill, the current site is not permitted. RUBA Activity This Quarter At the request of the White Mountain City Council, Nome RUBA staff traveled to the city on October 29-30, 2009. The purpose of the trip was to perform a RUBA management assessment and meet the new utility clerk to determine training needs. In addition, RUBA met with the city clerk to review the city's code of ordinances. The management assessment revealed that the utility is not enforcing the collection policy. RUBA advised that the council will need to consider writing off the oldest past debt. The clerk stated that the city has previously attempted to collect using small claims court and collection agencies with no positive results. RUBA will work with the new utility clerk to devise positive collection methods and monitor the efforts. There are additional deficient essential indicators and RUBA will work with the utility clerk to improve those. Sanitation construction funds will not be released until all essential indicators are met. -115- October — November — December 2009 2" Quarter FY10 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. XX) The utility has adopted a balanced realistic budget. x} Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X YTD revenues are at a level equal to or above those budgeted. ® YTD expenditures are at a level equal to or below those budgeted. &X A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The White Mountain Utilities budgeted slightly over $92,000 for revenues and about the same for expenditures for Fiscal Year 2010. The water and sewer department's collection is slightly over 90% for the fiscal year, which sufficiently covers the expenses. The new utilities clerk, Esther Lincoln, is making efforts to collect the past due water and sewer accounts. Most of the past dues are several years old and some may have to be written off as some former utility customers have moved out of the community. The utility clerk makes very comprehensive monthly financial reports, with detailed explanations of issues and how they are dealt with. An Excel spreadsheet format is used for the monthly finance report. The utility used about $30,000 of the Norton Sound Economic Development Corporation's Community Benefit Share funds to purchase diesel fuel for the winter. Accounting Systems Essential Indicators Yes No XX] 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. tainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXReX kw D e @ Xww -116- October — November — December 2009 2" Quarter FY10 - RUBA Report Accounting System Comments: The new utility clerk stated and showed RUBA staff that the utility has large accounts receivables, mainly from past due residential water and sewer customers. About 85% of the past due accounts are over seven years old and may have to be purged from the list. Although the water and sewer utility has a comprehensive water and sewer utility ordinance, it has not followed the requirements to demand collection from past due customers as required by the utility ordinance. The new utility clerk is experienced and familiar with QuickBooks Pro. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. QR The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility keeps separate Federal Employer Identification Number (FEIN) and state ESC reports and payments from the city. The utility was behind with tax liabilities payments and reports but is now all caught up. The Employment Security Contribution employer rate for this year (2009) is 1.46%. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. XX] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. Xi 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. xX ww Personnel System Comments: The utility has insurance and workers' compensation coverage with the Alaska Municipal League Joint Insurance Association (AMLJIA). The city uses funds received from Norton Sound Economic Development Corporation (NSEDC) to pay for most or part of the insurance premium, including workers' compensation. The utility needs to review and update its personnel files the utility uses the city's personnel policies. The city council hired the acting utility clerk as she has extensive financial and office management experience. -117- October — November — December 2009 2" Quarter FY10 - RUBA Report Organizational Management Essential Indicators Yes No x The entity that owns the utility is known and the entity that will operate the utility is set. I The policy making body is active in policy making of the utility. XX] The policy making body enforces utility policy. x The utility has an adequately trained manager. ® The utility has an adequately trained bookkeeper. XX] The utility has an adequately trained operator(s). QR The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators QR The utility has adopted an organizational chart that reflects the current structure. | The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. Organizational Management Comments: The policy making body is not enforcing the collections policy. The current water and wastewater utility ordinance meets the needs of the water and wastewater utility, however it needs to be reviewed and updated. The main operator and his alternate need to be certified to Level 1 and are working with the regional Remote Maintenance Worker to obtain Level 1. Operation of Utility Essential Indicators Yes No 4) The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XMNkKKX Ww Operation of Utility Comments: The City of White Mountain, utilities department, completed and submitted its Consumer Confidence Report (CCR) on October 1, 2009. The utility is not on the Significant Non-Complier (SNC) list. The main operator and his alternate need to be certified to Level 1 and are working with the regional RMW to obtain Level 1 Certification. Currently, the utility is not holding safety meetings with and for its employees. - 118 - October — November — December 2009 2"! Quarter FY10 - RUBA Report RUBA Activities For The Coming Quarter Nome RUBA staff will work with the new utility clerk to make collection efforts on the past due accounts. The new utility clerk does keep track of the past due accounts using QBP. RUBA staff will work with the city council and utility clerk to revise the water and sewer utility ordinance. RUBA staff will make at least one on-site visit to the community to work with the city council and utility clerk to assist the utility meet the essential indicators identified in this report, including setting collection strategies on the past due receivables. -119- October — November — December 2009 2" Quarter FY10 - RUBA Report Non-RUBA Communities Adak Julie Dirks, LGS/RUBA, Anchorage Office The city administrator has provided a certified FY08 financial statement, FY08 budget vs. actual report, FY10 approved operating budget, aged accounts receivable report as of August 13, 2008, 2008 Community Confidence Report, proof of workers compensation coverage, authorization to request tax information, and IRS 941 and ESC reports. The city clerk attended utility clerk training in Anchorage November 2-6, 2009. The city council has requested city council member training during January or February 2010. The city clerk has also requested assistance with setting up QuickBooks to track utility transactions and budgets. A QuickBooks course is planned in Anchorage in the Spring of 2010 anda seat will be reserved for Adak staff to attend. Information regarding the QuickBooks contractor hotline was also provided to Adak to avail themselves of technical support. Akhiok Tammy Helms, LGS/RUBA, Anchorage Office On October 1, 2009 RUBA staff traveled to Akhiok to participate in a joint meeting with the City of Akhiok, Alaska Native Tribal Health Consortium (ANTHC) and Village Safe Water (VSW). The Akhiok water plant is dilapidated and it has become a priority with ANTHC and VSW to secure funding to build a new plant. If Akhiok can meet all of the RUBA management essential indicators, the community has a good probability of securing funding for a new water treatment plant. The group discussed the unmet indicators and what could be done to achieve each one. City Council Member and Water Operator Dan McCoy had many positive and proactive ideas to solve issues and involve the community. All members at the meeting were pleased with the ideas discussed and offered to support the community in their efforts to become sustainable. RUBA staff will be working directly with Mr. McCoy to find a manual financial system that can effectively account for all city income and expenses as well as track customer billings and collections. Akiachak Susan Charles, LGS/RUBA, Bethel Regional Office During this quarter the Akiachak IRA was contacted regarding RUBA requirements. They were also contacted regarding their bulk fuel order. They reported that a bulk fuel loan application is pending. The tribal staff were contacted regarding Internal Revenue Service (IRS) and Department of Labor ESC deposits that were not filed. Tribal staff state that they have been making efforts to come into RUBA compliance. Verification is still pending. -121- October — November — December 2009 2" Quarter FY10 - RUBA Report Aleknagik Barbara Higgins, LGS/RUBA, Dillingham Regional Office Dillingham Regional staff traveled to Aleknagik on November 24, 2009 to provide onsite assistance to city staff at their request. The city administrator has submitted his resignation and RUBA staff was requested to provide support and training to the staff and council as preparations are made for his departure. RUBA met first with the administrator and city clerk to hear questions, requests, and the status of the calendar-year budget, audit, monthly financial reports and personnel issues. City staff continues working to resolve deficient RUBA assessment management indicators as the city plans to seek sanitation funding. The city is presently reviewing sanitation system design options with the Alaska Native Tribal Health Consortium (ANTHC). The city council recently certified their municipal election and elected Mayor Berna Andrews. At the meeting, council members requested ongoing assistance from DCRA on topics including budgeting, monthly financial reporting, sanitation planning, and planning in general. RUBA sponsored QuickBooks accounting training in Dillingham during the quarter which the city clerk and administrator successfully attended and completed. RUBA also provided assistance with personnel issues, financial reports, code of ethics, elections, land and planning questions, and Department of Transportation STIP project status. Allakaket Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Allakaket on November 4-6, 2009. The Allakaket Mayor had invited RUBA to attend a community meeting and address management issues. The city has not held an election in three years and lost out on a years worth of revenue sharing ($91,415). An additional $258,480 revenue sharing is still available if certain criteria are met. RUBA explained the process to access these funds. The community meeting was attended by approximately 25 people who asked questions and provided suggestions on how to reorganize city government. RUBA met with five city council members the following day. Discussion included how to appoint councilmembers, conduct elections, duties of a city clerk, and time sensitive tasks. Community members also contacted RUBA to voice concerns with the clinic. The clinic water line has not been repaired and the water tank cannot be filled. Completing the necessary forms to access the community revenue sharing funds would provide cash to repair the clinic water line and improve other community services. RUBA offered to return to the community to provide training to new council members and to help prepare for the regular election scheduled in March 2010. October — November — December 2009 2" Quarter FY10 - RUBA Report Anaktuvuk Pass Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Anaktuvuk Pass on December 3-4, 2009 at the city's request to provide training for a new city clerk/treasurer. Training was initiated by familiarizing the clerk with the State of Alaska's RUBA website with additional attention paid to the Local Government On-Line (LOGON), publications, and grants sites. The clerk wanted training on how to write and adopt ordinances and resolutions so we took time to read the web pages in LOGON devoted to the topic. We also briefly reviewed the Alaska Association of Municipal Clerk's Manual. The city wanted to change an existing ordinance. The ordinance was researched to see how the change would affect the code and a new ordinance was drafted. The city also wanted to pass a resolution, so wording for it was brainstormed and then drafted for introduction at the next meeting. The following day, staff reviewed past election files and discussed the election process, how council members are appointed to fill vacancies between elections, and how a council member is excused from missing a meeting. Files and manuals in the office were identified for the clerk to read; a disadvantage of starting cold in a position is that one does not know where to focus their learning. RUBA offered to maintain contact by fax or email and review draft meeting minutes, ordinances, resolutions, and meeting agendas. This will allow for ongoing training on subjects that are relevant to the city and her position. The bookkeeper and RUBA staff are also going to research, at the request of the vice mayor, the city's ability to invest money in the Alaska Municipal League Investment Pool. Deering Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Deering in October to provide onsite training and assistance for two days. The acting city clerk has not previously held an election. RUBA assisted with developing a timeline schedule based on the local election ordinance, created necessary election forms, tally sheets, and contacted election judges. Unfortunately it is unknown why, but follow-up contact with the community revealed no election was held and a special election needs to be scheduled. Sanitation grant funds will not be released until all essential management indicators are met including the two concerning the entity that owns the utility is known and the policy making body is active. Without an election neither of these two can be verified. Since the acting city clerk did not follow through with their regular election in November, I spent a lot of time assisting the Mayor and acting administrator to set the new date for a special election including writing a letter to the Attorney General's office. The new date they have set is for February 2nd, 2010. RUBA staff has been coordinating with the borough on assistance needed for Deering who requested yearend tax reporting training and assistance as well as final election preparation assistance. RUBA was also able to help complete the Federal Economic Stimulus grant request and posted the new employers insurance coverage notice. Galena Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled with the QuickBooks contractor December 14-17, 2009 to Galena on the first of three onsite visits to install and train city staff with the QuickBooks accounting program. While the QuickBooks contractor was training the bookkeeper, RUBA staff and the Galena city clerk worked on various projects. The Alaska Public Offices Commission (APOC) second and third quarter lobbying reports had not been filed. With RUBA assistance, the overdue reports were filed and halted the penalties from accruing beyond the $1,580. RUBA also assisted in filing for a 100% reduction in fines, according to the Civil Penalty Appeal Mitigation Criteria. In addition, six grant reports, from various State of Alaska departments were brought current after a six month period of no reporting. RUBA spent the remainder of the visit with the QuickBooks contractor installing the accounting software and setting up the utility business data base for accounting, billing, collections, and payroll. Two additional onsite visits will be made by the contractor to provide additional training. - 123 - October — November — December 2009 2" Quarter FY10 - RUBA Report Gustavus Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff traveled to Gustavus on October 22, 2009 to provide an overview of the findings found in the latest RUBA management assessment and to conduct newly elected officials training. Training included topics such as: council member roles and responsibilities, open meetings act and conflict of interest. At the meeting, the council received the newly formatted monthly financial report which satisfies the criteria for the RUBA assessment essential indicator. The city council now receives, at a minimum, a balance summary sheet and a budget vs. actual profit and loss statement on a monthly basis. By taking this action, the city now meets the management criteria for all essential indicators and the city council will be able to make informed decisions based on accurate and timely financial information. Kiana Margaret Hansen, LGS/RUBA, Kotzebue Regional Office The City of Kiana has dissolved the memorandum of agreement with the local tribal entity and resumed management of utility services. The newly hired administrator contacted Kotzebue RUBA staff and requested training. The administrator has prior management experience, however it does not include local government. The Mayor also contacted RUBA requesting QuickBooks training. RUBA connected the Mayor with Maniilaq who has hired a contractor to provide QuickBooks training in Kotzebue November 16-18, 2009. Maniilaq covers the cost of the class but participants are responsible for their own travel, hotel, and per diem. RUBA staff also provided assistance with election questions and processes this quarter. Koyukuk Brendan Smyth, LGS/RUBA, Fairbanks Regional Office RUBA staff conducted an on-site visit to the community in November. The purpose of the visit was to go over personnel issues and finance questions that were questioned by management. RUBA staff assisted the city administrator in setting up a budget to present to the city council. RUBA staff also helped conduct a work session with the city council and city administrator. The council and administrator responded well and communications later in the quarter have indicated the meeting and other things has helped. Koyukuk administration has requested an additional visit to assist with QuickBooks accounting issues. -124- October — November — December 2009 2" Quarter FY10 - RUBA Report Nikolai Tammy Helms, LGS/RUBA, Anchorage Office On October 6, 2009, RUBA staff traveled to the City of Nikolai to prepare management for an assessment and to provide on-site assistance with the municipal election. This was the city's second election for the year. The first election was held on March 31, 2009 and was a special election to establish a council after over five years of inactivity. In September 2009, two of those council members resigned due to relocation. Due to the inexperience of the council in handling elections, the council requested RUBA assistance with the current election to replace the two open seats. The city had received only one declaration of candidacy although there were two open seats (seats F and G) therefore; the second seat would be open to write-ins. The outcome of the election showed a tie for seat F and seat G was won by write-ins. Ironically, the individual that won the write-in seat G was the same person who tied for seat F. The council will ask the individuals intentions for the seats at a meeting on Friday and proceed from there. While in Nikolai, the school administration had requested that RUBA staff address the students concerning the election and election procedures. RUBA staff spoke to the students about what a municipality was and about municipal elections. The Code of Ordinances and the election ordinance were discussed in relation to what tasks are completed prior to an election such as posting for an election, preparing ballots, and election judges as well as the tasks after elections, such as counting the ballots and certifying the elections. The group discussed how an individual files for a seat and the importance of voting. Other items of discussion were the roles and responsibilities of council members, ethics and the oath of office. This provided an excellent opportunity to discuss the election as well as council members' roles and responsibilities to the students. RUBA staff spoke with the teachers about future presentations on sanitation management and local government by RUBA staff while in the community for on-site visits. The teachers expressed great interest in this opportunity as the students are the future voters and council members of the community. Old Harbor Tammy Helms, LGS/RUBA, Anchorage Office On October 26-28, 2009, RUBA staff and the RUBA QuickBooks contractor traveled to Old Harbor to conduct an onsite visit and install QuickBooks computer accounting for city use. During the visit, RUBA staff and the vice-mayor reviewed the ordinance book for preparation of codification and the personnel policy that was prepared by RUBA for future adoption by the council. RUBA staff then assisted the QuickBooks contractor with creating the chart of accounts, class setup, and the entry of customer balances, memorized transactions, payroll data and customer payments. RUBA staff also discussed the budget and the importance of entering the budget in QuickBooks with the treasurer. Two follow-up trips will be conducted to provide further training and a customized manual for city staff use. On December 1, 2009 RUBA staff and the state QuickBooks contractor traveled to Old Harbor to conduct the second installation and training on-site visit of the QuickBooks accounting software. Initially, the administrator and mayor were against combining the general and fuel QuickBooks companies into one company file even though they shared the same tax identification number. However, after meeting with them it became clear there was a misunderstanding of how the accounting system would function with the companies combined. They stated they were against combining the general and fuel QuickBooks companies because they were under the impression it meant all city income would be deposited into the general account and they would have to close out their fuel Replacement/Reserve and savings accounts. Once they understood that would not have to happen they could see the benefits of combining the QuickBooks companies and gave permission for the files to be combined. The contractor and RUBA staff will continue to work with the city to ensure the QuickBooks file is created for the best practices of the community and the treasurer is trained and understands the new QuickBooks system. October — November — December 2009 2" Quarter FY10 - RUBA Report Pilot Point Barbara Higgins, LGS/RUBA, Dillingham Regional Office Dillingham RUBA staff traveled to Pilot Point October 12, 2009. The purpose of the trip was to attend a city council meeting and discuss the status of the RUBA management assessment. The city is experiencing loss of the long term administrator/clerk and in the process of training a new clerk plus advertising for an administrator. The new clerk/acting administrator is very professional and organized in her approach to the position. She received assistance with elections preparations as this would be her first experience with that process. She is also not proficient with the local accounting software and the city has contracted that chore out until training is available. RUBA has a QuickBooks Pro class scheduled in Dillingham for December, however, the new clerk has declined that opportunity. The mayor and city council have requested onsite training regarding roles and responsibilities including budget oversite. The City of Pilot Point successfully conducted and certified the city elections in November with RUBA assistance. RUBA staff also provided assistance with budget amendments, resolutions and ordinances, tax liabilities, minutes, RUBA assessment essential indicators, grant questions and stimulus money funding opportunities. A new city manager is to take office in January 2010. RUBA staff provided the Fall Sea Storm Document for community emergency preparedness. Port Lions Tammy Helms, LGS/RUBA, Anchorage Office On November 16-18, 2009, RUBA staff traveled to the City of Port Lions to assist the city clerk in completing the FY09 Certified Financial Statement and finish reconciling the bank account. During the on-site visit, the mayor took the time to meet with both RUBA staff and the clerk. It was a wonderful opportunity to address the mayor's concerns and questions concerning the city's finances. Prior to this meeting, the council had planned on conducting an outside audit. RUBA staff recommended they not conduct an audit at this time for two reasons. The first reason being RUBA staff has had the opportunity to be very hands on with the city's QuickBooks files over the past few years and felt confident that the accounting procedures are being conducted correctly. Secondly, the city will be administering a large grant in the near future that will require an audit, therefore it was recommended they save the funds until an audit is required. The mayor agreed and said he would speak to the rest of the council. Another event worth noting is that the clerk is attempting to contact the tribal council, advisory school board and high school students to organize enough people to hold an on-site Elected Officials Training. This would be an excellent example of local entities working together for the benefit of the community. Shishmaref Leroy Seppilu, LGS/RUBA, Nome Regional Office At the request of the Shishmaref City Council, Nome RUBA staff traveled to Shishmaref on December 3-4, 2009 to review city finances. RUBA met with the city council to discuss on-going financial issues, utility collections, and sales tax collections. A council member suggested waiving penalties and interest if a payment plan with the city is signed or the amount past due is paid upon demand. RUBA recommended that the city enforce local collections ordinances and stated that with council consensus those ordinances may be changed. If the collection strategy does not work, the city may pursue small claims court assistance. Even though the community of Shishmaref is not in the Bering Sea/Norton Sound region, Norton Sound Economic Development Corporation provides limited financial assistance as it does to the member communities in the region. This has enabled the city to purchase fuel oil and insurance coverage with minimal costs to the city. - 126- October — November — December 2009 2" Quarter FY10 - RUBA Report Teller Leroy Seppilu, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to Teller two times during this quarter. On the first trip, RUBA staff went there to monitor the municipal election to make sure that all went well. The city council acts as the utility board. There were six vacant council seats this year. The election went well despite the vacant city clerk position. RUBA staff assisted by advising the election judges and the city council with election procedures. In the end, the new city council was sworn in and new officers selected, including a new mayor. On the second trip, RUBA staff traveled to the community to meet with the new city staff and mayor. The new city council has hired a new city clerk and two office aides. The main purpose of the trip was to meet the new city clerk/treasurer and find out how much training she may need. One of the office aides is an expert Internet technician. Two new washers have been installed and two dryers repaired at the washeteria. QuickBooks Pro accounting software program is in the process of being installed and implemented. Both the new city clerk and office administrator are at intermediate/advanced level experience with QuickBooks Pro. The software program will be used to keep track of the city's finances, including trash/honey bucket haul customer bills. Togiak Barbara Higgins, LGS/RUBA, Dillingham Regional Office Dillingham RUBA staff made a visit to the community on December 1, 2009 to provide assistance with the election transition and provide training to new council members who also act as the utility board. The prior acting Mayor Jim Forbes was re-seated as mayor for another year. A new city clerk/treasurer has taken office. RUBA sponsored QuickBooks training in Dillingham and the utility clerk and city clerk/treasurer both successfully attended and completed the four day class. RUBA staff offered assistance and advice regarding tax liabilities, resolutions and ordinances, elections, stimulus money questions, Open Meetings Act, segregation of duties and parliamentary procedures. The clerk was provided a copy of the Fall Sea Storm Document to assist with preparedness of the city. -127-